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Updated over 7 years ago,
Is this deal worth considering? Help me with the numbers
Let me start by saying I am new to commercial and need some guidance.
Our downtown area here in SC has really taken off the last two years. New residential small pocket neighborhood downtown, lots of new construction with no sign of slowing down. Several newly constructed stand alone mixed use buildings 100% occupied. Some of these buildings are now on the market owned by an investment group. Buildings are very well done, hardie plank siding, metal roofing.
The building I am considering is a two story mixed use 800sqft bottom and 800/sq ft top unit listed at $498,000. Listing agent says both are NNN leases. Both currently rented at $1600 month. Lease expires in July 2018 with option to renew. Even if they choose not to renew, I am almost 100% sure it would get filled in a hurry in this location.
Land value is around $200,000 from recent sales of lots right next to this one.
Worth considering?