There is a financing forum on this site, but you will find that traffic on this forum overall has dropped significantly. Newbie’s are disappearing quickly and the experienced have about done the same.
Seems to me the ideal situation would be to sell the property while it’s still leased for a slightly higher cap rate just to get rid of it (maybe 10% cap). You can’t be greedy in a market like this. It’s going to be tough to sell a vacant 40,000 S.F. warehouse in this economy. How long does your agent think it would take to lease the building if your tenant left? How long to sell it if vacant? What term remains on the current lease?
I can’t specifically answer your question, but maybe a line of credit would be a better idea. You would probably have much less closing costs. You have a good amount of equity so it shouldn’t be a problem. Whatever you do I would do it while the property is still producing income. There are most likely investors in your market that primarily buy industrial properties. Find these investors and call them without using your agent. Investors love buying properties this way and it might get you out of the property quickly. Overall, I think you’ll regret trying to sell a vacant warehouse at full market value right now. Just get out at a fair price and move that equity into something else.
Also, even if you get financing, I would lead the agent to believe that you are swallowing the payments every month until the property sells. Agents tend to get lazy (very lazy) if they think you have plenty of funds to carry the mortgage payment. They need to believe that the property is killing you and that it needs to sell asap. You have to keep agents motivated.
What city and state is warehouse located in? If your tenants December payment is late, have you met with him over coffee to discuss the challenges he is facing and how you might be able to help them?
Light industrial is a difficult property to manage in a downturned economy especially if it is used primarily by logistics, construction, distribution or commodities warehousing. We are seeing these industry retract significantly in the current economy.
There are many options to explore but the challenge you may face is how long do you have to explore them considering your ability to carry the mortgage if your tenant vacates for whatever reason.