Reaching out to the community to make sure I'm not off base here to immediately think to decline this offer.  

I would need to consult tax consultant for this however I expect to reduce my effective costs by ~$1,495/month (based on a 32% tax bracket).2.

As to your point about confusion in the future, it's our policy to leave the conversation and thread open and available for anyone to read, they can gather all of the information and make an informed decision for themselves based on ALL the information provided.

Send as many letters as you want; many will not pay any attention to your pleas.How about instituting a RUBS based on square footage? 

Based on the above points, you asked us (experienced investors) what would WE decide.  

Keep detailed records of income, expenses, and improvements, and choose the right filing approach based on your comfort level with these rules.This post does not create a CPA-Client relationship.

Across the remaining portfolio, I have a really good amount of equity which I can tap into based on opportunities but need to finish cleaning up my personal debt prior to going that route to get best rates etc.

Make sure to run your numbers conservatively and based on the current as is value if you plan to go this route. 

Typically, the tax is based on the assessed fair market value of the property at the time of the transfer, even if it’s not a traditional sale.

I figure regardless of where they are in their lease, I want to own the building based on the location alone.