2081 Jonesboro Rd, McDonough, GA, 30253
Property Overview:
Towne Crest Village is a substantial single-storey ten-tenant retail property, located on 1.75 acres with frontage on Jonesboro Road in McDonough, Georgia – a middle class suburb of Atlanta experiencing substantial growth.
The purchase price is $3,637,563 is a little under the independent valuation of $3.7m, but substantially less than the 2006 sale price of $4,890,000.
The property has a capitalisation rate at purchase of 8.20%.
Property / Financial Information:
Disclaimer: Information provided about forecast annual net cash flow and cash on cash returns are derived from unaudited financial projections. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Responsible Entity. The Responsible Entity cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements.
|
Acquisition date |
18 May 2015 |
|
Contract purchase price |
$3,637,563 |
|
Original listed price |
$3,840,000 |
|
Discount to listing price |
$202,437 (5.2%) |
|
Independently appraised price |
$3,700,000 |
|
Estimated insurance replacement cost |
$2,000,000 |
|
Occupancy at purchase date |
94% |
Appraisal date and appraiser |
31 March 2015 |
|
Finance terms |
Loan of $1,750,000 at 5.145% pa |
|
Gross Building Area |
20,053 sq ft (1,862 sq mtrs) |
|
Land size |
76,230 sq ft (7,082 sq mtrs) |
|
At purchase estimated net operating income |
$297,361 |
|
At purchase estimated cap rate |
8.20% |
|
At purchase estimated cash on cash return |
8.20% |
Further Notes:
Currency: All numbers are shown in USD. Returns shown have not been translated into Australian dollars as the exchange rate varies. A AUD:USD exchange rate below AUD1:USD1 will increase the percentage return. A AUD:USD exchange rate in excess of AUD1:USD1 will decrease the return.
Management costs: Returns shown above include US management costs, but exclude the management fee charged by the Responsible Entity (1.98% per annum of Gross Assets).
Aerial Picture:
More information on key terms:
| Estimated insurance replacement cost: | The estimated cost to rebuild the property in the event of a total loss. The number is calculated via discussions with a independent insurance broker and considers the age and construction type / quality of the building. |
| Net operating income: | Operating income – operating expenses |
| Capitalization rate: | (Net operating income ÷ Purchase price) × 100 |
| Cash on Cash return: | (Annual cash back ÷ Cash down) × 100 |
| At purchase capitalization rate: | Using unaudited management forecasts, the estimated capitalization rate at purchase date. |
| At purchase cash on cash return: | Using unaudited management forecasts, the estimated cash on cash return at purchase date. |
