Widespread Commercial represented a buyer with $100,000 cash to invest into commercial real estate. A few days after engaging with the client, we found a commercial property listed on a residential platform. The property was just under an acre, located on Moreland Avenue, zoned C2, and listed for $70,000.

It’s important to note that residential property & commercial property are zoned and valued differently. This might seem obvious to you, but we frequently come across commercial properties that have been listed with residential agents who don’t know how to properly value commercial real estate.

Without knowing anything about the Moreland property, we know there aren’t any commercially zoned properties in the city of Atlanta, especially within a high traffic corridor like Moreland Avenue, at this price. The property was worth at least $300,000. Our client agreed, this was a great opportunity. We made an offer and went under contract immediately. The offer was $80,000 cash, $10,000 above the asking price, with a closing in 30 days or less.

Due to the nature of previous activity on the property, we recommended our client have an environmental survey done. During our due diligence period, we were able to get a consultant onsite to give us a quick, verbal report. Based on his professional guidance, we moved forward with the purchase. After closing, we continued with a full environmental survey, which came out clean.

The property included an old automotive building. The tenant was storing about 2000 used tires onsite and hadn’t been paying rent. Our team helped our client navigate through the next steps. We initiated an eviction, hired a junk removal company, and completed all necessary paperwork. Within 6-8 weeks, the property was ready to go back on the market.

We listed the property for $350,000. It went under contract within 30 days and closed shortly after. Our client purchased the property for $80,000 and sold it 6 months later for $350,000. This was a great investment opportunity. It’s also a great example of the importance of working with a commercial broker who understands the true value of commercial property.