Hypothetical Investment Scenario, which would you chose and why?
Would you rather have one medical building that is $20 million dollars, with 4 strong tenants, long leases in a new building or 4 different $5 Million Dollar medical buildings with the same tenants, lease and building quality. All in similar nice locations.
[{"id": "i0tp8dw", "text": "Depends on what the investor is looking for.", "replies": [], "depth": 1}, {"id": "i0tph0e", "text": "Whats your exit strategy.", "replies": [], "depth": 1}, {"id": "i0tphxh", "text": "4 individual $5 MM buildings. Some tenants prefer stand alone buildings rather than multi tenant buildings.", "replies": [], "depth": 1}, {"id": "i0tqi5b", "text": "Diversification of location. Also easier to liquidate a $5M property vs $20M, more buyers in the $5M range. I specialize in this type of investment sales if you have any questions", "replies": [], "depth": 1}, {"id": "i0uo6xx", "text": "All other things held constant a freestanding building offers more value to tenants.  But I guess that means you get a little less SF + lower cap rate on those smaller buildings for the same price.\n\nSo I guess it kind of depends on premium being paid for the smaller one on a psf basis.", "replies": [], "depth": 1}, {"id": "i0vcngr", "text": "1 building.  You get economies of scale.", "replies": [], "depth": 1}, {"id": "i0vvfcr", "text": "Four separate buildings gives Landlord more flexibility if permitted use needs to be adjusted due to lack of demand.  Easier to sell one building for $5m versus one building for $20m.", "replies": [], "depth": 1}, {"id": "i0vw1g4", "text": "4 \u00d7 $5m buildings. Tenant, location and income diversification, portfolio building, and multiple opportunities for any investors to take advantage of accelerated depreciation, allowing for passive income offsets.", "replies": [], "depth": 1}]