Commercial Real Estate Investment Opportunity Commercial Real

Commercial Real Estate Investment
Opportunity
DOLLAR GENERAL
2314 Broadway Avenue
Alexandria, Louisiana 71302
OFFERING SUMMARY
$1,143,643
Price
$80,055
Net Operating Income
INVESTMENT HIGHLIGHTS
After Tax Cash Flow Is 9.42%
in the 1st Year
Rentable SF
9,014
Year Built
2009
Cap Rate
7.00%
Presented By:
Gregg Thompson, CCIM
PH 318-787-6816
15 Year Primary Lease with 3% Rent
Bump in Year 11
•Corporate backed Lease by strong
corporate credit tenant
•New construction November 2009 Lease
Commencement
FX 318-787-6821
[email protected]
LEASE SUMMARY
Primary Lease Start Date
11/15/2009
Primary Lease End Date
11/14/2024
•Tenant fully reimburses for Real Estate
Taxes, Insurance and Common Area
Maintenance.
Lease Type
NN
Lease Term
15 years
•Located in federally designated Renewal
Community (depreciate improvements
over ten (10) year period & pay no capital
gains tax if held minimum five (5) years).
Increases
Options
10% every renewal period
Three 5-five yr. options
The information contained in this Brochure has been gathered from sources that are assumed to be reliable. Ratcliff Facilities, LLC & Noles Frye Realty, Inc. make no representations or
warranties either expressed or implied as to the accuracy of this information. The prospective buyer of this property is responsible for verification and consultation from the appropriate
professionals to determine the validity of these figures. We assume no liability for errors or omissions.
LEASE INFORMATION
Primary Term
Nov. 2009
to
Nov 2024
1st option (5 yrs)
Nov. 2024
to
Nov. 2029
2nd option (5 yrs)
Nov. 2029
to
Nov. 2034
3rd option (5 yrs)
Nov. 2034
to
Nov. 2039
Rent Increases
Annual Rent
Monthly Rent
Primary Term
(Yrs 1-10)
$80,055.00
$6,671.25
Primary Term
(Yrs 11-15)
$82,456.41
$6,871.41
1st option (5 yrs)
$90,702.00
$7,558.50
2nd option (5 yrs)
$99,772.92
$8,314.41
3rd option (5 yrs)
$109,749.96
$9,145.83
Presented By:
Gregg Thompson, CCIM
PH 318-787-6816
FX 318-787-6821
[email protected]
The information contained in this Brochure has been gathered from sources that are assumed to be reliable. Ratcliff Facilities, LLC & Noles Frye Realty, Inc. make no representations or
warranties either expressed or implied as to the accuracy of this information. The prospective buyer of this property is responsible for verification and consultation from the appropriate
professionals to determine the validity of these figures. We assume no liability for errors or omissions.
Financial Assumptions
Investment Assumptions
Acquisition Price
$ 1,143,643
Annual NOI
$
Cap Rate
7.00%
Total Rentable Square Feet
Price Per Rentable Square Feet
80,055
9,014
$
126.87
Tax Assumptions
Land Basis
Land Value
20%
$
200,138.00
Improvement Basis
Improvement Value
80.00%
$
800,550.00
Depreciable Period
10 years
Investor Tax Rate
42%
Financing Assumptions
Equity Amount
$
285,911
Loan Amount
$
857,732
LTV
Interest Rate
5.75%
Loan Amortization
Annual Debt Service
Presented By:
75.00%
$
20
Gregg Thompson, CCIM
PH 318-787-6816
70,803
FX 318-787-6821
[email protected]
The information contained in this Brochure has been gathered from sources that are assumed to be reliable. Ratcliff Facilities, LLC & Noles Frye Realty, Inc. make no representations or
warranties either expressed or implied as to the accuracy of this information. The prospective buyer of this property is responsible for verification and consultation from the appropriate
professionals to determine the validity of these figures. We assume no liability for errors or omissions.
Financial Analysis
Income
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Rental Income
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
CAM Payment
$3,600
$3,636
$3,672
$3,709
$3,746
$3,784
$3,821
$3,860
$3,898
$3,937
Estimated Expenses
($3,600)
($3,636)
($3,672)
($3,709)
($3,746)
($3,784)
($3,821)
($3,860)
($3,898)
($3,937)
Net Operating Income
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
Less Annual Interest
$46,570
$45,204
$43,760
$42,234
$40,623
$38,920
$37,122
$35,222
$33,215
$31,095
Less Annual Depreciation
$75,595
$75,595
$75,595
$75,595
$75,595
$75,595
$75,595
$75,595
$75,595
$75,595
Taxable Income
($42,111)
($40,745)
($39,301)
($37,775)
($36,164)
($34,461)
($32,663)
($30,763)
($28,756)
($26,636)
Tax Savings @42%
($17,687)
($17,113)
($16,506)
($15,866)
($15,189)
($14,474)
($13,718)
($12,920)
($12,078)
($11,187)
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
$80,055
Cash Flow
Net Operating Income
Less Annual Debt Service
Cash Flow Before Tax
($70,803)
$9,252
($70,803)
($70,803)
($70,803)
($70,803)
($70,803)
($70,803)
($70,803)
($70,803)
($70,803)
$9,252
$9,252
$9,252
$9,252
$9,252
$9,252
$9,252
$9,252
$9,252
Tax Savings
$17,687
$17,113
$16,506
$15,866
$15,189
$14,474
$13,718
$12,920
$12,078
$11,187
Cash Flow After Tax
$26,939
$26,365
$25,759
$25,118
$24,441
$23,726
$22,971
$22,173
$21,330
$20,439
9.42%
9.22%
9.01%
8.79%
8.55%
8.30%
8.03%
7.76%
7.46%
7.15%
Annual After Tax Cash on
Cash Yield
The information contained in this Brochure has been gathered from sources that are assumed to be reliable. Ratcliff Facilities, LLC & Noles Frye Realty, Inc. make no representations or
warranties either expressed or implied as to the accuracy of this information. The prospective buyer of this property is responsible for verification and consultation from the appropriate
professionals to determine the validity of these figures. We assume no liability for errors or omissions.