YLOA GENERAL MANAGER
After 15 years of renting office space, YSPUC had the opportunity to purchase one of the few commercial buildings here in the park. The property, located at 30950 Corral Drive on the corner of Corral and the Parkway, is known as the YLP Business Center.
It is comprised of 2.29 acres and two office buildings totaling about 2,100 square feet. The purchase price was $275,000 and represents a solid investment, as the total square footage is nearly two times the size of our previous office space with monthly operating expenses that are less than our current rent.
At this time we will not need all the office space and will continue to rent some of the units, which is expected to generate about $20K/year in extra income. Based on the purchase price, this represents a return on investment of about 6.3% — which is nearly three times better than the interest we have been earning from leaving these funds in the bank! As property generally increases in value over time, we expect an even better long term return.
The nearness of the property to the Fairway Café and Golf Course is also exciting as it could, in the future, provide us with extra parking or potential storage space for golf carts. Given the size of the property, we may consider other future potential uses as well.
In the near term, the property will require some updates as the roof and A/C systems will need to be replaced soon, however, these are one-time costs that have already been factored in to our acquisition costs and will be more than offset by the rent we receive in the first few years.
This was a rare opportunity and makes solid financial sense for YSPUC and YLOA. We are excited to complete the purchase and expect to be relocating our current YSPUC offices to the new location within the next 60 days.
We will keep you posted as our moving date grows near.