I am curious to understand whether a searcher could personally acquire a real estate property, and have an arm's length lease with an operating company that was owned by a Traditional Search Group of Investors.

Would the investor group need a pro-rata participation right in the acquisition of the real estate? I would imagine that might become challenging if the searcher decided to fund the RE acquisition with a 504 loan.

Would the investor group have the right to block this transaction? In this specific instance, the RE expansion would be to expand capacity for growth -- but the purchase of the RE would result in an increase in rent costs to the operating business.

Curious to understand how to navigate a real estate acquisition that has potential conflicts of interests, with rational reasons for property expansion but differences in appetite for capital allocation priorities. What is best practices for a traditional searcher and how to handle RE acquisition with their opco investor group?