Commercial Real Estate Inheritance - Asking for Feedback

[Paul Post]

We in the process of settling this estate where we have inherited 1/6 of a commercial building, and have the opportunity to purchase another 2/6 from our siblings, and I was hoping for some additional help with my next step. We have obtained 2 broker opinions on the property and have settle on an average value of $850K based on these opinions. 50% of the property is owned by another family. On our side, both of our siblings have stated an interest in selling their interest, so it would cost us $283K out of pocket to obtain a 50% interest in the property. The gross rents collected are $4,400 per month for both leases, so our monthly income would be $2,200. Since both leases are triple net, the only expense we would have is insurance and maintenance for the building exterior for which we will set aside $307 / month. I calculate a cap rate of 5.34%, and a cash on cash value of 8.03%. Any thought and opinions on this deal are appreciated.

We have a meeting set with family owning the other 50% for Friday evening to help us evaluate the group we would be partnering with if we go through with the purchase. I am trying to compile a list of questions to ask them without sounding like an inquisition. Keep in mind that this history of ownership has been congenial and informal, maybe some would say unsophisticated in terms of real estate technical standards. Any advice on how to approach this meeting?

From reading and discussions I understand having an operating agreement between the multiple owners is advisable, but the history of ownership never had such a document.  Any advice on how to create one, and how to convince other owners this is a good idea would be very helpful, in addition to any advice on if we are looking at a good deal, or if we should cut bait and run.

Thank you.

Paul