BigBizThinking
02-27-2009, 01:14 AM
I look at a lot of stores for sale, but this is my new all-time favorite listing, shown verbatim but edited for space as follows:
Brand New Coin Laundry
Los Angeles, California
Asking: $1,385,000
Gross: $560,000
Cash Flow: $200,000
Store size 3,000 SF. Rent is $9,730+2,800 and lease is 10+10+5+5. All equipments are new, only 3 months old.
My comments:
Like the 30 year lease, not such a big fan of the $50/sf annual rent (note that a 4% bump in lease year 2 results in an increase of $500/month).
Very impressed that a 90 day old store is doing $47,000 month in gross revenue, especially in only 3,000 sf! Although I do think they should raise their prices, since the operating margin isn't that good, even after considering their rent is $12.5k a month.
As for the asking price, just to confirm to our friends who don't live in California or the Northeast, no, that does not include the real estate.
And to all the first-timers reading this, please conduct your due diligence. This very listing may be a great store, even one worth buying, but not as described or as priced.
Post your favorite current or recent listing in your area in response!
Brand New Coin Laundry
Los Angeles, California
Asking: $1,385,000
Gross: $560,000
Cash Flow: $200,000
Store size 3,000 SF. Rent is $9,730+2,800 and lease is 10+10+5+5. All equipments are new, only 3 months old.
My comments:
Like the 30 year lease, not such a big fan of the $50/sf annual rent (note that a 4% bump in lease year 2 results in an increase of $500/month).
Very impressed that a 90 day old store is doing $47,000 month in gross revenue, especially in only 3,000 sf! Although I do think they should raise their prices, since the operating margin isn't that good, even after considering their rent is $12.5k a month.
As for the asking price, just to confirm to our friends who don't live in California or the Northeast, no, that does not include the real estate.
And to all the first-timers reading this, please conduct your due diligence. This very listing may be a great store, even one worth buying, but not as described or as priced.
Post your favorite current or recent listing in your area in response!