[lendaddy]

Our neighbor has a need for our building and land and has made a cash offer. He has purchased a couple other adjacent pieces but ours is the best building and the best location for visibility from the four-lane. (this is an industrial property and his needs are not immediate, he wants our location for future expansion)

His offer is 740k and he will lease the building back to us at 6k a month for a 5 year lease with our option for 5 more. We would still cover all taxes and utilities, etc..

This guy is killing right now and I think he needs to spend some money to avoid a massive tax bill.

I know he will pay more and I've told him that that $ won't get it done. I told him he would have to pay a premium and cover our eventual moving costs, etc.. I need to get him an informal counter offer in the next few days. I have met with our CPA and the tax situation would be ugly unless we role the $ into another investment property. My plan is to do that then take a cash out loan to invest into our business as we do need the influx and this really is a god-send that he approached us (as in my opinion we'll never get more "above market value" for the property than in this situation)

We owe about $500k now and his $740k would be a "fairish" to "lowish" offer based on the market. What kind of premium should I shoot for? What pitfalls await me? Any advice is welcome.