In this YouTube short, the host (Speaker A) and Catherine Bell discuss a commercial real‑estate opportunity in Phoenix. The property was bought for $3.5 million on Dec 13 2021 and is now listed at about $8.5 million, creating financing leverage for a new investor. The plan is to develop the site into 8‑9 lots, each with a 10,000 sq ft building, costing $3.5‑4 million in infrastructure and roughly $550k per lot. Lease rates are projected at $1.20‑$1.30 per sq ft per month on a triple‑net (NNN) basis, meaning tenants cover taxes, insurance, and maintenance. Catherine highlights that NNN leases are highly attractive to investors, especially for retail, medical, and industrial tenants. Two ROI paths are compared: (1) eight buildings with multi‑tenant shallow‑bay leasing for a later sale, or (2) nine industrial‑condo style rentals held long‑term. Projected rent per building is $145k‑$158k annually, yielding an NOI of $1.8‑$2 million per year, and the higher lease‑up rate can boost the eventual sale price beyond the baseline $100 per sq ft industrial market rate.
Chapters
Are you in the deal room? They purchased it for $3.5 million on December 13th, 2021. That was the last purchase that they had on this property. Okay. And they haven't done anything with it since. Correct. Now they're trying to sell it for $9— uh, $8.5 million? Correct. So we know that we've got room in there for them to finance us, possibly. So— and they're trying to 3x multiply their deal. So that's cool too. It's almost $500,000. And then we've got infrastructure costs that are going to take place. That's another $3.5 to $4 million. So, and that's to do the groundwork. So the conceptual totals here fall out between $2 million and $5 million, right? And so roughly about $550,000 per lot. We are looking to create 10,000 square foot buildings on each of these lots. What number of lots makes sense given— based on my view is the best risk adjustment plan is to create the 8 lots, 8 buildings, 80,000 square foot. Best pure density is a theoretical ROI on 9 lots, 9 buildings, 90,000. What lot count makes the most sense. The lease rate right here is basically set up at $1.20 to $1.30 square foot triple net per month. And triple net means like we have no overhead. So in anything that's not residential, triple net means that the people in that building leasing the building— these are buildings we own that we lease to somebody— the people in those buildings pay the taxes, the insurance, and the maintenance. So at that point, what that means is that when, when we lease the building, we own the building, we're getting paid rent, but then what what they're also paying is our insurance, our taxes, and our maintenance. So if we have insurance, taxes, and maintenance covered, we don't really have any other expense unless we got to paint the building and make it pretty. But that's maintenance, right?
Triple net leases— this is what investors love more than anything. So when you hear triple net lease, have your ears perk up. This is like a Starbucks or a McDonald's or medical offices, industrial space. They're all usually some sort, some form of triple net lease. So it's a very cool as, as an investor and an owner, it's a very advantageous place to be.
So, um, takeaway from this is the best ROI path shows here that it's building 8 buildings, uh, with multi-tenant shallow bay leasing with the ability to sell later, or having an industrial condo of 9 and being held as rentals. But at the end of the day, the industrial sale price in Phoenix is around $100 per, but the increase in value goes up when we have leased up buildings. So we'd be able to get a little bit more for it. You see here, keep going down, shows right here, it says the rent per building would be $145,000 to $158,000. And it's saying that the NOI would be basically coming back at around $1.8 to $2 million per building on the year, right?
