All Forum Posts by: Jeremy Greenamyre

First, have you done any environmental due diligence?  If it is/was an automotive repair business I'd be concerned about underground storage tanks, surface contamination, etc.  If this space is in Kansas, Google: "KDHE KEIF", which will provide you a searchable map of 'known' potential issues.

If the goal is to incentivize housing construction, the federal, state, and local governments could also address the disincentives - environmental restrictions, "green" requirements, restrictive zoning, studies, etc. There is a lot of upfront risk only to be told 'no' or 'not here' or 'yes, but more affordable'.

Right now, you need occupancy more than you need market rents. Give the first few renters a deal. Who cares if they’re $100s below market rate as they provide activity and proof of concept - lights on, cars in parking lot, etc. You can try to make up the rent difference at renewals or with new tenants. I’ve been in this situation myself. It sucks. I’ve seen the building and I like the neighborhood. This seems like a winner after initial lease up.

I think you need more info on what the seller wants. I’ve done a number of off-market and/or seller financed deals, and highest price isn’t always the determining factor.