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%

 

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1 2 3 8 9 10 11 12 456700 = Proforma Summary Sheet - Retail Building Data Square Feet Rent Per Square Foot Other Income NNN Vacancy Year 1 0.00% 16 17 18 19 20 21 22 23 24 25 26 13 2345 14 15 First Year Operating Statement Potential Rental Income Other Income Potential Gross Income Vacancy & Credit Loss Effective Gross Income Property Taxes Insurance Maintenance Management Fee Reserves for Replacement Other expenses Total Expenses Net Operating Income Debt Service Cash Flow Before Tax Investment Data Purchase Price Terminal Cap Rate Cost of Sale EOY 5 Cash Equity (Remainder) Borrowed Equity (10%) Additional Borrowed Equity First Mortgage Loan Interest Rate Loan Amortization (years) % of Purcha 8.00% 0 LTV 0.00% - % of EGI DSCR Loan Amount (LTV) Loan Amount (DSCR) Maximum Loan Amount Initial Equity Monthly Debt Service $0 Annual Debt Service $0 Borrowed Equity Preferred Return. 15% Shortfall Interest 10% SSS 27 28 29 Inflation/Variable Rates 30 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 31 Potential Rental Income N/A 2.50% 2.50% 2.50% 2.50% 2.50% 32 Other Income N/A 2.50% 2.50% 2.50% 2.50% 2.50% 33 Vacancy 34 Operating Expenses N/A 5.00% 5.00% 5.00% 5.00% 5.00% 35 1 2 3 8 9 10 11 12 456700 = Proforma Summary Sheet - Retail Building Data Square Feet Rent Per Square Foot Other Income NNN Vacancy Year 1 0.00% 16 17 18 19 20 21 22 23 24 25 26 13 2345 14 15 First Year Operating Statement Potential Rental Income Other Income Potential Gross Income Vacancy & Credit Loss Effective Gross Income Property Taxes Insurance Maintenance Management Fee Reserves for Replacement Other expenses Total Expenses Net Operating Income Debt Service Cash Flow Before Tax Investment Data Purchase Price Terminal Cap Rate Cost of Sale EOY 5 Cash Equity (Remainder) Borrowed Equity (10%) Additional Borrowed Equity First Mortgage Loan Interest Rate Loan Amortization (years) % of Purcha 8.00% 0 LTV 0.00% - % of EGI DSCR Loan Amount (LTV) Loan Amount (DSCR) Maximum Loan Amount Initial Equity Monthly Debt Service $0 Annual Debt Service $0 Borrowed Equity Preferred Return. 15% Shortfall Interest 10% SSS 27 28 29 Inflation/Variable Rates 30 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 31 Potential Rental Income N/A 2.50% 2.50% 2.50% 2.50% 2.50% 32 Other Income N/A 2.50% 2.50% 2.50% 2.50% 2.50% 33 Vacancy 34 Operating Expenses N/A 5.00% 5.00% 5.00% 5.00% 5.00% 35