Contact:    Andrew Shook e: andrew@brightlightcre.com  p: 919.659.5CRE (5273)

Subject Property

2 Industrial Properties | Cross-collateralized

Decker Lake Business Park

2064 W Alexander ST
West Valley City, UT 

2100 W Alexander ST
West Valley City, UT


Property Type:  Industrial

Transaction:  Stabilized

Occupancy:  100%

Lease Type:  NNN

Property Class:  Class B

Metro Area:  Salt Lake City, UT

MSA Rank:  Salt Lake City - #48

Population:  ~1.2 million | +7.60% growth

 

 

Property Details

2064 W Alexander ST

Total SF 66,000
Office SF 0 0%
Mezz SF 0 0%
No. of Tenants 3
Occupancy 100%
Dock Doors 6
Grade Level Doors 5
Clear Height 20'



2100 W Alexander ST

Total SF 32,000
Office SF 6,800 7%
Mezz SF 7,400 Not in Total SF
No. of Tenants 2
Occupancy 100%
Dock Doors 0
Grade Level Doors 4
Clear Height 18'

Business plan

Acquire for Long Term hold

 

Sponsor

Swire Property Group

  • Sophisticated San Francisco, CA based family office operator
  • Owned and operated multifamily and industrial properties for more than 30 years
  • Owns and operates 20+ properties
  • 1,000+ units under management
  • Total portfolio value $300+ million

Sponsor will use loan proceeds to acquire the subject property.

 

Supporting Documentation AVAILABLE:

  • Rent Roll
  • Offering Memorandum

key dates:

  • Contract Hard Date:  March 1, 2017
  • Closing Date:  March 20, 2017

 

Deal Summary-Durham MF Portfolio-Summary_html_m65d18ac8.jpg

Loan Structure



Basis PSF
Requested Loan Amount $4,000,000 $41
Property Value $6,176,000 $63
LTV 65%
Cap Rate 7.50%



In-Place NOI $457,900
Debt Yield 11.45%



Non-Recourse Preferred
Full/Partial Recourse Considered



IO Period 3 yrs
Term 5-, 7-, 10-Yr Options
Rate Structure Fixed Rate
Amortization 25 or 30 Year
Release Pricing N/A

Operating Summary





NRSF




98,000


Amount
$ PSF
Gross Potential Rent
$482,000
$0.41
Vacancy Expense
$24,100 5%
Loss to Lease
$0 0%
Effective Gross Income - Rent
$457,900
$0.39
Other Income




Parking $0


Storage $0


Signage $0


Misc $0

Total Other Income
$0 0%





Effective Gross Income - Total
$457,900
$0.39





Expenses



Mgt Fee
$0 0%
G&A
$0 0%
Labor
$0 0%
Repairs & Maint.
$0 0%
Taxes
$0 0%
Utilities
$0 0%
Total Expenses
$0 0% $0.00





Net Operating Income
$457,900 100% $4.67





TI/LC Reserves
$6,182 1.35% $0.06
Capital Reserves
$9,800 2.14% $0.10
Net Cash Flow
$441,918 3.49% $4.51






Sources and Uses

Sources


Loan Proceeds

$4,000,000
Equity - Cash

$2,176,000
Equity - Collateral Value

$0
Financed Closing Costs

$350,800




Total Sources

6,526,800




Uses


Purchase Price

$6,176,000
Loan Pay-off

$0
Cash Out

$0
Equity - Cash

$0
Equity - Collateral Value

$0




3rd Party Reports



Appraisal
$4,000

PCR
$1,500

Environmental
$1,500
3rd Party Report Total

$7,000




Lender Fees



Origination Fee 0.00% $0

U/W Fee 0.19% $7,500

Agency Fee 0.00% $0

Lender Legal 0.19% $7,500

Other 0.00% $0
Lender Fee Total
0.38% $15,000




Borrower Fees



RE Commission 4.00% $247,040

Mtg Banking 0.50% $20,000

Acquisition Fee 1.00% $61,760

Development Fee 0.00% $0

Other 0.00% $0


5.50% $328,800




Miscellaneous

$0




Total Uses

6,526,800





Rent Roll

BLDG SUITE TENANT SF % SF RATE MONTHLY ANNUAL % RENT
2100 A Elite Level Sports Academy 16,000 16% $0.38 $6,080 $72,960 15%

B BMS Limited 16,000 16% $0.39 $6,281 $75,366 16%



32,000

$12,361 $148,326









2064 A Putnam Business International 10,500 11% $0.43 $4,550 $54,600 11%

B Charity Vision International 25,644 26% $0.37 $9,424 $113,090 23%

CDE&F High Tech Welding & Machine 29,856 30% $0.46 $13,833 $165,999 34%



66,000

$27,807 $333,689












98,000 100%
$40,168 $482,015 100%


















BLDG SUITE TENANT LEASE START LEASE END LEASE TERM COMMENTS

2100 A Elite Level Sports Academy
Dec 31, 2018
One (2) year renewal option at 3% increase above last months rent.


B BMS Limited Jun 19, 2014 Dec 31, 2017 42 3% Increase 8/1/17. One (3) year renewal option at FMV



















2064 A Putnam Business International Jan 1, 2005 Dec 31, 2019 179 4% Increase 1/1/17, 2.9% Annual Increases thereafter. One (3) year renewal option at FMV.


B Charity Vision International Mar 1, 2016 May 31, 2021 62 3% Annual Increases every March. One (5) year renewal option at FMV.


CDE&F High Tech Welding & Machine Jul 1, 2004 Jul 31, 2019 180 No Renewal Options