7047 commerce in OB (Bill Harrell)

Small 4800 sq ft retail building at corner of Goodman and 78 in Olive Branch. Bill Harrell is agent. He said owners want to sell but he did not have a price. He said rent is about $16.90 per foot with modified gross lease. So if annual rev is about $81,000 and and I take away 10% for vacancy and collection loses, the revenue is about $72,900 per year. Expenses are $25,000 per year (That's only 31% of gross rev but that's what I calculated them to be) then NOI is $72,900 - $25,000 = $47,900. At 9% cap rate, building is worth $532,222.

Desoto County appraisal is $438,182. To get a return (after paying note each month) of around 12.5%, you could offer no more than $425,000. That's with 70% mortgage and 7% mortgage rate.
$425,000 x 70% = $297,500. Note each month is $2674 so annual debt payments are 12 x 2674 = $32,088. Cashflow after debt service is $47,900 - $32,088 = $15,812. If buyer puts in $127,500 (30% of sales price) then return on equity is $15,812/$127,500 = 12.4%

Olive branch property tax rates

To figure property tax on land and buildings in OB, take 15% of appraisal and multiply it times mil rate of 133.2 (combined city, county, and school rate). So if appraisal is $438,182 then assessment is $65,727.30 and tax is $65,727.30 x 133.2 x .001 = $8,754.87.

Go to tax calculator at www.desotoms.info

6555 quince building bought by in-rel

Memphis Business Journal had story about in-rel buying old comcast building at Kirby and Quince for $5 million. It is 5 stories and 112,679 sq ft so price was $44.37 per foot. website is in-rel.com.

If building is 112,679 sq ft total with halls and lobby and elevators and public restrooms, I estimate that 80% is leasable space which is 112,679 x .8 = 90,143 sq ft. If rent is $15 per foot (guess), then possible gross rev is 15 x 90,143 = $1,352,145 per year. If you figure 8% vacancy and collection loss, then rev goes to 92% x 1,352,145 which is about $1,244,000 per year. If expenses are 40% of gross, then that's $541,000 and NOI is 1,244,000 miuns $541,000 = $703,000. At 9% cap rate, buildingis worth about $7,811,000.

Nut article in MBJ said building was only 45% leased and using those numbers then value is less. Gross rev is 90,143 sq ft x $15 per foot x 45% occupied = $608,500. If expenses are 40% or $244,000 then NOI is $364,500 and value at 9% cap is $4,050,000. In-rel paid $5 million so they obviously think they can gt occupancy up.....

10580 Highway 178

Industrial building for sale by Jim Brown. Looks like old house got added on to. 7,000 sq ft and price is $495,000 which is $70.71 per foot. This is somewhat near Hack Cross road. 2 acres of land. 2,200 sq ft of the 7,000 is office space.


www.brownproperties.info

10780 Highway 178

2700 sq ft Industrial building for sale. I talked to agent Shelly Bookwalter (Century 21) today and she said that Rokmasterz owns the building and occupies it. They apparently lease part of it to a cleaning company. Price is $249,900 which is $92.55 per foot. There is a storage building in the back. Shelly said you could lease the building for $3400 per month but that's a joke. I say more like $10 per foot (that's generous) which is $2250 per month. At 2250 per month the value is $2250 x 12 months = $27,000 revenue. Less $10,800 (40% ) expenses = $16,200. At 9% cap rate value is $180,000.

Collierville Mini Storage

This mini storage is on Mt Pleasant near Shamrock Business Center and is managed by Michael Haugh. I stopped in on 1-dec-09 and got a price list.