710 State Road, Auburn, AL (Single-Tenant Office Building)
Investment Info:
Office Space buy & hold investment in Auburn.
Purchase price: $462,282
Cash invested: $140,000
A 4,733 Square Foot Office Building located approximately one mile east of Downtown Auburn. The seller did a sale/lease-back and will remain at the property. During the lease period, the ownership is allowed to market the building to other potential tenants, which will cancel the lease of the tenant when the building is leased. The purchase is a long-term hold of 10+ years due to lack of single-tenant office space located proximate Downtown Auburn.
What made you interested in investing in this type of deal?
Long-term potential. There is a lack of office space proximate Downtown Auburn and pricing never seems to ever go down.
How did you find this deal and how did you negotiate it?
Found this deal on MLS. There was a previous contract that fell through and then it was purchased for less than the previous contract price.
How did you finance this deal?
The sale included a private mortgage that was assumable.
How did you add value to the deal?
The seller wished to stay in the property on a month-to-month basis while we sought a tenant at market rent.
What was the outcome?
Property is being currently leased at market rent.
Lessons learned? Challenges?
NEVER DOUBT YOURSELF OR THE MARKET INDICATIONS.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Kathy Overfelt - Realtor (Auburn, AL) & Nick Hayes (Roots Real Estate - Commercial Leasing)
