How small is too small to syndicate?

[Brandon Hicks]

I’m looking at a strip center in the $500k range. I could sell a few of my duplexes and 1031 into it but I’ve considered just syndicating it to gain some experience on a small deal.

It’s a 100% occupied 12 cap deal with what seem to be solid local tenants. I’d raise around $200k, take a 2% acquisition fee and split the deal 70/30 with 70% going to the LP’s.

There’s some upside as the leases come up in 1-3 years but it’s mostly a cash flow play in my opinion.

Is this too small of a deal to syndicate even to do it to gain experience and build a track record with some LP’s.

I’ve got a lot of small multifamily experience but very limited commercial experience. I do have access to a local guy who’s done a lot of strips though and I feel like I could very easily raise the money for this.