Business Commercial Property

[Michael Barrett]

Investment Info:

Industrial commercial investment investment.

Purchase price: $1,200,000
Cash invested: $461,000

19,000 square feet
10 unit property with store front and warehouse spaces.

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

I was renting 3 units for 9 years when the opportunity to purchase the property from the children of the original owner. Property needed improvements and 3 units were empty. Working with my realtor and sweet equity, all units are filled and rents was raised for the first time since I’ve rented the spaces.

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

I operated my Auto repair business at this property. Started with one unit and ended up with 3 units.
I purchased for $62 dollars a square foot and could get $85 a square foot. Owner occupied so I paid more than anyone had offered so I didn’t need to spend the money to move and re-market my business.

How did you finance this deal?

Put 20 percent down and worked with a bank that was building commercial property accounts.

How did you add value to the deal?

I had 2 different offers from banks on interest rates & gain a half of percent also did a environmental test and was given a check at closing for $25,000.

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

Yes
Mark Yates
Citizens Commerce Bank
Versailles, KY

John Bunch
SVN
Lexington, KY