The owner of 14,000 sq ft commercial structure asked me to make him an offer.
the owner didnt want to buy the building but it was part of a business buyout and now after 5 years of high property taxes, high utilities and mounting maintenance expenses the owner wants to walk away.
The building appraised for $180,000 and it is assessed at $152,200 however I believe both of those numbers are high considering the condition of the property. The property does not have any tenants at this time and the owner is not sharing financials.
How low is too low? What would you offer?
14,000 sq ft for that structure and price seems pretty good.
You are buying at almost 10 a square foot. You couldn't build new for anywhere close to that.
The picture doesn't look bad from the exterior. Is it in a rough area??
How do you know the building appraised for 180,000?? Did the seller provide an appraisal?? It sounds more like you are talking the tax assessors appraised value which means nothing and is just for tax purposes. The 152,200 sounds like just the percentage they asses for taxes in that city or county based on total value.
Throw out assessed value or lower at the seller and see what he says.
I would guess office or medical office would go in that type of building. You need to figure in leasing commissions and tenant improvements and then factor ongoing CAM expenses based on what the leasing structure is for gross lease, NNN, etc.
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