3 stall machanic garage with lifts for sale: need help

[Brandon P.]

Hi

I am unfamiliar with commercial property and there is a mechanics garage for sale. I’m interested in it.

It is located in a small town of 3k people or so.

What factors should I be looking at?

I tried to comp it but there is only retail space showing for lease. Retail space is showing for $5 per foot. This garage is 3k feet. Asking price is 420k

It’s vacant so I’m wondering if I can even get a loan on it and is it a wise investment?

I appreciate and advice!

[Kevin Dougherty]

Whats your plan for the property if you buy it? why are you interested in the property?

Since it was a mechanics garage do you have an understanding of the environmental conditions that come with this type of asset? Underground storage tanks, chemical seepage into the ground, etc... If you buy the property and there are environmental contaminants they would become your problem and it is not cheap to have them re mediated. If you are obtaining bank financing, the bank will more than likely want an environmental study performed, these studies can cost $1000's of dollars depending on what is discovered on the property.

Is there a need for this type of property in the community? What can you convert it to if there is a higher and better use and what is the cost to convert? 

Why is it vacant and why is the owner selling?

You could contact a local reputable commercial broker and determine if this property truly has value but do not waste their time, if they help you then give them the listing to lease the property if you end up purchasing. 

Good luck