Split Up Self Storage Facility Purchase: Business vs Real Estate

[Weina Shi]

Dear fellow investors,

I am under contract to purchase a facility. The current assessment is about half of the purchase price so the real estate tax will go significant up. My attorney recommended that I consider splitting up biz value vs real estate value. Tax assessment will only be on the real estate value so the real estate value will be more manageable. Has anyone done this?

It add a little more complexity as it will be two transactions (to finance instead of one). Is it worth the extra effort considering real estate tax savings, depreciation, loan?

Thanks!