All Forum Posts by: Michelle Lutz

Hi, Im a licensed agent with access to MLS in KC. If you want me to look up a property just message me.

@Joel Owens  Thank you so much! I'm going to read this over and over again until I understand it all and theres a couple terms I need to look up but so much here to digest. I have 10 more questions for you but I need to think about what you said first. Thanks again for all the numbers and thoughts. 

Thanks so much for your input guys. The other two strip malls are ours but were built 12 and 16 years ago. We did build them and I do currently manage them. I called a few commercial builders and ballpark figures are coming back at $112-125 per sq ft for grey shell. Does that sound right?  I'm realizing that by selling I'm also giving up control of what will be next door to the other two buildings so that's a factor and makes me think building is the way to go. I'm nervous investing with no tenants in place but 4 months of build time will give me time to hopefully prelease at least part of the building. 

Lets say hypnotically that there's a 1.3 acre commercial parcel on an increasingly busy Hwy in Nebraska. Its next door to two other strip malls that are fully leased. An offer comes in for $400k for the parcel. Do I:

A. Sell it for 400k and try to find something to 1031 it into that would give a decent rate of return.

or 

B. Keep it and build a strip mall of approx 8,000 sq ft for about $900k with no money down and a 15 year 4.5% loan. Triple net rents would average about $10-12 per foot with low vacancy in the area.

What say you?

I would do the radon testing if there is a sizable finished basement. Radon remediation is fairly cheap, my house was less than $500 and the seller generally pays. Congrats on the new house, KC is a great city. :-)