Office Building Flip. $1.575 to $3.0

 

Office Building Flip. $1.575 to $3.0

2437 Morena, San Diego

Purchase-$1.575 million. 12/2012

Sale-$3.0 million. 12/2014

Estimated Improvements- $625k

Estimate Gross Profit- $800k

This is a more ballsy and complicated add value deal b/c there were no comps for the finished product, but for the investing entity, it could have been relatively low risk for several reasons:

1. Instead of a business being a tenant and paying rent, one entity (biz #1) could simply pay rent to another entity (building owner, biz #2). The ownership group of both biz #1 & biz #2 could be the same or at least close enough where all parties benefit.

2. If the property doesn’t sell, rents produced by the property cover most expenses until it does sell.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s