We have looked at this building and it appears to be out of our price range. Our current budget to make this sustainable for land+construction is in the 1MM range and 500k startup operating capitol and this is assuming we can take advantage of the 501c3 tax exemption (or be below 20k annually on property taxes). The challenge 3567 NW RANDALL WAY is that the asking price is around 5MM (from memory) and it is a 12,000 sf building meaning its slightly less then the 14,400 sf space for a standard rink floor at 80×180 and its in one of the most expensive areas of Kitsap. If we run into any snags on getting a property tax exemption and even with it sitting vacant the county is taking 78k in property taxes for that location vs the ~12k that skate-land was paying. Unfortunately given the margins from Skateland the annual property taxes need to be in the 10-20k range all in (assuming we can’t get out of them as a 501c3) with a debt load in the 1.5MM at the top end.
I hope that helps explain why we haven’t just jumped on leasing/buying a large vacant retail spaces in Silverdale. If we lease there is no path to getting the tax exemption from what I understand. In already talking to a number of large brick and mortar building managers we haven’t been having success in shooting for short term leases with a large portion of the lease “donated”, but we will press on. Getting into a Triple net lease at north of $1 per sf (realistically $5-$7 in Silverdale) and a 100k-ish tax bill simply isn’t sustainable for a rink that has an estimated gross in the 250k-275k annually range. Further most of the see spaces have week roof structures so would need to be almost totally rebuilt to eliminate the posts (estimate in the 200k-400k range depending on structure and dimensions) which on a lease is simply out of the question especially on a short term lease (in our opinion). If you have a different opinion and math please by all means reach out to us at realestate@skatetown.org so we can understand the alternate vantage point.
