Post a Great Commercial Deal

Discussion in 'Commercial Property' started by MTR, 18th Mar, 2017.

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  1. MTR

    MTR Well-Known Member

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    We are going to auction, but it is not in Australia, its in Boston, commercial offices that can be turned into condos. If we get it I will post in on PC. Boston is also booming.

    MTR:)
     
    MTR, 28th Mar, 2017
    #41
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  2. Stoffo

    Stoffo Well-Known Member

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    :confused: RUN AWAY :eek:
    Check the Strata proportioning %
    As this all sounds wrong :(
    Surely it is a clerical error o_O
    (I have a similar IP in Syd, $480k, $34k pa lease, strata $4,600pa)
     
    Stoffo, 28th Mar, 2017
    #42
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  3. keroppi

    keroppi Active Member

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    Cheers @MTR. Good luck with the Boston auction. I am guessing you had a good look in Australia but didn't find anything worth considering?

    Anyone else find decent commercial deals in the past 12 months that they don't mind sharing?
     
    keroppi, 28th Mar, 2017
    #43
    MTR likes this.
  4. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Ace in the Hole, 28th Mar, 2017
    #44
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  5. MTR

    MTR Well-Known Member

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    Not in Australia.

    We purchased a commercial block of land in Atlanta, pretty much across road from Mercedes Benz Atlanta stadium (see Ace in Holes Link)

    We have had a couple of feasos come back in, easiest option would be 7 townhouses, however we also have the option of building a boutique hotel, we want to maximise the potential of the land.

    The challenge will be financing the deal if we go boutique hotel, still working on the numbers. Parking criteria will also be the critical part.

    Our commercial deals will be work in progress as we are only looking at projects where we can add value.

    MTR:)
     
    MTR, 28th Mar, 2017
    #45
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  6. Perthguy

    Perthguy Well-Known Member

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    I doubt this deal makes sense but I am posting because it is above your 6.6% benchmark.

    $1,995,000 achieving around $200,000 pa rent, a touch over 10%. Looks like a lot of work to me.

    33 George Street, Gosnells, WA 6110 - Retail for Sale #502031950 - realcommercial.com.au
     
    Perthguy, 29th Mar, 2017
    #46
  7. pwt

    pwt Well-Known Member

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    pwt, 29th Mar, 2017
    #47
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  8. Perthguy

    Perthguy Well-Known Member

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    Show me a deal and I will tell you everything wrong with it ;)
     
    Perthguy, 29th Mar, 2017
    #48
  9. Perthguy

    Perthguy Well-Known Member

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    1. Run down building, lots of maintenance
    2. High crime area, dealing with beak ins
    3. Low socio economic area, higher risk of tenant vacancies
    4. Current over market rent will drop when leases are up for renewal, lowering yields

    I do not know anything about Commercial though so all of my comments could be completely wrong. Just my gut reaction.

    Definitely do your own due diligence.
     
    Perthguy, 29th Mar, 2017
    #49
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  10. 158

    158 Well-Known Member

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    What is the WALE?
    What is the exact income figure today?
    Gross or Net income figure?
    What are the % increases?
    What bonds are held?
    Director Guarantees?

    This is a maggot dressed up as a fly!

    pinkboy
     
    158, 29th Mar, 2017
    #50
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  11. MTR

    MTR Well-Known Member

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    We got it, 3.30 am in the morning, first on line auction in USA... Whoooooooo
     
    Last edited: 31st Mar, 2017
    MTR, 30th Mar, 2017
    #51
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  12. 380

    380 Well-Known Member

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    Here is our latest deal we just secured it.

    We have been looking specifically at commercial for cash flow. In Atlanta average is around 7% these days. We also have a building report with this one and will need to eventually replace the roof, still a gem of a deal

    If these came along everyday we would be jumping in boots and all

    Commercial Property 2 - Atlanta
     
    380, 8th Jun, 2017
    #52
  13. Beano

    Beano Well-Known Member

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    Net return ?
     
    Beano, 9th Jun, 2017
    #53
  14. MTR

    MTR Well-Known Member

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    Yes

    Stopped looking in Australia if we can repeat what we just purchased in Atlanta will continue buying here.
     
    MTR, 9th Jun, 2017
    #54
    Scott No Mates likes this.
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