840 Helena Ave LLC and 830 N Warren

[Tyler Warne]

Investment Info:

Office Space buy & hold investment in Helena.

Purchase price: $6,250,000
Cash invested: $250,000

This is a state government lease. Right now extra cashflow has been getting put into the building. The property has a good overall utility, it is a large office building in the center of Helena. There is a government entity that leases most of the space, they are still almost exclusively in person and I have very cheap debt. The end of the lease is 3 years and I have a large balloon payment in about 1.5 years. The building will pay the short term debt off and then we should have cash-flow in the $12,000/month range after management. I bought this with about 120,000 down and a partner and a 250,000 commission.

What made you interested in investing in this type of deal?

See if I could do it, long term lease, no I really understand Gross Lease.

How did you find this deal and how did you negotiate it?

Seller's asked if I would put it on the market as their broker. It went under contract and then that deal fell apart. After that I said that I would take a little more time to find a new buyer, but if they wanted to sell to me I would give them 6.25m, they said OK and here we are!

How did you finance this deal?

conventional & seller carryback

How did you add value to the deal?

I am the broker, built the property management company to care for the building and put it together.

What was the outcome?

So far we have had about 120,000 in HVAC issues, some repairs, but overall it is going pretty good.

Lessons learned? Challenges?

I would have considered the size of this project a little more. It certainly was 'playing with the big boys'.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, Tyler Warne - "He's the best and so dreamy"- My wife - I am the commercial broker in this market.