Shared Workspace in Commercial Building

[Robert E Thompson]

Investment Info:

Office Space commercial investment investment.

Purchase price: $335,000

Purchased commercial building on lease option to turn into shared workspace and meeting / conference building (there is very little of this in my small city).

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

I have been a residential agent slowly turning my business toward investment and small commercial. This opportunity presented itself as a fair buy on the property and a fairly easy path to cash flow. One of the good things about a shared workspace is that if you lose a tenant, you only lose a small portion of your revenue.

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

Was the broker representing the seller and subsequently the buyer on the deal. The buyer and I had discussed various uses for the two buildings he had just bought in this transaction and as his old tenant did not pan out, I agreed to lease option the building.

How did you finance this deal?

Seller financing on a lease option

How did you add value to the deal?

Adding a strong business as a tenant.

What was the outcome?

I suppose we'll find out one day. I'm in the building.

Lessons learned? Challenges?

Asking for what you want will sometimes get it for you.

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

Myself as a broker; Everything was cash. Always recommend Sheila Houck at First American Title in the Portland and Clackamas county markets. Started working with her 19 years ago.