5636 Youngquist Road, Fort Myers, FL, 33912
Property Overview:
Located in popular south Fort Myers, this property was acquired 100% occupied. Purchase price is $45 per square feet, a discount of about $20 per square foot to replacement value.
The rents are a little low, contributing to the 8.58% cap rate at purchase, however it is hoped this will increase once leases reset.
The property was acquired as a package with 5760 Youngquist Rd from the same seller who had inherited the portfolio.
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 |
15 July 2015 |
|
Contract purchase price |
$450,000 |
|
Original listed price |
$629,000 |
|
Discount to listing price |
$179,000 (28.46%) |
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Independently appraised price |
$470,000 |
|
Estimated insurance replacement cost |
$TBA |
|
Occupancy at purchase date |
100% |
Appraisal date and appraiser |
24 June 2015 |
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Finance terms |
All cash |
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Gross Building Area |
10,000 sq ft (929 sq mtrs) |
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Land size |
38,768 sq ft (3,601 sq mtrs) |
|
At purchase estimated net operating income |
$30,915 |
|
At purchase estimated cap rate |
8.58% |
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At purchase estimated cash on cash return |
8.58% |
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).
Returns: Returns prior to the property being stabilized are expected to be lower than those forecast above as once off due diligence costs are absorbed, and as less income is received from vacancies as at purchase date. Unless otherwise noted, properties are expected to be stabilized within 12 months of acquisition.
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. |
