Where to sell commercial properties?

[Shawn Jacobsen]

I currently own two commercial properties in Southern Utah.

One is a restaurant that feeds tour buses and seats 400 people and has a gift shop attached. The restaurant and gift shop gross about 1.5M a year.

The other is a live theater with an additional gift shop and 5 hotel rooms attached. I have been renovating this property over the last year and a half. I have had a few shows in the theater and have ran the gift shop and hotel rooms at the end of last year’s season. We grossed about 100K in the last few months of the season.

My question is where would be the best place to list these properties for sale?

I have reached out to a commercial realtor in a neighboring town, who supposedly has sold plenty of properties like mine. He came, took pictures, left and doesn’t seems to want to take my calls.

What other options and ideas do you all have?

[Joel Owens]

Sounds like mom and pop commercial properties.

Cap rate needs to be REALLY high to likely get investor interest. Investor interest in the product type tends to be local investors who are comfortable with those type of assets. Out of state investors tend to like strong regional operators with 25 units or more or national brands in strong suburban core areas within a 45 minute drive from the main airport and city for the state.  

Are you just selling the business, the real estate, or both?

Gross sales mean almost nothing. Someone could be cranking out millions of dollars in sales and making 50k profit. Conversely someone could make 1 million in sales and 25% (250k) annual profit margin.  

If just the business then bizbuysell for loopnet. If it is real estate and business then get's trickier as you need to find an operator/owner type. 80% of businesses are owner/operator and not generally scalable. Passive investors investing in businesses wanting to be absentee owners usually need a business throwing off a few hundred k of profit or more so they can layer in managers to be more hands off and still cash flow well.   

If it is just the real estate then typically the value is based on what type of lease (ground, NN, NNN, leasehold (building only),etc.