NNN Lease Debt Assumption - Here's the details and questions
Property Details:
Purchase Price: $9,500,000
Annual Rent: $498,804
Cap Rate: 5.25%
Lease Expiration: 2/28/2038
Lease Type: NNN
Year Built: 2013
Options: 10, 5-year
Gross Leasable Area: 14,534 SF
Building Class: B
Lot Size: 3.20 AC
Tenancy: Single
No. Stories: 1
Assumable debt:
Wells Fargo Loan Balance: $4,728,897
Interest Rate: 4.5%
Amortization: 30 years
Annual Payment: $304,011
Cash-on-Cash Return: 4.01%
Lease abstract:
Tenant: Walgreens
Guarantor: Walgreens Boots Alliance, Inc. (NYSE: WBA, S&P: BBB+)
Lease Structure: Absolute triple-net
Lease term remaining: 21+ years
Lease expiration: 2/28/2038
Options to extend: 10, 5-year options to extend
Landlord responsibilities: None. The tenant is responsible for all repair and maintenance of the property, including the roof and structure.
Site demographics:
Average Daily Traffic Count (ADT): 23,000
1-mile Average Annual Household Income (AHHI): $99,969
POPULATION:
1-mile radius: 6,095
3-mile radius: 42,886
5-mile radius: 124,077
Questions(using the information provided above):
1. How does assuming the debt of commercial properties work in general, and specifically for NNN properties?
2. What requirements may need to be met by the lender and can bringing on an equity/funding/credit partner help close such a deal?
3. Is there usually a down payment required? How much should I expect?
4. Am I simply assuming the balance on the loan or paying the listed price?
5. Is it possible to do a seller carry back for the down payment?
6. Is it possible to positively leverage(100% financing scenario) such a deal using creative financing(private lender(s), hard money loan, etc.?
Thanks for everyone who helps me this and Merry Christmas to all!