October 2015 Vol. 7 Issue 3
Dear Friends,

I wrote last month of the steadily increasing value of commercial buildings on Long Island. This is a great time to be thinking about tapping the increased equity you hold in your real estate. Our lead article this month describes the mechanism of a sale-leaseback, and why you might want to consider this method over refinancing your building. 

What is a sale-leaseback? You sell your building to an investor, who in turn, leases the building back to your operating company.  A sale-leaseback is a wonderful way to unlock equity in a "frozen" asset, and may be an ideal way for your company to raise capital to reduce debt, or to improve or expand operations. If you want to explore this possibility, give us a call. We'll walk you through the advantages and disadvantages, and explore whether this method might be right for you.

The days are getting cooler and shorter, and this is one of my favorite times of year. Along with the crisp days and autumn foliage, let us not forget that it is time to be thinking about preparing your building for winter. Now is the time to be inspecting your roof, caulking and pavement. If you have not done so, make sure that your heating maintenance is complete. And of course, those exterior sprinkler lines need to be blown out. A little attention now will go a long way!

"Oh the possibilities!"

David G. Hunt

Benefits of a Sale-Leaseback
                                                             by David G. Hunt
Q:  What would be the advantage of selling our manufacturing plant and leasing it back, as opposed to just refinancing the building?

A:  
There are several advantages to selling your property to a third party and simultaneously executing a long term net lease to occupy the building. As you are probably aware, a sale-leaseback is a mechanism that allows you to access the equity that has been locked into your bricks and mortar. Each situation needs to be evaluated on its own merits, but for many companies that presently own their real estate the sale-leaseback is an attractive alternative for several reasons.

First, unlike refinancing where some part of the value of the property must be retained as equity, a sale-leaseback allows the seller to extract 100% of the property's worth. This can be a substantial figure, since most lenders will not exceed loans of more than 75% of the property value. For example, if the fair market value of your plant is worth $2,000,000, a sale-leaseback will allow you to extract the full amount, less fees....Click here for full article

Property Highlight

  

55 West Ames Court

Plainview, NY

 

SPACE FOR LEASE

Costar Industrial Report
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 Companies on the Move
Crown Advertising Agency is moving to 135 Engineers Road, Hauppauge.. Branch Medical is moving to 50 Karl Avenue, Smithtown...5 Boro Green Services is moving to 10 Commercial Street, Hicksville...  International Warehousing Inc leased space at 303 Winding Road, Old Bethpage... Little Bird Chocolates leased space at 25 Fairchild Avenue, Plainview...  AME Custom Work Corp. leased space at 87 North Industry Court, Deer Park...
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Financing File 
Current Market Rates and Programs for the Long Island Commercial Marketplace  

The SBA 504 loan program offers long term (10 or 20 years) fixed rate subordinate mortgage financing for the purchase and renovations of existing buildings or new buildings and equipment. Loans are up to 40% of the project cost..... (MORE)

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17 Dupont Street, Suite 4 
Plainview, NY 11803
516-937-1000

 

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COMPARABLE SALES IN THE LAST 12 MONTHS

City Address              Property Type Size SF  Office SFAcres Total  Sold Price/SF  Sold Date 
Mineola330 Old Country RoadOffice115,690
1..35$203.13
10/14/2015
Westbury
92 Magnolia Avenue
Industrial
14,000

3,000
0.29
$103.57
10/1/2015
Central Islip
110 Windsor PlaceIndustrial40,0004,1002.41$80.00
9/24/2015
Ronkonkoma90 Remington BoulevardOffice8,0003,2000.80$130.00
9/24/2015
New Hyde Park1801 Gilford Avenue
Industrial22,0001,8003.00$52.27
9/23/2015
Farmingdale
51 Carolyn BoulevardIndustrial18,1331,813
1
$114.71
9/23/2015
For more Recent Sales, click here
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