Two buildings next to each other rented to the same tenant. Great tenant. Lease rate is currently $10 per sqft and goes up to $11.25 in mid 2019. Landlord and tenant have done a lot of improvements to property and it is expected that tenant will stay in property long term. Current lease was signed in June 2018 and expires in May 2020. Tenant does have first right of refusal to purchase. Net Income today is $47,785 and after increase bumps to $54,504. Fair market rent is closer to $12.50-$13.50 per sqft. Current lease is a modified gross with landlord being responsible for HVAC and roof both of which are in great condition. There is an assumable first mortgage on property but the loan has a short amortization term. Currently a 7.96% cap rate but with rent increase it bumps to over a 9.0% cap rate in 2019.
Parking: 3.7 spaces per 1,000 sq. ft.
Asking Price: $600,000
Building Size: 5,400 SQ FT
Lot Size: 2614
Cost per Square Foot: $111.11