Office/Retail Complex

Location: Gold Beach, OR

Company Website:

For Sale Website: http://www.businessbroker.net/business-for-sale/office-retail-complex-not-disclosed-oregon/245992.aspx

Description:

The property under consideration is located in Gold Beach, Oregon and is positioned on a riverfront. The described property has 3 residential and 3 commercial rental units. The asking price of the property is $599,000. 

For the purpose of determining the viability of investment, a thorough analysis was performed on the potential investment property. Data was collected from various sources to compute the numbers in the analysis. The analysis was carried over a ten year span with expected major remodeling required at the ten year mark. A projected income statement, balance sheet, free cash flows, internal rate of return and weighted average cost of capital were computed using the following assumptions: 

  • Purchase price of property $549,000 (after negotiation)
  • Average residential rent per square foot $0.94
  • Average commercial rent per square foot $1.54
  • 20% equity 80% debt
  • 7% interest rate on 30 year mortgage
  • Building and property values to appreciate/depreciate independently
  • Other assumptions made, details on spreadsheet

In conclusion, our analysis proved that the potential investment property would be a sound investment given the assumptions used. Based upon the analysis, the property is a viable investment up to a price of about $992,469.99.

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