Your experience with Master Lease Agreements (deal +structure)?
Think it's time to bring Master Lease Agreements into the talk again since I saw quite a few people not too familiar with them in another post. Have any of you had any experience with MLA'S? If so can we hear about your deal and how it went?
[{"id": "isue73l", "text": "I have been working in commercial real estate for 10+ years.\n\nYears back, I worked as a real estate operational manager for one grocery chain. In addition to the locations, we owned ourselves or just leased for our own use, we had a few locations with MLA agreements to secure strategically good locations and to lower our own property related cost we leased out few places for smaller tenants who lived on our big foot traffic. For landlord it was convenient - one tenant only, strong financial background, minimal contact, etc. Win-win deal.", "replies": [], "depth": 1}, {"id": "isv7jfm", "text": "I am trying to get out of one that became a nightmare, due to the lessee not performing financially but fighting to stay in the property bc they did improve it. I would only ever do one again with a reputable corporation.", "replies": [{"id": "isw3y6n", "text": "Sorry to hear that. Did you lease out a SFR  to a individual person? OR b2b?", "replies": [{"id": "isw5i1k", "text": "Small retail center in a bad urban location. Local person with good references wanted it but didn't have the cash to buy, so we did a MLA with purchase option.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "isv7qo8", "text": "Think of it like all the properties excess cash flow is waterfalled, and if for some reason one property another falls short of its debt service payment the excess from another can cover the short fall.\n\nI briefly worked on a deal with 25 properties in the master lease with three separate sub-leases", "replies": [], "depth": 1}, {"id": "isw9gp8", "text": "And potentially Interesting property tax benefits.", "replies": [], "depth": 1}]