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I swore I'd never buy a strip mall, then I walked a dead one on Federal and changed my mind
Three years ago I told my wife I'd never put money into a strip mall. Vacancy, old roofs, tenants who pay late, no thanks. Then last month a broker buddy dragged me to look at a 1962 center on Federal with 11 units and only 4 occupied. I went in ready to hate it. The guy walked me through the parking lot at 6pm on a Tuesday and I counted 22 cars. Turns out the laundromat and the taqueria were packed, and those two tenants had been there 14 and 9 years. What got me was the numbers. He said the old owner never raised rent past $1.10 a square foot, so everybody was way under market. I ran it that night and the upside on just signing the empty spots at $1.85 penciled out better than anything I've looked at downtown. Now I'm in contract on the thing and my wife thinks I lost my mind. Anybody here ever bought a 60s strip center off Federal or Colfax, and how bad did the roof and the sewer lines bite you?
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ruby_rivera763d ago
Enjoy the roof, sewer, and wife all yelling at you at once.
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