Industrial Deal! 10k/mo NNN Lease
Hello All!
Grateful for this community.
I wanted to share a deal I recently closed on in Tulsa.
This is a 25k sqft manufacturing building, as you can see, it has been added on multiple times.
I may lovingly call it my Frankenstein building.
It had a 3 year NNN lease attached to it, with approx 2 year left, and an option to renew for another 3 years.
Purchase: $1,100,000
Rent: $10,000.00/mo + NNN charges (I still can't believe this is a thing)
Debt Service: $5,887
Cashflow: $4,113*
COC: 17.26%
*This does not include reserves for vacancies, etc
Next steps is to raise capital to get more deals like this!
I AM LOVING INDUSTRIAL!
Most Popular Reply
@Deren Huang - Congrats on the deal! Getting that first commercial industrial building is a big event. Maintain some good, deep cash reserves for any aspects of the lease that you are responsible for and any future tenant improvements/roof replacements you may need to cover down the road.
Just curious...since you are potentially up for a need to re-lease the property in 2 years if the current tenant does not exercise their option, how does the market look in Tulsa with industrial type tenants (vacancy rates, etc)? Also, how many dock high and grade level doors do you have on the building? And what are your clear ceiling heights? You definitely have an interesting Frankenstein building for sure!
Good luck with running the building and with the existing tenant! And keep that cash flow going!