Commercial Financing Question - Posted by Chad

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Commercial Financing Question - Posted by Chad

Posted by Chad on March 16, 2004 at 22:51:31:

I have the opportunity to make a proposal for a build/suit for smaller office building (7,000 sq. ft.) for a publicly traded company. They are willing to go 10 years NNN with two 5 year renewable options for the lease. I have talked with another company that they currently lease from in another market and they said that they are great and I won’t find a stronger financial statement. I should be able to at least get a 10 CAP. The total project with land and building will be about $500K. I would like to do this without alot of capital. (less than 80% LTV) Is this possible and what other options or suggestions can someone give me?

Re: Commercial Financing Question - Posted by Jimmy Wallace

Posted by Jimmy Wallace on November 19, 2004 at 24:20:36:

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Re: Commercial Financing Question - Posted by miles

Posted by miles on March 17, 2004 at 19:06:57:

Chad,

I always want to learn more about how to structure a long-term lease with options. Since you mention that the lease is going to be 10 years with 2 five-year options, would you please let me know:

  1. When you say “10 year lease with x options”, does the tenant have to pay you rent for the entire 10 years?
  2. If the answer to #1 is yes, how does the two options affect the lease?

Or does it mean: First lease term is 10 years, after 10 years, the tenant have the right to renew (with predefined conditions)?

Thanks,

miles

Re: Commercial Financing Question - Posted by Jesse

Posted by Jesse on March 17, 2004 at 17:08:04:

I could possibly help. What are the complete details? Email your contact info.\

Jesse

Re: Commercial Financing Question - Posted by Nevel Glenn

Posted by Nevel Glenn on November 22, 2004 at 09:38:39:

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