Indypaint Building (Art studios): 10,000 Sq. Ft. Looking for 120k investment.

[Ryan Mullin]

The Indypaint arts and music building is a collaboration of Ryan and Ashley Mullin (FS Houses) and Ben Harold.

We plan to open the Indypaint creative commercial spaces at 46th and Keystone in Indianapolis. The building has approximately 10,000 square feet under the roof. About 5000 square feet of that space we intend to lease to local artists, musicians and businesses as the primary source of revenue for the business.

There is a 600+ square foot open area in the south east corner of the building that we intend to use as a private art gallery. Additional revenue may be earned from the commission of art sales and hosting events for 3rd party vendors or galleries. Other potential revenue streams include vending and advertising. The property also has 3 “court yard” areas for outside seating and activities. The property also has a 12 space parking lot and 2 separate driveways. High visibility from 2 major Indianapolis streets. 46th St. and Keystone Ave.

Property Information:

• 2424 E 46th St, Indianapolis, IN 46205
• Parcel #8015516
• 9,817 Square Feet
• 0.83 Acre lot
• Zoned C-3
• TAV: $239,600
• Slab foundation
• Single story
• Pitch roof
• Cinderblock and brick construction

Project Background

The project began with the acquisition of the property at the tax surplus sale in 2012. The building was slated for demolition by the city at the time. In order to get the demolition order removed we had a new roof installed and many structural repairs done in early 2013.

In the summer of 2013 we had electrical service restored to the building and completed the majority of the required demolition work. The old flooring was removed and the exposed concrete slab floor was sanded to a fine finish.

The property currently sits as the perfect “blank canvas” for the intended purpose.

In order to complete the project, we are seeking $100,000 for the following:

- HVAC System: $22,000

- Electrical: $22,000

- Plumbing rough-in: $7500

- Finish five restrooms and one bathroom: $2500 each

- Repair sprinkler system: $5000

- New doors and entry system: $5000

- Video surveillance system: $1500

- Landscaping: $5000

- Parking lot maintenance: $2000

- Drywall and painting: $10,000

- Repair windows: $2500

- Marketing: $2500

(Above estimates are based on initial research and quotes from local contractors)

Plus an additional (20%) or $20,000 for unforeseen problems, additional improvements, custom build-outs for long term tenants, etc. 

We are flexible with the terms for the investment.  Here are 2 potential scenarios:

1.  $120,000 in exchange for 40% of the business.  (The business owns the building) 

2.  $120,000 loan at 6.5% interest.  Balloon after 4 years.  Building as collateral. 

3.  Feel free to make a proposal.  

We will be leasing 25 suites and 12 storage areas in the building. Our target rental rate is $13.50/square foot per year. Our projected gross monthly income from leasing is just over $4000 assuming a 25% vacancy rate. We expect to finish the construction phase of the project within 6 months of securing financing or a partnership.

*A partnership with an experienced commercial investor would be Ideal.  Please feel free to ask questions both on the thread or via private message, but allow ample time for inquiries that require research.  

I will be adding more and more info to the thread as we go. 

If you know someone who might be interested please @THEM!  

Thank you! 

-Ryan Mullin