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The 2,400-square-foot space will be leased, with tenant improvements and equipment likely to cost about $450,000, Gerdes said. The financing, which was completed in February, 2007, represented the refinancing of the owner's acquisition financing with additional advance features under the new loan to provide funds for tenant improvements, leasing commissions, capital improvements and return of equity. However, to the extent that cash was expended on tenant improvements owned by the landlord for Federal tax purposes, no accession to wealth occurred and the tenant did not realize gross income. |
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