All Forum Posts by: Anthony Johnson

I would definitely have him paying market rent and no subleasing. If he is below market how does that benefit you or the other partner? Him subleasing how does that benefit you and the other partner. Is this a Joint Venture or is he a GP and your LP's? If its a JV this makes zero sense. He is the only one benefiting on both these portions in the agreement.

Best of luck.  And good learning experience for future deals.  

Quote from @Eric Hufham:

Has anyone heard of someone doing a syndication for a small retail strip center +/- 10K SF? It seems most syndication is for multifamily. 

 Well from above yes you can.  Is it a value add deal with a good upside?  Where is it located?  Any Regional or National tenants??  Best of luck with it. 

Quote from @Daniel Boan:

Hello! New to BP and my first foray into the forums and looking for advice.

I am eyeing purchasing an old building and turn it into a medical office (It's pretty much just bones now). My prospective tenant has a hand-drawn sketch of what she would like the layout to be. Since I would need a good idea of what my upfit cost would be before I offer on the building, I was wondering how much do I need to do to get an reliable estimate. Can I just take the sketch to a contractor? Do I need an architect? Any advice would be greatly appreciated.

Thanks!

I’m a commercial gc.  If you find an experienced commmercial contractor that does commercial work consistently they should be able to give you a pretty close estimate.  
In order for me to give an accurate quote we just need existing condition photos. Photos of electrical panel, hvac units serial numbers, location of existing plumbing, photo and location of water heater.  
if there is no exterior work that should be all that a gc needs to get you pretty close.  As long as they are experienced it should be enough.  Do not have a residential contractor that does some commercial your numbers, timeframe, materials will not be right and won’t hold up for the term of the lease.  Good luck.  If you can’t find someone local you can reach back out and I will give you a loose budget.  

Quote from @Peter Wisber:

Hello BP community! 

I'm reaching out for a gut check on some strategy / pricing on a commercial office space complex I recently invested into. Fortunately the majority of the units are occupied except for one. The vacant unit is approximately 1,994 SF and was previously a doctors office but is in need of some cosmetic updates including new flooring, paint and likely an upgrade or significant maintenance on the HVAC system. It's located in a very up and coming town with high traffic at around 15k per day. I currently have it listed at $23 per SF, but that's factoring  in the likelihood of me splitting or covering the costs to bring the unit up to spec for the potential tenant. This price per SF is slightly higher then local competition, so I'm concerned the higher price tag is pushing away potential tenants. Would it be more advantageous to price it lower to get potential tenants on site, and then negotiate increases per SF depending on what they're looking for? 

Any advice would be great as this is my first dive into commercial, woo hoo!

Here's the listing if you would like to have a look - https://www.loopnet.com/Listin...

- Pete 

 Why not lower the rate to attract tenants.  Then once you get interested party negotiate a ti allowance to let them do the cosmetic upgrades.  Based on the extent of there needs and the amount of ti you can adjust the rent rate.  By the sounds of it you could do a 5 year lease and offer 10-12 per foot in ti should cover the renovation.  Then add that back in the rate to get where you need to be.  Good luck.  Never bad when you only have one vacancy.  

Quote from @Adam Bartling:

I am curious to see who invest in development.  Who prefers the bigger return over the value add cash flow?

Which do you invest in & Why?

New Sub divisions, Horizontal & Vertical components

Multi Family

Anchored Shopping Centers

Neighborhood Retail Centers

Land to Lots ( sold to home builders)

Etc.

 We invest in development.  Anchored retail and  industrial flex parks.  Always looking for opportunities.  

Wilmington NC below you has great lenders and brokers.  

I work with Dogwood State bank. Southern Bank and First Bank

Cape Fear Commercial, Maus Warwick, Williams are great brokerage.  Depending upon the asset class they both have great broker options.  Good luck.  

If your looking for building or remodeling needs for your units please let me know if we can be of service. 

Quote from @Derek Bell:

No, but I have called around to a ton of suppliers and so far no luck. 

 Are you having them check every manufacturer?  The manufacturers all have different lead times right now they vary by months.  

Meters and Rooftop HVAC units are longest lead time items right now.  They are charging big dollars to get quicker lead times.  However if you shop all the manufacturers you should be able to shorten that lead time.  Those are custom made so not many will be lying around.  However you can always try and find something comparable on ebay which I have done.  Call every electrical supply house and see if anyone has any bad orders that match spec.  Since they are custom special order possibly sitting in a dead special order bin at a supply house in a 200 mile radius.  Good luck

It sounds like it could have a great upside.  Try and figure out why its not leased.  What is the vacancy rate in the area?  Call a couple local realtors and try and figure that out.  Look for realtor signs around that property and call them since they are familiar with the area that would be a great place to start.  

Quote from @Stephen Lyons:

You are saying the exit gets more difficult because of the added value therefore price? And I like the 1,500 range. Would you add bay doors for each and what type of wall separates the bays? As in capable of high shelfing loads or low load separation? 

 Yes you need bay doors and a man door for each.  The building looks like it would be difficult to separate it into 1500 sqft units.  From just viewing the Overhead it would appear you could subdivide it in to 5 units.  2400 sqft each.  I would keep it and try and raise cash flow.  Might consider working on this when working towards contractor license.  Might switch your thoughts from pursuing Residential construction to Commercial Construction.  Much less competition, better subcontractors, and you deal with business owners instead of home owners.  Just a thought.