All Forum Posts by: Mark H. Porter

NN single tenant national retail. >15 year old bldg

6 years left on lease, Corporate guarantee on lease

3.5%, 7/25, 80% LTV

>$3.5M

Regional bank, prefers to deal with relationships rather than transactions

@Steve Morris I won’t bother justifying this champ, do what all those podcasts and books tell you to do.

@Joel Owens I got 3.5% for the 7 years fixed.  The bank in Pittsburgh was offering the same.  They guaranteed that rate upfront with the understanding I would include them in the property choice and that certain properties (non-QSR restaurants, QSR without drive-thru's, dollar stores in smaller areas, office buildings, industrial) would not get the same treatment.

Joel, I did a single STR with the bank and live hundreds of miles from both the bank and asset.

I’m not going to publicize this bank as I have more business to do with them.  I can  tell you that I did get the same offer from 1st National Bank out of Pittsburgh but they recently came up with the rule that either the buyer or the asset had to be within 2 hours of one of the branches. 

I'll disagree on the LTV, Joel. I'm not a doctor nor am I a big player as this is my first venture into commercial single-tenant 1031 as I lived in the multi-family world for a long time.

Rick, the longer the lease, the lower the cap.  The larger the surrounding population, the lower the cap.  A single national tenant, on a ten year lease, in a major area, will be in the 5’s to low 6’s.  Longer leases could put you in the 4’s.  

You’ll get higher caps, but less favorable financing, for, as example dollar stores in smaller communities.

I also have an 80% LTV, 7/25 national single-tenant I'll be closing on in February. Call three or four smaller Regional banks.

I agree with Rick.  I have a couple of properties for sale up here in Burlington, VT and my realtor has had buyers call and ask if I would take “X” which can be 25% off asking.   Of course it always includes them Educating us as to the failing real estate market.  They’re too stupid to even realize that they’re insulting me.

i had to write a note to my realtor telling him the response from now on is no offers will be considered with first viewing the properties.

They’re all Cash at the closing table!

You’re question is tough to answer as there are dozens of different real estate markets in Vermont.  Ski areas, college areas, medical, tourist ... they’re all very different.

You need to decide what type of market you want and why.  Is it in killington where all the money is made in 4 months and you plan on skiing yourself?  Or Burlington with more of a college feel?

Property taxes can be quite high making Vermont an expensive place to live.