7.00% Cap Sale-Leaseback Investment Opportunity

Transcription

1 7.00% Cap Sale-Leaseback Investment Opportunity 5200 Holt Blvd Montclair, California $300,000 Annual NNN Income 2% Annual Increases Lease Terms Negotiable 7.00% Sale-Leaseback target capitalization rate. Established dealership with auto body and auto service. Lease Terms $25,000 triple net income per month. 2% annual increases. Seller will sign a 5, 10 or 15 year lease.

2 5200 Holt Blvd Montclair, Ca Security of Investment Seller will personally guarantee the lease transaction. West Coast Auto Sales has been operating for over 15 years and has a well established reputation in the region for quality vehicles from economy to high-line models. Current profit per year exceeds $1,000,000. Auto body and auto service component on-site and currently subleased at $15,000 per month modified gross. Seller to retain exclusive rights to all aspects of the sublease, as the component is tied to the dealership business. Seller owns adjacent properties and will retain ownership as the uses are ancillary to the dealership operations. Grocery-anchored center going in across the street in 2018 creating a "stop-flow" effect

3 5200 Holt Blvd Montclair, Ca Future Grocery Anchor Zoning: SP Specific Plan Traffic: 20,000 CPD E/W 22,000 CPD N/S Grocery anchored retail going in across the street in 2018 creating a "stopflow" effect. 2.5 Acre Site Zoning, Traffic Count and Future Projects Owned by the current owner & intends to continue ownership after sale of dealership (2 and 4)

4 Return on Investment Buyer Advantages of Sale-Leaseback Higher Return Rate. The buyer usually receives a higher rate of return in a sale-leaseback than in a conventional loan arrangement. In addition, at the end of the lease term, the buyer receives the benefit of any appreciation in the value of the property. Finally, the buyer can leverage the purchase with mortgage financing; this may further magnify the return rate on the cash invested. Predictable and Secure Return Rate. The long-term net lease enables the buyer to estimate accurately the expected future rate of return. Also, the extended term of the lease provides the buyer with protection from downturns in the real estate market and an inflation hedge, assuming that the property value appreciates over time. Greater Ease in Handling a Seller Default. In the event that the seller defaults under the lease, the buyer can simply terminate the lease and have the seller evicted. This is offset on this particular property because the risk is offset with existing sublease tenants. Built-in Tenant. Finally, in purchasing the property, the buyer has a built-in tenant, namely the seller. The information contained in this document has been obtained from sources believed reliable. While Prestera Real Estate does not doubt its accuracy, Prestera Real Estate has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

5 Lease Rent at Market The information contained in this document has been obtained from sources believed reliable. While Prestera Real Estate does not doubt its accuracy, Prestera Real Estate has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.