What would you do in this scenario for an acquisition? 25MSubscribe
So a quick background on myself: I am in college, but come from a real estate family so these numbers are not "out of reach" as far as this case goes.
I came across an offering for $25M deal in retail space. It is in a good part of town with well known retail tenants. NOI is a little over 2M.
Won't be able to bite at this offer though until our own house is in order, but its a good learning experience for how we would go about financing it. Ultimately these are the EXACT type of deals I want to be doing when I am older: acquiring income producing "trophy assets" sort of speak in my hometown, as well as in my state.
Currently have about 14M in equity and 6M in debt in current real estate business, any idea if community banks could cough up 20M if 5M is put down as equity. What rate this would be at? Or is that simply not plausible?
Capital structuring for this deal would be appreciated. Ideally staying way from mezz financing, but again, I am a newbie still so I could very well not know what I am talking about.
Any insight as what to people in the industry would do given this scenario would be appreciated.
We are not very leveraged at the moment which is why I believe there would be a way to finance this without using a significant amount of other money for fronting the equity in the deal.
Curious to hear from you guys!