Second Commercial Building Lancaster SC

[William Tong]

Investment Info:

Retail buy & hold investment.

Purchase price: $550,000
Cash invested: $225,000

Single Tenant just left after 9 years. Old Firestone or Good Year building. Out building in a moderately large outdoor mall. Very busy street.

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

Long lease and cash flow.

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

Loopnet, agent

How did you finance this deal?

Seller financing

How did you add value to the deal?

Paid down debt and now in 8 year of 10 year loan.

What was the outcome?

Got 12-13% cash flow not counting loan pay down. Unfortunately the tenant bought his own property and left.

Lessons learned? Challenges?

It is difficult to rent out such a large building (7500 sf) in such rough condition.

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

No. So far brokers and agents have been underwhelming.