CRE 18K Sqft Value Add - What would you do?

[Brock Laramee]

I would like to know your thoughts. What would you do to complete this value add opportunity? Do you think it’s a good deal? What else should I know?

• 18,000 Sqft commercial space in up and coming area.

• Historic look and area

• Blocked / cemented Windows today

• needs roof flooring etc .

I think this opportunity is to pull permits to cut our cemented in Windows. Put hurricane Windows in plus new flooring. Add Interior glass walls to create separated spaces for cubicle feel and ability to rent in multiple ways either one tenant or multi tenant etc. the back lot has two buildings and a vacant lot that area also owned by people open for offers .... this to me is for parking.

I think the value is like this.

Currently for sale 1.3m

• Office rent once repaired = 12-15 maybe 20 in future

• PP for building 1.3, additional assets for parking and demo 200k? Window work 200K flooring 100k interior paint 50K? Roof 150K

Rent 12 x sqft 18,000 = 216,000 gross rev / cap rate 0.08 = asset value 2,700,000 - 2,000,000 = 700,000 new value.

What do you think? I used 12 to be conservative and 8% cap as assumption. All other repair costs are also assumptions