We have been spending the last 12 months in USA, buying up in Atlanta and Boston.
Our criteria is cash flow from day 1 and growth.
Here is a deal we purchased.
Here are the Numbers. Tenants been in place since 2004.
Purchase Price : $805,000 + 5% Buyers Premium + closing cost = $860k
Net Rent: $238,000
Net yield: 27%
Property Type : Commercial office + warehouse in Techonology Park
Tenant profile : Long Term Bio Medical companyCorey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Nice Marissa – what is the remaining lease term on the property? Is it a single tenancy or multi?
I’d assume bio-medical would have pretty extensive fitouts/planning permit requirements so should be a stickier than average tenant for lease renewals?
Just signing up on another 5 years.
Tenant spending $100,000 to upgrade equipment
Its a sweet deal as a recent certified valuation came in at $1.3M. Multi National company had low reserve on this, offloading
There is also another option to flip, take profits off the table. However, very hard to find something with this cashflow.
MTRCorey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Good work – ticks all the boxes. Was the multi a REIT or something along those lines? I similarly had a client get a steal of a deal from a ASX200 company which was offloading assets in bulk a few years ago – amazing what slips through the cracks.RookyParticipant@rookyJoin Date: 2009Post Count: 1
Excellent Marissa – in which city it was – Boston or Atlanta ?
This one was in Atlanta, blue chip commercial precinct.
We recently purchased an historical sandstone building in Boston, but the strategy with this one is condo conversion (31), still with architect. The ground floor and basement will be commercial.
This will be a hold as cash flow will be strong and Boston market is very hot we want to capture ongoing growth.
We had several clients put funds into this one.
Also purchased this one at auction. Auctions can be brilliant way to source deals, but still comes down in part to luck, who is bidding and reserve.