Big Dawg Leases-to-Own Industrial Property At 20 Van Dam Street In Greenpoint

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!