This investment opportunity is closed
Investment – Originally listed at $6.98m, we have negotiated to close the deal at $6.075m. We were able to negotiate excellent financing terms with a 70% LTV, 10 year fixed and 30 year amortization with an interest rate around 4.4 %.
Location – San Antonio, Tx. The property shares the driveway and parking lot with a high performing Walmart Super center.
Returns – The cash on cash yield averages to above 10% assuming we hold the property for 7 years (subject to the rent increases as per the current leases). Returns will be distributed monthly / quarterly. Spreadsheet attached for your reference. IRR would be between approximately 15.7% annualized over a 11 year period.
Diversified tenant base – All the tenants are e-commerce resistant and no single tenant occupies a high percentage of the property and hence it has a great debt coverage ratio.
Asset Appreciation – We expect appreciation of the asset itself as rents increase and we should be looking at a total of 15.7% IRR annualized if we exit in about 7 to 11 years. If we stay longer then this IRR will go up.
Early Exit – Always possible.
OM link below