Value the real estate separately from the business. The RE leases the space to the Salon. The Salon leases the chairs to the Stylists. Depending on your exit, you may want to hold the RE and the OP co in different entities.

Thank you Dyami. That's great perspective for me to consider. Over the past weeks I'm learning that suites work for investors looking for 8+% cash-on-cash in all-cash deal, but not so much for a SBA-leveraged buyer like myself. Buying stabilized NOI salons with the CRE are overpriced relative to SBA 7(a) terms. Debt service overwhelms NOI. Alternatively, buying a cheaper shell + doing buildout= lower total cost, longer 25-year w/ SBA 504 amortization, and higher NOI. But it's anemic at best. The suite model at small scale is equity-building, not income-yielding. To achieve any meaningful income, I'd need very large scale buildings and a huge 100+ suite build out... any advice on a different way to approach this is appreciated!