Need Help With A Convience Store Purchase - What Would You Do??
I have a pretty straight forward deal, but have never bought commercial before. I'm a rehabber by trade, but want to look at this long term business possibility. Local conveniece store closed 3 years ago (making money at the time) because it was being poorly managed and was an outlying location from their core business .Building is fine with almost all of the equip still there as when they boarded it up. Large independent company owned it and was pumping gas when it closed. Pumps are gone but when I talked with the environmental guy for the company, the tanks have been fully monitored since closing and should meet state environmental specs. The property price is reasonable, the building needs cleaning, I have the previous sales numbers (inside/gas) and they would certainly work. All in all, it seems to work. We would keep it as a business for the long term. We have a local person who was in the business who has interest in being the manager... What do I need to do to to make this deal happen. I believe I need a consultant / attorney to ease our minds. Can anyone point me in a helpful direction or give me your inputs on this process? Thanks
Hire a real estate attorney, not an attorney whose speciality is something else. I assume you've checked with the municipality about U&O requirements, licenses, any zoning/code violations, etc.?
Do you intend to continue gas pumping operation?
Our intent is to reopen the convenience store with fuel. You don't make much at all on the fuel but it is the draw to the convenience store. The #'s from the last year of operation of the store are decent and nothing competion wise has changed in the local area. I haven't gotten to the city yet for code issues but from my experience with them, they are pretty agreeable down here. Excuse my lack of knowledge, but what is U&O??
I know there is alot of due dilegence involved and I am working my way through it, but am I missing anything big?? We are looking at environmentals, licenses, employees, suppliers, $$ people, etc...
Does anybody know of any type commercial rehab type loan programs that might work to roll this whole deal into place?? Thanks
Are sure you want to own/operate a convenience store? They are very labor intensive. Buy the property and find an owner/operator to lease the store. It's better to stick to your core business real estate.
johnm,
U & O = use and occupancy certificate
Some municipalities require non-residential property owners to have them. Some issue U&O's after inspection of the property; others don't and just collect the money for the U&O. Your municipality may not require a U&O, or if it does, perhaps a new U&O wouldn't be required if you intend to continue the present use.