1000 Highway 101
Aromas, CA 95004
Red Barn Flea Market · Retail Property For Sale

Mahoney & Associates is pleased to offer for sale for the first time the famous Red Barn Flea Market. The market has been successfully in operation for 40 years, in a most convenient location just off of Hwy 101 in Aromas, California. This ideal location is at the midpoint between Salinas and Gilroy, California. Within the last two years, a new offramp from Hwy 101 has been completed which facilitates easy ingress and egress to the operation. This business sits on 28+/- acres of land. Both the business and the real property are being offered for sale. The operation requires 600 parking spaces, yet the property has 723 spaces. The owner/operator of the operation recently passed away and because of a contested will there is a receiver in place who is charged with liquidating the asset. It is possible that court confirmation of the sale may be required. At the present time, the capacity of the operation has been limited in the number of merchandising stalls that are allowed, as well as being limited to being open for business on Sundays only. This has been dictated by the County of Monterey by virtue of infrastructure deficiencies. Specifically, the operation requires the installation of a waste treatment plant and the construction of permanent restrooms. In addition, the water system needs additional pumps to generate sufficient pressure to operate the existing sprinkler system in the barn interior. At the present time, the barn is not in use. Many elements and variables have been used in the pricing structure of this offering. All buyers must satisfy themselves on all of these assumptions and projections. The elements considered in the pricing are as follows: - This is an all-cash transaction with no seller financing available. - An all-cash offer without the need for financing will be favored. - Also considered will be the length of the due diligence period and closing. - The current owner is in the process of developing plans for the waste treatment plant, facilitating the application for this building permit. This permit must be obtained by June 2020. - The estimated cost for this treatment plant including restrooms is $1,600,000. - The cost for the pumps to enhance water pressure is estimated at $600,000 - Because of these deficiencies, the county has limited the operation to be open on Sundays only. Once these upgrades are completed it is anticipated that a Saturday operation will be allowed. - For the past year of operation, the facility has been limited to 137 merchandising stalls all located outside the barn. - As of June 1, 2019, this has been raised to 210 stalls. - When the deficiencies have been corrected it is anticipated that a total of 320 stalls will be allowed, with 279 on the outside and 50 inside the barn. - In analyzing the proforma income and expenses the actual numbers for the operation from July 1, 2018, until June 30, 2019, were utilized. These numbers were then adjusted to reflect the potential of the increased number of stalls and the inclusion of the Saturday operation.