HEA100 PRICE $5,259,259 CAP RATE 6.75% SIZE 15,120 SF LOCATION Green Bay, WI Walgreens is an investment grade rated tenant (S&P: BBB) Walgreens recently exercised its first renewal, demonstrating their commitment to the location Walgreens has a long and successful operating history since 2000 and reports above average store sales Located at the hard corner of a signalized intersection The property is well positioned in a dominant retail corridor directly northwest of East Town Mall which is anchored by Kohl's, Hobby Lobby. ALDI, Ross, Marshalls, PetSmart and Office Max Other retailers in the corridor include Pick 'N Save (Kroger), Taco Bell, Starbucks, Sherwin Williams and Tires Plus There are over 134.840 people living within 5 miles of property 1. % PROPERTY ANALYSIS (Questions 1-5 & Bonus) COMPELTE FOR SEP 30, 2020 iCollege a. What is the Sale Price? $5.254.259 b. How many years remaining on lease? Years c. What is the size of the building Square Feet d. What is the Rcap 2. KNOWN: Value = NOI/ Rcap or Rcap = NOI / Value a. Calculate the NOI, first impute NOI as a function of Rcap and Value NOI Compute the NOI, based on the value and Rcap (show your work, fill in the balnks) NOI = $ % = $ 3. For this NNN property, NOI are the effective annual rents, divide this by the SF What is the $ / SF $ SF = $/SF 4. The lender's interest rate on the loan amount of 4.375%; The lender's loan amount at 76% LTC Calculate loan amount and cash amount Loan amount = $ Cash Amount = $ 5. Calculate debt service coverage ratio, where DSCR = NOI / DS Debt Service = Loan Rate * Loan Amount = %$ DSCR = $ = $ 6. For the same property, calculate the return on equity, where CF = NOI - DS And RoE - CF/Cash Amount Cash Flow = $ - $ RoE = $ /$ % 7. A. Did leverage increase the yield on equity? (Yes or No) B. Would the leverage increase the return on equity IF the CAP rate was lowered to 5.75%? HEA100 PRICE $5,259,259 CAP RATE 6.75% SIZE 15,120 SF LOCATION Green Bay, WI Walgreens is an investment grade rated tenant (S&P: BBB) Walgreens recently exercised its first renewal, demonstrating their commitment to the location Walgreens has a long and successful operating history since 2000 and reports above average store sales Located at the hard corner of a signalized intersection The property is well positioned in a dominant retail corridor directly northwest of East Town Mall which is anchored by Kohl's, Hobby Lobby. ALDI, Ross, Marshalls, PetSmart and Office Max Other retailers in the corridor include Pick 'N Save (Kroger), Taco Bell, Starbucks, Sherwin Williams and Tires Plus There are over 134.840 people living within 5 miles of property 1. % PROPERTY ANALYSIS (Questions 1-5 & Bonus) COMPELTE FOR SEP 30, 2020 iCollege a. What is the Sale Price? $5.254.259 b. How many years remaining on lease? Years c. What is the size of the building Square Feet d. What is the Rcap 2. KNOWN: Value = NOI/ Rcap or Rcap = NOI / Value a. Calculate the NOI, first impute NOI as a function of Rcap and Value NOI Compute the NOI, based on the value and Rcap (show your work, fill in the balnks) NOI = $ % = $ 3. For this NNN property, NOI are the effective annual rents, divide this by the SF What is the $ / SF $ SF = $/SF 4. The lender's interest rate on the loan amount of 4.375%; The lender's loan amount at 76% LTC Calculate loan amount and cash amount Loan amount = $ Cash Amount = $ 5. Calculate debt service coverage ratio, where DSCR = NOI / DS Debt Service = Loan Rate * Loan Amount = %$ DSCR = $ = $ 6. For the same property, calculate the return on equity, where CF = NOI - DS And RoE - CF/Cash Amount Cash Flow = $ - $ RoE = $ /$ % 7. A. Did leverage increase the yield on equity? (Yes or No) B. Would the leverage increase the return on equity IF the CAP rate was lowered to 5.75%
