The purchaser's return on the sale/leaseback will be 9.0% per annum, on a triple net basis, for a 2 year term. The developer will have the right to repurchase the property at any time during the 2 year term for $3,100,000. Based on a current broker's price opinion, the development is valued at approximately $5,800,000, thus reducing the purchaser's risk (and possibly increasing the purchaser's return) in the event that the developer fails to repurchase the development.
The developer will establish an escrow account at closing to deposit $1,490,000 of the sale proceeds to ensure that he reinvests the funds back into the developement. The developer will be authorized to draw down the funds held in escrow to pay for specified development and soft costs. The purchaser's return will be 15.8% per annum, on an unleveraged basis, if the developer repurchases the development at the end of the 2 year option period. In the likely event that the developer repurchases the development earlier than 2 years, the purchaser's return will increase.
If you would like to review a detailed Executive
Summary regarding this sale/leaseback investment, please reply to this
e-mail.
Ron
_____________________________________________________
Ronald B. Zimmerman, President
NetLeaseX Realty Markets, Inc.
119 East Court
Street
Cincinnati, Ohio 45202
Tel: (513) 861-1031 Fax: (513)
632-9577 Mobile: (513) 325-2909
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