What is the impact on your jv structure relative

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Question: This next week is all about risk assessment, NOT predicting the future. It is impossible to determine today if and when Harford County will choose to exercise its early termination clause. All that we do know is that the risk is real. This week, we will use the FO model to evaluate the impact of an early termination of this key tenant on the targeted returns. Ask yourself...at the stated purchase price and assuming Harford County invokes the early termination clause...can you survive (pay more equity into the deal to service debt and pay TI's and LC's) this downside scenario? If the answer is "yes" then how will your lender view this risk when sizing the loan? You may decide based on this analysis to change your offering price or adjust your repositioning plan for FO. Finally, what is the impact on your JV structure relative to this risk?

Reference no: EM133633394

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