Analyzing a commercial property

[Ankur M.]

Hello,

I am analyzing a commercial property shopping center to look into going in with a partner. They property is currently set at $850k and 100% occupied with long term leases. The net income at $82k. Looks like the property is owned by some investors, and may have purchased it around $450k from a bank. My question is what would be a reasonable offer if i financed this property with about 25-30% down? I assume I may be able to get a 15 year loan. The assessed value with land and building is about $670k. 

[Nathan Gesner]

Tax assessed value does not reflect market value and can be wildly different.

Nobody can answer your question without knowing your market. What's the cap rate? What would your expenses be? Are these NNN leases? What's the quality of the structure, quality of the leases, and strength of the leases? Do you have experience managing commercial?

The property is close to the 1% rule and it's 100% occupied with long-term renters. That indicates it's worth digging deeper into it but there's not nearly enough information available for anyone to advise you.