Commercial strip mall (occupied) and Business

1.0 Executive Summary

The purpose of this business plan is to showcase the acquisition of a 4-unit strip mall based in Merrillville/Gary, Indiana. Ray Zor-Cutz (“the Company”) intends to acquire the operations of this existing real estate facility. The Company’s CEO is Peter Smith.

1.1 The Operations

As stated above, Ray Zor-Cutz will acquire this property and Business within the next two months. It currently operates at 90% capacity. The Company, in order to ensure substantial occupancy, will continue to work with numerous commercial real estate brokerages throughout the target market in order to source tenants when vacancies occur. The business will also maintain a proprietary website that showcases tenant operations and how to contact the business to develop a retail store on the premises.

The business will employ a full-time property manager that will ensure the cleanliness and maintenance of the facilities. The Company will work with a third-party landscaping company to ensure that the grass, trees, and shrubs are properly maintained.

1.3 Mission Statement

Ray Zor-Cutz mission is to provide its business and tenants with a highly visible retail business and spaces that are seen by thousands of passers-by on a daily basis while concurrently keeping rents affordable.

1.4 Management Team

Rayshawn Elliot is a seasoned real estate developer and entrepreneur. He will be able to effectively acquire this strip mall as well as operating a seasoned business on site.

1.6 Expansion Plan

The Company, once this acquired property reaches 100% occupancy, may seek to add additional locations to its portfolio.

2.0 Company and Financing Summary

2.1 Registered Name and Corporate Structure

Ray Zor-Cutz
4061 Richard Hatcher Blvd.
Gary, Indiana

3.0 Real Estate Services

As discussed in the executive summary, the Company intends to acquire this highly trafficked strip mall that provides high visibility locations to tenants. The business will recognize substantial streams of passive income as long as the business holds the property. Most importantly, the Company will continue to engage in high impact marketing campaigns that will attract visitors to the location. During holiday months, the location will use seasonal decorations to further increase traffic.

4.0 Strategic and Market Analysis (N/A)

4.1 Economic Outlook

This section of the business plan will focus on the commercial real estate market, the tenant profile, and the competition that the Strip Mall will face as it completes the acquisition discussed in this document.

The US economic climate is strong at this time. Inflation rates are declining as are interest rates. Given that interest rates are now declining, the Company will have more affordable access to capital in order to carry out subsequent acquisitions in the future.

Even in the event of an economic recession, Ray Zor-Cutz will be able to remain profitable and cash flow positive. Merrillville surrounding is a population dense and wealthy market area of retailers and food service businesses.

4.2 Industry Analysis

Each year, real estate focused enterprises generate in excess of $600 billion per year in aggregate rental fees and related income. There are more than 2 million companies that are actively engaged in the acquisition, rental, sale, and remodeling of real estate.

4.3 Tenant Profile

Among tenants that will use the property for their commercial purposes, the following profile has been developed:

Restaurants, custom designers, healthcare provider, retailer, food service business, or legal services provider.

In the tenant profile section, you should discuss the number of businesses in your respective market, the population size, the population density, number of people that travel to strip malls, and other information related to your acquisition or development of a strip mall.

4.4 Competition

As with all real estate enterprises, this business will face ongoing competition from individual real estate entrepreneurs to large real estate investment firms seeking above rate returns on investment through commercial property.

5.0 Marketing Plan

Quite simply, the immensely visible nature of the Strip Mall allows the business to only maintain a modest marketing budget in order to have thousands of people visit the facilities on a daily basis.

5.1 Marketing Objectives

Develop relationships with regional business organizations that focus on retail industries.
Maintain an online presence that showcases the property and its tenants.
Use social media to showcase the strip mall during holiday seasons.

5.2 Marketing Strategies

The ongoing marketing required by the strip mall is relatively modest given the high visibility nature of the property. The business will continue to maintain strong relationships in the Merrillville/Gary area with commercial real estate brokerages that will place tenants at the facility.

The business will maintain a modest online presence via its own website and pages on popular social media platforms.

The Company, during holiday seasons, will decorate the property. This will attract additional shoppers.

5.3 Pricing

Each tenant incurs a rental fee depending on the size of their unit. These fees do not include utilities.

6.0 Organizational Plan and Personnel Summary

7.0 Financial Plan

7.1 Underlying Assumptions

The figures shown in this document are based on the following:

Ray Zor-Cutz will raise its rent by 5% each year.

7.2 Sensitivity Analysis

The Company’s revenues are only modestly sensitive to negative changes in the economic climate.

7.3 Source of Funds
Banks/Cash on hand