Posted by Bill Taylor on July 13, 2005 at 14:03:54:
From my understanding the tenant estoppel is a letter signed by the tenants that guarentees that you have no other obligation made by previous owners that you do not know aobut that you will have to follow through on. I am new to this type of thing as well so it would be a good question or something to go to the archives for and find out more info. Good luck
Strip centers better than Apts. - Posted by Bill Taylor
Posted by Bill Taylor on July 05, 2005 at 19:24:29:
I have a deal set up now to buy a stip center if all due diligence goes well. The purchase agreemet is with my attorney. If all goes with the purchase agreement we will proceed to giving the earnest money. This strip center was built 2002. I just got the numbers today.
$230000 NOI
currently 6 spaces with one empty
leases run some til 2012 some til 2013
no national tenants (one resturant doing very well though large draw
CVS located on the property but does not go with the deal
purchase price $2,200,000
3500 new jobs with an army accounting center across the street
all expenses as well as management fee passed on to the tenants for a NNN property deal
good upside with the vacant unit available to rent for another 3000 a month in rental income.
The building is all brick and very well built for all appearances. Not a flat roof but a shingled pitched roof with dormer look above
Very nice area with a lot of growth
Re: Strip centers better than Apts. - Posted by Ronnei (Tx)
Posted by Ronnei (Tx) on July 20, 2005 at 12:04:44:
I get a cap rate of 10.45%, and and 12.09% if you rented the last unit. Why does the owner want out? Seems to me like cake. Long leases. Stable tenants in a growth area. Why are they selling?
Re: Strip centers better than Apts. - Posted by Gary McLaurin
Posted by Gary McLaurin on July 18, 2005 at 18:00:51:
If your info is correct, that is a no brainer buy!
Re: Strip centers better than Apts. - Posted by Conrad Niles
Posted by Conrad Niles on July 13, 2005 at 13:22:27:
What is tenant estoppels at closing?
Re: Strip centers better than Apts. - Posted by ray@lcorn
Posted by ray@lcorn on July 05, 2005 at 20:04:26:
Bill,
Sounds like an excellent find.
As always, I hope the due diligence proves out.
Read every word of the leases; verify all of the expenses; require tenant estoppels at closing; and get an owner’s title policy.
Let us know how it goes!
ray