La Vigne Wine Bar

Commercial Real Estate Opportunity in Downtown LaGrange, KY

111 N First Ave, La Grange, KY. 40031

Real Estate: $375,000

Business & FF&E: $50,000

Sq Ft: 1,880

Download the Offering Memorandum Here: https://www.gokeysource.com/111n1stave

This is an in-depth analysis of an attractive commercial real estate property and business in downtown LaGrange, KY. Currently operating as La Vigne wine bar, the property features 1,013 sq. ft. on the first floor and an additional 800 sq. ft. on the second floor. This document examines four distinct models for potential buyers or investors, incorporating detailed revenue projections and annual lease costs per sq. ft.

Option 1: Owner-Operator – High-End Wine or Bourbon Bar

This option involves an owner-operator purchasing the building and maintaining the existing wine bar operation or transforming it into a high-end bourbon bar. This assumes the entire building will be used for retail wine bar purposes. The only expenses would be wine and liquor purchases from a distributor and the cost of obtaining a liquor license. Staffing costs can be lowered with owner involvement in the daily operations. Suggested hours of operation are Thursday – Saturday from 6-11 PM and seasonally on Sundays. 

Wine/Bourbon Bar Projected Revenue: 

Packaged Liquor Sales: 

Tasting/Event Room Revenue: 

Expenses: 

Option 2: Owner-Operator – Mixed-Use Space

An owner-operator purchases the building, maintains the wine bar on the first floor, and rents the second floor as an Airbnb or apartment. There are few long-term and short-term rentals available in downtown LaGrange. Combined with increasing tourism, STRs are desirable to travel nurses and those visiting the Bourbon Trail and local attractions. Oldham County tourism generates over $46 million in annual revenue (2022) and growing. 

Revenue Projections: Up to $47,299 Gross Revenue from rents

Second Floor apartment lease: Airbnb – $14,000 – $24,000

First Floor lease rate: $23 per sq. ft. (1,013 sq ft) – $23,299

Option 3: Investment – Lease to an Operator 

Option 4: Investment – Mixed-Use (Lease to an Operator & Airbnb Rental)

The La Vigne Historic Building in downtown LaGrange, KY, offers a lucrative commercial real estate opportunity with versatile revenue models. Through careful consideration of revenue projections and lease costs, stakeholders can make informed decisions based on their financial objectives, ensuring a strategic and successful investment in this vibrant downtown locale.

Success Story: Gallery Square Lofts – Turning Challenges into Opportunities

In the vibrant heart of Louisville, Gallery Square Lofts stood as a testament to the complexities of real estate. This non-warrantable condo building, constructed in 2007, presented a unique set of challenges. With FHA and conventional loans off the table, buyers needed to explore alternative financing options like commercial loans, DSCR loans, cash, private money, or seller financing. The developer still owned 50% of the building in 2022, and pending litigation added another layer of complexity to marketing efforts.

The Journey Begins

Our journey with Gallery Square Lofts started with a bold move: selling a previously undeveloped corner commercial space. This initial success set the stage for what was to come. As residential leases expired, we transitioned to selling the units, focusing on off-market strategies and leveraging our network of agent relationships. We knew that to attract investors, we needed to highlight the building’s potential, particularly its zoning and the possibility of short-term rentals (STRs).

Overcoming Hurdles

One of the biggest hurdles was the building’s zoning and the need to update the Master Deed to explicitly allow STRs. This change not only provided buyers with confidence but also opened up new investment opportunities. We worked closely with local contractors to improve properties, staged units to showcase their best features, and used professional photography to highlight the stunning downtown views and off-street gated parking. Our creative marketing approach included producing engaging videos that captured the area’s growth potential and the unique aspects of the development.

Expert Guidance

Throughout the process, we advised our client on all aspects of the sale and marketing process, ensuring they were well-informed and confident in their decisions. Our expertise in navigating complex real estate scenarios, combined with our ability to negotiate effectively, was crucial in achieving market and above-market rates per square foot. This not only maximized our client’s returns but also set a new standard for the area.

Financing Solutions

We understood that financing would be a critical factor in selling these units. By partnering with a local lender, we were able to secure financing for many of the units. Others were purchased with cash or through owner financing arrangements. This flexibility was crucial in attracting a diverse range of buyers.

The Outcome

In the end, our team successfully sold a total of 14 units, with more than half of those sales happening off-market. We maintained transparency about the pending litigation and future HOA plans, ensuring that buyers were well-informed and confident in their investments. Our ability to navigate complex real estate scenarios, negotiate effectively, and provide tailored marketing strategies was key to the project’s success.

Key Takeaways

If you prefer a quick summary, here are the highlights of our success with Gallery Square Lofts:

• Sold 14 units, with over half sold off-market.
• Achieved market and above-market rates per square foot.
• Updated Master Deed to allow STRs, enhancing investment potential.
• Partnered with local lenders to facilitate financing options.
• Improved properties through staging and professional marketing.

Why Choose Us?

At Jonathan Klunk Real Estate, we’re not just about selling properties; we’re about turning challenges into opportunities. We pride ourselves on being fiercely loyal to our clients, providing honest advice, and going above and beyond to ensure a seamless real estate experience. Whether you’re a developer looking to revitalize a property or an investor seeking unique opportunities, our expertise in complex real estate scenarios, negotiation, and marketing can help you achieve your goals.

Ready to Explore Your Next Real Estate Opportunity?

Contact us today to discuss how our team can help you navigate even the most challenging projects.