Investment Summary & Highlights

Transcription

1 Investment Summary & Highlights Financial: New Loan: Analysis Asumptions: Price $ 2,500,000 Price per Sq. Ft. $ Contract Rental Income $ 119,549 Gross Operating Income $ 164,226 Total Operating Expenses $ 44,677 Net Operating Income (Yr. 1) $ 119,549 Cap Rate (Yr. 1) 4.8% Cap Rate (5 Yr. Avg.) 6.8% Pre-Tax Cash-on-Cash (5 Yr. Avg.) 6.1% Acquisition Cost Estimate $ 6,500 Loan Points $ 8,125 Cash Invested $ 889,625 Estimated NEW Loan Amt. $ 1,625,000 NEW Loan LTV 65% Interest Rate 5.25% Term 25 Annual Debt Service $ 116,853 Debt Coverage Ratio 1.02 Vacancy Factor 0% Income Escalator 2% Expense Escalator 2% The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein. The actual future performance numbers are guaranteed to be either higher or lower than the numbers illustrated on this page.

2 6595 Commerce Blvd Rohnert Park, CA Lease Summary / Rent Roll Rentable Percent of $ per Sq. Ft. $ per Sq. Ft./Yr CAM Monthly CAM PSF Suite/Address Start Date End Date Monthly Rent Sq. Ft. Subject per month per year Budget Monthly Options Deposit Comments Sonoma Valley Foods 7/1/2016 6/30/2019 $ 9, , % $ 0.74 $ 8.86 $ 3, $ 0.28 Four (4), Sixty (60) month options $ 8, Market rate adjustment to $1.15 psf / month on 7/1/19. Monthly Totals: $ 9, , % $ 0.74 $ 8.86 $ 3, $ 8, Gross Potential Income: $ 119, Avg. does not include the available space. The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein.

3 Annual Property Operating Data Name Location Type of Property Industrial Purchase Price 2,500,000 Size of Property 13,500 (Sq. Ft./Units) Acquisition Costs 6, No. of Units 1 Loan Points 8, Purpose Investment Evaluation Cash Invested 889,625 #Pmts. Assessed/Appraised Values Potential No. 1 Balance Payment /Yr. Interest Term Land 20% $ 500,000 1st $1,625,000 $9, % 25 Improvements 80% $ 2,000,000 2nd 12 Personal Property $ - Total 100% $ 2,500,000 Potential No. 2 1st Adjusted Basis as of: 24-Apr-18 $ 2,500,000 2nd $/SQ FT or /Unit ALL FIGURES ARE ANNUAL COMMENTS/FOOTNOTES 1 POTENTIAL RENTAL INCOME 119,549 2 Plus: Other Income (affected by vacancy) 44,677 $ 0.28 CAM Reimbursement 3 Less: Vacancy & Cr. Losses ( of ) Property has been at 100% since EFFECTIVE RENTAL INCOME 5 Plus: Other Income (not affected by vacancy) 6 GROSS OPERATING INCOME 164,226 $/SQ FT or /Unit % of Gross % of Gross OPERATING EXPENSES: 7 Real Estate Taxes % 30,000 Based upon 1.2% of purchase price. 8 Personal Property Taxes 9 Property Insurance % 4, Off Site Management % 6, BLANK 12 BLANK 13 Bank Charges 14 Fire Detection % 2,253 Sprinkler, Monitor & Repair 15 Roof Maintenance Contract 16 Utilities: 17 Water-Landscaping 18 Sewer 19 Garbage 20 Electric - House Meter 21 Accounting and Legal 22 Licenses/Permits 23 HVAC Maintenance Contract 24 Lighting Repairs & Maintenance 25 Landscape Maint. Tenant pays for landscaping 26 Maintenance & Repairs 27 Reserves for Improvements 28 Site Maintenance Contract % 2, Security Contract TOTAL OPERATING EXPENSES % $ ,677 37% Expenses as a % of GOI 32 NET OPERATING INCOME 119, % Cap Rate 33 Less: Annual Debt Service 116, Debt Coverage Ratio 34 Less: Funded Reserves 35 Less: Gross Rent Multiplier 36 Less: 37 CASH FLOW BEFORE TAXES $2, % Cash-on-Cash or ROI The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein. The actual future performance numbers are guaranteed to be either higher or lower than the numbers illustrated on this page.

4 Cash Flow Worksheet Property Name 6595 Commerce Blvd Purchase Price $ 2,500, Prepared For Investment Evaluation Acquisition Costs $ 6, Prepared By William M. Severi, CCIM Loan Points $ 8, Date Prepared 24-Apr-18 Cash Invested $ 889, Mortgage Data Cost Recovery Data 1st Mortgage 2nd Mortgage Improvements Personal Property Amount 1,625,000 Value 2,000,000 Interest Rate 5.25% C. R. Method SL Term 25 Useful Life 39 Payments/Year In Service Date 1/1/2018 Periodic Payment $ 9,738 - Recapture Annual Debt Service 116,853 - (All/None/Excess) LTV 65% Investment Tax Credit ($$ or %) 1st Mortgage 2nd Mortage Taxable Income Year : 1/1/18 1/1/19 1/1/20 12/31/20 12/31/21 1 Potential Rental Income 119, , , , , Other Income affected by vacancy 44,677 45,570 46,482 47,412 48, Vacancy & Credit Losses 4 =Effective Rental Income 164, , , , , Other Income not affected by vacancy 6 =Gross Operating Income 164, , , , , Operating Expenses 44,677 45,571 46,482 47,412 48,360 8 =NET OPERATING INCOME 119, , , , , Interest - 1st Mortgage 84,542 82,805 80,973 79,044 77, Interest - 2nd Mortgage 11 -Cost Recovery - Improvements 49,145 51,282 51,282 51,282 51, Cost Recovery - Personal Property =Real Estate Taxable Income (14,139) 18,838 57,770 63,501 69, Tax Liability (Savings) at 30.0% (4,242) 5,651 17,331 19,050 20,823 Cash Flow 17 NET OPERATING INCOME (Line 8) 119, , , , , Cap Rate 4.8% 6.1% 7.6% 7.8% 7.9% 19 -Annual Debt Service 116, , , , , Funded Reserves 21 Capital Improvements 22 =CASH FLOW BEFORE TAXES 2,695 36,071 73,173 76,973 80, Cash-on-Cash BEFORE Tax 0.3% 4.1% 8.2% 8.7% 9.1% 24 -Tax Liability (Savings) (Line 16) (4,242) 5,651 17,331 19,050 20, Investment Tax Credit 26 =CASH FLOW AFTER TAXES $6,937 $30,420 $55,841 $57,923 $60,026 Cash-on-Cash AFTER Tax 0.78% 3.42% 6.28% 6.51% 6.75% Copyright 1997 by the Commercial Investment Real Estate Institute The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein. The actual future performance numbers are guaranteed to be either higher or lower than the numbers illustrated on this page.

5 Charts and Key Ratios Net Operating Income 200, , ,000 50,000 0 Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 Net Operating Income Key Ratios 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Yr. 1 Yr. 2 Yr. 3 Yr. 4 Yr. 5 5 Yr Avg. Cap Rate 4.78% 6.12% 7.60% 7.75% 7.91% 6.83% Cash-on-Cash BEFORE Tax 0.30% 4.05% 8.23% 8.65% 9.09% 6.06% The above information, while not guaranteed, has been secured from sources we believe to be reliable. This is not an offer to sell or lease and is subject to change or withdrawal. An interested party should verify the status of the property and the information herein. The actual future performance numbers are guaranteed to be either higher or lower than the numbers illustrated on this page.