All Forum Posts by: A.R Shakir

I HAVE A OFFER TO PURCHASE A 1.7 MILLION DOLLAR SOCIAL SECURITY OFFICE BUILDING FOR 1.7 MILLION IN CHAMPAIGN,IL THE ONLY ONE IN THE 50-70 MILE RADIUS.  

7% CAP, AND 9.5 YEARS LEFT.

ITS BEEN THERE SINCE 1996.

ANY THOUGHTS ON THIS? INVESTING IN THE GOVERNMENT? 

I have a offer to by a Social Security Building 1.7 million, 7% CAP, with 9.5 years left. What is your thoughts on the government leasing out a NNN property?

Is this a good thing or bad thing?

@Joel Owens

Do you have any listings that are >15 years NNN and >5% cap rate

Best

ARS

@Andrew Beauchemin

Thanks, It has been pretty stable for a number of year not a real increase. 

We will be financing  1.5 million over 20 years the length of the lease I see swap rates are at 4.76 % right now.

Unless you have better ideas

@Joel Owens

1) Population at 5 miles is 10K 

2) We want to have so return on cash which we should be getting about 6 % cash on cash return

3) I agree with the tax situation(hoping tax laws change

4) LOI has been placed I am waiting to hear back from the realtor

5) Ideally we are looking for >15 years STNL or ground lease >5% cap and NNN ideally large corporate guarantee

@Jeff Kehl

1) They are a non-for profit, profitable hospital  

2) It is in Shelbyville Illinois but guaranteed by DMH hospital(which has been present >100 years)

3) Since its a NNN ground lease 20 years and no real management with >6% cap return thats why I have been interested

@Harrison Smith

Yes the lease has 4, 5 year options with again 6% increase in each 5 year period. The lease is a 20 year NNN lease. So unless the hospital goes under then I am in trouble. My concern is after 20 years I should come out on top with my investment, but if they leave I will end of with a dud of a investment because of the small town.

Thanks Brian Halstead, The lease is fixed and what I am hoping for is that every 3 years there is a 6% increase in rent so my cash on cash will increase. The population of this town has been steady at the 5 thousand...

I need some help, there is a medical office guaranteed by large hospital (nearly a 700 million in revenue) for 20 years. Its a NNN ground lease for sale for 3.3 million with a 6% cap rate. The problem I have is it is in a small town of about 5 thousand people. My concern is that if this hospital leaves after 20 years there is no way this will be worth any thing.

I will put 50% down and will about about 5 % cash on cash

Any thoughts would be helpful!

And also there is 6% increase in rent every 3 years it is about 7800 square foot building on 2.5 acres