Buying 50% of a commercial building

[Kristafer Nicaj]

tl;dr buying 50% of a commercial building based off a market value from 2020 ($790k from a Professional BPO).

I have an interesting opportunity to invest in my business partners commerical building (industrial building zoned for recreational marijuana). We are opening a licensed cultivation company (LLC) in this building. He owns the building separately under his real estate LLC whom we would be paying rent to.

We agreed it makes sense for me to own half the building as well since we also added ~$1M in construction and equipment into the building. So for tax purposes (all around depreciation etc) it makes things easier to take advantage of taxes. 

So my question is if I buy 50% of the building (I guess take 50% ownership of his current real estate LLC?) how does all pan out with regards to depreciation. Would it be based off the value from our agreed upon value (from the 2020 BPO where 50% is $395k). Also what's the best way to buy the 50% stake, do I form my own LLC and buy the 50% that way? The current value of the building is actually a lot higher now due to market demand since these buildings are limited plus the amount of work we put into it.

It's a great deal (and we both know it) because I truly will have instant equity just on the building itself minus the construction/equipment.

Would like to know details and examples about how these deals usually are put together etc. Anyone have any past experiences?

PS he bought the building off market for $400k back 2017. Would've been higher if the previous owner would've put it on the market. This is in Michigan.