Hi all,
I am hoping to get some information on a Master Lease opportunity.
Details below:
The master lease is for a commercial retail space. The location is great, across from a train station and on a busy street with high foot traffic and is located in my neighborhood. The term of the lease is 63 years remaining. There's a current tenant that just renewed for another 10 years last year. The lease is transferable after the 9 years is up. Space is 955 sq ft and is Owned by a Coop building. The original lease was 75 years. Tenant is selling the lease after 12 years later. Unsure if he paid any money for it. Below are some facts of the opportunity.
Master Lease purchase price: $500,000
Monthly rental fee: $1,200
Sublease fee to dry cleaner: $4,350
Net profit: $3,150
My Intended % of down payment for purchase: 15-20%
Loan amount: $400,000-$425,000
Questions
Are there any lenders for this type of product, and what is average interest rate I can expect? I am sure this will be a personal loan or some type of business loan since I do not plan to refinance our current property. Or should I?
Any tips or information about Master Leases.
Thank you guys in advance!
Anthony Tse
