BiggerPockets

I'm seeking an Investor/ Partner to make an investment in connection with the purchase of a commercial property.

The Investment opportunity is for the purchase of a commercial property that is occupied by a national lender, Peoples Bank.

Partner will provide $825,716 (35%) of all investment required to close on property.

I'm willing to negotiate terms up to 75% of annual cash flow...Great ROI

This property has a 15-year NN lease, commenced on September 13, 2007. There will be four 5-year options. There will be four 5-year options. The property has an initial attractive cap rate of 9.25% and absolutely no landlord responsibilities. The rent increases the lesser of 1.5% annually or CPI. The Lease is guaranteed by Peoples Bank. They have a net worth of $23,533,000

The building is 12,335 square feet and it sits on a 67,518 square foot parcel of land. The building was constructed in 1980 and renovated in 2004

Price: $2,359,189
CAP Rate: 9.25%
Annual Rent: $218,225
Net Operating Income: $218,225
Lease Type/Term: 15 years
Rent Escalations: 1.5% annually
Options: Four 5-year options
Tenant/Guarantor: Peoples Bank
Rentable Sq Ft: 12,335 sq ft
Price Per Sq Ft: $253
Lot Size: 67,518 SF
Year Built: 1980/2004

Rod, on initial reading, the numbers don't look all that exciting. Can you give more details about what the investor gets in return for thr 35% of purchase price? You mentioned that you will negotiate terms up to 75% of annual cash flows. Please explain.

Am i understanding that you are looking for a partner to put up the down payment, and you have arranged for the balance to be financed?

What is the net rental income after note payments on the $65% balance that is being financed?

Annual rent you stated is $218,225.
Annual Net after note payment is stated as 148K.

That means note payment is in the neighborhood of 70K annually or 5,833 a month.

With a price of $2,359,189, less 35% DP of 825,716, that leaves a balance to finance of 1,533,473.

1,533.473 for 25 years @ 1% would be 5,779 monthly - so you've got financing at or near that rate?

Not an interested party, just wondering how you came up with the numbers.