Potential Investment - Medical Office Building on LoopNet
Hey everyone,
I'm looking for some insights from the community on a potential commercial property investment I found on LoopNet. It's a medical office building located in Prosper, TX and here's a breakdown of the key details:
Property Details:
- Sale Type: Investment or Owner User
- Property Type: Office
- Property Subtype: Medical
- Building Size: 9,657 SF
- Building Class: B
- Year Built: 2023
- Percent Leased: 100% (Currently Fully Occupied)
- Tenancy: Multiple Tenants
- Building Height: 1 Story
- Land Acres: 1.00 AC
- Zoning: Commercial
Financials:
- Purchase Price: $676,000 + $81,000 Tenant Improvement (TI)
- Down Payment: 20%
- Commission: $22,000 (agent commission)
- Monthly Rent: $5,400 + NNN (exact expenses not specified)
- Vacancy (First 6 Months): Estimated expense of $27,600 (assuming rent starts after 6 months)
- Mortgage Payment Options:
- 25 year term - $4,000/month
- 15 year term - $4,600/month
Looking for Your Expertise:
- Does this fully leased medical office building present a good potential investment opportunity?
- Considering the new construction (2023) and current occupancy, is the purchase price reasonable?
- Are the lease terms favorable, particularly with the 10-year initial lease and renewal options?
- Are there any red flags I should be aware of, such as the vacancy expense or NNN costs?
- What additional information would be helpful to get a better understanding of this deal (e.g., demographics, tenant mix, operating expenses breakdown)?
I've been following the forum for a while and value the insights you all share. Any feedback or thoughts you have on this potential investment would be greatly appreciated!
Thanks,
Rakesh Battula.