Property details
NNN Developer Seeking Equity Investors, Southeast Region
Property Description
NNN Developer Seeking Equity Investors
Update: An equity investor has committed to 150 units. As of 5/10/21, the remaining number of units is 350 sites).
Developer of 500 single-tenant medical properties is seeking additional investors who will agree to provide construction equity on a site by site basis for a large number of deliverable properties at a favorable cap rate.
All of the leases are:
20-Year brand new leases, commencing upon rent commencement
Absolute Triple Net (NNN) Leases
There are 2.00% Annual Increases in the rents.
The equity investor shall put up the costs of construction, thus allowing the developer to avoid having to obtain construction financing for each project which would slow down overall development.
As an example, with 150 sites recently committed to by an equity investor:
Project Cost: $3,112,500 (Equity from investor released in draws)
Build CAP: 10.00%
YR 1 NOI: $300,000
Sell CAP: 8.00%
Gross sales Price: $3,637,500
Gross Profit: $525,000 ($3,637,500 - $3,112,500)
Less 8.00% Pref on Money based on 6 months - $123,600 Paid to equity before distributions
Balance available for distributions between developer and equity: $400,500
Equity Investor receives 60%
($240,300)
The developer receives 40% ($160,200)
Total ROI to the equity investor is $364,800 ($240,300 + $160,200)
6 Month ROI: 11.72% (Annual ROI of $23.44%).
The above is an example the developer can discuss with potential equity investment partners.
Investors are buying at cap rates ranging from 7.50% to 8.00% cap rate, then turning around and putting these on the market immediately at a 6.00% cap rate! This flip, along with the initial return at first closing, adds up to a substantial return on each deal. The construction purchased cap rate will depend on the number of sites equity investors commit to.
Images
Highlights
- Status:
- Available
- Price:
- $20,000,000
- Rent Increases:
- Annual 2.00% Increases
Property Information
- Property Type:
- Net Lease
- Industry Type:
- Medical - Healthcare
- Units/Spaces:
- 1
- Purchase Tenure:
- Fee Simple
Lease information
- Tenant:
- NNN Developer Seeking Equity Investors
- Lease Type:
- NNN
- Lease Expiration:
- 05/13/2021
- Lease Remaining:
- 20.0 years
- Landlord Responsibilities:
- None - Absolute Triple Net Lease
- Options:
- Inquire
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.