All Forum Posts by: Sumner Gaber

Looking for advice on this deal as I have never done a commercial deal.

Property type: Mixed use condominium (nonconforming use variance) 1500 sqft beauty salon lease expires next year, they are asking for 4 year renewal, 500 sqft storage stable income long-term lease, parking revenue in a pool

Size: 2000 sqft

Purchase price : $600,000

NOI: $48,000 (7.5 cap, NNN)

Location: Honolulu, HI

Condition: Good, HVAC just replaced, needs $10k in improvements to flooring

I'm interested in the property because it's a high cap rate for downtown Honolulu. I live nearby and it's impossible to find anything over 5 cap locally unless there's some real problems.  I think this one is a bit higher due to the variance stated above (change in use would require a new variance from county, takes about 120days) and also the seller's personal circumstances. The location is great, although it's not visible from the street, inside of an apartment/office building complex.

Appreciate any thoughts from the community as this is my first post. Thank you!