Tremendous Upside Potential by BTS/Ground Lease. No Deferred Maintenance Issues. Lake Mead Frontage Right Across the Schools

Transcription

1 Investment Sales NV BS Tremendous Upside Potential by BTS/Ground Lease New Major Furniture Tenant Who Operates Multiple Locations in Las Vegas Valley No Deferred Maintenance Issues Lake Mead Frontage Right Across the Schools 30,239 Daily Vehicle Traffic Counts Phone: Fax: N Buffalo Dr, Ste 120 Las Vegas, NV

2 Table of Contents Confidentiality & Disclaimer... 3 Biography... 4 Closed Transactions... 5 Leasing Transactions... 6 Property Description... 8 Executive Summary... 9 Real Estate Investment Details Pro Forma Summary Location Map Aerial Map Maps and Aerials Property Photos Property Photos Annual Property Operating Data Tenant Mix Report Operating Income Analysis Financial Indicators Cash Flow Analysis Investment Return Analysis Loan Analysis Equity vs. Debt Property Equity Analysis Cumulative Wealth Analysis Internal Rate of Return Analysis Demographics Posted... 30

3 CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Virtus Commercial and should not be made available to any other person or entity without the written consent of Virtus Commercial. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Virtus Commercial has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Virtus Commercial has not verified, and will not verify, any of the information contained herein, nor has Virtus Commercial conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Virtus Commercial is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Virtus Commercial, its affiliates or subsidiaries, or any agent, product, service or commercial listing of Virtus Commercial, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR VIRTUS COMMERCIAL AGENT FOR MORE DETAILS.

4 Biography Professional Bio I am a Las Vegas commercial real estate broker and leader of The Beck Group at Virtus Commercial, specializing in multi-family, hotel/motel, office, retail sales and leasing. Our team has leased over 1 million square feet of space and has transacted over $50 MM in asset sales. The diverse team is fluent in Korean, Japanese and Chinese. We are dedicated to the success of our clients and we provide unparalleled industry insights, added-value services and financial acumen to all transactions whether representing the tenant, landlord or investor. I possess an Economics degree from the University of Michigan and worked in the financial services industry prior to commercial real estate. Our team is highly educated and experienced in sales and marketing, leveraging our skill sets to the benefit of our clients. For us no transaction is too complicated as we have the resources to handle a 1031 exchange, sale-leaseback or challenging financing situations. Our reputation rests on the success of our client referrals. Virtus Commercial, Apartments/Multifamily & Hotels/Motels Specialist from 02/2016 to present. We are one of top ten commercial real estate companies in Nevada and Our professionals are adept at all aspects of deal making. We cultivate it on the buy side or market it on the sell side utilizing all our talents and strategies to maximize value on every transaction. Also do landlords and tenants representations along with property management capability. R.O.I. Commercial Real Estate, Inc. Senior Vice President from 01/2016 to 02/2016. ROI Commercial is a full service commercial real estate (CRE) brokerage firm servicing buyers, sellers, tenants and landlords in all areas of commercial real estate transactions. As market leaders in retail space, ROI handles commercial retail leases, land development and brokerage sales as well as tenant representation throughout Las Vegas. With over 120 years of combined knowledge and real estate experience in the Las Vegas market. Siegel Commercial Advisors, Senior Director from 09/2014 to 01/2016. Responsible for facilitating the transaction of commercial real estate of acquisition and disposition as well as help assisting the financing of the deal by referring to the lenders. Marcus & Millichap From 02/2013 to 09/2014. Since 1971, Marcus & Millichap Real Estate Investment Services has been the premier provider of investment real estate brokerage services, including investment sales, financing, research and advisory services. The foundation of our investment sales is the depth of our local market knowledge. Our history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider nationally. page 4 of 32

5 CLOSED TRANSACTIONS BY BRETT S. BECK Property Type Location Sale Price Multifamily 2320 Tucumcari Dr, Las Vegas, NV $14,200,000 Office Medical 7710 W Sahara Ave, Las Vegas, NV $7,800,000 Multifamily 5100 Obannon Dr, Las Vegas, NV $7,700,000 Multifamily 450 E Twain Ave, Las Vegas, NV $4,200,000 Retail/NNN 1915 Rock Springs Dr, Las Vegas, NV $3,400,000 Multifamily 1880 E Rochelle Ave & 4265 S Bruce St, Las Vegas, NV $3,400,000 Retail 3242 E Desert Inn Rd, Las Vegas, NV $2,800,000 Office Center 1785 E Sahara Ave, Las Vegas, NV $1,925,000 Multifamily 2725 E Evans Ave, North Las Vegas, NV $1,725,000 Retail 3220 S Nellis Blvd, Las Vegas, NV $1,700,000 Hospitality 2805 Fremont St, Las Vegas, NV $1,290,000 Hospitality 2401 N Las Vegas Blvd, North Las Vegas, NV $1,250,000 Hospitality 1873 N Las Vegas Blvd, North Las Vegas, NV $1,000,000 Bar/NNN 495 & 501 E Twain Ave, Las Vegas, NV $950,000 Retail 4805 E Charleston Blvd, Las Vegas, NV $830,000 Mobile Home Park 93 Brittle Bush Ln, West Wendover, NV $805,838 Retail/NNN 5587 South Rainbow Blvd, Las Vegas, NV $730,000 Multifamily N Crawford St, North Las Vegas, NV $465,000 Multifamily 3822 Royal Crest St, Las Vegas, NV $300,000 Multifamily 2416 Clifford Ave, Las Vegas, NV $270,000 Multifamily 216 W Philadelphia Ave, Las Vegas, NV $210,000 Multifamily 2408 Clifford Ave, Las Vegas, NV $140,000 page 5 of 32

6 LEASING TRANSACTIONS BY BRETT S. BECK Type Location Tenant Sq. Ft. Retail, Building A, Dream Furniture 19,277 Office 3940 N Martin L King Blvd, Ste 105 & 110, N Las Vegas, NV FirstMed Health and Wellness Centers 5,639 Retail 650 W Sunset Rd, Henderson, NV The Fabulous Las Vegas Events LLC 5,345 Office 1785 E Sahara Ave, Ste 440, Las Vegas, NV Center for Spiritual Living Southern Nevada 4,808 Office 2575 Montessouri St, Ste 200, Las Vegas, NV Centerra Group LLC 4,367 Office 2575 Montessouri St, Ste 200, Las Vegas, NV We Are Hope 4,367 Retail, Ste B, Israel Sagastegui 4,000 Retail 4821 S Decatur Blvd, Ste G-I, Las Vegas, NV Sanuki Seimen Food LLC 3,546 Retail 1775 E Tropicana Ave, Ste 100, Las Vegas, NV Escape Room 3,456 Retail 4805 E Charleston Blvd, Las Vegas, NV Dry Cleaners Service 3,100 Office 1771 E Flamingo Rd, Ste A 121, Las Vegas, NV Advanced Isotopes of Nevada LLC 3,040 Retail 9325 S Cimarron Rd, Ste 100, Las Vegas, NV Cyclepath LLC 3,012 Retail 1775 E Tropicana Ave, Ste 11-13, Las Vegas, NV Iglesia Ministerio Cristiamo 3,000 Retail 4380 S Decatur Blvd, Las Vegas, NV Lacey's Place Nevada 4380 Decatur LLC 2,744 Retail 1775 E Tropicana Ave, Ste 1-3, Las Vegas, NV Lacey's Place 2,500 Retail S Eastern Ave, Ste 107 & 108, Henderson, NV Oasis Italian Restaurant 2,400 Retail 4060 Vanessa Dr, Las Vegas, NV Ding Tea Las Vegas LLC 2,400 Retail 450 S Buffalo Dr, Ste , Las Vegas, NV Connell Moss 2,369 Retail 600 W Sunset Rd, Ste 101, Henderson, NV Rebel Kitchen LLC 2,300 Retail 825 S Decatur Blvd, Las Vegas, NV Velvet Underground 2,235 Retail 3940 N Martin L King Blvd, Ste 100B, North Las Vegas, NV The Foundation Christian Center 2,160 Re/Offic 4170 S Decatur Blvd, Ste A 4-5, Las Vegas, NV Gerald Walker 1,800 Office 4170 S Decatur Blvd, Ste C 1-2, Las Vegas, NV Marysol Resanov 1,800 Office 4170 S Decatur Blvd, Ste D 1-2, Las Vegas, NV Elbe Institue 1,785 Office 1771 E Flamingo Rd, Ste B 112, Las Vegas, NV Cleo Winters 1,776 Retail 1775 E Tropicana Ave, Ste 100A, Las Vegas, NV Albo Group LLC 1,673 Office 4170 S Decatur Blvd, Ste B 1-2, Las Vegas, NV Erik Guiterrez 1,650 Office 6376 Spring Mountain Rd, Ste 6, Las Vegas, NV Joyhealth Acupuncture LLC 1,650 Retail 3242 E Desert Inn Rd, Ste 1 & 2, Las Vegas, NV Imperium Furniture LLC 1,600 Retail 3242 E Desert Inn Rd, Ste 13 & 14, Las Vegas, NV Hollywood Rock & Servicios Multiples 1,600 Retail 3242 E Desert Inn Rd, Ste 27 & 28, Las Vegas, NV Mr. Janitorial 1,600

7 Type Location Tenant Sq. Ft. Office 1771 E Flamingo Rd, Ste B 211, Las Vegas, NV Emineo Marketing Solutions Inc 1,570 Office 4170 S Decatur Blvd, Ste C 7, Las Vegas, NV Redemption World Outreach Church 1,505 Retail 450 S Buffalo Dr, Ste 111, Las Vegas, NV Game Changer LV LLC 1,438 Retail 3940 N Martin L King Blvd, Ste B 108, North Las Vegas, NV Hair and Nail Salon 1,400 Retail 450 S Buffalo Dr, Ste 109, Las Vegas, NV Paint Party Night LLC 1,316 Retail 3940 N Martin L King Blvd, Ste B 102, North Las Vegas, NV Kim's Passion for Paws LLC 1,290 Retail 3940 N Martin L King Blvd, Ste B 101, North Las Vegas, NV Fish Cage 1,280 Retail 9265 S Cimarron Rd, Ste 130, Las Vegas, NV Local Realty 1,268 Retail 9265 S Cimarron Rd, Ste 115, Las Vegas, NV Feher health Services LLC 1,268 Retail 5310 W Sahara Ave, Ste B, Las Vegas, NV Modernmist Limited 1,258 Retail 5300 W Sahara Ave, Ste 202, Las Vegas, NV Dreambody Wraps and Laser 1,258 Office 1771 E Flamingo Rd, Ste B 116, Las Vegas, NV Israel A Escobar 1,257 Office 2471 W Horizon Ridge Pkwy, #120, Henderson, NV Iproperties 1,250 Office 2471 W Horizon Ridge Pkwy, #110, Henderson, NV Tender Care Home Health Inc 1,250 Retail 450 S Buffalo Dr, Ste 104, Las Vegas, NV Lance's Aquarium 1,214 Retail 450 S Buffalo Dr, Ste 108, Las Vegas, NV Nail Salon 1,214 Retail 450 S Buffalo Dr, Ste 119, Las Vegas, NV Stardust Baby 1,214 Retail 4725 Spring Mountain Rd, Ste 4725F, Las Vegas, NV Ding Tea Las Vegas LLC 1,200 Retail 5310 W Sahara Ave, Ste A, Las Vegas, NV Survival of the Fittest LLC 1,200 Retail 3940 N Martin L King Blvd, Ste B 107, North Las Vegas, NV Headturner 21 1,200 Retail 625 N Lamb Blvd, Ste 102, Las Vegas, NV Sin City Shuttles 1,200 Industrial 520 W Sunset Rd, Unit 1, Henderson, NV DK Customs 1,200 Industrial 520 W Sunset Rd, Unit 10, Henderson, NV Veteran's Organization 1,200 Office 450 S Buffalo Dr, Ste 110, Las Vegas, NV Cemoro Inc 1,120 Retail 3940 N Martin L King Blvd, Ste B 103, North Las Vegas, NV Jireh Green 1,110 Retail 3375 S Decatur Blvd, Ste 8, Las Vegas, NV Esher Fashion USA LLC 1,043 Retail 3375 S Decatur Blvd, Ste 7, Las Vegas, NV Dragons LLC 1,043 Office 2575 Montessouri St, Ste 105, Las Vegas, NV Mr. Bill's 1,039 Retail 3675 S Decatur Blvd, Ste 11, Las Vegas, NV Zia Rehman 1,032 Retail 3675 S Decatur Blvd, Ste 12, Las Vegas, NV Hong 1,032 Office 1771 E Flamingo Rd, Ste 121B, Las Vegas, NV Lycatel LLC 1,025 Office 1771 E Flamingo Rd, Ste B120, Las Vegas, NV Robinson Law Group 1,025 Retail 1775 E Tropicana Ave, Ste 15, Las Vegas, NV DeShawn 1,000

8 Property Description Lake Mead Square The Beck Group of Virtus Commercial is pleased to present for sale the Lake Mead Square, two free standing retail buildings that situated on a 2.59 acres lot. It is located on East Lake Mead Boulevard, a high traffic arterial road, near the major intersection of North Nellis Boulevard to the east. It is close proximity to public transportation bus stops and schools (right in front of two elementary and one middle school). This property is highly visible from Lake Mead and offers approximately 28,702 rentable square feet. The property has easily accessible ingress or egress points off of Lake Mead and ample parking stall of 150. The current owner bought this property in middle of 2012, since then the owner re-painted the exterior of the buildings. All building lights and parking lot lights have been changed to LED. All HVAC on smaller building have been replaced, and the new tenant in the larger building will replace the HVAC either. One smaller building is hosting 3 tenants. One larger building formerly a grocery store, leased to one tenant called Dream Furniture. The larger building is currently undergoing tenant improvements, the tenant that is currently leasing, owns several mattress stores around the Las Vegas Valley and they are spending $250,000 plus to renovate the building. This furniture store (19,277 sq. ft.) leased for 5 years and has a letter of intent to expand the business with a children's indoor play center. They are just waiting for an approval of a special use permit. There is also a pay water refill station stand alone on the property close to Lake Mead. The property is constructed in 2000, zoned General Commercial (C-2), in excellent condition and seller is highly motivated to transfer the property. The property offers a 6.8% CAP RATE of stable income opportunity with low maintenance. page 8 of 32

9 Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $2,500,000 Investment - Cash $750,000 First Loan $1,750,000 INVESTMENT INFORMATION Purchase Price $2,500,000 Price per Tenant $500,000 Price per Sq. Ft. $87.10 INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $214,980 Total Vacancy and Credits $0 Operating Expenses ($45,012) Net Operating Income $169,968 Debt Service ($103,948) Cash Flow Before Taxes $66,020 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 8.80% Debt Coverage Ratio 1.64 Capitalization Rate 6.80% Gross Income / Square Feet $7.49 Gross Expenses / Square Feet ($1.57) Operating Expense Ratio 20.94% page 9 of 32

10 Real Estate Investment Details Analysis Analysis Date September 2017 Property Property Property Address Year Built 2000 Lake Mead Square Purchase Information Property Type Retail Purchase Price $2,500,000 Tenants 5 Total Rentable Sq. Ft. 28,702 Financial Information Down Payment $750,000 Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $1,750, years 30 years 4.302% $8,662 Income & Expenses Gross Operating Income $214,980 Monthly GOI $17,915 Total Annual Expenses ($45,012) Monthly Expenses ($3,751) Contact Information brett@virtusco.com NV BS The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projections and analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax or other professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting, tax or other professional area before making any decisions. page 10 of 32

11 Pro Forma Summary TENANT ANNUAL SCHEDULED INCOME Tenant Actual Market Cristina Beauty Salon $8,640 $9,000 Israel Sagastegui $21,600 $24,000 Dream Furniture $120,000 $120,000 Vacant $0 $36,000 Watermill Express $6,000 $8,400 INVESTMENT SUMMARY Price: $2,500,000 Year Built: 2000 Tenants: 5 RSF: 28,702 Price/RSF: $87.10 Lot Size: 2.59 acres Floors: 1 Parking Spaces: 150 APN: Cap Rate: 6.8% Market Cap Rate: 9.01% TOTALS $156,240 $197,400 ANNUALIZED INCOME Actual Market Gross Potential Rent $156,240 $197,400 Less: Vacancy $0 $0 Misc. Income $58,740 $78,840 Effective Gross Income $214,980 $276,240 Less: Expenses ($45,012) ($51,092) Net Operating Income $169,968 $225,148 Debt Service ($103,948) ($103,948) Net Cash Flow after Debt Service $66,020 $121,200 Principal Reduction $29,235 $29,235 Total Return $95,255 $150,435 FINANCING SUMMARY Loan Amount: $1,750,000 Down Payment: $750,000 Loan Type: Fixed Interest Rate: 4.302% Term: 30 years Monthly Payment: $8,662 DCR: 1.64 ANNUALIZED EXPENSES Actual Market Cleaning & Maintenance $7,580 $10,000 Management $3,785 $4,000 Miscellaneous $2,986 $3,000 Repairs $9,407 $10,000 Property Tax $7,092 $7,092 Utilities $14,162 $17,000 Total Expenses $45,012 $51,092 Expenses Per RSF $1.57 $1.78 page 11 of 32

12 Location Map page 12 of 32

13 Aerial Map page 13 of 32

14 Maps and Aerials page 14 of 32

15 Property Photos View from Lake Mead Blvd. Water Station School Right Across the Road Smaller Building page 15 of 32

16 Lake Mead Square page 16 of 32

17 Annual Property Operating Data Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Rental Income $156,240 $160,927 $165,755 $170,728 $175,849 $181,125 $186,559 $192,155 $197,920 $203,858 CAM $58,740 $60,502 $62,317 $64,187 $66,112 $68,096 $70,139 $72,243 $74,410 $76,642 GROSS SCHEDULED INCOME $214,980 $221,429 $228,072 $234,914 $241,962 $249,221 $256,697 $264,398 $272,330 $280,500 GROSS OPERATING INCOME $214,980 $221,429 $228,072 $234,914 $241,962 $249,221 $256,697 $264,398 $272,330 $280,500 Expenses Cleaning & Maintenance ($7,580) ($7,807) ($8,042) ($8,283) ($8,531) ($8,787) ($9,051) ($9,322) ($9,602) ($9,890) Management ($3,785) ($3,899) ($4,016) ($4,136) ($4,260) ($4,388) ($4,519) ($4,655) ($4,795) ($4,939) Miscellaneous ($2,986) ($3,076) ($3,168) ($3,263) ($3,361) ($3,462) ($3,565) ($3,672) ($3,783) ($3,896) Repairs ($9,407) ($9,689) ($9,980) ($10,279) ($10,588) ($10,905) ($11,232) ($11,569) ($11,917) ($12,274) Property Tax ($7,092) ($7,305) ($7,524) ($7,750) ($7,982) ($8,222) ($8,468) ($8,722) ($8,984) ($9,253) Utilities ($14,162) ($14,587) ($15,024) ($15,475) ($15,939) ($16,418) ($16,910) ($17,417) ($17,940) ($18,478) TOTAL OPERATING EXPENSES ($45,012) ($46,362) ($47,753) ($49,186) ($50,661) ($52,181) ($53,747) ($55,359) ($57,020) ($58,730) NET OPERATING INCOME $169,968 $175,067 $180,319 $185,729 $191,300 $197,039 $202,951 $209,039 $215,310 $221,770 page 17 of 32

18 Tenant Mix Report TENANT MIXES Suite Tenants Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly A Cristina Beauty 1200 $720 $720 $750 $750 B Israel Sagastegui 4000 $1,800 $1,800 $2,000 $2,000 Build. A Dream Furniture $10,000 $10,000 $10,000 $10,000 C Vacant 4000 $0 $0 $3,000 $3,000 Water Watermill Express 225 $500 $500 $700 $ ,702 $13,020 $16,450 TENANT MIX TENANT MIX SQUARE FEET Cristina Beauty Salon Israel Sagastegui Dream Furniture Vacant Watermill Express Cristina Beauty Salon Israel Sagastegui Dream Furniture Vacant Watermill Express TENANT MIX INCOME TENANT MIX MARKET INCOME Cristina Beauty Salon Israel Sagastegui Dream Furniture Vacant Watermill Express Cristina Beauty Salon Israel Sagastegui Dream Furniture Vacant Watermill Express page 18 of 32

19 Operating Income Analysis $290,000 $261,000 $232,000 $203,000 $174,000 $145,000 $116,000 $87,000 $58,000 $29,000 Year Legend GROSS OPERATING INCOME NET OPERATING INCOME NET CASH FLOW (b/t) page 19 of 32

20 Financial Indicators Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Gross Rent Multiplier Capitalization Rate 6.80% 7.00% 7.21% 7.43% 7.65% 7.88% 8.12% 8.36% 8.61% 8.87% Cash On Cash Return b/t 8.80% 9.48% 10.18% 10.90% 11.65% 12.41% 13.20% 14.01% 14.85% 15.71% Cash On Cash Return a/t 8.80% 9.48% 10.18% 10.90% 11.65% 12.41% 13.20% 14.01% 14.85% 15.71% Debt Coverage Ratio Gross Income per Sq. Ft. $7.49 $7.71 $7.95 $8.18 $8.43 $8.68 $8.94 $9.21 $9.49 $9.77 Expenses per Sq. Ft. ($1.57) ($1.62) ($1.66) ($1.71) ($1.77) ($1.82) ($1.87) ($1.93) ($1.99) ($2.05) Net Income Multiplier Operating Expense Ratio 20.94% 20.94% 20.94% 20.94% 20.94% 20.94% 20.94% 20.94% 20.94% 20.94% Loan To Value Ratio 68.83% 67.61% 66.34% 65.01% 63.62% 62.17% 60.65% 59.07% 57.43% 55.71% Footnotes: b/t = before taxes; a/t = after taxes page 20 of 32

21 Cash Flow Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 GROSS SCHEDULED INCOME $214,980 $221,429 $228,072 $234,914 $241,962 $249,221 $256,697 $264,398 $272,330 $280,500 Total Operating Expenses ($45,012) ($46,362) ($47,753) ($49,186) ($50,661) ($52,181) ($53,747) ($55,359) ($57,020) ($58,730) NET OPERATING INCOME $169,968 $175,067 $180,319 $185,729 $191,300 $197,039 $202,951 $209,039 $215,310 $221,770 Loan Payment ($103,948) ($103,948) ($103,948) ($103,948) ($103,948) ($103,948) ($103,948) ($103,948) ($103,948) ($103,948) NET CASH FLOW (b/t) $66,020 $71,119 $76,371 $81,781 $87,353 $93,092 $99,003 $105,092 $111,363 $117,822 Cash On Cash Return b/t 8.80% 9.48% 10.18% 10.90% 11.65% 12.41% 13.20% 14.01% 14.85% 15.71% Footnotes: b/t = before taxes;a/t = after taxes page 21 of 32

22 Investment Return Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cash Flow - To Date $66,020 $137,140 $213,511 $295,292 $382,645 $475,737 $574,740 $679,831 $791,194 $909,016 Net Resale Proceeds $763,878 $778,371 $794,202 $811,432 $830,120 $850,332 $872,133 $895,594 $920,788 $948,460 Invested Capital ($750,000) ($750,000) ($750,000) ($750,000) ($750,000) ($750,000) ($750,000) ($750,000) ($750,000) ($750,000) Net Return on Investment $79,899 $165,510 $257,713 $356,724 $462,765 $576,068 $696,873 $825,426 $961,982 $1,107,476 Internal Rate of Return 10.65% 10.92% 11.20% 11.48% 11.74% 11.98% 12.22% 12.43% 12.64% 12.83% Modified IRR 10.65% 10.48% 10.35% 10.22% 10.09% 9.96% 9.84% 9.72% 9.60% 9.49% NPV (cash flow + reversion) $95,255 $196,892 $305,120 $420,155 $542,221 $671,549 $808,379 $952,957 $1,105,539 $1,266,388 PV (NOI + reversion) $2,669,968 $2,845,035 $3,025,354 $3,211,083 $3,402,383 $3,599,423 $3,802,373 $4,011,413 $4,226,723 $4,448,493 Footnotes: a/t = after taxes; Modified IRR = Modified Internal Rate of Return; PV = Present Value; NPV = Net Present Value; NOI = Net Operating Income Reversion = Amount received from the resale; Net Return on Investment = Cash Flow (a/t To Date) + Net Proceeds from Resale - Invested Capital. page 22 of 32

23 Loan Analysis Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 LOAN 1 Debt Service Analysis Principal Payments $29,235 $30,517 $31,856 $33,254 $34,713 $36,237 $37,827 $39,486 $41,219 $43,028 Interest Payments $74,713 $73,430 $72,091 $70,693 $69,234 $67,711 $66,121 $64,461 $62,729 $60,920 Total Debt Service $103,948 $103,948 $103,948 $103,948 $103,948 $103,948 $103,948 $103,948 $103,948 $103,948 Principal Balance Analysis Beginning Principal Balance $1,750,000 $1,720,765 $1,690,248 $1,658,392 $1,625,137 $1,590,424 $1,554,187 $1,516,361 $1,476,874 $1,435,655 Principal Reductions $29,235 $30,517 $31,856 $33,254 $34,713 $36,237 $37,827 $39,486 $41,219 $43,028 Ending Principal Balance $1,720,765 $1,690,248 $1,658,392 $1,625,137 $1,590,424 $1,554,187 $1,516,361 $1,476,874 $1,435,655 $1,392,628 page 23 of 32

24 Equity vs. Debt $1,800,000 $1,620,000 $1,440,000 $1,260,000 $1,080,000 $900,000 $720,000 $540,000 $360,000 $180,000 Year Legend Equity Loan Principal Balance page 24 of 32

25 Property Equity Analysis $1,200,000 $1,080,000 $960,000 $840,000 $720,000 $600,000 $480,000 $360,000 $240,000 $120,000 Year Legend Initial Equity Equity (loan reduction) Equity (appreciation) page 25 of 32

26 Cumulative Wealth Analysis $1,300,000 $1,170,000 $1,040,000 $910,000 $780,000 $650,000 $520,000 $390,000 $260,000 $130,000 Year Legend Equity (loan reduction) Equity (appreciation) CASH FLOW (a/t) page 26 of 32

27 Internal Rate of Return Analysis BEFORE TAX IRR Time Future Cash Flows Initial Investment ($750,000) End of Year 1 $66,020 End of Year 2 $71,119 End of Year 3 $76,371 End of Year 4 $81,781 End of Year 5 $87,353 End of Year 6 $93,092 End of Year 7 $99,003 End of Year 8 $105,092 End of Year 9 $111,363 End of Year 10* $1,225,194 IRR = 13.81% * ($117,822 + $1,107,372) AFTER TAX IRR Time Future Cash Flows Initial Investment ($750,000) End of Year 1 $66,020 End of Year 2 $71,119 End of Year 3 $76,371 End of Year 4 $81,781 End of Year 5 $87,353 End of Year 6 $93,092 End of Year 7 $99,003 End of Year 8 $105,092 End of Year 9 $111,363 End of Year 10* $1,066,282 IRR = 12.83% * ($117,822 + $948,460) page 27 of 32

28 Demographics POPULATION 1 MILE 3 MILE 5 MILE Male 10,343 (50.45 %) 108,145 (49.34 %) 208,352 (49.96 %) Female 10,160 (49.55 %) 111,060 (50.66 %) 208,711 (50.04 %) Total Population 20, , ,063 AGE BREAKDOWN 1 MILE 3 MILE 5 MILE Ages 0-4 2,011 (9.81 %) 20,236 (9.23 %) 35,386 (8.48 %) Ages 5-9 2,369 (11.55 %) 23,230 (10.60 %) 40,722 (9.76 %) Ages ,127 (10.37 %) 20,209 (9.22 %) 35,443 (9.76 %) Ages ,899 (9.26 %) 18,456 (8.42 %) 32,319 (7.75 %) Ages ,645 (8.02 %) 17,241 (7.87 %) 30,657 (7.35 %) Ages ,498 (7.31 %) 16,015 (7.31 %) 28,937 (6.94 %) Ages ,389 (6.77 %) 14,967 (6.83 %) 27,676 (6.64 %) Ages ,337 (6.52 %) 14,606 (6.66 %) 27,492 (6.59 %) Ages ,290 (6.29 %) 14,245 (6.50 %) 27,325 (6.55 %) Ages ,262 (6.16 %) 14,069 (6.42 %) 27,395 (6.57 %) Ages ,034 (5.04 %) 12,000 (5.47 %) 24,008 (5.76 %) Ages (4.16 %) 10,062 (4.59 %) 20,630 (4.95 %) Ages (3.08 %) 8,028 (3.66 %) 17,044 (4.09 %) Ages (2.26 %) 5,929 (2.70 %) 13,601 (3.26 %) Ages (1.53 %) 4,104 (1.87 %) 10,400 (2.49 %) Ages (0.94 %) 2,573 (1.17 %) 7,368 (1.77 %) Ages (0.42 %) 1,414 (0.65 %) 4,658 (1.12 %) Ages (0.50 %) 1,821 (0.83 %) 6,002 (1.44 %) page 28 of 32

29 Demographics HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE Median Income $35,782 $42,191 $41,122 Less than $10, ,217 10,206 $10,000 -$14, ,940 7,394 $15,000 - $19, ,489 8,233 $20,000 -$24, ,183 9,345 $25,000 - $29, ,632 9,205 $30,000 - $34, ,311 8,740 $35,000 - $39, ,831 7,544 $40,000 - $44, ,741 6,967 $45,000 - $49, ,396 6,247 $50,000 - $59, ,472 13,242 $60,000 - $74, ,131 13,804 $75,000 - $99, ,879 13,360 $100,000 - $124, ,415 6,227 $125,000 - $149, ,549 3,228 $150,000 - $199, ,292 2,746 Greater than $200, HOUSING 1 MILE 3 MILE 5 MILE Housing Units 6,526 71, ,579 Occupied Units 5,503 61, ,177 Owner Occupied Units 2,194 31,557 62,790 Renter Occupied Units 3,309 30,435 66,387 Vacant Units 1,023 9,415 21,402 RACE DEMOGRAPHICS 1 MILE 3 MILE 5 MILE Population Non Hispanic White 8,133 98, ,529 Population Black 2,587 22,398 54,399 Population Am In/Ak Nat ,608 page 29 of 32

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