285,000 SF Retail Center


Northern California


OPPORTUNITY:

  • Off Market
  • Existing 285,000 SF if Retail
  • Permits pulled and work in progress to add 45,000 taking the Net Leasable to 330,00 SF.
  • New space is 90% leased
  • The site is entitled for +/- 420,000 sf

 

PROJECT SUMMARY:

  • Long time operating asset that is +/- 90% leased
  • Adjacent to parkes and trails
  • EB5 money in place to do the addition, TI's and remodel to existing space
  • 2012 NOI audited by Wells Fargo $2,000,000
  • 2013 NOI audited by Wells Fargo $3,100,000
  • 2014 NOI is currently being audited by Wells Fargo and is anticipated to be $3,300,000
  • 2015 NOI to be audited and is expected to bet $3,400,000+
  • With the additional space and tenants the seller is projecting a NOI of $4,680,000

 

THE OFFERING:

  1. The price they will sell at is $64,000,000
  2. $64M based on $3.3M NOI is a 5.125 CAP
  3. $64M based on a $4.68M NOI is a 7.34 CAP

VALUE

Buyer / Investor must rely on its own Due Dilligence

TIMING

  1. One of the conditions that looms with this deal is EB-5 financing.    Here are some highlights of the EB-5 program for this property.
    1. The project is approved as a regional EB-5 investment center.
    2. It could take up to $25.5M in EB-5 money
    3. Ownership is only pursuing $12M in EB-5 money.
    4. The EB-5 money is approved to be used as tenant improvement, new construction or capital improvements.
    5. Ownership is looking at the EB-5 money as a project recapitalization with the source of funds in place.  I am not sure if this is a true benefit to you.
    6. They just completed trips to China and Dubai and have agreements for $4.5M of EB-5 partners.  They now have to consider these partnerships in any transaction they get into. 
    7. I am not sure if you have experience with EB-5 investors.  Each investor puts in $500K to get a visa.  Each $500,000 needs to create 10 jobs.  The investors get a 1% annual return on the investment for 5 years.  At the end of the 5 years they go away.

 

 

RELATIONSHIP

The deal is off market and the seller is very concerned that this remain off the radar, a low profile transaction.  Confidentiality is paramount.  Our contact is the CFO who also happens to be a son and the person gathering the EB-5 money. 

FINANCIAL ASSUMPTIONS

Acquisition 
$64,000,000

NOI 
Year 1 - $4,750,000 
At Disposition (month 84, June 2024) - $5,200,000

Revenue 
Net Operating Income - TBD
Capitalized Rent - TBD
Total Project Revenue – TBD

Total Project Costs:
TBD

Profit:
TBD

Construction Debt:
EB5 Money

Total Equity:
TBD

Mortgage:
TBD

Equity IRR / Multiple
TBD

 

 


Contact Joe Richter 949 769-2000 or 949 677-7722 (c)

JRichter@HanoverDevelopment.com

or

Roland Loelkes 949 274-6474 Roland@OCSoCAl.com

 

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