Off Market 15 Unit Strip Mall with Restaurant - NEED GUIDANCE

[Christian Ferreira]

Good Morning Biggerpockets!

I am fairly experienced in residential multifamily investing, done a few flips, own 10 rentals, 4 buildings. Recently through networking I was offered a off market 15 unit strip mall that has 8 retail storefront on level 1, and 6 office spaces on level 2. It also has a detached restaurant. At first I was thinking this is over my head and I was going to pass it up, but I told the seller I would run some numbers and let me know. He is selling because he wants to 1031 and needs the money for a 30 million dollar new construction project. 

The numbers below are not exact but a basic estimate off the information he quickly gave me, but from a quick glance it looks like a half way decent deal. 

Asking Price: $2,350,000

Retail storefronts rent: $1250-1800 monthly X 8

Office rents: $1200 monthly X 6

Restaurant: $4200 monthly

Taxes: $24,000 yearly

Gas and Electric Separated. 

Town Water and Sewer.

Built in 1987

I am looking for some expert advice about how I should proceed... Do you think I should find some private money to fund the down payment? Do you think I should find a partner for the entire deal... Where I manage and they purchase or pay the down payment? 

Thanks!

[Jason Denoncourt]

@Christian Ferreira now more than ever the retail tenant mix matters.  look through the tenant roster for any who may be affected by online ordering (amazon effect) or by covid (any tenants with business restrictions).  I know NH is faring better than MA, but in MA most restaurants and retailers have taken HUGE hits to their sales and many are trying to renegotiate leases.  I'd recommend walking in to each of the tenants spaces and asking them how business is going.  That'll tell you a lot more than the seller will.  Good luck.