Advice on Commercial Purchase

[Jeff Licciardi]

Hi Folks - hoping for a a little help to get my thoughts straight.  Here are the basics.

I currently occupy 11,800 sqft of a 20,000 sqft building.  The building houses a strength and conditioning facility (gym) that I own with partners.  We want to remain in the building b/c it suits our business need perfectly.  The owner wants to sell.

I pay rent (obvious) of about $8/yr (3% annual increase) + $3.50 for CAM (lease through 8/19, but extending through 8/22 before any sale).  Our neighbor pays about $11.61 and it jumps $0.40/year

NOI on the building is about $160,000/yr including revenues from the other tenant. This also includes expenses from a 3rd party management company that does EVERYTHING.

We are going to be somewhere between CAP8/9 when the appraisal comes back.  That puts me between $1.78/2M for cost.

I'm thinking about getting a local lender + SBA to cover 90% of the loan amount.  This gets me a down payment of roughly 180-200K + costs.  I need to occupy 60% of leaseable space for this.. not a problem.  There is a basement, outbuilding, etc.. that more than get me there.

There is also a 6 acre parcel next to the property with easements for access roads and a connection to a new street (good news for my business AND for the building).  This will be sold at the same time but as a different transaction (i.e. not attached to SBA loan above).  This will probably go for 50-75K/acre.

So my questions are... where do I start? What questions should I be asking. I'm not planning on coming up with any of the down payments on my own.. I'll be seeking investors for that.. either from my gym business or from the outside. When I do that.. how can I think about structuring that? Equity partners in the LLC's that own the building or the land? Debt holders? The owner of the building is willing to hold an IO note as a second (if we can or can't go SBA) for some of the money if we would like. How might that impact the loan?

I honestly don't even know what to ask... so any thoughts about what I should be asking are great as well.

Thanks!

Jeff