All Forum Posts by: Courtney Duong

@John Mocker thanks sooo much for your suggestion.  But before I ask them for those things may I ask you what is a waiver of subrogation?

I see that you are from Norwalk, CT.  I live in CT for 10 years (Bridgeport) and my company's office is in Norwalk and I liked the city and the commute to it everyday (I took the Merit Parkway, loved the deers).  Do you provide service to commercial RE too or no?

Thanks.

@Theodor Chung no, thank YOU for taking the time to write such a long details post and then took the time to answer all of my questions.  I really appreciate it.  I learned a lot from your post above.

Reason why I asked is because my brother owns a retail with 9 units and 3 are vacant right now.  I have a guy interested in leasing 1 unit to open up a Mexican restaurant right before COVID-19 hit.  We already agreed on the details verbally and just right when I was about to hire an attorney to write the lease that's when COVID-19 hit and everything got shut down so he asked us to put the deal on hold to see where things are going.  I don't blame him for that.  It was my first commercial lease negotiation so I want to compare and see how I did compare to the pro :)

So here is the detail on that deal:

5 years term lease

3 months free rent. This is why I asked you. Because I am not sure if we should give him 100% free on both base and NNN, or just free on base rent and he still has to pay NNN on those 3 months.

1.5 months security deposit

TI = 12k

no rent increase on the first 2 years, after that 3% increase each year

He called me last week when Texas was opening up again and said he is still interested but wants to wait few more weeks to see how this new normal looks like.  I am praying that he will still go ahead with the deal so we can get this unit leased out.

Oh, I have another question now about your restaurant tenant.  Did you get a personal guaranty from him on the lease?

Thanks!

@Theodor Chung congrats on your first commercial flip.  Looks like you are doing very well.  I am a newbie in commercial RE and trying to learn as much as I can.  My brother owns a retail and I am helping him managing it.  I have questions for you on #4 below:  

Did you give this tenant any TI at all?

How many free months did you give this tenant? And was it totally free or only free on base rent and they still had to pay CAM/NNN on those free months?

How much did you ask for security deposit?  1 month? 2 months?

Is there any rent increase?

Thanks.

4. Suite F

Suite F is a 3000sqft unit, full restaurant turnkey, vacant for 8 years, and ready to just put in a tenant with the license to start operating.

We found a tenant looking to open up a burger joint and bar, made a killer deal, $3,500 a month with CAM/NNN charges for 5 years.

$3,500 x 12 = $42,000 Gross annual income

Expenses covered by CAM/NNN charges

$42,000 NOI / 7.625% cap rate = $550,819 in added value.

@Jason Bott thanks a lot.  Appreciate it.

@Chad Hale thanks.  I really appreciate your help.  I will talk to our insurance agent to make sure.  Have a good day.

@Jason Bott please DM  me a link to that article too.  Thanks!

@Chris Seveney thanks for the suggestion.  Will think about that.  I am sure the attorney will want to charge us money on writing  the contract and indemnification clause while we don't make any money out of this event.  

@Chad Hale that's what I think too.  We do have adequate parking.  What kind of liability is considered proper for us and them in order to host this?  Thanks.

@Chris Mason thanks for sharing.  I agree COVID-19 isn't going anywhere anytime soon.  Anything we can do to help the community we will participate.  Both of my parents are above 80 so I take it personal in the prevention of covid-19 spreading in the elderly.

@Theresa Harris thanks for such a quick response.  Sounds like they have done this before.  Will make our property manager ask them for what kind of paperwork they have for liability.