In this short pitch, Catherine Bell and her team present a commercial real‑estate opportunity near the Scottsdale airport. The property consists of an upstairs area to be converted into co‑share executive office space branded as Club Scottsdale Part 2, and a downstairs blank space to become an exotic‑car garage with a black‑car service. They model revenue at $648,000 annually from car storage, $806,000 from office rentals, and additional income from the car service, totaling roughly $1.8 million in yearly revenue. Operating expenses are projected at $977,000, yielding a cap rate of 11.5% and a 9.1% overall yield on a $7.9 million purchase price (or $10 million all‑in). The discussion also touches on financing challenges, noting a breakeven DSCR and the need for interest‑only loans or additional equity to make the deal financeable.
Are you in the deal room?
In like the 3 minutes that you were introducing this deal. So can you give me a quick, like, one sentence of what this deal is about? So it's this building. Tristan found this. It's over by the Scottsdale airport. It's an executive airport. And so it's this building here. This is, this is upstairs. So it's all a bunch of offices and stuff, which I want to do the co-share renting. We want to have this be Club Scottsdale Part 2. And then downstairs, it's a blank space basically. And what we want to do right here. So imagine nothing there. It's all blank, but there's a car garage there.
So garage door comes in, cars can be parked right there and a garage door right there.
Here we figured out we can park 66 cars inside of here. And so we started doing the revenue model on it. So exotic car garage brings in $648,000 a year, executive office space $806,000, and then the black car service because we're right across from the airport. So basically it would generate $1.8 million a year. But so we're still looking at— so a total of—
total operating is $977,000.
So on a purchase of $7.9, our cap rate is 11.5. So we're looking at 9.1% yield.
And that's on a 10 point— if you go back out, that's on a $10 million all in. On a $10 million all in with that, it's still at a 9.1% cost yield.
Well, and the car— this— the revenue for the car storage was only based on 35 cars, correct? 35 inside and 20 outside. Oh, it needs to be doubled if you're going to do 66.
I won't tie that into the paperwork because I want that to be bonus money. Right. Yeah. So when the bank's like, oh, you don't make enough, I go, oh, shit, I did the paperwork wrong. It's actually $75,000.
Right. And they go, oh, so the DSCR on this is breakeven.
Says it's not financeable without interest only or more equity. Right.
