1900 Oak Grove Blvd, Lutz, Florida
Property Overview:
Eagle Plaza is a relatively new, modern and well located strip shopping mall in Pasco County, Lutz – Florida, a northern suburb of the Tampa Bay region.
Pasco County is situated on the West Coast of Florida (2012 population of Pasco County is 470,391). The property is well positioned as it fronts State Road 54 – a major six lane raodway servicing traffic in the east/west directions.
Eagle Plaza comprises 3.09 acres of land, on which are two buildings (see below) that comprise a total of 29,695 square feet of lettable space, presently configured to 17 tenant bays.
- Building A (built 2004): TBC square feet, split into 7 tenancies.
- Building B (built 2006): TBC square feet, split into 7 tenancies.
- Parking for 120 vehicles.
Note: some tenants have leased multiple tenant bays. The present tenants are mostly service related as opposed to traditional retail, which is seen as advantageous as the tenancies are more stable.
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 | 3 December 2013 |
| Contract purchase price | $2,323,000 |
| Original listed price | $2,650,000 |
| Discount to listing price | $327,000 (12.3%) |
| Independently appraised price | $2,450,000 |
| Insured value (est. replacement cost) | $2,524,075 |
| Occupancy at purchase date | 84% | Appraisal date and appraiser | 22 October 2013 Oxtal Real Estate Advisors |
| Finance terms | Cash purchase |
| Gross Building Area | 29,695 sq ft (2,759 sq mtrs) |
| Land size | 134,600 sq ft (12,505 sq mtrs) |
| At purchase estimated net operating income | $197,250 |
| At stabilized estimated cap rate | 8.49% |
| At stabilized estimated cash on cash return | 10.82% |
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:
| 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 stabilized capitalization rate: | Using unaudited management forecasts, the estimated capitalization rate in the second year assuming the rental and property expenses have been stabilized. |
| Current stabilized cash on cash return: | Using unaudited management forecasts, the estimated cash on cash return in the second year assuming the rental and property expenses have been stabilized, and assuming either actual finance terms (where applicable), or else assuming an interest only loan of 40% of purchase price at 5% interest-only. |
