All Forum Posts by: Jeff Licciardi

Hey All - hoping for a few quick bullet points on common ways to add value to commercial space.  I'm working on a mixed use space.  I occupy greater than 50% with a business I own.  The other half of the building is rented out for several years.  

I have a basement that's unused.  A couple hundred square foot outbuilding that is unused (has a garage bay and door access) and a massive parking lot that we don't need.

Would love any ideas.  Questions are both anticipated and welcome :)

Thanks!

crickets

I'm working through a loan and I've been asked to provide P&L and tax returns for the life of the loan.  Just for the building entity - not personal.  Seems easy enough to agree to that.

@Shaun C. Awesome design.  Wondering what you learned on this deal?  What are the two or three things you would have done differently?  Maybe something from selection and something from the rehab itself?

Hope it sold!

Jeff

Nice to see someone local chime in.   Thank you.

The building is going to get an official appraisal so I'll have a better idea of value, price, CAP rate then. The seller said it will be based off of the NOI. Hopefully the price comes down. :)

I have one introduction to a local bank.. happy to speak with others.  Appreciate the help.

Best,
Jeff

Hi Folks - hoping for a a little help to get my thoughts straight.  Here are the basics.

I currently occupy 11,800 sqft of a 20,000 sqft building.  The building houses a strength and conditioning facility (gym) that I own with partners.  We want to remain in the building b/c it suits our business need perfectly.  The owner wants to sell.

I pay rent (obvious) of about $8/yr (3% annual increase) + $3.50 for CAM (lease through 8/19, but extending through 8/22 before any sale).  Our neighbor pays about $11.61 and it jumps $0.40/year

NOI on the building is about $160,000/yr including revenues from the other tenant. This also includes expenses from a 3rd party management company that does EVERYTHING.

We are going to be somewhere between CAP8/9 when the appraisal comes back.  That puts me between $1.78/2M for cost.

I'm thinking about getting a local lender + SBA to cover 90% of the loan amount.  This gets me a down payment of roughly 180-200K + costs.  I need to occupy 60% of leaseable space for this.. not a problem.  There is a basement, outbuilding, etc.. that more than get me there.

There is also a 6 acre parcel next to the property with easements for access roads and a connection to a new street (good news for my business AND for the building).  This will be sold at the same time but as a different transaction (i.e. not attached to SBA loan above).  This will probably go for 50-75K/acre.

So my questions are... where do I start? What questions should I be asking. I'm not planning on coming up with any of the down payments on my own.. I'll be seeking investors for that.. either from my gym business or from the outside. When I do that.. how can I think about structuring that? Equity partners in the LLC's that own the building or the land? Debt holders? The owner of the building is willing to hold an IO note as a second (if we can or can't go SBA) for some of the money if we would like. How might that impact the loan?

I honestly don't even know what to ask... so any thoughts about what I should be asking are great as well.

Thanks!

Jeff

Tim,

There are a lot of non-profit housing companies that work closely with cities.

Typically they help put families in homes, work with lenders, city judges, and really really needy families.

I had a friend who did this type of work for a few years in Buffalo, NY. I have a feeling your experience would line up well with their needs.

Just an idea..