To be clear, the purchase consist of a team who is looking to add dispensary to location. So first things first, lender cant be cannabis sensitive The price per square foot for rent is 30 and there is 6970 square feet. Currently most of it is occupied, DSCR is about 3M HM with TI added. Looking for slightly higher leverage because the dispensary will net 300K per month. I am also brining a developer to the partnership who has entitled many properties over the year for MF. We just finished one in Lake City Seattle. 100UNITS and are selling for 50K/door. Going to do same with this one but in the meantime, place a dispensary in location to cover borrowing capital cost separate from current tenants. They are immediately going to invest about 250K in renovations as well. So exit it to refinance or wait until MUP and sell.
Another consideration:, partners are willing to provide upside of MUP at 20% for lending higher leverage as well. 200 units in this area selling at 70K / Door. So they are willing to take on an equity partner. The area is right next to Key Arena Seattle walk score fairly close.