Investment Opportunity #$3$: Industrial

$$ Multiple Occupancy $300,000$ SF Multistory Industrial Building with consistent $5\%$ vacancy. Class $$B$$ Buildings with $24$ Clear Ceiling Heights

o In addition, $150,000$ SF of tenants leave at end of year $3,$ and are replaced immediately with tenants paying $$15/$SF NNN

$$ Lease Term $=5-$year leases with $5-$year options

$$ Initial Rent $$12/$SF NNN$,$ Replacement Tenant Rent $$15/$SF NNN

$$ Additional income consists of $40$ truck parking spaces rented for $$400/$month each. Spaces are fully rented all the time with no vacancy.

$$ Expenses are as follows $($all as a $\%$ of EGI$)$

o Property Taxes$15\%$

o Insurance$3\%$

o Maintenance$20\%$

o Management Fee$8\%$

o Reserves for Replacement$5\%$

o Other expenses$5\%$

$$ Price $=$ $$65,000,000$

$$ Capital Stack:

o $80\%$ LTV @$6\mathrm{.}5\%$ Interest Rate, $25$ Year Term, Fully Amortized

o Constrained by $1\mathrm{.}2$ DSCR$,$ requiring

o $20\%$ Borrowed Equity@ $12\%$ Preferred Return $($Interest$)$

o $10\%$ Interest Rate on Shortfalls

o Remainder Cash Equity

$$ Terminal Cap Rate $=5\mathrm{.}5\%$Proforma Summary Sheet $-$ Industrial