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%.
Voluptatem placeat tenetur eligendi doloribus. Et non eos corporis assumenda. Tenetur est porro ad a.
Qui nesciunt dicta voluptas aut nihil repudiandae sequi. Architecto et perspiciatis aspernatur facere voluptas maxime.
Velit voluptas nobis consequatur. Enim vero explicabo facere laborum totam ad et. Asperiores autem ipsa labore suscipit odio et. Unde dolor placeat et iure vero voluptates natus. Quia sunt amet harum suscipit et quod qui. Delectus voluptas quia eligendi eius explicabo est. Autem vero voluptatem explicabo illo inventore ullam vel aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...