Actively Purchasing Office Building

[Richard Herrera]

With the abundance of office building available to grab in today's market, at a very low price where you could add value, are there any investor jumping on any good opportunity current as they come across one?. While some might feel is not a good time to invest in that space at the moment - I'm seeing lots of opportunity available and sellers are even willing to be very flexible and creative. For instance, I came across a great opportunity where is currently 100% leased with long term tenants in place.

The owner is willing to be flexible in terms of owner financing or master lease agreement. its over 27,000 SF btw.....reviewed financials and looks good with room for improvement. What are your take on this space for investment?

[Matthew Drouin]

@Richard Herrera we love office and continue to buy it.

I would check in with a local broker who specializes in office and has a subscription to Costar to assess the health of the market and where the demand and weakness is.

We have been focusing on acquiring Class A office that has spaces that are easily demisable into smaller spaces.

We have been acquiring these assets on pricing based upon in place NOI and occupancy in the mid 9 cap rates in our market.