gsxrpilot

Hangars for sale - 84R Smithville, TX

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There are nine box hangars 40x30 available for sale at the Smithville, TX airport. They are all occupied at the moment with renters. The lady who owns the hangars is going through a divorce, and would like to sell out. She's asking $40K each for them. I've been kicking around the idea of buying a few of them as an investment. But thought I'd throw it out here. They are available.

 

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1 hour ago, gsxrpilot said:

There are nine box hangars 40x30 available for sale at the Smithville, TX airport. They are all occupied at the moment with renters. The lady who owns the hangars is going through a divorce, and would like to sell out. She's asking $40K each for them. I've been kicking around the idea of buying a few of them as an investment. But thought I'd throw it out here. They are available.

 

Check to see what kind of land lease you can get, the west side hangars at my airport are slated for removal in 9 years, they values went to shit when it was anounced, I purchased my hangar afterwards for less than 3k, it's 1600sqft and I have the Mooney and the 172 in there

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Check to see what kind of land lease you can get, the west side hangars at my airport are slated for removal in 9 years, they values went to shit when it was anounced, I purchased my hangar afterwards for less than 3k, it's 1600sqft and I have the Mooney and the 172 in there

I’ve been told, but will verify with the city, that there is just over 30 years left on the land lease. Land lease is $192/year.

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What's the ROI on that 40k?

I would offer a bit less to buy several of them for cash. After tax return of 7% or so.

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Not bad but commercial office / warehouse space can do you much better if you were looking at strictly the financial aspect. We put 20% down on our buildings, have them on 15 year schedules, and roughly 1/3 of our gross rental income is free cash flow. Quick math on our most recent purchase has us at 22% ROE.

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26 minutes ago, gsxrpilot said:


I’ve been told, but will verify with the city, that there is just over 30 years left on the land lease. Land lease is $192/year.

We were at $0.15 sgft and they upped it to $0.25, the city has a head full of ideas and shit for brains when it comes to aviation, 5 months ago everyone on the west side got eviction notices and had less than 5 days to vacate, regardless of the leases that were in place.It drives me nuts dealing with them but I might buy a few more for rentals.

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Shame there aren’t any instrument approaches to the airport. Or is the weather usually not an issue in that part of Texas?


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48 minutes ago, Marauder said:

Shame there aren’t any instrument approaches to the airport. Or is the weather usually not an issue in that part of Texas?


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No, it's a shame. On more than one occasion, I've shot the RNAV to 3T5 and then done a "Circling Approach" to 84R. 

It really does need an instrument approach.

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At over 6amu each year in NJ... for a T hangar...

I could really use a commercial real estate lesson from NJmac... :)

Best regards,

-a-

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11 hours ago, carusoam said:

 

I could really use a commercial real estate lesson from NJmac... :)

 

Im just learning as I go.  Don't have much wisdom to share yet.  Sorry. 

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There's nothing like building a hangar to make one appreciate how cheap it is to rent!

 

Our airport is attempting to have owner funded 60X60 hangars built. Although much larger than I would want, I sat in the meeting to listen to the cost estimates. For 6 of these hangars, the cost of the building, land improvement and systems (not sewers, heating or cooling - just the electric service to the building, water to the building) came in at $1.86M. The airport manager felt they could be built for less. I found that interesting since the airport built brand new hangars in 2016 for $1.7M and the cost of materials are already higher due to tariffs on the steel and aluminum. Even if he could get them built for 1.7M, that is $283k per hangar. The 60X50 hangars rent for $1200 per month. So it would be 20 years just to break even on the construction.

 

Although the potential builders would be responsible for all land improvements and utilities, the airport would also charge $140 per month (with an inflation escalator) for the land lease on the 40 year contract.

 

Renting is indeed cheaper...

 

 

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Like everything else in the CBMooneyLifestyle... it is unlikely to be brand new and meet the rest of the CB requirements...

one day... the house on an expensive piece of dirt can be traded in for a nicer hangar home on a less expensive piece of dirt...

I haven’t captured my 2k’ grass strip skills yet...

Things to work on... :)

Best regards,

-a-

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2 hours ago, Marauder said:

Although the potential builders would be responsible for all land improvements and utilities, the airport would also charge $140 per month (with an inflation escalator) for the land lease on the 40 year contract.

Renting is indeed cheaper...

Building on your own property with the possibility of eventually selling could make building a better deal financially...long term.

However there is an intangible "pride of ownership" factor that can't be quantified.

IMG_5812.JPG

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$1.86 million for a basic 3,600 sq ft shell? WTF? That's nuts. One can get a new house, far larger than that, with land and in nice neighborhoods, for well under that. A full house, not a shell.

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17 hours ago, Mooneymite said:

Building on your own property with the possibility of eventually selling could make building a better deal financially...long term.

However there is an intangible "pride of ownership" factor that can't be quantified.

IMG_5812.JPG

Do you ever run into issues with car traffic blocking you taxiways?

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39 minutes ago, Wayne Cease said:

$1.86 million for a basic 3,600 sq ft shell? WTF? That's nuts. One can get a new house, far larger than that, with land and in nice neighborhoods, for well under that. A full house, not a shell.
 

That price is for 6 X 3,600 sq ft hangars. Works out to over $300k per hangar. Your point is still valid. The cost for these individual hangars is more than for my house.

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10 minutes ago, Marauder said:

Do you ever run into issues with car traffic blocking you taxiways?

Hasn't happened yet....

Most taxiways are easements on private property for aircraft taxiing.  Pedestrians and golf carts are frequent (acceptable) violators, but heavier vehicles which might damage the surface virtually never intrude.

Hangars seem to be a form of individual expression.  No two are alike; all are customized/outfitted to the needs/desires of the owners.  Know you neighbor, know his hangar!

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That price is for 6 X 3,600 sq ft hangars. Works out to over $300k per hangar. Your point is still valid. The cost for these individual hangars is more than for my house.


Thanks, I missed that earlier. You're right, that it's still a lot for a 3,600 sq ft shell at $300k.

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16 minutes ago, Mooneymite said:

Hasn't happened yet....

Most taxiways are easements on private property for aircraft taxiing.  Pedestrians and golf carts are frequent (acceptable) violators, but heavier vehicles which might damage the surface virtually never intrude.

Hangars seem to be a form of individual expression.  No two are alike; all are customized/outfitted to the needs/desires of the owners.  Know you neighbor, know his hangar!

I think you and I once spoke about airpark living. I am getting closer to retirement and for the first time my wife said "we should move somewhere warmer when we retire". I know we didn't get a chance to meet up the last time you were flying in the area. Let me know if you head up to the northeast again. Would love to pick your brain on airparks.

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1 minute ago, Marauder said:

I think you and I once spoke about airpark living. I am getting closer to retirement and for the first time my wife said "we should move somewhere warmer when we retire". I know we didn't get a chance to meet up the last time you were flying in the area. Let me know if you head up to the northeast again. Would love to pick your brain on airparks.

You are a wise man to "consider carefully".  Not all airparks are the same; each has a character which may/may not match your own.  Additionally, there are some huge pitfalls which you need to be aware of:  Who actually owns the runway?  Who pays for care/upkeep?  Are the roads privately maintained, or public?  Definitely look before you leap.

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20 hours ago, Marauder said:

 

Our airport is attempting to have owner funded 60X60 hangars built. Although much larger than I would want, I sat in the meeting to listen to the cost estimates. For 6 of these hangars, the cost of the building, land improvement and systems (not sewers, heating or cooling - just the electric service to the building, water to the building) came in at $1.86M. The airport manager felt they could be built for less. I found that interesting since the airport built brand new hangars in 2016 for $1.7M and the cost of materials are already higher due to tariffs on the steel and aluminum. Even if he could get them built for 1.7M, that is $283k per hangar. The 60X50 hangars rent for $1200 per month. So it would be 20 years just to break even on the construction.

 

Although the potential builders would be responsible for all land improvements and utilities, the airport would also charge $140 per month (with an inflation escalator) for the land lease on the 40 year contract.

 

Renting is indeed cheaper...

 

 

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and that doesn't include insurance on the structure or property taxes (if any).  That's $78 per foot for unfinished space including large doors.

Any hangar of that size and price should at least include include water and sewer roughed in.

 

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