Former Bank building advice

[Ash Patel]

I am going to check out this property tomorrow on the west side of Cincinnati.  It is fully leased except for the bank who has vacated and moved around the corner.  Ideally I would love to land another bank to occupy this space.  Has anyone here ever landed a bank tenant or re-purposed a former bank building?  

Thanks! Ash Patel

[Joel Owens]

So you need to release the bank space at 8 sq ft just to break even??

That is a horrible deal. I look at retail strips all the time. Off of a 25% down payment we are hitting about 15% cash on cash going in. Breakeven occupancy is in the low 60's for servicing the mortgage buying in the low 8 cap's going in.

Occupancy is about 90% going in when buying. Even if 100% occupied we deduct vacancy and add in reserves and anticipated future TI's and LC's.

If something had to be 100% occupied just to break even I would think you wouldn't even look at it. An exception is if it is sitting on very valuable land where you could repurpose at a much higher cost than what you bought it for.