Florida NNN Cash Flow - Good or Bad?
A friend of mine is buying a business in Florida & wanting me to look at putting together a group to buy the real estate & leaseback. (He's never been interested in owning real estate, and in the dozen companies he owns, he just leases the buildings.)
I'd love to hear from anyone in the commercial space and let me know what kind of numbers are "normal" and what you look for. I've bought around 100+ single family & small multifamily properties, so I'm not a noob in that, but in commercial... I'm very green. So help me with your input. I'm trying to figure out if this would be a worthy pursuit.
So in short, the property is mid-south Florida. Has a good amount of land, some large facilities on it. They're wanting to sell for $8MM. My friend is buying the business separately. I think a mortgage would be around $45K/month if someone financed the whole thing. and he is ready to do a NNN lease for $75K/month where there'd be no other expenses incurred by the property owner. So $30K/mo or $360K/yr cash flow after paying the mortgage on an investment like this... To me it seems pretty good, but I'm not sure what commercial experts would say... Would something like this be worth your time?