Buying the nightclub real estate and leasing it out to

[Mr. HOLLYWOOD]

Hi everyone. I am in the real estate development industry. We build mid-rise condos/townhomes and own rental properties in L.A. I am thinking about purchasing a bar/nightclub for the sole purpose of finding a tenant and leasing the property. I have a certficate in Hotel and Restaurant management and have been an assistant to one of the biggest nightclub owners here in L.A. My question is how profitable can this be? Are the typicall leases long term? NNN? Could this work if I had the right location from a financial standpoint? Any replies would be greatly appreciated.

[40 Thieves]

Well from the creds you posted can't really see why you'd have really any questions for this forum. Commercial properties, real estate dev and assistant to the biggest club owner in LA; sounds like you have what it takes. Profit is made from doing business well - rarely does it matter what industry. Being addicted to money and being a super sales person helps. If you've succeded in all these other areas then the specifics of lease terms and nnn are details that are very small.

[teenclub]

Well from the creds you posted can't really see why you'd have really any questions for this forum. Commercial properties, real estate dev and assistant to the biggest club owner in LA; sounds like you have what it takes. Profit is made from doing business well - rarely does it matter what industry. Being addicted to money and being a super sales person helps. If you've succeded in all these other areas then the specifics of lease terms and nnn are details that are very small.


Ive seen leases from 3- 30 years - most triple net.

Come to tampa bay build one large enough for my needs - i will be a tenant.

[HenryB11]

Mr. H

I have been in the food and beverage business my entire adult life, have worked my way through the BOH ranks and earned my whites with culinary training , through FOH training as a Maiterd , Sommelier, Bartender and even Barista - eventually putting my education to use as a manager, trainer, multi-unit supervisor, owner , industry consultant and finally as a landlord - so I can honestly say if you are in this business for the money, being a landlord is the best route to take.

There is no doubt that the urge to become a restaurateur is a very strong one - it attracts those with and without experience, and it spits them out just as equally at a failure rate of 6 in 10 during the first 5 years in operation - which is very bad for a fledgling restaurateur , but very good for a landlord that controls the contract debt , FF&E and has the ability to continuously resign new leases. Compare the risk factors, the profitably and the ROI and you will see why the only person who is truly successful is the person who owns the property.

If you can wrangle a great deal on a property - has the where with all to handle the lease gaps and understand how to hedge your real estate investments - the food and beverage industry is absolutely the best place to invest.

- Henry