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$1,200,000 / 12800ft2 - SALE OR LEASE - Office, Warehouse Space, Commercial Kitchen (Wasilla)
2301 S Knik-Goose Bay Rd, Wasilla, AK 99654
2301 S Knik-Goose Bay Rd near Edlund
12800ft2
available now
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LEASE OPTIONS:
3 warehouse/office units of approximately 2000 square feet for immediate occupancy.
1 6000 square foot warehouse available June 1.
1 warehouse/office unit of approximately 2000 square feet available July 1.
1 commercial kitchen of approximately 1000 square feet available July 1.
* All rent for the first 12 months will be credited toward the purchase price.
SALE OPTIONS:
We currently have a Buyer under contract. Taking backup offers.
NOTE OPTIONS:
The note is available for purchase.
13,000 square feet of light industrial warehouse space located on KGB road 2 miles from Wasilla city center with frontage on Cottonwood Creek. The 2.5 acre complex is comprised of 3 buildings. A 6000 square foot warehouse has 4 units with mezzanine levels in the warehouse total almost 2000 square feet each. Units rent for approximately $2500 per month. A 2nd 6000 square foot warehouse is a single large unit with ample height to put in a second story for a total of 12,000 rentable square feet. It has leased for $6000 most recently, but would get $9000 after final improvements. The third building is an 800 square foot commercial kitchen which has been renting for $2500 to $3500 per month.
The complex had previously been occupied entirely by Marijuana licensees and was the largest single site of licensees in the state with all units being previously licensed by AMCO. For any successful Marijuana business, this is an ideal location to relocate all your businesses. The commercial kitchen most recently was a very successful manufacturing facility A combination of both limited and unlimited cultivator licensees can be located here with a potential 16,000 square feet of canopy. We have one unit that was built out as a test facility.
In order for the potential buyer to have as much flexibility as possible; the marijuana tenants leases were not renewed so conventional financing is available. So buyers have the ultimate flexibility to owner occupy and lease additional units to offset mortgage costs. Or lease the entire complex which will accommodate 6 tenants with ample opportunity to expand.
Before vacating the property for the new Buyer, the following represents our cash flow and expenses, which values the property at $2,000,000 before any upgrades or expansion. We are offering the property at a price for the real estate investor who wants to maximize profitable from day 1.
First, we are offering a $200,000 allowance for general maintenance, painting and floors, septic system, or anything else the Buyer would like to improve. We are setting the price at $1,200,000 which provides the Buyer positive cash flow from day 1 with very conservative rent rates and expansion or improvements. The 5 individual units will bring in $12,500 with minor renovating and the large warehouse will bring in $9000 for a total of $21,500 gross rent. Net income will be over $6000. Expand the warehouse to include a second floor and you have another $9000 potential monthly income.
CASH FLOW
REVENUE Gross Rents $20,500
OPERATING COSTS T&I $2,500 Refuse $500 Maintenance $1,500 Management $1,000
TOTAL $5,500
NET OPERATING INCOME $180,000 ($15,000 monthly)
CAP RATE 9%
LIST PRICE $2,000,000
ACQUISITION COSTS
Purchase Price $2,000,000
30% Down Payment $600,000
Closing Costs $50,000
TOTAL $650,000
DEBT BURDEN
Financed Amount $1,400,000
Rate 7%
Monthly Debt ~$9,300
Net Income $5,700
Net Annual Income $$68,400
ROI
Acquisition Costs $650,000
Net Income $68,400
ROI 10.5%
* Owner occupied self managed buyers could reduce monthly costs by approximately $1500.
* Cost reduction would increase ROI to 13.29%
FINANCING OPTIONS:
1. Conventional commercial real estate loan at First National Bank Alaska typically is 30% down and around 6% for 20 years.
2. Owner financing options available. Flexible terms. For example, 10% down to lock up the property while you line up financing. Owner financing requires 20% down and a 5 year term, which could include a balloon payment at the end of the term. We could do a lease to purchase where you sub-lease the property and with the majority of your lease payments being credited to your purchase price. Many, many flexible options. We consider all offers.
3. Possible buy-in as a partner co-owner.
4. In the end we can structure a deal where everybody makes money.