401, 403 & 405 Powerhouse Street, McKinney, Texas
This property consists of an existing 49,853 square foot, three-building multi-tenant industrial facility. Located on approx 3.76 acres, and configured into 24 flexible spaces.
In the August 2012 issue of Money Magazine, McKinney ranked No. 2 on the best places to live in America. McKinney has been among the fastest-growing cities in the country since 2000.
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 | 06 February 2014 |
| Contract purchase price | $4,125,000 |
| Original listed price | $4,250,000 |
| Discount to listing price | $125,000 (2.9%) |
| Independently appraised price | $4,150,000 |
| Occupancy at purchase date | 94% | Appraisal date and appraiser | 20 December 2013 Integra Realty Resources |
| Finance terms | $800,000 owner finance at 6% interest amoritsed over 20 years with a 10 year balloon. |
| Gross Building Area | 49,853 sq ft (4,631 sq mtrs) |
| Land size | 163,785 sq ft (15,216 sq mtrs) |
| At purchase estimated net operating income | $322,988 |
| At pruchase estimated capitalization rate | 7.83% |
| At purchase estimated cash on cash return | 8.27% |
Aerial Picture:
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.
More information on key terms:
| 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 |
| Current estimated capitalization rate: | Using unaudited management reports, the estimated capitalization rate as at the date of purchase. |
| Current estimated cash on cash return: | Using unaudited management forecasts, the estimated cash on cash return as at the date of purchase. |
