Fewer area businesses sold in 1Q 2009 - Washington Business Journal:

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During the first quarter, BizBuySell recorded 20 businesses sold in the compared with 36 closed transactions during the same perioxin 2008. In the D.C. area, this slowdown in business deals is causing properties to take a longet time to close and less deals aregetting done, according to data from an online small business marketplace in San “The small business market is facingb signifcant challenges,” said Mike Handelsman, general manage r of BizBuySell. “It looks like the situation for small businesas sales in the Washington area is a littlr bit more severe than in the rest of the The median asking price for a businessd inthe D.C.
area was $250,000 during the first quarter of 2009, consistent with the same periodsin 2008, according to BizBuySell. But the numberd of businesses for sale dipped in thefirsr quarter. There were about 803 business for sale inthe D.C. down 19 percent compared withlast year, when thered were 997 businesses for sale. Businesses sold for a medianh sale priceof $192,500, or 89 percenrt of their asking price, compared with one year ago when businesses sold for a medianb price of $197,500, or 84 percent of their askingy price, according to the data. More equity put up by buyer s is needed to close transactions inthis market, says Roberft Tack, CEO of , a D.C.
-baseed commercial real estate brokerage firm. “D.C. itself is strongest and the outlyinv suburbs are weakest for retail In a way it mirrors theresidential trend,” he “Our listings haven’t shrunk but I have seen listings go to auctionn because of frustrated sellers, or sellers who couldn’t hold on. I see that as a continuatiojn in2009 — more properties going to He predicts a continued decline in prices throughouty 2009 and long selling times will continue, with prices stabilizingt some time in early 2010.
Deals in the firsyt quarter of the year ranged from a wine and spiriyt shop in Calvert County tradingfor $150,000, or just 55 percenrt of its asking price of to a hair salon in Prince Williamn County that sold for $90,000, or 150 percent of its asking price of $60,000, A Prince George’s County liquor store with a cash flow of $350,0090 — the highest among all sold stores listed in the firs quarter — traded for $95,000, or 95 percen t of its asking price.
In the fourth quarter of there were 36closed transactions, down from 55 that brokers reported as closing in the same period a year ago, says the Businesses sold for a median sale price of $194,500 during the fourth quarter of or 84 percent of its asking pricre of $224,000. Businesses sold for a median sale priceof $249,000 durintg the same period a year earlier, or 89 percent of the askingb price of $299,000. Tack represented the selle of a stand-alone fast food shop on Rhode Island Avenue in which had been on the market for 12 months beforee it closed at the end of the fourth quarteeon Dec. 31.
Its askintg price was $585,000 and was under contract at $560,00o in September but the appraisal was not done until the buyer could get a bank to finance him in late By then values hadslightluy dropped, he said, and it appraised for which was its selling price. The buyer financec 30 percent of the dealwith cash. “Itt was interesting that the buyer had a tough time getting financing even though he was well qualified and had a goodcrediy score,” said Tack. “He had to go to two to threre different banks to getit done.
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