EXAMPLE OF HOW A PROJECT WORKS
Property Description of Sample Project

Subject property is a fully occupied 20,000 square foot (SF) two-story professional office building. Built in 1981 and having the same owner, the complex has been nearly totally depreciated and has a zero tax base.

It is owned by a single owner operating through a limited liability company (LLC). The owner performs his own maintenance and management and is an attorney having extreme constraints on his time due to his practice.

The building has been appraised at $2.2 million dollars through the income valuation method perspective. Unsolicited offers to purchase have been made for less and rejected. The owner is established enough where he is not driven by a need for new capital - which would only be subject to capital gains tax and, combined with present income and his law practice places him in an extremely high income tax exposure.

There is a small mortgage which is assumable and there is no need for either working capital or major building improvements. Tenants pay on triple net leases which have five years duration and are automatically renewable. The project is part of the owner's estate.