Special, Smaller, Cash Flowing Strip Mall Opp.
Value priced at $715,000, this attractive, unique business opportunity offers the buyer:
• A nearly 6,000 square foot Grand Rapids (MI) neighborhood strip mall • ½ acre of street corner real estate • Easy, ample, paved parking directly in front of the building • Long term leases with three of the four tenants • The fourth space contains an underperforming party store owned by the sellers. The lease can be assumed by the buyer or rented out to a new, arm’s length tenant • There is also a newly and nicely remodeled 800 square foot apartment (included with the strip mall) that is currently occupied by the sellers
The sellers are relocating abroad which results in their including the following party store items (in addition to the real estate) in the $715,000 sale price:
• Carryout wine and beer license • Large cooler ($12,000 value) • Nearly $20,000 (cost basis) of beer, wine and cigarette inventory • Lottery and ATM • All other inventory for resale in the store (at no cost to the buyer), all racks and shelving, point-of-purchase register, electronic surveillance system, etc.
Now, let’s talk numbers. The strip mall (not including sales revenue from the party store) generates over $80,000 of annual rental income, which after insurance and real estate taxes nets nearly $75,000 of rental cash flow. With $75,000 down (buyer cash), a $100,000 seller provided second mortgage, and $540,000 from an SBA first mortgage, total debt (first and second mortgages combined) would require approximately $40,000 of annual debt service. The total debt service ratio ($75,000 of annual revenue/$40,000 of total annual debt payments) is very attractive – nearly a 2:1 ratio.
This is a perfect family business with the family receiving in addition to all the rent, the operating profit from owning and managing the party store along with the benefit of living in an attractive second story apartment in the strip mall. And if you want still more positive information, the party store is the only such establishment within a couple of square mile radius and is within walking distance from (a) hundreds of apartments in a large neighborhood apartment complex, (b) scores of middle class single family homes, and (c) churches and an elementary school.
To learn more about this truly special opportunity, please contact Ryan Johnson ([email protected] or 269-338-9809).