Question
From: (redacted)
Sent: Monday, February 27, 2006 9:34 AM
To: Verne, B. Michael
Subject:Investment Rental Property Exemption
Hi Mike.
I hope you are doing well.
I have a few questionsconcerning section 802.5 -- the investment rental property assets exemption.Assume an acquiring person plans to acquire skilled nursing home facilities forrental or investment purposes. The acquiring person does not plan to operatethe facilities, but instead plans to lease them to third parties under triplenet leases.
(1)Would the exemption described in 802.5 apply not only to the realty but also toany equipment that the acquiring person will acquire with the realty and that iscurrently used in conjunction with the operation of the realty -- such asskilled nursing beds, regardless of the value of such equipment?(MV comment YES)
(2)Would the exemption apply regardless of whether the sellers currently operatethe properties themselves or must the sellers also hold the properties asinvestment rental properties subject to triple net leases with other thirdparties for the exemption to apply? (MV comment YES)
(3)Would the exemption apply if the realty at issue is mixed and includes skillednursing facilities, medical office properties, and other office properties solong as the acquiring person intends to buy all such properties solely forrental or investment purposes? (MV comment YES)