All Forum Posts by: Alexander Scott

Investment Info:

Multi-Tenant Office Bldg Investment

Purchase price: $2,600,000

Cash invested: $2,600,000

Lakewood Multi-Tenant Office Bldg

Building: 56,413 SF
Lot: 1.57 Acres
Taxes: $33,106 (2017)
YOC: 1972
Occupancy: 45%
Ave. Rent/SF: $10.41/FSG
Sale Price: $2,800,000
Purchase Price: $2,600,000
NOI: $101,016 (Anually)
Cap Rate: 3.89%

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

This was an in house deal where 3 Fuller Real Estate Brokers listed this Office Property for the seller and I represented the buyer for the deal.

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

Cold Calling persistence. I really enjoy figuring out what investors are looking for and matching them with the right investment. I cold called the buyer for this deal and after putting several deals in front of him we finally struck gold with this Office Investment that offered plenty of upside potential.

How did you finance this deal?

This deal was an all cash deal.

How did you add value to the deal?

I feel my ability to figure out what a certain investor is looking for is where I gained success in this deal. The buyer was a local investor that really liked deals that provided him with upside and this happened to be a perfect fit.

What was the outcome?

By closing we had two sellers who were happy to make a return on their investment and a buyer who gained a great long-term hold Office building with plenty of upside.

Lessons learned? Challenges?

The biggest takeaway from this deal was understanding what your clients want. If you can really listen to what peoples needs are you can likely find a deal that works for them.

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

Another Alex and Mike deal.

Investment Info:

Retail commercial investment investment in Granby.

Purchase price: $1,990,000

Cash invested: $1,990,000

Power World Dealership - Single Tenant NNN Retail Investment

Building: 12,458 SF
Lot: 3.55 Acres
Taxes: $22,442 (2017)
YOC: 1999
Sale Price: $2,200,000
Purchase Price: $1,990,000
NOI: $189,095 (Annually)
Cap Rate: 9.5%
Tenant: Single Tenant
Lease Term: 5 year with a 5 year option

Seller: Looked to simplify portfolio
Buyer: Out of State Investor

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

I worked exclusively as the sellers broker on this deal. What made this investment unique was that it was a single tenant who sold power sport equipment and services in Grand County. This posed a certain amount of risk for the new owner incase the tenant was to ever leave. Fortunately the tenant had a new 5 year lease term with a 5 year option to renew and felt the location was part of their success as a business.

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

Referrals. 

How did you finance this deal?

This deal was an all cash deal.

How did you add value to the deal?

My business partner and I brought several skills to the table in the sale of this investment. We aggressively marketed the property to local and out of state buyers. We also performed an in-depth valuation of the property with actual numbers to represent what we felt the property was worth.

What was the outcome?

In the end we had a grateful seller who was happy to simplify his investment portfolio and a buyer who received a great return on his investment.

Lessons learned? Challenges?

This was a great first deal for 2019. I learned a great deal about Single tenant retail investments and how much truly goes into looking at a deal from all angles.

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