Stanley Sidel, senior vice president at Legg Mason Real Estate Services/Spectrum Financial, arranged the transaction and tells GlobeSt.com that the buyer does not wish to be identified.
He points out that this deal enables VeryFine to still maintain control of the building while getting value out of it. "This is a cheaper way to borrow money than to go to the bond or financial markets," he notes. "This is a long term lease and they know exactly what the rent is so there are no surprises."
Sidel says that this type of transaction is being done more often by companies with assets tied up in their real estate. "Real estate has appreciated in value," he says. "This is a way to capitalize on that.
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