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October 2015 Vol. 7 Issue 3
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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
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Benefits of a Sale-Leaseback
by David G. Hunt
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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
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Property Highlight
55 West Ames Court
Plainview, NY
SPACE FOR LEASE
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| Click on image for full report |
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Companies on the Move
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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) |
Our Corporate Headquarters
17 Dupont Street, Suite 4
Plainview, NY 11803
516-937-1000
www.huntcorp.com
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COMPARABLE SALES IN THE LAST 12 MONTHS
City | Address | Property Type | Size SF | Office SF | Acres Total | Sold Price/SF | Sold Date |
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Mineola | 330 Old Country Road | Office | 115,690 |
| 1..35 | $203.13 |
10/14/2015
| Westbury |
92 Magnolia Avenue
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Industrial
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14,000
| 3,000 |
0.29
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$103.57
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10/1/2015
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Central Islip
| 110 Windsor Place | Industrial | 40,000 | 4,100 | 2.41 | $80.00 |
9/24/2015
| Ronkonkoma | 90 Remington Boulevard | Office | 8,000 | 3,200 | 0.80 | $130.00
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9/24/2015
| New Hyde Park | 1801 Gilford Avenue
| Industrial | 22,000 | 1,800 | 3.00 | $52.27 |
9/23/2015
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Farmingdale
| 51 Carolyn Boulevard | Industrial | 18,133 | 1,813 |
1
| $114.71 |
9/23/2015
| For more Recent Sales, click here |
�Copyright 2010, All Rights Reserved. The content of this web site may not be reproduced without the written permission of HUNT Corporate Services, Inc. All information is from sources deemed reliable and is subject to prior rental or sale, errors, omissions, change of price and withdrawal without notice.
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