about 10 months ago I purchased 2 corner offices, 1,600 sq. ft per unit to produce a wrap around floor to ceiling glass wing with a direct beach view and beach access. The view is serious, and due to laws in Jacksonville Beach there will be no more high-rises allowed. The offices are located in an amazing area with the best restaurants around in a zone where its an active beach zone, everything looks brand new, and there's plenty to do. There is also a very large state park thats part of the beach there adjacent to the building which is very nice.

It's an 8 floor building The top 2 floors of the building are residential condominiums. The bottom floor is nice retail space. The rest is office condominium and parking garage.

We have it listed as a shell for 605k firm as rock. We bought for $449k, only since its pre construction its not like we really bought anything. We got a line from the bank for the 90k deposit and have only paid about 8k on the line. I also am 24 years old and run a telecommunications firm that is growing and obviously needs capital. I feel taking the six figure profit and putting it toward my company and other future deals could be a huge advantage at 24.

However, the building truly is one of a kind. Keeping it as a future source of wealth and a place to do business is intriguing. We'd have to spend about 100k to build out. So the cash flow gets bad for a long while. Interest rates play a big factor here, and there's some significant financing behind the decision, but what would you do and why

Here's pics:

 

Well, the first thing I would do would be to resize the pictures in your post so people don't have to scroll 30 feet to the right to read the text above them.

 

I would keep the building. Major profit can be made from it. But the only one who can answer your questions is you. If you feel you can make an even bigger profit through your telecommunications firm... then that's what you do. Big risks bring big rewards(or huge failure )

 

yes I realized that once I posted. Re-sized them in the time it took to just realize it and do it.

Any input on the actual dilemma though???

 

No, and you wouldn't want it. I need to learn not to post so much when drinking...

Nice looking building, BTW.

 

You start off with "I", then move to "We"? so who is "WE"? sounds like you (and the other person) need to work it out.?

good looking building though.... and the pics still aren't resized...i had to scroll over like a tard to read.

 

definitely a nice place, but real estate in our area is not growing much at all. In fact it is falling.

I do understand that commercial property is less fickle, but you're not going to be seeing the 20%+ that you saw in the past years.

Just take the six figure profit. I don't think anything like that is going to happen to you again in the next 5 years in real estate.

 

hard for anyone not living in the FL area to really know how to answer this question.....

You need to determine how much money you need today and tomorrow for your current business, and whether you have enough cash to sustain yourself on that alone...

if you have enough, hold onto the commercial property for as long as you can, rent it out, and wait for the value to go up. Like San Diego, I cannot imagine there are too many beachfront properties, especially as nice as yours. The value should never decrease...

but if you need the cashflow for the tele company you have, then you should sell. depends on which of the two ventures is more important to you...

 

o ya...i forgot to ask.... you said you have it listed right now.....

How long has it been listed? have you had any offers? any showings? anything?

 

Another option is to lease it out this space to another company now for the cashflow. Then later, once your telco company is in a stronger financial shape and the lease is up, kick out the lesee and take over the space.

Andrew