cjmazur
2007-02-26 21:03
On evaluating a ground lease deal.
I have found a lot that I can buy fee simple for $1,148,000 (25,265’)
According to the broker, Starbucks will ground lease it for 7000/month NNN.
It was suggested that it would go at a 6 cap (seems cheap) yielding a sale price of 1400000
After 18-24 months of development time, 252000 in profit seems tight given the closing and carrying costs and 30K in demo fees
Am I missing any major factors or variables?