All Forum Posts by: Priyanshu Adathakkar

Not sure where you get the definition "Air rights are defined as the ‘right to control, occupy, or use the vertical space (air space) above a property, subject to necessary and reasonable use by neighbors and others (such as aircraft)." Only FAA has the easement to trespass your airspace, neighbors/drones or any other entities need an easement. Air rights can be sold or leased.

If you mean selling your primary residence and using funds as 1031 to buy multifamily, LOL NO-CAN-DO!

The business and real estate need to be evaluated separately. While in this case the real estate should be evaluated based on comps the business valuation should be on EBITDA  (Earnings Before Interest, Taxes, Depreciation and Amortization) basis. Once you determine the value do a real estate purchase contract and do a bill of sale for assets, this way you do not take on business liabilities! 

This is a gold mine, move this property to Columbus if you can and I'll buy it in a heartbeat! My client to available restaurant properties is 4:1! Forget value of FF&E look at the CAP rate, if the seller is smart, he would have already leased the restaurant space at a higher than market rate!

If you own a retail property, as a landlord you need to be very selective on who you lease the space to. Any space that has a high tenant turnover is normally considered jinxed and other retailers/tenants avoid the property.

If you are looking a buying a retail property this is also very relevant as sellers tend to fill the spaces up just to show 100% occuancy! When buying look at the tenant mix.

The number one reason why retail stores go out of business is because of location. Be really serious about this for a second. The number one reason retail operations go out of business is because of location, not because of some terrible inventory that the tenant had or some bad weather or a bad employee. It's the location.

How do we know which tenant is best suited for your location?

Ask your yourself the following questions:

1. What kind of retail center do you own?

2. Will anchor's if any will help?

3. If yes, what type of anchor and what kind of business will they help? How will being next to a supermarket, a post office, a bank, a popular restaurant help? Yes while all of these places have inherited traffic, do they attract the kind of people that will shop at your tenant's business or eat in their restaurant?. For example, would an upscale restaurant do well next to a Walmart?

4. How wide is your property's trade area? A convenience store will not have regular customers from 25 miles away, while a Red Lobster restaurant might.

Retail Property Types:

Property Type: Regional Mall

Concept: General merchandise or fashion-oriented offerings. Typically, enclosed with inward-facing stores connected by a common walkway. Parking surrounds the outside perimeter.

Typical Type of Anchors: Full-line or junior department store, mass merchant, discount department store and/or fashion apparel store.

Trade Area Size: 5-15 miles

Property Type: Super-Regional

Concept: Mall Similar in concept to regional malls, but offering more variety and assortment.

Typical Type of Anchors: Full-line or junior department store, mass merchant, discount department store and/or fashion apparel store.

Trade Area Size: 5-25 miles

Property Type: Community Center ("Large Neighborhood Center")

Concept: General merchandise or convenience-oriented offerings. Wider range of apparel and other soft goods offerings than neighborhood centers. The center is usually configured in a straight line as a strip, or may be laid out in an L or U shape, depending on the site and design.

Typical Type of Anchors: Discount store, supermarket, drug, large-specialty discount (toys, books, electronics, home improvement/furnishings or sporting goods, etc.)

Trade Area Size: 3-6 miles

Property Type: Neighborhood Center

Concept: Convenience oriented.

Typical Type of Anchors: Supermarkets like Giant Eagle or Kroger

Trade Area Size: 3 miles

Property Type: Strip/Convenience

Concept: Attached row of stores or service outlets managed as a coherent retail entity, with on-site parking usually located in front of the stores. Open canopies may connect the storefronts, but a strip center does not have enclosed walkways linking the stores. A strip center may be configured in a straight line, or have an "L" or "U" shape. A

Typical Type of Anchors: Anchor-less or a small convenience store anchor.

Trade Area Size: <1 mile

Property Type: Power Center

Concept: Category-dominant anchors, including discount department stores, off-price stores, wholesale clubs, with only a few small tenants.

Typical Type of Anchors: Category killers, such as home improvement, discount department, warehouse club and off-price stores

Trade Area Size: 5-10 miles

Property Type: Lifestyle

Concept: Upscale national-chain specialty stores with dining and entertainment in an outdoor setting.

Typical Type of Anchors: Large format upscale specialty

Trade Area Size: 8-12 miles

Property Type: Factory Outlet

Concept: Manufacturers' and retailers' outlet stores selling brand-name goods at a discount.

Typical Type of Anchors: Manufacturers' and retailers' outlets

Trade Area Size: 25-75 miles

Property Type: Theme/Festival

Concept: Leisure, tourist, retail and service-oriented offerings with entertainment as a unifying theme. Often located in urban areas, they may be adapted from older--sometimes historic--buildings and can be part of a mixed-use project.

Typical Type of Anchors: Restaurants, entertainment

Trade Area Size: 25-75 miles

Yes! There are a little over 300 properties on the market at this time that can be bought for less than $100,000.

Some of these are less than $20,000, for example, 1971 Aberdeen Avenue, Columbus OH 43211 listed for $14,900 and 4874 Ridge Street, Columbus OH 43207 is listed for $16,100

Both of these properties obviously need to be rehabbed but there are others that cost a bit more but are turnkey like the one below:

Listed at $69,900.00 This Single-Family Freestanding at 2228 Gerbert Road, Columbus 43211. This 979 SF Cape Cod was built in 1949. According to the listing "Not a thing to do, this charming cape cod has been completely renovated. The home has all new siding, a new roof, updated HVAC (including central AC) and electrical. The light bright eat-in kitchen has all new cabinets, sink, counter-tops, ceramic tile floors and a stylish subway tile backsplash. A new stainless steel stove, microwave, and dishwasher have also been installed. The living room has refinished hardwood floors. There is new carpet in the bedrooms and freshly painted walls throughout. The bathroom has a new vanity, bathtub, ceramic tile floor and an ornate ceramic tile tub surround. The home also has a full basement, deck and a one car garage that can be converted to a two car. Located on a quiet block of Gerbert, the home is close to the OSU and offers easy access to downtown" Days on market: 45

Here are a couple more examples:

Listed for $49,900.00 This 1,440 SF 1 Story single family house at 2216 Williams Road Columbus 43207.Built-in 1942 this property can be sold with the 2 connecting parcels (39k each) if desired. This property has the house, does not include the garage or the additional lot, which are each for sale for 39k each. This house can be leased for 695mo. The garage on the lot next door can be leased for 300mo or purchased for an additional 39k. This property can be residential or commercial use. Days on market: 65

At $99,900.00 This Single-Family Freestanding Cape Cod at 1317 N. Jackson Avenue, Reynoldsburg 43068 is 1,404 SF. Built-in 1920 is a rehab opportunity. In quaint old Reynoldsburg near shops. Needs to be rehabbed but good solid home. Newer windows, fenced yard, detached 1.5 car garage. Quiet street, lots of space. 2 bedrooms main floor, and 1 large bedroom upstairs, Full basement. Days on market: 13

If someone wrote a book about your CRE Investing in 2017, what kind of genre would it be? A comedy, love story, drama, film noir or something else?

@Federico Gutierrez we track data through various sources including Columbus2020, Loopnet and local MLS among other sources.

Average Vacancy Rate in 2017 - 6.3%

12 Mo. Rent Growth - 3.5%

There are just under 165,000 units in the Columbus metro, and this figure has grown significantly over the course of the cycle. Since 2010, developers have expanded the inventory pool by around 20,000 units or nearly 15%.

Much of this construction has been in the Dublin/Hillard Submarket, which saw over 5,300 units come online.

The emphasis in this submarket has been on two-bedroom homes, showing that developers are catering to

young families, given the large employment base in the area.

Developers are also expanding farther south. The River South District is evolving into another urban neighborhood popular with renters, and new units are on the way.

The Polaris area is also creating a new identity for itself as well. JPMorgan Chase's main campus is here, and developers are hard at work turning this area into a live/work/play environment, much like Downtown and Upper Arlington. Since new product, such as 801 Polaris, stabilized in less than a year and multiple projects are underway, it seems that developers' plans to lure residents away from more core submarkets have been successful so far.

@Juan Vargas LOL, I hear you, I am originally from Miami, FL, been there!