Hi,
I’m currently looking to purchase a laundromat that has 1 year left on the lease and 2 five year lease options. I had my attorney speak with the landlord to try to get a lease extension. I was hoping for an additional 2 five year lease options, for a total of 21 years. However, the landlord flat out said no to our request and that they are not renegotiating at this time. They are a larger real estate company, called National Shopping Plaza, so I’m not sure if this is standard protocol or if there is another reason they won’t consider the lease extension. I’m wondering if I should still go through with this deal considering there are only 11 years left on the current lease. The laundromat has older equipment as well (approx. 18 years old), so I will need to invest in some new machines in the next few years. The laundromat makes great net income, approximately $200K-$250k per year, so this is very enticing. However, with the shorter term lease and older machines, I’m getting second thoughts on whether this will be a good financial decision or not. I’m a first time buyer, so I’m hoping someone can provide some advice or thoughts on my situation.
Thank you!!
Sue
.
