Specifics – Fitness Centre
Grand Bend Commercial Property – Fitness Centre
- 37 Ontario Street North, Grand Bend, On.
- 9000 square foot commercial condominium. (lower level)
- Appraised in Feb. 2014 by Valco Real Estate Appraisers in London for $1,025,000.00.
- Leaseholds include: hot tub, sauna, front counter, mirrors, benches, sound system speakers, 4 washrooms with showers, fully set up for a fitness centre.
- Grand Bend Commercial Property – Fitness Centre, Excellent 15 year tenant.
- New 3 year lease ending May 31, 2017.
- Last month rent deposit of $8750.00 + HST
- Personal guarantees of the lease from both owners of fitness business for $40,000.00 Rent = $8.90 per square foot + condo fees, property taxes.
- Total = $8750.00 per month with an adjustment each June 1 starting in 2015
- All utilities paid by tenant.
- Total cash flow after taxes and condo fees deducted = $80,100.00
Sale Price $995,000.00
Vendor Take Back mortgage $96,250.00 @ 7.5% with $150,000 down payment.
- Arrange new first mortgage of $748,750.00 (4%, 25 year am. used for calculation however may be able to arrange better terms) = $3936.00 per month or $47,232.00 per year.
- VTB second of $96,250.00 @ 7.5% (20 year am.) = $789.00 or $9228.00 per year.
- Down payment of $150,000.00 (Line of Credit at 4%, 25 year am. used for calculation but may be able to arrange better terms) = $789.00 per month or $9468.00 per year.
- Total in yearly payments = $65,928.00
Return on Investment
- Total excess cash: $80,100.00 – 65,928.00 = $14,172.00 per year. 13.7% on the $150,000.00 LOC down payment.
- Documents available to lawyers for serious purchaser only. Appraisal.
- Lease. (will be transferred and assigned to you upon closing) Survey.
- Copies of condo documents including current financials for Condo Corp. LCC no. 60, parking lot agreement, property management service agreement, by‐laws, reserve fund study.
- Standard condo agreement of purchase and sale to be used. (supplied by vendor)