Alternatives to Triple Net Lease

by a searcher from Rice University - Jesse H. Jones Graduate School of Business

2 weeks ago

Hi all - looking for some creative options/thoughts for moving the physical address of our business. 

Our current landlord is under agreement to sell the real estate where our SMB is currently located. Prospective buyers want us to sign a 5 year NNN lease which we aren't looking to do for a number of reasons. Ideally, we'd like to purchase the real estate for the new address as opposed to renting elsewhere. Looking for some creative ideas on how to make that happen from the community. What are SBA options for real estate purchase? Anything we should specifically be looking out for?

Thoughts I've had:
1.) Purchase a turnkey warehouse outright - easiest, most straight forward option
2.) Buy a piece of land and build out a basic warehouse with a small carveout (~1000 sq ft) for and office 
3.) Creative rental agreement with a new landlord



Looking forward to hearing what others have done.
Thanks

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searcher from Northwestern University - Kellogg School of Management

following

2 weeks ago | like reply | 0 likes

lender from Eastern Illinois University

Austin, we would love to have a discussion and go over the various options that exist in more detail. We do quite a bit of financing for owner-occupied properties. As already mentioned you have both the SBA 7A and SBA 504 options available to you. There are benefits and negatives with both options that we can go over. Much of it will have to do with the cost of the new facility. Construction projects are always a bit more difficult and time consuming, so if you plan to go that route you would want to be sure you have the time to dedicate to it. You can reach me here or directly at --@----.com

2 weeks ago | like reply | 1 like

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