Vacant office building value-add deal #2

[Joel Krieger]

Investment Info:

Office Space commercial investment investment in Allentown.

Purchase price: $555,000
Cash invested: $140,000

The second office property I purchased is a 6,000 square foot former law firm office with 17 rentable office spaces and 2 co-working spaces. Lease up is 60% done. The property features a lobby/reception area, large conference room, copier, kitchen/break room, and server room.

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

Great layout with many individual offices that appeal to a variety of office tenants.

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

The property was listed int he MLS.

How did you finance this deal?

Local credit union lender.

How did you add value to the deal?

Minor repairs and updates, adding furnishings, and leasing up.

What was the outcome?

The property is leasing up quickly.

Lessons learned? Challenges?

A great office building layout makes the tenant decision making easier and leases up faster.

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

Lehigh Financial