Table tennis academy for sale (Akron, Ohio)

Edited by wilkinru - 05/19/2023 at 5:13pm

I think social media views is probably realistically more in the 1-2 million range at best. I believe the majority of views in that exposure count are estimates attributed to highway signs and physical signage with actual human traffic as included in the information as part of the breakdown of where the views come from.

The problem with a bigger city is the rent becomes much more expensive. 

Good luck.  

Edited by ClimbK2 - 05/12/2023 at 11:58pm

Keep in mind that Samson never opened his center on Sundays due to religious reasons. A new owner could potentially at least add an extra day to the roster which could help. I’ve been there when he’s had 100 players in the league and the summer camps are very successful. I think anyone with the ability to do some financial analysis could turn it around with some simple changes honestly.

or maybe just buy a warehouse and convert it to tt full time.  Just like my club, Pleasanton TT.  The owner bought and own a quad-unit warehouse.  Converted 1 to full-time table tennis which is the current club, the other 3 rented out to sports-related, one for baseball, one for weight loss, and another also for tt.  I think if Samson can pool together a large amount of money and actually buy up a multi-unit warehouse, then he not only can lease out the other for rental income, and he can supplement the rest from his own club.

If a player/ coach of Samson's profile can't make it work it is difficult to think how anyone else would have a better chance, apart from if they don't mind operating at a loss. 

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cole_ely wrote: The explanation given makes sense to me.  People want to be able to pay off their loans early so you lose on refinance if the market does go down.  If it goes up you're left holding the bag.

by that logic no fixed rates will be available regardless of the length of the mortgage.  In Canada you cannot get out your fixed term mortgage without penalty

BRS wrote: NextLevel wrote: ThePongProfessor wrote: NextLevel wrote: Ownership or not, most corporate property is funded with debt, and most debt is floating rate and tied to interest rates.  Unless you own the property without any debt behind it, the interest payments have to be made one way or another. Are fixed rate mortgages not a thing in corporate real estate? Genuinely curious. No, not really.  It's not the best way for them to make money given how the market is inflationary and the transient nature of businesses - most loans have 5 year periods after which terms updated. 30 year fixed mortgages exist only because of government support.  Otherwise it's a bad deal for the lender because it has negative convexity.  If rates go down everyone refinances and your now high-yielding debt gets repaid and vanishes.  When rates rise nobody moves and you are stuck with below-market yields for 30 years.

i don't live in the States but it does not sould reasonable that the rates cannot be fixed , the terms are another matter

NextLevel wrote: ThePongProfessor wrote: NextLevel wrote: Ownership or not, most corporate property is funded with debt, and most debt is floating rate and tied to interest rates.  Unless you own the property without any debt behind it, the interest payments have to be made one way or another. Are fixed rate mortgages not a thing in corporate real estate? Genuinely curious. No, not really.  It's not the best way for them to make money given how the market is inflationary and the transient nature of businesses - most loans have 5 year periods after which terms updated.

Interest rates can be fixed, but commercial lenders typically do much shorter terms than the typical 30 year fixed mortgage on residential property.

If the owner had a 10 year loan that is due this year, then the interest rate on the new loan will likely double.

There's also property tax. Don't know about Samson's city, but state and local governments usually reassess property values periodically to get more tax revenue.

Voters in cities also vote to tax themselves to fund schools, police, etc. You can't predict that some years in the future a parcel tax gets passed.

Some good ideas above about turning the place in a multi sport facility. Maybe it will live on because an indoor place to play pickleball, etc. in the Ohio winter sounds attractive. If I was the landlord, I would be contacting experienced sports facility operators with this pitch.

koshkin wrote: I suspect that Akron, OH is not an ideal place to have a table tennis academy in the US.  It is amazing that Samson managed to pull it off for as long as he did, but the sport is just too small in the US, especially outside of CA and NY/NJ.

I suspect that Akron, OH is not an ideal place to have a table tennis academy in the US.  It is amazing that Samson managed to pull it off for as long as he did, but the sport is just too small in the US, especially outside of CA and NY/NJ.