Laundromat Resource › Forums › Commercial Real Estate › Commercial Property W/Laundromat Inside & Addtl. Tenants › Reply To: Commercial Property W/Laundromat Inside & Addtl. Tenants

April 4, 2022 at 5:02 pm #15373
Dan Wood
Participant

    I have a similar opportunity to Mitch’s. But this is a completely stand-alone building with laundry and handful of storage units as the only tenant. Here is an attempt to break apart the business and building.

    List price of the building with businesses is ~10 cap. 35k net. 350k asking.

    Gross = 45k
    Expenses = 10k
    Rent is unknown since the building is owned (assumed 25% of gross) = 11k
    NOI = 24k
    @ 3x valuation = 72k business valuation.

    This means the asking price for the building is 275k (350k asking – 75k business valuation).
    If rent is 11k a year on 275k building with ~5k in property taxes, that is a 2 cap BEFORE any other expenses.

    This asking price seems way too high. Am I missing something?