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.