Madison Heights Restaurant deal

[Jacob Farrelly]

Investment Info:

Other commercial investment investment.

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

We bought the building and started Juans Hacienda which quickly became a well known Mexicans restaurant in Madison heights Michigan, my family ran it for about 15 years. We did a 2 5 year options NNN with an option to buy the building and the 1 acre of land its sitting on for the new tenant. However when we first bought the deal it came with another acre off to the side with the same zoning B something ( basically small business) on the main road, estimated value of both is between 4-500k. My plan is to develop the existing lot into 3 units ranging between 12-1600 sqft with 1-2 drive thru, the vacant property sits next to a 4 story retirement center. Probably a B- in property class. The city is on the rise however its somewhat in an industrial area though there are residential developments right behind it. Would love to hear feed back or other ideas !

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

It wasnt my choice it was a family deal.

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

Driving was out dated used it as a tactic

How did you finance this deal?

traditional business loan

How did you add value to the deal?

We squeezed a lot of profit over the 15 years operating the restaurant then leased it to a new tenant on a NNN lease which he is still on

What was the outcome?

so far so good

Lessons learned? Challenges?

ZONING is a B@#$%

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

Not yet