180-198 West Ponce de Leon AvenueDecatur (Atlanta), Georgia 30030
OFFERING MEMORANDUM
One West Court Square Two
Table of Contents
01 EXECUTIVE SUMMARY Investment Highlights Investment Profile
02 PROPERTY OVERVIEW Property Information Property Aerials Site Plan Area Map
04 MARKET OVERVIEW Decatur, Georgia Demographics
05 FINANCIAL OVERVIEW Cash Flow Projections Reimbursement Expenses Pro-Forma Lease Expiration Analysis
INVESTMENT SALES TEAM
JASON POWELL, CCIM Vice President, Investment Sales 770.913.3952 [email protected]
SHEA MEDDIN Vice President, Brokerage 770.913.3992 [email protected]
ACKERMAN & CO. 10 Glenlake Parkway South Tower, Suite 1000 770.913.3900 | ackermanco.com
03 TENANT OVERVIEW Tenant Overviews Rent Roll
This Offering Memorandum and any subsequent evaluation material you may be
provided (collectively known as the “Offering Memorandum”) is intended solely for your
limited use in considering whether to pursue negotiations to acquire One West Court
Square Two (the “Property”) located in Decatur, Georgia. The Property is being marketed
for sale by Ackerman & Co. (“Broker”).
The Offering Memorandum contains brief, selected information pertaining to the
business and affairs of the Property and has been prepared by Broker. It does not,
however, purport to be all-inclusive or to contain all of the information that a prospective
purchaser may desire. Broker makes no representation or warranty, express or implied,
as to the accuracy or completeness of the Offering Memorandum or any of its contents,
and no legal liability is assumed to be implied with respect thereto.
By acknowledgment of your receipt of the Offering Memorandum you agree that the
Offering Memorandum and its contents are confidential, that you will hold and treat it
in the strictest of confidence, that you will not directly or indirectly disclose, or permit
anyone else to disclose, the Offering Memorandum or its contents to any other person,
firm, or entity (including, without limitation, any principal for whom you have been
engaged), without prior written authorization of Owner or Broker and that you will not
use or permit to be used the Offering Memorandum or its contents to be copied or
used in any fashion or manner detrimental to the interest of Owner. Photocopy or other
duplication is strictly prohibited.
THE OFFERING MEMORANDUM SHALL NOT BE DEEMED TO REPRESENT THAT STATE
OF AFFAIRS OF THE PROPERTY OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN
NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE PROPERTY SINCE THE DATE OF
PREPARATION OF THE OFFERING MEMORANDUM.
The information provided in the Offering Memorandum has been gathered from
sources that are deemed reliable, but the Broker does not warrant or represent that
the information is true or correct. Prospective offerors are advised to verify information
independently. The Offering Memorandum is not to be construed as an offer or as any
part of a contract to sell the property.
Furthermore, the inclusion or exclusion in the Offering Memorandum of information
relating to asbestos or any other hazardous, toxic or dangerous chemical item, waste
or substance (hereinafter collectively referred to as “Waste”) relating to the Property
shall in no way be construed as creating any warranties or representations, expressed or
implied by the Broker as to the existence or nonexistence or nature of Waste in, under
or on the Property, it may create significant legal and/or economic obligations upon the
Owner, lessee and/or other holders of interest in the Property or a part thereof and you
are hereby advised to obtain professional assistance such as from a consultant, engineer
and/or attorney prior to taking an interest in the Property or a part thereof.
INFORMATION NOT WARRANTED
EXECUTIVE SUMMARY Investment Highlights Investment Profile
01
One West Court Square Two
5One West Court Square Two01 Executive Summary
One West Court Square TwoDecatur, Georgia 30030
Ackerman & Co’s Retail Investment Sales Team is pleased to exclusively present for sale a stabilized, retail strip center investment located in Decatur, GA (Atlanta).
Anchored by SunTrust and Chipotle, the 13,158-square-foot building is 100% leased and features a rent roll of three credit tenants. The property is located directly in the heart of Downtown Decatur, on the most prominent corner and in the center of the area’s major retail corridor, surrounded by retailers, o�ces and government buildings.
The property also features its own surface parking lot with more than 60 spaces, which is extremely rare for Downtown Decatur. The surrounding retail centers have sustained continually high occupancy rates due to the increasing amount of area growth, high o�ce and government building occupancy and heavy foot tra�c.
Investment Highlights
Proximity to Downtown Decatur – The subject property is located on the most prominent corner in Downtown Decatur and is less than one (1) mile from 12 major o�ce buildings where more than 10,000 daily employees work. DeVry University, with some 4,000 students, is also located just a couple hundred feet from the property.
INVESTMENT PROFILE
SQUARE FOOTAGE: 13,158 SF
ACREAGE: 1.1 acres
OFFERING PRICE: $8,320,000
DEBT STRUCTURE: Market, offered free and clear
RENT ESCALATIONS: Yes (see rent roll)
6One West Court Square Two01 Executive Summary
Stable Cash Flow with rent escalations – With 100% occupancy and multi-year lease terms, this asset should continue to provide an investor with stable cash flow. In addition, SunTrust has 2% annual base rental escalations, Cooks & Sherlock’s has 3% annual base rental escalations and Chipotle’s base rental escalates 10% in year 5. These escalations should provide a hedge against inflation and increase investor’s return.
Offered Free and Clear of Debt – This investment is offered free and clear of existing debt, thus enabling an investor to take advantage of low market interest rates available on new debt.
Mature Submarket – The subject property is surrounded by newer retail centers with high historical occupancy rates. The proximity to the downtown area and the lack of available land in the immediate area presents high barriers to entry with regard to competing retail tenants and developers entering the market.
Average Remaining Lease Term – The rent roll has limited amount of lease expiration exposure in the coming years. Both SunTrust and Chipotle (75.6% of NOI) have 10+ years of lease term remaining. The average remaining lease term on the current rent roll is approximately seven and a half (7.5) years.
Limited Mangerial Duties – With only three tenants, and 100% occupancy, this offering should require very minimal managerial work in the immediate future. Furthermore, the 2003 construction provides minimal exposure to capital expenditures.
Management / Admininstration fees – SunTrust has an annual management fee of 5% of all gross rental received in the entire Development ($29,056 in 2012) and Cooks has an annual 15% administrative fee on all expenses ($12,095 in 2012). This provides the Landlord with over $40,000 in additional income and should greatly exceed the cost of running/managing the property.
PROPERTY OVERVIEW Property Information Property Aerials Site Plan Area Map
02
One West Court Square Two
02 Property Overview One West Court Square Two 8
PROPERTY INFORMATION
ADDRESS: 180-198 West Ponce de Leon Avenue,Decatur, Georgia 30030
PARCEL ID: 15-0246-04-059
COUNTY: DeKalb
METRO MARKET: Atlanta
ZONING: C-2
BUILDING SIZE: 13,158 SF
LAND AREA: 1.10 Acres
YEAR BUILT: 2003
CONSTRUCTION: Brick
PARKING: Approximately 60 dedicated parking spaces
SIGNAGE: Large exterior building signage on three sides. Additional monument sign at Commerce Drive and Swanton Way
NUMBER OF SPACES: 3
NUMBER OF TENANTS: 3
OCCUPANCY: 100% One West Court Square TwoDecatur, Georgia 30030
02 Property Overview One West Court Square Two 9
PROPERTY AERIAL
DECATURHIGH SCHOOL
FOOTBALL FIELD
DEKALB COUNTYPARKS & REC.
DEKALB COUNTYWATER & SEWER
DEKALB COUNTYTAX ASSESSOR
DECATUR BOARD OF EDUCATION
PAID PARKING
PAID PARKING
DEKALB COUNTYSUPERIOR COURT
RESIDENTIAL
OFFICE
RESIDENTIAL
OFFICE
OFFICE
OFFICEOFFICE
E Ponce de Leon Ave
Com
merce D
r
Church St
Commerce DrN
McD
onough St
W Trinity Pl
E Trinity Pl
Raging BurritoIberian PigBrick Store PubEddie’s Attic
DECATUR SQUARE
HDecatur HospitalC
lairmont Ave
W Ponce de Leon Ave
OFFICEOFFICEOFFICEOFFICEOFFICEOFFICEOFFICEOFFICE
RESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALRESIDENTIALONE WEST COURT SQUARE TWO180-198 W PONCE DE LEON AVEDECATUR, GEORGIA 30030
VIEW OF DOWTOWN DECATUR
02 Property Overview One West Court Square Two 10
PROPERTY AERIALCLOSE-UP AERIAL VIEW OF THE SITE
RESIDENTIALOFFICE
RESIDENTIAL
PAID PARKING
CUSTOMER PARKING
PAID PARKING
DEKALB COUNTYWATER & SEWER
W Ponce de Leon Ave
Swanton Way
Com
mer
ce D
r
Cla
irmon
t Ave
PARKINGPARKINGPARKINGPARKINGPARKINGPARKINGPARKINGPARKING
CUSTOMERCUSTOMERCUSTOMERPARKINGPARKINGPARKING
Com
mer
ce D
rC
omm
erce
Dr
Com
mer
ce D
rC
omm
erce
Dr
ONE WEST COURT SQUARE TWO180-198 W PONCE DE LEON AVEDECATUR, GEORGIA 30030
1,958 SF 6,100 SF 5,100 SF
3 Chipotle To-Go Parking Spaces
Grease Receptacle
GLA OF CENTER 13,158 SQUARE FEET
Trash/Waste
W Ponce de Leon Avenue
Swanton Way
Co
mm
erce
Dri
ve
SunTrustDrive-Thru
02 Property Overview One West Court Square Two 11
SITE PLAN – GLA of Center 13,158 Square Feet
ATM
ATM
400
1923
78
19
278
278
2313
154
VirginiaHighland
North Decatur
NorthDruid Hills
Decatur
AvondaleEstates
Clarkston
WestPeachtree Battle
NorthAtlanta
Ponce De Leon Ave S College Ave
Memori
al Dr
S
Can
dler
St
Clifton Rd
Scott B
lvd
Mor
elan
d Av
e
Pi
edm
ont R
d
Lavis ta Rd
Buford
Hwy
C
lairm
ont R
d
Cartersville
McDonough
Covington
Oxford
Conyers
Loganville
Dacula
Sugar Hill
Buford
FloweryBranchCumming
Alpharetta
F U LT O N
D E K A L B
B A R T O WH A L L
Lawrenceville
DowntownAtlanta
C O B B
Kennesaw
Decatur
113
41
400
675
78
Source: 2012 MPSI Systems Inc. d.b.a. DataMetrix®
TRAFFIC COUNTS – 10,348 VPD (AVG)
WEST PONCE DE AVE AND COMMERCE DR
02 Property Overview One West Court Square Two 12
North DecaturNorth DecaturNorth Decatur
DecaturDecaturDecatur
Scott Blvd
ONE WEST COURT SQUARE TWO180-198 W PONCE DE LEON AVEDECATUR, GEORGIA 30030
AREA MAP
TENANT OVERVIEW Tenant Summaries Rent Roll
03
One West Court Square Two
03 Tenant Overview One West Court Square Two 14
TENANT SUMMARIES
SUNTRUST BANKS, INC. – www.suntrust.com
Founded in 1891 in Atlanta, GA, SunTrust Banks Inc. is one of the largest banks in the United States. The company has three different core business divisions: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. According to the most recent information from the United States Federal Reserve, SunTrust has over 1,665 branches and $172.5B billion in assets, making it the 17th largest financial institution in the United States. According to S&P Capital IQ, 29% of SunTrust’s total deposits come from the state of Georgia and 33% from the state of Florida. The SunTrust banking headquarters has remained in the founding city of Atlanta, GA. Since 2011, SunTrust has posted increasing revenue and earnings growth. As of 8/2013, SunTrust Banks Inc. holds a market capitalization of $18.98 billion and an S&P credit rating of BBB.
SunTrust Banks Inc. (NYSE: STI)S&P Rating: BBB Headquarters: Atlanta, GA Branch Locations: 1,665 Year Founded: 1891Employees: 26,778Market Capitalization: $18.98B (8/2013)
Chipotle Mexican Grill Inc. (NYSE: CMG)S&P Rating: NAHeadquarters: Denver, CO Store Locations: 1,410 Year Founded: 1993Employees: 37,310 Market Capitalization: $12.74B (8/2013)
CHIPOTLE MEXICAN GRILL, INC. – www.chipotle.com
Founded in 1993, Chipotle Mexican Grill Inc. owns and operates over 1,400 fast casual restaurants serving a menu of fresh Mexican cuisine. Originally established in Denver, Colorado, Chipotle now operates stores across the U.S., Canada, and parts of Europe. Chipotle has built a successful model by combining an attractive and appealing store with assembly line production and all natural ingredients. Chipotle has consistently outranked the competition in terms of quality and experience. In 2011, Consumer Reports ranked Chipotle as the best Mexican fast food chain. The company has continued to report strong earnings throughout their recent growth and expansion. Chipotle has posted increased year over year earnings dating back to 2003.
03 Tenant Overview One West Court Square Two 15
TENANT SUMMARIES, CONT.
THE COOK’S WAREHOUSE – www.cookswarehouse.com
Initially founded in 1995 in Atlanta, GA, The Cook’s Warehouse is an established gourmet cookware store and cooking school. They also sell high quality wine and beer. With four locations in a«uent parts of Atlanta: Midtown Atlanta, Brookhaven, Decatur, and East Cobb, The Cook’s Warehouse has established a successful business model offering Cooking classes, Cookware, Cutlery, Bakeware, Gourmet Coffee & Tea, Beer and Wine and other Cooking related products and services. They also offer a wide range of products through their online store and mail order catalog. The Cook’s Warehouse has gained national recognition as a retailer and a cooking school. In addition to other national publications, Creative Loafing has voted Cook’s as the “Best Place to Buy Kitchen Gadgets” 12 of the past 15 years, including 2012.
The Cook’s Warehouse (Private Company) S&P Rating: NA Headquarters: Atlanta, GAStore Locations: 4 Year Founded: 1995
03 Tenant Overview One West Court Square Two 16
RENT ROLL – as of January 1, 2014
TENANT NAME TYPE & SUITE NUMBER LEASE DATES & TERM
RENTABLE SF BLDG SHARE
RATE & AMOUNTPER YEAR
PER MONTH
CHANGES ON
CHANGESTO RENT ESCATLATIONS
DESCRIPTION OF OPERATING EXPENSEREIMBURSEMENTS
RENEWAL OPTIONS COMMENTS
SunTrust Banks, Inc. 190 West Ponce de Leon03.01.2014 - 02.29.2024*Tenant currently occupying - newly executed lease begins 03.01.2014
6,10046.36%
$47.50$289,750$24,145
Mar-2015Mar-2016Mar-2017Mar-2018Mar-2019Mar-2020Mar-2021Mar-2022Mar-2023
$48.48$49.42$50.41$51.42$52.44$53.49$54.56$55.65$56.77
Two percent (2%) annually beginning
03/01/2015
NN - Pro Rata Share None Landlord Obligations: Landlord shall keep the foundation, the roof and the exterior walls of the Premises (except (i) the ATM Facility and, (ii) subject to provisions, the Drive-Thru Facility,)
in good repair.
Tenant shall pay pro-rata share of all actual expenses. In addition, tenant shall reimburse owner five percent (5%) of total gross rents received from tenants in the development
as a management fee
Chipotle Mexican Grill, Inc. 198 West Ponce de Leon 01.01.2014 - 12.31.2023 *Tenant scheduled to complete build-out and open for business 01.01.2014
1,95814.88%
$42.25$82,725$6,893
Jan - 2019 $46.48 Ten percent (10%) increase in year five (5)
NN - Pro Rate Share Two (2) x Five (5) Year OptionsTen percent (10%) Rent Increases
Landlord Obligations: Landlord, at its sole cost and expense, shall maintain in good order, condition and repair (excluding
damage caused by Tenant), the life safety systems, if any, foundations, subflooring, footings, load bearing walls, all
unexposed plumbing, all structural elements of the Premises, all mechanical equipment not serving the Premises exclusively,
all heating ventilating and air conditioning equipment not serving the Premises exclusively, and the roof.
Tenant shall pay pro-rata share of expenses with the following exceptions: CAM will not increase by more than 5% per year
on a non-cumulative basis.
Tenant shall not be required to pay an administrative, management or other “mark-up” costs on such expenses.
CAM shall not include costs of capital expenditures.
The Cook’s Warehouse 180 West Ponce de Leon 01.01.2005 - 08.31.2016
5,10038.76%
$24.62$125,562$10,463
Sep-2014 Sep-2015
$25.36 $26.12
Three percent (3%) annual increses
NN - Pro-Rata Share None Landlord Obligations: Landlord shall, during the Term, keep, repair and maintain in good order and condition the following portions of the premises: the roof, exterior walls, foundation,
structural parts of the floor, any load-bearing structures, gutters and downspouts.
Tenant shall pay pro-rata share of expenses with a five percent (5%) annual cap on controllable expenses.
Total Occupied Square FeetTotal Available Square FeetTotal Property Square Feet
13,1580
13,158
100.0%0.00%
100.0%
MARKET OVERVIEW Decatur, Georgia Demographics
04
One West Court Square Two
04 Market Overview One West Court Square Two 18
DECATUR, GEORGIA
The city of Decatur has a traditional small-town atmosphere and the sophistication and excitement of a college town--along with all the benefits of living in a major metropolitan area. Decatur’s friendly neighbors, tree-lined streets, great schools, parks and playing fields, libraries, colleges, and businesses all make the town a wonderful place to spend some time. Decatur is just minute east of downtown Atlanta, minutes west of Stone Mountain, and the MARTA rail station is located under our downtown square, so getting there is easy.
Decatur’s O¨ce and Retail Market
Downtown Decatur consists of 12 major o�ce buildings (90,000 SF or larger), 10 mid-sized o�ce buildings (20,000 - 50,000 SF) and dozens of smaller ones (2,000 - 19,999 SF) as well as hundreds of retail stores, restaurants and bars.
Decatur has grown from a small market to a booming market over the past decade is now home to many national tenants, large businesses and houses many government agencies. Decatur is very much a self-sustainable retail market. Employees tend to only eat lunch at places they can walk to from their o�ce and night time diners tend to head to Decatur early for dinner before staying in and walking around the surrounding area for the rest of the night.
Downtown Decatur, Georgia
SELECT DECATUR RETAILERS AND RESTAURANTS
CVSAT&TMcDonald’sKrogerHoliday InnStarbucksFidelity BankBig Tex CantinaEddie’s AtticFarm BurgerFellini’s Pizza
FigoThe Iberian PigJ. Christopher’sLeon’s Full ServicePiece of CakeThe Pita PitRaging BurritoTaco MacTaqueria del SolTed’s Montana Grill
04 Market Overview One West Court Square Two 19
DECATUR, GEORGIA, CONT.
Decatur employees, primarily concentrated in the downtown commercial district, also represent an important demographic category in our community. Emory University, Agnes Scott College and DeKalb County are among our top employer groups with the professional and service sectors well represented. Demographics
The average household income in Decatur is $82,406 (Metro Atlanta is $76,883). The per capita income in Decatur is 31 percent higher than in Metro Atlanta. Twenty-one percent of the population is under 18. Twelve Percent is older than 65 and the median age of the population is 38 years old. The services and public administration industry sector comprise 82 percent of all jobs.
INCOME
DECATUR METRO ATLANTA U.S.
Average Household $82,406 $76,863 $66,670
Per Capita $37,130 $28,239 $25,495
INDUSTRY
DECATUR METRO ATLANTA
Retail Trade 7% 22%
Finance/Insurance/Real Estate 4% 8%
Services 29% 37%
Public Administration 53% 6%
Other 7% 27%
Source: Claritas, Market + Main, Inc., U.S. Census Bureau
04 Market Overview One West Court Square Two 20
DECATUR, GEORGIA, CONT.
Source: Claritas, Market + Main, Inc., U.S. Census Bureau
DETAILED DEMOGRAPHICS 1 MILE 3 MILES 5 MILES
2012 Population 14,561 100,480 310,285
2017 Projected Population 14,980 100,911 312,478
2000 Census Population 13,336 100,689 312,096
1990 Census Population 12,122 96,389 282,067
Growth 2000 - 2012 9.19% (0.21%) (0.58%)
Growth 2012 - 2017 2.88% 0.43% 0.71%
2012 Median Age 39.13 36.09 35.41
2012 Households 6,704 44,709 139,403
2017 Projected Households 6,899 45,196 142,690
2000 Census Households 6,168 42,940 130,470
1990 Census Households 5,804 39,639 116,247
Growth 2000 - 2012 8.69% 4.12% 6.85%
Growth 2012 - 2017 2.91% 1.09% 2.36%
2012 Average Household Size 2.09 2.13 2.13
2012 Median Household Income $59,522 $49,985 $48,506
2012 Average Household Income $82,371 $71,892 $69,458
2012 Per Capita Income $38,585 $32,330 $31,701
2012 Housing Units 6,704 44,709 139,403
2012 Owner Occupied Units 59.50% 56.77% 52.99%
2012 Renter Occupied Units 40.50% 43.23% 47.01%
FINANCIAL OVERVIEW Cash Flow Projections Projected Expenses Pro-Forma Lease Expiration Analysis
05
One West Court Square Two
05 Financial Overview One West Court Square Two 22
CASH FLOW PREDICTIONS – Fiscal Year | January 1, 2014
CALENDAR YEAR 2014 2015 2016[1] 2017 2018 2019 2020 2021 2022 2023
Potential Gross Revenue
Base Rental Income $499,295 $508,895 $518,724 $528,790 $539,097 $557,934 $568,743 $579,812 $591,147 $602,757
Miscellaneous Income $124,815 $127,312 $129,858 $132,454 $135,104 $137,805 $140,564 $143,374 $146,240 $149,165
GROSS SCHEDULED INCOME $624,110 $636,207 $648,582 $661,244 $674,201 $695,739 $709,307 $723,186 $737,387 $751,922
GROSS OPERATING INCOME $624,110 $636,207 $648,582 $661,244 $674,201 $695,739 $709,307 $723,186 $737,387 $751,922
Expenses
Building Insurance ($3,060) ($3,121) ($3,184) ($3,247) ($3,312) ($3,378) ($3,446) ($3,515) ($3,585) ($3,657)
Grounds Maintenance/Irrigation ($1,133) ($1,156) ($1,179) ($1,202) ($1,226) ($1,251) ($1,276) ($1,301) ($1,327) ($1,354)
General Maintenance/Repairs ($6,921) ($7,059) ($7,201) ($7,345) ($7,492) ($7,641) ($7,794) ($7,950) ($8,109) ($8,271)
Management Fees ($41,151) ($41,974) ($42,814) ($43,670) ($44,543) ($45,434) ($46,343) ($47,270) ($48,215) ($49,179)
Building Maintenance ($1,322) ($1,348) ($1,375) ($1,403) ($1,431) ($1,460) ($1,489) ($1,519) ($1,549) ($1,580)
Electrical Repairs ($340) ($347) ($354) ($361) ($368) ($375) ($383) ($391) ($398) ($406)
Tax Consulting Fees ($750) ($765) ($780) ($796) ($812) ($828) ($845) ($862) ($879) ($896)
Taxes - Real Estate ($55,245) ($56,350) ($57,477) ($58,626) ($59,799) ($60,995) ($62,215) ($63,459) ($64,728) ($66,023)
Garbage ($3,225) ($3,290) ($3,355) ($3,422) ($3,491) ($3,561) ($3,632) ($3,705) ($3,779) ($3,854)
Utilities ($2,423) ($2,471) ($2,521) ($2,571) ($2,623) ($2,675) ($2,729) ($2,783) ($2,839) ($2,896)
Landscaping ($5,926) ($6,045) ($6,165) ($6,289) ($6,414) ($6,543) ($6,674) ($6,807) ($6,943) ($7,082)
Misc. Admin Expense ($291) ($297) ($303) ($309) ($315) ($321) ($328) ($334) ($341) ($348)
Life Support System ($3,028) ($3,089) ($3,150) ($3,213) ($3,278) ($3,343) ($3,410) ($3,478) ($3,548) ($3,619)
TOTAL OPERATING EXPENSES ($124,815) ($127,312) ($129,858) ($132,454) ($135,104) ($137,805) ($140,564) ($143,374) ($146,240) ($149,165)
NET OPERATING INCOME $499,295 $508,895 $518,724 $528,790 $539,097 $557,934 $568,743 $579,812 $591,147 $602,757
NET CASH FLOW (b/t) $499,295 $508,895 $518,724 $528,790 $539,097 $557,934 $568,743 $579,812 $591,147 $602,757
Projected Cash on Cash Return (b/t) 6.00% 6.12% 6.23% 6.35% 6.48% 6.70% 6.83% 6.97% 7.10% 7.24%
*Estimated expenses to grow by 2% annually[1] Analysis assumes Cook’s renews their lease in 8.2016 with current escalation structure[1] Analysis assumes Cook’s renews their lease in 8.2016 with current escalation structure
05 Financial Overview One West Court Square Two 23
CAM Total (Reimburseable)Utilities $2,423Garbage $3,225General Maint & Repairs $6,921Irrigation $1,133Building Maintenance $1,322Life Support System $3,028Electrical Repairs $340Misc. Admin Expense $291Tax Consultant Fees $750
Management + Admin Fees $41,151($29,056 SunTrust &
$12,095 Cook’s)
Landscaping Contractor $5,926TOTAL $66,510
TaxesTOTAL $55,245
InsuranceTOTAL $3,060
One West Courst Square TwoOne West Courst Square TwoOne West Courst Square Two
SunTrust CAM (PRS) + Mgmt Fee*
$40,812
46.36% Taxes (PRS) $25,612Insurance (PRS) $1,418.62
Total Projected Expense Reimbursements $67,843
Cook’s Warehouse CAM** (PRS) + Admin Fee***
$21,924
38.76% Taxes (PRS) $21,413Insurance (PRS) $1,186.06
Total Projected Expense Reimbursements $44,523
Chipotle CAM**** (PRS) $3,77314.88% Taxes (PRS) $8,220
Insurance (PRS) $455.33Total Projected Expense
Reimbursements $12,449
Total Projected Expense Reimbursement (2014) $124,815
Total Projected Expense Reimbursement (2014) $124,815
* SunTrust pays 5% management fee on the total gross rents received from tenants in the Development** 5% annual Cap on controllable OPEX*** Cook’s pays 15% administration fee - Calculated at 15% of every category after mangement fee is removed**** CAM will not increase by more than 5% per year on a non-cumulative basis
PROJECTED EXPENSES
05 Financial Overview One West Court Square Two 24
TENANT BASE RENT EXPENSE REIMBURSEMENT ESTIMATES
SunTrust $289,750 $67,843Chipotle $82,716 $12,449Cooks & Sherlocks $126,820 $44,523TOTAL $499,286 $124,815
ANNUALIZED INCOME Actual
Gross Potential Rent $499,286 Reimbursements $124,815 Effective Gross Income $624,101 Less: Expenses ($124,815)
NET OPERATING INCOME $499,286
ANNUALIZED EXPENSES Actual 2012
Utilities $2,423 Garbage $3,225 General Maintenance Repairs $6,921 Irrigation $1,133 Building Maintenance $1,322 Life Support System $3,028 Electrical Repairs $340 Management Fees $41,151 Landscaping $5,926 Misc. Admin Expense $291 Tax Consulting Fees $750 Real Estate Taxes $55,245 Property Insurance $3,060
TOTAL EXPENSES $124,815
OFFERING PRICE: $8,320,000
PRO-FORMA
TENANT ANNUAL SCHEDULED INCOME – YEAR BEGINNING 01.01.2014
0
10%
20%
30%
40%
1 3 6 102 5 94 87 11YEAR
70%
80%
90%
100%
50%
60%
PERCENTAGE EXPIRED SPACE PERCENT OF EXPIRED BASE RENT
05 Financial Overview One West Court Square Two 25
LEASE EXPIRATION ANALYSIS
© 2013 Ackerman & Co. All rights reserved.
FOR MORE INFORMATION, PLEASE CONTACT:
JASON POWELL, CCIM Vice President, Investment Sales 770.913.3952 [email protected]
SHEA MEDDIN Vice President, Brokerage 770.913.3992 [email protected]