All Forum Posts by: Paul Cattin

I have experience here in Colorado. Not sure how this will vary from Massachusetts. What questions do you have exactly? 

You can exchange into another investment property. If he already has the one identified then that should suffice, but he is able to identify up to 3. My recommendation is to contact a 1031 Intermediary to facilitate the exchange details. https://www.ipx1031.com

From there you will have 180 days to close on the new property. Hope this helps and let me know if you have any additional questions. 

Hello Gabriel,

It sounds like you have two different sale objectives here: the business and the real estate. From which, you may want to look at this from the real estate perspective and sell off the FF&E as part of the property sale if you wish to do it all at once. This can add value to a sale for an owner/user looking to do a new restaurant and could also utilize equipment and improvements. 

That said, if you are looking to sell the business that has value, then I would hire a business broker for that portion, sell the business and write a new lease for the property that could be used for an investor looking for NOI. Then sell the property with a new tenant and lease.

As for RE brokers, you would probably want one that has experience in restaurant/landlord leasing to take over the space. Then maybe use them or another investment sales broker for the sale of the property depending on how you like the relationship and ability to finalize the sale. Hope this helps.

Hello Izzy,

Sounds like you will still need to find some specific costs, but you can look up taxes paid and that will be the most significant cost that you can't change. Utilize these line items below for property management, and you should be able to understand your cost / SF on the building. These are for a building 10,270 SF if you want to utilize a % estimate. In your situation, it's probably more important to know who is paying what. Therefore, it will be easier to understand what you can still pass through to the tenants vs what they are already paying. Management however, can be up to 10% of the NOI and your level of service may be negotiable. Hope this helps.

I would develop a solid criteria for size and product type you are looking for. An example may include the $$ budget you have, areas you like, you buy with cash or use debt (30% down +/- typically), and product type you prefer. The four main product types are: Retail, Office, Industrial and Multi-Family. Loopnet is a good resource for some of the stuff out there to understand more. However, a broker will get you much further.

As for a broker in your area, there will be different brokerages that are stronger in specific types of product. Regardless, you will want to find a broker that you like working with and specializes in a particular product type with experience doing 'Investment Sales' within that product.  

Since you are new to commercial properties I would be up front with brokers about that, and leverage your residential investment knowledge. You will most likely not get a Senior person, but you should try to find a good Junior broker with some hustle that works on a team with a Senior watching over them. That should help insure some sense of priority and trust to find the right "investment." 

The key from here would be to make sure when they send you things, respond promptly and briefly why you like or dislike something so they may be more efficient with their time. I hope this helps. 

I agree with @Sam Shueh. A local broker can get you all of the information needed. However, if you start to do a lot of investing it may help. Everything on Loopnet is on CoStar but not everything on CoStar is on Loopnet. 

@Account Closed I would also want to really see the OM for what they are really offering. An "as-is" or pro-forma value. They could be accounting for renewal options and future rate bumps. i.e. less than a 1 year left on a lease that has 3 more 5-year options that increase 10% every 5 years. If an absolute NNN lease, they are most likely paying CAMs.