First commercial deal closing soon – I know it’s good, just wondering if this is normal.
First-time commercial buyer in the Midwest. Done my homework, lender is in, I’m confident in the deal. Not looking for validation – just genuinely curious if deals like this exist regularly or if I got lucky.
The deal:
• 8,000 sq ft flex/industrial in the Midwest, good condition
• National tenant, public-company-backed, been there 8+ years
• NNN lease
• Buying at a 10 cap for $550K
• Roughly half what an owner-user would pay for the same building
• 3.5 years left on lease. Lease rate is 35% below market.
• No broker on either side, found seller through direct mail
• Owner held 20 years, out of state
• Phase I clean, clean title and ALTA.
• Lender offered 100% financing
For those with experience in small industrial – is this a once-in-a-while find or can you consistently source deals like this? What’s your strategy for finding more?
Is this normal for commercial or did I just get lucky?
byu/MrAuzzy inrealestateinvesting
Posted by MrAuzzy
1 Comment
Looks like a good deal on the surface. Any options on the lease? What about age of roof/HVAC/parking lot?