How to sell my Aunts shopping plaza?

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CodeMaster
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Joined: Sun Mar 18, 2007 3:03 pm

How to sell my Aunts shopping plaza?

Post by CodeMaster » Sat Nov 16, 2019 12:33 pm

So I know how to sell a home, I can also easily research it by googling or reading books. But my Aunt owns a shopping plaza, you know one of those small 7/11 type where drive in small parking lot, park... and theres a liquor store, subway, etc... she owns a small one in Kansas City for a long time and rents to stores who want to setup shop there.

She owns the liquor store herself and also the shopping plaza land and building. She is interested in selling seperately both the liquor store and entire shopping plaza.

I was wondering if anyone had advice on best way to sell this? I cant find any help googling or via books on this kind of property. Is it called a "commercial property"?

Truly appreciate any tips! :sharebeer :beer
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FoolStreet
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Re: How to sell my Aunts shopping plaza?

Post by FoolStreet » Sat Nov 16, 2019 12:46 pm

Presumably, find a commercial real estate broker in the area. I am sure many would want to buy directly to negotiate out the middle man. We have bought similar shopping plazas and have used commercial brokers to purchase. If an investor were to discuss with your aunt, they would probably want to sign an option contract at some price point, upon which they could then begin due diligence, like checking for maintenance issues, tax liens, market rent rates and reviewing “the books.” Then, they would come back to your aunt and say, here are the issues, I will pay you less for the property because of the issues. Your aunt knows about the issues so she will just want to “b done with it” and accept the offer. Meanwhile, because sh took the option contract with the investor directly, she can’t list it and can’t get real competing offers. My statements aren’t about anyone personally but human nature.

J295
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Re: How to sell my Aunts shopping plaza?

Post by J295 » Sat Nov 16, 2019 12:48 pm

Hire a competent broker

ARoseByAnyOtherName
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Re: How to sell my Aunts shopping plaza?

Post by ARoseByAnyOtherName » Sat Nov 16, 2019 1:01 pm

Ask around, and do some research, and find a good commercial real estate broker to help you sell the plaza.

Not sure about the liquor business itself.

Topic Author
CodeMaster
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Re: How to sell my Aunts shopping plaza?

Post by CodeMaster » Sat Nov 16, 2019 1:13 pm

FoolStreet wrote:
Sat Nov 16, 2019 12:46 pm
Presumably, find a commercial real estate broker in the area. I am sure many would want to buy directly to negotiate out the middle man. We have bought similar shopping plazas and have used commercial brokers to purchase. If an investor were to discuss with your aunt, they would probably want to sign an option contract at some price point, upon which they could then begin due diligence, like checking for maintenance issues, tax liens, market rent rates and reviewing “the books.” Then, they would come back to your aunt and say, here are the issues, I will pay you less for the property because of the issues. Your aunt knows about the issues so she will just want to “b done with it” and accept the offer. Meanwhile, because sh took the option contract with the investor directly, she can’t list it and can’t get real competing offers. My statements aren’t about anyone personally but human nature.
Very fascinating... so how did you find investors or how do you generally advertise to seek them?
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JoeRetire
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Re: How to sell my Aunts shopping plaza?

Post by JoeRetire » Sat Nov 16, 2019 1:18 pm

CodeMaster wrote:
Sat Nov 16, 2019 12:33 pm
I was wondering if anyone had advice on best way to sell this?
In general, when you don't have the expertise to handle a task yourself, hire a professional to do it for you.

In this case hire a commercial real estate broker.
Don't be a lemming.

stan1
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Re: How to sell my Aunts shopping plaza?

Post by stan1 » Sat Nov 16, 2019 2:06 pm

It is possible someone who would be interested in the liquor store would also be interested in the real estate, and vice versa. You might try to talk to the commercial real estate broker about that option. That might not get the best price but it may get a faster total outcome if your aunt really does want out of these businesses.

GibsonL6s
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Re: How to sell my Aunts shopping plaza?

Post by GibsonL6s » Sat Nov 16, 2019 2:23 pm

I would seek out 3 commercial real estate brokers and ask for broker opinions of value. They should prepare these and pitch the listing for free. There are several online sites like loopnet where you can search for similar properties and see who is active. Regarding the liquor store I would suggest finding a business opportunity broker. In many states both will hold the same license but obviously are specialties. Note since you one the property you may need to write a lease for the new owner of the liquor store as your relative may not have put a lease in place

Happy to help over pm. Good luck

Topic Author
CodeMaster
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Re: How to sell my Aunts shopping plaza?

Post by CodeMaster » Sat Nov 16, 2019 2:38 pm

So whats best way to seek a commercial real estate broker? Any tips and tricks or just yelp it? lol
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7eight9
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Re: How to sell my Aunts shopping plaza?

Post by 7eight9 » Sat Nov 16, 2019 3:08 pm

CodeMaster wrote:
Sat Nov 16, 2019 2:38 pm
So whats best way to seek a commercial real estate broker? Any tips and tricks or just yelp it? lol
There are some names that you no doubt will recognize in this space:

CBRE
Cushman & Wakefield
Marcus & Millichap
Etc.

In your particular location I have no idea - there may be a firm that is prominent that isn't one of the big players. Ask around. See who has other listings.

Per previous suggestion - ask several for an opinion of value. Let them pitch to you and take it from there.

Best of luck.
I guess it all could be much worse. | They could be warming up my hearse.

J295
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Re: How to sell my Aunts shopping plaza?

Post by J295 » Sat Nov 16, 2019 6:53 pm

Looking for referrals… Typically a local accountant or lawyer or banker will have recommendations.

123
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Re: How to sell my Aunts shopping plaza?

Post by 123 » Sat Nov 16, 2019 7:01 pm

How has she been getting her current tenants? I suspect that she has some contacts in the commercial real estate area. Does she know any other owners of similar properties (they may be able to give her leads/recommendations)?

If she's had the shopping plaza for many years she likely has at least some insight into the process, unless she's just been bumbling along.

The value of her property can be influenced by it's current rented/leased status. Some new owners may look at existing leases as a kind of guarantee on future income where others may be adverse to existing leases because they limit what can be done with the property (and how fast).
The closest helping hand is at the end of your own arm.

retired@50
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Re: How to sell my Aunts shopping plaza?

Post by retired@50 » Sat Nov 16, 2019 8:30 pm

JoeRetire wrote:
Sat Nov 16, 2019 1:18 pm
CodeMaster wrote:
Sat Nov 16, 2019 12:33 pm
I was wondering if anyone had advice on best way to sell this?
In general, when you don't have the expertise to handle a task yourself, hire a professional to do it for you. --Sometimes... :shock:

In this case hire a commercial real estate broker. --Agreed.
JoeRetire,
This is precisely what leads would-be investors and retirement savers to walk into an Edward Jones office... :oops:

Regards,

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JoeRetire
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Re: How to sell my Aunts shopping plaza?

Post by JoeRetire » Sun Nov 17, 2019 8:33 am

retired@50 wrote:
Sat Nov 16, 2019 8:30 pm
JoeRetire wrote:
Sat Nov 16, 2019 1:18 pm
CodeMaster wrote:
Sat Nov 16, 2019 12:33 pm
I was wondering if anyone had advice on best way to sell this?
In general, when you don't have the expertise to handle a task yourself, hire a professional to do it for you. --Sometimes... :shock:

In this case hire a commercial real estate broker. --Agreed.
JoeRetire,
This is precisely what leads would-be investors and retirement savers to walk into an Edward Jones office... :oops:

Regards,
Okay - hire a good professional instead of a bad one.

(Didn't think that qualified would be necessary...)
Don't be a lemming.

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nedsaid
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Re: How to sell my Aunts shopping plaza?

Post by nedsaid » Sun Nov 17, 2019 9:42 am

What I will say is that selling commercial property is much more complex than selling a home. Some of this depends on whether the buyer has to get financing, the banks are pretty demanding nowadays. Pretty much like anything else, you get referrals and you do research. Not easy to find folks you can trust but it can be done.
A fool and his money are good for business.

j0nnyg1984
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Re: How to sell my Aunts shopping plaza?

Post by j0nnyg1984 » Sun Nov 17, 2019 12:45 pm

Can you get me some good bourbon while she still has the shop? :wink:

Topic Author
CodeMaster
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Re: How to sell my Aunts shopping plaza?

Post by CodeMaster » Sun Nov 17, 2019 1:11 pm

j0nnyg1984 wrote:
Sun Nov 17, 2019 12:45 pm
Can you get me some good bourbon while she still has the shop? :wink:
lol :sharebeer
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Topic Author
CodeMaster
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Re: How to sell my Aunts shopping plaza?

Post by CodeMaster » Sun Nov 17, 2019 1:11 pm

nedsaid wrote:
Sun Nov 17, 2019 9:42 am
What I will say is that selling commercial property is much more complex than selling a home. Some of this depends on whether the buyer has to get financing, the banks are pretty demanding nowadays. Pretty much like anything else, you get referrals and you do research. Not easy to find folks you can trust but it can be done.
Yeah... any tips on finding potential buyers? Think any paid ads are worth testing anywhere?
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retire2022
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Location: NYC

Re: How to sell my Aunts shopping plaza?

Post by retire2022 » Sun Nov 17, 2019 1:12 pm

GibsonL6s wrote:
Sat Nov 16, 2019 2:23 pm
I would seek out 3 commercial real estate brokers and ask for broker opinions of value. They should prepare these and pitch the listing for free. There are several online sites like loopnet where you can search for similar properties and see who is active. Regarding the liquor store I would suggest finding a business opportunity broker. In many states both will hold the same license but obviously are specialties. Note since you one the property you may need to write a lease for the new owner of the liquor store as your relative may not have put a lease in place

Happy to help over pm. Good luck
Op I concur with Gibson

here is example of Loopnet in Kanas City

https://www.loopnet.com/kansas/kansas-c ... al-estate/

additionally as others have said you will need a professional realestate attorney should you want to reduce you capital gain taxes consider 1031 exchange:

https://www.investopedia.com/financial- ... anges.aspx

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nedsaid
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Re: How to sell my Aunts shopping plaza?

Post by nedsaid » Sun Nov 17, 2019 2:08 pm

CodeMaster wrote:
Sun Nov 17, 2019 1:11 pm
nedsaid wrote:
Sun Nov 17, 2019 9:42 am
What I will say is that selling commercial property is much more complex than selling a home. Some of this depends on whether the buyer has to get financing, the banks are pretty demanding nowadays. Pretty much like anything else, you get referrals and you do research. Not easy to find folks you can trust but it can be done.
Yeah... any tips on finding potential buyers? Think any paid ads are worth testing anywhere?
A family member was tasked with selling 2 commercial buildings, one sale completed another is underway. One was inherited, the other one is still owned by another family member still living. On the inherited building, the family member worked with the network of people the deceased had worked with. This included attorneys, a CPA, and realtors. The difficulties included getting the building ready for sale, putting documents together for disclosure purchases, and negotiating with the buyer. In both cases, working with real estate professionals with experience with commercial properties. In my area, the market for commercial properties is pretty hot right now. Not sure what advice to give with ads, in both cases just working with the realtors.
A fool and his money are good for business.

Topic Author
CodeMaster
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Re: How to sell my Aunts shopping plaza?

Post by CodeMaster » Sun Nov 17, 2019 9:18 pm

I live in CA and shes in Kansas City MO, do you guys think it would help to find a broker in CA and MO both? In case we find more investors or someone who can make an 1031 exchange kinda thing?
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InvestorNewbie2016
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Re: How to sell my Aunts shopping plaza?

Post by InvestorNewbie2016 » Sun Nov 17, 2019 9:22 pm

Where in Kansas City is this located?

Topic Author
CodeMaster
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Re: How to sell my Aunts shopping plaza?

Post by CodeMaster » Sun Nov 17, 2019 9:46 pm

retire2022 wrote:
Sun Nov 17, 2019 1:12 pm
GibsonL6s wrote:
Sat Nov 16, 2019 2:23 pm
I would seek out 3 commercial real estate brokers and ask for broker opinions of value. They should prepare these and pitch the listing for free. There are several online sites like loopnet where you can search for similar properties and see who is active. Regarding the liquor store I would suggest finding a business opportunity broker. In many states both will hold the same license but obviously are specialties. Note since you one the property you may need to write a lease for the new owner of the liquor store as your relative may not have put a lease in place

Happy to help over pm. Good luck
Op I concur with Gibson

here is example of Loopnet in Kanas City

https://www.loopnet.com/kansas/kansas-c ... al-estate/

additionally as others have said you will need a professional realestate attorney should you want to reduce you capital gain taxes consider 1031 exchange:

https://www.investopedia.com/financial- ... anges.aspx
Thank you , this is all so useful ...
Youtube Channel: | https://youtube.com/c/CodeBoss911 | Finances / Entrepreneurship / Software Engineering

sg2060
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Re: How to sell my Aunts shopping plaza?

Post by sg2060 » Sun Nov 17, 2019 9:49 pm

I work with one of the major national firms (like CBRE, Cushman, JLL, etc.) I'm not in your area, so I'm not soliciting in any way. I would echo what the majority have stated - that you need a competent broker. They have the contacts and expertise necessary to sell the property for a market-oriented amount. The dangers of a DIY sale are multifaceted, especially with individuals who don't have experience in the process and knowledge of potential buyers and how to reach them. Get three or so broker opinion of value (BOVs), and you'll have a better idea. They'll also consider the property's potential for redevelopment IF it is not being utilized to its highest and best use or doesn't have the right tenant mix.

Bobby206
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Re: How to sell my Aunts shopping plaza?

Post by Bobby206 » Sun Nov 17, 2019 9:58 pm

I had some dealings with a commercial realtor in KC and he seemed sharp. Logan Freeman by name. I'll pm you his contact info.

NYGiantsFan
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Re: How to sell my Aunts shopping plaza?

Post by NYGiantsFan » Sun Nov 17, 2019 10:20 pm

As other suggested, best choices online can be Loopnet.com, crexi.com
You may be able to list on this on your own.
Please do basic analysis. Commercial real estate goes on CAP rate.
For the big name tenants (including decent fast food franchise, Starbucks, Drug store, banks etc), you can sale building at 4 to 6 CAP rate at present. For no name tenants, CAP rate will be higher.
Also, look into having long term lease in place from existing tenants prior to shopping the building. Investors prefer long term lease with secure cash-flow.
For existing liquor store that your aunt own, have it rented using separate corporation and include its rent in the rent calculation.

make_a_better_world
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Re: How to sell my Aunts shopping plaza?

Post by make_a_better_world » Sun Nov 17, 2019 10:56 pm

You can list it yourself on Loopnet, craigslist and put a for sale sign on the property.

I'd try that for about 3 months if you want to keep costs low. If you can't seem to generate any interest then hire a real estate agent.

DiamondplateDave
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Re: How to sell my Aunts shopping plaza?

Post by DiamondplateDave » Tue Nov 19, 2019 1:39 pm

In addition to the issues mentioned by others, I wonder about the difficulty of selling a liquor store. Here in NYS, I believe the State Liquor Authority has control over the ability to sell alcoholic beverages. To obtain a license to sell liquor, you have to have a clean background, no convictions, no shady acquaintances, etc. I have no idea what it is like in your area, but it would appear possible that the whole transaction (sale of real estate and operating liquor store) could wind up hinging on the ability of the prospective buyer to pass a background check.

GibsonL6s
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Re: How to sell my Aunts shopping plaza?

Post by GibsonL6s » Tue Nov 19, 2019 4:00 pm

CodeMaster wrote:
Sun Nov 17, 2019 9:18 pm
I live in CA and shes in Kansas City MO, do you guys think it would help to find a broker in CA and MO both? In case we find more investors or someone who can make an 1031 exchange kinda thing?
Brokers need to be licensed in the state of the property. A large national firm may network with brokers in other states to get it sold via 1031 or traditionally.

renue74
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Re: How to sell my Aunts shopping plaza?

Post by renue74 » Tue Nov 19, 2019 4:07 pm

I didn't read all the replies, but the one thing I did notice is that if you are selling the liquor store separately, you'll need to find a business broker and sell it through them.

Not a commercial real estate broker....but a business broker who will market the store to other brokers and to the public.

Two separate businesses, two separate ways to sell.

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