Coach
08-19-2008, 01:35 PM
Hello Gentlemen,
I just wanted to throw this out for feedback as an opportunity has brought itself to my attention while working on my gentleman's club.
There is a Motel that was recently purchased by two gentlemen and on this property sits a building that use to be a nightclub. This building is a little more then 12,000 sqft and sits less then 3 miles from a Div I big name college.
The two men who bought this property are in the motel business, however, they spent 2-300K refurbishing this club, redid everything, its really well done, but as I said they are in the motel business. The motel is slowing beginning its own renovation as well. They do not want to operate this club, but have been doing so 3 nights a week with live entertainment.
The club has two bars and has a capacity of 350 people with a performing stage and a full kitchen.
This is a total turn key project, licensing, stock, everything is in place. They want to lease out the business essentially for $10,000 a month, no CAM or other add-ons. i would be operating this club under a management agreement in the lease so I could operate immediately upon agreement to terms. No liquor board or city approvals needed.
From an initial investment standpoint this is extremely inexpensive to get into, however, I own no assets (less risk, but still a chance for a reward).
I have done some rough numbers on this club and at initial look it would be a solid 900K+ gross in a somewhat short period of time.
They have no preset requirements as to lease terms, they are completely flexible on the structure of the whole deal.
I was thinking about reducing the 10k/mo down to something like 7k/mo for the first say 6 mos, then making the last 6mos of a 5 year initial lease 13k which would make the total value of the lease the same, but also give me some growing room.
I just wanted to hear what other people had to say about this as it was not what I started out looking for, but it does look like something work looking pretty hard at and it probably will nto be available long, not with school getting ready to start.
Thoughts?.......
I just wanted to throw this out for feedback as an opportunity has brought itself to my attention while working on my gentleman's club.
There is a Motel that was recently purchased by two gentlemen and on this property sits a building that use to be a nightclub. This building is a little more then 12,000 sqft and sits less then 3 miles from a Div I big name college.
The two men who bought this property are in the motel business, however, they spent 2-300K refurbishing this club, redid everything, its really well done, but as I said they are in the motel business. The motel is slowing beginning its own renovation as well. They do not want to operate this club, but have been doing so 3 nights a week with live entertainment.
The club has two bars and has a capacity of 350 people with a performing stage and a full kitchen.
This is a total turn key project, licensing, stock, everything is in place. They want to lease out the business essentially for $10,000 a month, no CAM or other add-ons. i would be operating this club under a management agreement in the lease so I could operate immediately upon agreement to terms. No liquor board or city approvals needed.
From an initial investment standpoint this is extremely inexpensive to get into, however, I own no assets (less risk, but still a chance for a reward).
I have done some rough numbers on this club and at initial look it would be a solid 900K+ gross in a somewhat short period of time.
They have no preset requirements as to lease terms, they are completely flexible on the structure of the whole deal.
I was thinking about reducing the 10k/mo down to something like 7k/mo for the first say 6 mos, then making the last 6mos of a 5 year initial lease 13k which would make the total value of the lease the same, but also give me some growing room.
I just wanted to hear what other people had to say about this as it was not what I started out looking for, but it does look like something work looking pretty hard at and it probably will nto be available long, not with school getting ready to start.
Thoughts?.......