US Commercial Land Purchase - Atlanta, USA

What : Commercial Land Hold

When: Nov - 2016

Where: Across Falcon Stadium, Atlanta, Georgia US

Why: Land Yield is 5.5% - Can't imagine what would be the return if we put any structure in it.

Site Zoning allows multiple option

Townhouses
Boutique Hotel

We are going for Boutique hotel


Across the road - Hard rock cafe is building a hotel.

Project Numbers:
Approx. numbers are as below:


Buy : $287500

Rent: $1325 X11 = $14575

Net Yield = 5.06%

 

quick video about Stadium:




Property is next to stadium:

 

i watched the falcons seahawks game yesterday. commentators said they spared no expense with the new stadium, best stadium in the world apparently. good location!

 

Brilliant Rolo

from memory - stadium cost $1 billion plus (nearly $1.5B)


Here is a link below on where we are buying and why this precinct is doing so well.

Currently renting the land for parking, no tenants, hence income

We expect to work out what we can build shortly, just going through the process with architect, town planner.

The Atlanta Beltline: Transforming Atlanta's Urban Culture

 

How big is the landspace? Awesome purchase!

 

How much land is it? Stadium looks awesome!

 

Sounds good - how many total m2 is the block?

 

Wow honest returns and great potential

 

Looks very good! I wonder why the vendor sold up, that does look like huge potential land right near a prestige stadium

 

Could be many different reasons

Possibly could not proceed with the build, lack of funds?.

Also, the re agent who sold the land was not aware of the zoning. We believe we purchased this site well under current market value.

The re agents are something else in USA, most don't even bother returning calls. Takes lots more effort to work with re agents in USA than in Australia.

We purchased another 2 parcels of land, one with DA and the other is currently with county for building/planning permits. One of the blocks sold at peak 2007 for $800,000, however the developer went bust and we picked it up for around $220,000.

I believe the reasons we are picking up some good deals is purely because we have cash, hard for US locals to source finance to purchase land.

The opportunities in USA are mindboggling but you need to be on the ground to source the deals and you also need the right contacts, no different to Australia.

 

Approximately 6000 sq foot

 

Curious why / how your rent is higher than what is in the for sale listing, have you given them an increase already?

And out of that rent do you have interest, insurance, taxes, etc? Or are they all passed onto tenant?

 

@D.T.

it was expired month to month lease- we secured a 12 month lease for a tad bit higher!

commercial tenants pays for Taxes

no insurance - as vacate land

Re- Read original post:

Rent: $1325 X11 = $14575

Counted 11 months to reflect NET rent!

 

Ah, wondered why you had 11. Thought it was just because US is a month behind our timezone

 

A day behind at best - not a month!

 

Here is some info on what is happening in and around this precinct

Turner Field's futuristic redo could be a home run

Georgia State’s $53M Turner Field redevelopment plan approved

 

Why did you chose building a boutique hotel vs say ground floor shops and apartment units upstairs? Wouldn't the latter option be easier to sell as opposed to a hotel? That is assuming you are selling the hotel and not planning to operate it yourself.

 

Haven't really decided which way we going for this one as yet.

Hotel was obvious choice - given its location and if we go down that path - will just give it away to chain to operate it.


Also - similar hotel approved site across other stadium is asking $1.2 million.

Few other options are

Just commercial building
Max height hotel with billboard -sign on top
Townhouses
Mix commercial - resi (1 bedder to avoid car parks)

Let's see what happens!

Happy with returns at the moment!


In process of buying an old warehouse not far from this site!

Same yield + Growth play. Only difference is price tag-USD $1.7m at 9% yield!

 

Perhaps its time to take a trip to the states.. I really do love that place, it'd be interesting to do business there, only the risk puts me off!

@MTR are you gradually moving more into US development and away from AUS development?

 

Just an update on this one, currently renegotiating the lease increasing this to $1500 per month as the tenant using the land wants to extend lease, we have a 90 day exit clause in place.

We have an architect in Atlanta working on all our projects and he is currently working on the best way to utilise this commercial land. Hopefully should be able to provide an update and feasibility on this in a couple of months. We have option of apartments, townhouses or boutique hotel, its just a matter of working out which provides the best outcome.

I believe the stadium should be completed by the end of this year, this will be significant for this area.

Chabs
Our focus is now developing in USA, I have sold all my projects and currently have 5 development sites in Atlanta, will post the numbers when we commence Atlanta, Memorial project shortly (5 townhouses)

BeDeveloper USA