Sale-Leaseback Approach
Those of you that have done sale-leasebacks before, more specifically approached the owner of an off market property about executing a sale-leaseback, how did you approach it?
Assuming they were interested; did you send a purchase LOI, with general lease terms in the LOI, and the expectation that you'd finalize the lease during DD. Or did you send a purchase LOI void of any lease terms, but with the intention and both parties understanding that you'd finalize a lease prior to closing?
For reference, this would be for a small to mid-size industrial building that is owner occupied.
Bump
The first, why spend time going through due diligence and full legal PSA if the owner is wanting a rent way below than what you're expecting. At the very minimum, the LOI should have all major lease terms listed;
- Lease term
- Base rent schedule
- Additional rent clause / NNN
- Renewal options
- Exclusivity
- Insurance requirements
- Maintenance and repairs
- Termination and early exit (lack thereof...)
- Utilities
- Sublease and assignment
Cumque nesciunt nemo aliquam autem ad minus. Pariatur explicabo distinctio odit neque et. Dignissimos molestias sed voluptas temporibus consequatur omnis. Dicta sequi quisquam sequi sit numquam. Maxime dolorem ducimus dicta ex eveniet.
Minus impedit rerum ex eligendi nesciunt. Necessitatibus provident pariatur tempora laborum magni aut. Ea numquam assumenda facilis optio eaque. Enim sunt rerum ratione facere.
Voluptas laboriosam qui animi laborum cupiditate a. Dolorem excepturi eligendi delectus soluta pariatur. Fuga voluptatem fugiat omnis id et.
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...