Carrollton Commerical Flip - Remodel, Up-lease, Sell
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Description
This project is quite unique. The concept of buying, remodeling, planting a solid tenant, and selling is pretty common practice in commercial investment. What makes this project different is that the type of business that this building is made for is a car dealership. Very hard to find good car dealership spaces. A recent sale just a couple miles away sold at a 4% CAP ($3.9M) to the tenant. It was a multiple offer situation and was only on the market for one day. That said, this project involves planting a 5-year tenant at $15/sqft, which we already have lined up. The profits below don’t include the profit from the $5700/month cashflow. Presently, we are working a deal where the tenant signs on the debt and secures the lease and splits the profits with the investor that brings the $520k.
The Numbers (Projections)
- ROI - 205.63%
- IRR - 137.09%
- Net Profit - $1,069,300
- Sale Price - $4,100,000
- Purchase Price - $2,300,000
- Rehab - $300,000
- Soft Cost - $156,000
- Selling Cost - $274,700
- Total Cash Invested - $520,000
- Time (months) - 18
Interested in this deal?
Call Brandt Barham at 469-531-4131.