Great Deal Alert - Investment Property
Amazing Development: Off Market Opportunity – $4 million, 17,000 sq ft mix-use building plus huge parking lot between Silver Lake and Downtown
This opportunity is only going to apply to a few of you. For the rest of you, it can be a bit of an education. What we have here is a totally vacant, in excellent condition building that can house either apartments, live/work lofts, offices, retail spaces or any combination thereof. The building has a lot of style and character. Tall ceilings, about 13′ high. One of the great things about it is that there is already 50-car parking right next to the building (included in the sale,) so that normally very high expense (parking) will be pretty much non-existent. If one factors in the purchase of the building and the build-out to accommodate the tenants, the numbers look like this:
$4 million = Purchase
$1 million = Build-out
$ 5 million = Total
Back end value should be, depending on use, etc., approximately $8.5 million. Deduct soft costs – approximately $850,000 – and, if you figure a one-year turnaround, you are looking at a $2.65 million profit on a $5 million investment. That’s over 50%! Hell, even if I am a bit off in my factoring (and I don’t believe I am), you’re not going to do worse than 40%!
The area is changing very rapidly. Other investors have recently bought up several large dilapidated buildings within a block in any direction which they will be re-positioning in a manner similar to what you will be doing. In other words, this district is exploding which, of course, was inevitable given the gentrification that has happened on either side of it (Silver Lake and Downtown.) If you want it, or even think you might, contact me asap.