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Horknut1 t1_j4wpb9c wrote

How much does this place have to clear a year to make it worth $14MM?

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TywinShitsGold t1_j4wu26r wrote

Take out the $5-6m in land, divide by 2.5. $3.5-4m in discretionary during a good year? If they’re valuing reasonably?

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peteysweetusername t1_j4wur5c wrote

But that’s 3.5mm in profit, not revenue. Assuming a high profit margin of 20% that would mean annual revenue close to 18mm or like $50k per day, that’s everyday, including the off season.

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Horknut1 t1_j4xami8 wrote

There's no way they're making that much in the off-season.

I don't understand how this price tag would ever be worth it.

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peteysweetusername t1_j4xlzby wrote

Exactly. I know it’s a storied place with Anthony bourdain working there in all but they’re clearly looking for a stupid buyer

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jtet93 t1_j55lgql wrote

They are gonna knock it down and build condos with bottom floor retail probably. The land is worth a lot.

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1998_2009_2016 t1_j4xjwi1 wrote

Nah, it’s gotta be revenue. $3.5m in profit per year is a price to earnings ratio of like 4. Reasonable pricing is closer to 20 generally.

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peteysweetusername t1_j4xmckq wrote

There’s real estate and a business valuation involved. Do you think at 20x ebitda value is fair?

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TywinShitsGold t1_j4xyxq3 wrote

Restaurants are ebidta plus owner X 2-3.

Zero chance they do 20%. Probably single digits.

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[deleted] t1_j4y1mh8 wrote

[deleted]

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ton_nanek t1_j4zyjg8 wrote

It is absolutely unreasonable to state this restaurant has the chance to make 3.5 million dollars in profit in a year.

The number of independent restaurants making that much profit in a year in the US is less than 5. That is unheard of.

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wobwobwob42 t1_j4xcgd3 wrote

Not enough to clean it properly according to my last visit. It's a dump.

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Freaky713 t1_j4wru5h wrote

Why is this flagged as marijuana? Lol

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lorimar t1_j505fds wrote

Aside from the pot in the title, that price is certainly high

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Firm_Love3598 t1_j4y2sbk wrote

They are closed in the off season. Real estate alone is worth $5-$6MM. Very few days in season when there isn’t a 30-40 minute wait for seating.

Last year when boat price for lobster was $4.50/lb a single 1 1/4 pound steamed lobster was near $50 at the restaurant. Approximately 1 pound of mussels ($2.50 cost) was selling for almost $20.

The business economics are quite different in Provincetown.

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BaconTerminator t1_j4xr7w6 wrote

$14 million ??? Holy shit it’s p town not seaport

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scolfin t1_j4ye8k5 wrote

I has been some time since Boston had a kosher deli.

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charlesfuckingmanson t1_j50c4tn wrote

For those trying to do the math, commercial real estate investment comes in two forms: cash flow and equity.

Almost all commercial spaces in Mass. are equity investments, many do not cash flow. In fact, the new owner may end up losing money every year if their exit strategy is to hold for a decade and sell.

The land and location will appreciate at a higher rate than standard cashflow operations could bring in.

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