Question
You and two business partners are considering the purchase of the following commercial investment property: Commercial Property: -Estimated purchase price: $600,000 (building only) -Type of
You and two business partners are considering the purchase of the following commercial investment property:
Commercial Property:
-Estimated purchase price: $600,000 (building only)
-Type of property: Mixed-use
-Units: 3 residential second-floor Apts. (A) 1,500 sq. ft., (B) 1,250 sq. ft and (C) 850 sq. ft.
-3 retail ground floor Units, with separate entrances, 1,200 sq. ft. each.
Lease Information:
-Residential Apartments: All residential units are rented.
-Retail Units-annual rental revenues: Each Retail Unit is under a month-to-month gross (MTM) lease.
Other Information:
-The property is subject to a 50 years ground lease (all property interests reverts to the seller at the end of the ground lease). The property purchaser will pay the seller an annual ground lease payment of $20,000.
-Each investor will purchase a 1/3 interest in the investment.
Provide your business partners with the following information:
List the different ways to hold title in the investment.
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