Firstly, we need to optimize the specific site in terms of sales potential. Without the top line sales we have a less than optimal situation for the owner.
- Research. Review market area(s) for maximizing potential sales opportunities. Locate and present feasible site options to client that meet site parameters.
- Identify Site Parameters. Visibility, square footage, seating capabilities-interior & exterior, ancillary requirements such as storage, management office, et al; parking, proximity to nearby offices, residential, and shopping. Work with Client to evaluate these essential requirements. Arrange site visits and Landlord meetings. Meet with Client as often as required.
- Occupancy Expenses. Evaluate rent and NNN/CAM expenses in terms of conservative sales projections.
- Allowances. Review the estimated build out cost and determine what the landlord’s tenant improvement allowance should be to fit within Client’s sales projections.
- The second part of the allowance package is the “Landlord Work Letter” which is what the condition of the space would be in terms of MEP and some general construction elements.
- Letter of Intent (LOI), Landlord Work Letter. Develop documents, present to Landlord, and Negotiate business points with Landlord.
- Will need Business Plan and Financials for presentation to Landlord to gain acceptance.
- Lease Review/Negotiations. Work with Client’s Lease Attorney through the lease review process and assist with finalizing lease negotiations on behalf of the Client and with the Landlord’s Lease Attorney.
- Existing Restaurant Space. Existing: Objective would be to obtain a new direct lease agreement and to negotiate for a tenant improvement allowance with the Landlord. In this instance, there will be three layers of negotiations:
- with the seller of the business;
- the landlord for a new direct lease agreement; and
- the landlord to secure a tenant improvement allowance.
Real Estate Development
Scope of Services
Whether one is trying to find a new or used location we can be of assistance because of the many real estate agents and real estate developers we are connected to. We not only source out the “right” location for you but we negotiate the business deal points and assist you in the legal parts of a lease via experts in this field. As a restaurant owner you want the “best deal” and because of our experience you will be ensured this. It is imperative you correctly structure the debt and equity portions of your new restaurant. One of the most common failures in the restaurant business is the leveraging of one’s debt.
Our belief is that you should forecast conservative sales with annual moderate increases in your sales and structure your debt accordingly. Over the years we have taken a very conservative approach because we want to ensure the restaurant can pay its debt and still make a reasonable profit. We are affiliated with a number of financial institutions to include banks, leasing companies and short term lenders. In addition we have access to investors who have restaurant investment experience.
Buying an Existing Restaurant
How to buy an existing restaurant? How to acquire a space to fit your restaurant’s concept? How do I sell my restaurant? How do I lease my space to a successful restaurant.
Starting a restaurant can be a daunting task to say the least. It is difficult to know how big, how much it is going to cost, what I can afford, how long will it take, and the list goes on.
First of all, RGI, because of their long experience in the marketplace from the early 70’s has a keen sense of how to find the “right” real estate for the client. It begins with an interview of the client to determine area of town, capital budget, new vs. used, how big/how many seats, type of restaurant, etc. We then scour the market place to look at various opportunities whether they may be listed real estate or not. Sometimes we know restaurants that are not listed on the MLS but are available for purchase. Sometimes vacant real estate is available as well but not listed on the MLS.
In addition a number of people/clients who have a desire to sell their restaurant or to lease their available space have used RGI to aid them in this endeavor. We are able to assist in the selling/leasing process because of our numerous connections within the industry.
We welcome the opportunity to serve you in finding exactly what suits you and assist you in enjoying long term success because you picked the right location and right deal.
Contact Arnold at 206.679.1037 for further discussion.