Small Retail Great Location purchase opp

[Steve Olafson]

I am still fairly new to the retail business.  I have built and sold a 10,000 sq. ft. building in the past.  I currently have 8700 sq ft divided into 4 stores.  I bought this as a value add that was half empty and only have one small space left to lease.

I am looking at a small 4400 sq ft building that is in the heart of downtown Scottsdale.  The building is old but it has been upgraded into a nice contemporary design with rusted metal trim and shade structures.  The roof is new and the interior finishes are nice.

It has been divided into five small spaces with hair salons in each of them.  The smallest individual space is going to be vacant soon.

The rents are at $18/sq ft and are low for the area. 

The play on this is simply the fact that it is in downtown Scottsdale.  I believe this will drive the value as rents are likely to strengthen faster here that in most locations.

Any inputs on this deal?