|Commercial Real Estate Sublets Multiple Locations|
Listing DetailsStatus: Sold
Listing Broker: Jeff Snell, M&AMI, CBI, ABI
Listing Price: $925,000
Gross Revenue: $1,998
Cash Flow: $328,021
FF&E Included: No
Real Estate Included: No
Seller Financing: No
Financing/Terms:Seller will consider an appropriate component of seller financing based upon overall deal structure terms.
Absentee Owner: Yes
Reason for Sale:Retirement/relocation out of market.
OperationsEmployees (full-time): 1
Business Description:Business subleases high quality specialty upfit locations to professionals in the personal services industry with 24x7 access for clients to practice whenever their business needs dictate based upon a 12 month contracts with a 30 day notice. Owner is master lease tenant or location owner providing support services such as vending and signage. One of many renter benefits is that each client controls their own retail sales. This is a commercial real estate opportunity to leverage cash flow from profitable sublease agreements.
Historical Summary:Business has been profitable essentially since formation growing to multiple locations. Upfit alone averages hundreds of thousands of dollars per location. This acquisition represents the opportunity to purchase a business which is extremely cash flow positive from day one for less than replication cost without fulltime responsibilities. Historically all locations run at essentially 100% occupancy.
Owner Qualifications:Owner must be financially qualified with ability to invest approximately 8-20 hours per week based upon interest in personally managing locations (this could be easily outsourced), hire manager for same, or empower key clients to manage each location. Significant potential exists to empower key renters to manage locations with rent reduction or revenue share. Ultimately, this is an absentee ownership opportunity however not currently operated s such.
Competition:In existing market competition within the business model is essentially nil.
Potential Growth:This business is highly successful and profitable operating at high utilization. The model can be expanded geographically with additional locations both locally and nationally. A well financed and entrepreneurial buyer could easily leverage the model to a franchise or licensee model.
Businesses are located in popular and easily accessible retail strip and flex locations. Upfit is first class from a infrastructure and retail design perspective.
Last Updated: Jan 1, 2016 / 1:46 PM
Financial Information Current as of: Jul 23, 2013 / 2:17 PM