The tenant is an existing tenant in the building and the lease they signed with the Sellers is pre-existing and calls for a straight rent payment. The rent does not change if they make more or less money. I have reviewed the lease agreement and it does not compel the tenant to provide financials to the owners. The bank is saying that the financials are necessary because the tenant occupies 65% of the building and the appraiser has identified that there is a functional obsolescence to the floor plan of the building (department store size square footage in a downtown location). The building used to be a large variety store up until 1960 when these types of stores were relocated to Malls. I recognize that should the existing tenant move I would have to spend $$ to remodel the interior spaces to maximize rental opportunities. I don't disagree with the appraiser that it would be difficult to very-difficult to replace this tenant if they leave without remodeling the space. The main reason I want the building is because I own the building next door (45,000 square feet) and it is fully occupied and this building has not been kept up and leased up correctly. However, in the end, the tenant in question has refused to provide the seller with financials and therefore he has told me he can't provide them to me.
