PURCHASE FINANCING
• 90% SBA financing available – only 10% down payment required – SBA 504 and 7A programs. LEASE-TO-OWN PROGRAM AVAILABLE WHY PAY RENT? IT’S LESS EXPENSIVE— AND SO MUCH
BETTER –TO OWN YOUR PROPERTY. LEASE-TO-OWN PROGRAM A unique Lease-to-Own program has been
created for companies that desire to own their real estate, but are not yet
ready to make the purchase. The Patriot Park Business Center developer is
offering companies a 4 to 10-year lease of the company’s selected property plus
the right to buy at a pre-set price. The Patriot Park Business Center
buildings are completely outfitted for immediate occupancy. These business
properties are equipped with carpeting, two bathrooms, one on the first floor
and one on the second floor, kitchenettes, suspended acoustic ceilings with
parabolic lighting, heating / air conditioning systems, telephone, and internet
access. Many companies can move into Patriot
Park Business Center buildings with no changes of any kind. Other companies
require custom modifications to meet their business needs. Companies that
require no modifications to their buildings are offered leases for terms as
short as 5 years. Companies have the right to purchase their properties during
the first 2 years of their lease term simply by sending a notice to the
developer that they are ready to purchase. On the closing date, the lease will
end and the company will own its own building. TERMS
• Lease periods as short as 5 years and as long as 10 years, as requested by the buyer company. • Lease rate: $1.25 per square foot per month NNN. (“NNN” means that the tenant /buyer pays his proportional share of the operating costs of the property including property taxes, insurance, maintenance, etc.) • The $1.25 per square foot rate is a special below-market rate for the Patriot Park Business Center buyers only. It is not transferable or assignable. After the 1st year, the lease rate increases. It is assumed that the buyer will complete his / her purchase within the first year or two of the lease, but there is no obligation to do so. • The Purchase Price of the property is locked in and does not go up. • Companies can complete their purchase anytime in the first 2 years of their lease • They need only deliver 30-day notice of their intent to close escrow. They can use SBA financing or any other financing they prefer. PURCHASE
Patriot Park Business Center
Properties can be purchased with a minimal 10% down payment using Small
Business Administration (SBA) financing. The SBA financing program was created
by the United States Congress to stimulate business and to give small companies
an opportunity to own their own real estate. The underwriting requirements are
rather liberal, and most experienced, and many new start-ups, companies
qualify. The SBA 504 program combines a conventional first deed of trust from a
local lender in the amount of 50% of the purchase price with SBA financing
secured by a second trust deed in the amount of 40% of the purchase price (90%
FINANCING). The buyer invests only 10% in cash equity and pays loan fees and
closing costs. At today’s extremely low interest rates, the monthly payments
are often well below market rents for comparable properties. PURCHASE PROGRAM PATRIOT PARK BUSINESS CENTER has been pre-approved, and
its staff is ready to introduce you to
an SBA lender to promptly arrange financing for your company’s new building. There are two SBA
loan programs available to PATRIOT PARK BUSINESS CENTER buyers, the 504 and the 7a. SBA 504 REAL ESTATE LOANS
The SBA 504 program combines a
conventional first deed of trust from a local lender in the amount of 50% of the
purchase price with SBA financing secured by a second trust deed in the amount
of 40% of the purchase price (total – 90% financing). The buyer invests only
10% in cash equity and pays loan fees and closing costs. At today’s low
interest rates, the monthly payments are well below market rents for comparable
properties. And, of course owners of real estate have the right to deduct
annual depreciation from their taxes. TERMS OF THE 504 PROGRAM
• Low FIXED rate: Current rates are shown on the Rent vs. Own Comparison. • Only 10% cash down payment - compared to 25% to 30% for conventional real estate financing. • 20-year fully amortized - compared to 5 to 7 year terms with many lenders. • Only 51% occupancy by owner / borrower required. If you don’t need the entire building, lease out the unused portion and expand into it later. • Funds for additional or custom interior improvements to your PATRIOT PARK BUSINESS CENTER property can be included in SBA financing.
TERMS OF THE 7a PROGRAM
• Loan is from a single source, typically a local bank. • Low adjustable rate, tied to the prime-lending rate. • Only 10% cash down payment - compared to 25% to 30% for conventional real estate financing. • 25-year fully amortized - compared to 5 to 7 year terms with many lenders. • The 7a program is a multi-purpose loan that can provide financing for real estate purchases, interior improvements, equipment purchases, and working capital.
MISCELLANEOUS INFORMATION
• The SBA lender will arrange the entire deal with the bank and the SBA. You need only provide information about your company, including financial statements and tax returns. • You can borrow 90% of the purchase price of your Patriot Park Business Center property plus up to 90% of any custom interior improvements that you may need. • The monthly mortgage cost is generally far below the costs of renting a comparable property. • Owners of Patriot Park Business Center properties receive all tax benefits offered to owners of real estate including annual depreciation. • Owners of Patriot Park Business Center properties benefit by the appreciation in the value of their property (instead of giving these benefits to landlords).
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