Deal Structuring Advice
I'm currently working on an off-market portfolio deal in NYC valued around $300MM. It's a complex deal involving a cash-needy non-profit looking to structure a 5-year sale-leaseback scenario. They need the $300MM upfront and 5 years to wind down their tenants, The main issue is that the non-profit will lose it's real estate tax abatement (doesn't pay taxes) which will reduce any sort of cash-on-cash my company would receive below the line. I originally thought of structuring it as a 5-year $300MM loan that could yield 3%-5% per annum, but the group cannot add additional debt on the portfolio. So, with all this information I gave you guys, can anyone provide any insight on how to do a 5-year sale leaseback without losing the RET abatement.
Master lease variance?
Just to make sure I understand, the non-profit will lose the real estate tax abatement due to the sale of the fee interest?
we specialize in SLB financing - can you send more info on the deal via PM?
Isn't this a question for legal?
Interesting. In a similar situation. Can you give any insight on what happened?
Do it like Islamic finance. Make a lease-back that has a built-in IRR of, say, 5%.
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