[quote=Irish]
I speak from painful and on-going experience. In 2006 I took a $200k capital gain from a property I sold in San Diego and (on my accountant’s advice) invested it with NNN (since bought by Grubb and Ellis) in a $32million property rented to the Mayo Clinic in Rochester, MN on a long term lease. The return was 6% and it was supposed to be a conservative and safe (hello, the Mayo Clinic !) investment. However, my mistake was not reading the fine-print on the loan document. It was an interest only loan fixed at 5.5% for 5 years. The problem is that it comes due next June and in this down market it will be difficult to get refinancing. The property is probably in the classic “underwater” situation, appraising 30-40% below the original $32million. I’m watching a slow-motion train wreck and will be lucky not to lose my whole investment.[/quote]
Sorry to hear about your bad experience.
Are you part of the lending pool or did you buy a share of the property?
