Posted by cam on October 05, 2003 at 12:15:06:
Cash flow for investment grade, NNN, single tenant properties is generally 1.03+. Sounds like seller is asking too much money for the property. Check with the lender who holds the current mortgage. Not sure they will let you assume the mortgage with 1.00 DSCR.
advice needed - Posted by mark
Posted by mark on October 04, 2003 at 23:11:49:
I’m new to commercial real-estate so any help is greatly appreciated. I have a chance to purchase a nnn lease rite -aid for 2.1 million. He wants 200,000 down, and I can assume a non recourse loan of 1.9 mil. The loan amortizes in 16 years, just as the lease runs out. The problem is that the cash flow is 0 for the whole term. It seems like a good return on my money. What am I missing here? Does anyone have experience in this type of deal?