Seeking Partners – 10% Cap Rate, 10yr. NNN

[Brandon Leo]

Hi there,

I'm not on BP a ton, but I really admire this community. I am a small business owner with real estate as part of my overall strategy and I'm looking for advice on where to find a commercial real estate investor for a sale/leaseback.

I'm in the middle of acquiring a 30-year old company in Connecticut that owns it's real estate. I'm looking for a commercial real estate investor to purchase 90% of the real estate and 10% of the business. My partner and I would own 90% of the business and 10% of the real estate. This allows us both visibility into the financial health of the underlying assets.

I'm offering a 10% Cap Rate with a 10-year NNN lease.

We will be making five acquisitions over the next five years of businesses with owned real estate, and optimizing them into a larger parent company.

We're forecasting an estimated annualized CoCR of about 24% over five years.

[John McKee]

What kind of company, does the lease have any rent bumps,  what are the gross revenues, what kind of business?, How much experience do you have, how long has the business been around, what is the price?  Is this 10% of all business going forward?  How many square feet is the building?  How easy is it to rent out?  I have about 30 more questions, but you get the idea.

You will have to personally guarantee the lease, and it may be easier to sell the real estate at 100% to a real estate investor as opposed to a sale/lease back with a percentage of the business.