What $3 Million Can Buy in Office Real Estate
Office real estate continues to be one of the strongest types of property to own. Average vacancy across the country dropped to 9.6% in the second quarter, a record low since the recession.
With $3 million to spend, top-line office buildings likely aren’t in the mix. But there are unique properties within grasp. They may just need some help getting renters.
1112 NW 23rd St., Oklahoma City: $3 million
This property is a landmark sitting along the famous Route 66 running through the uptown part of the state’s capital city.
The gold geodesic dome, among the first built in the U.S., was finished in 1958 for Citizens State Bank. Citizens later became Bank One, which eventually sold the property — but not without controversy.
A developer had sought to demolish the building to build a Walgreens in the early 2000s. Local citizens protested, including picketing in the street, and the building was spared. The building then earned a place on the U.S. National Register of Historic Places.
The latest owner bought the building for $1.1 million at auction about four years ago.
2630 Charlevoix St., Detroit: $2.975 million
This vacant 17,600-square-foot building sits about 2 miles from downtown Detroit. This one may take creativity and an investor looking for property in the path of a reviving urban area.
The building could be suited for coworking space. Or it could be converted to residential, since each floor has a kitchen and full bathroom. But there's also a lot of open opportunity around the property.
It’s at the edge of the Eastern Market district anchored by one of the largest public markets in the U.S. The market, which first opened in 1891, is six blocks of food, produce, arts, antiques, clothing and furniture, depending on the day of the week.
Detroit has started to reemerge after years of suffering from dwindling auto manufacturing and the city filed for bankruptcy protection six years ago. Motor City’s downtown, in particular, has gotten a big boost in redevelopment over the past few years.
32325 S. Coast Highway, Laguna Beach, California: $3 million
The property isn’t quite beachfront, but it’s pretty close. Second-floor spaces in the 1960s-era, 3,350-square-foot building have views of the Pacific Ocean.
It fronts the Pacific Coast Highway passing through Laguna Beach. A residential neighborhood is behind the office building. Most of the tenants in the building live a short distance away.
It’s had the same owner for 30 years and is self-managed. A new owner may need to do some cosmetic touching up. Rents, though, are below the going rates in the area, which leaves room for revenue growth.
