Commercial Investment in Cape Coral, FL
Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes
Commercial Investment in Cape Coral, FL
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Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes
3yOn the surface by looking at google maps this is a tough place to do retail. There is no street parking and limited building parking. The tenant is reliant on foot traffic. Is this a seasonal town? In other words is it a multigenerational community or are you reliant on retirees that come visit only for the winter. (aka as a resort town). An outsider would have to study the demographics on this. Maybe the celebrity that is buying the "spot" can step in and take the the building for additional parking? Since you're the local expert I would pitch this to your local government and other types of business owners in the area that might have a different vision for the building.
17 Replies
- 3yDoug SmithPro MemberLender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
I know. I'm up in Tampa and it's sad how people have pillaged that area...first in 2004-2005 when the hurricanes hit down there then and then now after Ian. We're getting a lot of loan inquiries about property in that entire area from investors. I actually owned a 30K foot retail center in Port Charlotte after the last crash. I love the area and really, really hope you guys recover stronger than ever.
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @Jana Gage:
That's a high asking price for just 6k of gross income. Is that NNN?
I'm not sure. I'm not the listing agent. I do know that they are renovating the inside to be whatever the buyer wants. and they just finished renovating the insurance company side. It looks really nice. Plus its prime real estate.
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @John M.:
Why is the Spot temporarily closed? Do you have any idea what the walk score is or the traffic counts? How is the parking along the main drag?
This area is heavily car-dependent. I do know the city is looking to add a parking garage and a pedestrian bridge across the parkway to help with walkability/parking. Right now, there's only two restaurants on that side of the parkway that are worth going to (Nice Guys Pizza and Yellowfin Sushi Bar) and they're right next door to this commercial building. Then you go one street back (Lafayette) and you have Junglebird and Monkey Bar that are very popular. So if done right, adding more restaurants or something other than an office/smokeshop/pawnshop, etc. the area would start to get more foot traffic.
The Spot is closing bc he doesn't want to run restaurants anymore. It is currently being bought up by a celebrity (not sure I can name him so I won't) looking to put in a tequila bar/speakeasy. So it would be right next to that.
Traffic is heavy on this road as its our main road out of Cape Coral. It connects us to Ft. Myers.Feel free to message me if you have anymore questions. I'm dying to get this bought up. As far as I know, there is room for negotiating on the price.
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @Doug Smith:
I know. I'm up in Tampa and it's sad how people have pillaged that area...first in 2004-2005 when the hurricanes hit down there then and then now after Ian. We're getting a lot of loan inquiries about property in that entire area from investors. I actually owned a 30K foot retail center in Port Charlotte after the last crash. I love the area and really, really hope you guys recover stronger than ever.
I agree. I'm determined to keep this city growing in the right direction. It's beautiful and theres no reason for it to be anything other than that.
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes3y
You are buying the land and location and not really the building and the tenants. It's not what it is but what it could be. Sometimes I buy buildings and knock them down. The listing broker is worried that property is trashed and do I still want it. I am really buying the dirt to redevelop so could care less about the building.
Some states and areas are putting moratoriums on smoke shops and marijuana dispensaries until they can decide how much and where they want those types of businesses in an area.
Alot of the tenant types you mentioned are WEAK and never hardly last the term of the lease. CONSUMERS think of brands as to what would be COOL in an area they live and or work in. LANDLORDS are thinking of cash flow and stability of the tenant for current value and future exit values. Of course landlords would like to put in nice tenants that the communities long for but the lease and strength of tenant still has to work. Often times these mom and pop brands leverage their house to get the business going and have a 6 month shelf life versus the larger franchisees and big corporate brands that have been in business for decades and cycles and know how to keep making profit and stay open.
The only time I consider a clothing shop is if a personal guarantee and the people are already rich and just want something to do. Example somebody wants to open a clothing shop and has 100k net worth and if not successful in 6 months will burn through cash that's a no from me. If someone retired and worth 4 million and wants something to do and if shop makes money great but if not a tax write off then could work. I do not want tenants to go dark UNLESS they were inherited and rent very low to market then after tenant improvements, leasing commissions, attorney fees, etc. I still make good money.
Zoning can also be a problem. Example in Austin Texas you move a tree branch and can get a violation monetary penalty and they want big set backs from road for sidewalks etc. It makes visibility and access much harder for street front buildings. The benefit though is that developing is much harder so helps values and insulates against oversaturation with competition.
On the other spectrum some parts of Texas have no zoning so on a mains street you will see a developer that made a super nice development and buildings and then right beside it someone put up the ugliest and cheapest looking building possible. That hurts the feel of the area, the values, etc.
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @Joel Owens:
You are buying the land and location and not really the building and the tenants. It's not what it is but what it could be. Sometimes I buy buildings and knock them down. The listing broker is worried that property is trashed and do I still want it. I am really buying the dirt to redevelop so could care less about the building.
Some states and areas are putting moratoriums on smoke shops and marijuana dispensaries until they can decide how much and where they want those types of businesses in an area.
Alot of the tenant types you mentioned are WEAK and never hardly last the term of the lease. CONSUMERS think of brands as to what would be COOL in an area they live and or work in. LANDLORDS are thinking of cash flow and stability of the tenant for current value and future exit values. Of course landlords would like to put in nice tenants that the communities long for but the lease and strength of tenant still has to work. Often times these mom and pop brands leverage their house to get the business going and have a 6 month shelf life versus the larger franchisees and big corporate brands that have been in business for decades and cycles and know how to keep making profit and stay open.
The only time I consider a clothing shop is if a personal guarantee and the people are already rich and just want something to do. Example somebody wants to open a clothing shop and has 100k net worth and if not successful in 6 months will burn through cash that's a no from me. If someone retired and worth 4 million and wants something to do and if shop makes money great but if not a tax write off then could work. I do not want tenants to go dark UNLESS they were inherited and rent very low to market then after tenant improvements, leasing commissions, attorney fees, etc. I still make good money.
Zoning can also be a problem. Example in Austin Texas you move a tree branch and can get a violation monetary penalty and they want big set backs from road for sidewalks etc. It makes visibility and access much harder for street front buildings. The benefit though is that developing is much harder so helps values and insulates against oversaturation with competition.
On the other spectrum some parts of Texas have no zoning so on a mains street you will see a developer that made a super nice development and buildings and then right beside it someone put up the ugliest and cheapest looking building possible. That hurts the feel of the area, the values, etc.
You get it. Thank you for this comment! Now can you please buy this building hahaha teasing but that's exactly it. There are two huge developments coming to downtown Cape Coral that are going to attract so many people to the area. The potential is there.
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @Joel Owens:
You are buying the land and location and not really the building and the tenants. It's not what it is but what it could be. Sometimes I buy buildings and knock them down. The listing broker is worried that property is trashed and do I still want it. I am really buying the dirt to redevelop so could care less about the building.
Some states and areas are putting moratoriums on smoke shops and marijuana dispensaries until they can decide how much and where they want those types of businesses in an area.
Alot of the tenant types you mentioned are WEAK and never hardly last the term of the lease. CONSUMERS think of brands as to what would be COOL in an area they live and or work in. LANDLORDS are thinking of cash flow and stability of the tenant for current value and future exit values. Of course landlords would like to put in nice tenants that the communities long for but the lease and strength of tenant still has to work. Often times these mom and pop brands leverage their house to get the business going and have a 6 month shelf life versus the larger franchisees and big corporate brands that have been in business for decades and cycles and know how to keep making profit and stay open.
The only time I consider a clothing shop is if a personal guarantee and the people are already rich and just want something to do. Example somebody wants to open a clothing shop and has 100k net worth and if not successful in 6 months will burn through cash that's a no from me. If someone retired and worth 4 million and wants something to do and if shop makes money great but if not a tax write off then could work. I do not want tenants to go dark UNLESS they were inherited and rent very low to market then after tenant improvements, leasing commissions, attorney fees, etc. I still make good money.
Zoning can also be a problem. Example in Austin Texas you move a tree branch and can get a violation monetary penalty and they want big set backs from road for sidewalks etc. It makes visibility and access much harder for street front buildings. The benefit though is that developing is much harder so helps values and insulates against oversaturation with competition.
On the other spectrum some parts of Texas have no zoning so on a mains street you will see a developer that made a super nice development and buildings and then right beside it someone put up the ugliest and cheapest looking building possible. That hurts the feel of the area, the values, etc.
and to be clear, I understand that those might be "weaker" concepts. I get it! But the city has so few that the potential to work is there. My partner and I opened a restaurant at the height of covid and it's thriving. 60% of restaurants close within the first year. So by that logic we should not have opened one. We're working on our second location already. The point is that Cape Coral has a need for these types of places. I'm in the community. The people talk and there's a ton that agree and wish for these places. If done right, anything can be successful. You just have to execute properly.
- Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 801 votes3y
On the surface by looking at google maps this is a tough place to do retail. There is no street parking and limited building parking. The tenant is reliant on foot traffic. Is this a seasonal town? In other words is it a multigenerational community or are you reliant on retirees that come visit only for the winter. (aka as a resort town). An outsider would have to study the demographics on this. Maybe the celebrity that is buying the "spot" can step in and take the the building for additional parking? Since you're the local expert I would pitch this to your local government and other types of business owners in the area that might have a different vision for the building.
- Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes3y
I'm with you Kirstin, it would be nice to clean up Cape Coral Parkway. Don't forget the Guns and Ammo store too; not the first thing most visitors want to see once they cross the bridge.
I didn't see the property you referred to listed on Loopnet or the MLS. I have a buyer who's looking for a 2-unit office building in that price range. Can you send me the details?
Thanks!
- Realtor · Member since 2023 · 177 posts · 41 votes3y
Quote from @Kirstin Moll:
Quote from @Doug Smith:
I know. I'm up in Tampa and it's sad how people have pillaged that area...first in 2004-2005 when the hurricanes hit down there then and then now after Ian. We're getting a lot of loan inquiries about property in that entire area from investors. I actually owned a 30K foot retail center in Port Charlotte after the last crash. I love the area and really, really hope you guys recover stronger than ever.
I agree. I'm determined to keep this city growing in the right direction. It's beautiful and theres no reason for it to be anything other than that.
Lots of work needs to be done in Cape Coral to make it that way, but the beauty is that the potential is really there.
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @Peter Davis:
I'm with you Kirstin, it would be nice to clean up Cape Coral Parkway. Don't forget the Guns and Ammo store too; not the first thing most visitors want to see once they cross the bridge.
I didn't see the property you referred to listed on Loopnet or the MLS. I have a buyer who's looking for a 2-unit office building in that price range. Can you send me the details?
Thanks!
Yes! It's off market right now! Let me message you the info!
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
Quote from @John M.:
On the surface by looking at google maps this is a tough place to do retail. There is no street parking and limited building parking. The tenant is reliant on foot traffic. Is this a seasonal town? In other words is it a multigenerational community or are you reliant on retirees that come visit only for the winter. (aka as a resort town). An outsider would have to study the demographics on this. Maybe the celebrity that is buying the "spot" can step in and take the the building for additional parking? Since you're the local expert I would pitch this to your local government and other types of business owners in the area that might have a different vision for the building.
Really good idea. Thank you!
- 3yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Whats the address?
- Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes3y
- 3yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Its on loopnet now. Price is steep, parking is tough, insurance, law office or cpa is really the best use.
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