Postal Office Property ?

General Real Estate Investing
1

Hi,

Has anyone had any luck with postal office property ?

2

Not sure of the specifics of your question, but

I own 5 sites all in rural areas, towns under 5K. The p o signs long term lease (I have recently renewed one), other I purchased in the lease period.

They are not exactly cash cows, but money is like clockwork and they maintain the site. (they have their own maintenance people, janitors)

I am working on picking up a 6th site, again small town. 3 years left on existing lease. Id like to incorportate thier new lease into a new (small) mixed use development.

Hope that helps. Im happy to answer more ??

3

Hi Marko,

They are not exactly cash cows, but money is like clockwork and they maintain the site. (they have their own maintenance people, janitors)

How much money do you make with these properties ? Are they under NNN lease ?

Do they often not renew the lease ? Has that ever happened to you ? Why do you pick small towns to acquire postal office property ?

Thanks for your help !

4

For instance, i get about 2K a month NNN for a few of the sites. I have a relative basis in them of about 200K.

Its never happened to me that they did not renew the lease, but note that my leases are pretty long term, and in small towns where I have sites, its not a huge incentive for anyone to build new real estate.

Having said that, as I suggested in my post, I am planning on building a new building and soliciting them to move into it, keeping im mind that I have some power to move them out of the other building they lease when the lease expires soon.

I pick small towns because thats where the deals came from. In each case I bought from “little old ladys” whos fathers handed the buildings and leases down to them.

I dont know how things work RE post offices in bigger towns, ive never asked.