Investment Opportunity #1: RETAIL Fully occupied single tenant 50,000 SF Junior Big Box Retail Building on 5
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Investment Opportunity #1: RETAIL
- Fully occupied single tenant 50,000 SF "Junior Big Box" Retail Building on 5 acres of land. "B+" Credit Tenant (i.e. TJ Maxx/Marshalls/Burlington Coat/Barnes & Noble)
- 0% Vacancy
- Rent $20/SF NNN
- No additional income
- Lease Term = 20 years, start 1/1/2020
- Expenses are as follows (all as a % of EGI)
- Property Taxes 15%
- Insurance 3%
- Maintenance 20%
- Management Fee 8%
- Reserves for Replacement 5%
- Other expenses 5%
- Price = $11,500,000
- Capital Stack:
- 80% LTV @7.5% Interest Rate, 25 Year Term, Fully Amortized
- Constrained by 1.2 DSCR
- 10% Borrowed Equity@ 12% Preferred Return (Interest)
- 10% Interest Rate on Shortfalls
- Remainder Cash Equity
- Terminal Cap Rate = 9%
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: