Million Dollar Hoboken Property
I'm curious what others have to say about a property in Hoboken NJ which I have an exclusive offer to buy.
The guy's asking $2.1M for it. It's a 3800sqft building w/o rent control. It has 1800sqft of apartments which are rented for $26.67/sqft and 2000sqft of retail space currently rented for $36/sqft. From what I see the retail should be going for $55-$60/sqft (please correct me if I'm wrong) and it has 1yr left on lease.
Other notes: building in good condition, Sandy didnt effect it, it's in a great part of Washington Street, owner is an old guy living in Florida, approved to build 1800sqft 3rd level for apartments, electric heat.
Revenues(if retail is rented for $55sqft): $158000
Expenses:
Tax $20000
Insurance: $6000
Profit:~130000
What is the potential for appreciation? Any other points to consider? From what I hear a typical property will sell for around a 6% ROI.