Walden Pond Cove ALF For Sale

Transcription

1 6Bed Fully Licensed Assisted Living Facility Steady & Stable Resident Base Great Income Current NOI $79, % Cap Rate at Asking Price Contact Robb Mercado for further Information or Presented by CRES Corp International, LLC 1228 E 7th Ave Tampa, Fl 33605

2 CRES Corp International, LLC Walden Pond Cove ALF For Sale 0 Income, Expenses & Cash Flow Property Overview Potential Rental Income $ 163,600 Purchase/Asking Price $ 650,000 Property Type Commercial Other Income Improvements No. of Units 5 Total Vacancy and Credits Other Price Per Unit $ 130,000 Operating Expenses $ (84,278) Closing Costs Total Sq Ft 2,393 Annual Reserves: $ Finance Points Price Per Sq Ft $ 272 Net Operating Income (NOI) $ 79,322 Income per Unit $ 32,720 MIP Payments $ Total Acquisition Cost $ 650,000 Expenses per Unit $ (16,856) Annual Reserves: $ Debt Service: $ Mortgage (s) $ Cash Flow Before Taxes $ 79,322 Income Taxes: Benefit 0% Down Payment / Investment $ 650,000 Cash Flow After Taxes $ 79,322 Assumptions Loan Information % of Asking % of Cost Rental Growth Rate: 3.00% Down Payment: $ 650, % % Expense Growth Rate: 2.00% Initial Loan Balance: $ 0.00% 0.00% Capitalization Rate (Resale): 12.00% Marginal Tax Rate: 0.00% Loan Amount Interest Rate Term Payment Capital Gain Tax Rate: 0.00% $ 5.50% 30 $0 $ 8.00% 30 $0 $ 8.00% 30 $0 Financial Measurements Year 1 Year 3 Year 7 Notes / Discussion Debt Coverage Ratio (DCR) LoantoValue Ratio (LVR) 0.0% 0.0% 0.0% Capitalization Rate Based on Cost 12.20% 13.21% 15.45% Capitalization Rate Based on Resale Price 12.00% 12.00% 12.00% Gross Rent Multiplier Net Present Value (NPV) B/ Taxes Net Present Value (NPV) A/Taxes 13.50% (21,015) 12,590 63, % (1,002) 71, ,947 Cash on Cash Return Before Taxes 12.20% 13.21% 15.45% Cash on Cash Return After Taxes 12.20% 13.21% 15.45% Internal Rate of Return Before Taxes 14.31% 15.57% Internal Rate of Return After Taxes 14.31% 15.57% Modified Internal Rate of Return Before Taxes Modified Internal Rate of Return After Taxes 12.88% 11.93% 12.88% 11.93% Disclaimer: All information presented is believed to be accurate. The information, calculations and data presented in this report are believed to be accurate but are not guaranteed. The information contained in this report shall not be considered as a substitution for legal, accounting or other professional advice. Please seek proper legal and tax advice as appropriate before making investments.

3 Property Description Walden Pond Cove ALF For Sale 0 Longwood, FL 6Bed Assisted Living Facility Fully operating ALF in Central FL. Close to I4 and SR Total Living Sq. Ft HIGHLIGHTS 6 Bed Assited Living 12.2% Cap Asking Price $79,301 NOI at 83% Occupancy Steady and reliable annual income: $79,322 NOI Cash OR Third Party Financing Options include both institutional and private capital terms To consider thisproperty or to schedule a showing, contact ROBB MERCADO directly or Robb.Mercado@CRESCorpLLC.com. Do not visit the property without an appointment! All inquiries must have POF s or a PreQualification Letter from a credible third party lender. CRES Corp International, LLC benny@crescorpllc.com 1228 E 7th Ave 0 Tampa, Fl 33605

4 Exterior Front Backyard Office Kitchen Dining Area

5 Rental Activity Analysis Year 1 Year 2 Year 3 Year 4 Year 5 Potential Rental Income $ 163,600 $ 168,508 $ 173,563 $ 178,770 $ 184,133 Less: Vacancy & Credit Losses Effective Gross Income $ 163,600 $ 168,508 $ 173,563 $ 178,770 $ 184,133 Less: Operating Expenses (84,278) (85,964) (87,683) (89,436) (91,225) Net Operating Income (NOI) $ 79,322 $ 82,544 $ 85,880 $ 89,334 $ 92,908 Less: Annual Debt Service CASH FLOW Before Taxes $ 79,322 $ 82,544 $ 85,880 $ 89,334 $ 92,908 Property Resale Analysis Projected Sales Price $ 661,017 $ 687,870 $ 715,670 $ 744,447 $ 774,234 Less: Selling Expenses (26,441) (27,515) (28,627) (29,778) (30,969) Adjusted Projected Sales Price $ 634,576 $ 660,356 $ 687,043 $ 714,669 $ 743,264 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes $ 634,576 $ 660,356 $ 687,043 $ 714,669 $ 743,264 Cash Position Cash Generated in Current Year $ 79,322 $ 82,544 $ 85,880 $ 89,334 $ 92,908 Cash Generated in Previous Years n/a 79, , , ,080 Cash Generated from Property Sale 634, , , , ,264 Original Initial Investment (650,000) (650,000) (650,000) (650,000) (650,000) Total Potential CASH Generated $ 63,898 $ 172,222 $ 284,790 $ 401,750 $ 523,253 Financial Measurements Capitalization Rate Based on Cost 12.20% 12.70% 13.21% 13.74% 14.29% Capitalization Rate Based on Resale Price 12.00% 12.00% 12.00% 12.00% 12.00% Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM , , , , ,600 BreakEven Ratio 51.51% 51.01% 50.52% 50.03% 49.54% Operating Expense Ratio 51.51% 51.01% 50.52% 50.03% 49.54% CashonCash Return with Equity 9.83% 17.07% 17.05% 17.02% 17.00% CashonCash Return Before Taxes 12.20% 12.70% 13.21% 13.74% 14.29% 5/29/ :20 PM Cash Flow Analyzer

6 Rental Activity Analysis Potential Rental Income Less: Vacancy & Credit Losses Effective Gross Income Less: Operating Expenses Net Operating Income (NOI) Year 6 Year 7 Year 8 Year 9 Year 10 $ 189,657 $ 195,347 $ 201,207 $ 207,244 $ 213,461 $ 189,657 $ 195,347 $ 201,207 $ 207,244 $ 213,461 (93,050) (94,911) (96,809) (98,745) (100,720) $ 96,608 $ 100,436 $ 104,398 $ 108,498 $ 112,741 Less: Annual Debt Service CASH FLOW Before Taxes $ 96,608 $ 100,436 $ 104,398 $ 108,498 $ 112,741 Property Resale Analysis Projected Sales Price Less: Selling Expenses Adjusted Projected Sales Price $ 805,063 $ 836,969 $ 869,987 $ 904,154 $ 939,507 (32,203) (33,479) (34,799) (36,166) (37,580) $ 772,860 $ 803,490 $ 835,187 $ 867,988 $ 901,927 Less: Mortgage(s) Balance Payoff SALE PROCEEDS Before Taxes $ 772,860 $ 803,490 $ 835,187 $ 867,988 $ 901,927 Cash Position Cash Generated in Current Year Cash Generated in Previous Years Cash Generated from Property Sale Original Initial Investment Total Potential CASH Generated $ 96,608 $ 100,436 $ 104,398 $ 108,498 $ 112, , , , , , , , , , ,927 (650,000) (650,000) (650,000) (650,000) (650,000) $ 649,456 $ 780,522 $ 916,618 $ 1,057,917 $ 1,204,597 Financial Measurements Capitalization Rate Based on Cost Capitalization Rate Based on Resale Price 14.86% 15.45% 16.06% 16.69% 17.34% 12.00% 12.00% 12.00% 12.00% 12.00% Gross Rent Monthly Multiplier (GRM) Gross Rent Yearly Multiplier (GRM) Value of Property Using this GRM 4.50 BreakEven Ratio Operating Expense Ratio , , , , , % 48.59% 48.11% 47.65% 47.18% 49.06% 48.59% 48.11% 47.65% 47.18% CashonCash Return with Equity CashonCash Return Before Taxes 16.98% 16.96% 16.94% 16.92% 16.90% 14.86% 15.45% 16.06% 16.69% 17.34% 5/29/ :20 PM Cash Flow Analyzer

7 Expense Description Annual Amount Annual Increase Per Unit Per Sq Ft % of % of Expenses Revenue Insurance Landscaping Maintenance Payroll (Labor Cost) Repairs Supplies Property Taxes Payroll Electricity Food & Beverage Cable 1, % % 0.9% 1, % % 0.7% % % 0.4% 61, % 12, % 37.3% % % 0.4% 1, % % 0.7% 2, % % 1.3% 4, % % 2.8% 3, % % 2.2% 7, % 1, % 4.4% % % 0.4% Total Annual Operating Expenses $ 84,278 $ 16,856 2, % 51.5%

8 Annual Property Operating Data 1 2 Year 1 Sq Ft Per Unit Year 2 Sq Ft Per Unit Year 3 Sq Ft Per Unit Year 4 Sq Ft Per Unit Year 5 Sq Ft Per Unit Potential Rental Income $ 163, , $ 168, , $ 173, , $ 178, , $ 184, , Effective Gross Income $ 163, , $ 168, , $ 173, , $ 178, , $ 184, , Operating Expenses Insurance 1, , , , , Landscaping 1, , , , , Maintenance Payroll (Labor Cost) 61, , , , , , , , , , Repairs Supplies 1, , , , , Property Taxes 2, , , , , Payroll 4, , , , , Electricity 3, , , , , Food & Beverage 7, , , , , Cable Total Operating Expenses $ 84, , $ 85, , $ 87, , $ 89, , $ 91, , Net Operating Income (NOI) $ 79, , $ 82, , $ 85, , $ 89, , $ 92, , Cash Flow Before Taxes $ 79, , $ 82, , $ 85, , $ 89, , $ 92, , Cash Flow Analyzer

9 Annual Property Operating Data 1 2 Year 6 Sq Ft Per Unit Year 7 Sq Ft Per Unit Year 8 Sq Ft Per Unit Year 9 Sq Ft Per Unit Year 10 Sq Ft Per Unit Potential Rental Income Effective Gross Income $ 189, , $ 195, , $ 201, , $ 207, , $ 213, , $ 189, , $ 195, , $ 201, , $ 207, , $ 213, , Operating Expenses Insurance Landscaping Maintenance Payroll (Labor Cost) Repairs Supplies Property Taxes Payroll Electricity Food & Beverage Cable Total Operating Expenses 1, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , $ 93, , $ 94, , $ 96, , $ 98, , $ 100, , Net Operating Income (NOI) $ 96, , $ 100, , $ 104, , $ 108, , $ 112, , Cash Flow Before Taxes $ 96, , $ 100, , $ 104, , $ 108, , $ 112, , Cash Flow Analyzer

10 Cash Flow After Taxes Cash Flow Before Taxes $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $ Time Net Operating MIP Payments Debt Cash Flow Incomes Cash Flow Period Income Service Before Tax Taxes After Tax Int Investment $ (650,000) $ (650,000) Year 1 79,322 79,322 79,322 Year 2 82,544 82,544 82,544 Year 3 85,880 85,880 85,880 Year 4 89,334 89,334 89,334 Year 5 92,908 92,908 92,908 Year 6 96,608 96,608 96,608 Year 7 100, , ,436 Year 8 104, , ,398 Year 9 108, , ,498 Year , , , Cash Flow Analyzer

11 After Taxes Before Taxes 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Initial Investment Cash Flow Cash on Cash Income Cash Flow Cash on Cash Period Adj for Refinance Before Taxes Before Taxes Taxes After Taxes After Taxes Year 1 $ 650,000 $ 79, % $ $ 79, % Year 2 650,000 82, % 82, % Year 3 650,000 85, % 85, % Year 4 650,000 89, % 89, % Year 5 650,000 92, % 92, % Year 6 650,000 96, % 96, % Year 7 650, , % 100, % Year 8 650, , % 104, % Year 9 650, , % 108, % Year , , % 112, % Cash Flow Analyzer

12 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Time Net Operating Cap Rate on Cost Resale Period Income (NOI) $ 650,000 Value Year 1 $ 79, % $ 661,017 Year 2 82, % 687,870 Year 3 85, % 715,670 Year 4 89, % 744,447 Year 5 92, % 774,234 Year 6 96, % 805,063 Year 7 100, % 836,969 Year 8 104, % 869,987 Year 9 108, % 904,154 Year , % 939, Cash Flow Analyzer

13 $1,000,000 $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ Time Projected Adj Projected Refi Proceeds Mortgage(s) Sale Proceeds Income Taxes Sale Proceeds Property Year / Year Period Resale Value Increase (if any) Balance Payoff Before Taxes From Sale After Taxes Equity Equity Increase Year 1 $ 634, % $ $ $ 634,576 $ $ 634,576 $ 634,576 $ (15,424) Year 2 660, % 660, , ,356 25,780 Year 3 687, % 687, , ,043 26,688 Year 4 714, % 714, , ,669 27,626 Year 5 743, % 743, , ,264 28,595 Year 6 772, % 772, , ,860 29,596 Year 7 803, % 803, , ,490 30,630 Year 8 835, % 835, , ,187 31,698 Year 9 867, % 867, , ,988 32,800 Year , % 901, , ,927 33, Cash Flow Analyzer

14 Return on Equity (ROE) 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Required Return on Equity Time Period Rental Annual Change Annual Change Trapped Return on Hold Cash Flow in Equity in Net Worth Equity Equity (ROE) Sell 6.00% A B (A + B) Year 1 79,322 (15,424) 63, , % Hold After Year Year 2 82,544 25, , , % Hold 5 Year 3 85,880 26, , , % Hold Year 4 89,334 27, , , % Hold Year 5 92,908 28, , , % Hold Year 6 96,608 29, , , % Hold Year 7 100,436 30, , , % Hold Year 8 104,398 31, , , % Hold Year 9 108,498 32, , , % Hold Year ,741 33, , , % Hold Cash Flow Analyzer

15 BreakEven Occupancy BreakEven Occupancy with Cash on Cash Requirment 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Cash on Cash Time Period Potential Operating, Debt, Occupancy BreakEven Max Vacancy BreakEven Max Vacancy Requirement Rental Income Reserve Expenses Rate (Existing) Occupancy Rate BreakEven Rate Occupancy Rate BreakEven Rate 6.00% w/ Cash on Cash w/ Cash on Cash Year 1 163,600 (84,278) % 51.51% 48.49% 75.35% 24.65% Year 2 168,508 (85,964) % 51.01% 48.99% 74.16% 25.84% Year 3 173,563 (87,683) % 50.52% 49.48% 72.99% 27.01% Year 4 178,770 (89,436) % 50.03% 49.97% 71.84% 28.16% Year 5 184,133 (91,225) % 49.54% 50.46% 70.72% 29.28% Year 6 189,657 (93,050) % 49.06% 50.94% 69.63% 30.37% Year 7 195,347 (94,911) % 48.59% 51.41% 68.55% 31.45% Year 8 201,207 (96,809) % 48.11% 51.89% 67.50% 32.50% Year 9 207,244 (98,745) % 47.65% 52.35% 66.47% 33.53% Year ,461 (100,720) % 47.18% 52.82% 65.45% 34.55% Cash Flow Analyzer

16 CRES Corp International, LLC CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl benny@crescorpllc.com Commercial Real Estate Services Development Management Financial Services CRES Corp International, LLC (CCI) is a Commercial Real Estate company offering development, finance and brokerage services. Our Development Teamspecializes in health care construction and offers the latest and most cost effective construction technology. Our Development specializes in health care, medical, MultiFamily & Hospitality operations and development: Construction & Development Project Planning Property Acquisitions Investment Structuring Property Conversion and Repositioning Joint Venture Structuring Medical/Health Care Property Management Financial Arrangement & Consulting To assist our Clients with their development projects and acquisitions we offer affordable financing alternatives to conventional financing methods: Variable Rate Demand Bonds Industrial Revenue & Municipal Bonds Buildto Lease Program Foreign Investment Funds Joint Venture/Equity Partnership Arrangements Our goal is to bring our Clients the lowest interest rates and best leverage on their purchases and projects. We will consider the following properties and projects: Health Care/Medical Offices MultiFamily Schools/Universities Hospitality

17 Terms & Definitions Net Operating Income (NOI) is a property s gross rental income reduced by all expenses except for loan payments, income taxes, mortgage insurance premium (MIP) payments and sometimes funded reserves. Debt Coverage Ratio (DCR) is a property s net operating income divided by the amount of debt payments. Lenders use this calculation to determine the remaining operating cash flow after the debt payments. LoantoValue Ratio (LTV) is the outstanding debt divided by the value of the property. This ratio is used to determine the amount of leverage and property equity. The debt balance can be the beginning or endofyear balance. The property value used can be the contract price or the fair market value at the end of the year. Capitalization Rate (Cap Rate) is the net operating income (NOI) divided by either the property s contract purchase price or its fair market value. CashonCash Return is the net cash flow divided it by the initial investment (down payment). The calculation does not take into account the time value of money or change in the property s equity. CashonCash Return with Equity Buildup modifies the cashoncash return calculation by adding the property s net change in equity for that year to the numerator and adding all previously generated equity to the denominator of the cashoncash return ratio. The calculation calculates the return on the property equity, i.e. the return on the cash that is tied up in the property. Net Present Value (NPV) converts future dollars into presentday dollars by discounting (reducing) the future cash flow of a property by a given rate or percentage. The initial investment (down payment) is subtracted from the discounted dollars to derive the NPV. A positive NPV means that the property will generate a higher return than the given rate or percentage used to calculate the NPV amount. Gross Rent Multiplier (GRM) is a property s fair market value divided by its gross rental income. Mortgage Insurance Premium (MIP) Payments are insurance premiums charged by a lender to protect that lender against loss from a mortgager's default. The rates are charged on the balance of the loan and may be paid annually, monthly, or in some combination of the two (split premiums). Internal RateofReturn (IRR) is the most widely used method of valuing a property s annual cash flow stream. Since a property s cash flow is earned in the future, those future dollars must be converted to presentday dollars. The IRR calculation discounts (reduces) the property s future cash flow at a rate (i.e. percentage) so that the sum of all cash flow for a specified time period is equal to the initial investment. The rate or percentage needed to do that is the IRR. In other words, IRR is the discount rate at which Net Present Value (NPV) is zero. Modified Internal RateofReturn (MIRR) modifies the IRR to avoid the drawbacks of the traditional IRR. The IRR implicitly assumes that all cash flow is either reinvested or discounted at the computed IRR rate. In reality, a property s cash flow probably will not be reinvested at the computed IRR rate, but rather earn zero or a small amount of interest. The MIRR eliminates the reinvestment assumption by utilizing user stipulated reinvestment and borrowing rates. benny@crescorpllc.com CRES Corp International, LLC 1228 E 7th Ave 0 Tampa, Fl 33605