16 Unit Office Building Purchase

[Will Bowman]

Investment Info:

Office Space commercial investment investment in Cockeysville.

Purchase price: $1,425,000
Cash invested: $100,000

In April of 2021, my partner and I purchased a medium-sized, class B office building in Baltimore County, MD. We purchased the property for 1.425M and raised ~$350k through four Limited Partners who each received 12.5% equity ownership in the deal.

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

We found this deal through a wholesaler that we had a previous relationship with. We were able to negotiate a seller credit on the purchase to help fund some of the capital improvements we would be making.

How did you finance this deal?

We used ACNB Bank based out of Westminster MD for a commercial property loan. 25 year amortization at 3.6% interest

How did you add value to the deal?

The property hadn't had any capital improvements made in decades. We completed all necessary capital improvements and renovated the 6 vacant office spaces.

What was the outcome?

After leasing the vacant offices, we will be in a position to cash-out refinance on the property at a projected 1.9M-2.1M valuation

[Will Bowman]

@Brandon Plombon thanks! We got $100,000 in credit and we repaved the parking lot, painted new parking spaces, replaced the roof/gutters/fascia, replaced the main water line to the building, installed new exterior light fixtures outside of each unit, and renovated the 6 offices that were vacant. (New flooring, paint, light fixtures, and bathroom fixtures)