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Congratulations to Keith Keltner, CCIM on facilitating the Sale of this 19 Unit Multi-Family Portfolio.
A long time established towing company SOLD in Burbank through our sister company GB Business Brokers. The sale included the business & assets which consisted of multiple buildings and 47 acres of commercial zoned land. Congratulations to our agents, Sam Tecca and Troy Gerspacher representing the seller.
Multi-Family Investment Opportunity in Akron sold in 60 days! 801-805 E Exchange Street is a 2 building, 8-unit, 5,376 sf, multi-tenant investment that sits on .190 acres. Sam Tecca helped the buyer and the seller complete the transaction.
When evaluating an investment property, a quick helpful tool that can be used to assess how well a tenant’s business is performing, is the health ratio.
A health ratio shows the percent of rent that is being paid to the owner verses the tenant’s gross sales.
Simply take the annual rent paid and divide it by the annual gross sales.
For example, if a tenant is paying $100,000 a year in rent and the tenant’s store sales are $1,000,000, the health ratio would be 10%. The ratio is industry specific, below are four different industries and what is considered “healthy”.
Grocery: 1-5%
Restaurants: 6-10%
Fitness: 15-25%
Apparel: 10-15%
Please contact us today if you have any investment questions! We look forward to helping.
When it comes to investing in CRE, buyers look at several factors. Below is a short list of items investors are going to look at:
Length of lease – If all goes as planned, how long should I expect cash flow?
Quality of the tenant – What is the chance of default?
Rent Escalations – Escalations in rent = increase in returns
Location of the building – What happens if/when the current tenant leaves?
These factors all plat into the return. When you are ready to sell or buy a commercial real estate asset, we would welcome the opportunity to discuss your options.
