28M Historically Important Fine Art. Lower Price 8.9M. Can be Split Up
Market Pieces-Gallery/On-Line/Domestic & International Shows
included in asking price
included in asking price
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$28M in HISTORICALLY IMPORTANT FINE ART Offered at $8.9M or can be split up and will consider piece by piece offers. He prefers to split the Portfolio between the 15 Museum Quality Paintings and the other 2000 he has in inventory.
15 MUSEUM QUALITY Works Ranging in Value from 250K to 8M each, plus almost 2000 more paintings worth between 2K and 150K each. The Seller is known and has a good reputation in the Art Community and all of the pieces have their own Provenance.
The Seller estimates that his entire inventory has a current retail value of 28M dollars which he will offer for 8.9M dollars. Why:
He has been selling about 700K worth of the small pieces a year out of a warehouse by appointment only for years. The average sale is 9,000 each. There are records to verify this. Even if you discount that to be conservative to 7,000 each. The 2000 pieces that are left multiplied by 7,000 is 14,000,000 in sales. This is mostly international art that are almost entirely high end oil paintings.
He has held onto the large museum quality pieces for both personal collection reasons and because he believed over time they would appreciate. One of the museum quality pieces the Seller has been told could be worth 8M to 10M retail on its own. It could be a featured piece in a major museum in Russia. Compare that to the value of almost every other major countries signature pieces. Russia is slowly catching up and getting the respect it deserves for its increasingly famous painters. He believes that a buyer of these pieces will have them on a major museum wall somewhere with their name on the collection allowing them to appreciate, get recognition along with the owner, and be able to sell them if so inclined.
Seller believes that there is the potential for a buyer to make 5M to 20M worth of “net profit” over the next 5 years off of this artwork 2 ways: 1) Buy just the museum quality pieces and get them scheduled over the next 5 years into a major art gallery exhibit where it gets noticed and you will have your name of the “loan” to the museum. This will typically lead to offers and should increase exposure, appreciation, and offers. Just holding onto these pieces should result in a very high rate of return over time. 2) Set up or add to a Gallery. He believes that the Gallery should be able to generate 2M to 3M in revenues per year allowing the Gallery owner to add inventory over time that fits his/her personality. Just 2M in revenue will create a very nice profit for an owner every year. He believes a 3,000 square foot location in a high traffic high end area of Denver would work. Cherry Creek North seems like a great area for a ground level Gallery on a busy block that would cost approximately 48 dollars a square foot triple net. This will have a cost of approximately 175K per year, plus the cost of two full time employees, etc. Total cost of no more than 375K per year. That leaves a huge profit and it will be fun.
Seller has recently finished cataloging the museum collection and is planning on getting them scheduled into a major museum exhibit. This should automatically increase both their value and exposure. He has acquired these pieces throughout his life and has not put them up for sale until now. They are very emotional and historical pieces of original art. To be clear, this is a business opportunity to make a lot of money through selling this art for profit. This art is historically important high end fine art that you currently can’t find in any art gallery in Colorado or the United States. He knows this art, the artists in many cases, the history, etc. If you love art and making money in what is a very fun business to own, please watch the video presentations of the art by the owner including individual videos of the museum quality paintings.
He is asking 8.9M for the 28M in retail value artwork which is a great deal for a buyer BUT he kno
About the Business
Contact the Seller
The seller has a warehouse with a showroom in a Mountain Resort and wants to open a Gallery in Cherry Creek.
The Seller has not had a retail location for years but has accumulated many customers over the years who still purchase from his collection. He has sold almost 500K of artwork in 2017 as of October 1, 2017 by appointment only.
He believes a 3,000 square foot location in a high traffic high end area of Denver would drive sales into the millions of dollars a year. Cherry Creek North seems like a great area for a first level Gallery on a busy block and would cost approximately 40 dollars a square foot triple net. This will have a cost of approximately 140K per year, plus the cost of two full time employees, etc. Total cost of approximately 300K per year. Plus, his assistant of 16 years who knows all of this art very well and works full time in his warehouse will consider a job offer that is partially commission based to move to Denver or wherever to work in the gallery. If the new owner wants to keep the warehouse in the Mountains open, she will stay in the Resort or split her time. Her knowledge and personality will sell these paintings. The Seller and she are both experts on each piece. Plus, he will commit to making occasional trips to do Gallery Shows so he can help with showings featuring specific art/artists and tell the history and explain how emotional, rare, and valuable this art is.
Growth & Expansion:
He believes that the Gallery should be able to generate 2M to 2.5M in revenues per year allowing the Gallery owner to add inventory over time that fits his/her personality. Just 2M in revenue will leave a nice profit for an owner every year. To put it in perspective, the 25 most valuable pieces are worth at least 12M themselves and would be featured on the walls of the Gallery helping visitors to learn and appreciate the history and quality of the art making it easier to sell the smaller pieces in the overall collection. He also believes that the Gallery owner could sell copies of the 15 paintings that belong in a museum helping to keep them together making them even more valuable as a collection that can be loaned to museums periodically. High quality copies like Lithographs and Serigraphs can sell for a very nice profit. The Buyer will not need any permissions to do this. All rights to every piece of art is owned by the Seller. A Buyer could always ensure a great start by selling only a couple of the signature museum pieces which could still be loaned back into the collection for museum shows. Museum quality art sells partially because of ego, increasing exposure and therefore increasing appreciation and value, and because they are considered historically important. Once scheduled into a museum, it should be easy to sell the whole collection at once for a very large profit.
About the Sale
- Reason For Selling:
The seller is 73 and has major family commitment in Texas so he wants to retire.
He is also open to flying in for special shows for up to 2 years, potentially keeping some ownership (keep some art), and/or will offer some on consignment.
- Seller Financing:
Seller will be Flexible
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