A GREAT Deal Structured For Both Buyer & Seller
Transaction: This property was under a long term, below market, lease from the 1960’s with another 8 years remaining. In structuring the deal, Silber negotiated to have the seller retain the mortgage, which helped support the buyer’s 1.2% cap rate calculation. This provides the seller with an even greater source of income by holding the note for the next 8 years instead of holding the property. The buyer purchased the property through a 1031 Exchange with a huge potential upside upon the expiration of the lease.
SIP was successful in negotiating a GREAT deal that benefits both parties for a Taco Bell property in Franklin Square Long Island at a sales price of $1.45M (1.2% Cap).