Might Be Nuts If I Don't Buy This

[thomascreation]

So I've been on and off looking for a building to work out of for the last few years. I own rentals so renting is out the door. Quick background, I teach at a college in the automotive department. Mainly engine performance, dyno tuning and engine machining. I need a place to spread out and my 20x20 hasn't allowed me the opportunity to do much on my own time. I found this building in town, it's one of several that a failed furniture company is dumping. The roof leaks on one part, a few windows are broken and its practically hollow except for a few offices, lights and furnaces. It has a basement garage and the main floor is concrete on one side. The other side is a wood floor which I think I can remove to increase the ceiling height for the "Shop". They want $30k I offered $5k and they countered at $7k. Taxes are cheap, my insurance broker gave me a cheap quote. Comps in the area are $75-100k. What am I not thinking of? I'll get some inside pics this weekend when I go for another look.

 

[Wood'nMetal]

Wow! Looks great and what buy! No underground tanks, haz mat or asbestos abatement you might get stuck for? Any foreseeable problems with city zoning?

 

[thomascreation]

Thanks! I'm going to look into asbestos. Don't think it has tanks but I'll ask. It's zoned C-1 already and if I keep a low profile I can do just about anything I want. The city has their head in their arss with the budget cuts and what not. I do live in Illinois after all.

 

[jabberwoki]

Sounds good as long as it`s a sound building.

 

[machine_punk]

looks like a neat building to put a shop in. I'm looking forward to inside pics.

Kev

 

[rburke65]

I know everyone has a different economic background, but the worst that can happen is that you would loose $7k. They aren't going to put you in jail if it all turns to ****. I know my wife would have a 'red headed squealing worm', but I'd go for it. How many square feet are there? good luck.

 

[mark52621]

It looks great, Just make sure that leaky roof didn't cause other problems.

 

[thomascreation]

I know everyone has a different economic background, but the worst that can happen is that you would loose $7k. They aren't going to put you in jail if it all turns to ****. I know my wife would have a 'red headed squealing worm', but I'd go for it. How many square feet are there? good luck.

That's why I love my wife. When the offer came back she said " you know you're going to buy it just do it so I ave a place to store my furniture" She restores old furniture. And for $7k while I wouldn't toss it out the window for the hell of it I wouldn't be hurt if I lost it on a bad deal. I'll be on the roof for the inspection. Half of it is new in the last few years.

 

[zkling]

That building looks like it has been a few things over it's life. I see patched man doors, possibly garage doors, and a few other misc holes.

Couple things to keep in mind.
-In coming utilities up to snuff?
-Structurally sound?
-Mold or other health issues?
-Location safe? With neighboring $75k-100k buildings I guess it can't be too bad, but maybe something to look into.

Basically anything that is going to be a money pit to fix up.

I hope it works out well for you. 7K to own a structurally sound, industrially zoned building isn't much. IMHO.

They want $30k I offered $5k and they countered at $7k.

Awesome.

 

[thomascreation]

The location is a half mile south of the "warehouse" district, an area that has had a bad run for several decades but in the last few years there has been a lot of growth with restaurants, lofts, art galleries ect. Overall not a bad location. Power into the building is 3 phase and on breakers. The old part (tall) is not great and needs some tuck point work but not falling down either. The rest of the building has been added on over the years. Not to old and its fine.

 

[toomanytoyzz]

If your plans are to have a side gig wrenching especially dyno work that $7k will pay itself off in no time. Are the utilities reasonable in the area? What kind of heat does it have? These are also things that can be across the board from one area to another.

 

[nicksnothereman]

So I've been on and off looking for a building to work out of for the last few years. I own rentals so renting is out the door. Quick background, I teach at a college in the automotive department. Mainly engine performance, dyno tuning and engine machining. I need a place to spread out and my 20x20 hasn't allowed me the opportunity to do much on my own time. I found this building in town, it's one of several that a failed furniture company is dumping. The roof leaks on one part, a few windows are broken and its practically hollow except for a few offices, lights and furnaces. It has a basement garage and the main floor is concrete on one side. The other side is a wood floor which I think I can remove to increase the ceiling height for the "Shop". They want $30k I offered $5k and they countered at $7k. Taxes are cheap, my insurance broker gave me a cheap quote. Comps in the area are $75-100k. What am I not thinking of? I'll get some inside pics this weekend when I go for another look.

Get it inspected. That's an insane counter-offer. "Oh yeah we wanted 30k but now we're happy with 7k!" I'm paranoid though.

 

[thomascreation]

I agree. The guys that own it are in California and the city is on them to clean it up. Paint mainly. They also own 4 other buildings that are also vacant and commercial real estate inst moving fast.

 

[jwh]

I'd get that leaky roof checked for asbestos....that could be a real pain. I had to take down a 20'x20' garage, had to be checked for asbestos, they found asbestos in the window mastic (2 windows) and the roof, Was a mildly sloping flat roof with roll roofing, mastic between the sheets had asbestos in it. One morning, 3 guys, 1 dumpster, and $1500.00 later the asbestos was gone.

Yeah, I know, but asbestos had to be checked to get a demolition permit.

 

[zkling]

Get it inspected. That's an insane counter-offer. "Oh yeah we wanted 30k but now we're happy with 7k!" I'm paranoid though.

It may have been sitting for a while without any interest, so when the OP showed some interest they were willing to get rid of it.

 

[Scott H in Wheaton]

What part of Illinois?

 

[sxk122]

What part of Illinois?

I wondered if it was in Illinois too. seems that real estate is super cheap there.

30k won't get you an empty lot here in dallas in the ghetto, let alone a decent building!

 

[Fyrme]

So I've been on and off looking for a building to work out of for the last few years. I own rentals so renting is out the door. Quick background, I teach at a college in the automotive department. Mainly engine performance, dyno tuning and engine machining. I need a place to spread out and my 20x20 hasn't allowed me the opportunity to do much on my own time. I found this building in town, it's one of several that a failed furniture company is dumping. The roof leaks on one part, a few windows are broken and its practically hollow except for a few offices, lights and furnaces. It has a basement garage and the main floor is concrete on one side. The other side is a wood floor which I think I can remove to increase the ceiling height for the "Shop". They want $30k I offered $5k and they countered at $7k. Taxes are cheap, my insurance broker gave me a cheap quote. Comps in the area are $75-100k. What am I not thinking of? I'll get some inside pics this weekend when I go for another look.

From $30k to $7k I'd be a little paranoid. They are way to willing to dump that building. I know they have had at least one offer in the past, I couldn't imagine it being lower than $7k. That building on a arterial street in my little Rural town of 17K people would sell over night for $125K. I almost bought the original towns hospital a few years back for $100k which was priced way below value because the city had so many historical restrictions on it. The out of state seller had to attract buyers. It was just a windowless, doorless, gutted 4000sq ft shell. I passed on it and someone came in right behind me and grabbed it. The 30x50 Morton metal building former car lot across the street from the the hospital sold for $120k. I'd be on that building like a rat on a Cheeto for $7k

All that to say, be wary, be smart, and do your home work. If everything looks good, fix it up. Work out of it for a couple years and quadruple your investment when You decide to sell it. Occupied buildings are sometimes more valuable to buyers since they don't have to "imagine" someone working out of it.

 

[HoosierMark]

Accept the counter offer subject to inspections for whatever you want. But get the building under contract. Allow yourself reasonable time to get the satisfaction you want. This will give control and a way out if it has issues.
Also think about the building in reverse. Will you be able to set it up the way you want it for $X. The purchase price is so low it is not an issue but the cost to change the building to meet your needs may be high. Will the final cost be more then you want to put in. But get it tied up while you do your due dilligence before someone else slips in and buys it. Or you can do like I have done too many times, think about, wait until it is gone and then kick myself because I did not act quickly.

 

[thomascreation]

What part of Illinois?

Peoria, Cat land.

 

[thomascreation]

I'd get that leaky roof checked for asbestos....that could be a real pain.

Chances are you're correct on this given the age. Something to consider I hadent thought of. Thanks

 

[shepherd]

Would not even think twice at that price. Start a small business to make anyinterest tax deductible, along with improvements, and you're laughing.

 

[Steevo]

If the surrounding area is experiencing a resurgence with restaurants, galleries and lofts and such, you probably can't lose on the investment. That is generally the tipping point between declining values and a rebirth of a district.

Good luck.

 

[theoldwizard1]

Sounds good as long as it`s a sound building.

ABSOLUTELY !

You need to spend some money to get a structural engineer in and assess the health of the building.

A leaky roof could have structurally ruined the floors and walls.

 

[Steve from Socal]

I would do a couple of things that will cost some money but, well worth the price IF things go bad. Get a phase 1 environmental done; it could be a super fund site, have a mason inspect the structure for integrity.

I bought a 47K sq ft building for cheap, I had to demo a 6K wing because the roof damage cracked the walls in the corners(brick construction). The outrageous price on these old building is a great start, remember though repairs cost the same as any commercial building.

Steve

 

[sberry]

The owners know this. Taxes are costing them and anything to do with it is going to be intensive and expensive. They are already in the hole. I can see it going cheap.

These are a money pit though. They are for someone with a good set of general contractor skills and some money that can not be missed for a while, in materials about the cost of a new pickup truck that would be depreciated, in the grand scheme of things not a lot but it needs to be level, raintight, separate work areas, insulation, floor repair, additional electric

 

[sberry]

Come to think about it have never really seen one of these where it didn't break. There is a building I would like in town but the size make it a problem as well as an asset. Even thou8gh you can buy it fopr 10 cents on the dollar what it cost to build the owners are out of tow3n and willing to take a rent check of 2500 a month, still cant buy it for that, the rent is so cheap. I see guys running biz out of commercial rentals while they are up for sale, one in the oil field game and rent so cheap its hard to pay the taxes for it.

Buying would cost 3x as much each month, wouldn't even break even in 20 yrs and still have to deal with the building.

 

[nolimits76]

For $7k you can't go wrong. Pull the trigger before they change their mind.

If everything goes wrong, pretty sure you can scrap the building and cover your costs. Or temporarily do your projects and wait for the area to build up in 10, 20 or 30 years and then sell out for a hefty profit.

 

[dbonne]

I foresee a resto thread on the horizon!

 

[NUTTSGT]

Make sure to check the back taxes and make sure you're not on the hook for them.

 

[INXS]

Look back at what previous businesses have been there. Former dry cleaning locations can be potentially contaminated sites.

 

[_Dock_]

Make sure you can occupy it. And definitely do a title search. If you cant occupy it then you're buying a lot with a giant building in the way....

 

[Jere]

My guess is they don't see too many businesses looking for places like this in an economic downturn. It is pretty common for commercial properties to go very cheap right now. That's part of why the residential lofts started happening, cheap commercial property. ****** it up if you have a use for it and the inspection goes well.

I would like to also suggest some glass bricks might be a worthy replacement for the broken plate glass.

 

[Dave in Mass]

My guess is they don't see too many businesses looking for places like this in an economic downturn. It is pretty common for commercial properties to go very cheap right now. That's part of why the residential lofts started happening, cheap commercial property. ****** it up if you have a use for it and the inspection goes well.

I would like to also suggest some glass bricks might be a worthy replacement for the broken plate glass.

This one always killed me and my buddies. Would have been great to pick it up as a playhouse but unlike the OPs building, I dont think the taxes were cheap...

COMPANY NEWS; Wang Headquarters Auctioned for $525,000
Published: February 17, 1994
Sign In to E-Mail

Print

The sprawling corporate headquarters complex of Wang Laboratories Inc. in Lowell, built at a cost of $50 million to $60 million, was sold at auction on Tuesday for $525,000.

An accountant, Louis Pellegrine, submitted the winning bid for the property, which includes three 12-story towers, two lower buildings, an auditorium that seats 500, two cafeterias, dining rooms and a parking lot with spaces for 600 cars. The headquarters complex, built in stages since 1980, is on 15 acres in Lowell, about 25 miles northwest of Boston.

The price reflects how much Wang's and Lowell's fortunes have changed since the 1980's, when the company was credited with reinvigorating the depressed mill town. In 1988, Wang had sales of $3 billion and employed more than 31,000 workers. Wang, which emerged from Chapter 11 bankruptcy protection in September, now employs 6,000. The company has shifted from manufacturing hardware to making software and providing services and has reported profits in its last two quarters.

 

[nolimits76]

Before doing bridges, I was in commercial construction.

Woah!!! That is mind blowing. Hard to fathom letting it go that cheap. I would have demo'd it and scrapped it for more. Obviously 2 different mind sets.

This one always killed me and my buddies. Would have been great to pick it up as a playhouse but unlike the OPs building, I dont think the taxes were cheap...

COMPANY NEWS; Wang Headquarters Auctioned for $525,000
Published: February 17, 1994
Sign In to E-Mail

Print

The sprawling corporate headquarters complex of Wang Laboratories Inc. in Lowell, built at a cost of $50 million to $60 million, was sold at auction on Tuesday for $525,000.

An accountant, Louis Pellegrine, submitted the winning bid for the property, which includes three 12-story towers, two lower buildings, an auditorium that seats 500, two cafeterias, dining rooms and a parking lot with spaces for 600 cars. The headquarters complex, built in stages since 1980, is on 15 acres in Lowell, about 25 miles northwest of Boston.

The price reflects how much Wang's and Lowell's fortunes have changed since the 1980's, when the company was credited with reinvigorating the depressed mill town. In 1988, Wang had sales of $3 billion and employed more than 31,000 workers. Wang, which emerged from Chapter 11 bankruptcy protection in September, now employs 6,000. The company has shifted from manufacturing hardware to making software and providing services and has reported profits in its last two quarters.

 

[dmeadow]

Them getting rid of it because the city wants them to "do a few things" is something of a red flag.

Be sure you know what the city has cited them for-- it may be more than just paint. If the city has some structural concerns, etc., you could become liable for a lot of repairs that exceed the value of the building. I expect the land would be worth at least what you're paying, but you'd have to demo the building first, which could be very costly.

 

[slickgt1]

check that there are no violations, no past due taxes, title search. Spend a bit for an inspector, if you can't do it yourself.

Space like that would be north of a million in NYC. Even condemned. I would buy that for $7k in a second. ****, my watch is worth more than that. Seriously that is so cheap it is mind boggling.

 

[theoldwizard1]

Make sure you can occupy it. And definitely do a title search. If you cant occupy it then you're buying a lot with a giant building in the way....

If the roof is leaking, it is not likely OP can occupy it.

I looked a a commercial warehouse a couple of years ago. t was up for sale by the county for failure to pay taxes (This takes 3 years in MI). I called the city to check if there any "other" city charges pending. They let me know in know, in no uncertain terms that I could not occupy the property until it passed a structural, electrical, plumbing and heating inspection, at m expense, and that I could be subject to fines if not corrected within 90 days !

 

[58Yeoman]

I've been by that place more than once. I even tried to buy some furniture from the main store across the street, after they'd been going out of business for over 2 years. IIRC, didn't the state finally tell them to close down after saying that they were going out of business for over 2 years?

If that warehouse district rejuvenation keeps heading your way, even the lot would be a good thing to have. Good luck, and keep us informed. Would love to see the inside. I'd also like to see the inside of some of the buildings no longer in use closer to the WH district. Just like old buildings, I guess.

 

[polexican23]

Wait, you say they wanted 30K, you offered 5K, they countered for 7K and you dont know what to do?

First had they accepted your offer of 5k, you would have had a building. You knew full well going in with that offer that they would counter (hopefully) and you would have to come up in price. You were ready to negotiate. It is 2k more that your offer.

A wise business man wouldnt be asking abunch of forum junkies on what to do. I think you are just trying to rub it in our faces that you are getting a huge building for pennies.