Purchasing a commercial property through sellers existing LLC
We have identified a property we'd like to purchase, and could sell another investment and do a 1031 exchange, but an interesting option has presented itself.
Another investor friend recently purchased a commercial warehouse by assuming the debt the current LLC owners have on the property, with no cash outlay. She intends to have her name added to the ownership LLC, and theirs removed from said LLC, with one of the original owners remaining as a member.
I'm wondering how this can be accomplished, since the property was likely purchased by the LLC and not individuals. Is it worth considering this option? Our property sellers want to sell fast, so we'd prefer to move forward without waiting for 1031 exchange to happen and put the required 25% down.
They are open to creative solutions, but something about this doesn't seem right. Opinions?