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?