All Forum Posts by: Jeff Glinski

Ryland,

   Yes, I'm lucky enough to have the problem of developers looking to purchase the property I own.  It is a property with some older office buildings in an older metropolitan area that is undergoing some pretty extensive re-development with new retail and new condos/housing.  Since the buildings are older, and it is a fairly large piece of land, about 1.5 acres in a densely populated area, it may make financial sense to sell the land for redevelopment.  We have been approached by a couple of developers, I'm just hoping to learn something about the negotiation process and how they think.

Thanks Joel,

  I love the idea of a right to continued marketing clause, especially because we have a property which I suspect may spark additional offers if it gets around that someone has made an offer.  A drastically shorter due diligence period and also an additional earnest money deposit for using an extension period were included by our broker in our counter-offer, but I really like the right of continued marketing clause, even with a ROFR, and will have to keep that in mind depending on how negotiations proceed.

Thank you so much.  

Have any of you owned an older commercial property and been approached by a developer looking to purchase it for re-development?  If so, can you describe the experience and any insights you gained from the process or things you wish you had known earlier in the process.

Have any of you gone through negotiations or a sale with any of the local Milwaukee-area developers who are interested in purchasing or redeveloping property that you own?  If so, can you describe your experience?

Just received a copy of an appraisal done a couple of months ago stating the post-stabilization value of the property expected to be $1.75 million.

I'm the owner who is selling the property.  I would prefer a sale, but would consider a limited partner role for the right redevelopment project.

Let me know what additional info you would be interested in.

4 building office park for sale in prestigious North Shore area of greater Milwaukee.  Over 28,000 sq ft of leasable office space on 1.8 acres.  Asking price is $1,250,000.

Property is perfectly suited for one of two uses.  One possibility is redevelopment of the property to retail or medical/professional offices.  The second is that the property currently is a class B- office park that with some investment into updates can really be appealing to professionals compared to other area options.  Unique circumstances have led to a high vacancy rate that I would be happy to discuss.

This would be an excellent opportunity for someone looking to make the jump from residential to commercial office as the property is current cash flow neutral with the significant vacant space that can be immediately leased to create cash flow.

Assessed value by the taxing locality is over $1.6 million.

Has anyone with an office building taken advantage of the 179D tax deduction over the past few  years and, if so, how did you do it?

Martin Z., I tried to look through your previous posts but couldn't find it (I only did topics it seemed like it might be the discussion you are referring to.

Patrick, I appreciate the insight that they will usually want their own interior renovations for the offices themselves, probably worth making sure the lights and ceiling tiles are in good condition though but otherwise exterior and common areas and structural is probably where the money should go.

Anyone else have other insights.

I've purchased a 4 building office park that has had virtually no maintenance over the last few years of ownership.  It still has about 30% occupancy but I need to increase that fast.  To those with experience in this realm, please help me answer the following questions:

1.  What improvements are most important to new tenants?  Which project should I tackle first (structural like roof, mechanical, cosmetic exterior, cosmetic interior, interior maintenance, etc. .   There is only a certain amount of improvement money but everything has been left in place for years, and I need to get people in quickly to increase rents to further fuel these improvements)

2.  What are the best strategies you have used to find new tenants for Class C or B office buildings?