Commercial Financing - owner occupant

[Matt Concannon]

Case study/Analysis:  

Commercial property:  40,000  flex space with limited bay door access.  Used as athletic space currently.  50% occupied with long term tenants with short term leases.  They all want to stay and would be negotiated into long term leases during due diligence.  

current rents: $10,000/mo, $120,000/year.

Vacant space is a little over 50% of the building.   20,000 sf @ $6 sf for the owner occupant = $120,000/year

Yearly Income: $240,000/year (with owner occupant) yearly expenses (waiting on full breakout...not NNN, but will negotiate with tenants before sale to include some costs): 20%?? approximating $50,000/year

projected NOI= $190,000

Using a 6% cap rate= current value:  $3,200,000

Current asking price of the building:  $2,700,000

My questions:

1.  Would a lender use the appraised value with the improved lease Income from the owner occupant?  

2.  Is there a scenario they would not require down money?

3.  What % down money/rate is needed with 30 year term?

4.  I am most worried about cash flow in the early years.