After the fire, our insurance company sent out an adjuster for the construction portion and another adjuster for the contents/textiles portion of the claim. 

The Journal publishes various lists for different types of banks, sizes, and activity in the area. 

Some reasons are terrible location, poor condition, parcel size issues, liens on the property, problems you see from the road. 

Did the seller give you back additional $256k after sale, reducing his portion to $737k? 

One factor you didn't mention that will weigh into the decision is the size of the loan. 

I don't think exchanging is your best option since you bought with a low down payment and all the work you have done has essentially set you up to buy the same sized building. 

Here in my market, it has been negotiated with the leased land owner to buy out his contract on the land for a portion of what was remaining.  

I don't cut-off based on age I cut off based on building size. 

Something that will happen in my area is lot size, lot size may be the same but if the yard is sloped at 45 degrees it isn't usable and therefore not worth as much as a flat yard. 

His 500K of 'gain' would consist of 200K of depreciation or 33% of sale price (that needs to be recaptured) and 300K or 50% of sale price of capital gains.So IF I am understanding right, 33% of the down payment would be taxed as 'recapture-able depreciation' and 50% of the down payment would be taxed at capital gains rate.Likewise, each and every payment would have those SAME proportions taxed that way on the PRINCIPAL PORTION only, and then the interest portion would just be taxed as ordinary income?