Friends Buy NJ Building to Save Café from Rent Hikes

Isreal Adeyanju, co-owner of Kọ Café in New Jersey, purchased the building housing his business with friend Samuel Osei-Afriyie to avoid rising rent costs. The pair, along with investors, bought the 3,600-square-foot property for $740,000. They own 85% of the building, which includes two apartments above the café.

Since 2024, these units have generated over $100,000 through Airbnb rentals, helping pay down the mortgage. Adeyanju shared several tips for successful co-investment, emphasizing the importance of trust, having a game plan for expenses, and establishing clear management roles. The duo used a zero-interest credit card for renovations and eventually transitioned the apartments from short-term to long-term rentals.

When Kọ Café opened in 2023, Isreal Adeyanju was renting the space for $1,400 a month. The café serves West African cuisine, including coffee, tea, smoothies, sandwiches, samosas, and Nigerian meat pies. It attracts locals through community events such as open mic nights, live podcast recordings, and workshops on homeownership and career development.

When the 3,600-square-foot building, which includes two upstairs apartments, went up for sale, Adeyanju and co-owner Samuel Osei-Afriyie moved to buy the entire property. With the help of investors, they purchased the building for $740,000. They own 85% of the property, while their investors own the remaining 15%.

Adeyanju cited specific financial motivations for the purchase. "Part of the reason we bought the building was so our café wouldn't face a sudden rent hike," Adeyanju said. "There are several cafés in Jersey that have closed because their rent doubled."

The property purchase provided a secondary revenue stream. Since 2024, the two apartments above the café—both three-bedroom, two-bath units—have been rented short-term. These rentals brought in more than $100,000 through Airbnb.

The earnings have been instrumental in maintaining the business. "The money we make from Airbnb helps keep our business alive," Adeyanju stated. "It's not about getting rich quick; it's about being able to sustain ourselves, this building, and build wealth."

Currently, bookings typically last 28 to 30 days, averaging between $140 and $175 per night. This transition from short-term stays to longer-term rentals has stabilized their income.

Adeyanju offered advice for those considering similar investments. He noted that purchasing a mixed-use property involves more money and red tape than a traditional home, but partnering with a friend can mitigate stress.

Trust and Financial Planning

"I do think that it feels better when you're investing in real estate with somebody else," Adeyanju said. "You're willing to take on more of a risk because you know that if something goes wrong, somebody is going to be there with you."

To cover expenses, the pair opened a zero-interest credit card for initial renovation costs and maintenance. They rely on reserves to cover ongoing costs, avoiding out-of-pocket payments. Adeyanju emphasized that trust is the foundation of this arrangement.

"When buying a property with a friend, I think the first and most important thing is trust," he said. "It was critical for us—especially in the beginning—because a lot of capital was being pooled into a shared account."

Defining Roles and Vision

Initially, Adeyanju and Osei-Afriyie shared management duties. However, about six months in, Adeyanju took on most of the day-to-day work due to his flexible schedule. "With the management mostly falling on me, we agreed to negotiate a management fee or a fee structure that compensates for that sweat equity," Adeyanju said.

Finally, sharing the same vision is critical. "We had to understand each other's individual goals," he said. "Sam and I both recognized that this was a key investment, not just for our future portfolios, but also to ensure the long-term security of our café."

By purchasing their commercial space, Isreal Adeyanju and Samuel Osei-Afriyie secured the future of Kọ Café while creating a profitable real estate asset. Their experience demonstrates that with a solid game plan, clear role division, and mutual trust, co-investing in property can be a viable strategy for business owners facing uncertain rental markets.