OFFERING PRICE: $895,000 (9.9% CAP RATE) FULLY LEASED & RECENTLY RENOVATED RETAIL CENTER HIGHLIGHTS INCLUDE: FULLY LEASED WITH LONG TERM STABLE TENANTS EXCELLENT LOCATION ON MICHIGAN AVE. BETWEEN I-70 AND DOWNTOWN MARSHALL, IL & 12 MILES TO TERRE HAUTE, IN EXTENSIVE UPDATES TO FAÇADE, PARKING LOT & TENANT IMPROVEMENTS
Qualified investors have the opportunity to acquire a fully occupied and renovated shopping center, with a stable tenant base that has been under the same management for 15 years. Marshall Square Shopping Center Is located on Highway 1 (Michigan Avenue), the main North/South arteriole on Illinois Eastern border, with a daily traffic count of more than 8,000 vehicles. The oversize parking lot allows the option of building a small outparcel and increasing the income and value. o New façade o New parking lot o Built out the kitchen for the new pizza restaurant o Added a bathroom to the ESales space o Reworked rain gutters o Pressure washed building and walkways o New lighting over walkways o Renovated the interior of the free-standing building o Total renovation expense over the past year, $160,000 o Offering credit to Buyer $25,000 to replace two HVAC units Marshall Square Shopping Center 9,900 VPD 21,500 VPD
PRO FORMA INCOME STATEMENT Marshall Square Shopping Center INVESTMENT ASSUMPTIONS FINANCING TERMS RETURN MEASURES Investment Price $895,000 Initial Outlay $179,000 Internal Rate of Return (1031) NOI (Year 1) $88,175 Initial Loan Amount $716,000 Before Tax After Tax Cap Rate 9.9% Loan Amortization Term 20 Year 1 33.50% 26.53% Total Rentable Square Feet 25,000 Interest Rate on Loan 4.00% Year 5 28.42% 22.23% Purchase Price per Rentable Square Foot $35.80 Debt Service $52,066 Year 10 32.59% 28.01% Loan to Value 80% RETURN MEASURES PRO-FORMA ASSUMPTIONS Cash on Cash Return Vacancy Factor/Credit Loss 0% TAX ASSUMPTIONS Before Tax After Tax Value/Rent Increases 0% Allocated Land Cost $179,000 Year 1 20.17% 13.20% Cost Increases 0% Beginning Tax Basis $716,000 Year 5 20.17% 12.51% Selling Costs 0% Depreciation Years 39.0 Year 7 20.17% 12.12% Capital Reserves $0.00 Marginal Tax Bracket 30% Year 10 59.73% 39.16% Income 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Combined Rental Income 99,327 99,327 99,327 99,327 99,327 99,327 99,327 99,327 99,327 170,140 Tax Reimbursement 0 0 0 0 0 0 0 0 0 0 CAM Reimbursement 9,201 9,201 9,201 9,201 9,201 9,201 9,201 9,201 9,201 9,201 Insurance Reimbursement 0 0 0 0 0 0 0 0 0 0 % Rent 0 0 0 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 0 0 0 (-) Vacancy Factor 0 0 0 0 0 0 0 0 0 0 Gross Effective Income 108,528 108,528 108,528 108,528 108,528 108,528 108,528 108,528 108,528 179,341 Operating Expenses 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total Operating Expenses 20,353 20,353 20,353 20,353 20,353 20,353 20,353 20,353 20,353 20,353 Administration 0 0 0 0 0 0 0 0 0 0 Repairs and Maintenance 0 0 0 0 0 0 0 0 0 0 Capital Reserves 0 0 0 0 0 0 0 0 0 0 Insurance 0 0 0 0 0 0 0 0 0 0 Taxes 0 0 0 0 0 0 0 0 0 0 Total Operating Expenses -20,353-20,353-20,353-20,353-20,353-20,353-20,353-20,353-20,353-20,353 NET OPERATING INCOME 88,175 88,175 88,175 88,175 88,175 88,175 88,175 88,175 88,175 158,988 Capital and Tenant Costs Capital Reserves 0 0 0 0 0 0 0 0 0 0 Tenant Improvements 0 0 0 0 0 0 0 0 0 0 Leasing Commissions 0 0 0 0 0 0 0 0 0 0 Total Capital and Tenant Costs 0 0 0 0 0 0 0 0 0 0 NET OPERATING CASH FLOW 88,175 88,175 88,175 88,175 88,175 88,175 88,175 88,175 88,175 158,988 Debt Service -52,066-52,066-52,066-52,066-52,066-52,066-52,066-52,066-52,066-52,066 PRETAX CASH FLOW 36,109 36,109 36,109 36,109 36,109 36,109 36,109 36,109 36,109 106,922 Income Taxes -12,483-12,775-13,078-13,394-13,723-14,065-14,421-14,792-15,177-36,823 AFTERTAX CASH FLOW 23,626 23,334 23,031 22,715 22,386 22,044 21,688 21,318 20,932 70,100
Profit'&'Loss'Statement Properties:''Marshall'Square'Shopping'Center INCOME Annual EXPENSE Annual 4100'Rental'Income'(non@posting) 50001Management1Fees1Expense $1111111113,735 4101'Happy'Tails $''''''''' 5,700 4101'Wireless'Mike's $''''''''' 7,800 5030'Cleaning'&'Maintenance'Expense'(non@posting) 4101'EMAXX $''''''''' 7,800 5031'Pest'Control' $'''''''''''' 720 4101'Vito'Provolone $''''''' 16,800 5033'Landscaping $''''''''' 1,254 4101'H&R'Block $''''''' 10,827 6002'Snow'Removal' $''''''''' 1,350 4101'Marshall'IL'Family'Video $''''''' 15,600 50301Total1Cleaning1&1Maintenance1Expense1(nonDposting) $''''''''' 3,324 4101'Washburn $''''''' 18,000 4101'Snow'Cone'Kiosk $'''''''''''' 600 5050'Insurance'Expense'(non@posting) 4101'Family'Fitness $''''''' 16,800 5052'Building'Insurance'Expense $''''''''' 1,295 41001Total1Rental1Income1(nonDposting)1 $11111111199,927 50501Total1Insurance1Expense1(nonDposting) $''''''''' 1,295 4150'CAM'Income'(non@posting) 5100'Repairs'&'Maintenance'Expense'(non@posting) 4152'CAM'@'Property'Tax' $''''''''' 2,018 6035'Door'Repairs $'''''''''''' 300 4153'CAM'@'Insurance $'''''''''''' 827 51001Total1Repairs1&1Maintenance1Expense1(nonDposting) $'''''''''''' 300 4157'CAM'@'Income' $''''''''' 6,355 41501Total1CAM1Income1(nonDposting) $''''''''''' 9,200 5300'Taxes'Expense'(non@posting) 5301'Property'Taxes $''''''''' 7,588 53001Total1Taxes1Expense1(nonDposting) $''''''''' 7,588 Monthly Rent Roll Analysis Properties: Marshall Square Shopping Center Results as of September 7, 2016 Misc Total Security Move-in Last Rent Increase Customer Unit # Unit Type Rent Charges Charges Deposit Date Lease End Increase Amount Marshall Square Shopping Center Happy Tails 1302 1,425 SF $ 475 $ 143 $ 618 $ - 10/1/2010 1/1/2011 475.00 Wireless Mike's 1304 1,575 SF $ 650 $ 135 $ 785 $ 550 2/1/2007 2/10/2017 8/1/2013 50.00 EMAXX 1306 850 SF $ 650 $ 125 $ 775 $ - Vito Provolone 1314 3,100 SF $ 1,400 $ 200 $ 1,600 $ - 9/1/2021 H & R Block 1316 2,500 SF $ 902 $ 164 $ 1,067 $ - 11/1/2007 4/30/2018 Marshall, IL Family Video 1318 5,000 SF $ 1,300 $ - $ 1,300 $ - 12/1/2009 12/31/2016 5/1/2015 27.25 Washburn 1408 5,000 SF $ 1,500 $ 1,500 $ - 6/30/2015 10/1/2018 Snow Cone Kiosk Kiosk $ 50 $ - $ 50 $ - 5/20/2011 8/1/2015 1,000.00 Family Fitness 1310-1312 5,700 SF $ 1,400 $ - $ 1,400 $ 1,500 6/1/2013 2/28/2016 4/1/2013 1,400.00 Total for Property 20,150&SF $ 8,327 $ 767 $ 9,094 $ 2,050 5400'Utilities'Expense'(non@posting) 5402'Water'&'Sewer $''''''''' 1,111 5404'Electric $''''''''' 3,000 54001Total1Utilities1Expense1(nonDposting) $''''''''' 4,111 TOTAL1INCOME $11109,127 TOTAL1EXPENSES $11120,353 NOI $1188,774
MARSHALL, IL Population ~ 4000 Located between Effingham, IL and Terre Haute, IN Located in Clark County, Illinois TRW Automotive operates an electronic manufacturing facility in town