Posted by Chad on July 13, 2009 at 17:40:14:
In Reply to: Re: Retail Vacancy - Any Ideas? posted by Bill Taylor on July 08, 2009 at 09:02:05:
Bill, Ray, James-
Thanks for the input.
A JV, equity stake, or bartering for services would obviously involve a whole different, quite complex series of business/management valuation and negotiation.
I try to minimize the number of partners in my life (I like to keep it simple.)
If you did go down this road, would you have a lease at market rent, then a separate service agreement? What are the implications from a tax standpoint of bartering or accepting below market rent for an equity stake? If the service provider doesn't perform the agreed services in lieu of rent, how would the eviction work?
The devil's in the details. I'm intrigued (and about ready to try anything), just trying to get my arms around how this would work.
Also, we may want to sell the property eventually. How do you not destroy your NOI/hence property value under this scenario?