6205 & 6215 Shiloh Crossing, Alpharetta, GA 30005
Property Overview:
Located on 9.5 acres in the middle-upper suburb of Alpharetta, Shiloh Crossing is a 71,640 square foot (gross lettable area) two building industrial flexible property that is 100% occupied at purchase date.
Constructed in 2008, the property was acquired for $5.25m which was $950,000 below the independent appraised value of $6.2m.
At $73.28 per square foot you can see that we paid more than other properties in the portfolio, but the superior position, construction quality and tenant base command a higher value.
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 | 23 July 2014 |
| Contract purchase price | $5,250,000 |
| Original listed price | $5,375,000 |
| Discount to listing price | $125,000 |
| Independently appraised price | $6,200,000 |
| Estimated insurance replacement cost | $6,089,400 |
| Occupancy at purchase date | 100% | Appraisal date and appraiser | 11 June 2014 Schlemmer Appraisal Company |
| Finance terms | All cash |
| Gross Building Area | 71,760 sq ft (6,655 sq mtrs) |
| Land size | 413,820 sq ft (38,445 sq mtrs) |
| At purchase estimated net operating income | $431,329 |
| 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).
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. |
