Acquiring a business & purchasing the property as part of the acquisition?

November 01, 2020
by a searcher from Bridgewater State College in Providence, RI, USA
Does anyone have experience in which the property was part of the acquisition? Any problems this caused post acquisition?
from Bridgewater State College in Providence, RI, USA
^redacted are their scenarios in which you're able to purchase the real estate without a sizeable down payment? I've been looking at SBA 504 loans.
Here's the situation:
Current owner of the business doesn't own the building, and the current owner of the building is looking to sell. New landlord will either want space for their own business, or raise rent to such a level that it would be beneficial to purchase the real estate from the current owner. Location is quite important as the business has been there for ~60 years (selling high ticket items). Purchasing real estate will require a significant down payment which could have been used for growth & expansion. I'm thinking my best options are either: 1.) convince current property owner to extend lease (10 years) with higher monthly payments, or 2.) shorter term 5-7 year lease to own (not ideal but possibly the only option).
from Wake Forest University in Winston-Salem, NC, USA