1173 Fortune Boulevard, Shiloh, Illinois Office (618) Fax (618)

Transcription

1 6,240 Sq. Ft 2 levels 100% Leased to Long Term Tenants 10.22% CAP Rate based on actual Low Operating Expenses New Roof & Remodeled 1 st Floor Located in Copper Bend Sale: $550,000 ($88.14 per Sq. Ft.) 1173 Fortune Boulevard, Shiloh, Illinois Office (618) Fax (618) Tony Smallmon Terry Heimann Tonys@barbermurphy.com Terryh@barbermurphy.com Information herein is not warranted and subject to change without notice. We assume no liability on items included in quoted price. Broker makes no representation as to the environmental condition of the offered property and recommends Purchaser's/Lessee's independent investigation.

2 1173 Fortune Boulevard, Shiloh, IL Office (618) Fax (618) Office 6,240 Office SF 2900 Frank Scott Parkway West # Frank Scott Parkway West Belleville, IL SALE INFORMATION For Sale: Sale Price: Sale Price/SF: CAP Rate: Yes $550,000 $ % LEASE INFORMATION For Lease: Lease Rate: Lease Type: Net Charges: CAM Charges: Term: No SQUARE FEET AVAILABLE Building Total: Total Available: Direct Lease: Sublease: Office: Retail: Max Contiguous: Min Divisible: Leasing Comments: Comments 6,240 SF 6,240 SF 0 SF 0 SF 6,240 SF 0 SF 3,120 SF 3,120 SF 100% Leased Office Building with Strong Tenants. Property is offered at a 10.22% CAP Rate based on actual income levels. A new roof has been recently installed. The building is within a Planned Unit Development and the Operating Expenses have been kept very low. The first floor has been remodeled to serve two (2) new tenants, both on a 5 year lease. A Law Firm has occupied the lower level since PROPERTY INFORMATION File No: Parcel No: part of Complex: County: Zoning: Saint Clair C-1 Zoning By: City of Belleville Acres: 0.14 Frontage: Depth: Year Built: Class: 1989 B Rehab Year: Floors: 2 Sprinklers: Ceiling Height: Parking: 25 Traffic Count: 15,700 ADT Property Tax: Tax Year: TIF: No Enterprise Zone: Listing Broker(s) Terry Heimann Tony Smallmon Office:(618) Office:(618) TerryH@BarberMurphy.com tonys@barbermurphy.com Cell: (618) The information above has been obtained from sources believed reliable, however no warrenty or represention expressed or implied is made as to the accuracy of the information contained herein. In same is submitted subject to errors, omissions, change of price, retial or other conditions including withdrawal without notice. It is your responsibility to independently confirm accuracy.

3 Real Estate Investment Summary Commercial Income Property Office Office Building 2900 Frank Scott Pkwy West 2900 Frank Scott Pkwy West, Suite 990 Belleville, IL Built in 1989 $550,000 Excellent investment opprtunity in Belleville, IL. Beautiful building. Current actual income sets the asking price at a 10.22% CAP. Barber Murphy Group Tony Smallmon Terry Heimann 1173 Fortune Blvd Shiloh, IL (618) (618) (618) TerryH@BarberMurphy.com July 6, 2012 ProAPOD Real Estate Investment Software

4 Annual Property Operating Data Property: 2900 Frank Scott Pkwy West Price: Location: Loans: No.Units: Age: 1989 SqFootage: 6,240 Down: Gross Scheduled Income - Vacancy & Credit 0% Effective Gross Income Laundry Income + Other Income Gross Operating Income Operating Expenses: Annual $ % of GOI $/Unit Real Estate Taxes 8, Insurance 1, Water/Sewer CAM 3, Property Management HVAC Service Maintenance & Reserve 2, Trustee Fee Pest Control Landscaping Miscellaneous Replacement Reserves Total Operating Expenses 17, Net Operating Income Proposed Investment Down Payment 20.00% 110,000 + Acq Costs 0.27% 1,500 + Loan Points 0 Total Investment 111,500, Proposed Financing First Loan: $440,000, fixed-rate, 5%, 20 yrs, 0% pts Second Loan: None Third Loan: None LTV: 80.00% DCR: 1.61 BER: 70.88% Annual Debt Service Cash Flow Before Taxes $ $ $ $ $ $550, , ,000 Annual $ 71,964-71,964-1,320 73,284 17,100 56,184 34,846 21,338 Capitalization Rate 10.22% Gross Rent Multiplier 7.64 Price Per Unit Price Per Square Foot $88.14 Cash on Cash 19.14% ProAPOD All information is deemed reliable but not guaranteed. APOD

5 Rent Scenarios Unit Count Unit Mix Average Average Rent Rent Rent Square Feet Monthly Rent Scenario1 Scenario2 Scenario3 1 Office 1,000 1,000 1,000 1,000 1,000 1 Office 3,120 2,700 2,800 2,900 2,900 1 Office 2,120 2,297 2,297 2,297 2,650 Cash Flow Gross Scheduled Income 71,964 73,164 74,364 78,600 Less: Vacancy & Credit Loss Effective Gross Income 71,964 73,164 74,364 78,600 Plus: Other Income 1,320 1,320 1,320 1,320 Gross Operating Income 73,284 74,484 75,684 79,920 Less: Operating Expenses 17,100 17,100 17,100 17,100 Net Operating Income 56,184 57,384 58,584 62,820 Less: Debt Service 34,846 34,846 34,846 34,846 Less: First-year non-funded upgrades Cash Flow Before Taxes 21,338 22,538 23,738 27,974 Ratios Capitalization Rate 10.22% 10.43% 10.65% 11.42% Gross Rent Multiplier % % % Operating Expense Ratio 23.33% 22.96% 22.59% 21.40% Debt Coverage Ratio % % % Break-Even Ratio 70.88% 69.74% 68.63% 65.00% Cash-on Cash Return 19.14% 20.21% 21.29% 25.09% Debt service includes loan payment for upgrade loan (if any in first-year). Non-funded upgrades (if any in first-year) are added to the initial investment for the cash-on-cash return computation. Comments: Rent Scenario's shows executed options for tenants. ProAPOD All information is deemed reliable but not guaranteed. RENTSCENARIO

6 Rent Roll Summary Annual Rent ($) Units _percent Footage _percent Occupied 70, % 6, % Vacant Total 70, ,240 No. Address Primary Tenant Unit Type Square Footage Current Rent Start Date End Date 1 Upper Lvl 1 Vivian Sierra - unit 986 Office 1,000 1,000 7/1/10 6/30/15 2 Lower Lvl 1 Bonaldi, Clinton & Davis Office 3,120 2,600 1/1/07 12/31/13 3 Upper Lvl 2 Dr. Chalfant - unit 990 Office 2,120 2,297 7/1/10 6/30/15 Date Last Increase Comments Personal guarantee 6-1 year options 1-5 year option ProAPOD Real Estate Investment Software All information is deemed reliable but not guaranteed. 1 of 1

7 Proforma Income Statement EOY1 EOY2 EOY3 EOY4 EOY5 EOY6 EOY7 EOY8 EOY9 EOY10 Income Gross Scheduled Income 71,964 73,403 74,871 76,369 77,896 79,454 81,043 82,664 84,317 86,004 Less: Vacancy Allowance Effective Gross Income 71,964 73,403 74,871 76,369 77,896 79,454 81,043 82,664 84,317 86,004 Plus: Other Income 1,320 1,320 1,320 1,320 1,320 1,320 1,320 1,320 1,320 1,320 Gross Operating Income 73,284 74,723 76,191 77,689 79,216 80,774 82,363 83,984 85,637 87,324 Less: Operating Expenses 17,100 17,271 17,444 17,618 17,794 17,972 18,152 18,334 18,517 18,702 Net Operating Income 56,184 57,452 58,748 60,071 61,422 62,802 64,211 65,651 67,120 68,622 Less: Debt Service 34,846 34,846 34,846 34,846 34,846 34,846 34,846 34,846 34,846 34,846 Less: Upgrades Plus: Loan for Upgrades Cash Flow Before Tax 21,338 22,607 23,902 25,225 26,576 27,956 29,365 30,805 32,275 33,776 Taxable Income [Losses carried forward] Taxable Revenues 73,284 74,723 76,191 77,689 79,216 80,774 82,363 83,984 85,637 87,324 Less: Deducted Expenses 17,100 17,271 17,444 17,618 17,794 17,972 18,152 18,334 18,517 18,702 Less: Interest Expense 21,701 21,029 20,322 19,579 18,798 17,977 17,114 16,207 15,253 14,251 Less: Amortized Points Less: Depreciation 10,828 11,282 11,282 11,282 11,282 11,282 11,282 11,282 11,282 10,828 Ordinary Income 23,654 25,142 27,144 29,210 31,342 33,543 35,816 38,162 40,586 43,542 Taxable Income 23,654 25,142 27,144 29,210 31,342 33,543 35,816 38,162 40,586 43,542 Taxes Due (-=Savings) 8,279 8,800 9,500 10,223 10,970 11,740 12,535 13,357 14,205 15,240 Cash Flow After Tax 13,059 13,807 14,402 15,001 15,606 16,216 16,830 17,448 18,070 18,536 Purchase Analysis Capitalization Rate 10.22% 10.45% 10.68% 10.92% 11.17% 11.42% 11.67% 11.94% 12.20% 12.48% Gross Rent Multiplier Net Income Multiplier Operating Expense Ratio 23.33% 23.11% 22.89% 22.68% 22.46% 22.25% 22.04% 21.83% 21.62% 21.42% Loan to Value 77.61% 75.10% 72.46% 69.68% 66.76% 63.70% 60.47% 57.08% 53.52% 49.78% Debt Coverage Ratio Break-Even Ratio 70.88% 69.75% 68.63% 67.53% 66.45% 65.39% 64.35% 63.32% 62.31% 61.32% Cash-on-Cash Before Tax 19.14% 20.27% 21.44% 22.62% 23.84% 25.07% 26.34% 27.63% 28.95% 30.29% Cash on Cash After Tax 11.71% 12.38% 12.92% 13.45% 14.00% 14.54% 15.09% 15.65% 16.21% 16.62% ProAPOD Real Estate Investment Software All information is deemed reliable but not guaranteed. PROFORMA: 1-2

8 Proforma Income Statement EOY1 EOY2 EOY3 EOY4 EOY5 EOY6 EOY7 EOY8 EOY9 EOY10 Sales Proceeds Sales Value 638, , , , , , , , , ,000 Less: Cost of 6% 38,280 39,180 40,020 40,920 41,880 42,780 43,740 44,760 45,720 46,740 Less: Loan Repayment 426, , , , , , , , , ,775 Sales Proceeds Before Tax 172, , , , , , , , , ,485 Less: Taxes due to Sale 16,877 18,501 24,085 29,867 35,846 41,627 47,606 53,782 59,761 65,937 Sale Proceeds After Tax 155, , , , , , , , , ,548 Sale Ratios/Measures: Capitalization Rate 8.81% 8.80% 8.81% 8.81% 8.80% 8.81% 8.81% 8.80% 8.81% 8.81% Gross Rent Multiplier Loan Balance/Sales Value 66.91% 63.25% 59.75% 56.19% 52.61% 49.14% 45.62% 42.09% 38.63% 35.14% Profitability Index: Before Debt Profitability Index: Before Tax Profitability Index: AfterTax Analysis Measures: IRR Before Debt 19.3% 15.7% 14.5% 13.9% 13.6% 13.3% 13.2% 13.1% 13.0% 12.9% IRR Before Tax 74.2% 51.4% 43.4% 39.1% 36.3% 34.3% 32.7% 31.5% 30.5% 29.6% IRR After Tax 48.2% 38.5% 32.6% 29.4% 27.4% 25.8% 24.6% 23.7% 22.8% 22.1% NPV Before 8% 57,319 77,530 95, , , , , , , ,922 NPV Before 8% 68,317 99, , , , , , , , ,794 NPV After 8% 41,515 68,569 85, , , , , , , ,426 Financial Management RoR 48.21% 37.21% 30.60% 27.00% 24.62% 22.79% 21.39% 20.27% 19.29% 18.48% Accumulation of Wealth 165, , , , , , , , , ,529 Equity Yield Rate: CFAT/(Sale Value-Loan Repay) Return on Equity AVG Return on Equity 6.19% 5.75% 5.36% 5.02% 4.72% 4.47% 4.25% 4.04% 3.86% 3.67% % 18.88% 16.00% 14.54% 13.37% 11.90% 11.18% 10.56% 9.65% 9.21% 60.65% 45.77% 37.96% 33.04% 29.52% 26.90% 24.86% 23.17% 21.77% Report Assumptions: Annual periods are End of Year 1 January to 31 December. Purchase assumed on 1 January in Year 1. Sale designated on 31 December in Year 10. Growth: Rent BOY2@ 2%. OInc BOY2@ 0 %. OpExp BOY2@ 1%. Deducted Expenses exclude Replacement Reserve. Vacancy allowance: BOY1@ 0% Resale method determined by capitalizing next year's 9%. Sales value rounded to the nearest 1,000. Mid-month convention for depreciation applied in year of purchase and year of sale. Investor assumptions: ordinary income tax 35%. FMMR computed with investor's safe rate rate of 3% and reinvestment rate of 7%. ProAPOD Real Estate Investment Software All information is deemed reliable but not guaranteed. PROFORMA: 1-2

9 Acquisition Property Cost Sale Price $ 550,000 + Closing Costs 1,500 Property Cost: $ 551,500 Property Financing First Loan Amount $ 440,000 - Loan Points First Loan Proceeds: $ 440,000 Second Loan Amount $ - - Loan Points Second Loan Proceeds: - - Third Loan Amount $ - - Loan Points Third Loan Proceeds: - Total Loan Proceeds: 440,000 Cash Required at Acquisition $ 111,500 Annual Debt Service (PI) First Loan Payment $ 34,846 + Second Loan Payment - + Third Loan Payment - Annual Debt Service (PI): $ 34,846 + Annual Property Tax 8,774 + Annual Property Insurance 1,725 Annual Debt Service (PITI): $ 45,345 Monthly Payment (PITI) $ 3, % 20 Loan Assumptions: First loan: Fixed-rate at 5%, fully amortized 20 years, 0% points. Second Loan: Not applicable. Third Loan: Not applicable. ProAPOD All information is deemed reliable but not guaranteed. ACQUISITION

10 Return on Equity Year Year 10 Appreciation Purchase Value $ 550,000 + Cumm Appreciation (years 1-9) 212,000 Adjusted end of Year 10 $ 762,000 Sale end of Year ,000 - Adjusted Value 762,000 Appreciation in Year 10 17,000 Year 10 Profit + Appreciation $ 17,000 + Cash Flow (CFBT) 33,776 + Principal Reduction 20,595 + Tax Benefit (Loss)* (15,240) Profit in Year 10 56,131 Equity to Date Original Equity $ 111,500 + Cumm Profit (years 1-9) 498,070 Equity to Date $ 609,570 RETURN ON EQUITY - YEAR 10: (PROFIT/EQUITY TO DATE) 9.21% AVERAGE RETURN ON EQUITY (YEARS 1-10): 21.77% *YEAR 10 TAX BENEFIT (LOSS) Taxable Revenues - Deducted Expenses - Interest Expense - Amortized Points - Depreciation Ordinary Income x Tax 35% Tax Benefit (Loss) 87,324 18,702 14,251 10,828 43, (15,240) Report Assumptions: S/L 39 years. Disclaimer: This is intended for purposes of projection and analysis and should not be used for preparation of income tax returns. The user of this program and information should consult a tax specialist before making any investment decision. ProAPOD All information is deemed reliable but not guaranteed. ROE

11 Sale Proceeds Year Sale Proceeds Before Tax Sale Price $ 779,000 - Costs of 6% 46,740 - Loan Repayment 273,775 Sale Proceeds Before Tax $ 458,485 Capital Gain Results Sale Price $ 779,000 - Costs of Sale 46,740 Net Sale Price $ 732,260 Cost Basis at Acquisition $ 550,000 + Costs of Acquisition 1,500 + Capital Additions 0 - Depreciation Taken 111,910 Adjusted Basis at Sale 439,590 Capital Gain (Loss) $ 292,670 - Suspended Passive Losses 0 Net Capital Gain (or Loss) $ 292,670 - Cost Recovery Recaptured 111,910 Adjusted Net Capital Gain (or Loss) $ 180,760 Federal Tax on Sale Cost Recovery 25% (27,977) Capital Gain 21% (37,960) Allowable Deductions at Sale + Unamortized Points - + Prepayment Penalties - Total Deductions at Sale - Tax Savings Due to 35% - Taxes due to Sale $ 65,937 Sale Proceeds After Tax $ 392,548 Report Assumptions: Acquisition on January 1 Year 1. Sale on December 31 Year 10. S/L 39 years. Disclaimer: This report is intended for the purposes of projection and analysis and should not be used for preparation of income tax returns. The user of this program and information should consult a tax specialist before making any investment decision. ProAPOD All information is deemed reliable but not guaranteed. SALE

12 3-Year Monthly Cash Flow Operating - Operating - Loan + Principal + Annual Month Income Expenses Payment = Cash Flow Reduction Appreciation = Net Gain 1 6,107 1,425 2,904 1,778 1,070 2, ,107 1,425 2,904 1,778 1,075 2, ,107 1,425 2,904 1,778 1,079 2, ,107 1,425 2,904 1,778 1,084 2, ,107 1,425 2,904 1,778 1,088 2, ,107 1,425 2,904 1,778 1,093 2, ,107 1,425 2,904 1,778 1,098 2, ,107 1,425 2,904 1,778 1,102 2, ,107 1,425 2,904 1,778 1,107 2, ,107 1,425 2,904 1,778 1,111 2, ,107 1,425 2,904 1,778 1,116 2, ,107 1,425 2,904 1,778 1,121 88,000 90,899 73,284 17,100 34,846 21,338 13,144 88, , ,227 1,439 2,904 1,884 1,125 3, ,227 1,439 2,904 1,884 1,130 3, ,227 1,439 2,904 1,884 1,135 3, ,227 1,439 2,904 1,884 1,139 3, ,227 1,439 2,904 1,884 1,144 3, ,227 1,439 2,904 1,884 1,149 3, ,227 1,439 2,904 1,884 1,154 3, ,227 1,439 2,904 1,884 1,158 3, ,227 1,439 2,904 1,884 1,163 3, ,227 1,439 2,904 1,884 1,168 3, ,227 1,439 2,904 1,884 1,173 3, ,227 1,439 2,904 1,884 1,178 15,000 18,062 74,723 17,271 34,846 22,607 13,817 15,000 51, ,349 1,454 2,904 1,992 1,183 3, ,349 1,454 2,904 1,992 1,188 3, ,349 1,454 2,904 1,992 1,193 3, ,349 1,454 2,904 1,992 1,198 3, ,349 1,454 2,904 1,992 1,203 3, ,349 1,454 2,904 1,992 1,208 3, ,349 1,454 2,904 1,992 1,213 3, ,349 1,454 2,904 1,992 1,218 3, ,349 1,454 2,904 1,992 1,223 3, ,349 1,454 2,904 1,992 1,228 3, ,349 1,454 2,904 1,992 1,233 3, ,349 1,454 2,904 1,992 1,238 14,000 17,230 76,191 17,444 34,846 23,902 14,524 14,000 52,426 TOTAL 224,199 51, ,537 67,847 41, , ,331 Report Assumptions: Operating Income signifies Gross Operating Income (all income less vacancy allowance). Non-funded upgrades are subtracted from cash flow in the month of expenditure. ProAPOD All information is deemed reliable but not guaranteed. MONTHLY