Assume a purchase the subject property for a negotiated price less than market price, according to Tarrant Appraisal District tax records, based on demolition of existing building and the fact that the property has been unused for a number of years since being vacated by the 7-Eleven. The new development under consideration, a Braum's Ice Cream and Dairy Store, will be new construction of a 2,600 square foot structure on the existing site. The following spreadsheet estimates development and financing costs based on web-based research from various sources including, Braum’s, Dairy Queen, Bank of America and Capital Funding of America. Unable to locate reliable data for income and expenses of a typical ice cream/quick serve restaurant, the analysis stops short of considering the profitability of a Braum’s store at this location. However, it is a safe assumption that an established business, such as Braum’s, would have no problem turning a profit under these favorable circumstances.
Estimates:
Reference - Tarrant Appraisal District:
Seems like a good idea, and you really know the area.
ReplyDeleteInteresting. Good thorough analysis and great presentation! Didn't see any allowance in financial analysis for environmental studies, testing, clean-up, etc. Is this an area of concern given site's prior use as a gas station?
ReplyDeleteGood point; I should have addressed that. Since I live in the area, I witnessed the extensive clean-up that went on at the site when the gas station moved out so I don't think there are any concerns. However, it really should be verified. Thanks for the question.
DeleteGreat presentation, very detailed and easy to follow. I also liked that you looked at it from a consumer's perspective.
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