Also, the building by itself if it were vacant would only appraise around 450-500K. We need to get a good lender who understands location and a very solid tenant to pre-approve the deal…we have several interested parties but I would like to get it packaged so it is a “turnkey” property purchase.
I have a property that several interested people want to buy. The price is 795K. The building is 2,000 sq ft in very good location. NNN Lease for single tenant of $7,000/month…the tenant makes a lot of money and he will always stay in this location.
What kind of pre-approval can loan I get set up for a buyer and how much $$$ down will they need to come up with since the mortgage fall out situation.
The property is undervalued if the monthly rent for the NNN is correct. The property can be easily appraised over a $1 million and more depending on the set cap rate.
Posted by Brian (NoCA) on September 24, 2007 at 22:52:26:
How do you know the property is undervalued without knowing anything about the market? The rent could be above market, or a non-credit tenant, or a relatively short lease term, or long one, etc. It’s misleading to state that the property can be “easily appriased over $1 million”
A 10-11% cap rate is run-of-the mill in the areas I invest, even for commercial NNN tenants.
The reason for the lower selling price is because it’s a single tenant building in a great location…but in a town under 25,000 people. We want to move the property quickly…so that is whay the price is where it’s at.