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Kum & Go is interested in selecting a few partners to develop future convenience stores with. The ideal set-up is outlined below. Although this is the preferred process, Kum & Go is open to other options.
- Kum & Go identifies a site, gets the property under contract, completes municipal approval process
- Kum & Go purchases the property
- Kum & Go builds a building with their contractor.
- Within 30 days of completion, Landlord purchases land and building.
- Land & Building Lease- Kum & Go and Landlord enter into a lease based on the final purchase price.
Lease Terms:
- 20 Year Lease
- 4- 5year options to renew
- Absolute NNN
Cap Rate:
TBD
Example:
Total Price: $2,200,000 x 6.90% cap rate = $153,180 - 1st year’s rent
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