Pre-COVID Annual Profit$115,139
2020 COVID Profit$28,857
Annual Profit at 85% Full$242,367
Included Assets$250,000
Growth Trajectory Stable
Years in Operation5+ years
Daily Operations Staffed
Neighborhood Suburban
Remaining Time on LeaseLease 5+ years

Business & Space Overview

This location is a long-standing, stable, cashflow-positive space with an optimized floor plan and clear opportunities for growth and rebranding by a new company. The business is turnkey and comes with the FF&E, staffing, policies, and customer base already in place. Add your brand to the building and repaint the walls, and you’ve got a successful new outpost in the Pacific Northwest for minimal effort.

While the business has brought in stable rent and revenue for the past 12 years, the business owner also owns the building and is looking to sell the business to a well-qualified buyer, ideally one with an existing executive suites business they can add this location to. The lease is at market rate with ~7 years remaining with extensions, and has an unused 100K in TI budget for the new owner. Space has been well-maintained, with a new high-speed fiber and VOIP system installed in recent months.

Q Location & Market

This location has been in operation for ~10 years, with a solid history of low tenant attrition. This executive suite business is in a suburban market between Seattle (30 minutes to the north) and Tacoma (15 minutes to the south) and close to Ports of Seattle and Tacoma and Sea-Tac Airport. The space is in a unique sweet spot - far enough from the cities to prevent customer loss, close enough to the cities to have a large suburban customer base. There are very few competitors in our area and we have a larger-than-usual amount of conference/board room rentals and virtual mail tenants (typically, lawyers, real estate firms, title companies, etc) due to the large market & lack of competition.

Q Staffing

The location has been managed by the owner's wife (in-person during the summer months, remote during winter months). The location has been stable for years, and we have not started any new initiatives or marketing campaigns in a while, so not much time is needed to maintain the space. In addition to the owner's wife, the space typically has 1 full-time, fully-trained employee (sometimes an additional part-time employee) for on-site management and reception.

Q Marketing

We do not do any active marketing for the space - the location has consistently hit our revenue goals for several years, and attrition is low, so we have not spent any time on this. We occasionally sponsor local events, and have relationships with local commercial real estate brokerage professionals for direct placements. Our one online marketing activity is through Craigslist - we keep ads online and get a few clients through there.

Q Financial Performance

2020 financial performance was impacted by COVID, however the reduction in top line revenue was not dramatic. 2017, 2018 and 2019 financial performance showed expected growth from Income to Owner of $85k in 2017 to $95k in 2018 and $115k in 2019, and early 2021 revenue projections indicate we're heading back to a normal (2019) level of revenue as people get out of the house again.

Q Opportunities for Growth

We think there are two opportunities to grow the business - first, by capitalizing on the unique offering HOSS provides in the market - there's nothing else like us around. We think a more focused marketing effort would also bring in new clients - we have not had the skillset to create marketing or ad campaigns.

Q About the Seller

Seller assumed the business from a previous owner about 12 years ago. Seller, who also owns the building, has recently contracted to sell the building.

Q Lease Terms

The current landlord understands the business is in the process of being sold, and is ready to work & negotiate with the incoming buyer. The space comes with a long lease - the initial term Lease Expiration is September 30, 2028, with two market rate extensions available. If the buyer has a net worth of $3 million or more, no security deposit is required; otherwise, a security deposit is required equal to a portion of the lease duration. Full lease documents available upon request.

Notes from DenSwap: "This space has consistently turned a profit even through 2020 and with part-time onsite management by the owner's wife. It will make an excellent addition to an executive suite portfolio." Download space analysis & profit model PDF

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