All - I came across a larger deal and wanted to see if anyone has experience with structuring this type of transaction. The business is doing $5M of annual EBITDA and the seller wants to also sale the real estate which includes the building on the site and some land that can be redeveloped.
My question is can you do conventional loan on the business (5-6x multiple) then do 504 loan on the real estate? My understanding is conventional has shorter amortization compared to sba not sure about commercial amortization for real estate financing.
Sale leaseback could be option but depends on the market rent to be paid for the real estate post closing. Given the redevelopment piece does anyone have experience doing sale leaseback in this scenario?
Also, where are interest rates currently for real estate? Thanks for the insight.