Business Summary:
Catering Kitchen & Real Estate With Offices - $62,000 Annual Profit
RRC#: 1631
Asking Price: $615,000
Location: Very accessible location, San Jose, California
Yearly Revenue: $96,000
Yearly Cash Flow: $61,800
Monthly Rent: Contact For Info
LISTING DESCRIPTION:
This opportunity is a two level building, with a full commercial kitchen and an office on the ground floor, and two separate offices on the second floor. The 1,575 ft. lower level has a fully built out code compliant commercial kitchen of approximately 1,200 ft., an office, a restroom, and a storage area. The kitchen equipment includes an 11’ type one hood, a range with 6-burners, 2‘griddle and two ovens, a second 6-burner range with oven, a double fryer, convection oven, 30 quart Hobart mixer, Kitchen Aid mixer, proofing cabinet, standard size microwave and an extra large microwave. There are two 2-door reach in, and one 3-door reach in refrigerators, a 3-door reach in freezer, and a 3-glass door merchandiser. Prep tables include two 5’, two 6’ and one 9’ stainless prep tables, 3-compartment sink with rinse, 2-compartment prep sink, mop sink, floor sinks, hand sink and built in mop closet. Various shelving units, resin and stainless roll carts, rolling sheet pan rack, lockers and in floor grease trap round out the kitchen. The downstairs has a front entrance and a rear door. The separate upstairs level is accessed through it’s own street level entrance, which is separate from the kitchen. There is a small waiting room off the offices, as well as a restroom. The current owner leases out the offices to two separate tenants, and the downstairs is leased to three full time and two part time food service tenants. The leases for each of the tenants are either six months or one year. The minimum monthly rent payments from the tenants is currently $8,000, plus upward interim adjustments if a tenant periodically needs more on site use time. Monthly expenses paid by the owner include $1,400 in utilities, $800 for monthly maintenance, $500 property tax, and $150 for building insurance. This leaves the owner a minimum monthly net operating cost of $5,150, which after the $3,000 monthly mortgage payment yields $3,150 in net cash flow. For a food service operator, such as a caterer, specialty food producer, lunch truck caterer, or bakery and delivery operation, this presents an excellent opportunity to purchase a building for their own needs, and have an additional income stream from the tenants. The location is in a very desirable area, with quick and easy access to freeways and major expressways. In addition to a buyer assuming the current mortgage, our preliminary research and discussions with lenders indicates this property would easily qualify for a loan with 20% down and 80% financed. The owner has successfully owned and operated this property and managed tenants purely as an absentee landlord for nearly four years, without occupying any of the premises offices or food service business of their own.
GENERAL INFORMATION:
Organization: Sole Proprietorship | Year Established: 2007 | Current Owner: 2007 | Square Footage: 1,575 ground floor + 825 upstairs offices | Parking: Parking lot | Licenses Required: Business, Health Dept | Reason For Sale: Other interests |
FINANCIAL INFORMATION:
Yearly Revenues: $96,000 | Yearly Cash Flow: $61,800 |
LEASE INFORMATION:
Monthly Rent: |
FINANCING INFORMATION:
Note Balance: 400,000 approx | Rate/Term of Note: See description |
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