Office Condominium Acquisition

[Phil Sneed]

Investment Info:

Office Space buy & hold investment.

Purchase price: $850,000
Cash invested: $100,000
Sale price: $985,000

Sourced, acquired office pad-site to accomodate the growing needs of a business I owned. The office was completed to our design specifications and has met our 10 year expansion plan and slightly exceeded our financial objectives when it was recently sold.

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

Although we are in an unrelated business outside real estate, the need for office space to house our growing business gave me a reason to invest in commercial real estate.

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

We searched for affordable property throughout southern Williamson County. This property was affordable and offered top value based on construction costs at the time. In addition, the office finish out design afforded us the opportunity to customize the office layout while taking into consideration optimum re-sale value at time of exit.

How did you finance this deal?

Deal was financed through conventional bank financing with modest down payment.

How did you add value to the deal?

We renovated the office in 2014 to appeal to a growing millennial workforce

What was the outcome?

The office investment property was sold at asking price in 2018 with multiple offers. We were very pleased with the outcome.

Lessons learned? Challenges?

Become well versed on condominium regimes before investing in one. The risk are no more substantial than other investments but very different. It pays to understand who owns the common grounds, the building roof and exterior, what aspects of the property are insured by which policies, etc.

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

yes, my wife