All Forum Posts by: Jameson Sullivan

Honestly, spend them money with an attorney that understands NNN and NN Leases. The money is well spent.

@Jared Rine You're not wrong, I'm just asking the question... There was MF debt circulating in the low 4's well after market rate loans were into the 5's that was portfolio money that just wanted to lend on MF assets in our market and was willing to do so at competitive rates. 

I don't know EVERY lender in the US, so taking 3 minutes to post on here is well worth the time even if everyone says I'm crazy hahaha 

I'm a broker and I just brought a property to market for around $10,000,000. Corporate signatures with 10 year leases in place. Trophy asset on a hard corner.

Debt quotes have been rough so I thought I'd try my luck here to see if anyone has seen any portfolio lending for assets of this type that could beat the market. 

Would be looking for relatively low LTV with rates in the low 5's.... Of course it's a big ask, but thought I'd put it out there.

What exactly does the lease say? A "Commercial Lease" doesn't give enough information, there's several types of leases and responsibilities related to those leases are split up differently.... Generally there's a section detailing LL responsibilities. In most of the NNN leases we see, the LL responsibility is limited to structural components, roof, parking lot, basically everything outside of the tenant's 4 walls. That said, there's an infinite amount of possible lease language so without reading the lease there's no way anyone can really answer your questions... You might be best off engaging with an attorney at this point so they can explain to you what you signed.

What is the benefit of doing this rather than just leasing it to a long term tenant and not furnishing it?

Short answer is yes. This is some form of net lease where the tenant pays for their pro-rate share of op-ex, taxes and insurance...However, there's a lot of information missing here. This clause does seem to indicate they would pay 100% of their pro-rata share of the taxes, but is it a single tenant property? If not, then they would only be responsible for their piece of the taxes and it's possible there's other leases in the property that are not NNN. We would also need to understand a little better how they define everything "hereinafter"

Unfortunately what @Bill B. is saying is NOT true. NNN leases can vary from lease to lease. Most NNN leases do cover most operating expenses and sometimes a reserve account but also regularly exclude cap-ex, advertising for the larger shopping center, etc... When the LL's responsibilities get more and more, the lease would be considered double net or even single net... Anyways, this is such a detailed topic and there's too much to write in this post. Happy to hop on a call with anyone to talk about it.

Whenever I list a retail property for sale, there's always someone calling saying that they are not represented and that they would like me to represent them because they feel they have a better chance of getting the deal. My comment to them is that I am happy to draft the offer up on their behalf, however, with a written agreement with the Seller my responsibility is first and foremost to my seller. Lots of people are OK with that because a lot of times people buying in that 2 to 5 million dollar range are more "sophisticated" than someone buying their first home or investment property and they know their way around the deal and don't need guidance, they just want to get the deal.

If you feel comfortable with the deal process and economics then I wouldnt worry about what the listing agent is going to earn but if you are worried about getting hosed, you probably should be and hire an agent to work on your behalf. Unfortunately, that means you might not get access to those off market deals first.

Brokers can be very useful. I would recommend speaking to a few, especially if you have a funky deal you're trying to fund. If you go to the local bank or CU, they are going to try to fit you in their "box" and if you don't fit, they can't help you... Going to a broker allows them to search for the lender with the best boxes to fit you in and a lot of time there's 10's of millions in funds out there that you never would have know about... That said, 3% is pretty high fee - how big is the loan?

I would contact a local commercial broker. It would likely benefit you to have a Landlord broker work on your behalf and have them contact the brokerage representative or direct real estate representative at all of the medical groups. That said, unless you control the dirt as Ronald mentioned above, no one is going to speak with you.

@Account Closed I went through a similar process in my head about a property I have in Tacoma. As everyone else has mentioned, probablly not going to work. The best option I found was a local CU who offered 90% LTV on a 5/5 ARM for a refinance. Have you explored local banks or CU's? I think the rates there were like +1% over prime or something but it gives you that extra 10%. You might even be able to find someone to loan the next 5% on a HELOC if you're lucky. Best of luck.