Hello! I am preparing for my very first deal to pitch to investors and wanted to see what details I might be missing that an investor would like to see. I have the basic info but am not experienced enough to know obvious things that are missing from the details presented. Would love any feedback on how to put my best foot forward in this venture!

This off-market deal is 2 pieces of adjacent land (3.29 acres and .25 acres) that are zoned as General Industrial (M1 zoning in Yavapai County AZ. Details at bottom of post*). There is one office building on the land that has around 8 offices with break rooms, bathrooms, kitchens, etc.

The land and office space is mostly rented out and it brings in $10,200 in net rents per month ($11,600 income and $1,400 in expenses). There are 7 different tenants, six of whom are month to month but want to renew for longer-term leases. The owners want $2 million for the land and building and are not interested in financing any portion of it themselves.

THE BREAKDOWN

TENANTS

The building is two stories with a footprint of around 4900 sq. ft. and an additional 1552 sq. ft. upstairs. Total square footage is 6481. Some of the building is shop space that runs the full height of the building. The current tenants include a vehicle repair shop, concrete pouring company, Well-drilling company, food company, Industrial cable company, freight company, and diesel fueling station. Three tenants lease only yard space, three lease office space and yard space, and one leases just office space.

EXPENSES

The only recurring expenses the owners have are about $9,000/yr taxes and insurance, $400/mo in utility bills not paid by tenants, and $250/mo for office cleaning services.

VALUE ADD OPPORTUNITIES

My surface analysis is that most, if not all of the rents are below market and could be bumped up 10% or more as part of signing new leases. There is also about one acre of land that is currently being used as free overflow parking, scrap storage, convenience roadway and other random things. This space could easily be cleaned up, partitioned off, and used for a business in need of this special industrial zoning for their long-term operations or even simply adding a gate, a little more fencing, lighting, and 20-30 storage sheds/containers that could be rented out for $200+/mo each.

That concludes the basic details of the deal I am working on. Anything blatantly wrong/off about it? Would the deal make sense to a seasoned investor? What kind of equity/cashflow split might entice an investor to be interested? Negative criticisms are welcome as well! Thank you so much!

*M1 Zoning info is on pages 52-53 of https://yavapaiaz.gov/Portals/0/OrdinancesRegulations/Ordinance-Planning-Zoning.pdf

Phoenix, Arizona

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