Possible deal, but my first commercial deal

[Patrick Gerrity]

Hey everyone!! So Ive been doing multi family buildings and some self storage partnering, however I’ve never really done anything commercial myself. I came across a private deal in my hometown that I am truly interested in. It is a commercial property that consists of 7 apartments upstairs, with three commercial spaces downstairs. All storefronts, with 2 large chain fast food restaurants and a tobacco shop. It is smack dab in the heart of the downtown area of the city, with a very large amount of 9-5 workers getting their lunches there. It is currently fully occupied. Right now any apartments in that area have a 1-2 year waiting list to get in. Yearly rental income is $170,000. Taxes are $22,000 a year, and the asking price is $1 million. The problem that I have is I don’t know what to offer on this deal. Like I said, I’ve never done commercial and I’m not sure how to valuation this property. Can anyone help or give me some opinions? Thanks!!