UNT to move ahead with plan to purchase Sack N Save

[UNT Five&Dime]

Damn liberals.

[foutsrouts]

I'm assuming they chose to let RV negotiate the buyout.

So we'll have to endure 5 more years of it?

[Green P1]

So we'll have to endure 5 more years of it?

Probably not 5 more years... But don't be surprised when Flyonthewall comes one here making excuses for the shape of their fresh produce selection. Edited April 10, 2015 by Green P1

[Ben Gooding]

Yeah, we should give sack n save a chance. They deserve another year, no matter how intrusive they may or may not be.

[Army of Dad]

Yeah, we should give sack n save a chance. They deserve another year, no matter how intrusive they may or may not be.

There are a lot of cancers, er, rot in the produce section. Once they get their own buyers in there they will be a lot better.

[ipd054]

I value properties at work and I know this will be hard to believe by some but the property as it sits today is worth $6.25 million.

I did some quick math (I know I did not take in to account many variables) to see what the Sack 'N Save space would rent for today. Then I checked to see what the market is renting for to ensure that it was fair.

For a valuation of $6.25M (using a Cap rate of 5%) the space would need to rent for $20.88sf. This is in line with other retail space with I-35 frontage. There are two spaces available for lease today that I was able to find on a quick search. The first is near State School Road and is listed for $20.00sf. The other is near Teasley and is listed for $21.00sf. So on the surface the valuation is on target.

For those that may care or want to argue the value here is the math.

For this type of commercial real estate and in the interest of speed I valued the property by the Net Operating Income (Income minus operating expenses; excluding Tax, Debt Service, capital expenditures, Deprecation and Amortization). Divided by the cap rate (5%) This provides the value.

V=NOI/Cap

I used a 5% cap rate because of the location to the University, otherwise I would have had it between 6 and 6.5% Location is a major player in this case thus the lower cap. So assuming a $6.25M value and a 5% cap rate, the annualized NOI would need to be $312,500. This breaks down to $26,000/mo. Assuming a 15,000sf store (most grocery stores are between 13,000 and 18,000sf) this breaks down to $20.88sf (in line with the market)

I would guess that Sack 'N Save as a long term resident is not paying $20.00sf. I could argue that if they are paying $15ft that the property is only worth $4.5mil but since from my understanding they do not have a lease I have to use market value to do my math. I would guess that the final deal will end up around the $5.75mil range unless there is something else to the deal. Knowing that there is a threat of an eminent domain purchase the owner of the building should not balk at an offer higher than $5.5 because that is far higher than they will get if the state values the property as they will use the current NOI.

If I were look to buy this property I would use other methods to value the property to be more accurate but for just a quick look the value looks pretty close.

[Eagle1855]

For those that may care or want to argue the value here is the math.

Interesting stuff. Thank you.

[TheTastyGreek]

I value properties at work and I know this will be hard to believe by some but the property as it sits today is worth $6.25 million.

I did some quick math (I know I did not take in to account many variables) to see what the Sack 'N Save space would rent for today. Then I checked to see what the market is renting for to ensure that it was fair.

For a valuation of $6.25M (using a Cap rate of 5%) the space would need to rent for $20.88sf. This is in line with other retail space with I-35 frontage. There are two spaces available for lease today that I was able to find on a quick search. The first is near State School Road and is listed for $20.00sf. The other is near Teasley and is listed for $21.00sf. So on the surface the valuation is on target.

For those that may care or want to argue the value here is the math.

For this type of commercial real estate and in the interest of speed I valued the property by the Net Operating Income (Income minus operating expenses; excluding Tax, Debt Service, capital expenditures, Deprecation and Amortization). Divided by the cap rate (5%) This provides the value.

V=NOI/Cap

I used a 5% cap rate because of the location to the University, otherwise I would have had it between 6 and 6.5% Location is a major player in this case thus the lower cap. So assuming a $6.25M value and a 5% cap rate, the annualized NOI would need to be $312,500. This breaks down to $26,000/mo. Assuming a 15,000sf store (most grocery stores are between 13,000 and 18,000sf) this breaks down to $20.88sf (in line with the market)

I would guess that Sack 'N Save as a long term resident is not paying $20.00sf. I could argue that if they are paying $15ft that the property is only worth $4.5mil but since from my understanding they do not have a lease I have to use market value to do my math. I would guess that the final deal will end up around the $5.75mil range unless there is something else to the deal. Knowing that there is a threat of an eminent domain purchase the owner of the building should not balk at an offer higher than $5.5 because that is far higher than they will get if the state values the property as they will use the current NOI.

If I were look to buy this property I would use other methods to value the property to be more accurate but for just a quick look the value looks pretty close.

Wait... Someone used a quantifiable analysis, showed their work, prefaced it with an admission of their own assumptions and potential fallibility, came to a clear conclusion, presented it respectfully, and didn't curse or rely on terrible analogies to make a dumb rhetorical argument?

Are you sure you belong here, sir?

Second question- Why only 81 posts in 11 years? Is there someone here you don't like? Because I'll get rid of them. Just whisper a name.

[ipd054]

I am attempting to lead by example on how to post... (Or I actually knew what I was talking about on this one)

As for the volume of post, I try to post only when I have something of value to contribute. "It is better to be remain silent and be thought a fool than to speak and remove all doubt"

If you look back you will see that I have proven myself a fool in the past... I guess I leaned from my earlier mistakes!

[Harry]

Great post ipd054!

[3XL]

RIP my father...

after reviewing my cleared checks...my dad once asked me "what's this Sack and Save place...you sure do go there a lot..."

[Quoner]

RIP my father...

after reviewing my cleared checks...my dad once asked me "what's this Sack and Save place...you sure do go there a lot..."

Awesome. Did you ever edit the store into a Minyard's or Jewel Osco, just to see how it looks? I imagine a few stripes down the side would be pretty tight and make visitors feel like they were in Eugene or Waco.

[Green P1]

Awesome. Did you ever edit the store into a Minyard's or Jewel Osco, just to see how it looks? I imagine a few stripes down the side would be pretty tight and make visitors feel like they were in Eugene or Waco.

You're a clown. Everything you say on here is a mock torwards other people. Why do you even waste your time or energy? Real question.

[Quoner]

You're a clown. Everything you say on here is a mock torwards other people. Why do you even waste your time or energy? Real question.

Pretty much your stand on RV, huh? Pot meet kettle.