Investment Opportunity #$3$: Industrial

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

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$)$

Property Taxes $15\%$

Insurance $3\%$

Maintenance $20\%$

Management Fee $8\%$

Reserves for Replacement $5\%$

Other expenses $5\%$

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

Capital Stack:

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

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

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

$10\%$ Interest Rate on Shortfalls

Remainder Cash Equity

Terminal Cap Rate $=5\mathrm{.}5\%$

Please fill in the yellow parts