can some one come knock me out?

as I mostly concentrated in residential rentals, never really study much on commercial stuff, after I came across this auction the other day, I can't keep my mind off it, so decide to look into it more.

this city itself, about 50k population, but there are 4 this size city group together, make up as the 2nd biggest city in Indiana. 

The main reason I am interest in the building is, it has a pizza hut, from Google, I can't really tell much, so I decide to drive there, its about 35 miles away, and take a more close look.  This pizza hut is only a carry out one, no sit down options.  its been in same location since 1990, there are total of 3 pizza hut in this town.

I requested a copy of lease from auction company, whom I dealt with before, pizza hut is on its 3rd renew option right now, original rent is 1500, current rent till 11/2014, is $2348, there are 2 more options available for automatic extension, 2014 is 2738, 2016 - 2021, is 3012.

the structure, is somewhat in poor shape, the office next to pizza, was lease to UAW local, then the building owner has the video shop, which actually is a pawn shop, will be closing this month, and the back is a empty warehouse.

this can also be a story of a failure landlord, this is a sheriff sale, at the same time, will auction off another retail building he own across the stree. (pic below)

the location of it is superb, 2 block wast, across the river is the new downtown, many small shops, and city park, and many newer commercial structure, some still under construction.

approaching from west side..

west side..

1 block east of it, has Martin's Supermarket, CVS, starbucks, teacher's credit union, Verizon, bunch of small shops, of course, a chinese buffet.

Approaching from east side..

to the north.. this is one shopping strip...

this is other shopping strip, and chase bank.

所有跟帖： 

• 老大，要不您在這店外貓一天，看看它每天賣多少匹薩。如果它生意好，它應該會續約吧？ -melody2010- ♀ (55 bytes) () 04/17/2012 postreply 17:57:57

• did my $10 pizza already.. -jy101- ♂ (143 bytes) () 04/17/2012 postreply 18:01:41

• 這個地產值210918.79+land。 -sweetptt- ♂ (218 bytes) () 04/17/2012 postreply 19:27:16

• what is the discount rate you used to get this figure? -borisg- ♀ (0 bytes) () 04/17/2012 postreply 19:40:16

• I used 5%. I read the average good commercial property is 5-8% r -sweetptt- ♂ (0 bytes) () 04/17/2012 postreply 19:55:13

• my plan is to risk 150k at most... -jy101- ♂ (0 bytes) () 04/17/2012 postreply 20:24:23

• Even that maybe too much: take out taxes, vacancies, insurance.. -borisg- ♀ (0 bytes) () 04/17/2012 postreply 20:44:06

• agree, this deal is completely base on the pizzahut lease.. -jy101- ♂ (282 bytes) () 04/17/2012 postreply 20:55:27

• location is good -melody2010- ♀ (324 bytes) () 04/17/2012 postreply 18:05:01

• 能否和PIZZA HUT的老板和店員談談呢，要一份收益報告，和未來的打算。 -SunshineInCA- ♀ (299 bytes) () 04/17/2012 postreply 18:34:46

• Average pizza store volume is 1/2m. -borisg- ♀ (257 bytes) () 04/17/2012 postreply 19:09:25

• 這比做地主得利多 -SunshineInCA- ♀ (0 bytes) () 04/17/2012 postreply 19:10:21

• 一般小零售至少需要1/4M才能活。我忘了減2k折舊了。 -borisg- ♀ (0 bytes) () 04/17/2012 postreply 19:13:51

• 中餐外賣隻需要150K就行。 -sweetptt- ♂ (0 bytes) () 04/17/2012 postreply 19:16:23

• should be much lower than 18K. -sweetptt- ♂ (0 bytes) () 04/17/2012 postreply 19:14:51

• 同意，但錢哪去了. 0.5m/y 是行業的統計。 -borisg- ♀ (0 bytes) () 04/17/2012 postreply 19:18:19

• 我認為labor可能得加50%，就是7K。material得加25%，就是2K。rent應該在5-6K，所以頂多3K盈利。 -sweetptt- ♂ (0 bytes) () 04/17/2012 postreply 19:30:35

• 合理，這樣利潤少了快一半 -SunshineInCA- ♀ (0 bytes) () 04/17/2012 postreply 19:48:35

• 這就叫看過來啊看過去，拿得起放不下。嗬嗬。感情問題自己解決。 -sweetptt- ♂ (0 bytes) () 04/17/2012 postreply 19:07:09

• 顯然不是一見鍾情類，需要繼續了解，嗬嗬。 -SunshineInCA- ♀ (0 bytes) () 04/17/2012 postreply 19:35:44

• Business or the building? -美藍海- ♀ (329 bytes) () 04/17/2012 postreply 20:11:05

• building only.. -jy101- ♂ (99 bytes) () 04/17/2012 postreply 20:26:34

• 回複：Go for it -jzc- ♂ (115 bytes) () 04/17/2012 postreply 20:41:30

• the problem is if pizzahut move.. -jy101- ♂ (39 bytes) () 04/17/2012 postreply 20:58:02

• remodel it to apts. -sweetptt- ♂ (0 bytes) () 04/17/2012 postreply 21:02:33

• 美國的中小城市曆史上潮流都是新區一下子興起,整個舊區被淘汰, -梁山sl- ♂ (107 bytes) () 04/17/2012 postreply 20:31:20

• good point.. -jy101- ♂ (0 bytes) () 04/17/2012 postreply 20:41:25

• come on, follow your heart, take some risk, this way you will fe -qiaoshe- ♀ (18 bytes) () 04/17/2012 postreply 20:14:25

• haha, no easy money anymore... -jy101- ♂ (0 bytes) () 04/17/2012 postreply 20:27:06

• Do not buy this building.... -犀利妹妹- ♀ (547 bytes) () 04/17/2012 postreply 23:11:18

• all solid good points.. -jy101- ♂ (376 bytes) () 04/18/2012 postreply 07:24:20

• 回複：can some one come knock me out? -cajungirl- ♀ (302 bytes) () 04/19/2012 postreply 08:24:25