After 2+ years looking...

[Klammer]

Finally, after searching for about 2 years I found this:




The front building (brown one) is 2800 sq ft with a nice workshop area (about 1200 sq ft) in back and office/retail space in front that I can rent out to cover some of the purchase price (or use for future business myself). The rear building is 6,000 sq ft, has 15’ overhead doors on each end, and about 2/3 of the length on each side has a 2nd level/mezzanine for additional storage. It is only 1 block off one of the major roads in town, so there’s easy access to it. And when I timed how long it took to get there it was only 7 minutes from home.

Initially I only wanted to purchase the front building because it was already a bit over what I wanted to spend but I figured with some rental income I could cover it without forcing the family to survive on ramen noodles. My first offer was on the front building with an option to buy the rear building in a year but the current owners only seemed to want to negotiate on price for offers that included both buildings right now. Well, I have a hard time passing up on a deal, so I kept negotiating and we agreed on a price. I closed Friday and spent the last few days moving some tools and equipment in. I'll post more pics once I'm able to get it organized a bit.

 

[merlinpro]

That looks great!

Hope you enjoy your new purchase!

 

[Charles (in GA)]

Un attended building, get a good alarm system.

Charles

 

[Jack Olsen]

Looks like a nice building. What are you going to use it for?

 

[Klammer]

Un attended building, get a good alarm system.

Charles

I plan to do that.

Looks like a nice building. What are you going to use it for?

That's funny that you should ask that - here's a pic from tonight when I stopped by with one of the projects I will be working on



BTW - as with most people who have been on the site, I've really enjoyed your garage. If I didn't have 3 cars and WI winters to deal with, I probably would have tried to go that route since my house has a 2 car garage with no options to add on.

That looks great!

Hope you enjoy your new purchase!

Thank you.

 

[toytech40]

Looks great and good rental income possibility to offset expenses!!!!
Enjoy!!

 

[BPJOOP93]

Nice purchase. i understand that you probably dont want to give the location, but where abouts are you?

 

[TheGunCollector]

As a commercial property owner myself, I think you made a smart decision buying commercial. Just from a tax standpoint you're ahead of the game. If you get a tenant in there, they'll "buy" the place for you.

 

[SuperSocket]

Just a quick google-fu and I found the place (hint, it's not their current address nor is it their old address (look more south).


Anyways, you should put some fencing around the back... would not want people to be able to cut through around the back and see what they shouldn't (what they can't see they cant steal).


I too plan on making a commercial investment, but no space for power or automotive toys.

 

[Klammer]

Looks great and good rental income possibility to offset expenses!!!!
Enjoy!!

Thank you. That was one of the selling points, for me.

Nice purchase. i understand that you probably dont want to give the location, but where abouts are you?

I live in Eau Claire

As a commercial property owner myself, I think you made a smart decision buying commercial. Just from a tax standpoint you're ahead of the game. If you get a tenant in there, they'll "buy" the place for you.

I like the tax benefits, rental income, and I think it makes more sense as an investment than building on my homesite. That would have been more convenient, but wasn't an option for me.

Just a quick google-fu and I found the place (hint, it's not their current address nor is it their old address (look more south).


Anyways, you should put some fencing around the back... would not want people to be able to cut through around the back and see what they shouldn't (what they can't see they cant steal).


I too plan on making a commercial investment, but no space for power or automotive toys.

I'll hold off with the fence. The space I think you're looking at is currently used as an alley (even though it technically isn't). Garbage pickup is done through there and I use it when I'm coming/going. There is only one window on the back of the building, so I'll cover that to reduce exposure. I'm sure I'll change my tune after my first insurance claim

 

[428]

I've found a few that the building owners that run their own business out of it want to sell the building and lease it back. Guess they need to capital to keep the business going.
Since I'm a few years out of actually moving into a commercial building I'm considering something like that.

 

[Jack Olsen]

Nice 911. Good work.

 

[bazzateer]

Looks like a great space you've got there.

 

[justanengineer]

Nice building, but I seriously hope commercial property taxes there make it worthwhile. I know some areas where the local government plays interesting games with taxes. Some lower property taxes during recessions pretty drastically to make buyers think the taxes are low, or simply raise them again because of a "reappraisal" after a property is bought. In the Northeast commercial taxes are ridiculous, which is the primary reason why commercial properties sell so cheaply in many areas. I was looking at old gas stations pretty seriously a few years ago, but the taxes simply werent worth the lower price over 20 years. If it was me, given the state of the economy I would not bank on the possibility of having someone rent a commercial space in order to make any money, but thats just me. I play it safe and always come out ahead.

 

[JSBriggs]

Hmmm, what to do with all that space....

Im sure you'll figure it out.

-Jeff

 

[kbs2244]

Justanenginner has the handle on a deal like this.
Do the dollar homework!
[No need for politics in this thread.]

 

[egdede]

[No need for politics in this thread.]

What???

 

[santagary]

Justanenginner has the handle on a deal like this.
Do the dollar homework!
[No need for politics in this thread.]

Also, what are the utilities on two huge spaces like that. I can't imagine in Wisconsin what the heating bill must be.

 

[Shadowdog500]

Easy to find online by googling the name on the building. Nice location! and I dont see where you would put a fence.
Mayby you can get a good price on a Kirby from your neighbors.

Chris

 

[Klammer]

Nice building, but I seriously hope commercial property taxes there make it worthwhile. I know some areas where the local government plays interesting games with taxes. Some lower property taxes during recessions pretty drastically to make buyers think the taxes are low, or simply raise them again because of a "reappraisal" after a property is bought. In the Northeast commercial taxes are ridiculous, which is the primary reason why commercial properties sell so cheaply in many areas. I was looking at old gas stations pretty seriously a few years ago, but the taxes simply werent worth the lower price over 20 years. If it was me, given the state of the economy I would not bank on the possibility of having someone rent a commercial space in order to make any money, but thats just me. I play it safe and always come out ahead.

I don't think I would ever say that the taxes were reasonable even if they were, but they've been pretty stable so no games have been played. I also paid less than 60% of the current "fair market value" for the property so I'm hoping to have the taxes lowered some (I know, easier said than done). I also didn't go into this specifically to make money. I was looking for a shop to work on some hobbies and I happened to find one that had some income possibilities. When some space gets rented out it will help cover expenses. As I've been looking at the property I have also started getting some ideas for my own business(es) I could run out of the space. I've been looking for a shop for over 2 years. I've been lurking on this board for much of that time and researched a lot of related topics and learned a lot from everyone here. This site and everyone on it has been great! I am willing to take a fair amount of risk, but I'm usually good at making sure it is a calculated risk. I appreciate your input. It helps me be objective and can be really helpful to someone else who may be thinking of doing something similar.

Also, what are the utilities on two huge spaces like that. I can't imagine in Wisconsin what the heating bill must be.

There is no heat in the storage shed and not all of the other building is heated, so its not terrible. There is a wood stove to help, but I'm not sure if I'll use that - I would have to check with my insurance agent, first. It has insulation, but it should be insulated better. Trying to heat all of both buildings would be scary

 

[TheGunCollector]

Nice building, but I seriously hope commercial property taxes there make it worthwhile. I know some areas where the local government plays interesting games with taxes. Some lower property taxes during recessions pretty drastically to make buyers think the taxes are low, or simply raise them again because of a "reappraisal" after a property is bought. In the Northeast commercial taxes are ridiculous, which is the primary reason why commercial properties sell so cheaply in many areas. I was looking at old gas stations pretty seriously a few years ago, but the taxes simply werent worth the lower price over 20 years. If it was me, given the state of the economy I would not bank on the possibility of having someone rent a commercial space in order to make any money, but thats just me. I play it safe and always come out ahead.

That's the way it is here in Colorado. The property taxes on my house(built in 2000 - 1900sq/ft) are only $700/yr.

The propery taxes on my strip center are about $22,000. It's fine though as the tenants pay tHat, and pass it onto the customers.

 

[MyKingdom]

Nice purchase. i understand that you probably dont want to give the location, but where abouts are you?

Well he better... otherwise.. How are customers going to get there ?