LEASED
Big Dawg Leases-to-Own Industrial Property At 20 Van Dam Street In Greenpoint
20 Van Dam Street
Industrial
17,790 SF
17,790 SF
Leased 326 days ago
Summary
Lease
NEW YORK
Industrial
17,790 sqft
Located at 20 Van Dam Street in Greenpoint, this industrial property was the subject of a successful lease-to-own transaction. The property spans across 17,790 square feet and was listed with an asking rent of $31.25 per square foot, NNN. The lease term was set for 3+1 years, with a purchase option available for $6,000,000.00 after the initial 3-year period with equity accrual.
Summary of transaction details
- Property Type: Industrial
- Transaction Amount: Lease-to-own arrangement
- Address: 20 Van Dam Street, Greenpoint
- Asking Rent: $31.25/ft NNN
- Square Footage: 17,790
The seller in this deal was Andre Joyau, while the buyer was Big Dawg. The transaction was facilitated by a team of brokers from Compass, namely Nathan Horne, Ehab Elshinawy, and Gregg Haft.
This unique lease-to-own structure provided several advantages for both parties involved. For the seller-landlord, it offered the opportunity to secure an above-market sale price, which would have been challenging to achieve with the current interest rates. The deal also allowed the seller to avoid equity-note 1031 issues related to owner financing. Moreover, the arrangement provided immediate positive cash flow through an escalating NNN lease and the knowledge that the tenant would be making building improvements that would enhance the property's future value even if they chose not to exercise their purchase option.
On the buyer-tenant side, this lease-to-own agreement offered the advantage of acquiring a desired asset with a significantly reduced upfront cash requirement. The buyer also had the opportunity to invest into the property while accruing future equity, as 50% of the base rent contributed to equity accumulation in this case. Additionally, the arrangement provided flexibility in closing the deal at an ideal time, taking advantage of lower interest rates resulting from occupancy, building improvements, or favorable market conditions.
Congratulations to all the parties involved in this successful lease-to-own transaction!
Players
All
4
Agents
3
Agencies
1
Details
LEASED
IMAGE: Nathan Horne, Ehab Elshinawy & Gregg Haft
DATE: 06/08/2023
ADDRESS: 20 Van Dam Street
MARKET: Greenpoint
ASSET TYPE: Industrial
SELLER: Andre Joyau
BUYER: Big Dawg
BROKERS: Nathan Horne (@Horne.Team), Ehab Elshinawy (@Ehab.Finds) & Gregg Haft (@GreggHaft) - Compass (@Compass) (@CompassNY)
ASKING RENT: $31.25.25/ft NNN ~ SF: 17,790
LEASE TERM: 3+1 years
PURCHASE OPTION: $6,000,000.00.00 for 3 Years with Equity Accrual
NOTE FROM BROKER: We are thrilled to report the successful culmination of a remarkable LEASE-TO-OWN transaction at 20 Van Dam Street ( 🎉 !), and express gratitude to the seller-landlord and purchaser-tenant for trusting our judgment in creating a unique deal structure that furthered their interests.
For the seller, this structure provides:
🔹 Capability to achieve an above-market and predetermined sale price that would otherwise be difficult with current interest rates (and avoid the equity-note 1031 issues with owner financing).
🔹 Immediate positive cash flow with an escalating NNN lease in place throughout the term.
🔹 Safety in knowing that the tenant is making building improvements for their own future use. In the unlikely event they don't exercise their purchase option, those improvements will substantially increase the asset's future value.
For the purchaser, this structure provides:
🔹 Capability to lock into a desired asset with a substantially lowered upfront cash requirement.
🔹 Safety in knowing they can invest into the property while also accruing future equity (50% of base rent in this case*).
🔹 Flexibility to close at an ideal time with interest rates lowered due to occupancy, building improvements, or simply the right time in the market cycle.
Congrats to everyone involved!
*If interested in understanding more about this and/or other creative deal structures, feel free to email [email protected] or call/text me at 706-255-5657.View on map
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Address20 Van Dam Street
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