For more information contact: Certified Commercial Broker rroberts@ccim.net Phone: 509-248-9400 Fax: 509-965-9282 5625 Summitview Ave Yakima, WA 98908 www.heritagemoultray.com
Real Estate Investment Details Analysis Analysis Date September 2017 Property Property Property Address Year Built 2002 Pacific Ave Storage Units Purchase Information Property Type Commercial Purchase Price $265,000 Tenants 1 Total Rentable Sq. Ft. 5,760 Resale Valuation 6.0% (capitalization of noi) Resale Expenses 9.0% Financial Information Down Payment $88,500 Closing Costs $2,500 LT Capital Gain 20.00% Discount Rate 6.00% Loans Type Debt Term Amortization Rate Payment LO Costs Fixed $198,750 25 years 25 years 4.25% $1,077 $1,988 Income & Expenses Gross Operating Income $22,515 Monthly GOI $1,876 Total Annual Expenses ($6,093) Monthly Expenses ($508) Contact Information rroberts@ccim.net 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 2 of 9
Property Description FOR SALE: 20 large metal storage units with metal roofs. All but 1 unit is 12x24 with a 10 roll up door. Property is fully secured with a 10 foot fence plus razor wire on top. Units were built in 2002 and have been impeccably maintained. These units are very large and ideal for storing cars or small business needing to store supplies like and electrican, plumber, tile installer, etc. This property has below market rents for the size units and there is a great value-add play here! Year 2 income is reflective of getting the units up to market rent. Contact listing broker for details. page 3 of 9
Property Photos page 4 of 9
Aerial Map page 5 of 9
Location Map page 6 of 9
Executive Summary ACQUISITION COSTS Purchase Price, Points and Closing Costs $269,488 Investment - Cash $92,988 First Loan $198,750 INVESTMENT INFORMATION Purchase Price $265,000 Price per Tenant $265,000 Price per Sq. Ft. $46.01 INCOME, EXPENSES & CASH FLOW Gross Scheduled Income $23,700 Total Vacancy and Credits ($1,185) Operating Expenses ($6,093) Net Operating Income $16,422 Debt Service ($12,920) Cash Flow Before Taxes $3,502 FINANCIAL INDICATORS Cash on Cash Return Before Taxes 3.77% Optimal Internal Rate of Return (yr 3) 39.02% Debt Coverage Ratio 1.27 Capitalization Rate 6.20% Gross Income / Square Feet $4.11 Gross Expenses / Square Feet ($1.06) Operating Expense Ratio 27.06% page 7 of 9
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 $23,700 $25,912 $37,095 $37,837 $38,466 $38,466 $38,466 $38,466 $38,466 $38,466 General Vacancy ($1,185) ($1,296) ($1,855) ($1,892) ($1,923) ($1,923) ($1,923) ($1,923) ($1,923) ($1,923) Total Operating Expenses ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) NET OPERATING INCOME $16,422 $18,523 $29,147 $29,852 $30,449 $30,449 $30,449 $30,449 $30,449 $30,449 Loan Payment ($12,920) ($12,920) ($12,920) ($12,920) ($12,920) ($12,920) ($12,920) ($12,920) ($12,920) ($12,920) NET CASH FLOW (b/t) $3,502 $5,603 $16,227 $16,932 $17,529 $17,529 $17,529 $17,529 $17,529 $17,529 Cash On Cash Return b/t 3.77% 6.03% 17.45% 18.21% 18.85% 18.85% 18.85% 18.85% 18.85% 18.85% Footnotes: b/t = before taxes;a/t = after taxes page 8 of 9
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 $23,700 $25,912 $37,095 $37,837 $38,466 $38,466 $38,466 $38,466 $38,466 $38,466 GROSS SCHEDULED INCOME $23,700 $25,912 $37,095 $37,837 $38,466 $38,466 $38,466 $38,466 $38,466 $38,466 General Vacancy ($1,185) ($1,296) ($1,855) ($1,892) ($1,923) ($1,923) ($1,923) ($1,923) ($1,923) ($1,923) GROSS OPERATING INCOME $22,515 $24,616 $35,240 $35,945 $36,542 $36,542 $36,542 $36,542 $36,542 $36,542 Expenses Building Insurance ($1,037) ($1,037) ($1,037) ($1,037) ($1,037) ($1,037) ($1,037) ($1,037) ($1,037) ($1,037) Maintenance ($592) ($592) ($592) ($592) ($592) ($592) ($592) ($592) ($592) ($592) Management Fees ($1,185) ($1,185) ($1,185) ($1,185) ($1,185) ($1,185) ($1,185) ($1,185) ($1,185) ($1,185) Taxes - Real Estate ($2,196) ($2,196) ($2,196) ($2,196) ($2,196) ($2,196) ($2,196) ($2,196) ($2,196) ($2,196) Utilities ($1,083) ($1,083) ($1,083) ($1,083) ($1,083) ($1,083) ($1,083) ($1,083) ($1,083) ($1,083) TOTAL OPERATING EXPENSES ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) ($6,093) NET OPERATING INCOME $16,422 $18,523 $29,147 $29,852 $30,449 $30,449 $30,449 $30,449 $30,449 $30,449 page 9 of 9