Tommy Dobczyk and a colleague break down why a commercial property priced at $292 per square foot is a disaster. It's double the local average, has 1970s infrastructure, underground diesel tanks from 1978 that are probably contaminated, and missing basic documentation. Unless the seller cuts the price roughly in half, the environmental and structural risks make it worthless.
Are you locking up deals in the deal room?
This is about $292 a square foot, which is well above the industrial average out there, which is about $139. So again, we're getting sent dog shit, and I'm not afraid to admit that. Unless these guys, unless these people are willing to take the 50% off of their price, we're not interested in doing anything with them, right? So it's, it's horrible. The infrastructure is from 1970s, '80s, got underground tanks that Diesel tanks from probably 1978 that are junk. There's a significant marketing risk. At $50 million, this is a premium basis bet on infrastructure. So again, none of this makes sense at all. So it says here that these are the no income in place, but special purpose liquidity discount. Like, we need to talk to somebody about that, CPA, to find out that deal information right there. 1978 vintage, but How long, how long would it take us to find that info? So like to get it turned back on, like the deep, like how long would it take you to find out that the diesel tanks, the 15,000 gallons in the ground, they're crap, right?
Yeah.
Environmental exposure, potential mismatch between legacy facility design and current destiny requirements. That's basically what I'm saying. It needs a full remodel. Listing inconsistency says rentable area shows 51,000 square feet while available space shows 51,000 and it's only 4 feet. It wants us to go back and find out all this information from the seller. How long would it take you to find all that stuff out, right? And a colossal waste of time. You got to get an expert to show you, hey, you're going to need an OM and floor plan as it's noted.
Well, I bet whoever's listed it doesn't even know to ask for all this.
