Renting the building means having a developer willing to buy the building, perhaps take on some of the renovations, and rent back to us.

There are several issues that keep us from returning to this plan:

1. Similar to the question about starting smaller, our issue has been in getting any funding, not in getting enough funding to buy the building.  In fact, buying the building is very much the easiest component to fund.  Our operating capital - inventory, cash flow - is the most difficult to fund, and owning the building, which provides us with collateral, actually makes this easier to obtain.

2. The rent that we would pay would undoubtedly be much higher than the cost of our debt.

3. In order to pursue this path we would need to have a developer interested in buying the building and renting to us.  No developer has been interested thus far.

Last updated on May 18, 2011 by Creekside Co-Op