All Forum Posts by: Sergio Guzman

Quote from @Derek Bell:

@Bart Tilly I have not done any projects using tilt up. I have only used pemb with my builds with traditional metal panels. I have heard tilt up is starting to trickle down to the smaller warehouses. 

@Derek Bell I was thinking of doing PEMB but tilt-up adds more value, are favored amongst institutional investors and easier to sell

I’m finding the cost per SF has a difference of $10-20/SF as per my research  

Thanks. 

Quote from @Bart Tilly:

Hi Sergio, sounds like an exciting project.  I too moved into Industrial/Warehouses due to the reasons you listed.  On top of this, I find that the conversations I have with my tenants are business conversations vs. personal conversations with residential.  I have a 18k sq ft facility on .7 acres.  It is tight, but it works so your 30k sq ft on 1.8 acres doesn't sound crazy to me.  Did you include HVAC, storm drains, asphalt and landscaping in your budget?

Hey Bart,

Yes. My site is almost build ready with a regional storm pond.

Price per SF includes all the soft and hard costs.

Thanks!

Quote from @Ronald Rohde:

Everything you described about the macro is correct. It all comes down to execution, can you build it on time, on budget. Are you getting a construction loan?

Partners on ownership side?

GC contracts are critical here.

Yes financing will be used.
No partners.

I agree, GC contracts are critical. I might hit you up for help when it comes down to it.

Thanks.

Quote from @Derek Bell:

I’m in the flex commercial/industrial space. The cost per sf for your build looks about right. Looks like you got a deal on the land at 500k. Only thing I would caution you on is checking to make sure you have the correct and necessary utilities on site. Also make sure you check fire suppression requirements on min square feet per buildout. The biggest thing I see is the ratio to land to build size. With only 1.8 acres, thats not much to build a 30k sf warehouse. Really just no way to do that size of warehouse with only 1.8 acres. 

Thank you Derek for your observations.

I think is priced correctly at $6.25 for its locations. It's located at www.2534colorado.com. It's a very new and busy area.

Utilities are on place and the development uses a regional detention pond. I won't have to spend much there.
Please note the size of the building might get reduced but the parking to land ratio works (1 space for every 350SF) together with all the requirements of open space and setbacks.
I will install a fire suppression system. Besides a code requirement, I believe the investment is worth the increase in price when leasing or selling.

Thanks again Derek.

Hello y'all!

After doing dozens of multifamily and SFR (and very little commercial) I stumbled upon industrial flex space. Of all the assets types, I chose industrial flex because:

a) Better cost / benefit ratio = higher ROI
b) Simpler to rent (residential tenants get more legal protection and adds risk to landlord/investor)
c) Can be sub-rented in small spaces 
d) Huge demand to support online sales and last-mile operations.
e) Asset type has not been noticed by institutional investors. Space to grow.

I'm under contract to buy a 1.8 acre site to build a 30,000 SF tilt-up wall warehouse starting 3rd quarter of 2024.

Construction cost / SF: $175 (includes development and all associated fees)
Construction Cost: 30,000 x $175 = $5,250,000
Land cost: $500,000
Total cost: $5,750,000

Construction type: Tilt-up wall construction up to 24' high

Market rent: $18/SF NNN
Revenue: 30,000 x $18 = $540,000
Vacancy: 5% = -$27,000

Net rent: $513,000. ~ ROI: 8.92%

This are the preliminary numbers I'm using for my UW.

The $175 per square foot cost of construction is estimated as per my talks with GCs and experience in the area. Adding to this, the location of the new build inside an important regional development called 2534 (www.2534colorado.com) in Johnstown, CO which means there is offices, hospitals, retail and housing in the adjacent blocks. This property will have the ability to host many business tenants including office, warehouse, and retail trades allowed by code.

Thoughts? Comments?

Thanks in advance.

@Kylee Gaona

Hey there. I would love to confirm actual price as well.

I haven’t done brand new construction but it seems apartment building of 32 units costs around $250 per sf as per my contacts that currently build.

Is that close to what you found?

Fernando,

I own land in Tulum and built a vacation house that I rent through Airbnb. I’ve seen the market very close for the last 7 years. It’s nothing but exciting. 

I only seen deals in Tulum that could be scrapped off and built something bigger but never thought about flipping. 

Mexican real estate it’s definitely different than the US, but would be interesting for you to find an opportunity on that niche. 

Good luck and keep us informed. 

Bienvenido!

@Jory Harvey Please provide me their contact info. 

@Clay O. I've heard of them but I didn't know they did property inspections. I will call them.

Thank you!

Hello fellow investors!

I'm an out-of-state investor from Colorado. I'm in the process of buying 5 four-plexes in Tulsa and would love to get a reliable property inspector and a handyman. Please let me know if you have someone trustworthy.

Thanks in advance.

Brandon,

I was able to get my license after completing their course. I couldn't find a better deal online. Overall it was great.

Hope that helps