North Texas Office Building

[Mark Creason]

I am working on a value add office building deal in North Texas.  Property is in a small city about an hour outside of DFW.  Property is currently at about 30% occupied with an asking price of 2.5 million.  Asking is at about 42 per square foot.  Deal is a bank owned deal.  Anybody have thoughts on buying something like this?  If so, PM me.

Mark

[Ash Patel]

@Mark Creason - Instead of PM'ing you, I will post here so it can be of value to others.  I have purchased value add office buildings and they are a lot of work.  Based on your numbers, I am assuming this is around 60k sq ft.  

1. How old is the building
2. why is it only 30% full
3. how is the HVAC system?  Recently looked at a 100k sq ft building that was 10% full and the chemicals used in the chiller were not monitored.  This resulted in a $1mm retrofit of every HVAC unit and all the cast iron pipe.
4. Do you have enough time to between now and current lease expirations to make a positive impact and land renewals?
5. how is the building currently managed, what level of full/part time staff?
6. how many parking spots
7. is the building easily sub-divided for smaller offices?
8. what class
9. can you add any amenities to stand out from the competition
10. Is the local market over supplied with office
11. what type of roof/condition
12. what is the going $/sq ft rate?
13. do you plan to be actively involved in the operations at a high level

a lot more questions to make an informed decision