Skip to content
Commercial Real Estate Investing

User Stats

343
Posts
70
Votes
Craig Garrow
Pro Member
  • Real Estate Broker
  • Malone, NY
70
Votes |
343
Posts

Looking for advice on Office/Retail purchase!

Craig Garrow
Pro Member
  • Real Estate Broker
  • Malone, NY
Posted Feb 28 2021, 19:27

Hello! I’m looking at a smallish (4000 sq ft) office block on Main Street here in my market. It has 3 - 950 sq ft office/retail spaces on the main floor, and the basement area is finished, with two offices and a full bathroom, so it could be leased as a separate fourth space.

Two of the spaces are currently leased. A local bank has a lending office that is renting for $950.00 per month, and there is an optical shop that has been renting since the ‘80s for $500.00 per month. I expect that I could get $750.00-$800.00 for the middle space, and possibly $400.00-$500.00 for the basement, or keep that space for another business that I’m considering starting.

The owner is actually my boss' mother's estate, and they're asking $150K. With the current rents it's providing, I've got the NOI at about $9,500.00 after taxes, insurance, and water & sewer. That makes me think the purchase price should be closer to $100K, and I am hoping to obtain owner financing.

Admittedly, I’m a little gun shy on something strictly commercial, after seeing the effect that COVID has had. Has anybody else been buying commercial lately, and having success in smaller markets with similar properties?

Thanks in advance!

Loading replies...