RECENT TRANSACTIONS
Purchase Price: $2,344,375
Projected Sale Price: $4,445,000.00
The previous owners of this project were unable to develop it to its potential. Since acquisition, we have added a furniture store, tanning salon known as Club Del Sol, and a juice bar named WowJus. We acquired this center with an existing UPS store tenant and plan to sell in January 2009.
Purchase Price: $16,377,037.00
Loan Amount: $13,570,000.00
Equity at Closing: $2,807,037.00
Current debt as of June 30, 2008: $ 6,082,717.00
Present Market Value: $16,608,000.00
We Purchased 15 MRI NNN assets operated by Medquest at a capitalization rate over 11%. Medquest had poor credit and our plan was to flip them to the 1031 market. In August of 2007 Novant Health (AAA- credit) bought out Medquest. We have since sold 4 units and currently have 4 units in LOI or contract. We plan to be out of this project with substantial profit by March of 2009. The units have also had substantial cash flow over the loan.
Purchase Price: $1,162,838.00
Date of Sale: July 31, 2007
Sale Price: $2,450,000.00
We purchased this building for a telecommunications tenant and provided a large build-out package and subsequently sold it yielding just over 1mm in profit.
Purchase Price: $1,250,000.00
Projected Sale Price: $2,100,000.00
This project was a Sale Lease Back with a Krystal Franchisee whose objective is to buy into multiple units. We were able to get in and make this project happen at two locations at an 11.75 capitalization rate. Both of these units have been very successful.
Purchase Price: $3,850,000.00
Date of Close: November 2008
Projected sale price: This is a new project that we are planning to close in November 2008 and is similar to the deals we are looking for in the market. The seller was distressed and we offered him below replacement cost and he jumped at the offer. During Due Diligence we were able to lease the 9,700 vacant square feet at above market rents and at a $4,262,000.00 cost we are projecting a $6,000,000.00 value at 8.25 cap rate.
Purchase Price: $2,340,000.00
Offering: $4,605,000.00
This was a building that was distressed and had not been leased since being built in 2006. We leased the center 100% in 60 days. We have a 3mm cost and are currently negotiating a contract at just over $4,000,000.00.
Purchase Price: $2,328,000.00
Current debt as of 6/30/08: $3,900,000.00
Present Market Value: $6,700,000.00
We bought the note on this center from the bank for 60 cents on the dollar and foreclosed on the owner. We subsequently leased up 35,000 square feet of vacancy and Plan to sell in June of 2009.
1753 E. Broadway Rd. Tempe AZ
Date of Purchase: January 7, 2008Purchase Price: $2,344,375
Projected Sale Price: $4,445,000.00
The previous owners of this project were unable to develop it to its potential. Since acquisition, we have added a furniture store, tanning salon known as Club Del Sol, and a juice bar named WowJus. We acquired this center with an existing UPS store tenant and plan to sell in January 2009.
Purchase of 15 MedQuest Facilities
Date of Purchase: May 31, 2007Purchase Price: $16,377,037.00
Loan Amount: $13,570,000.00
Equity at Closing: $2,807,037.00
Current debt as of June 30, 2008: $ 6,082,717.00
Present Market Value: $16,608,000.00
We Purchased 15 MRI NNN assets operated by Medquest at a capitalization rate over 11%. Medquest had poor credit and our plan was to flip them to the 1031 market. In August of 2007 Novant Health (AAA- credit) bought out Medquest. We have since sold 4 units and currently have 4 units in LOI or contract. We plan to be out of this project with substantial profit by March of 2009. The units have also had substantial cash flow over the loan.
6905 W. Frye Rd. Chandler AZ.
Date of Purchase: April 26, 2006Purchase Price: $1,162,838.00
Date of Sale: July 31, 2007
Sale Price: $2,450,000.00
We purchased this building for a telecommunications tenant and provided a large build-out package and subsequently sold it yielding just over 1mm in profit.
3101 East First Street, Vidalia GA--Krystal
Date of Purchase: January 14, 2008Purchase Price: $1,250,000.00
Projected Sale Price: $2,100,000.00
This project was a Sale Lease Back with a Krystal Franchisee whose objective is to buy into multiple units. We were able to get in and make this project happen at two locations at an 11.75 capitalization rate. Both of these units have been very successful.
1239 E. McKellips Rd. Mesa AZ
Date of Purchase: In EscrowPurchase Price: $3,850,000.00
Date of Close: November 2008
Projected sale price: This is a new project that we are planning to close in November 2008 and is similar to the deals we are looking for in the market. The seller was distressed and we offered him below replacement cost and he jumped at the offer. During Due Diligence we were able to lease the 9,700 vacant square feet at above market rents and at a $4,262,000.00 cost we are projecting a $6,000,000.00 value at 8.25 cap rate.
1020 E. Ray Road, Chandler 85225
Date of Acquisition: June 11, 2008Purchase Price: $2,340,000.00
Offering: $4,605,000.00
This was a building that was distressed and had not been leased since being built in 2006. We leased the center 100% in 60 days. We have a 3mm cost and are currently negotiating a contract at just over $4,000,000.00.
934 E. Church Street Jasper GA
Date of Purchase: May 14, 2008Purchase Price: $2,328,000.00
Current debt as of 6/30/08: $3,900,000.00
Present Market Value: $6,700,000.00
We bought the note on this center from the bank for 60 cents on the dollar and foreclosed on the owner. We subsequently leased up 35,000 square feet of vacancy and Plan to sell in June of 2009.
2805 E. Indian School Rd. Phoenix, AZ
Date of Purchase: August 27, 2007Purchase Price: $1,200,000.00
Sale price: $2,668,000.00
We remodeled the building and leased up the vacant suites. This asset is currently on the market for sale.
904 N. Scottsdale Rd. Tempe, AZ
Date of Purchase: September 10, 2007Purchase Price: $1,271,000.00
Sale Price: $3,690,000.00
We remodeled the building and leased up the vacant suites. This asset is currently on the market for sale.
85 W. Court Street Woodland CA
Date of Purchase: August 10, 2007Purchase Price: $1,125,000.00
Sale Price: $1,600,000.00
This is a single tenant building which has been leased to “The Q shack” which is a barbecue restaurant and offers sit down service or drive thru.
Roseville-Highland Village
We purchased 14 acres next to a prominent regional mall in the Sacramento area. We have 6 restaurants and bars in addition to 2 Hyatt Hotels in contract. We broke ground in April of 2008.
Surprise Pointe –The Boulevard
This is a 300,000SF development anchored by Ultra Star Movie Theater. Phase 1 is complete. Phase 2 construction will commence in the 4th quarter of this year.
Maricopa-Porter Crossing
This is 200,000SF development anchored by Ultra Star Movie Theater.
Chandler Heights
This center is 150,000 square feet anchored by Pure Fitness and breaks ground in August 2008.
4321 N. Scottsdale Rd. –Saddle Ranch Chop House
Date of Purchase: December 15, 2005Purchase Price: $1,800,000.00
Sale Price: $5,676,923.00
This was formally Landry’s Seafood House in a great redevelopment area. We reconstructed the building and leased the 10,000 +/- premises to Saddle Ranch Chop House based out of LA. We are currently in contract for $5,600,000.00. The purchase price does not include the Tenant Improvement Allowance or soft costs for this project.
I-17 and Thunderbird
This is a 19,000 square foot center next to Best Buy. It was completed in June of 2008 and is currently on the market at a capitalization rate of 7.5%.
4320 E. Presidio, Mesa Arizona
Date of Purchase: December 7, 2007Purchase Price: $1,405,123.00
Date of Sale: February 26, 2008
Sale Price: $4,320,000.00
This was approximately 12,000 square feet of condo units remodeled and leased to AISPA tenant for a day spa. Sales price did not include Tenant Improvement Allowance or soft costs.
110 Mall Rd. Dublin GA--Krystal
Date of Purchase: January 14, 2008Purchase Price: $775,000.00
Projected Sale Price: $1,300,000.00