Master Lease in a Syndication

We are in serious talks with the seller of a great park in a great metro. 150+ pads, city services, meat on the bone.

They converted their C Corp to an S Corp to save tax on cash flow. However, they would have to pay extra tax if they sell their park, in its S corp entity, if they sold it within 5 years of the conversion to S Corp, which happened 1 1/2 year ago.

Since they would pay a hefty tax bill, we proposed a master lease with option to purchase at the end of the 5 years (3.5 years from now). The seller is amenable to that; however, we have no idea how this would work in a syndication.

Does anyone have any experience with syndicating lease option deals?

Speak with a securities attorney with experience structuring these types of deals. They should be able to help you structure this or tell you why it isn’t possible.

We’ve done a master lease with JV partners, not a syndication…

If I can be of any help let me know

I would think also loop in a real estate attorney that is licensed in your state. Cover all of your bases. You can do this with an LLC. Many different ways to make this killer deal, happen.