Purchasing a building to lease to operating company

searcher profile

June 10, 2019

by a searcher from Harvard University - Harvard Business School in 1970 Walton Dr, Burlington, WA 98233, USA

After two years of operations we need to relocate our operations.  Currently we are leasing from a quasi-public entity.  We've entered into a purchase and sale on an existing building that we will retrofit to our needs.  

We are purchasing the building through a new LLC that is distinct from the operating company.  The equity will come principally from the investor group that funded the company purchase, but not exclusively and not in the same proportion.  Specifically, my ownership in the building will be less than it is in the company.  The investors are requesting clarity on how we will govern the relationship between the operating company and the building ownership company.  

Does anyone here have relevant experience to this situation?

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commentor profile
Reply by a lender
from University of Missouri in St. Louis, MO, USA
We have some new market tax credits for this type of project. Can you email or PM me the address? IF in the eligible census tract the interest rates are incredibly cheap for this type of project. Also could include TI for your tenants....again depends on the address/census tract
commentor profile
Reply by a searcher
from University of Chicago in 20 2nd St, Jersey City, NJ 07302, USA
Prob just get a broker opinion on fair mkt rent and increases. There should be a landlord owner board who votes and approves all leases if there is concern of favoritism.
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