Salt Lake Downtown Office with Residential Condo MLS#2131626
Mixed Use (office and residential) | 6.40% CAP | 1,913 SqFt MLS#2131626
Marketing description
This unique property offers a mixed-use opportunity in a prime downtown Salt Lake City location. It comprises:
1st Floor: 627 square foot office space.
2nd & 3rd Floors: 2 bedroom, 1.5 bath residential condominium.
Ideal Buyer Profile:
Owner-User: This property is particularly well-suited for an owner-user who desires to live in the residential condo (2nd and 3rd floors) while benefiting from the income generated by the 1st-floor office space. This scenario offers the advantages of offsetting living costs and potentially utilizing the office for a personal business.
Investor: The property also presents an attractive investment opportunity for those looking to rent out both the residential unit and the office space. This allows for diversified income streams from a single property.
Potential Strategies for a New Owner:
Negotiate Office Lease: Immediately engage with the existing 1st-floor office tenant to secure a longer-term lease, maximizing the stability and value of the commercial component.
Residential Rental Income: If not occupying the residential unit, research current rental rates for 2-bedroom, 1.5-bath condos in downtown Salt Lake City to determine potential rental income and a competitive pricing strategy.
Maximize Use: Explore options to enhance both the office and residential spaces to attract high-quality tenants or improve personal living comfort and property value.
Further Considerations (for a potential buyer):
Financial Projections: Conduct a detailed financial analysis, including potential rental income for the residential unit, operating expenses for both components, and financing costs.
Market Research: Research current market conditions for both commercial office space and residential condominiums in downtown Salt Lake City to validate the stated CAP rate and assess rental potential.
Property Condition: Arrange for a thorough inspection of both the commercial and residential units to identify any potential maintenance or repair needs.
Condo Association: Understand the terms and financial obligations of any homeowners' association (HOA) for the residential condo unit.
Zoning and Regulations: Verify local zoning ordinances to ensure compliance for mixed-use properties and any future development plans.
This property offers a compelling blend of immediate income and personal usage potential in a highly sought-after urban environment.
Investment highlights
Investment Highlights:
Income-Generating Office Space: The 1st-floor office is 100% occupied, providing immediate income. The current tenant's willingness to negotiate a longer-term lease offers stability for a new owner.
Solid Office CAP Rate: With a CAP rate of approximately 6.4% for the office space, this indicates a respectable return on investment for that portion of the property.
Downtown Salt Lake City Location: A desirable location in downtown Salt Lake City offers strong potential for both commercial and residential appreciation, as well as easy access to amenities, transportation, and employment centers.
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