I was going to call this a better deal than Carleton Sheets could ever think of.
But the numbers do not seem to add up.
The purchaser will pay $20K down and then $20K, each year of the lease. So, that would be $120,000 if we're assuming the $20K down, and 5 subsequent, annual payments of $20K.
Then $1 per year for each of 5 years.
Unless I'm missing something, that would yield $120,005 in total payments to be deducted from $1.5 million to leave an amount of $1,379,995 due at closing in 5 years.
But wait, Crown gets $74,000 in annual rental payments for medical suites, yielding $370,000 in direct cash to the purchaser, irregardless of whether the sale ultimately closes or not.
So they get the use of the building for 5 years; they do have to maintain the building and pay utility costs. They get the suite lease payments of $74,000 going in; but unless those leases are for more than 4 years, they will have the opportunity to increase the lease payment amounts.
But, they still, at a minimum get the $370,000 in lease payments; pay out $120,005 to the County over 5 years; and may be able to walk away at the end of 5 years with $180,000 having been available to cover the operating expenses of the property.
That is a better deal than Carleton could have dreamed up.
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