METHOD OF CONSOLIDATING INDEPENDENT OWNERS OF DISTRIBUTION WAREHOUSES INTO AN INVESTMENT CORPORATON

摘要

Methods of consolidating independent owners of distribution warehouses into an investment corporation for purposes of achieving economics of scale, for obtaining favorable mortgage financing and for creating a vehicle to enable periodic refinancing and investment of proceeds from such refinancing in real estate opportunities. The investment corporation is formed and independent owners of distribution warehouses are assembled and selected to participate in the investment corporation. The participant enters in a sale-leaseback agreement with the investment corporation and transfers title in their warehouses to the investment corporation. The investment corporation finances the purchase of the warehouses by securing a non-recourse loan with at least a seven to ten year term, serviced on at least a seven to ten year debt payment schedule. On a periodic basis, preferably every seven to ten years, each warehouse is reappraised, new leases entered into between the investment corporation and each participant, and new mortgage loans issued for each warehouse. The investment corporation invests proceeds from the new mortgage loans in investment opportunities to produce investment revenue.