The broker feels the property can be acquired

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Reference no: EM13951585

The first broker offered a 3 year old, 35000 square foot industrial building for which the owner is asking $35 per square foot, or $1,225,000. The broker feels the property can be acquired for $1,000,000, or just under $30 per square foot. The building is under lease to a Class A tenant for $3.50 per square foot, or $122,500 per year, on a net lease basis. Based partly on the tenant's financial standing, a lender will provide a mortgage loan for 80% of the purchase price. The loan will be interest only (at 8.5%),a payable monthly, with the principal amount due in ten years. Seven years remain on a ten-year lease. The tenant has an option to buy the property for $1,200,000 when the lease expired, and is expected to do so. The building accounts for 90% of total property value. Funds are limited to $500,000.

Reference no: EM13951585

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The broker feels the property can be acquired : The first broker offered a 3 year old, 35000 square foot industrial building for which the owner is asking $35 per square foot, or $1,225,000. The broker feels the property can be acquired for $1,000,000, or just under $30 per square foot. The buildi..

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