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

Why is this flagged as marijuana? Lol

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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?

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.

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.

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

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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.

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

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

Cuz you would have to be high to pay that much

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

Restaurants are ebidta plus owner X 2-3.

Zero chance they do 20%. Probably single digits.

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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.

That asking price is a fantasy.

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

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.

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

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.

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