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Updated over 6 years ago on . Most recent reply
Cook county property tax risk
I am looking at a strip mall with almost 12% property tax on Market value (Chicago). With only two tenants occupying 6 store fronts and each with two years left on the NNN lease With 5 year renewals. They are both long term tenants. I can get it for almost 13 to 15% cap rate but I'm concerned about property taxes I would be on the hook for if any of the tenant leaves. Property tax is about $100k. Any ideas on how I can construct purchase agreement to limit my risk? Appreciate any feedback on purchase would also be appreciated. Thank you