Exhibit 99 (c)(iii)
 | |
RESTRICTED APPRAISAL REPORT
Of
Assets and Liabilities of Cole Credit Property Trust, Inc.
As of
December 31, 2013
| Prepared For | Prepared by |
| Cole Credit Property Trust, Inc. | Duff & Phelps, LLC |
| Real Estate Valuation Services |
| The information contained herein is of a confidential nature and is intended for the exclusive use of the persons or firm to whom it is furnished by us. Reproduction, publication, or dissemination of portions hereof may not be made without prior approval of Duff & Phelps, LLC. |
| |
January 22, 2014
Mr. D. Kirk McAllaster, Jr.
EVP, CFO and Treasurer
Cole Credit Property Trust, Inc. (CCPT)
2325 E. Camelback Road, Suite 1100
Phoenix, Arizona 85016
| Re: | Valuation Services on CCPT’s assets and liabilities consisting of 39 Net Leased properties and mortgage debt. |
Dear Mr. McAllaster:
As you requested, we have discretely valued and completed estimations of the “as is” market values as of December 31, 2013 (the “Valuation Date”) for the properties identified below. We have also completed a valuation of the mortgages attached to these properties. The portfolio is comprised of 39 net-leased properties. Collectively, the properties identified below are known as the “Subject Properties.” In addition to the Subject Properties, we have reviewed and incorporated in our calculations CCPT’s balance sheet assets and liabilities that include short term assets and liabilities.
A list of the 39 properties is presented on the following page.
| |
Property List
| Tenant | Property Address | City | County | State | GLA | |||||
| Walgreens | 5202 Almeda Dr. | Houston | Harris | TX | 12,851 | |||||
| Walgreens | 400 West 23rd St. | Lawrence | Douglas | KS | 12,885 | |||||
| Rite Aid | 3060 Thomas St. | Memphis | Shelby | TN | 11,064 | |||||
| Rite Aid | 1560 Parkman Rd. NW | Warren | Trumbull | OH | 11,267 | |||||
| Walgreens | 1201 Camp Jackson Rd. | Cahokia | St. Clair | IL | 13,500 | |||||
| Walgreens | 15609 Lakeshore Blvd | Cleveland | Cuyahoga | OH | 13,500 | |||||
| Lowe’s | 2111 Fair Park Blvd. | Jonesboro | Craighead | AR | 126,405 | |||||
| Lowe’s | 3620 Emmett F Lowry Expy | Texas City | Galveston | TX | 130,497 | |||||
| CVS | 900 North J.K. Powell Blvd. | Whiteville | Columbus | NC | 10,055 | |||||
| Rite Aid | 713 Broadway | Bangor | Penobscot | ME | 13,100 | |||||
| Tractor Supply | 541 W. Reservoir Rd. | Woodstock | Shenandoah | VA | 22,670 | |||||
| Sherwin-Williams | 2375 West Prospect Rd. | Ashtabula | Ashtabula | OH | 5,400 | |||||
| Sherwin-Williams | 4040 South Ave. | Boardman | Mahoning | OH | 6,000 | |||||
| Sherwin-Williams | 1902 North Wayne St. | Angola | Steuben | IN | 5,010 | |||||
| Apria Healthcare | 7353 Company Dr. | Indianapolis | Marion | IN | 82,750 | |||||
| Gander Mountain | 19820 Hempstead Rd. | Houston | Harris | TX | 88,492 | |||||
| CVS | 20601 FM 1431 | Lago Vista | Travis | TX | 14,097 | |||||
| Rite Aid | 2460 George Washington Mem Hwy | Hayes | Gloucester | VA | 13,813 | |||||
| Rite Aid | 4010 Anderson Mill Rd. | Spartanburg | Spartanburg | SC | 13,824 | |||||
| Rite Aid | 6414 State Park Rd. | Travelers Rest | Greenville | SC | 13,813 | |||||
| CVS | 11115 East U.S. Hwy 24 | Independence | Jackson | MO | 10,908 | |||||
| Rite Aid | 1696 Middle Tennessee Blvd. | Murfreesboro | Rutherford | TN | 11,200 | |||||
| Rite Aid | 1334 Windrim Ave. | Philadelphia | Philadelphia | PA | 11,361 | |||||
| CVS | 603 South Cedar Ridge Dr. | Duncanville | Dallas | TX | 10,908 | |||||
| CineMagic Theatre | 2171 Superior Drive NW | Rochester | Olmsted | MN | 45,455 | |||||
| Rite Aid | 8130 Ohio River Rd. | Wheelersburg | Scioto | OH | 11,180 | |||||
| Tractor Supply | 5525 US HWY 60 W | Paducah | McCracken | KY | 21,677 | |||||
| Rite Aid | 1502 Executive Dr. | St. Marys | Auglaize | OH | 14,564 | |||||
| Tractor Supply | 3300 Veterans Outer Loop | Glasgow | Barren | KY | 21,688 | |||||
| Best Buy | 3040 N. Gloster St. | Tupelo | Lee | MS | 20,000 | |||||
| Conn’s | 747 NE Loop 820 | Hurst | Tarrant | TX | 25,230 | |||||
| Conn’s | 11101 Pecan Park Blvd. | Austin | Williamson | TX | 24,960 | |||||
| Conn’s | 2531 West Anderson Ln. | Austin | Travis | TX | 24,960 | |||||
| Vanguard Car Rental | 3600 Naturally Fresh Blvd. | College Park | Fulton | GA | 23,360 | |||||
| Rite Aid | 226 Parker Farm Rd. | Buxton | York | ME | 11,180 | |||||
| Tractor Supply | 5235 SW Topeka Blvd | Topeka | Shawnee | KS | 24,727 | |||||
| AutoZone | 958 North Bridge St | Yorkville | Kendall | IL | 7,381 | |||||
| Dollar General | 906 South Park Dr | Broken Bow | McCurtain | OK | 12,406 | |||||
| Sunoco | 1760 East Merritt Island Cswy | Merritt Island | Brevard | FL | 2,325 |
| |
The purpose of this appraisal is to estimate the “as is” market values of the leased fee interests of the Subject Properties owned by Cole Credit Property Trust, Inc. (CCPT) as of December 31, 2013 subject to the definition of market value, the general assumptions, special assumptions, limiting conditions, and the certification as set forth in the attached appraisal report. The report is intended for the use of CCPT’s Board of Directors to estimate a share value in order to assist fiduciaries of retirement plans and IRA trustees and custodians in preparing reports relating to investments in CCPT’s shares.
Our analyses, opinions and conclusions were developed, and this report has been prepared in conformity with a) the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute; b) the Uniform Standards of Professional Practice (“USPAP”); and c) subject to the attached Basic Assumptions and Limiting Conditions.
We note that our value conclusions are provided within a range for each property. Our table of individual property values provides a Low End, Mid-Point, and High End estimated market value. The detailed valuation assumptions and conclusions for the Mid-Point market value estimates are presented in the Addenda of this report. In order to estimate the Low End market value estimates we have applied an increase to the baseline individual overall capitalization or discount rates of 25 to 100 basis points. For the High End market value estimates we have applied decrease in the baseline individual overall capitalization or discount rates of 25 to 100 basis points. The total spread between the Low End and High End is approximately 9%.
Based upon the data and conclusions presented in the attached report, we have estimated the “as is” market values of the leased fee interests in the Subject Properties as of December 31, 2013 as follows:
| |
| Low End Estimated | Midpoint Estimated | High End Estimated | ||||||||||||||||
| Tenant | Property Address | City | State | Market Value | Market Value | Market Value | ||||||||||||
| Walgreens | 5202 Almeda Dr. | Houston | TX | $ | 2,580,000 | $ | 2,680,000 | $ | 2,780,000 | |||||||||
| Walgreens | 400 West 23rd St. | Lawrence | KS | $ | 3,090,000 | $ | 3,210,000 | $ | 3,330,000 | |||||||||
| Rite Aid | 3060 Thomas St. | Memphis | TN | $ | 2,330,000 | $ | 2,390,000 | $ | 2,450,000 | |||||||||
| Rite Aid | 1560 Parkman Rd. NW | Warren | OH | $ | 3,550,000 | $ | 3,670,000 | $ | 3,800,000 | |||||||||
| Walgreens | 1201 Camp Jackson Rd. | Cahokia | IL | $ | 1,950,000 | $ | 2,020,000 | $ | 2,100,000 | |||||||||
| Walgreens | 15609 Lakeshore Blvd | Cleveland | OH | $ | 2,400,000 | $ | 2,490,000 | $ | 2,590,000 | |||||||||
| Lowe’s | 2111 Fair Park Blvd. | Jonesboro | AR | $ | 10,370,000 | $ | 10,810,000 | $ | 11,290,000 | |||||||||
| Lowe’s | 3620 Emmett F Lowry Expy | Texas City | TX | $ | 12,050,000 | $ | 12,490,000 | $ | 12,950,000 | |||||||||
| CVS | 900 North J.K. Powell Blvd. | Whiteville | NC | $ | 2,980,000 | $ | 3,100,000 | $ | 3,240,000 | |||||||||
| Rite Aid | 713 Broadway | Bangor | ME | $ | 3,880,000 | $ | 4,010,000 | $ | 4,150,000 | |||||||||
| Tractor Supply | 541 W. Reservoir Rd. | Woodstock | VA | $ | 2,890,000 | $ | 2,980,000 | $ | 3,090,000 | |||||||||
| Sherwin-Williams | 2375 West Prospect Rd. | Ashtabula | OH | $ | 850,000 | $ | 880,000 | $ | 910,000 | |||||||||
| Sherwin-Williams | 4040 South Ave. | Boardman | OH | $ | 1,020,000 | $ | 1,060,000 | $ | 1,100,000 | |||||||||
| Sherwin-Williams | 1902 North Wayne St. | Angola | IN | $ | 1,230,000 | $ | 1,280,000 | $ | 1,330,000 | |||||||||
| Apria Healthcare | 7353 Company Dr. | Indianapolis | IN | $ | 5,190,000 | $ | 5,480,000 | $ | 5,780,000 | |||||||||
| Gander Mountain | 19820 Hempstead Rd. | Houston | TX | $ | 13,790,000 | $ | 14,510,000 | $ | 15,280,000 | |||||||||
| CVS | 20601 FM 1431 | Lago Vista | TX | $ | 6,050,000 | $ | 6,300,000 | $ | 6,580,000 | |||||||||
| Rite Aid | 2460 George Washington Mem Hwy | Hayes | VA | $ | 3,730,000 | $ | 3,960,000 | $ | 4,230,000 | |||||||||
| Rite Aid | 4010 Anderson Mill Rd. | Spartanburg | SC | $ | 4,590,000 | $ | 4,870,000 | $ | 5,200,000 | |||||||||
| Rite Aid | 6414 State Park Rd. | Travelers Rest | SC | $ | 4,220,000 | $ | 4,490,000 | $ | 4,790,000 | |||||||||
| CVS | 11115 East U.S. Hwy 24 | Independence | MO | $ | 3,980,000 | $ | 4,130,000 | $ | 4,280,000 | |||||||||
| Rite Aid | 1696 Middle Tennessee Blvd. | Murfreesboro | TN | $ | 2,520,000 | $ | 2,640,000 | $ | 2,770,000 | |||||||||
| Rite Aid | 1334 Windrim Ave. | Philadelphia | PA | $ | 3,450,000 | $ | 3,560,000 | $ | 3,680,000 | |||||||||
| CVS | 603 South Cedar Ridge Dr. | Duncanville | TX | $ | 3,390,000 | $ | 3,510,000 | $ | 3,640,000 | |||||||||
| CineMagic Theatre | 2171 Superior Drive NW | Rochester | MN | $ | 2,860,000 | $ | 3,000,000 | $ | 3,160,000 | |||||||||
| Rite Aid | 8130 Ohio River Rd. | Wheelersburg | OH | $ | 1,940,000 | $ | 2,010,000 | $ | 2,070,000 | |||||||||
| Tractor Supply | 5525 US HWY 60 W | Paducah | KY | $ | 2,150,000 | $ | 2,220,000 | $ | 2,300,000 | |||||||||
| Rite Aid | 1502 Executive Dr. | St. Marys | OH | $ | 2,880,000 | $ | 3,060,000 | $ | 3,260,000 | |||||||||
| Tractor Supply | 3300 Veterans Outer Loop | Glasgow | KY | $ | 2,490,000 | $ | 2,580,000 | $ | 2,670,000 | |||||||||
| Best Buy | 3040 N. Gloster St. | Tupelo | MS | $ | 2,630,000 | $ | 2,760,000 | $ | 2,900,000 | |||||||||
| Conn’s | 747 NE Loop 820 | Hurst | TX | $ | 2,490,000 | $ | 2,610,000 | $ | 2,750,000 | |||||||||
| Conn’s | 11101 Pecan Park Blvd. | Austin | TX | $ | 3,980,000 | $ | 4,180,000 | $ | 4,390,000 | |||||||||
| Conn’s | 2531 West Anderson Ln. | Austin | TX | $ | 3,690,000 | $ | 3,820,000 | $ | 3,960,000 | |||||||||
| Vanguard Car Rental | 3600 Naturally Fresh Blvd. | College Park | GA | $ | 12,150,000 | $ | 12,870,000 | $ | 13,650,000 | |||||||||
| Rite Aid | 226 Parker Farm Rd. | Buxton | ME | $ | 2,210,000 | $ | 2,280,000 | $ | 2,360,000 | |||||||||
| Tractor Supply | 5235 SW Topeka Blvd | Topeka | KS | $ | 2,440,000 | $ | 2,570,000 | $ | 2,700,000 | |||||||||
| AutoZone | 958 North Bridge St | Yorkville | IL | $ | 1,880,000 | $ | 1,950,000 | $ | 2,020,000 | |||||||||
| Dollar General | 906 South Park Dr | Broken Bow | OK | $ | 1,810,000 | $ | 1,870,000 | $ | 1,940,000 | |||||||||
| Sunoco | 1760 East Merritt Island Cswy | Merritt Island | FL | $ | 3,090,000 | $ | 3,200,000 | $ | 3,320,000 | |||||||||
| Total | $ | 150,770,000 | $ | 157,500,000 | $ | 164,790,000 | ||||||||||||
Accordingly, the aggregate “as is” market values of the leased fee interests in the Subject Properties as of December 31, 2013, would range from:
One Hundred Fifty Million Seven Hundred Seventy Thousand Dollars
$150,770,000
To
One Hundred Sixty Four Million Seven Hundred Ninety Thousand Dollars
$164,790,000
From the aggregate values of the individual Subject Properties, we have made adjustments to reflect balance sheet asset and liabilities and then calculated a range of Net Asset Value (NAV) of the portfolio based on the number of shares outstanding to the fund. This calculation is provided on the following page based on the balance sheet data and number of shares outstanding that were provided by CCPT.
| |
| Low End Estimated | Mid Point Estimated | High End Estimated | ||||||||||
| Market Value | Market Value | Market Value | ||||||||||
| Total of 39 Property Values | $ | 150,770,000 | $ | 157,500,000 | $ | 164,790,000 | ||||||
| Additional Assets | ||||||||||||
| Cash and cash equivalents | $ | 935,615 | $ | 935,615 | $ | 935,615 | ||||||
| Restricted cash | $ | 2,043,419 | $ | 2,043,419 | $ | 2,043,419 | ||||||
| Rents and tenant receivables, prepaid expenses and other assets | $ | 282,897 | $ | 282,897 | $ | 282,897 | ||||||
| Total Assets | $ | 154,031,931 | $ | 160,761,931 | $ | 168,051,931 | ||||||
| Liabilities | ||||||||||||
| Accounts payable and accrued expenses | $ | 245,497 | $ | 245,497 | $ | 245,497 | ||||||
| Accrued Interest | $ | 318,066 | $ | 318,066 | $ | 318,066 | ||||||
| Due to Affiliates | $ | 38,984 | $ | 38,984 | $ | 38,984 | ||||||
| Shareholder Distributions Payable | $ | 428,562 | $ | 428,562 | $ | 428,562 | ||||||
| Mortgages/Notes Payable Balance on 12/31/2013 | $ | 85,906,077 | $ | 85,906,077 | $ | 85,906,077 | ||||||
| Deferred Rental Income | $ | 516,871 | $ | 516,871 | $ | 516,871 | ||||||
| Adjustment of Debt to Market | $ | 2,694,704 | $ | 2,694,704 | $ | 2,694,704 | ||||||
| Total Liabilities | $ | 90,148,762 | $ | 90,148,762 | $ | 90,148,762 | ||||||
| Net Asset Value (NAV) | $ | 63,883,169 | $ | 70,613,169 | $ | 77,903,169 | ||||||
| Number of outstanding shares | 10,090,951 | 10,090,951 | 10,090,951 | |||||||||
| NAV Per Share | $ | 6.33 | $ | 7.00 | $ | 7.72 | ||||||
The following report contains a study and analysis of data and other material upon which our value conclusions have been predicated. Additional information is contained in our files.
Yours sincerely,
DRAFT
Duff & Phelps, LLC
THIS LETTER MUST REMAIN ATTACHED TO THE REPORT IN ITS ENTIRETY INCLUDING RELATED EXHIBITS, IN ORDER FOR THE VALUE OPINION(S) SET FOR TO BE CONSIDERED VALID.
| Cole Credit Properties Trust, Inc. | |
TABLE OF CONTENTS
| CERTIFICATION | 8 |
| GENERAL ASSUMPTIONS AND LIMITING CONDITIONS | 10 |
| EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS | 12 |
| APPRAISAL PROCESS | 13 |
| Definition of Value | 13 |
| Scope of Work | 13 |
| History of the Subject Properties | 14 |
| Identification of Type of Appraisal and Type of Report | 14 |
| Purpose and Intended Use of the Appraisal | 14 |
| Date of Opinion of Value | 14 |
| Exposure Time/Marketing Period | 15 |
| Highest and Best Use | 15 |
| VALUATION THEORY | 16 |
| INCOME CAPITALIZATION APPROACH | 17 |
| RECONCILIATION AND VALUE CONCLUSIONS | 23 |
| ADDENDA | 26 |
| EXHIBITS | 27 |
| 7 |
| Cole Credit Properties Trust, Inc. | |
CERTIFICATION
We certify that, to the best of our knowledge and belief:
| · | The statements of fact contained in this report are true and correct. |
| · | The reported analyses, opinions and conclusions are limited only by the reported assumptions and limiting conditions and is our personal, unbiased professional analyses, opinions and conclusions. |
| · | We have no present or prospective interest in the properties that are the subject of this report and no personal interest with respect to the parties involved. We have no bias with respect to the property that is the subject of this report or to the parties involved. |
| · | Our engagement in this assignment was not contingent upon developing or reporting predetermined results. |
| · | Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. |
| · | Our analyses, opinions, and conclusions were developed and this report has been prepared in conformity with the Uniform Standards of Professional Appraisal Practice (USPAP). |
| · | The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics & Standards of Professional Appraisal Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal Practice. |
| · | The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. |
| · | The Subject Properties were not inspected and the analysis has been completed on a desktop basis. |
| · | Megan Reichert and Michael Serposs provided significant real property appraisal assistance to the persons signing this certification. |
| · | We have not performed any services regarding the Subject Properties, as an appraiser or in any other capacity, within the past three years. |
| · | As of the date of this report, Megan Reichert, Jason T. Easterly, James P. Martin, Paul E. Sipala, and Krista M. Reed have completed the standards and ethics education requirement of the Appraisal Institute for Associate Members. |
| · | As of the date of this report, Michael A. Gibbs, MAI, Steven J. Kelley, MAI, and Michael S. Kendzior, MAI have completed the requirements of the continuing education program of the Appraisal Institute. |
| 8 |
| Cole Credit Properties Trust, Inc. | |
| DRAFT | DRAFT | |
| Michael A. Gibbs, MAI | Michael S. Kendzior, MAI | |
| Managing Director | Director | |
| state certified general real estate appraiser | Kentucky Certified General 000213 | |
| RZ0002222 Expiration: November 30, 2014 | Expiration: June 30, 2014 | |
| Kansas Certified General G-1218 | ||
| Expiration: June 30, 2014 | ||
| Ohio Certified General 391889 | ||
| Expiration: January 15, 2015 | ||
| DRAFT | DRAFT | |
| Jason T. Easterly | Krista Reed | |
| Director | Vice President | |
| Oklahoma Certified General 12985CGA | South Carolina Certified General CG 6988 | |
| Expiration: December 31, 2015 | Expiration: June 30, 2014 | |
| Arkansas Certified General CG3799 | North Carolina Certified General A7681 | |
| Expiration: November 7, 2014 | Expiration: June 30, 2014 | |
| Texas Certified General TX-1338747-G | Tennessee Certified General 00004837 | |
| Expiration: December 31, 2015 | Expiration: January 31, 2015 | |
| Georgia Certified General GA-1058 | ||
| Expiration: July 31, 2014 | ||
| DRAFT | DRAFT | |
| Steven J. Kelley, MAI | Paul E. Sipala | |
| Vice President | Director | |
| Illinois Certified General 553.000853 | Pennsylvania Certified General GA 003718 | |
| Expiration: September 30, 2015 | Expiration: June 30, 2015 | |
| Indiana Certified General CG41300013 | Virginia Certified General #4001 014054 | |
| Expiration: June 30, 2014 | Expiration: December 31, 2014 | |
| Minnesota Certified General 40365066 | ||
| Expiration: August 31, 2015 | ||
| Missouri Certified General 2013044070 | ||
| Expiration: June 30, 2014 | ||
| DRAFT | ||
| James P. Martin | ||
| Director | ||
| Maine Certified General CG 3241 | ||
| Expiration: December 31, 2014 |
| 9 |
| Cole Credit Properties Trust, Inc. | |
GENERAL ASSUMPTIONS AND LIMITING CONDITIONS
This appraisal report is subject to the following general assumptions and limiting conditions:
| 1. | No investigation has been made of, and no responsibility is assumed for, the legal description or for legal matters including title or encumbrances. Title to the property is assumed to be good and marketable unless otherwise stated. The property is further assumed to be free and clear of liens, easements, encroachments and other encumbrances unless otherwise stated, and all improvements are assumed to lie within property boundaries. |
| 2. | Information furnished by others, upon which all or portions of this report are based, is believed to be reliable, but has not been verified in all cases. No warranty is given as to the accuracy of such information. |
| 3. | It is assumed that all required licenses, certificates of occupancy, consents, or other legislative or administrative authority from any local, state, or national government or private entity or organization have been, or can readily be obtained, or renewed for any use on which the value estimates provided in this report are based. |
| 4. | Full compliance with all applicable federal, state and local zoning, use, occupancy, environmental, and similar laws and regulations is assumed, unless otherwise stated. |
| 5. | No responsibility is taken for changes in market conditions and no obligation is assumed to revise this report to reflect events or conditions, which occur subsequent to the appraisal date hereof. |
| 6. | Responsible ownership and competent property management are assumed. |
| 7. | The allocation, if any, in this report of the total valuation among components of the property applies only to the program of utilization stated in this report. The separate values for any components may not be applicable for any other purpose and must not be used in conjunction with any other appraisal. |
| 8. | Areas and dimensions of the property were obtained from sources believed to be reliable. Maps or sketches, if included in this report, are only to assist the reader in visualizing the property and no responsibility is assumed for their accuracy. No independent surveys were conducted. |
| 9. | It is assumed that there are no hidden or unapparent conditions of the property, subsoil, or structures that affect value. No responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them. |
| 10. | No soil analysis or geological studies were ordered or made in conjunction with this report, nor was an investigation made of any water, oil, gas, coal, or other subsurface mineral and use rights or conditions. |
| 11. | Neither Duff & Phelps, LLC nor any individuals signing or associated with this report shall be required by reason of this report to give further consultation, to provide testimony or appear in court or other legal proceedings, unless specific arrangements thereto for have been made. |
| 12. | This appraisal has been made in conformance with, and is subject to, the requirements of the Code of Professional Ethics and Standards of Professional Conduct of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice. |
| 13. | We have not been engaged nor are we qualified to detect the existence of hazardous material, which may or may not be present on or near the property. The presence of potentially hazardous substances such as asbestos, urea-formaldehyde foam insulation, industrial wastes, etc. may affect the value of the property. The value estimate herein is predicated on the assumption that there is no such material on, in, or near the property that would cause a loss in value. No responsibility is assumed for any such conditions or for any expertise or engineering knowledge required to discover them. The client should retain an expert in this field if further information is desired. |
| 10 |
| Cole Credit Properties Trust, Inc. | |
| 14. | The date of value to which the conclusions and opinions expressed in this report apply is set forth in the opinion letter at the front of this report. Our value opinion is based on the purchasing power of the United States’ dollar as of this date. |
| 15. | The Americans with Disabilities Act (“ADA”) became effective January 26, 1992. We have not made a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey of the property along with a detailed study of ADA requirements could reveal that the property is not in compliance with the act. If so, this would have a negative effect on the property value. We were not furnished with any compliance surveys or any other documents pertaining to this issue and therefore did not consider compliance or noncompliance with the ADA requirements when estimating the value of the property. |
| 16. | In accordance with our agreement, this report is limited to the value of the subject property. One or more additional issues may exist that could affect the Federal tax treatment of the subject property with respect to which we have prepared this report. This report does not consider or provide a conclusion with respect to any of those issues. With respect to any significant Federal tax issue outside the scope of this report, this report was not written, and cannot be used, by anyone for the purpose of avoiding Federal tax penalties. |
| 11 |
| Cole Credit Properties Trust, Inc. | |
EXTRAORDINARY ASSUMPTIONS AND HYPOTHETICAL CONDITIONS
When a value opinion is subject to an extraordinary assumption or hypothetical condition, the appraiser must state that condition so that its effect on the value opinion or conclusion is clear. An extraordinary assumption is an assumption that is directly related to a specific assignment, which if found to be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal, or economic characteristics of the subject property; or about conditions external to the property such as market conditions or trends; or about the integrity of data used in an analysis. An extraordinary assumption may be used in an assignment only if:
| · | It is required to properly develop credible opinions and conclusions; |
| · | The appraiser has a reasonable basis for the extraordinary assumption; |
| · | Use of the extraordinary assumption results in a credible analysis; and |
| · | The appraiser complies with the disclosure requirements set forth in USPAP for extraordinary assumptions. |
Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition may be used in an assignment only if:
| · | Use of the hypothetical condition is clearly required for legal purposes, for purposes of reasonable analysis, or for purposes of comparison; |
| · | Use of the hypothetical condition results in a credible analysis; and |
| · | The appraiser complies with the disclosure requirements set forth in USPAP for hypothetical conditions. |
This appraisal is not report is subject to any hypothetical conditions. This appraisal is subject to the following extraordinary assumption:
| · | For the purposes of our analysis, we assume that the current in place lease will be paid through the original term. We reserve the right to amend our analysis if any of the lease payments are discontinued. |
| 12 |
| Cole Credit Properties Trust, Inc. | |
APPRAISAL PROCESS
Definition of Value
Market value -Market value means the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
| 1. | buyer and seller are typically motivated; |
| 2. | both parties are well informed or well advised and acting in what they consider their own best interests; |
| 3. | a reasonable time is allowed for exposure in the open market; |
| 4. | payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto;and |
| 5. | the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.1 |
Leased Fee – An ownership interest held by a landlord with the rights of use and occupancy conveyed by a lease to others. The rights of the lessor (the leased fee owner) and the leased fee are specified by contract terms contained within a lease.
Scope of Work
We have identified the problem based on the client and intended users, intended use of the appraiser’s opinions and conclusions, type and definition of value, effective date of the appraiser’s opinions and conclusions, subject of the assignment and its relevant characteristics, and assignment conditions and have conducted the appropriate scope of work and consider it to be sufficient to produce credible assignment results. Our scope in valuing the Subject Properties included the following:
| · | We reviewed and relied upon Company provided data regarding the size, year built, construction quality, and construction type to understand the characteristics of the existing improvements and underlying land; |
| · | We reviewed and relied upon Company provided data regarding lease summaries, real estate taxes, and operating expense data; |
| · | We reviewed and relied upon Company provided balance sheet items such as cash and other assets as well as debt and other liabilities; |
| · | We reviewed and relied upon Company provided mortgage summarizes and amortization schedules; |
| · | We researched the market by means of publications and other resources to measure current market conditions, supply and demand factors, and growth patterns and their effect on the subject properties; |
| · | We have utilized standard and accepted appraisal methodology in arriving at our opinions of Market Value, and applied only the most appropriate valuation techniques amongst the cost, income capitalization and sales comparison approaches to value. Based upon the highest and best use of the Subject Properties, we have considered the Income Capitalization Approach as our primary indicator of value. We have analyzed operating expense data, market indicators, and we have attempted to speak with buyers, sellers, real estate brokers, real estate developers, appraisers, and public officials to confirm the data as it pertains to the Subject Properties in this appraisal assignment. We have utilized this data in our direct capitalization and discounted cash flow methods of analysis. We have also utilized a Sales Comparison Approach as a secondary approach to value. This approach was primarily used to test our income approaches for reasonableness. A Cost Approach was not utilized as market participants do not rely on this approach in estimating market value in regard to the Subject Properties. |
1 Appraisal Foundation,USPAP 2012-2013,this example definition is from regulations published by federal regulatory agencies pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) of 1989 between July 5, 1990, and August 24, 1990, by the Federal Reserve System (FRS), National Credit Union Administration (NCUA), Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the Office of Comptroller of the Currency (OCC). This definition is also referenced in regulations jointly published by the OCC, OTS, FRS, and FDIC on June 7, 1994, and in the Interagency Appraisal and Evaluation Guidelines, dated October 27, 1994.
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| · | We note that our value conclusions are provided within a range for each property. Our table of individual property values provides a Low End, Mid-Point, and High End estimated market value. The detailed valuation assumptions and conclusions for the Mid-Point market value estimates are presented in the Addenda of this report. In order to estimate the Low End market value estimates we have applied an increase to the baseline individual overall capitalization or discount rates of 25 to 100 basis points. For the High End market value estimates we have applied decrease in the baseline individual overall capitalization or discount rates of 25 to 100 basis points. |
| · | Additionally, for 12 of the properties we have completed two valuation scenarios based on pending lease renegotiation that is taking place at these 12 properties. In these instances we have valued these properties based on the current in place leases in Scenario 1 as well as the renegotiated leases (with reduced rents) in Scenario 2. We have used lower discount rates for Scenario 2 as these extend the leases and lower rents. The difference between the scenarios is generally modest; however, when there is a difference in the two scenarios we have utilized the mid-point of the Scenario 1 and Scenario 2 conclusions to arrive at our Mid-Point market value estimates. |
| · | We have provided valuation reports in a Restricted Report format as defined by Standard Rule 2-2 (b) of the Uniform Standards of Professional Appraisal Practice indicating our estimates of value for the Subject Properties. |
History of the Subject Properties
Sales history information can be found in the summary of salient facts presented for each of the Subject Properties. For the properties that have sold in the last three years, the transactions were considered to be at or near market levels at the time of their transactions. To the best of our knowledge, none of the Subject Properties are currently under contract for sale or listed for sale.
Identification of Type of Appraisal and Type of Report
A general outline of our scope of work is presented previously and includes the preparation of an appraisal report in a Restricted Appraisal Report format that complies with Standards Rule 2-2(b) of USPAP. The analysis and conclusions set forth in the report may not be understood properly without additional information contained in our work files.
Purpose and Intended Use of the Appraisal
The purpose of this appraisal is to estimate the “as is” market values of the leased fee interests of the Subject Properties as of December 31, 2013 subject to the definition of market value, the general assumptions, special assumptions, limiting conditions, and the certification as set forth in the attached appraisal report. The intended use of this appraisal is for internal reporting purposes. The report is intended for the use of Cole Credit Properties Trust, Inc.
Date of Opinion of Value
The effective date of value is December 31, 2013.
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Exposure Time/Marketing Period
Exposure time is defined by USPAP as follows:
The estimated length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at market value on the effective date of the appraisal; a retrospective opinion based upon an analysis of past events assuming a competitive and open market.
We have estimated the exposure and marketing time for each of the Subject Properties in the portfolio. These estimates are provided in the Summary of Salient Facts, which can be found in the Addenda of this report.
Highest and Best Use
As defined by the Appraisal Institute inThe Dictionary of Real Estate Appraisal, 5th edition, “highest and best use” is:
The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are:
- Legal Permissibility
- Physical Possibility
- Financial Feasibility
- Maximum Productivity
The above definition of highest and best use applies to use of a site as though vacant, as well as to the property as improved. When a site contains improvements, the highest and best use may be determined to be different from the existing use. The existing use will continue unless and until the land value in its highest and best use exceeds the sum of the value of the entire property in its existing use plus the cost to remove the improvements.
The highest and best use was determined for each of the Subject Properties and can be found in the Summary of Salient Facts in the Addenda of this report.
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VALUATION THEORY
In traditional valuation theory, the three approaches to estimating the value of an asset are the Cost Approach, Sales Comparison Approach, and Income Capitalization Approach. Each approach assumes valuation of the property at the properties highest and best use. From the indications of these analyses, an opinion of value is reached based upon expert judgment within the outline of the appraisal process. In this analysis, we have considered the income approach as our primary indicator of value, with secondary consideration given to a survey of comparable sales data.
Sales Comparison Approach
The sales comparison approach estimates value based on what other purchasers and sellers in the market have agreed to as price for comparable improved properties. This approach is based upon the principle of substitution, which states that the limits of prices, rents, and rates tend to be set by the prevailing prices, rents, and rates of equally desirable substitutes.
Income Capitalization Approach
The income capitalization approach simulates the reasoning of an investor who views the cash flows that would result from the anticipated revenue and expense on a property throughout its lifetime. The net income developed in our analysis is the balance of potential income remaining after vacancy and collection loss, and operating expenses. This net income is then capitalized at an appropriate rate to derive an estimate of value or discounted by an appropriate yield rate over a typical projection period in a discounted cash flow analysis. Thus, two key steps are involved: (1) estimating the net income applicable to the subject and (2) choosing appropriate capitalization rates and discount rates. The appropriate rates are ones that will provide both a return on the investment and a return of the investment over the life of the particular property.
Correlation and Conclusion
Each appraisal approach to value is utilized to as a check to the other. Inherent in each is an interpretation of market conditions as they affect the subject property. The quality and the quantity of the data in each approach are considered, along with the relevance of each to the property. For this analysis, we have considered the income approach as our primary indication of value. We have additionally gathered comparable sales throughout the various subject markets as secondary support for our value estimate. Details of these sales can be found in the Addenda of this report.
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INCOME CAPITALIZATION APPROACH
The income capitalization approach is based on the premise that value is created by the expectation of future benefits. We estimated the present value of those benefits to derive an indication of the amount that a prudent, informed purchaser-investor would pay for the right to receive them as of the valuation date.
This approach requires an estimation of the net operating income of a property. The estimated net operating income is then converted to a value indication by use of either the direct capitalization method or the discounted cash flow analysis.
The discounted cash flow (“DCF”) analysis focuses on the operating cash flows expected from the property and the anticipated proceeds of a hypothetical sale at the end of an assumed holding period. These amounts are then discounted to their present value. The discounted present values of the income stream and the reversion are added to obtain a value indication. Because benefits to be received in the future are worth less than the same benefits received in the present, this method weights income projected in the early years more heavily than the income and the sale proceeds to be received later.
Direct capitalization uses a single year's stabilized net operating income as a basis for a value indication. It converts estimated “stabilized” annual net operating income to a value indication by dividing the income by a capitalization rate. The rate chosen includes a provision for recapture of the investment and should reflect all factors that influence the value of the property, such as tenant quality, property condition, neighborhood change, market trends, interest rates and inflation. The rate may be inferred from local market transactions or, when transaction evidence is lacking, obtained from trade sources.
In some situations, both methods yield similar results. The DCF method is more appropriate for the analysis of investment properties with multiple leases particularly leases with cancellation clauses or renewal options, and especially in volatile markets. The direct capitalization method is normally more appropriate for properties with relatively stable operating histories and expectations.
For our analysis, we have utilized the discounted cash flow approach for the Subject Properties that required two valuation scenarios (12 properties) as well as properties that have lease expiration within the next 10 years. Investors typically focus on a direct capitalization method when analyzing single-tenant net-leased properties that have extended term remaining (10+ years). As such, we have utilized the direct capitalization method for properties with 10+ years remaining on their leases and discounted cash flow models for the remaining properties.
Leased Status of the Subject Properties
We were not provided with actual lease documents; however, we have been provided rent rolls/lease abstracts for each property that were completed by our client. The Subject Properties are encumbered by net leases (NN and NNN). All leases are net of operating expenses (CAM) and real estate taxes but only the NNN leases require tenants to pay for structural repairs (parking lots, roof, etc.).
Contractual renewal options were indicated in many of the lease summaries. Fixed rate renewal options were tested against prevailing market rates at the time they would be exercised to determine if any of the renewal options were significantly below market rates, which would be economically compelling to the tenant to exercise the option. The options have been analyzed on a case-by-case basis with those having below market options being modeled as though they will be exercised. The options that were considered to be below market levels at the time of execution are indicated on the individual property summary sheets presented in the addenda of this report.
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Market Rent Analysis
The factors we considered in determining market rental rates were:
| · | Current contract rent levels at the Subject Properties |
| · | Recently signed leases at the Subject Properties |
| · | Asking rates at competitive properties |
| · | Current contract rents and recently signed leases at comparable properties |
Market Rent Estimate
The market rental rates for the Subject Properties were estimated from market data that was gathered specific to each of the Subject Properties. Market rental rates include escalations as estimated based on our research. Our market rental rate estimates are based a net effective rate; thus, additional concessions have not been applied.
Any leases that were recently signed were also considered in our analysis of a market rent estimate.
We note that some of the in place leases were determined to be above market levels. For the purposes of our analysis, we assume that the current in place lease will be paid through the original term. We reserve the right to amend our analysis if any of the lease payments are discontinued.
Reimbursements
The Subject Properties operate under double net (NN) and triple net (NNN) leases. All leases are net of operating expenses (CAM) and real estate taxes but only the NNN leases require tenants to pay for structural repairs (parking lots, roof, etc.). All future speculative leases have been modeled on a NN basis with the landlord being responsible for structural repairs via a reserve allowance.
Vacancy and Collection Loss
General vacancy and collection loss has not been applied in our analysis. As these are single-tenant net leased properties, market participants typically do not apply vacancy or collection loss. The risk of vacancy or collection losses is accounted for in the discount and capitalization rate assumptions.
Expense Analysis
In estimating operating expenses for the Subject Properties, we have relied upon historical and projected real estate taxes provided by property management. In the absence of sufficient historical or projected operating expenses at the property level, market data, such as expense levels at comparable properties or survey data, was utilized in order to estimate operating expenses. Each item of expense was analyzed, and we developed an opinion of a level of expense we believe a typical investor would consider reasonable. We have made our expense projections of a calendar basis beginning January 1, 2014.
Capital Improvements
CCPT has provided us with a schedule of planned capital expenditures that have been modeled in our property specific cash flow models. Reserves for replacement have been included in our analysis based on the structure of the lease. For example, in absolute triple net (NNN) lease structures, where the Lessor has no capital responsibilities, the reserve has been modeled; however, it is reimbursed by the tenant. Reserves for double net (NN) lease structures have been modeled as non-reimbursable. The amount of the reserve is based on property type and condition.
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Operating Statement
In estimating the Subject Properties’ pro forma operating cash flow, the operating history and budgets have been analyzed, as appropriate. Details of this analysis can be found in the Addenda of this report.
Direct Capitalization Method
As discussed previously, we have completed a direct capitalization method of analysis for the Subject Properties that have 10+ years of lease term remaining. The steps involved in capitalizing the subject's net operating income are as follows:
| · | Develop the subject's Potential Gross Income (PGI) through analysis of the subject’s actual historic income and an analysis of competitive current market income rates. |
| · | Estimate and deduct vacancy and collection losses from PGI to develop the Effective Gross Income (EGI). |
| · | Develop and subtract operating expenses from EGI to derive the Net Operating Income (NOI). |
| · | Develop the appropriate going-in or overall capitalization rate (Ro). |
| · | Divide the net operating income by the capitalization rate for an estimate of value through the direct capitalization approach |
Capitalization Rate
The capitalization rate is the factor that coverts the stabilized net operating income (NOI) to a present value. It is the ratio of net income to value or sale price.
NOI ÷ Sale Price = Capitalization Rate
For example, if a property sells for $500,000, and has a stabilized NOI of $50,000, the indicated capitalization rate is 10%.
We have considered market extracted overall capitalization rates, overall capitalization rates extracted from investor surveys, the Band of Investments, and the Debt Service Coverage ratio techniques in developing an overall capitalization rate conclusion.
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Discounted Cash Flow Method
As discussed previously, we have completed a discounted cash flow method of analysis for the Subject Properties that have less than 10 years of lease term remaining or are in negotiation with CCPT to alter their rent/lease term. The discounted cash flow method involves the following steps:
| · | Estimate the subject’s Potential Gross Income (PGI) through an analysis of the subject’s actual historic income and an analysis of competitive market rental rates. |
| · | Estimate and deduct vacancy and collection losses from PGI to develop the Effective Gross Income (EGI). |
| · | Develop and subtract operating expenses from EGI to derive the Net Operating Income (NOI). |
| · | Estimate and deduct capital costs (i.e., tenant improvements, leasing commissions, capital repairs and replacements) from the NOI to derive the cash flow. |
| · | Develop the appropriate discount (Yo) and terminal capitalization rate (Rt). |
| · | Convert the cash flow and reversion into present value using the discount rate (Yo). |
In applying the DCF technique, we estimated the operating results over a hypothetical stabilized holding period and assumed the property would be sold at the end of following year for a price calculated by capitalizing the projected following year's net income. The cash flows were then discounted at a rate reflective of current market conditions, bearing in mind the investment characteristics of the property.
Discounted Cash Flow Assumptions, Forecast, and Conclusion
Exhibits can be found in the Addenda detailing the assumptions applied in the discounted cash flow analysis for each of the Subject Properties.
Capitalization Rate
The capitalization rate is the factor that converts the stabilized net operating income (NOI) to a present value. It is the ratio of net income to value or sale price.
NOI ÷ Sale Price = Capitalization Rate
The following exhibit details national overall capitalization rates extracted from the PwC Real Estate Investor Survey as of the 4th Quarter 2013.
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| Overall Capitalization Rate: Real Estate Publications | ||||||||||||||||||||
| Survey | Quarter | Year | Location | Market | Low | High | Average | |||||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Net Lease | 6.00 | % | 8.50 | % | 7.10 | % | ||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Retail Net Lease (Asking) | 7.02 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Retail Net Lease (Closed) | 7.24 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Drug Store Net Lease | 6.00 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Walgreens Net Lease (Asking) | 6.13 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Walgreens Net Lease (Closed) | 6.20 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | CVS Net Lease (Asking) | 6.00 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | CVS Net Lease (Closed) | 6.20 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Rite Aid Net Lease (Asking) | 8.10 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Rite Aide Net Lease (Closed) | 8.36 | % | ||||||||||||||
| Boulder Net Lease | 4th Quarter | 2012 | National | Auto Parts Store Net Lease | 6.53 | % | ||||||||||||||
| Boulder Net Lease | 4th Quarter | 2012 | National | AutoZone Net Lease (Asking) | 6.50 | % | ||||||||||||||
| Boulder Net Lease | 4th Quarter | 2012 | Midwest | Auto Parts Store Net Lease (Asking) | 7.00 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Dollar Store Net Lease | 7.75 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Dollar General Net Lease (Asking) | 7.62 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | National | Dollar General Net Lease (Closed) | 7.81 | % | ||||||||||||||
| Boulder Net Lease | 3rd Quarter | 2013 | South | Dollar General Net Lease (Asking) | 7.50 | % | ||||||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Flex/R&D | 6.25 | % | 10.00 | % | 7.83 | % | ||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Warehouse | 5.00 | % | 7.75 | % | 6.22 | % | ||||||||||
| RERC | 3rd Quarter | 2013 | Indianapolis | Flex | 8.00 | % | ||||||||||||||
| RERC | 3rd Quarter | 2013 | Indianapolis | Warehouse | 7.60 | % | ||||||||||||||
Capitalization rates were concluded for each of the Subject Properties independently of one another. Additional survey data, as well as capitalization rates from comparable sales, can be found in the Addenda.
Terminal Capitalization Rate
The terminal capitalization rate, or residual capitalization rate, is applied at the end of the holding period in order to estimate the reversionary value. The following exhibit details national terminal capitalization rates extracted from the PwC Real Estate Investor Survey as of the 4th Quarter 2013, as well as the indicated spread over the OAR.
| Terminal Capitalization Rate: Real Estate Publications | ||||||||||||||||||||
| Survey | Quarter | Year | Location | Market | Low | High | Average | |||||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Net Lease | 7.00 | % | 9.00 | % | 8.13 | % | ||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Flex/R&D | 6.75 | % | 10.00 | % | 7.95 | % | ||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Warehouse | 8.50 | % | 8.50 | % | 6.76 | % | ||||||||||
| RERC | 3rd Quarter | 2013 | Indianapolis | Flex | 8.70 | % | ||||||||||||||
| RERC | 3rd Quarter | 2013 | Indianapolis | Warehouse | 8.30 | % | ||||||||||||||
Additional survey data, and our conclusion of rates for each of the Subject Properties, can be found in the Addenda.
Discount Rate
The following exhibit details national discount rates extracted from the PwC Real Estate Investor Survey as of the 4th Quarter 2013, as well as the indicated spread over the OAR.
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| Discount Rate: Real Estate Publications | ||||||||||||||||||||
| Survey | Quarter | Year | Location | Market | Low | High | Average | |||||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Net Lease | 7.00 | % | 9.00 | % | 7.94 | % | ||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Flex/R&D | 7.50 | % | 12.00 | % | 8.95 | % | ||||||||||
| PwC Investor Survey | 4th Quarter | 2013 | National | Warehouse | 5.75 | % | 9.25 | % | 7.34 | % | ||||||||||
| RERC | 3rd Quarter | 2013 | Indianapolis | Flex | 9.50 | % | ||||||||||||||
| RERC | 3rd Quarter | 2013 | Indianapolis | Warehouse | 8.90 | % | ||||||||||||||
Discount rates were estimated for individual properties. We note that several have above market rents and in these instances we have accounted for above market rents in the discount rate selections.
Additional survey data, and our conclusion of rates for the Mid-Point values for each of the Subject Properties, can be found in the Addenda.
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RECONCILIATION AND VALUE CONCLUSIONS
The process of reconciliation involves the analysis of each approach to value. The quality of data applied, the significance of each approach as it relates to market behavior and defensibility of each approach are considered and weighed.
In the valuation of the Subject Properties, we have considered the income approach as our primary indicator of value. Buyers and sellers often compare the income streams at the each of the Subject Properties against those of similar properties. For income-producing properties, such as the Subject Properties, this approach is considered to be the most comprehensive and accurate in developing an estimate of market value.
In addition to the income approach, we have compiled relevant comparable sales data in order to provide secondary support for our value estimate.
Based upon the data and conclusions presented, we have estimated the “as is” market values of the leased fee interests in the Subject Properties as of December 31, 2013 are presented on the following page.
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| Low End Estimated | Midpoint Estimated | High End Estimated | ||||||||||||||||||
| Tenant | Property Address | City | State | Market Value | Market Value | Market Value | ||||||||||||||
| Walgreens | 5202 Almeda Dr. | Houston | TX | $ | 2,580,000 | $ | 2,680,000 | $ | 2,780,000 | |||||||||||
| Walgreens | 400 West 23rd St. | Lawrence | KS | $ | 3,090,000 | $ | 3,210,000 | $ | 3,330,000 | |||||||||||
| Rite Aid | 3060 Thomas St. | Memphis | TN | $ | 2,330,000 | $ | 2,390,000 | $ | 2,450,000 | |||||||||||
| Rite Aid | 1560 Parkman Rd. NW | Warren | OH | $ | 3,550,000 | $ | 3,670,000 | $ | 3,800,000 | |||||||||||
| Walgreens | 1201 Camp Jackson Rd. | Cahokia | IL | $ | 1,950,000 | $ | 2,020,000 | $ | 2,100,000 | |||||||||||
| Walgreens | 15609 Lakeshore Blvd | Cleveland | OH | $ | 2,400,000 | $ | 2,490,000 | $ | 2,590,000 | |||||||||||
| Lowe's | 2111 Fair Park Blvd. | Jonesboro | AR | $ | 10,370,000 | $ | 10,810,000 | $ | 11,290,000 | |||||||||||
| Lowe's | 3620 Emmett F Lowry Expy | Texas City | TX | $ | 12,050,000 | $ | 12,490,000 | $ | 12,950,000 | |||||||||||
| CVS | 900 North J.K. Powell Blvd. | Whiteville | NC | $ | 2,980,000 | $ | 3,100,000 | $ | 3,240,000 | |||||||||||
| Rite Aid | 713 Broadway | Bangor | ME | $ | 3,880,000 | $ | 4,010,000 | $ | 4,150,000 | |||||||||||
| Tractor Supply | 541 W. Reservoir Rd. | Woodstock | VA | $ | 2,890,000 | $ | 2,980,000 | $ | 3,090,000 | |||||||||||
| Sherwin-Williams | 2375 West Prospect Rd. | Ashtabula | OH | $ | 850,000 | $ | 880,000 | $ | 910,000 | |||||||||||
| Sherwin-Williams | 4040 South Ave. | Boardman | OH | $ | 1,020,000 | $ | 1,060,000 | $ | 1,100,000 | |||||||||||
| Sherwin-Williams | 1902 North Wayne St. | Angola | IN | $ | 1,230,000 | $ | 1,280,000 | $ | 1,330,000 | |||||||||||
| Apria Healthcare | 7353 Company Dr. | Indianapolis | IN | $ | 5,190,000 | $ | 5,480,000 | $ | 5,780,000 | |||||||||||
| Gander Mountain | 19820 Hempstead Rd. | Houston | TX | $ | 13,790,000 | $ | 14,510,000 | $ | 15,280,000 | |||||||||||
| CVS | 20601 FM 1431 | Lago Vista | TX | $ | 6,050,000 | $ | 6,300,000 | $ | 6,580,000 | |||||||||||
| Rite Aid | 2460 George Washington Mem Hwy | Hayes | VA | $ | 3,730,000 | $ | 3,960,000 | $ | 4,230,000 | |||||||||||
| Rite Aid | 4010 Anderson Mill Rd. | Spartanburg | SC | $ | 4,590,000 | $ | 4,870,000 | $ | 5,200,000 | |||||||||||
| Rite Aid | 6414 State Park Rd. | Travelers Rest | SC | $ | 4,220,000 | $ | 4,490,000 | $ | 4,790,000 | |||||||||||
| CVS | 11115 East U.S. Hwy 24 | Independence | MO | $ | 3,980,000 | $ | 4,130,000 | $ | 4,280,000 | |||||||||||
| Rite Aid | 1696 Middle Tennessee Blvd. | Murfreesboro | TN | $ | 2,520,000 | $ | 2,640,000 | $ | 2,770,000 | |||||||||||
| Rite Aid | 1334 Windrim Ave. | Philadelphia | PA | $ | 3,450,000 | $ | 3,560,000 | $ | 3,680,000 | |||||||||||
| CVS | 603 South Cedar Ridge Dr. | Duncanville | TX | $ | 3,390,000 | $ | 3,510,000 | $ | 3,640,000 | |||||||||||
| CineMagic Theatre | 2171 Superior Drive NW | Rochester | MN | $ | 2,860,000 | $ | 3,000,000 | $ | 3,160,000 | |||||||||||
| Rite Aid | 8130 Ohio River Rd. | Wheelersburg | OH | $ | 1,940,000 | $ | 2,010,000 | $ | 2,070,000 | |||||||||||
| Tractor Supply | 5525 US HWY 60 W | Paducah | KY | $ | 2,150,000 | $ | 2,220,000 | $ | 2,300,000 | |||||||||||
| Rite Aid | 1502 Executive Dr. | St. Marys | OH | $ | 2,880,000 | $ | 3,060,000 | $ | 3,260,000 | |||||||||||
| Tractor Supply | 3300 Veterans Outer Loop | Glasgow | KY | $ | 2,490,000 | $ | 2,580,000 | $ | 2,670,000 | |||||||||||
| Best Buy | 3040 N. Gloster St. | Tupelo | MS | $ | 2,630,000 | $ | 2,760,000 | $ | 2,900,000 | |||||||||||
| Conn's | 747 NE Loop 820 | Hurst | TX | $ | 2,490,000 | $ | 2,610,000 | $ | 2,750,000 | |||||||||||
| Conn's | 11101 Pecan Park Blvd. | Austin | TX | $ | 3,980,000 | $ | 4,180,000 | $ | 4,390,000 | |||||||||||
| Conn's | 2531 West Anderson Ln. | Austin | TX | $ | 3,690,000 | $ | 3,820,000 | $ | 3,960,000 | |||||||||||
| Vanguard Car Rental | 3600 Naturally Fresh Blvd. | College Park | GA | $ | 12,150,000 | $ | 12,870,000 | $ | 13,650,000 | |||||||||||
| Rite Aid | 226 Parker Farm Rd. | Buxton | ME | $ | 2,210,000 | $ | 2,280,000 | $ | 2,360,000 | |||||||||||
| Tractor Supply | 5235 SW Topeka Blvd | Topeka | KS | $ | 2,440,000 | $ | 2,570,000 | $ | 2,700,000 | |||||||||||
| AutoZone | 958 North Bridge St | Yorkville | IL | $ | 1,880,000 | $ | 1,950,000 | $ | 2,020,000 | |||||||||||
| Dollar General | 906 South Park Dr | Broken Bow | OK | $ | 1,810,000 | $ | 1,870,000 | $ | 1,940,000 | |||||||||||
| Sunoco | 1760 East Merritt Island Cswy | Merritt Island | FL | $ | 3,090,000 | $ | 3,200,000 | $ | 3,320,000 | |||||||||||
| Total | $ | 150,770,000 | $ | 157,500,000 | $ | 164,790,000 | ||||||||||||||
Accordingly, the aggregate “as is” market values of the leased fee interests in the Subject Properties as of December 31, 2013, would range from:
One Hundred Fifty Million Seven Hundred Seventy Thousand Dollars
$150,770,000
To
One Hundred Sixty Four Million Seven Hundred Ninety Thousand Dollars
$164,790,000
From the aggregate values of the individual Subject Properties, we have made adjustments to reflect balance sheet asset and liabilities and then calculated the Net Asset Value (NAV) of the portfolio based on the number of shares outstanding to the fund. This calculation is provided on the following page based on the balance sheet data and number of shares outstanding that were provided by CCPT.
| 24 |
| Cole Credit Properties Trust, Inc. | |
| Low End Estimated | Mid Point Estimated | High End Estimated | ||||||||||
| Market Value | Market Value | Market Value | ||||||||||
| Total of 39 Property Values | $ | 150,770,000 | $ | 157,500,000 | $ | 164,790,000 | ||||||
| Additional Assets | ||||||||||||
| Cash and cash equivalents | $ | 935,615 | $ | 935,615 | $ | 935,615 | ||||||
| Restricted cash | $ | 2,043,419 | $ | 2,043,419 | $ | 2,043,419 | ||||||
| Rents and tenant receivables, prepaid expenses and other assets | $ | 282,897 | $ | 282,897 | $ | 282,897 | ||||||
| Total Assets | $ | 154,031,931 | $ | 160,761,931 | $ | 168,051,931 | ||||||
| Liabilities | ||||||||||||
| Accounts payable and accrued expenses | $ | 245,497 | $ | 245,497 | $ | 245,497 | ||||||
| Accrued Interest | $ | 318,066 | $ | 318,066 | $ | 318,066 | ||||||
| Due to Affiliates | $ | 38,984 | $ | 38,984 | $ | 38,984 | ||||||
| Shareholder Distributions Payable | $ | 428,562 | $ | 428,562 | $ | 428,562 | ||||||
| Mortgages/Notes Payable Balance on 12/31/2013 | $ | 85,906,077 | $ | 85,906,077 | $ | 85,906,077 | ||||||
| Deferred Rental Income | $ | 516,871 | $ | 516,871 | $ | 516,871 | ||||||
| Adjustment of Debt to Market | $ | 2,694,704 | $ | 2,694,704 | $ | 2,694,704 | ||||||
| Total Liabilities | $ | 90,148,762 | $ | 90,148,762 | $ | 90,148,762 | ||||||
| Net Asset Value (NAV) | $ | 63,883,169 | $ | 70,613,169 | $ | 77,903,169 | ||||||
| Number of outstanding shares | 10,090,951 | 10,090,951 | 10,090,951 | |||||||||
| NAV Per Share | $ | 6.33 | $ | 7.00 | $ | 7.72 | ||||||
| 25 |
| Cole Credit Properties Trust, Inc. | |
ADDENDA
| 26 |
| Cole Credit Properties Trust, Inc. | |
EXHIBITS
| · | Summary of Salient Facts |
| · | Mid-Point Direct Capitalization Calculation |
| · | Mid-Point Discounted Cash Flow Assumptions |
| · | Cash Flow Forecast |
| · | Mid-Point Present Value Calculation |
| · | Comparable Sales |
| · | Capitalization and Discount Rate Support & Sales Survey |
| · | Mortgage Valuations |
| 27 |
PT1003 – Walgreens – Houston, TX
| 28 |
| BASIC INFORMATION | |||
| Property Name: | Walgreens | Report Type: | Restricted Appraisal Report |
| Address: | 5202 Almeda Dr. | Interest Appraised: | Leased Fee |
| City: | Houston | Value Premise: | Market Value |
| State: | TX | Date of Value- "As Is": | December 31, 2013 |
| County: | Harris | Owner of Record: | Cole Credit Property Trust, Inc. |
| Zip Code: | 77004 | Intended User: | Cole Credit Property Trust, Inc. |
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | ||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | ||
| SITE INFORMATION | |||
| Gross Land Area (Acres): | 1.34 | Frontage: | Good |
| Gross Land Area (sf): | 58,370 | Access: | Good |
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average |
| Excess Land Area (sf): | 0 | Topography: | Level |
| Flood Zone: | X | Shape: | Regular |
| FEMA Community Map #: | 480296 0860 L | Location Rating: | Average |
| FEMA Map Date: | 6/18/2007 | Number of Parking Spaces: | 61 |
| Parking Ratio (per 1,000 SF): | 4.75 | ||
| Parking Type: | Paved open surface parking | ||
| BUILDING INFORMATION | |||
| Type of Property: | Retail | Year Built: | 1993 |
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. |
| Gross Building Area (sf): | 12,851 | Condition Rating: | Average |
| Net Rentable Area (sf): | 12,851 | Actual Age (years): | 21 |
| # of Buildings: | 1 | Tenant: | Walgreens |
| # of Stories: | 1 | Land to Building Ratio: | 4.54 |
| TAX/ZONING INFORMATION | |||
| Parcel ID Number(s): | 042-066-000-0084 | Zoning Municipality: | N/A |
| Taxing Authority/Jurisdiction: | Harris County & Greater SE Management District | Current Zoning: | N/A |
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes |
| Current Assessed Value: | $2,425,635 | Current Use Compliance: | The subject represents a legal and conforming use. |
| Current Tax Liability: | $64,861 | Zoning Change Applied For: | No |
| Taxes per sf of NRA: | $5.05 | Zoning Variance Applied For: | No |
| HIGHEST & BEST USE | |||
| As Vacant: | As Improved: | ||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | ||
| LEASE SUMMARY | |||||
| Tenant: | Walgreens | Current Rent $/sf: | $13.84 | ||
| Tenant S&P Rating: | BBB | Rent Bump Date: | None | ||
| Lease Expiration: | February 28, 2019 | Rent at Bump Date $/sf: | None | ||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 12/31/2025 at | ||
| Landlord pays CapEx | $13,780/mo. ($12.87/sf). These terms are utilized in our | ||||
| Occupancy: | 100% | second scenario with the new rent assumed to begin | |||
| 7/1/2014. | |||||
| VALUATION SUMMARY - SCENARIO 1 | |||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,790,000 | ||
| Sales Comparison Approach: | $195.00 to $225.00 per square foot | Value PSF of NRA: | $217.10 | ||
| Income Capitalization Approach: | |||||
| Discounted Cash Flow: | $2,790,000 | Exposure Time: | 6-9 months | ||
| Terminal Capitalization Rate: | 6.25% | ||||
| Discount Rate: | 7.00% | Market Rent $/sf: | $13.00 | ||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $13.84 | ||
| Expense Growth: | 3.00% | ||||
| VALUATION SUMMARY - SCENARIO 2 | |||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,560,000 | ||
| Sales Comparison Approach: | $195.00 to $225.00 per square foot | Value PSF of NRA: | $199.21 | ||
| Income Capitalization Approach: | |||||
| Discounted Cash Flow: | $2,560,000 | Exposure Time: | 6-9 months | ||
| Terminal Capitalization Rate: | 6.25% | ||||
| Discount Rate: | 6.50% | Market Rent $/sf: | $13.00 | ||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $13.84 | ||
| Expense Growth | 3.00% | ||||
| 29 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,570 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.00 | % | ||
| Terminal Capitalization Rate: | 6.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,790,000 | ||
| Value PSF of NRA: | $ | 217.10 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 13.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 30 |
Walgreens
Schedule of Prospective Cash Flow - Scenario 1
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 177,858 | $ | 177,858 | $ | 177,858 | $ | 177,858 | $ | 177,858 | $ | 191,037 | $ | 193,672 | $ | 193,672 | $ | 193,672 | $ | 193,672 | $ | 200,128 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | (32,279 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 177,858 | 177,858 | 177,858 | 177,858 | 177,858 | 158,758 | 193,672 | 193,672 | 193,672 | 193,672 | 200,128 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 87,350 | 89,971 | 92,670 | 95,450 | 98,314 | 84,386 | 104,300 | 107,430 | 110,653 | 113,972 | 117,392 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 265,208 | 267,829 | 270,528 | 273,308 | 276,172 | 243,144 | 297,972 | 301,102 | 304,325 | 307,644 | 317,520 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 265,208 | 267,829 | 270,528 | 273,308 | 276,172 | 243,144 | 297,972 | 301,102 | 304,325 | 307,644 | 317,520 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,489 | 23,164 | 23,859 | 24,575 | 25,312 | 26,071 | 26,853 | 27,659 | 28,489 | 29,343 | 30,224 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 64,861 | 66,807 | 68,811 | 70,875 | 73,002 | 75,192 | 77,447 | 79,771 | 82,164 | 84,629 | 87,168 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 87,350 | 89,971 | 92,670 | 95,450 | 98,314 | 101,263 | 104,300 | 107,430 | 110,653 | 113,972 | 117,392 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 177,858 | 177,858 | 177,858 | 177,858 | 177,858 | 141,881 | 193,672 | 193,672 | 193,672 | 193,672 | 200,128 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 37,245 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 29,777 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 0 | 2,250 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,570 | 0 | 2,727 | 2,809 | 2,893 | 2,980 | 3,069 | 3,161 | 3,256 | 3,354 | 3,454 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,570 | 2,250 | 2,727 | 2,809 | 2,893 | 70,002 | 3,069 | 3,161 | 3,256 | 3,354 | 3,454 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 175,288 | $ | 175,608 | $ | 175,131 | $ | 175,049 | $ | 174,965 | $ | 71,879 | $ | 190,603 | $ | 190,511 | $ | 190,416 | $ | 190,318 | $ | 196,674 | ||||||||||||||||||||||
| 31 |
Walgreens
Discounted Cash Flow Analysis - Scenario 1
As of December 31, 2013
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 7.00% | ||||||||||
| Year 1 | Dec-14 | $ | 175,288 | $ | 163,821 | |||||||||
| Year 2 | Dec-15 | 175,608 | 153,383 | |||||||||||
| Year 3 | Dec-16 | 175,131 | 142,959 | |||||||||||
| Year 4 | Dec-17 | 175,049 | 133,544 | |||||||||||
| Year 5 | Dec-18 | 174,965 | 124,748 | |||||||||||
| Year 6 | Dec-19 | 71,879 | 47,896 | |||||||||||
| Year 7 | Dec-20 | 190,603 | 118,698 | |||||||||||
| Year 8 | Dec-21 | 190,511 | 110,879 | |||||||||||
| Year 9 | Dec-22 | 190,416 | 103,574 | |||||||||||
| Year 10 | Dec-23 | 190,318 | 96,748 | |||||||||||
| Total Cash Flow | $ | 1,709,768 | $ | 1,196,249 | ||||||||||
| Property Resale @ 6.25% | 3,138,007 | 1,595,204 | ||||||||||||
| Total Property Present Value | $ | 2,791,453 | ||||||||||||
| Rounded | $ | 2,790,000 | ||||||||||||
| Per Square Foot | $ | 217.10 | ||||||||||||
| 32 |
DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,570 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 6.50 | % | ||
| Terminal Capitalization Rate: | 6.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,560,000 | ||
| Value PSF of NRA: | $ | 199.21 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 13.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 33 |
Walgreens
Schedule of Prospective Cash Flow - Scenario 2
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 171,625 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | $ | 165,392 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 171,625 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 87,350 | 89,971 | 92,670 | 95,450 | 98,314 | 101,263 | 104,300 | 107,430 | 110,653 | 113,972 | 117,392 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 258,975 | 255,363 | 258,062 | 260,842 | 263,706 | 266,655 | 269,692 | 272,822 | 276,045 | 279,364 | 282,784 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 258,975 | 255,363 | 258,062 | 260,842 | 263,706 | 266,655 | 269,692 | 272,822 | 276,045 | 279,364 | 282,784 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,489 | 23,164 | 23,859 | 24,575 | 25,312 | 26,071 | 26,853 | 27,659 | 28,489 | 29,343 | 30,224 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 64,861 | 66,807 | 68,811 | 70,875 | 73,002 | 75,192 | 77,447 | 79,771 | 82,164 | 84,629 | 87,168 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 87,350 | 89,971 | 92,670 | 95,450 | 98,314 | 101,263 | 104,300 | 107,430 | 110,653 | 113,972 | 117,392 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 171,625 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | 165,392 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 0 | 2,250 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,570 | 0 | 2,727 | 2,809 | 2,893 | 2,980 | 3,069 | 3,161 | 3,256 | 3,354 | 3,454 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,570 | 2,250 | 2,727 | 2,809 | 2,893 | 2,980 | 3,069 | 3,161 | 3,256 | 3,354 | 3,454 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 169,055 | $ | 163,142 | $ | 162,665 | $ | 162,583 | $ | 162,499 | $ | 162,412 | $ | 162,323 | $ | 162,231 | $ | 162,136 | $ | 162,038 | $ | 161,938 | ||||||||||||||||||||||
| 34 |
Walgreens
Discounted Cash Flow Analysis - Scenario 2
As of December 31, 2013
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 6.50% | ||||||||||
| Year 1 | Dec-14 | $ | 169,055 | $ | 158,737 | |||||||||
| Year 2 | Dec-15 | 163,142 | 143,836 | |||||||||||
| Year 3 | Dec-16 | 162,665 | 134,662 | |||||||||||
| Year 4 | Dec-17 | 162,583 | 126,380 | |||||||||||
| Year 5 | Dec-18 | 162,499 | 118,605 | |||||||||||
| Year 6 | Dec-19 | 162,412 | 111,306 | |||||||||||
| Year 7 | Dec-20 | 162,323 | 104,456 | |||||||||||
| Year 8 | Dec-21 | 162,231 | 98,025 | |||||||||||
| Year 9 | Dec-22 | 162,136 | 91,988 | |||||||||||
| Year 10 | Dec-23 | 162,038 | 86,322 | |||||||||||
| Total Cash Flow | $ | 1,631,084 | $ | 1,174,317 | ||||||||||
| Property Resale @ 6.25% | 2,593,347 | 1,381,543 | ||||||||||||
| Total Property Present Value | $ | 2,555,860 | ||||||||||||
| Rounded | $ | 2,560,000 | ||||||||||||
| Per Square Foot | $ | 199.21 | ||||||||||||
| 35 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Walgreens | 198 E Main St | Hendersonville | TN | 13,500 | $ | 2,550,000 | $ | 188.89 | 10/31/2013 | $ | 202,470 | 7.94 | % | |||||||||||||||||||
| Walgreens | 6320 N Eldridge Pky | Houston | TX | 14,820 | $ | 5,500,000 | $ | 371.12 | 9/20/2013 | $ | 309,100 | 5.62 | % | |||||||||||||||||||
| Walgreens | 3301 Denton Hwy | Haltom City | TX | 13,905 | $ | 4,394,118 | $ | 316.01 | 4/26/2013 | $ | 298,800 | 6.80 | % | |||||||||||||||||||
| Walgreens | 746 W University Dr | Mesa | AZ | 15,120 | $ | 3,561,000 | $ | 235.52 | 2/7/2013 | $ | 267,075 | 7.50 | % | |||||||||||||||||||
| Walgreens | 9285 Halls Ferry Rd | Jennings | MO | 15,120 | $ | 2,250,000 | $ | 148.81 | 8/1/2012 | $ | 187,875 | 8.35 | % | |||||||||||||||||||
| Walgreens | 13255 Atlantic Blvd | Jacksonville | FL | 13,960 | $ | 3,575,000 | $ | 256.09 | 5/31/2012 | $ | 260,975 | 7.30 | % | |||||||||||||||||||
| Walgreens | 15301 E Mississippi Ave | Aurora | CO | 17,548 | $ | 3,250,000 | $ | 185.21 | 5/2/2012 | $ | 208,975 | 6.43 | % | |||||||||||||||||||
| Walgreens | 9020 Biscayne Blvd | Miami Shores | FL | 14,850 | $ | 2,900,000 | $ | 195.29 | 1/2/2012 | $ | 202,130 | 6.97 | % | |||||||||||||||||||
| Min | $ | 148.81 | 5.62 | % | ||||||||||||||||||||||||||||
| Max | $ | 371.12 | 8.35 | % | ||||||||||||||||||||||||||||
| Average | $ | 237.12 | 7.11 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $195.00 to $225.00 per square foot | |||||||||||||||||||||||||||||||
| 36 |
PT1004 – Walgreens – Lawrence, KS
| 37 |
| BASIC INFORMATION | |||
| Property Name: | Walgreens | Report Type: | Restricted Appraisal Report |
| Address: | 400 West 23rd St. | Interest Appraised: | Leased Fee |
| City: | Lawrence | Value Premise: | Market Value |
| State: | KS | Date of Value- "As Is": | December 31, 2013 |
| County: | Douglas | Owner of Record: | Cole Credit Property Trust, Inc. |
| Zip Code: | 66046 | Intended User: | Cole Credit Property Trust, Inc. |
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | ||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | ||
| SITE INFORMATION | |||
| Gross Land Area (Acres): | 1.32 | Frontage: | Good |
| Gross Land Area (sf): | 57,499 | Access: | Average |
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average |
| Excess Land Area (sf): | 0 | Topography: | Level |
| Flood Zone: | X | Shape: | Regular |
| FEMA Community Map #: | 200090 0178D | Location Rating: | Average |
| FEMA Map Date: | 8/5/2010 | Number of Parking Spaces: | 57 |
| Parking Ratio (per 1,000 SF): | 4.42 | ||
| Parking Type: | Paved open surface parking |
| BUILDING INFORMATION | |||
| Type of Property: | Retail | Year Built: | 1992 |
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. |
| Gross Building Area (sf): | 12,885 | Condition Rating: | Average |
| Net Rentable Area (sf): | 12,885 | Actual Age (years): | 22 |
| # of Buildings: | 1 | Tenant: | Walgreens |
| # of Stories: | 1 | Land to Building Ratio: | 4.46 |
| TAX/ZONING INFORMATION | |||||
| Parcel ID Number(s): | 023-103-06-0-30-25-007.00-0 | Zoning Municipality: | City of Lawrence | ||
| Taxing Authority/Jurisdiction: | Douglas County | Current Zoning: | PCD, Planned Commercial District | ||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | ||
| Current Assessed Value: | $528,475 | Current Use Compliance: | The subject represents a legal and conforming use. | ||
| Current Tax Liability: | $66,843 | Zoning Change Applied For: | No | ||
| Taxes per sf of NRA: | $5.19 | Zoning Variance Applied For: | No | ||
| HIGHEST & BEST USE | |||
| As Vacant: | As Improved: | ||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | ||
| LEASE SUMMARY | |||||
| Tenant: | Walgreens | Current Rent $/sf: | $16.90 | ||
| Tenant S&P Rating: | BBB | Rent Bump Date: | None | ||
| Lease Expiration: | December 31, 2018 | Rent at Bump Date $/sf: | None | ||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 12/31/2025 at | ||
| Landlord pays CapEx | $16,876/mo. ($15.72/sf). These terms are utilized in our | ||||
| Occupancy: | 100% | second scenario with the new rent assumed to begin 7/1/2014. |
| VALUATION SUMMARY - SCENARIO 1 | |||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,350,000 | ||
| Sales Comparison Approach: | $225.00 to $270.00 per square foot | Value PSF of NRA: | $259.99 | ||
| Income Capitalization Approach: | |||||
| Discounted Cash Flow: | $3,350,000 | Exposure Time: | 6-9 months | ||
| Terminal Capitalization Rate: | 6.25% | ||||
| Discount Rate: | 7.00% | Market Rent $/sf: | $15.75 | ||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $16.90 | ||
| Expense Growth: | 3.00% | ||||
| VALUATION SUMMARY - SCENARIO 2 | |||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,060,000 | ||
| Sales Comparison Approach: | $225.00 to $270.00 per square foot | Value PSF of NRA: | $237.49 | ||
| Income Capitalization Approach: | |||||
| Discounted Cash Flow: | $3,060,000 | Exposure Time: | 6-9 months | ||
| Terminal Capitalization Rate: | 6.25% | ||||
| Discount Rate: | 6.50% | Market Rent $/sf: | $15.75 | ||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $16.90 | ||
| Expense Growth | 3.00% | ||||
| 38 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 |
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,577 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.00 | % | ||
| Terminal Capitalization Rate: | 6.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,350,000 | ||
| Value PSF of NRA: | $ | 259.99 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 15.75 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 39 |
Walgreens
Schedule of Prospective Cash Flow - Scenario 1
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 217,757 | $ | 217,757 | $ | 217,757 | $ | 217,757 | $ | 217,757 | $ | 235,261 | $ | 235,262 | $ | 235,262 | $ | 235,262 | $ | 235,262 | $ | 245,064 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | (39,210 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 217,757 | 217,757 | 217,757 | 217,757 | 217,757 | 196,051 | 235,262 | 235,262 | 235,262 | 235,262 | 245,064 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 90,394 | 93,105 | 95,899 | 98,776 | 101,739 | 87,325 | 107,934 | 111,173 | 114,508 | 117,943 | 121,482 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 308,151 | 310,862 | 313,656 | 316,533 | 319,496 | 283,376 | 343,196 | 346,435 | 349,770 | 353,205 | 366,546 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 308,151 | 310,862 | 313,656 | 316,533 | 319,496 | 283,376 | 343,196 | 346,435 | 349,770 | 353,205 | 366,546 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,549 | 23,225 | 23,922 | 24,640 | 25,379 | 26,140 | 26,924 | 27,732 | 28,564 | 29,421 | 30,304 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 67,845 | 69,880 | 71,977 | 74,136 | 76,360 | 78,651 | 81,010 | 83,441 | 85,944 | 88,522 | 91,178 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 90,394 | 93,105 | 95,899 | 98,776 | 101,739 | 104,791 | 107,934 | 111,173 | 114,508 | 117,943 | 121,482 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 217,757 | 217,757 | 217,757 | 217,757 | 217,757 | 178,585 | 235,262 | 235,262 | 235,262 | 235,262 | 245,064 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 37,343 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 36,171 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 0 | 91,500 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,577 | 0 | 2,734 | 2,816 | 2,900 | 2,987 | 3,077 | 3,169 | 3,264 | 3,362 | 3,463 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,577 | 91,500 | 2,734 | 2,816 | 2,900 | 76,501 | 3,077 | 3,169 | 3,264 | 3,362 | 3,463 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 215,180 | $ | 126,257 | $ | 215,023 | $ | 214,941 | $ | 214,857 | $ | 102,084 | $ | 232,185 | $ | 232,093 | $ | 231,998 | $ | 231,900 | $ | 241,601 | ||||||||||||||||||||||
| 40 |
Walgreens
Discounted Cash Flow Analysis - Scenario 1
As of December 31, 2013
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.00% | |||||||
| Year 1 | Dec-14 | $ | 215,180 | $ | 201,103 | ||||||
| Year 2 | Dec-15 | 126,257 | 110,278 | ||||||||
| Year 3 | Dec-16 | 215,023 | 175,523 | ||||||||
| Year 4 | Dec-17 | 214,941 | 163,977 | ||||||||
| Year 5 | Dec-18 | 214,857 | 153,190 | ||||||||
| Year 6 | Dec-19 | 102,084 | 68,023 | ||||||||
| Year 7 | Dec-20 | 232,185 | 144,593 | ||||||||
| Year 8 | Dec-21 | 232,093 | 135,080 | ||||||||
| Year 9 | Dec-22 | 231,998 | 126,192 | ||||||||
| Year 10 | Dec-23 | 231,900 | 117,886 | ||||||||
| Total Cash Flow | $ | 2,016,518 | $ | 1,395,845 | |||||||
| Property Resale @ 6.25% | 3,842,604 | 1,953,385 | |||||||||
| Total Property Present Value | $ | 3,349,230 | |||||||||
| Rounded | $ | 3,350,000 | |||||||||
| Per Square Foot | $ | 259.99 | |||||||||
| 41 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 |
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,577 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 6.50 | % | ||
| Terminal Capitalization Rate: | 6.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,060,000 | ||
| Value PSF of NRA: | $ | 237.49 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 15.75 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 42 |
Walgreens
Schedule of Prospective Cash Flow - Scenario 2
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 210,154 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | $ | 202,552 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 210,154 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 90,394 | 93,105 | 95,899 | 98,776 | 101,739 | 104,791 | 107,934 | 111,173 | 114,508 | 117,943 | 121,482 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 300,548 | 295,657 | 298,451 | 301,328 | 304,291 | 307,343 | 310,486 | 313,725 | 317,060 | 320,495 | 324,034 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 300,548 | 295,657 | 298,451 | 301,328 | 304,291 | 307,343 | 310,486 | 313,725 | 317,060 | 320,495 | 324,034 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,549 | 23,225 | 23,922 | 24,640 | 25,379 | 26,140 | 26,924 | 27,732 | 28,564 | 29,421 | 30,304 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 67,845 | 69,880 | 71,977 | 74,136 | 76,360 | 78,651 | 81,010 | 83,441 | 85,944 | 88,522 | 91,178 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 90,394 | 93,105 | 95,899 | 98,776 | 101,739 | 104,791 | 107,934 | 111,173 | 114,508 | 117,943 | 121,482 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 210,154 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | 202,552 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 0 | 91,500 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,577 | 0 | 2,734 | 2,816 | 2,900 | 2,987 | 3,077 | 3,169 | 3,264 | 3,362 | 3,463 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,577 | 91,500 | 2,734 | 2,816 | 2,900 | 2,987 | 3,077 | 3,169 | 3,264 | 3,362 | 3,463 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 207,577 | $ | 111,052 | $ | 199,818 | $ | 199,736 | $ | 199,652 | $ | 199,565 | $ | 199,475 | $ | 199,383 | $ | 199,288 | $ | 199,190 | $ | 199,089 | ||||||||||||||||||||||
| 43 |
Walgreens
Discounted Cash Flow Analysis - Scenario 2
As of December 31, 2013
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 6.50% | |||||||
| Year 1 | Dec-14 | $ | 207,577 | $ | 194,908 | ||||||
| Year 2 | Dec-15 | 111,052 | 97,910 | ||||||||
| Year 3 | Dec-16 | 199,818 | 165,419 | ||||||||
| Year 4 | Dec-17 | 199,736 | 155,259 | ||||||||
| Year 5 | Dec-18 | 199,652 | 145,722 | ||||||||
| Year 6 | Dec-19 | 199,565 | 136,769 | ||||||||
| Year 7 | Dec-20 | 199,475 | 128,363 | ||||||||
| Year 8 | Dec-21 | 199,383 | 120,473 | ||||||||
| Year 9 | Dec-22 | 199,288 | 113,067 | ||||||||
| Year 10 | Dec-23 | 199,190 | 106,114 | ||||||||
| Total Cash Flow | $ | 1,914,736 | $ | 1,364,005 | |||||||
| Property Resale @ 6.25% | 3,176,015 | 1,691,946 | |||||||||
| Total Property Present Value | $ | 3,055,951 | |||||||||
| Rounded | $ | 3,060,000 | |||||||||
| Per Square Foot | $ | 237.49 | |||||||||
| 44 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Walgreens | 198 E Main St | Hendersonville | TN | 13,500 | $ | 2,550,000 | $ | 188.89 | 10/31/2013 | $ | 202,470 | 7.94 | % | |||||||||||||||
| Walgreens | 5050 Lemay Ferry Rd | Saint Louis | MO | 13,987 | $ | 4,575,000 | $ | 327.09 | 6/14/2013 | $ | 338,550 | 7.40 | % | |||||||||||||||
| Walgreens | 3301 Denton Hwy | Haltom City | TX | 13,905 | $ | 4,394,118 | $ | 316.01 | 4/26/2013 | $ | 298,800 | 6.80 | % | |||||||||||||||
| Walgreens | 746 W University Dr | Mesa | AZ | 15,120 | $ | 3,561,000 | $ | 235.52 | 2/7/2013 | $ | 267,075 | 7.50 | % | |||||||||||||||
| Walgreens | 550 S 129th St | Bonner Springs | KS | 14,820 | $ | 6,523,390 | $ | 440.17 | 11/20/2012 | $ | 391,403 | 6.00 | % | |||||||||||||||
| Walgreens | 9285 Halls Ferry Rd | Jennings | MO | 15,120 | $ | 2,250,000 | $ | 148.81 | 8/1/2012 | $ | 187,875 | 8.35 | % | |||||||||||||||
| Walgreens | 13255 Atlantic Blvd | Jacksonville | FL | 13,960 | $ | 3,575,000 | $ | 256.09 | 5/31/2012 | $ | 260,975 | 7.30 | % | |||||||||||||||
| Walgreens | 15301 E Mississippi Ave | Aurora | CO | 17,548 | $ | 3,250,000 | $ | 185.21 | 5/2/2012 | $ | 208,975 | 6.43 | % | |||||||||||||||
| Walgreens | 3920 Hampton Ave | Saint Louis | MO | 16,938 | $ | 3,600,000 | $ | 212.54 | 3/30/2012 | $ | 227,880 | 6.33 | % | |||||||||||||||
| Walgreens | 9020 Biscayne Blvd | Miami Shores | FL | 14,850 | $ | 2,900,000 | $ | 195.29 | 1/2/2012 | $ | 202,130 | 6.97 | % | |||||||||||||||
| Walgreens | 1625 S Webb Rd | Wichita | KS | 15,099 | $ | 4,000,000 | $ | 264.92 | 8/1/2011 | $ | 330,000 | 8.25 | % | |||||||||||||||
| Min | $ | 148.81 | 6.00 | % | ||||||||||||||||||||||||
| Max | $ | 440.17 | 8.35 | % | ||||||||||||||||||||||||
| Average | $ | 251.87 | 7.21 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $225.00 to $270.00 per square foot | |||||||||||||||||||||||||||
| 45 |
PT1005 – Rite Aid – Memphis, TN
| 46 |
| BASIC INFORMATION | ||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |
| Address: | 3060 Thomas St. | Interest Appraised: | Leased Fee | |
| City: | Memphis | Value Premise: | Market Value | |
| State: | TN | Date of Value- “As Is”: | December 31, 2013 | |
| County: | Shelby | Owner of Record: | Cole Credit Property Trust, Inc. | |
| Zip Code: | 38127 | Intended User: | Cole Credit Property Trust, Inc. | |
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||
| SITE INFORMATION | ||||
| Gross Land Area (Acres): | 1.64 | Frontage: | Good | |
| Gross Land Area (sf): | 71,438 | Access: | Average | |
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |
| Excess Land Area (sf): | 0 | Topography: | Level | |
| Flood Zone: | X | Shape: | Regular | |
| FEMA Community Map #: | 470177 0260F | Location Rating: | Good | |
| FEMA Map Date: | 9/28/2007 | Number of Parking Spaces: | 69 | |
| Parking Ratio (per 1,000 SF): | 6.24 | |||
| Parking Type: | Paved open surface parking | |||
| BUILDING INFORMATION | ||||
| Type of Property: | Retail | Year Built: | 2000 | |
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |
| Gross Building Area (sf): | 11,064 | Condition Rating: | Average | |
| Net Rentable Area (sf): | 11,064 | Actual Age (years): | 14 | |
| # of Buildings: | 1 | Tenant: | Rite Aid | |
| # of Stories: | 1 | Land to Building Ratio: | 6.46 | |
| TAX/ZONING INFORMATION | ||||
| Parcel ID Number(s): | 069025 00009C | Zoning Municipality: | City of Memphis | |
| Taxing Authority/Jurisdiction: | City of Memphis | Current Zoning: | CMU-1, Commercial Mixed Use-1 | |
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |
| Current Assessed Value: | $464,160 | Current Use Compliance: | The subject represents a legal and conforming use. | |
| Current Tax Liability: | $15,781 | Zoning Change Applied For: | No | |
| Taxes per sf of NRA: | $1.43 | Zoning Variance Applied For: | No | |
| HIGHEST & BEST USE | ||||
| As Vacant: | As Improved: | |||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||
| LEASE SUMMARY | ||||
| Tenant: | Rite Aid | Current Rent $/sf: | $30.78 | |
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |
| Lease Expiration: | April 6, 2020 | Rent at Bump Date $/sf: | None | |
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, Landlord pays CapEx | Comment: | Property is currently subleased to Dollar Tree. Sublease terms have not been disclosed. | |
| Occupancy: | 100% | |||
| VALUATION SUMMARY | ||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,390,000 | |
| Sales Comparison Approach: | $200.00 to $250.00 per square foot | Value PSF of NRA: | $216.02 | |
| Income Capitalization Approach: | ||||
| Discounted Cash Flow: | $2,390,000 | Exposure Time: | 6-9 months | |
| Terminal Capitalization Rate: | 8.25% | |||
| Discount Rate: | 9.00% | Market Rent $/sf: | $11.00 | |
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $30.78 | |
| Expense Growth: | 3.00% | |||
| 47 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | ||||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Basis Point Spread over OAR: | 1.00 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,390,000 | ||
| Value PSF of NRA: | $ | 216.02 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 11.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 50.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 48 |
Rite Aid
Schedule of Prospective Cash Flow
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 340,523 | $ | 340,523 | $ | 340,523 | $ | 340,523 | $ | 340,523 | $ | 340,523 | $ | 194,121 | $ | 145,321 | $ | 145,321 | $ | 145,321 | $ | 145,321 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (60,550 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 340,523 | 340,523 | 340,523 | 340,523 | 340,523 | 340,523 | 133,571 | 145,321 | 145,321 | 145,321 | 145,321 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,362 | 19,943 | 20,541 | 21,157 | 21,792 | 22,446 | 13,486 | 23,813 | 24,527 | 25,263 | 26,021 | |||||||||||||||||||||||||||||||||
| RE Tax | 16,255 | 16,743 | 17,245 | 17,762 | 18,295 | 18,844 | 11,322 | 19,992 | 20,591 | 21,209 | 21,845 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 35,617 | 36,686 | 37,786 | 38,919 | 40,087 | 41,290 | 24,808 | 43,805 | 45,118 | 46,472 | 47,866 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 376,140 | 377,209 | 378,309 | 379,442 | 380,610 | 381,813 | 158,379 | 189,126 | 190,439 | 191,793 | 193,187 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 376,140 | 377,209 | 378,309 | 379,442 | 380,610 | 381,813 | 158,379 | 189,126 | 190,439 | 191,793 | 193,187 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,362 | 19,943 | 20,541 | 21,157 | 21,792 | 22,446 | 23,119 | 23,813 | 24,527 | 25,263 | 26,021 | |||||||||||||||||||||||||||||||||
| RE Tax | 16,255 | 16,743 | 17,245 | 17,762 | 18,295 | 18,844 | 19,409 | 19,992 | 20,591 | 21,209 | 21,845 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 35,617 | 36,686 | 37,786 | 38,919 | 40,087 | 41,290 | 42,528 | 43,805 | 45,118 | 46,472 | 47,866 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 340,523 | 340,523 | 340,523 | 340,523 | 340,523 | 340,523 | 115,851 | 145,321 | 145,321 | 145,321 | 145,321 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 66,055 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 44,686 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 70,000 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,213 | 2,348 | 2,418 | 2,491 | 2,565 | 2,642 | 2,721 | 2,803 | 2,887 | 2,974 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,213 | 70,000 | 2,348 | 2,418 | 2,491 | 2,565 | 113,383 | 2,721 | 2,803 | 2,887 | 2,974 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 338,310 | $ | 270,523 | $ | 338,175 | $ | 338,105 | $ | 338,032 | $ | 337,958 | $ | 2,468 | $ | 142,600 | $ | 142,518 | $ | 142,434 | $ | 142,347 | ||||||||||||||||||||||
| 49 |
Rite Aid
Discounted Cash Flow Analysis
As of December 31, 2013
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 9.00% | |||||||
| Year 1 | Dec-14 | $ | 338,310 | $ | 310,376 | ||||||
| Year 2 | Dec-15 | 270,523 | 227,694 | ||||||||
| Year 3 | Dec-16 | 338,175 | 261,133 | ||||||||
| Year 4 | Dec-17 | 338,105 | 239,522 | ||||||||
| Year 5 | Dec-18 | 338,032 | 219,698 | ||||||||
| Year 6 | Dec-19 | 337,958 | 201,513 | ||||||||
| Year 7 | Dec-20 | 2,468 | 1,350 | ||||||||
| Year 8 | Dec-21 | 142,600 | 71,566 | ||||||||
| Year 9 | Dec-22 | 142,518 | 65,619 | ||||||||
| Year 10 | Dec-23 | 142,434 | 60,166 | ||||||||
| Total Cash Flow | $ | 2,391,123 | $ | 1,658,637 | |||||||
| Property Resale @ 8.25% | 1,726,237 | 729,181 | |||||||||
| Total Property Present Value | $ | 2,387,819 | |||||||||
| Rounded | $ | 2,390,000 | |||||||||
| Per Square Foot | $ | 216.02 | |||||||||
| 50 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Rite Aid | 5441 Highway 153 | Hixson | TN | 10,908 | $ | 2,500,000 | $ | 229.19 | 1/6/2014 | $ | 237,500 | 9.50 | % | |||||||||||||||
| Rite Aid | 7354 E Brainerd Rd | Chattanooga | TN | 11,200 | $ | 2,450,000 | $ | 218.75 | 10/21/2013 | $ | 245,000 | 10.00 | % | |||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||
| Rite Aid | 3295 Centerville Hwy | Snellville | GA | 10,594 | $ | 2,460,000 | $ | 232.21 | 8/8/2013 | $ | 184,500 | 7.50 | % | |||||||||||||||
| Rite Aid | 2005 Maple St | Rome | GA | 14,673 | $ | 5,152,100 | $ | 351.13 | 6/13/2013 | $ | 412,168 | 8.00 | % | |||||||||||||||
| Rite Aid | 655 S Main St | Ashland City | TN | 13,824 | $ | 2,585,000 | $ | 186.99 | 1/29/2013 | $ | 239,371 | 9.26 | % | |||||||||||||||
| Rite Aid | 5192 Murfreesboro Rd | La Vergne | TN | 14,564 | $ | 4,906,000 | $ | 336.86 | 11/21/2012 | $ | 461,164 | 9.40 | % | |||||||||||||||
| Rite Aid | 1630 Benvenue Rd | Rocky Mount | NC | 10,908 | $ | 2,400,000 | $ | 220.02 | 10/2/2012 | $ | 235,200 | 9.80 | % | |||||||||||||||
| Min | $ | 186.99 | 7.50 | % | ||||||||||||||||||||||||
| Max | $ | 351.13 | 10.00 | % | ||||||||||||||||||||||||
| Average | $ | 258.56 | 8.93 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $200.00 to $250.00 per square foot | |||||||||||||||||||||||||||
| 51 |
PT1006 – Rite Aid – Warren, OH
| 52 |
| BASIC INFORMATION | ||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |
| Address: | 1560 Parkman Rd. NW | Interest Appraised: | Leased Fee | |
| City: | Warren | Value Premise: | Market Value | |
| State: | OH | Date of Value- “As Is”: | December 31, 2013 | |
| County: | Trumbull | Owner of Record: | Cole Credit Property Trust, Inc. | |
| Zip Code: | 44485 | Intended User: | Cole Credit Property Trust, Inc. | |
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||
| Ownership History: | ||||
| To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | ||||
| SITE INFORMATION | ||||
| Gross Land Area (Acres): | 1.53 | Frontage: | Average | |
| Gross Land Area (sf): | 66,647 | Access: | Good | |
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |
| Excess Land Area (sf): | 0 | Topography: | Level | |
| Flood Zone: | X | Shape: | Regular | |
| FEMA Community Map #: | 390541 0377D | Location Rating: | Average | |
| FEMA Map Date: | 6/18/2010 | Number of Parking Spaces: | 55 | |
| Parking Ratio (per 1,000 SF): | 4.88 | |||
| Parking Type: | Paved open surface parking | |||
| BUILDING INFORMATION | ||||
| Type of Property: | Retail | Year Built: | 1999 | |
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |
| Gross Building Area (sf): | 11,267 | Condition Rating: | Average | |
| Net Rentable Area (sf): | 11,267 | Actual Age (years): | 15 | |
| # of Buildings: | 1 | Tenant: | Rite Aid | |
| # of Stories: | 1 | Land to Building Ratio: | 5.92 | |
| TAX/ZONING INFORMATION | ||||
| Parcel ID Number(s): | 39-063912; 39-063915; 39-063916; 39-195150;39-195200 | Zoning Municipality: | City of Warren | |
| Taxing Authority/Jurisdiction: | Trumbull County | Current Zoning: | CA, Commercial “A” | |
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |
| Current Assessed Value: | $529,530 | Current Use Compliance: | The subject represents a legal and conforming use. | |
| Current Tax Liability: | $37,554 | Zoning Change Applied For: | No | |
| Taxes per sf of NRA: | $3.33 | Zoning Variance Applied For: | No | |
| HIGHEST & BEST USE | ||||
| As Vacant: | As Improved: | |||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||
| LEASE SUMMARY | ||||
| Tenant: | Rite Aid | Current Rent $/sf: | $27.00 | |
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |
| Lease Expiration: | April 30, 2020 | Rent at Bump Date $/sf: | None | |
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes,Landlord pays CapEx | Comment: | None | |
| Occupancy: | 100% | |||
| VALUATION SUMMARY | ||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,670,000 | |
| Sales Comparison Approach: | $300.00 to $340.00 per square foot | Value PSF of NRA: | $325.73 | |
| Income Capitalization Approach: | ||||
| Discounted Cash Flow: | $3,670,000 | Exposure Time: | 6-9 months | |
| Terminal Capitalization Rate: | 8.25% | |||
| Discount Rate: | 8.50% | Market Rent $/sf: | $25.00 | |
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $27.00 | |
| Expense Growth: | 3.00% | |||
| 53 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,253 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,670,000 | ||
| Value PSF of NRA: | $ | 325.73 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 25.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 3.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 54 |
Rite Aid
Schedule of Prospective Cash Flow
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 304,208 | $ | 304,208 | $ | 304,208 | $ | 304,208 | $ | 304,208 | $ | 304,208 | $ | 325,626 | $ | 336,335 | $ | 336,335 | $ | 336,335 | $ | 336,335 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (56,056 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 304,208 | 304,208 | 304,208 | 304,208 | 304,208 | 304,208 | 269,570 | 336,335 | 336,335 | 336,335 | 336,335 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,717 | 20,309 | 20,918 | 21,546 | 22,192 | 22,858 | 19,620 | 24,250 | 24,977 | 25,727 | 26,498 | |||||||||||||||||||||||||||||||||
| RE Tax | 37,554 | 38,681 | 39,841 | 41,036 | 42,267 | 43,535 | 37,368 | 46,187 | 47,572 | 48,999 | 50,469 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 57,271 | 58,990 | 60,759 | 62,582 | 64,459 | 66,393 | 56,988 | 70,437 | 72,549 | 74,726 | 76,967 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 361,479 | 363,198 | 364,967 | 366,790 | 368,667 | 370,601 | 326,558 | 406,772 | 408,884 | 411,061 | 413,302 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 361,479 | 363,198 | 364,967 | 366,790 | 368,667 | 370,601 | 326,558 | 406,772 | 408,884 | 411,061 | 413,302 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,717 | 20,309 | 20,918 | 21,546 | 22,192 | 22,858 | 23,543 | 24,250 | 24,977 | 25,727 | 26,498 | |||||||||||||||||||||||||||||||||
| RE Tax | 37,554 | 38,681 | 39,841 | 41,036 | 42,267 | 43,535 | 44,841 | 46,187 | 47,572 | 48,999 | 50,469 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 57,271 | 58,990 | 60,759 | 62,582 | 64,459 | 66,393 | 68,384 | 70,437 | 72,549 | 74,726 | 76,967 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 304,208 | 304,208 | 304,208 | 304,208 | 304,208 | 304,208 | 258,174 | 336,335 | 336,335 | 336,335 | 336,335 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 33,633 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 51,711 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 72,000 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,253 | 2,321 | 2,391 | 2,536 | 2,612 | 2,691 | 2,771 | 2,855 | 2,940 | 3,028 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,253 | 2,321 | 2,391 | 72,000 | 2,536 | 2,612 | 88,035 | 2,771 | 2,855 | 2,940 | 3,028 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 301,955 | $ | 301,887 | $ | 301,817 | $ | 232,208 | $ | 301,672 | $ | 301,596 | $ | 170,139 | $ | 333,564 | $ | 333,480 | $ | 333,395 | $ | 333,307 | ||||||||||||||||||||||
| 55 |
Rite Aid
Discounted Cash Flow Analysis
As of December 31, 2013
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 8.50% | |||||||
| Year 1 | Dec-14 | $ | 301,955 | $ | 278,300 | ||||||
| Year 2 | Dec-15 | 301,887 | 256,440 | ||||||||
| Year 3 | Dec-16 | 301,817 | 236,295 | ||||||||
| Year 4 | Dec-17 | 232,208 | 167,555 | ||||||||
| Year 5 | Dec-18 | 301,672 | 200,626 | ||||||||
| Year 6 | Dec-19 | 301,596 | 184,862 | ||||||||
| Year 7 | Dec-20 | 170,139 | 96,116 | ||||||||
| Year 8 | Dec-21 | 333,564 | 173,677 | ||||||||
| Year 9 | Dec-22 | 333,480 | 160,030 | ||||||||
| Year 10 | Dec-23 | 333,395 | 147,456 | ||||||||
| Total Cash Flow | $ | 2,911,713 | $ | 1,901,355 | |||||||
| Property Resale @ 8.25% | 3,995,252 | 1,767,042 | |||||||||
| Total Property Present Value | $ | 3,668,397 | |||||||||
| Rounded | $ | 3,670,000 | |||||||||
| Per Square Foot | $ | 325.73 | |||||||||
| 56 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Rite Aid | 3295 Centerville Hwy | Snellville | GA | 10,594 | $ | 2,460,000 | $ | 232.21 | 8/8/2013 | $ | 184,500 | 7.50 | % | |||||||||||||||
| Rite Aid | 1080 S West End Blvd | Quakertown | PA | 14,564 | $ | 6,375,000 | $ | 437.72 | 7/10/2013 | $ | 494,063 | 7.75 | % | |||||||||||||||
| Rite Aid | 3362 Navarre Ave | Oregon | OH | 14,565 | $ | 5,585,000 | $ | 383.45 | 6/14/2013 | $ | 474,725 | 8.50 | % | |||||||||||||||
| Rite Aid | 501 E Emmitt Ave | Waverly | OH | 10,600 | $ | 2,395,000 | $ | 225.94 | 5/10/2013 | $ | 215,550 | 9.00 | % | |||||||||||||||
| Rite Aid | 332 S Main St | Marion | OH | 14,564 | $ | 3,943,000 | $ | 270.74 | 3/15/2013 | $ | 364,728 | 9.25 | % | |||||||||||||||
| Rite Aid | 613 W Main St | Louisville | OH | 14,564 | $ | 4,507,011 | $ | 309.46 | 10/31/2012 | $ | 419,152 | 9.30 | % | |||||||||||||||
| Rite Aid | 350 Main St | Pennsburg | PA | 11,064 | $ | 7,805,737 | $ | 705.51 | 10/5/2012 | $ | 618,995 | 7.93 | % | |||||||||||||||
| Rite Aid | 1501 N Main St | Findlay | OH | 14,564 | $ | 4,141,800 | $ | 284.39 | 10/3/2012 | $ | 373,176 | 9.01 | % | |||||||||||||||
| Min | $ | 225.94 | 7.50 | % | ||||||||||||||||||||||||
| Max | $ | 705.51 | 9.30 | % | ||||||||||||||||||||||||
| Average | $ | 356.18 | 8.53 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $300.00 to $340.00 per square foot | |||||||||||||||||||||||||||
| 57 |
PT1007 – Walgreens – Cahokia, IL
| 58 |
| BASIC INFORMATION | ||||
| Property Name: | Walgreens | Report Type: | Restricted Appraisal Report | |
| Address: | 1201 Camp Jackson Rd. | Interest Appraised: | Leased Fee | |
| City: | Cahokia | Value Premise: | Market Value | |
| State: | IL | Date of Value- “As Is”: | December 31, 2013 | |
| County: | St. Clair | Owner of Record: | Cole Credit Property Trust, Inc. | |
| Zip Code: | 62206 | Intended User: | Cole Credit Property Trust, Inc. | |
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||
| SITE INFORMATION | ||||
| Gross Land Area (Acres): | 1.74 | Frontage: | Average | |
| Gross Land Area (sf): | 75,794 | Access: | Average | |
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |
| Excess Land Area (sf): | 0 | Topography: | Level | |
| Flood Zone: | AH, bordering on X | Shape: | Regular | |
| FEMA Community Map #: | 170620 0170 D | Location Rating: | Average | |
| FEMA Map Date: | 11/5/2003 | Number of Parking Spaces: | 74 | |
| Parking Ratio (per 1,000 SF): | 5.48 | |||
| Parking Type: | Paved open surface parking | |||
| BUILDING INFORMATION | ||||
| Type of Property: | Retail | Year Built: | 1994 | |
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |
| Gross Building Area (sf): | 13,500 | Condition Rating: | Average | |
| Net Rentable Area (sf): | 13,500 | Actual Age (years): | 20 | |
| # of Buildings: | 1 | Tenant: | Walgreens | |
| # of Stories: | 1 | Land to Building Ratio: | 5.61 | |
| TAX/ZONING INFORMATION | ||||
| Parcel ID Number(s): | 06-02.0-407-049 | Zoning Municipality: | Village of Cahokia | |
| Taxing Authority/Jurisdiction: | St. Clair County | Current Zoning: | B2, Community Business District | |
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |
| Current Assessed Value: | $205,198 | Current Use Compliance: | The subject represents a legal and conforming use. | |
| Current Tax Liability: | $39,095 | Zoning Change Applied For: | No | |
| Taxes per sf of NRA: | $2.90 | Zoning Variance Applied For: | No | |
| HIGHEST & BEST USE | ||||
| As Vacant: | As Improved: | |||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||
| LEASE SUMMARY | ||||
| Tenant: | Walgreens | Current Rent $/sf: | $14.29 | |
| Tenant S&P Rating: | BBB | Rent Bump Date: | None | |
| Lease Expiration: | July 31, 2014 | Rent at Bump Date $/sf: | None | |
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 7/31/2019 at | |
| Landlord pays CapEx | $11,252/mo. ($10.00/sf). These terms are utilized in our | |||
| Occupancy: | 100% | second scenario with the new rent assumed to begin | ||
| 8/1/2014. | ||||
| VALUATION SUMMARY - SCENARIO 1 | ||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,000,000 | |
| Sales Comparison Approach: | $140.00 to $170.00 per square foot | Value PSF of NRA: | $148.15 | |
| Income Capitalization Approach: | ||||
| Discounted Cash Flow: | $2,000,000 | Exposure Time: | 6-9 months | |
| Terminal Capitalization Rate: | 6.75% | |||
| Discount Rate: | 7.50% | Market Rent $/sf: | $10.00 | |
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $14.29 | |
| Expense Growth: | 3.00% | |||
| VALUATION SUMMARY - SCENARIO 2 | ||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,040,000 | |
| Sales Comparison Approach: | $140.00 to $170.00 per square foot | Value PSF of NRA: | $151.11 | |
| Income Capitalization Approach: | ||||
| Discounted Cash Flow: | $2,040,000 | Exposure Time: | 6-9 months | |
| Terminal Capitalization Rate: | 6.75% | |||
| Discount Rate: | 7.00% | Market Rent $/sf: | $10.00 | |
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $14.29 | |
| Expense Growth | 3.00% | |||
| 59 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 11 | |||
| Reversion Year (Yrs): | 12 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 133,026 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.50 | % | ||
| Terminal Capitalization Rate: | 6.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,000,000 | ||
| Value PSF of NRA: | $ | 148.15 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 10.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 60 |
| Walgreens | ||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow - Scenario 1 | ||||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | Year 12 | |||||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | Dec-2025 | ||||||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 168,784 | $ | 135,000 | $ | 135,000 | $ | 135,000 | $ | 135,000 | $ | 136,688 | $ | 141,750 | $ | 141,750 | $ | 141,750 | $ | 141,750 | $ | 151,670 | $ | 181,429 | ||||||||||||||||||||||||
| Absorption & Turnover Vacancy | (22,500 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (30,238 | ) | 0 | ||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 146,284 | 135,000 | 135,000 | 135,000 | 135,000 | 136,688 | 141,750 | 141,750 | 141,750 | 141,750 | 121,432 | 181,429 | ||||||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 53,243 | 65,809 | 67,783 | 69,817 | 71,911 | 74,068 | 76,290 | 78,579 | 80,936 | 83,364 | 71,554 | 88,442 | ||||||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 199,527 | 200,809 | 202,783 | 204,817 | 206,911 | 210,756 | 218,040 | 220,329 | 222,686 | 225,114 | 192,986 | 269,871 | ||||||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 199,527 | 200,809 | 202,783 | 204,817 | 206,911 | 210,756 | 218,040 | 220,329 | 222,686 | 225,114 | 192,986 | 269,871 | ||||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
| CAM | 23,625 | 24,334 | 25,064 | 25,816 | 26,590 | 27,388 | 28,209 | 29,056 | 29,927 | 30,825 | 31,750 | 32,703 | ||||||||||||||||||||||||||||||||||||
| Real Estate Taxes | 40,267 | 41,475 | 42,719 | 44,001 | 45,321 | 46,680 | 48,081 | 49,523 | 51,009 | 52,539 | 54,115 | 55,739 | ||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 63,892 | 65,809 | 67,783 | 69,817 | 71,911 | 74,068 | 76,290 | 78,579 | 80,936 | 83,364 | 85,865 | 88,442 | ||||||||||||||||||||||||||||||||||||
| Net Operating Income | 135,635 | 135,000 | 135,000 | 135,000 | 135,000 | 136,688 | 141,750 | 141,750 | 141,750 | 141,750 | 107,121 | 181,429 | ||||||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 33,750 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 45,357 | 0 | ||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 20,756 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 27,895 | 0 | ||||||||||||||||||||||||||||||||||||
| Capital Expenditures | 78,520 | 6,600 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
| Capital Reserves | 0 | 0 | 2,864 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | 3,737 | ||||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 133,026 | 6,600 | 2,864 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 76,881 | 3,737 | ||||||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 2,609 | $ | 128,400 | $ | 132,136 | $ | 132,050 | $ | 131,961 | $ | 133,558 | $ | 138,526 | $ | 138,429 | $ | 138,330 | $ | 138,227 | $ | 30,240 | $ | 177,692 | ||||||||||||||||||||||||
| 61 |
| Walgreens | |||||||||||
| Discounted Cash Flow Analysis - Scenario 1 | |||||||||||
| As of December 31, 2013 | |||||||||||
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.50% | |||||||
| Year 1 | Dec-14 | $ | 2,609 | $ | 2,427 | ||||||
| Year 2 | Dec-15 | 128,400 | 111,109 | ||||||||
| Year 3 | Dec-16 | 132,136 | 106,364 | ||||||||
| Year 4 | Dec-17 | 132,050 | 98,879 | ||||||||
| Year 5 | Dec-18 | 131,961 | 91,919 | ||||||||
| Year 6 | Dec-19 | 133,558 | 86,540 | ||||||||
| Year 7 | Dec-20 | 138,526 | 83,497 | ||||||||
| Year 8 | Dec-21 | 138,429 | 77,617 | ||||||||
| Year 9 | Dec-22 | 138,330 | 72,151 | ||||||||
| Year 10 | Dec-23 | 138,227 | 67,067 | ||||||||
| Year 11 | Dec-24 | 30,240 | 13,649 | ||||||||
| Total Cash Flow | $ | 1,244,466 | $ | 811,219 | |||||||
| Property Resale @ 6.75% | 2,634,080 | 1,188,874 | |||||||||
| Total Property Present Value | $ | 2,000,093 | |||||||||
| Rounded | $ | 2,000,000 | |||||||||
| Per Square Foot | $ | 148.15 | |||||||||
| 62 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 78,520 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.00 | % | ||
| Terminal Capitalization Rate: | 6.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,040,000 | ||
| Value PSF of NRA: | $ | 151.11 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 10.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 63 |
| Walgreens | ||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow -Scenario 2 | ||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 168,784 | $ | 135,000 | $ | 135,000 | $ | 135,000 | $ | 135,000 | $ | 143,960 | $ | 156,502 | $ | 156,502 | $ | 156,502 | $ | 156,502 | $ | 158,458 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | (26,084 | ) | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 168,784 | 135,000 | 135,000 | 135,000 | 135,000 | 117,876 | 156,502 | 156,502 | 156,502 | 156,502 | 158,458 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 63,892 | 65,809 | 67,783 | 69,817 | 71,911 | 61,723 | 76,290 | 78,579 | 80,936 | 83,364 | 85,865 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 232,676 | 200,809 | 202,783 | 204,817 | 206,911 | 179,599 | 232,792 | 235,081 | 237,438 | 239,866 | 244,323 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 232,676 | 200,809 | 202,783 | 204,817 | 206,911 | 179,599 | 232,792 | 235,081 | 237,438 | 239,866 | 244,323 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 23,625 | 24,334 | 25,064 | 25,816 | 26,590 | 27,388 | 28,209 | 29,056 | 29,927 | 30,825 | 31,750 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 40,267 | 41,475 | 42,719 | 44,001 | 45,321 | 46,680 | 48,081 | 49,523 | 51,009 | 52,539 | 54,115 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 63,892 | 65,809 | 67,783 | 69,817 | 71,911 | 74,068 | 76,290 | 78,579 | 80,936 | 83,364 | 85,865 | |||||||||||||||||||||||||||||||||
Net Operating Income | 168,784 | 135,000 | 135,000 | 135,000 | 135,000 | 105,531 | 156,502 | 156,502 | 156,502 | 156,502 | 158,458 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 39,126 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 24,062 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 78,520 | 6,600 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 0 | 0 | 2,864 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 78,520 | 6,600 | 2,864 | 2,950 | 3,039 | 66,318 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 90,264 | $ | 128,400 | $ | 132,136 | $ | 132,050 | $ | 131,961 | $ | 39,213 | $ | 153,278 | $ | 153,181 | $ | 153,082 | $ | 152,979 | $ | 154,829 | ||||||||||||||||||||||
| 64 |
| Walgreens | ||||||||||||||||
| Discounted Cash Flow Analysis - Scenario 2 | ||||||||||||||||
| As of December 31, 2013 | ||||||||||||||||
| For the | PV of Cash | |||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||
| Period | Ending | Flow | @ | 7.00% | ||||||||
| Year 1 | Dec-14 | $ | 90,264 | $ | 84,359 | |||||||
| Year 2 | Dec-15 | 128,400 | 112,150 | |||||||||
| Year 3 | Dec-16 | 132,136 | 107,862 | |||||||||
| Year 4 | Dec-17 | 132,050 | 100,740 | |||||||||
| Year 5 | Dec-18 | 131,961 | 94,086 | |||||||||
| Year 6 | Dec-19 | 39,213 | 26,129 | |||||||||
| Year 7 | Dec-20 | 153,278 | 95,454 | |||||||||
| Year 8 | Dec-21 | 153,181 | 89,153 | |||||||||
| Year 9 | Dec-22 | 153,082 | 83,266 | |||||||||
| Year 10 | Dec-23 | 152,979 | 77,767 | |||||||||
| Total Cash Flow | $ | 1,266,544 | $ | 870,967 | ||||||||
| Property Resale @ 6.75% | 2,300,575 | 1,169,496 | ||||||||||
| Total Property Present Value | $ | 2,040,462 | ||||||||||
| Rounded | $ | 2,040,000 | ||||||||||
| Per Square Foot | $ | 151.11 | ||||||||||
| 65 |
| Comparable Sales | ||||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Walgreens | 6320 N Eldridge Pky | Houston | TX | 14,820 | $ | 5,500,000 | $ | 371.12 | 9/20/2013 | $ | 309,100 | 5.62 | % | |||||||||||||||||||
| Walgreens | 1207 N Randall Rd | Aurora | IL | 13,905 | $ | 2,701,150 | $ | 194.26 | 9/18/2012 | $ | 235,000 | 8.70 | % | |||||||||||||||||||
| Walgreens | 515 Carlyle Ave | Belleville | IL | 12,848 | $ | 3,478,500 | $ | 270.74 | 12/28/2012 | $ | 274,802 | 7.90 | % | |||||||||||||||||||
| Walgreens | 9301 Waukegan Rd | Morton Grove | IL | 14,440 | $ | 3,850,000 | $ | 266.62 | 12/19/2012 | $ | 301,840 | 7.84 | % | |||||||||||||||||||
| Walgreens | 1701 E Kensington Rd | Mount Prospect | IL | 15,120 | $ | 3,820,000 | $ | 252.65 | 4/22/2013 | $ | 286,500 | 7.50 | % | |||||||||||||||||||
| Walgreens | 198 E Main St | Hendersonville | TN | 13,500 | $ | 2,550,000 | $ | 188.89 | 10/31/2013 | $ | 202,470 | 7.94 | % | |||||||||||||||||||
| Walgreens | 3301 Denton Hwy | Haltom City | TX | 13,905 | $ | 4,394,118 | $ | 316.01 | 4/26/2013 | $ | 298,800 | 6.80 | % | |||||||||||||||||||
| Walgreens | 746 W University Dr | Mesa | AZ | 15,120 | $ | 3,561,000 | $ | 235.52 | 2/7/2013 | $ | 267,075 | 7.50 | % | |||||||||||||||||||
| Walgreens | 9285 Halls Ferry Rd | Jennings | MO | 15,120 | $ | 2,250,000 | $ | 148.81 | 8/1/2012 | $ | 187,875 | 8.35 | % | |||||||||||||||||||
| Walgreens | 13255 Atlantic Blvd | Jacksonville | FL | 13,960 | $ | 3,575,000 | $ | 256.09 | 5/31/2012 | $ | 260,975 | 7.30 | % | |||||||||||||||||||
| Walgreens | 15301 E Mississippi Ave | Aurora | CO | 17,548 | $ | 3,250,000 | $ | 185.21 | 5/2/2012 | $ | 208,975 | 6.43 | % | |||||||||||||||||||
| Walgreens | 9020 Biscayne Blvd | Miami Shores | FL | 14,850 | $ | 2,900,000 | $ | 195.29 | 1/2/2012 | $ | 202,130 | 6.97 | % | |||||||||||||||||||
| Min | $ | 148.81 | 5.62 | % | ||||||||||||||||||||||||||||
| Max | $ | 371.12 | 8.70 | % | ||||||||||||||||||||||||||||
| Average | $ | 240.10 | 7.40 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $140.00 to $170.00 per square foot | |||||||||||||||||||||||||||||||
| 66 |
PT1008 – Walgreens – Cleveland, OH
| 67 |
| BASIC INFORMATION | ||||||
| Property Name: | Walgreens | Report Type: | Restricted Appraisal Report | |||
| Address: | 15609 Lakeshore Blvd | Interest Appraised: | Leased Fee | |||
| City: | Cleveland | Value Premise: | Market Value | |||
| State: | OH | Date of Value- "As Is": | December 31, 2013 | |||
| County: | Cuyahoga | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 44110 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.45 | Frontage: | Average | |||
| Gross Land Area (sf): | 63,162 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 390104 0079 E | Location Rating: | Average | |||
| FEMA Map Date: | 12/3/2010 | Number of Parking Spaces: | 63 | |||
| Parking Ratio (per 1,000 SF): | 4.67 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1994 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 13,500 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 13,500 | Actual Age (years): | 20 | |||
| # of Buildings: | 1 | Tenant: | Walgreens | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.68 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 113-01-007 | Zoning Municipality: | City of Cleveland | |||
| Taxing Authority/Jurisdiction: | Cuyahoga County | Current Zoning: | LR, Local Retail Business | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $489,480 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $48,514 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $3.59 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Walgreens | Current Rent $/sf: | $13.23 | |||
| Tenant S&P Rating: | BBB | Rent Bump Date: | None | |||
| Lease Expiration: | September 30, 2014 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 12/31/2025 at | |||
| Landlord pays CapEx | $13,378/mo. ($11.89/sf). These terms are utilized in our | |||||
| Occupancy: | 100% | second scenario with the new rent assumed to begin | ||||
| 7/1/2014. | ||||||
| VALUATION SUMMARY – SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,550,000 | |||
| Sales Comparison Approach: | $170.00 to $200.00 per square foot | Value PSF of NRA: | $188.89 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,550,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 6.25% | |||||
| Discount Rate: | 7.00% | Market Rent $/sf: | $12.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $13.23 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,430,000 | |||
| Sales Comparison Approach: | $170.00 to $200.00 per square foot | Value PSF of NRA: | $180.00 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,430,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 6.25% | |||||
| Discount Rate: | 6.50% | Market Rent $/sf: | $12.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $13.23 | |||
| Expense Growth | 3.00% | |||||
| 68 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 11 | |||
| Reversion Year (Yrs): | 12 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 61,358 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.00 | % | ||
| Terminal Capitalization Rate: | 6.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,550,000 | ||
| Value PSF of NRA: | $ | 188.89 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 12.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 69 |
| Walgreens | ||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow - Scenario 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | Year 12 | |||||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | Dec-2025 | ||||||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 174,454 | $ | 162,000 | $ | 162,000 | $ | 162,000 | $ | 162,000 | $ | 162,675 | $ | 170,100 | $ | 170,100 | $ | 170,100 | $ | 170,100 | $ | 174,068 | $ | 224,246 | ||||||||||||||||||||||||
| Absorption & Turnover Vacancy | (27,000 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (18,143 | ) | (18,687 | ) | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 147,454 | 162,000 | 162,000 | 162,000 | 162,000 | 162,675 | 170,100 | 170,100 | 170,100 | 170,100 | 155,925 | 205,559 | ||||||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 60,115 | 74,303 | 76,533 | 78,829 | 81,193 | 83,629 | 86,137 | 88,722 | 91,383 | 94,125 | 88,870 | 91,535 | ||||||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 207,569 | 236,303 | 238,533 | 240,829 | 243,193 | 246,304 | 256,237 | 258,822 | 261,483 | 264,225 | 244,795 | 297,094 | ||||||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 207,569 | 236,303 | 238,533 | 240,829 | 243,193 | 246,304 | 256,237 | 258,822 | 261,483 | 264,225 | 244,795 | 297,094 | ||||||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
| CAM | 23,625 | 24,334 | 25,064 | 25,816 | 26,590 | 27,388 | 28,209 | 29,056 | 29,927 | 30,825 | 31,750 | 32,703 | ||||||||||||||||||||||||||||||||||||
| Real Estate Taxes | 48,514 | 49,969 | 51,469 | 53,013 | 54,603 | 56,241 | 57,928 | 59,666 | 61,456 | 63,300 | 65,199 | 67,155 | ||||||||||||||||||||||||||||||||||||
| Total Operating Expenses | 72,139 | 74,303 | 76,533 | 78,829 | 81,193 | 83,629 | 86,137 | 88,722 | 91,383 | 94,125 | 96,949 | 99,858 | ||||||||||||||||||||||||||||||||||||
| Net Operating Income | 135,430 | 162,000 | 162,000 | 162,000 | 162,000 | 162,675 | 170,100 | 170,100 | 170,100 | 170,100 | 147,846 | 197,236 | ||||||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 33,750 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 46,718 | ||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 24,908 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34,478 | ||||||||||||||||||||||||||||||||||||
| Capital Expenditures | 0 | 0 | 60,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
| Capital Reserves | 2,700 | 2,781 | 0 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | 3,737 | ||||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 61,358 | 2,781 | 60,000 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | 84,933 | ||||||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 74,072 | $ | 159,219 | $ | 102,000 | $ | 159,050 | $ | 158,961 | $ | 159,545 | $ | 166,876 | $ | 166,779 | $ | 166,680 | $ | 166,577 | $ | 144,217 | $ | 112,303 | ||||||||||||||||||||||||
| 70 |
| Walgreens | ||||||||||||||
| Discounted Cash Flow Analysis - Scenario 1 | ||||||||||||||
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.00% | |||||||
| Year 1 | Dec-14 | $ | 74,072 | $ | 69,226 | ||||||
| Year 2 | Dec-15 | 159,219 | 139,068 | ||||||||
| Year 3 | Dec-16 | 102,000 | 83,262 | ||||||||
| Year 4 | Dec-17 | 159,050 | 121,338 | ||||||||
| Year 5 | Dec-18 | 158,961 | 113,337 | ||||||||
| Year 6 | Dec-19 | 159,545 | 106,312 | ||||||||
| Year 7 | Dec-20 | 166,876 | 103,922 | ||||||||
| Year 8 | Dec-21 | 166,779 | 97,067 | ||||||||
| Year 9 | Dec-22 | 166,680 | 90,663 | ||||||||
| Year 10 | Dec-23 | 166,577 | 84,679 | ||||||||
| Year 11 | Dec-24 | 144,217 | 68,516 | ||||||||
| Total Cash Flow | $ | 1,623,976 | $ | 1,077,391 | |||||||
| Property Resale @ 6.25% | 3,092,660 | 1,469,301 | |||||||||
| Total Property Present Value | $ | 2,546,692 | |||||||||
| Rounded | $ | 2,550,000 | |||||||||
| Per Square Foot | $ | 188.89 | |||||||||
| 71 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,700 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 6.50 | % | ||
| Terminal Capitalization Rate: | 6.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,430,000 | ||
| Value PSF of NRA: | $ | 180.00 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 12.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 72 |
| Walgreens | ||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow - Scenario 2 | ||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 169,560 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | $ | 160,515 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 169,560 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 72,139 | 74,303 | 76,533 | 78,829 | 81,193 | 83,629 | 86,137 | 88,722 | 91,383 | 94,125 | 96,949 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 241,699 | 234,818 | 237,048 | 239,344 | 241,708 | 244,144 | 246,652 | 249,237 | 251,898 | 254,640 | 257,464 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 241,699 | 234,818 | 237,048 | 239,344 | 241,708 | 244,144 | 246,652 | 249,237 | 251,898 | 254,640 | 257,464 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 23,625 | 24,334 | 25,064 | 25,816 | 26,590 | 27,388 | 28,209 | 29,056 | 29,927 | 30,825 | 31,750 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 48,514 | 49,969 | 51,469 | 53,013 | 54,603 | 56,241 | 57,928 | 59,666 | 61,456 | 63,300 | 65,199 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 72,139 | 74,303 | 76,533 | 78,829 | 81,193 | 83,629 | 86,137 | 88,722 | 91,383 | 94,125 | 96,949 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 169,560 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | 160,515 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 0 | 0 | 60,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,700 | 2,781 | 0 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,700 | 2,781 | 60,000 | 2,950 | 3,039 | 3,130 | 3,224 | 3,321 | 3,420 | 3,523 | 3,629 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 166,860 | $ | 157,734 | $ | 100,515 | $ | 157,565 | $ | 157,476 | $ | 157,385 | $ | 157,291 | $ | 157,194 | $ | 157,095 | $ | 156,992 | $ | 156,886 | ||||||||||||||||||||||
| 73 |
| Walgreens | ||||||||||||||
| Discounted Cash Flow Analysis - Scenario 2 | ||||||||||||||
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 6.50% | |||||||
| Year 1 | Dec-14 | $ | 166,860 | $ | 156,676 | ||||||
| Year 2 | Dec-15 | 157,734 | 139,068 | ||||||||
| Year 3 | Dec-16 | 100,515 | 83,211 | ||||||||
| Year 4 | Dec-17 | 157,565 | 122,479 | ||||||||
| Year 5 | Dec-18 | 157,476 | 114,939 | ||||||||
| Year 6 | Dec-19 | 157,385 | 107,861 | ||||||||
| Year 7 | Dec-20 | 157,291 | 101,218 | ||||||||
| Year 8 | Dec-21 | 157,194 | 94,982 | ||||||||
| Year 9 | Dec-22 | 157,095 | 89,128 | ||||||||
| Year 10 | Dec-23 | 156,992 | 83,634 | ||||||||
| Total Cash Flow | $ | 1,526,107 | $ | 1,093,195 | |||||||
| Property Resale @ 6.25% | 2,516,875 | 1,340,805 | |||||||||
| Total Property Present Value | $ | 2,434,000 | |||||||||
| Rounded | $ | 2,430,000 | |||||||||
| Per Square Foot | $ | 180.00 | |||||||||
| 74 |
| Comparable Sales | ||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Walgreens | 6320 N Eldridge Pky | Houston | TX | 14,820 | $ | 5,500,000 | $ | 371.12 | 9/20/2013 | $ | 309,100 | 5.62 | % | |||||||||||||||||
| Walgreens | 198 E Main St | Hendersonville | TN | 13,500 | $ | 2,550,000 | $ | 188.89 | 10/31/2013 | $ | 202,470 | 7.94 | % | |||||||||||||||||
| Walgreens | 1000 E Cumberland Gap Pky | Corbin | KY | 13,650 | $ | 4,514,000 | $ | 330.70 | 7/19/2013 | $ | 282,125 | 6.25 | % | |||||||||||||||||
| Walgreens | 3301 Denton Hwy | Haltom City | TX | 13,905 | $ | 4,394,118 | $ | 316.01 | 4/26/2013 | $ | 298,800 | 6.80 | % | |||||||||||||||||
| Walgreens | 9290 Wicker Ave | Saint John | IN | 13,905 | $ | 3,530,864 | $ | 253.93 | 3/24/2013 | $ | 286,000 | 8.10 | % | |||||||||||||||||
| Walgreens | 746 W University Dr | Mesa | AZ | 15,120 | $ | 3,561,000 | $ | 235.52 | 2/7/2013 | $ | 267,075 | 7.50 | % | |||||||||||||||||
| Walgreens | 9285 Halls Ferry Rd | Jennings | MO | 15,120 | $ | 2,250,000 | $ | 148.81 | 8/1/2012 | $ | 187,875 | 8.35 | % | |||||||||||||||||
| Walgreens | 13255 Atlantic Blvd | Jacksonville | FL | 13,960 | $ | 3,575,000 | $ | 256.09 | 5/31/2012 | $ | 260,975 | 7.30 | % | |||||||||||||||||
| Walgreens | 15301 E Mississippi Ave | Aurora | CO | 17,548 | $ | 3,250,000 | $ | 185.21 | 5/2/2012 | $ | 208,975 | 6.43 | % | |||||||||||||||||
| Walgreens | 25016 Gratiot Ave | Eastpointe | MI | 15,120 | $ | 3,800,000 | $ | 251.32 | 1/20/2012 | $ | 349,600 | 9.20 | % | |||||||||||||||||
| Walgreens | 9020 Biscayne Blvd | Miami Shores | FL | 14,850 | $ | 2,900,000 | $ | 195.29 | 1/2/2012 | $ | 202,130 | 6.97 | % | |||||||||||||||||
| Min | $ | 148.81 | 5.62 | % | ||||||||||||||||||||||||||
| Max | $ | 371.12 | 9.20 | % | ||||||||||||||||||||||||||
| Average | $ | 248.44 | 7.31 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $170.00 to $200.00 per square foot | |||||||||||||||||||||||||||||
| 75 |
PT1010 – Lowe’s – Jonesboro, AR
| 76 |
| BASIC INFORMATION | ||||||
| Property Name: | Lowe’s | Report Type: | Restricted Appraisal Report | |||
| Address: | 2111 Fair Park Blvd. | Interest Appraised: | Leased Fee | |||
| City: | Jonesboro | Value Premise: | Market Value | |||
| State: | AR | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Craighead | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 72401 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 12.16 | Frontage: | Good | |||
| Gross Land Area (sf): | 529,690 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Irregular | |||
| FEMA Community Map #: | 050048 ‘0132C - per map- lookup says uninc. | Location Rating: | Average | |||
| FEMA Map Date: | 9/27/1991 | Number of Parking Spaces: | 632 | |||
| Parking Ratio (per 1,000 SF): | 5.00 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1994 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 126,405 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 126,405 | Actual Age (years): | 20 | |||
| # of Buildings: | 1 | Tenant: | Lowe’s | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.19 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 01-144282-03400 | Zoning Municipality: | City of Jonesboro | |||
| Taxing Authority/Jurisdiction: | Craighead County | Current Zoning: | C3, General Commercial | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,524,420 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $64,331 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $0.51 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. |
| LEASE SUMMARY | ||||||
| Tenant: | Lowe’s | Current Rent $/sf: | $5.97 | |||
| Tenant S&P Rating: | A- | Rent Bump Date: | February 1, 2014 | |||
| Lease Expiration: | January 31, 2024 | Rent at Bump Date $/sf: | $5.81 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $10,810,000 | |||
| Sales Comparison Approach: | $80.00 to $90.00 per square foot | Value PSF of NRA: | $85.52 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $10,810,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 6.25% | |||||
| Market Rent $/sf: | $6.00 | |||||
| Contract Rent $/sf: | $5.97 | |||||
| 77 |
| Lowe’s |
| Direct Capitalization Approach |
| As of December 31, 2013 |
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 736,304 | $ | 5.82 | ||||
| Expense Reimbursement Revenue | 287,469 | 2.27 | ||||||
| Total Potential Gross Revenue | $ | 1,023,773 | $ | 8.10 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 1,023,773 | $ | 8.10 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 221,209 | $ | 1.75 | ||||
| Real Estate Taxes | 66,260 | 0.52 | ||||||
| Total Operating Expenses | $ | 287,469 | $ | 2.27 | ||||
| Capital Reserves | $ | 25,281 | 0.20 | |||||
| Net Operating Income | $ | 711,023 | $ | 5.62 | ||||
| Overall Capitalization Rate | 6.25 | % | ||||||
| Indicated Property Value | $ | 11,376,363 | $ | 90.00 | ||||
| Less: Capital Expenditures | $ | 540,000 | $ | 4.27 | ||||
| Indicated Property Value (Rounded) | $ | 10,810,000 | $ | 85.52 | ||||
| 78 |
| Comparable Sales |
| Property | Square | �� | Estimated | ||||||||||||||||||||||||||
| Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Lowe’s | 945 Fangboner Rd | Fremont | OH | 125,357 | $ | 9,225,000 | $ | 73.59 | 12/11/2013 | $ | 649,440 | 7.04 | % | ||||||||||||||||
| Lowe’s | 4900 Oscar Baxter Dr | Tuscaloosa | AL | 115,236 | $ | 9,818,000 | $ | 85.20 | 10/29/2013 | $ | 603,807 | 6.15 | % | ||||||||||||||||
| Lowe’s | 7441 Two Notch Rd | Columbia | SC | 121,148 | $ | 11,940,000 | $ | 98.56 | 10/4/2013 | $ | 889,530 | 7.45 | % | ||||||||||||||||
| Lowe’s | 1369 Division St | Adrian | MI | 101,287 | $ | 8,025,000 | $ | 79.23 | 9/27/2013 | $ | 650,025 | 8.10 | % | ||||||||||||||||
| Lowe’s | 2470 Whiskey Rd | Aiken | SC | 135,197 | $ | 10,600,000 | $ | 78.40 | 8/21/2013 | $ | 795,000 | 7.50 | % | ||||||||||||||||
| Lowe’s | 1836 US Highway 78 E | Oxford | AL | 135,197 | $ | 11,250,000 | $ | 83.21 | 7/12/2013 | $ | 875,250 | 7.78 | % | ||||||||||||||||
| Lowe’s | 1955 Buford Mill Dr | Buford | GA | 128,997 | $ | 13,125,000 | $ | 101.75 | 11/1/2011 | $ | 1,030,313 | 7.85 | % | ||||||||||||||||
| Lowe’s | 2900 Martins Dr | West Carrollton | OH | 125,357 | $ | 11,650,000 | $ | 92.93 | 9/9/2011 | $ | 856,275 | 7.35 | % | ||||||||||||||||
| Min | $ | 73.59 | 6.15 | % | |||||||||||||||||||||||||
| Max | $ | 101.75 | 8.10 | % | |||||||||||||||||||||||||
| Average | $ | 86.61 | 7.40 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $80.00 to $90.00 per square foot | ||||||||||||||||||||||||||||
| 79 |
PT1011 – Lowe’s – Texas City, TX
| 80 |
| BASIC INFORMATION | ||||||
| Property Name: | Lowe’s | Report Type: | Restricted Appraisal Report | |||
| Address: | 3620 Emmett F Lowry Expy | Interest Appraised: | Leased Fee | |||
| City: | Texas City | Value Premise: | Market Value | |||
| State: | TX | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Galveston | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 77590 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 16.32 | Frontage: | Good | |||
| Gross Land Area (sf): | 710,899 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | B | Shape: | Regular | |||
| FEMA Community Map #: | 485514 0030C | Location Rating: | Average | |||
| FEMA Map Date: | 5/2/1983 | Number of Parking Spaces: | 776 | |||
| Parking Ratio (per 1,000 SF): | 5.95 | |||||
| Parking Type: | Paved open surface parking |
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1995 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 130,497 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 130,497 | Actual Age (years): | 19 | |||
| # of Buildings: | 1 | Tenant: | Lowe’s | |||
| # of Stories: | 1 | Land to Building Ratio: | 5.45 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 4827-0000-0000-001 | Zoning Municipality: | City of Texas City | |||
| Taxing Authority/Jurisdiction: | Galveston County | Current Zoning: | E, General Business | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $5,300,000 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $131,653 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.01 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. |
| LEASE SUMMARY | ||||||
| Tenant: | Lowe’s | Current Rent $/sf: | $6.61 | |||
| Tenant S&P Rating: | A- | Rent Bump Date: | None | |||
| Lease Expiration: | October 31, 2020 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% |
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $12,490,000 | |||
| Sales Comparison Approach: | $85.00 to $100.00 per square foot | Value PSF of NRA: | $95.71 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $12,490,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 6.50% | |||||
| Discount Rate: | 6.75% | Market Rent $/sf: | $7.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $6.61 | |||
| Expense Growth: | 3.00% |
| 81 |
| DISCOUNTED CASH FLOW ASSUMPTIONS |
| General Cash Flow Assumptions |
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 |
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 237,500 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 6.75 | % | ||
| Terminal Capitalization Rate: | 6.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 12,490,000 | ||
| Value PSF of NRA: | $ | 95.71 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 7.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
*The tenant has multiple extension options. Based on our analysis, we have assumed the first option at $6.61/sf is exercised since it is deemed to be below market.
| 82 |
| Lowe’s |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | $ | 862,585 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 360,023 | 370,824 | 381,948 | 393,407 | 405,209 | 417,365 | 429,886 | 442,783 | 456,066 | 469,748 | 483,841 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 1,222,608 | 1,233,409 | 1,244,533 | 1,255,992 | 1,267,794 | 1,279,950 | 1,292,471 | 1,305,368 | 1,318,651 | 1,332,333 | 1,346,426 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 1,222,608 | 1,233,409 | �� | 1,244,533 | 1,255,992 | 1,267,794 | 1,279,950 | 1,292,471 | 1,305,368 | 1,318,651 | 1,332,333 | 1,346,426 | ||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 228,370 | 235,221 | 242,277 | 249,546 | 257,032 | 264,743 | 272,685 | 280,866 | 289,292 | 297,971 | 306,910 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 131,653 | 135,603 | 139,671 | 143,861 | 148,177 | 152,622 | 157,201 | 161,917 | 166,774 | 171,777 | 176,931 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 360,023 | 370,824 | 381,948 | 393,407 | 405,209 | 417,365 | 429,886 | 442,783 | 456,066 | 469,748 | 483,841 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | 862,585 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | 237,500 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 0 | 26,882 | 27,689 | 28,520 | 29,375 | 30,256 | 31,164 | 32,099 | 33,062 | 34,054 | 35,075 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 237,500 | 26,882 | 27,689 | 28,520 | 29,375 | 30,256 | 31,164 | 32,099 | 33,062 | 34,054 | 35,075 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 625,085 | $ | 835,703 | $ | 834,896 | $ | 834,065 | $ | 833,210 | $ | 832,329 | $ | 831,421 | $ | 830,486 | $ | 829,523 | $ | 828,531 | $ | 827,510 | ||||||||||||||||||||||
| 83 |
| Lowe’s |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 6.75% | |||||||
| Year 1 | Dec-14 | $ | 625,085 | $ | 585,560 | ||||||
| Year 2 | Dec-15 | 835,703 | 733,358 | ||||||||
| Year 3 | Dec-16 | 834,896 | 686,323 | ||||||||
| Year 4 | Dec-17 | 834,065 | 642,286 | ||||||||
| Year 5 | Dec-18 | 833,210 | 601,056 | ||||||||
| Year 6 | Dec-19 | 832,329 | 562,455 | ||||||||
| Year 7 | Dec-20 | 831,421 | 526,315 | ||||||||
| Year 8 | Dec-21 | 830,486 | 492,481 | ||||||||
| Year 9 | Dec-22 | 829,523 | 460,805 | ||||||||
| Year 10 | Dec-23 | 828,531 | 431,152 | ||||||||
| Total Cash Flow | $ | 8,115,249 | $ | 5,721,791 | |||||||
| Property Resale @ 6.50% | 13,005,128 | 6,767,617 | |||||||||
| Total Property Present Value | $ | 12,489,408 | |||||||||
| Rounded | $ | 12,490,000 | |||||||||
| Per Square Foot | $ | 95.71 | |||||||||
| 84 |
| Comparable Sales |
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Lowe’s | 945 Fangboner Rd | Fremont | OH | 125,357 | $ | 9,225,000 | $ | 73.59 | 12/11/2013 | $ | 649,440 | 7.04 | % | ||||||||||||||||
| Lowe’s | 4900 Oscar Baxter Dr | Tuscaloosa | AL | 115,236 | $ | 9,818,000 | $ | 85.20 | 10/29/2013 | $ | 603,807 | 6.15 | % | ||||||||||||||||
| Lowe’s | 7441 Two Notch Rd | Columbia | SC | 121,148 | $ | 11,940,000 | $ | 98.56 | 10/4/2013 | $ | 889,530 | 7.45 | % | ||||||||||||||||
| Lowe’s | 1369 Division St | Adrian | MI | 101,287 | $ | 8,025,000 | $ | 79.23 | 9/27/2013 | $ | 650,025 | 8.10 | % | ||||||||||||||||
| Lowe’s | 2470 Whiskey Rd | Aiken | SC | 135,197 | $ | 10,600,000 | $ | 78.40 | 8/21/2013 | $ | 795,000 | 7.50 | % | ||||||||||||||||
| Lowe’s | 1836 US Highway 78 E | Oxford | AL | 135,197 | $ | 11,250,000 | $ | 83.21 | 7/12/2013 | $ | 875,250 | 7.78 | % | ||||||||||||||||
| Lowe’s | 1955 Buford Mill Dr | Buford | GA | 128,997 | $ | 13,125,000 | $ | 101.75 | 11/1/2011 | $ | 1,030,313 | 7.85 | % | ||||||||||||||||
| Lowe’s | 2900 Martins Dr | West Carrollton | OH | 125,357 | $ | 11,650,000 | $ | 92.93 | 9/9/2011 | $ | 856,275 | 7.35 | % | ||||||||||||||||
| Min | $ | 73.59 | 6.15 | % | |||||||||||||||||||||||||
| Max | $ | 101.75 | 8.10 | % | |||||||||||||||||||||||||
| Average | $ | 86.61 | 7.40 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $85.00 to $100.00 per square foot | ||||||||||||||||||||||||||||
| 85 |
PT1013 – CVS – Whiteville, NC
| 86 |
| BASIC INFORMATION | ||||||
| Property Name: | CVS | Report Type: | Restricted Appraisal Report | |||
| Address: | 900 North J.K. Powell Blvd. | Interest Appraised: | Leased Fee | |||
| City: | Whiteville | Value Premise: | Market Value | |||
| State: | NC | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Columbus | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 28472 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.69 | Frontage: | Average | |||
| Gross Land Area (sf): | 73,616 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 370071 0281J | Location Rating: | Average | |||
| FEMA Map Date: | 6/2/2006 | Number of Parking Spaces: | 72 | |||
| Parking Ratio (per 1,000 SF): | 7.16 | |||||
| Parking Type: | Paved open surface parking |
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2004 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 10,055 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 10,055 | Actual Age (years): | 10 | |||
| # of Buildings: | 1 | Tenant: | CVS | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.32 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 088776 | Zoning Municipality: | City of Whiteville | |||
| Taxing Authority/Jurisdiction: | Columbus County | Current Zoning: | B3, Highway Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,191,300 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $15,934 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.58 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. |
| LEASE SUMMARY | ||||||
| Tenant: | CVS | Current Rent $/sf: | $18.51 | |||
| Tenant S&P Rating: | BBB+ | Rent Bump Date: | None | |||
| Lease Expiration: | January 31, 2027 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes and CapEx | Comment: | None | |||
| Occupancy: | 100% |
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,100,000 | |||
| Sales Comparison Approach: | $280.00 to $340.00 per square foot | Value PSF of NRA: | $308.30 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $3,100,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 6.00% | |||||
| Market Rent $/sf: | $20.00 | |||||
| Contract Rent $/sf: | $18.51 |
| 87 |
| CVS |
| Direct Capitalization Approach |
| As of December 31, 2013 |
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 186,150 | $ | 18.51 | ||||
| Expense Reimbursement Revenue | 36,019 | 3.58 | ||||||
| Total Potential Gross Revenue | $ | 222,169 | $ | 22.10 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 222,169 | $ | 22.10 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 17,596 | $ | 1.75 | ||||
| Real Estate Taxes | 16,412 | 1.63 | ||||||
| Capital Reserves | 2,011 | 0.20 | ||||||
| Total Operating Expenses | $ | 36,019 | $ | 3.58 | ||||
| Net Operating Income | $ | 186,150 | $ | 18.51 | ||||
| Overall Capitalization Rate | 6.00 | % | ||||||
| Indicated Property Value | $ | 3,102,504 | $ | 308.55 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 3,100,000 | $ | 308.30 | ||||
| 88 |
| Comparable Sales |
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| CVS | 5190 S Conway Rd | Orlando | FL | 14,145 | $ | 5,066,357 | $ | 358.17 | 11/20/2013 | $ | 354,645 | 7.00 | % | |||||||||||||||||||
| CVS | 3187 S Congress Ave | Lake Worth | FL | 14,376 | $ | 4,700,000 | $ | 326.93 | 5/13/2013 | $ | 329,000 | 7.00 | % | |||||||||||||||||||
| CVS | 609-611 College Rd | Greensboro | NC | 10,000 | $ | 3,117,000 | $ | 311.70 | 3/28/2013 | $ | 194,813 | 6.25 | % | |||||||||||||||||||
| CVS | 707 Church St | Conway | SC | 10,128 | $ | 2,500,000 | $ | 246.84 | 1/30/2013 | $ | 198,500 | 7.94 | % | |||||||||||||||||||
| CVS | 965 Joe Frank Harris Pky SE | Cartersville | GA | 13,225 | $ | 2,616,000 | $ | 197.81 | 10/30/2012 | $ | 163,500 | 6.25 | % | |||||||||||||||||||
| CVS | 912 W Ward St | Douglas | GA | 10,880 | $ | 3,700,000 | $ | 340.07 | 10/8/2012 | $ | 251,970 | 6.81 | % | |||||||||||||||||||
| CVS | 2391 W 68th St | Hialeah | FL | 12,025 | $ | 3,650,000 | $ | 303.53 | 9/14/2012 | $ | 213,525 | 5.85 | % | |||||||||||||||||||
| CVS | 13998 Walsingham Rd | Largo | FL | 11,200 | $ | 4,120,000 | $ | 367.86 | 2/17/2012 | $ | 314,356 | 7.63 | % | |||||||||||||||||||
| Min | $ | 197.81 | 5.85 | % | ||||||||||||||||||||||||||||
| Max | $ | 367.86 | 7.94 | % | ||||||||||||||||||||||||||||
| Average | $ | 306.61 | 6.84 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $280.00 to $340.00 per square foot | |||||||||||||||||||||||||||||||
| 89 |
PT1014 – Rite Aid – Bangor, ME
| 90 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 713 Broadway | Interest Appraised: | Leased Fee | |||
| City: | Bangor | Value Premise: | Market Value | |||
| State: | ME | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Penobscot | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 04401 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.05 | Frontage: | Good | |||
| Gross Land Area (sf): | 89,298 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 230102 0012C | Location Rating: | Average | |||
| FEMA Map Date: | 3/4/2002 | Number of Parking Spaces: | 48 | |||
| Parking Ratio (per 1,000 SF): | 3.66 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1998 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 13,100 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 13,100 | Actual Age (years): | 16 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 6.82 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 1046 | Zoning Municipality: | City of Bangor | |||
| Taxing Authority/Jurisdiction: | City of Bangor | Current Zoning: | S&PS, Shopping and Personal Service | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,137,500 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $44,460 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $3.39 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $27.08 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | June 30, 2018 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 6/30/2028 at | |||
| Landlord pays CapEx | $26,604/mo. ($24.37/sf) to 6/30/2018, $28,599/mo. | |||||
| Occupancy: | 100% | ($26.20/sf) to 6/30/2023, and $30,744/mo. ($28.16/sf) to | ||||
| 6/30/2028. These terms are utilized in our second scenario | ||||||
| with the new rent assumed to begin 7/1/2014. | ||||||
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,960,000 | |||
| Sales Comparison Approach: | $280.00 to $330.00 per square foot | Value PSF of NRA: | $302.29 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,960,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $24.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $27.08 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $4,050,000 | |||
| Sales Comparison Approach: | $280.00 to $330.00 per square foot | Value PSF of NRA: | $309.16 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $4,050,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $24.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $27.08 | |||
| Expense Growth | 3.00% | |||||
| 91 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,620 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,960,000 | ||
| Value PSF of NRA: | $ | 302.29 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 24.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 92 |
| Rite Aid |
| Schedule of Prospective Cash Flow - Scenario 1 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 354,715 | $ | 354,715 | $ | 354,715 | $ | 354,715 | $ | 354,288 | $ | 353,860 | $ | 353,860 | $ | 353,860 | $ | 353,860 | $ | 359,758 | $ | 371,553 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (58,977 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 354,715 | 354,715 | 354,715 | 354,715 | 295,311 | 353,860 | 353,860 | 353,860 | 353,860 | 359,758 | 371,553 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,925 | 23,613 | 24,321 | 25,051 | 21,502 | 26,576 | 27,374 | 28,195 | 29,041 | 29,912 | 30,809 | |||||||||||||||||||||||||||||||||
| RE Tax | 45,127 | 46,481 | 47,875 | 49,311 | 42,326 | 52,315 | 53,884 | 55,501 | 57,166 | 58,880 | 60,647 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 68,052 | 70,094 | 72,196 | 74,362 | 63,828 | 78,891 | 81,258 | 83,696 | 86,207 | 88,792 | 91,456 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 422,767 | 424,809 | 426,911 | 429,077 | 359,139 | 432,751 | 435,118 | 437,556 | 440,067 | 448,550 | 463,009 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 422,767 | 424,809 | 426,911 | 429,077 | 359,139 | 432,751 | 435,118 | 437,556 | 440,067 | 448,550 | 463,009 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,925 | 23,613 | 24,321 | 25,051 | 25,802 | 26,576 | 27,374 | 28,195 | 29,041 | 29,912 | 30,809 | |||||||||||||||||||||||||||||||||
| RE Tax | 45,127 | 46,481 | 47,875 | 49,311 | 50,791 | 52,315 | 53,884 | 55,501 | 57,166 | 58,880 | 60,647 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 68,052 | 70,094 | 72,196 | 74,362 | 76,593 | 78,891 | 81,258 | 83,696 | 86,207 | 88,792 | 91,456 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 354,715 | 354,715 | 354,715 | 354,715 | 282,546 | 353,860 | 353,860 | 353,860 | 353,860 | 359,758 | 371,553 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 36,860 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 54,406 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 85,200 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,620 | 2,699 | 2,780 | 2,863 | 3,037 | 3,128 | 3,222 | 3,319 | 3,419 | 3,521 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,620 | 2,699 | 2,780 | 2,863 | 176,466 | 3,037 | 3,128 | 3,222 | 3,319 | 3,419 | 3,521 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 352,095 | $ | 352,016 | $ | 351,935 | $ | 351,852 | $ | 106,080 | $ | 350,823 | $ | 350,732 | $ | 350,638 | $ | 350,541 | $ | 356,339 | $ | 368,032 | ||||||||||||||||||||||
| 93 |
Rite Aid
Discounted Cash Flow Analysis - Scenario 1
As of December 31, 2013
| For the | PV of Cash | ||||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||||
| Period | Ending | Flow | @ | 9.00% | |||||||||
| Year 1 | Dec-14 | $ | 352,095 | $ | 323,023 | ||||||||
| Year 2 | Dec-15 | 352,016 | 296,285 | ||||||||||
| Year 3 | Dec-16 | 351,935 | 271,758 | ||||||||||
| Year 4 | Dec-17 | 351,852 | 249,261 | ||||||||||
| Year 5 | Dec-18 | 106,080 | 68,945 | ||||||||||
| Year 6 | Dec-19 | 350,823 | 209,184 | ||||||||||
| Year 7 | Dec-20 | 350,732 | 191,862 | ||||||||||
| Year 8 | Dec-21 | 350,638 | 175,973 | ||||||||||
| Year 9 | Dec-22 | 350,541 | 161,399 | ||||||||||
| Year 10 | Dec-23 | 356,339 | 150,521 | ||||||||||
| Total Cash Flow | $ | 3,273,051 | $ | 2,098,212 | |||||||||
| Property Resale @ 8.25% | 4,413,599 | 1,864,352 | |||||||||||
| Total Property Present Value | $ | 3,962,564 | |||||||||||
| Rounded | $ | 3,960,000 | |||||||||||
| Per Square Foot | $ | 302.29 | |||||||||||
| 94 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,620 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Basis Point Spread over OAR: | 0.00 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 4,050,000 | ||
| Value PSF of NRA: | $ | 309.16 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 24.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 95 |
Rite Aid
Schedule of Prospective Cash Flow - Scenario 2
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | �� | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | |||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 336,981 | $ | 319,248 | $ | 319,248 | $ | 319,248 | $ | 330,978 | $ | 342,708 | $ | 342,708 | $ | 342,708 | $ | 342,708 | $ | 355,818 | $ | 368,928 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 336,981 | 319,248 | 319,248 | 319,248 | 330,978 | 342,708 | 342,708 | 342,708 | 342,708 | 355,818 | 368,928 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,925 | 23,613 | 24,321 | 25,051 | 25,802 | 26,576 | 27,374 | 28,195 | 29,041 | 29,912 | 30,809 | |||||||||||||||||||||||||||||||||
| RE Tax | 45,127 | 46,481 | 47,875 | 49,311 | 50,791 | 52,315 | 53,884 | 55,501 | 57,166 | 58,880 | 60,647 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 68,052 | 70,094 | 72,196 | 74,362 | 76,593 | 78,891 | 81,258 | 83,696 | 86,207 | 88,792 | 91,456 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 405,033 | 389,342 | 391,444 | 393,610 | 407,571 | 421,599 | 423,966 | 426,404 | 428,915 | 444,610 | 460,384 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 405,033 | 389,342 | 391,444 | 393,610 | 407,571 | 421,599 | 423,966 | 426,404 | 428,915 | 444,610 | 460,384 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 22,925 | 23,613 | 24,321 | 25,051 | 25,802 | 26,576 | 27,374 | 28,195 | 29,041 | 29,912 | 30,809 | |||||||||||||||||||||||||||||||||
| RE Tax | 45,127 | 46,481 | 47,875 | 49,311 | 50,791 | 52,315 | 53,884 | 55,501 | 57,166 | 58,880 | 60,647 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 68,052 | 70,094 | 72,196 | 74,362 | 76,593 | 78,891 | 81,258 | 83,696 | 86,207 | 88,792 | 91,456 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 336,981 | 319,248 | 319,248 | 319,248 | 330,978 | 342,708 | 342,708 | 342,708 | 342,708 | 355,818 | 368,928 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 85,200 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,620 | 2,699 | 2,780 | 2,863 | 3,037 | 3,128 | 3,222 | 3,319 | 3,419 | 3,521 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,620 | 2,699 | 2,780 | 2,863 | 85,200 | 3,037 | 3,128 | 3,222 | 3,319 | 3,419 | 3,521 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 334,361 | $ | 316,549 | $ | 316,468 | $ | 316,385 | $ | 245,778 | $ | 339,671 | $ | 339,580 | $ | 339,486 | $ | 339,389 | $ | 352,399 | $ | 365,407 | ||||||||||||||||||||||
| 96 |
| Rite Aid |
| Discounted Cash Flow Analysis - Scenario 2 |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||||
| Period | Ending | Flow | @ | 8.50% | |||||||||
| Year 1 | Dec-14 | $ | 334,361 | $ | 308,167 | ||||||||
| Year 2 | Dec-15 | 316,549 | 268,894 | ||||||||||
| Year 3 | Dec-16 | 316,468 | 247,765 | ||||||||||
| Year 4 | Dec-17 | 316,385 | 228,295 | ||||||||||
| Year 5 | Dec-18 | 245,778 | 163,454 | ||||||||||
| Year 6 | Dec-19 | 339,671 | 208,200 | ||||||||||
| Year 7 | Dec-20 | 339,580 | 191,838 | ||||||||||
| Year 8 | Dec-21 | 339,486 | 176,760 | ||||||||||
| Year 9 | Dec-22 | 339,389 | 162,866 | ||||||||||
| Year 10 | Dec-23 | 352,399 | 155,861 | ||||||||||
| Total Cash Flow | $ | 3,240,066 | $ | 2,112,099 | |||||||||
| Property Resale @ 8.25% | 4,382,417 | 1,938,279 | |||||||||||
| Total Property Present Value | $ | 4,050,379 | |||||||||||
| Rounded | $ | 4,050,000 | |||||||||||
| Per Square Foot | $ | 309.16 | |||||||||||
| 97 |
| Comparable Sales |
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Rite Aid | 1080 S West End Blvd | Quakertown | PA | 14,564 | $ | 6,375,000 | $ | 437.72 | 7/10/2013 | $ | 494,063 | 7.75 | % | ||||||||||||||||
| Rite Aid | 317 Main St | Farmington | ME | 14,673 | $ | 5,050,000 | $ | 344.17 | 6/12/2013 | $ | 424,200 | 8.40 | % | ||||||||||||||||
| Rite Aid | 331 Main St | Nashua | NH | 15,086 | $ | 3,262,533 | $ | 216.26 | 2/4/2013 | $ | 277,315 | 8.50 | % | ||||||||||||||||
| The Rite Aid Plaza | 1 S River Rd | Bedford | NH | 23,540 | $ | 3,850,000 | $ | 163.55 | 9/10/2012 | $ | 327,250 | 8.50 | % | ||||||||||||||||
| Rite Aid | 330 River St | Cambridge | MA | 13,777 | $ | 6,675,000 | $ | 484.50 | 2/29/2012 | $ | 440,550 | 6.60 | % | ||||||||||||||||
| Wawa/Rite Aid | 664-668 Haddon Ave | Collingswood | NJ | 9,800 | $ | 2,490,000 | $ | 254.08 | 2/28/2012 | $ | 196,212 | 7.88 | % | ||||||||||||||||
| Rite-Aid | 21 Columbia St | Adams | MA | 10,504 | $ | 1,600,000 | $ | 152.32 | 8/2/2011 | $ | 144,000 | 9.00 | % | ||||||||||||||||
| Rite Aid | 1900 Ocean St | Marshfield | MA | 13,876 | $ | 2,754,000 | $ | 198.47 | 2/14/2011 | $ | 235,467 | 8.55 | % | ||||||||||||||||
| Min | $ | 152.32 | 6.60 | % | |||||||||||||||||||||||||
| Max | $ | 484.50 | 9.00 | % | |||||||||||||||||||||||||
| Average | $ | 281.39 | 8.15 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $280.00 to $330.00 per square foot | ||||||||||||||||||||||||||||
| 98 |
PT1015 – Tractor Supply – Woodstock, VA
| 99 |
| BASIC INFORMATION | ||||||
| Property Name: | Tractor Supply | Report Type: | Restricted Appraisal Report | |||
| Address: | 541 W. Reservoir Rd. | Interest Appraised: | Leased Fee | |||
| City: | Woodstock | Value Premise: | Market Value | |||
| State: | VA | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Shenandoah | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 22664 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | ||||||
| To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | ||||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 3.31 | Frontage: | Average | |||
| Gross Land Area (sf): | 144,184 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 510150 0260C | Location Rating: | Average | |||
| FEMA Map Date: | 7/26/20013 | Number of Parking Spaces: | 98 | |||
| Parking Ratio (per 1,000 SF): | 4.32 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2004 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 22,670 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 22,670 | Actual Age (years): | 10 | |||
| # of Buildings: | 1 | Tenant: | Tractor Supply | |||
| # of Stories: | 1 | Land to Building Ratio: | 6.36 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 6313 | Zoning Municipality: | Town of Woodstock | |||
| Taxing Authority/Jurisdiction: | Shenandoah County & Town of Woodstock | Current Zoning: | B2, Highway Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,029,800 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $12,483 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $0.55 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Tractor Supply | Current Rent $/sf: | $10.19 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | November 1, 2014 | |||
| Lease Expiration: | October 3, 2019 | Rent at Bump Date $/sf: | $11.21 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes and CapEx | Comment: | Currently negotiating lease extension to 12/31/2028 at | |||
| Occupancy: | 100% | $19,250/mo. ($10.19/sf). These terms are utilized in oursecond scenario with the new rent assumed to begin7/1/2014. | ||||
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,000,000 | |||
| Sales Comparison Approach: | $100.00 to $150.00 per square foot | Value PSF of NRA: | $132.33 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,000,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.75% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $10.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $10.19 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,960,000 | |||
| Sales Comparison Approach: | $100.00 to $150.00 per square foot | Value PSF of NRA: | $130.57 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,960,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.50% | |||||
| Discount Rate: | 7.75% | Market Rent $/sf: | $10.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $10.19 | |||
| Expense Growth | 3.00% | |||||
| 100 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,534 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 7.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,000,000 | ||
| Value PSF of NRA: | $ | 132.33 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 10.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NNN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 101 |
Tractor Supply
Schedule of Prospective Cash Flow - Scenario 1
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 234,850 | $ | 254,100 | $ | 254,100 | $ | 254,100 | $ | 254,100 | $ | 256,277 | $ | 270,692 | $ | 270,692 | $ | 270,692 | $ | 270,692 | $ | 270,692 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (65,702 | ) | (22,558 | ) | ||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 234,850 | 254,100 | 254,100 | 254,100 | 254,100 | 190,575 | 248,134 | 270,692 | 270,692 | 270,692 | 270,692 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 39,672 | 40,863 | 42,089 | 43,351 | 44,652 | 34,493 | 43,423 | 48,792 | 50,256 | 51,764 | 53,317 | |||||||||||||||||||||||||||||||||
| RE Tax | 12,858 | 13,244 | 13,641 | 14,050 | 14,472 | 11,179 | 14,074 | 15,814 | 16,288 | 16,777 | 17,280 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 52,530 | 54,107 | 55,730 | 57,401 | 59,124 | 45,672 | 57,497 | 64,606 | 66,544 | 68,541 | 70,597 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 287,380 | 308,207 | 309,830 | 311,501 | 313,224 | 236,247 | 305,631 | 335,298 | 337,236 | 339,233 | 341,289 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 287,380 | 308,207 | 309,830 | 311,501 | 313,224 | 236,247 | 305,631 | 335,298 | 337,236 | 339,233 | 341,289 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 39,673 | 40,863 | 42,089 | 43,351 | 44,652 | 45,991 | 47,371 | 48,792 | 50,256 | 51,764 | 53,317 | |||||||||||||||||||||||||||||||||
| RE Tax | 12,858 | 13,244 | 13,641 | 14,050 | 14,472 | 14,906 | 15,353 | 15,814 | 16,288 | 16,777 | 17,280 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 52,531 | 54,107 | 55,730 | 57,401 | 59,124 | 60,897 | 62,724 | 64,606 | 66,544 | 68,541 | 70,597 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 234,849 | 254,100 | 254,100 | 254,100 | 254,100 | 175,350 | 242,907 | 270,692 | 270,692 | 270,692 | 270,692 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 121,811 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | $ | 49,943 | ||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,534 | 4,670 | 4,810 | 4,954 | 5,103 | 5,256 | 5,414 | 5,576 | 5,744 | 5,916 | 6,093 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,534 | 4,670 | 4,810 | 4,954 | 5,103 | 5,256 | 177,168 | 5,576 | 5,744 | �� | 5,916 | 6,093 | ||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 230,315 | $ | 249,430 | $ | 249,290 | $ | 249,146 | $ | 248,997 | $ | 170,094 | $ | 65,739 | $ | 265,116 | $ | 264,948 | $ | 264,776 | $ | 264,599 | ||||||||||||||||||||||
| 102 |
Tractor Supply
Discounted Cash Flow Analysis - Scenario 1
As of December 31, 2013
| For the | PV of Cash | ||||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||||
| Period | Ending | Flow | @ | 8.50% | |||||||||
| Year 1 | Dec-14 | $ | 230,315 | $ | 212,272 | ||||||||
| Year 2 | Dec-15 | 249,430 | 211,880 | ||||||||||
| Year 3 | Dec-16 | 249,290 | 195,171 | ||||||||||
| Year 4 | Dec-17 | 249,146 | 179,777 | ||||||||||
| Year 5 | Dec-18 | 248,997 | 165,594 | ||||||||||
| Year 6 | Dec-19 | 170,094 | 104,258 | ||||||||||
| Year 7 | Dec-20 | 65,739 | 37,138 | ||||||||||
| Year 8 | Dec-21 | 265,116 | 138,038 | ||||||||||
| Year 9 | Dec-22 | 264,948 | 127,143 | ||||||||||
| Year 10 | Dec-23 | 264,776 | 117,107 | ||||||||||
| Total Cash Flow | $ | 2,257,851 | $ | 1,488,378 | |||||||||
| Property Resale @ 7.75% | 3,422,944 | 1,513,918 | |||||||||||
| Total Property Present Value | $ | 3,002,296 | |||||||||||
| Rounded | $ | 3,000,000 | |||||||||||
| Per Square Foot | $ | 132.33 | |||||||||||
| 103 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,534 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.75 | % | ||
| Terminal Capitalization Rate: | 7.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,960,000 | ||
| Value PSF of NRA: | $ | 130.57 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 10.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 15.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NNN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 104 |
Tractor Supply
Schedule of Prospective Cash Flow - Scenario 2
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | $ | 231,000 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 39,672 | 40,863 | 42,089 | 43,351 | 44,652 | 45,991 | 47,371 | 48,792 | 50,256 | 51,764 | 53,317 | |||||||||||||||||||||||||||||||||
| RE Tax | 12,858 | 13,244 | 13,641 | 14,050 | 14,472 | 14,906 | 15,353 | 15,814 | 16,288 | 16,777 | 17,280 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 52,530 | 54,107 | 55,730 | 57,401 | 59,124 | 60,897 | 62,724 | 64,606 | 66,544 | 68,541 | 70,597 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 283,530 | 285,107 | 286,730 | 288,401 | 290,124 | 291,897 | 293,724 | 295,606 | 297,544 | 299,541 | 301,597 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 283,530 | 285,107 | 286,730 | 288,401 | 290,124 | 291,897 | 293,724 | 295,606 | 297,544 | 299,541 | 301,597 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 39,673 | 40,863 | 42,089 | 43,351 | 44,652 | 45,991 | 47,371 | 48,792 | 50,256 | 51,764 | 53,317 | |||||||||||||||||||||||||||||||||
| RE Tax | 12,858 | 13,244 | 13,641 | 14,050 | 14,472 | 14,906 | 15,353 | 15,814 | 16,288 | 16,777 | 17,280 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 52,531 | 54,107 | 55,730 | 57,401 | 59,124 | 60,897 | 62,724 | 64,606 | 66,544 | 68,541 | 70,597 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 230,999 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | 231,000 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,534 | 4,670 | 4,810 | 4,954 | 5,103 | 5,256 | 5,414 | 5,576 | 5,744 | 5,916 | 6,093 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,534 | 4,670 | 4,810 | 4,954 | 5,103 | 5,256 | 5,414 | 5,576 | 5,744 | 5,916 | 6,093 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 226,465 | $ | 226,330 | $ | 226,190 | $ | 226,046 | $ | 225,897 | $ | 225,744 | $ | 225,586 | $ | 225,424 | $ | 225,256 | $ | 225,084 | $ | 224,907 | ||||||||||||||||||||||
| 105 |
Tractor Supply
Discounted Cash Flow Analysis - Scenario 2
As of December 31, 2013
| For the | PV of Cash | |||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||
| Period | Ending | Flow | @ | 7.75% | ||||||||
| Year 1 | Dec-14 | $ | 226,465 | $ | 210,176 | |||||||
| Year 2 | Dec-15 | 226,330 | 194,943 | |||||||||
| Year 3 | Dec-16 | 226,190 | 180,810 | |||||||||
| Year 4 | Dec-17 | 226,046 | 167,698 | |||||||||
| Year 5 | Dec-18 | 225,897 | 155,534 | |||||||||
| Year 6 | Dec-19 | 225,744 | 144,249 | |||||||||
| Year 7 | Dec-20 | 225,586 | 133,780 | |||||||||
| Year 8 | Dec-21 | 225,424 | 124,069 | |||||||||
| Year 9 | Dec-22 | 225,256 | 115,059 | |||||||||
| Year 10 | Dec-23 | 225,084 | 106,702 | |||||||||
| Total Cash Flow | $ | 2,258,022 | $ | 1,533,019 | ||||||||
| Property Resale @ 7.50% | 3,018,400 | 1,430,883 | ||||||||||
| Total Property Present Value | $ | 2,963,901 | ||||||||||
| Rounded | $ | 2,960,000 | ||||||||||
| Per Square Foot | $ | 130.57 | ||||||||||
| 106 |
| Comparable Sales |
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Tractor Supply | N/A | Macedon | NY | 29,508 | $ | 1,316,000 | $ | 44.60 | Under Contract | $ | 95,475 | 7.25 | % | ||||||||||||||||
| Tractor Supply | N/A | South Hill | VA | 19,097 | $ | 3,130,000 | $ | 163.90 | 6/24/2013 | $ | 219,997 | 7.03 | % | ||||||||||||||||
| Tractor Supply | N/A | Monticello | FL | 19,097 | $ | 2,821,428 | $ | 147.74 | 6/20/2013 | $ | 197,463 | 7.00 | % | ||||||||||||||||
| Tractor Supply | 1649 Columbia Tpke | Castleton On Hudson | NY | 34,000 | $ | 3,548,000 | $ | 104.35 | 4/3/2013 | $ | 313,998 | 8.85 | % | ||||||||||||||||
| Tractor Supply | 142 Mckinley Rd | Beaver Falls | PA | 19,097 | $ | 2,622,000 | $ | 137.30 | 12/27/2012 | $ | 209,760 | 8.00 | % | ||||||||||||||||
| Tractor Supply | 90 Marketplace Dr | Newnan | GA | 19,097 | $ | 3,943,000 | $ | 206.47 | 11/21/2012 | $ | 279,953 | 7.10 | % | ||||||||||||||||
| Tractor Supply Company | 58 Williams Dr | Spencer | WV | 19,127 | $ | 2,945,000 | $ | 153.97 | 11/20/2012 | $ | 209,979 | 7.13 | % | ||||||||||||||||
| Tractor Supply | 276 S Hwy 16 | Denver | NC | 19,097 | $ | 4,209,250 | $ | 220.41 | 4/3/2012 | $ | 331,689 | 7.88 | % | ||||||||||||||||
| Tractor Supply | 1266 Highway 641 S | Paris | TN | 22,670 | $ | 2,250,000 | $ | 99.25 | 12/21/2011 | $ | 189,675 | 8.43 | % | ||||||||||||||||
| Tractor Supply Company | 66-68 Newton St | Greenfield | MA | 19,097 | $ | 3,350,000 | $ | 175.42 | 3/31/2011 | $ | 251,250 | 7.50 | % | ||||||||||||||||
| Min | $ | 44.60 | 7.00 | % | |||||||||||||||||||||||||
| Max | $ | 220.41 | 8.85 | % | |||||||||||||||||||||||||
| Average | $ | 145.34 | 7.62 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $100.00 to $150.00 per square foot | ||||||||||||||||||||||||||||
| 107 |
PT1016 – Sherwin-Williams – Ashtabula, OH
| 108 |
| BASIC INFORMATION | ||||||
| Property Name: | Sherwin-Williams | Report Type: | Restricted Appraisal Report | |||
| Address: | 2375 West Prospect Rd. | Interest Appraised: | Leased Fee | |||
| City: | Ashtabula | Value Premise: | Market Value | |||
| State: | OH | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Ashtabula | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 44004 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.38 | Frontage: | Average | |||
| Gross Land Area (sf): | 103,673 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Irregular | |||
| FEMA Community Map #: | 390010 0155D | Location Rating: | Average | |||
| FEMA Map Date: | 12/18/2007 | Number of Parking Spaces: | 20 | |||
| Parking Ratio (per 1,000 SF): | 3.70 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2003 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 5,400 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 5,400 | Actual Age (years): | 11 | |||
| # of Buildings: | 1 | Tenant: | Sherwin-Williams | |||
| # of Stories: | 1 | Land to Building Ratio: | 19.20 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 48-010-00-021-00 | Zoning Municipality: | Saybrook Township | |||
| Taxing Authority/Jurisdiction: | Ashtabula County | Current Zoning: | C1, Commercial | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $112,570 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $7,101 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.31 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Sherwin-Williams | Current Rent $/sf: | $11.61 | |||
| Tenant S&P Rating: | A | Rent Bump Date: | May 1, 2019 | |||
| Lease Expiration: | April 30, 2024 | Rent at Bump Date $/sf: | $12.77 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $880,000 | |||
| Sales Comparison Approach: | $145.00 to $175.00 per square foot | Value PSF of NRA: | $162.96 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $880,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 7.00% | |||||
| Market Rent $/sf: | $12.50 | |||||
| Contract Rent $/sf: | $11.61 | |||||
| 109 |
Sherwin-Williams
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 62,700 | $ | 11.61 | ||||
| Expense Reimbursement Revenue | 16,764 | 3.10 | ||||||
| Total Potential Gross Revenue | $ | 79,464 | $ | 14.72 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 79,464 | $ | 14.72 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 9,450 | $ | 1.75 | ||||
| Real Estate Taxes | 7,314 | 1.35 | ||||||
| Total Operating Expenses | $ | 16,764 | $ | 3.10 | ||||
| Capital Reserves | $ | 1,080 | 0.20 | |||||
| Net Operating Income | $ | 61,620 | $ | 11.41 | ||||
| Overall Capitalization Rate | 7.00 | % | ||||||
| Indicated Property Value | $ | 880,286 | $ | 163.02 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 880,000 | $ | 162.96 | ||||
| 110 |
Comparable Sales
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Sherwin Williams | 1747 W 5th St | Eureka | MO | 5,000 | $ | 1,375,000 | $ | 275.00 | 6/20/2013 | $ | 103,950 | 7.56 | % | ||||||||||||||||
| Sherwin Williams | 9425 S Delaware Ave | Tulsa | OK | 4,100 | $ | 1,007,500 | $ | 245.73 | 12/5/2012 | $ | 70,525 | 7.00 | % | ||||||||||||||||
| Sherwin Williams | 1171 E Sumner St | Hartford | WI | 4,020 | $ | 750,000 | $ | 186.57 | 9/14/2012 | $ | 52,500 | 7.00 | % | ||||||||||||||||
| Sherwin Williams | 2280 Cooper Foster Park Rd | Lorain | OH | 5,000 | $ | 1,045,000 | $ | 209.00 | 6/13/2012 | $ | 75,763 | 7.25 | % | ||||||||||||||||
| Sherwin Williams | 2940 S Arlington Rd | Akron | OH | 6,240 | $ | 862,000 | $ | 138.14 | 4/27/2012 | $ | 66,805 | 7.75 | % | ||||||||||||||||
| Sherwin Williams | 2208 W Washington St | Stephenville | TX | 5,501 | $ | 880,000 | $ | 159.97 | 3/27/2012 | $ | 66,000 | 7.50 | % | ||||||||||||||||
| Sherwin Williams | 720 High St | Wadsworth | OH | 5,016 | $ | 1,200,000 | $ | 239.23 | 12/29/2011 | $ | 99,240 | 8.27 | % | ||||||||||||||||
| Sherwin Williams | 18179 NE Halsey St | Portland | OR | 4,425 | $ | 1,575,000 | $ | 355.93 | 10/24/2011 | $ | 102,375 | 6.50 | % | ||||||||||||||||
| Sherwin Williams | 2033 W Eisenhower Blvd | Loveland | CO | 6,000 | $ | 1,260,000 | $ | 210.00 | 9/14/2011 | $ | 88,200 | 7.00 | % | ||||||||||||||||
| Min | $ | 138.14 | 6.50 | % | |||||||||||||||||||||||||
| Max | $ | 355.93 | 8.27 | % | |||||||||||||||||||||||||
| Average | $ | 224.40 | 7.31 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $145.00 to $175.00 per square foot | ||||||||||||||||||||||||||||
| 111 |
PT1017 – Sherwin-Williams – Boardman, OH
| 112 |
| BASIC INFORMATION | ||||||
| Property Name: | Sherwin-Williams | Report Type: | Restricted Appraisal Report | |||
| Address: | 4040 South Ave. | Interest Appraised: | Leased Fee | |||
| City: | Boardman | Value Premise: | Market Value | |||
| State: | OH | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Mahoning | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 44512 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.10 | Frontage: | Average | |||
| Gross Land Area (sf): | 47,916 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 390367 0217D | Location Rating: | Average | |||
| FEMA Map Date: | 11/18/2009 | Number of Parking Spaces: | 18 | |||
| Parking Ratio (per 1,000 SF): | 3.00 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2003 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 6,000 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 6,000 | Actual Age (years): | 11 | |||
| # of Buildings: | 1 | Tenant: | Sherwin-Williams | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.99 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 29-011-0-002.06-0 | Zoning Municipality: | Boardman Township | |||
| Taxing Authority/Jurisdiction: | Mahoning County | Current Zoning: | C, Commercial | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $126,080 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $8,807 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.47 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Sherwin-Williams | Current Rent $/sf: | $12.56 | |||
| Tenant S&P Rating: | A | Rent Bump Date: | March 1, 2019 | |||
| Lease Expiration: | February 29, 2024 | Rent at Bump Date $/sf: | $13.81 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $1,060,000 | |||
| Sales Comparison Approach: | $165.00 to $200.00 per square foot | Value PSF of NRA: | $176.67 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $1,060,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 7.00% | |||||
| Market Rent $/sf: | $13.50 | |||||
| Contract Rent $/sf: | $12.56 | |||||
| 113 |
Sherwin-Williams
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 75,348 | $ | 12.56 | ||||
| Expense Reimbursement Revenue | 19,571 | 3.26 | ||||||
| Total Potential Gross Revenue | $ | 94,919 | $ | 15.82 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 94,919 | $ | 15.82 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 10,500 | $ | 1.75 | ||||
| Real Estate Taxes | 9,071 | 1.51 | ||||||
| Total Operating Expenses | $ | 19,571 | $ | 3.26 | ||||
| Capital Reserves | $ | 1,200 | 0.20 | |||||
| Net Operating Income | $ | 74,148 | $ | 12.36 | ||||
| Overall Capitalization Rate | 7.00 | % | ||||||
| Indicated Property Value | $ | 1,059,257 | $ | 176.54 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 1,060,000 | $ | 176.67 | ||||
| 114 |
Comparable Sales
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Sherwin Williams | 1747 W 5th St | Eureka | MO | 5,000 | $ | 1,375,000 | $ | 275.00 | 6/20/2013 | $ | 103,950 | 7.56 | % | ||||||||||||||||
| Sherwin Williams | 9425 S Delaware Ave | Tulsa | OK | 4,100 | $ | 1,007,500 | $ | 245.73 | 12/5/2012 | $ | 70,525 | 7.00 | % | ||||||||||||||||
| Sherwin Williams | 1171 E Sumner St | Hartford | WI | 4,020 | $ | 750,000 | $ | 186.57 | 9/14/2012 | $ | 52,500 | 7.00 | % | ||||||||||||||||
| Sherwin Williams | 2280 Cooper Foster Park Rd | Lorain | OH | 5,000 | $ | 1,045,000 | $ | 209.00 | 6/13/2012 | $ | 75,763 | 7.25 | % | ||||||||||||||||
| Sherwin Williams | 2940 S Arlington Rd | Akron | OH | 6,240 | $ | 862,000 | $ | 138.14 | 4/27/2012 | $ | 66,805 | 7.75 | % | ||||||||||||||||
| Sherwin Williams | 2208 W Washington St | Stephenville | TX | 5,501 | $ | 880,000 | $ | 159.97 | 3/27/2012 | $ | 66,000 | 7.50 | % | ||||||||||||||||
| Sherwin Williams | 720 High St | Wadsworth | OH | 5,016 | $ | 1,200,000 | $ | 239.23 | 12/29/2011 | $ | 99,240 | 8.27 | % | ||||||||||||||||
| Sherwin Williams | 18179 NE Halsey St | Portland | OR | 4,425 | $ | 1,575,000 | $ | 355.93 | 10/24/2011 | $ | 102,375 | 6.50 | % | ||||||||||||||||
| Sherwin Williams | 2033 W Eisenhower Blvd | Loveland | CO | 6,000 | $ | 1,260,000 | $ | 210.00 | 9/14/2011 | $ | 88,200 | 7.00 | % | ||||||||||||||||
| Min | $ | 138.14 | 6.50 | % | |||||||||||||||||||||||||
| Max | $ | 355.93 | 8.27 | % | |||||||||||||||||||||||||
| Average | $ | 224.40 | 7.31 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $165.00 to $200.00 per square foot | ||||||||||||||||||||||||||||
| 115 |
PT1018 – Sherwin-Williams – Angola, IN
| 116 |
| BASIC INFORMATION | ||||||
| Property Name: | Sherwin-Williams | Report Type: | Restricted Appraisal Report | |||
| Address: | 1902 North Wayne St. | Interest Appraised: | Leased Fee | |||
| City: | Angola | Value Premise: | Market Value | |||
| State: | IN | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Steuben | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 46703 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | .79 | Frontage: | Average | |||
| Gross Land Area (sf): | 34,412 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 180244 0165E | Location Rating: | Average | |||
| FEMA Map Date: | 12/17/2013 | Number of Parking Spaces: | 21 | |||
| Parking Ratio (per 1,000 SF): | 4.19 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2001 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 5,010 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 5,010 | Actual Age (years): | 13 | |||
| # of Buildings: | 1 | Tenant: | Sherwin-Williams | |||
| # of Stories: | 1 | Land to Building Ratio: | 6.87 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 760614430106010000 | Zoning Municipality: | City of Angola | |||
| Taxing Authority/Jurisdiction: | Steuben County | Current Zoning: | C1, Small to Medium General Commercial | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $391,300 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $8,323 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.66 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Sherwin-Williams | Current Rent $/sf: | $18.08 | |||
| Tenant S&P Rating: | A | Rent Bump Date: | April 1, 2020 | |||
| Lease Expiration: | March 31, 2025 | Rent at Bump Date $/sf: | $20.07 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $1,280,000 | |||
| Sales Comparison Approach: | $235.00 to $285.00 per square foot | Value PSF of NRA: | $255.49 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $1,280,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 7.00% | |||||
| Market Rent $/sf: | $18.50 | |||||
| Contract Rent $/sf: | $18.08 | |||||
| 117 |
Sherwin-Williams
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 90,576 | $ | 18.08 | ||||
| Expense Reimbursement Revenue | 17,341 | 3.46 | ||||||
| Total Potential Gross Revenue | $ | 107,917 | $ | 21.54 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 107,917 | $ | 21.54 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 8,768 | $ | 1.75 | ||||
| Real Estate Taxes | 8,573 | 1.71 | ||||||
| Total Operating Expenses | $ | 17,341 | $ | 3.46 | ||||
| Capital Reserves | $ | 1,002 | 0.20 | |||||
| Net Operating Income | $ | 89,574 | $ | 17.88 | ||||
| Overall Capitalization Rate | 7.00 | % | ||||||
| Indicated Property Value | $ | 1,279,629 | $ | 255.41 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 1,280,000 | $ | 255.49 | ||||
| 118 |
Comparable Sales
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Sherwin Williams | 1747 W 5th St | Eureka | MO | 5,000 | $ | 1,375,000 | $ | 275.00 | 6/20/2013 | $ | 103,950 | 7.56 | % | ||||||||||||||||
| Sherwin Williams | 9425 S Delaware Ave | Tulsa | OK | 4,100 | $ | 1,007,500 | $ | 245.73 | 12/5/2012 | $ | 70,525 | 7.00 | % | ||||||||||||||||
| Sherwin Williams | 1171 E Sumner St | Hartford | WI | 4,020 | $ | 750,000 | $ | 186.57 | 9/14/2012 | $ | 52,500 | 7.00 | % | ||||||||||||||||
| Sherwin Williams | 2280 Cooper Foster Park Rd | Lorain | OH | 5,000 | $ | 1,045,000 | $ | 209.00 | 6/13/2012 | $ | 75,763 | 7.25 | % | ||||||||||||||||
| Sherwin Williams | 2940 S Arlington Rd | Akron | OH | 6,240 | $ | 862,000 | $ | 138.14 | 4/27/2012 | $ | 66,805 | 7.75 | % | ||||||||||||||||
| Sherwin Williams | 2208 W Washington St | Stephenville | TX | 5,501 | $ | 880,000 | $ | 159.97 | 3/27/2012 | $ | 66,000 | 7.50 | % | ||||||||||||||||
| Sherwin Williams | 720 High St | Wadsworth | OH | 5,016 | $ | 1,200,000 | $ | 239.23 | 12/29/2011 | $ | 99,240 | 8.27 | % | ||||||||||||||||
| Sherwin Williams | 18179 NE Halsey St | Portland | OR | 4,425 | $ | 1,575,000 | $ | 355.93 | 10/24/2011 | $ | 102,375 | 6.50 | % | ||||||||||||||||
| Sherwin Williams | 2033 W Eisenhower Blvd | Loveland | CO | 6,000 | $ | 1,260,000 | $ | 210.00 | 9/14/2011 | $ | 88,200 | 7.00 | % | ||||||||||||||||
| Min | $ | 138.14 | 6.50 | % | |||||||||||||||||||||||||
| Max | $ | 355.93 | 8.27 | % | |||||||||||||||||||||||||
| Average | $ | 224.40 | 7.31 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $235.00 to $285.00 per square foot | ||||||||||||||||||||||||||||
| 119 |
PT1019 – Apria Healthcare – Indianapolis, IN
| 120 |
| BASIC INFORMATION | ||||||
| Property Name: | Apria Healthcare | Report Type: | Restricted Appraisal Report | |||
| Address: | 7353 Company Dr. | Interest Appraised: | Leased Fee | |||
| City: | Indianapolis | Value Premise: | Market Value | |||
| State: | IN | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Marion | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 46237 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | At the time of sale, the transaction was at or near market levels. To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 8.81 | Frontage: | Average | |||
| Gross Land Area (sf): | 383,764 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Irregular | |||
| FEMA Community Map #: | 108159 0262F | Location Rating: | Average | |||
| FEMA Map Date: | 7/5/2005 | Number of Parking Spaces: | 446 | |||
| Parking Ratio (per 1,000 SF): | 5.39 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Office/Warehouse | Year Built: | 1993 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | 2010 | |||
| Gross Building Area (sf): | 82,750 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 82,750 | Actual Age (years): | 21 | |||
| # of Buildings: | 1 | Tenant: | Apria Healthcare | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.64 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 3011473 | Zoning Municipality: | City of Indianapolis | |||
| Taxing Authority/Jurisdiction: | Marion County | Current Zoning: | I2S, Light Industrial Suburban | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $4,554,800 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $139,371 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.68 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for industrial development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Apria Healthcare | Current Rent $/sf: | $6.84 | |||
| Tenant S&P Rating: | B+ | Rent Bump Date: | March 1, 2014 | |||
| Lease Expiration: | February 28, 2015 | Rent at Bump Date $/sf: | $7.00 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes and CapEx | Comment: | New lease out for signature that extends lease to 2/28/2020 with rent at $6.42/sf for year 1 and increasing 2% per year. | |||
| Occupancy: | 100% | Our analysis incorporates a speculative renewal after the | ||||
| base term expires in February 2015, as it is unknown | ||||||
| whether the aforementioned extension will be executed. | ||||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $5,480,000 | |||
| Sales Comparison Approach: | $60.00 to $70.00 per square foot | Value PSF of NRA: | $66.22 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $5,480,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 9.00% | |||||
| Discount Rate: | 9.50% | Market Rent $/sf: | $6.50 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $6.84 | |||
| Expense Growth: | 3.00% | |||||
| 121 |
| DISCOUNTED CASH FLOW ASSUMPTIONS |
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 0 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.50 | % | ||
| Terminal Capitalization Rate: | 9.00 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 5,480,000 | ||
| Value PSF of NRA: | $ | 66.22 | ||
| Market Leasing Assumptions | ||||
| Flex | ||||
| Market Rent $/sf: | $ | 6.50 | ||
| Rent Escalations: | 2% Annually | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 5.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 122 |
Apria Healthcare
Schedule of Prospective Cash Flow
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 577,043 | $ | 558,217 | $ | 559,551 | $ | 570,742 | $ | 582,157 | $ | 593,800 | $ | 605,676 | $ | 617,790 | $ | 630,146 | $ | 642,749 | $ | 655,604 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | (184,670 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 577,043 | 373,547 | 559,551 | 570,742 | 582,157 | 593,800 | 605,676 | 617,790 | 630,146 | 642,749 | 655,604 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 304,914 | 200,851 | 305,926 | 315,104 | 324,557 | 334,293 | 344,323 | 354,652 | 365,291 | 376,250 | 387,538 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 881,957 | 574,398 | 865,477 | 885,846 | 906,714 | 928,093 | 949,999 | 972,442 | 995,437 | 1,018,999 | 1,043,142 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 881,957 | 574,398 | 865,477 | 885,846 | 906,714 | 928,093 | 949,999 | 972,442 | 995,437 | 1,018,999 | 1,043,142 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 144,813 | 149,157 | 153,632 | 158,241 | 162,988 | 167,877 | 172,914 | 178,101 | 183,444 | 188,947 | 194,616 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 143,552 | 147,859 | 152,294 | 156,863 | 161,569 | 166,416 | 171,409 | 176,551 | 181,847 | 187,303 | 192,922 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 16,550 | 17,047 | 17,558 | 18,085 | 18,627 | 19,186 | 19,762 | 20,354 | 20,965 | 21,594 | 22,242 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 304,915 | 314,063 | 323,484 | 333,189 | 343,184 | 353,479 | 364,085 | 375,006 | 386,256 | 397,844 | 409,780 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 577,042 | 260,335 | 541,993 | 552,657 | 563,530 | 574,614 | 585,914 | 597,436 | 609,181 | 621,155 | 633,362 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 681,860 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 109,193 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 0 | 791,053 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 577,042 | $ | (530,718 | ) | $ | 541,993 | $ | 552,657 | $ | 563,530 | $ | 574,614 | $ | 585,914 | $ | 597,436 | $ | 609,181 | $ | 621,155 | $ | 633,362 | |||||||||||||||||||||
| 123 |
Apria Healthcare
Discounted Cash Flow Analysis
As of December 31, 2013
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.50% | ||||||||||
| Year 1 | Dec-14 | $ | 577,042 | $ | 526,979 | |||||||||
| Year 2 | Dec-15 | (530,718 | ) | (442,625 | ) | |||||||||
| Year 3 | Dec-16 | 541,993 | 412,811 | |||||||||||
| Year 4 | Dec-17 | 552,657 | 384,414 | |||||||||||
| Year 5 | Dec-18 | 563,530 | 357,970 | |||||||||||
| Year 6 | Dec-19 | 574,614 | 333,343 | |||||||||||
| Year 7 | Dec-20 | 585,914 | 310,410 | |||||||||||
| Year 8 | Dec-21 | 597,436 | 289,054 | |||||||||||
| Year 9 | Dec-22 | 609,181 | 269,165 | |||||||||||
| Year 10 | Dec-23 | 621,155 | 250,645 | |||||||||||
| Total Cash Flow | $ | 4,692,804 | $ | 2,692,166 | ||||||||||
| Property Resale @ 9.00% | 6,896,608 | 2,782,879 | ||||||||||||
| Total Property Present Value | $ | 5,475,045 | ||||||||||||
| Rounded | $ | 5,480,000 | ||||||||||||
| Per Square Foot | $ | 66.22 | ||||||||||||
| 124 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Prudhomme Park | 485 Southpoint Cir | Brownsburg | IN | 41,000 | $ | 2,200,000 | $ | 53.66 | 9/16/2013 | N/A | N/A | |||||||||||||||||||
| Acutronic USA, Inc. | 700 Waterfront Dr | Pittsburgh | PA | 53,183 | $ | 5,100,000 | $ | 95.90 | 6/13/2013 | $ | 437,070 | 8.57 | % | |||||||||||||||||
| Questar Assessment | 14720 Energy Way & 5550 Upper 147th St W | Apple Valley | MN | 103,155 | $ | 7,000,000 | $ | 67.86 | 6/6/2013 | $ | 777,700 | 11.11 | % | |||||||||||||||||
| 525 Congressional Boulevard | 525 Congressional Blvd | Carmel | IN | 47,250 | $ | 2,700,000 | $ | 57.14 | 3/22/2013 | N/A | N/A | |||||||||||||||||||
| Central Restaurant Products | 7750 Georgetown Rd | Indianapolis | IN | 102,943 | $ | 5,600,000 | $ | 54.40 | 7/9/2012 | N/A | N/A | |||||||||||||||||||
| Best USA | 65 Inverness Dr E | Englewood | CO | 50,559 | $ | 4,038,385 | $ | 79.87 | 7/6/2011 | $ | 323,071 | 8.00 | % | |||||||||||||||||
| Metro Park North Building | 3001 SE Convenience Blvd | Ankeny | IA | 62,250 | $ | 5,000,000 | $ | 80.32 | Listing | $ | 520,000 | 10.40 | % | |||||||||||||||||
| 2 Property Portfolio | 1185 & 1187 Northfield Dr | Brownsburg | IN | 83,249 | $ | 5,200,000 | $ | 62.46 | Listing | N/A | N/A | |||||||||||||||||||
| Kenny Bernstein Racing | 474 Southpoint Cir | Brownsburg | IN | 41,851 | $ | 3,495,000 | $ | 83.51 | Listing | N/A | N/A | |||||||||||||||||||
| BuzTronics | 4343 W 62nd St | Indianapolis | IN | 63,490 | $ | 3,250,000 | $ | 51.19 | Listing | N/A | N/A | |||||||||||||||||||
| Min | $ | 51.19 | 8.00 | % | ||||||||||||||||||||||||||
| Max | $ | 95.90 | 11.11 | % | ||||||||||||||||||||||||||
| Average | $ | 68.63 | 9.52 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $60.00 to $70.00 per square foot | |||||||||||||||||||||||||||||
| 125 |
PT1020 – Gander Mountain – Houston, TX
| 126 |
| BASIC INFORMATION | ||||||
| Property Name: | Gander Mountain | Report Type: | Restricted Appraisal Report | |||
| Address: | 19820 Hempstead Rd. | Interest Appraised: | Leased Fee | |||
| City: | Houston | Value Premise: | Market Value | |||
| State: | TX | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Harris | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 77065 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 8.17 | Frontage: | Good | |||
| Gross Land Area (sf): | 355,885 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 480287 0440L | Location Rating: | Good | |||
| FEMA Map Date: | 6/18/2007 | Number of Parking Spaces: | 404 | |||
| Parking Ratio (per 1,000 SF): | 4.57 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2004 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 88,492 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 88,492 | Actual Age (years): | 10 | |||
| # of Buildings: | 1 | Tenant: | Gander Mountain | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.02 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 126-261-001-0001 | Zoning Municipality: | N/A | |||
| Taxing Authority/Jurisdiction: | Harris County & Cypress-Fairbanks ISD | Current Zoning: | N/A | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $5,405,008 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $152,007 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.72 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Gander Mountain | Current Rent $/sf: | $12.95 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | November 1, 2014 | |||
| Lease Expiration: | October 31, 2019 | Rent at Bump Date $/sf: | $13.45 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $14,510,000 | |||
| Sales Comparison Approach: | $120.00 to $160.00 per square foot | Value PSF of NRA: | $163.97 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $14,510,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $13.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $12.95 | |||
| Expense Growth: | 3.00% | |||||
| 127 |
| DISCOUNTED CASH FLOW ASSUMPTIONS |
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 17,698 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Basis Point Spread over OAR: | 0.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 14,510,000 | ||
| Value PSF of NRA: | $ | 163.97 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 13.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 128 |
Gander Mountain
Schedule of Prospective Cash Flow
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 1,153,350 | $ | 1,190,220 | $ | 1,190,220 | $ | 1,190,220 | $ | 1,190,220 | $ | 1,226,071 | $ | 1,373,633 | $ | 1,373,633 | $ | 1,373,633 | $ | 1,373,633 | $ | 1,373,633 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (333,406 | ) | (114,469 | ) | ||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 1,153,350 | 1,190,220 | 1,190,220 | 1,190,220 | 1,190,220 | 892,665 | 1,259,164 | 1,373,633 | 1,373,633 | 1,373,633 | 1,373,633 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 154,861 | 159,507 | 164,292 | 169,221 | 174,297 | 134,645 | 169,503 | 190,459 | 196,173 | 202,058 | 208,120 | |||||||||||||||||||||||||||||||||
| RE Tax | 152,007 | 156,567 | 161,264 | 166,102 | 171,085 | 132,163 | 166,379 | 186,949 | 192,558 | 198,335 | 204,285 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 306,868 | 316,074 | 325,556 | 335,323 | 345,382 | 266,808 | 335,882 | 377,408 | 388,731 | 400,393 | 412,405 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 1,460,218 | 1,506,294 | 1,515,776 | 1,525,543 | 1,535,602 | 1,159,473 | 1,595,046 | 1,751,041 | 1,762,364 | 1,774,026 | 1,786,038 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 1,460,218 | 1,506,294 | 1,515,776 | 1,525,543 | 1,535,602 | 1,159,473 | 1,595,046 | 1,751,041 | 1,762,364 | 1,774,026 | 1,786,038 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 154,861 | 159,507 | 164,292 | 169,221 | 174,297 | 179,526 | 184,912 | 190,459 | 196,173 | 202,058 | 208,120 | |||||||||||||||||||||||||||||||||
| RE Tax | 152,007 | 156,567 | 161,264 | 166,102 | 171,085 | 176,218 | 181,504 | 186,949 | 192,558 | 198,335 | 204,285 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 306,868 | 316,074 | 325,556 | 335,323 | 345,382 | 355,744 | 366,416 | 377,408 | 388,731 | 400,393 | 412,405 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 1,153,350 | 1,190,220 | 1,190,220 | 1,190,220 | 1,190,220 | 803,729 | 1,228,630 | 1,373,633 | 1,373,633 | 1,373,633 | 1,373,633 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 475,488 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | $ | 253,435 | ||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 7,800 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 17,698 | 18,229 | 19,340 | 19,920 | 20,517 | 21,133 | 21,767 | 22,420 | 23,092 | 23,785 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 17,698 | 18,229 | 7,800 | 19,340 | 19,920 | 20,517 | 750,056 | 21,767 | 22,420 | 23,092 | 23,785 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 1,135,652 | $ | 1,171,991 | $ | 1,182,420 | $ | 1,170,880 | $ | 1,170,300 | $ | 783,212 | $ | 478,574 | $ | 1,351,866 | $ | 1,351,213 | $ | 1,350,541 | $ | 1,349,848 | ||||||||||||||||||||||
| 129 |
Gander Mountain
Discounted Cash Flow Analysis
As of December 31, 2013
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 8.50% | ||||||||||
| Year 1 | Dec-14 | $ | 1,135,652 | $ | 1,046,684 | |||||||||
| Year 2 | Dec-15 | 1,171,991 | 995,554 | |||||||||||
| Year 3 | Dec-16 | 1,182,420 | 925,726 | |||||||||||
| Year 4 | Dec-17 | 1,170,880 | 844,877 | |||||||||||
| Year 5 | Dec-18 | 1,170,300 | 778,303 | |||||||||||
| Year 6 | Dec-19 | 783,212 | 480,066 | |||||||||||
| Year 7 | Dec-20 | 478,574 | 270,359 | |||||||||||
| Year 8 | Dec-21 | 1,351,866 | 703,875 | |||||||||||
| Year 9 | Dec-22 | 1,351,213 | 648,420 | |||||||||||
| Year 10 | Dec-23 | 1,350,541 | 597,325 | |||||||||||
| Total Cash Flow | $ | 11,146,649 | $ | 7,291,188 | ||||||||||
| Property Resale @ 8.25% | 16,317,095 | 7,216,813 | ||||||||||||
| Total Property Present Value | $ | 14,508,001 | ||||||||||||
| Rounded | $ | 14,510,000 | ||||||||||||
| Per Square Foot | $ | 163.97 | ||||||||||||
| 130 |
| Comparable Sales | ||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Big Box Store | Confidential | Confidential | Confidential | 52,000 | $ | 10,300,000 | $ | 198.08 | 4Q 2013 | $ | 790,010 | 7.67 | % | |||||||||||||||||
| Big Box Store | Confidential | Confidential | Confidential | 68,000 | $ | 12,500,000 | $ | 183.82 | 4Q 2013 | $ | 958,750 | 7.67 | % | |||||||||||||||||
| Gander Mountain | 20870 Rogers Dr | Rogers | MN | 46,089 | $ | 6,000,000 | $ | 130.18 | 11/25/2013 | $ | 519,600 | 8.66 | % | |||||||||||||||||
| Floor & Decor Outlets | 17211 N I-45 | Houston | TX | 109,000 | $ | 6,219,000 | $ | 57.06 | 10/31/2013 | $ | 528,615 | 8.50 | % | |||||||||||||||||
| Gander Mountain | 2890 Acquest Ave SE | Grand Rapids | MI | 33,032 | $ | 3,350,000 | $ | 101.42 | 9/24/2013 | $ | 284,750 | 8.50 | % | |||||||||||||||||
| Gander Mountain | 1523 Vann Dr | Jackson | TN | 65,000 | $ | 8,000,000 | $ | 123.08 | 9/18/2013 | $ | 684,800 | 8.56 | % | |||||||||||||||||
| Gander Mountain | 5038 Miller Rd | Flint | MI | 65,293 | $ | 7,200,000 | $ | 110.27 | 9/16/2013 | $ | 619,200 | 8.60 | % | |||||||||||||||||
| Academy Sports & Outdoors | 4627 E Sam Houston Pky S | Pasadena | TX | 87,117 | $ | 11,325,000 | $ | 130.00 | 12/17/2012 | $ | 792,750 | 7.00 | % | |||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||
| Min | $ | 57.06 | 7.00 | % | ||||||||||||||||||||||||||
| Max | $ | 198.08 | 9.50 | % | ||||||||||||||||||||||||||
| Average | $ | 130.13 | 8.47 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $120.00 to $160.00 per square foot | |||||||||||||||||||||||||||||
| 131 |
PT1021 – CVS – Lago Vista, TX
| 132 |
| BASIC INFORMATION | ||||||
| Property Name: | CVS | Report Type: | Restricted Appraisal Report | |||
| Address: | 20601 FM 1431 | Interest Appraised: | Leased Fee | |||
| City: | Lago Vista | Value Premise: | Market Value | |||
| State: | TX | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Travis | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 78645 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.74 | Frontage: | Average | |||
| Gross Land Area (sf): | 119,354 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 481588 0205H | Location Rating: | Average | |||
| FEMA Map Date: | 9/26/2008 | Number of Parking Spaces: | 76 | |||
| Parking Ratio (per 1,000 SF): | 5.39 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2005 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 14,097 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 14,097 | Actual Age (years): | 9 | |||
| # of Buildings: | 1 | Tenant: | CVS | |||
| # of Stories: | 1 | Land to Building Ratio: | 8.47 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 01807602300000 | Zoning Municipality: | City of Lago Vista | |||
| Taxing Authority/Jurisdiction: | Travis County | Current Zoning: | PDD, Planned Development District | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,242,120 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $60,394 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $4.28 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | CVS | Current Rent $/sf: | $26.82 | |||
| Tenant S&P Rating: | BBB+ | Rent Bump Date: | None | |||
| Lease Expiration: | January 31, 2031 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes | Comment: | None | |||
| and CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $6,300,000 | |||
| Sales Comparison Approach: | $430.00 to $470.00 per square foot | Value PSF of NRA: | $446.90 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $6,300,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 6.00% | |||||
| Market Rent $/sf: | $27.00 | |||||
| Contract Rent $/sf: | $26.82 | |||||
| 133 |
CVS
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 378,133 | $ | 26.82 | ||||
| Expense Reimbursement Revenue | 87,883 | 6.23 | ||||||
| Total Potential Gross Revenue | $ | 466,016 | $ | 33.06 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 466,016 | $ | 33.06 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 24,670 | $ | 1.75 | ||||
| Real Estate Taxes | 60,394 | 4.28 | ||||||
| Capital Reserves | 2,819 | 0.20 | ||||||
| Total Operating Expenses | $ | 87,883 | $ | 6.23 | ||||
| Net Operating Income | $ | 378,133 | $ | 26.82 | ||||
| Overall Capitalization Rate | 6.00 | % | ||||||
| Indicated Property Value | $ | 6,302,216 | $ | 447.06 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 6,300,000 | $ | 446.90 | ||||
| 134 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| CVS | 4001 W William Cannon Dr | Austin | TX | 12,900 | $ | 7,429,250 | $ | 575.91 | 7/23/2013 | $ | 386,321 | 5.20 | % | |||||||||||||||||
| CVS | 7740 N Cortaro Farms Rd | Marana | AZ | 14,419 | $ | 5,967,280 | $ | 413.85 | 7/12/2013 | $ | 535,265 | 8.97 | % | |||||||||||||||||
| CVS | 331 Superior Ave | Bogalusa | LA | 11,945 | $ | 4,800,000 | $ | 401.84 | 1/2/2013 | $ | 320,160 | 6.67 | % | |||||||||||||||||
| CVS | 934 E Irving Blvd | Irving | TX | 10,908 | $ | 3,917,557 | $ | 359.15 | 10/2/2012 | $ | 256,600 | 6.55 | % | |||||||||||||||||
| CVS | 10222 East Fwy | Houston | TX | 13,013 | $ | 4,936,932 | $ | 379.38 | 7/16/2012 | $ | 320,901 | 6.50 | % | |||||||||||||||||
| CVS | 2323 W Illinois Ave | Dallas | TX | 13,775 | $ | 5,830,000 | $ | 423.23 | 5/15/2012 | $ | 469,315 | 8.05 | % | |||||||||||||||||
| CVS | 810 W Pioneer Pky | Grand Prairie | TX | 13,140 | $ | 4,370,000 | $ | 332.57 | 4/5/2012 | $ | 345,230 | 7.90 | % | |||||||||||||||||
| CVS | 930 N Belt Hwy | Saint Joseph | MO | 13,000 | $ | 4,866,335 | $ | 374.33 | 4/3/2012 | $ | 312,419 | 6.42 | % | |||||||||||||||||
| CVS | 930 N Belt Hwy | Saint Joseph | MO | 13,000 | $ | 4,100,000 | $ | 315.38 | 12/15/2011 | $ | 330,050 | 8.05 | % | |||||||||||||||||
| Min | $ | 315.38 | 5.20 | % | ||||||||||||||||||||||||||
| Max | $ | 575.91 | 8.97 | % | ||||||||||||||||||||||||||
| Average | $ | 397.29 | 7.15 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $430.00 to $470.00 per square foot | |||||||||||||||||||||||||||||
| 135 |
PT1022 – Rite Aid – Hayes, VA
| 136 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 2460 George Washington Mem Hwy | Interest Appraised: | Leased Fee | |||
| City: | Hayes | Value Premise: | Market Value | |||
| State: | VA | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Gloucester | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 23072 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.80 | Frontage: | Good | |||
| Gross Land Area (sf): | 121,968 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 510071 0195D | Location Rating: | Good | |||
| FEMA Map Date: | 9/17/2010 | Number of Parking Spaces: | 77 | |||
| Parking Ratio (per 1,000 SF): | 5.57 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2004 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 13,813 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 13,813 | Actual Age (years): | 10 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 8.83 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 266890 | Zoning Municipality: | Gloucester County | |||
| Taxing Authority/Jurisdiction: | Gloucester County | Current Zoning: | B1, Business | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | 2532200 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | 16459.3 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.19 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $23.16 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | October 26, 2024 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,960,000 | |||
| Sales Comparison Approach: | $265.00 to $310.00 per square foot | Value PSF of NRA: | $286.69 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $3,960,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 8.00% | |||||
| Market Rent $/sf: | $25.00 | |||||
| Contract Rent $/sf: | $23.16 | |||||
| 137 |
Rite Aid
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 319,950 | $ | 23.16 | ||||
| Expense Reimbursement Revenue | 41,126 | 2.98 | ||||||
| Total Potential Gross Revenue | $ | 361,076 | $ | 26.14 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 361,076 | $ | 26.14 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 24,173 | $ | 1.75 | ||||
| Real Estate Taxes | 16,953 | 1.23 | ||||||
| Total Operating Expenses | $ | 41,126 | $ | 2.98 | ||||
| Capital Reserves | $ | 2,763 | 0.20 | |||||
| Net Operating Income | $ | 317,187 | $ | 22.96 | ||||
| Overall Capitalization Rate | 8.00 | % | ||||||
| Indicated Property Value | $ | 3,964,843 | $ | 287.04 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 3,960,000 | $ | 286.69 | ||||
| 138 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Rite Aid | 335 Crystal Ln | Strasburg | VA | 11,280 | $ | 1,975,000 | $ | 175.09 | 9/16/2013 | $ | 162,938 | 8.25 | % | |||||||||||||||||
| Rite Aid | 1080 S West End Blvd | Quakertown | PA | 14,564 | $ | 6,375,000 | $ | 437.72 | 7/10/2013 | $ | 494,063 | 7.75 | % | |||||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||||
| Rite-Aid | 1808 Salem Rd | Virginia Beach | VA | 13,813 | $ | 4,100,000 | $ | 296.82 | 4/17/2013 | $ | 358,750 | 8.75 | % | |||||||||||||||||
| Walgreens | 2819 Nolensville Pike | Nashville | TN | 12,743 | $ | 5,228,117 | $ | 410.27 | 3/29/2013 | $ | 313,164 | 5.99 | % | |||||||||||||||||
| Rite Aid | 330 River St | Cambridge | MA | 13,777 | $ | 6,675,000 | $ | 484.50 | 2/29/2012 | $ | 440,550 | 6.60 | % | |||||||||||||||||
| Rite Aid | 840 S Military Hwy | Virginia Beach | VA | 12,784 | $ | 3,712,752 | $ | 290.42 | 10/24/2012 | $ | 315,584 | 8.50 | % | |||||||||||||||||
| Min | $ | 175.09 | 5.99 | % | ||||||||||||||||||||||||||
| Max | $ | 484.50 | 8.75 | % | ||||||||||||||||||||||||||
| Average | $ | 341.17 | 7.69 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $265.00 to $310.00 per square foot | |||||||||||||||||||||||||||||
| 139 |
PT1023 – Rite Aid – Spartanburg, SC
| 140 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 4010 Anderson Mill Rd. | Interest Appraised: | Leased Fee | |||
| City: | Spartanburg | Value Premise: | Market Value | |||
| State: | SC | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Spartanburg | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 29301 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.41 | Frontage: | Good | |||
| Gross Land Area (sf): | 61,420 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 451076 0242D | Location Rating: | Good | |||
| FEMA Map Date: | 1/6/2011 | Number of Parking Spaces: | 56 | |||
| Parking Ratio (per 1,000 SF): | 4.05 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2005 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 13,824 | Condition Rating: | Very Good | |||
| Net Rentable Area (sf): | 13,824 | Actual Age (years): | 9 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.44 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 032480-12-3 | Zoning Municipality: | N/A | |||
| Taxing Authority/Jurisdiction: | Spartanburg County | Current Zoning: | N/A | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | 2618000 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | 51852 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $3.75 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $28.43 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | January 31, 2025 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $4,870,000 | |||
| Sales Comparison Approach: | $325.00 to $380.00 per square foot | Value PSF of NRA: | $352.29 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $4,870,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 8.00% | |||||
| Market Rent $/sf: | $25.00 | |||||
| Contract Rent $/sf: | $28.43 | |||||
| 141 |
Rite Aid
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 392,983 | $ | 28.43 | ||||
| Expense Reimbursement Revenue | 77,600 | 5.61 | ||||||
| Total Potential Gross Revenue | $ | 470,583 | $ | 34.04 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 470,583 | $ | 34.04 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 24,192 | $ | 1.75 | ||||
| Real Estate Taxes | 53,408 | 3.86 | ||||||
| Total Operating Expenses | $ | 77,600 | $ | 5.61 | ||||
| Capital Reserves | $ | 2,765 | 0.20 | |||||
| Net Operating Income | $ | 390,218 | $ | 28.23 | ||||
| Overall Capitalization Rate | 8.00 | % | ||||||
| Indicated Property Value | $ | 4,877,727 | $ | 352.84 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 4,870,000 | $ | 352.29 | ||||
| 142 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Rite Aid | 501 N Harper St | Laurens | SC | 10,200 | $ | 2,770,000 | $ | 271.57 | 10/24/2013 | $ | 248,192 | 8.96 | % | |||||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||||
| Rite Aid | 501 N Harper St | Laurens | SC | 10,200 | $ | 2,300,000 | $ | 225.49 | 7/10/2013 | $ | 207,690 | 9.03 | % | |||||||||||||||||
| Rite Aid | 841 S Main St | Graham | NC | 13,824 | $ | 4,290,000 | $ | 310.33 | 6/7/2013 | $ | 396,825 | 9.25 | % | |||||||||||||||||
| Rite Aid | 2711 Jones Franklin Rd | Cary | NC | 11,500 | $ | 2,472,500 | $ | 215.00 | 11/8/2012 | $ | 222,525 | 9.00 | % | |||||||||||||||||
| Rite Aid | 350 Main St | Pennsburg | PA | 11,064 | $ | 7,805,737 | $ | 705.51 | 10/5/2012 | $ | 618,995 | 7.93 | % | |||||||||||||||||
| Wawa/Rite Aid | 664-668 Haddon Ave | Collingswood | NJ | 9,800 | $ | 2,490,000 | $ | 254.08 | 2/28/2012 | $ | 196,212 | 7.88 | % | |||||||||||||||||
| Min | $ | 215.00 | 7.88 | % | ||||||||||||||||||||||||||
| Max | $ | 705.51 | 9.25 | % | ||||||||||||||||||||||||||
| Average | $ | 321.09 | 8.51 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $325.00 to $380.00 per square foot | |||||||||||||||||||||||||||||
| 143 |
PT1024 – Rite Aid – Travelers Rest, SC
| 144 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 6414 State Park Rd. | Interest Appraised: | Leased Fee | |||
| City: | Travelers Rest | Value Premise: | Market Value | |||
| State: | SC | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Greenville | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 26960 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.83 | Frontage: | Average | |||
| Gross Land Area (sf): | 79,715 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 450089 0325D | Location Rating: | Average | |||
| FEMA Map Date: | 12/2/2004 | Number of Parking Spaces: | 73 | |||
| Parking Ratio (per 1,000 SF): | 5.28 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2005 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 13,813 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 13,813 | Actual Age (years): | 9 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 5.77 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 1200004918077 | Zoning Municipality: | City of Travelers Rest | |||
| Taxing Authority/Jurisdiction: | Greenville County | Current Zoning: | C-2, Commercial District | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,993,182 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $59,663 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $4.32 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $26.21 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | April 19, 2025 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $4,490,000 | |||
| Sales Comparison Approach: | $300.00 to $350.00 per square foot | Value PSF of NRA: | $325.06 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $4,490,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 8.00% | |||||
| Market Rent $/sf: | $25.00 | |||||
| Contract Rent $/sf: | $26.21 | |||||
| 145 |
Rite Aid
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 361,978 | $ | 26.21 | ||||
| Expense Reimbursement Revenue | 85,626 | 6.20 | ||||||
| Total Potential Gross Revenue | $ | 447,604 | $ | 32.40 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 447,604 | $ | 32.40 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 24,173 | $ | 1.75 | ||||
| Real Estate Taxes | 61,453 | 4.45 | ||||||
| Total Operating Expenses | $ | 85,626 | $ | 6.20 | ||||
| Capital Reserves | $ | 2,763 | 0.20 | |||||
| Net Operating Income | $ | 359,215 | $ | 26.01 | ||||
| Overall Capitalization Rate | 8.00 | % | ||||||
| Indicated Property Value | $ | 4,490,192 | $ | 325.07 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 4,490,000 | $ | 325.06 | ||||
| 146 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Rite Aid | 501 N Harper St | Laurens | SC | 10,200 | $ | 2,770,000 | $ | 271.57 | 10/24/2013 | $ | 248,192 | 8.96 | % | |||||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||||
| Rite Aid | 3295 Centerville Hwy | Snellville | GA | 10,594 | $ | 2,460,000 | $ | 232.21 | 8/8/2013 | $ | 184,500 | 7.50 | % | |||||||||||||||||
| Rite Aid | 501 N Harper St | Laurens | SC | 10,200 | $ | 2,300,000 | $ | 225.49 | 7/10/2013 | $ | 207,690 | 9.03 | % | |||||||||||||||||
| Rite Aid | 1080 S West End Blvd | Quakertown | PA | 14,564 | $ | 6,375,000 | $ | 437.72 | 7/10/2013 | $ | 494,063 | 7.75 | % | |||||||||||||||||
| Rite Aid | 2005 Maple St | Rome | GA | 14,673 | $ | 5,152,100 | $ | 351.13 | 6/13/2013 | $ | 412,168 | 8.00 | % | |||||||||||||||||
| Rite Aid | 2711 Jones Franklin Rd | Cary | NC | 11,500 | $ | 2,472,500 | $ | 215.00 | 11/8/2012 | $ | 222,525 | 9.00 | % | |||||||||||||||||
| Min | $ | 215.00 | 7.50 | % | ||||||||||||||||||||||||||
| Max | $ | 437.72 | 9.03 | % | ||||||||||||||||||||||||||
| Average | $ | 289.98 | 8.28 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $300.00 to $350.00 per square foot | |||||||||||||||||||||||||||||
| 147 |
PT1025 – CVS – Independence, MO
| 148 |
| BASIC INFORMATION | ||||||
| Property Name: | CVS | Report Type: | Restricted Appraisal Report | |||
| Address: | 11115 East U.S. Hwy 24 | Interest Appraised: | Leased Fee | |||
| City: | Independence | Value Premise: | Market Value | |||
| State: | MO | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Jackson | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 64054 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.59 | Frontage: | Good | |||
| Gross Land Area (sf): | 69,260 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 290172 0152F | Location Rating: | Average | |||
| FEMA Map Date: | 9/29/2006 | Number of Parking Spaces: | 55 | |||
| Parking Ratio (per 1,000 SF): | 5.04 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2000 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 10,908 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 10,908 | Actual Age (years): | 14 | |||
| # of Buildings: | 1 | Tenant: | CVS | |||
| # of Stories: | 1 | Land to Building Ratio: | 6.35 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 27-110-04-42-00-0-00-000 | Zoning Municipality: | City of Independence | |||
| Taxing Authority/Jurisdiction: | Jackson County | Current Zoning: | C2, Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $322,720 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $30,249 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $2.77 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | CVS | Current Rent $/sf: | $25.94 | |||
| Tenant S&P Rating: | BBB+ | Rent Bump Date: | None | |||
| Lease Expiration: | June 7, 2020 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes | Comment: | None | |||
| and CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $4,130,000 | |||
| Sales Comparison Approach: | $355.00 to $405.00 per square foot | Value PSF of NRA: | $378.62 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $4,130,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 6.75% | |||||
| Discount Rate: | 7.00% | Market Rent $/sf: | $25.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $25.94 | |||
| Expense Growth: | 3.00% | |||||
| 149 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 0 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.00 | % | ||
| Terminal Capitalization Rate: | 6.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 4,130,000 | ||
| Value PSF of NRA: | $ | 378.62 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 25.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
*The tenant has multiple extension options. Based on our analysis, we have assumed the first option at $26.44/sf is exercised since it is deemed to be below market.
| 150 |
| CVS |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 286,135 | $ | 288,408 | $ | 288,408 | $ | 288,408 | $ | 288,408 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 282,954 | 282,954 | 282,954 | 282,954 | 282,954 | 282,954 | 286,135 | 288,408 | 288,408 | 288,408 | 288,408 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 51,520 | 53,065 | 54,657 | 56,297 | 57,986 | 59,725 | 61,517 | 63,362 | 65,264 | 67,221 | 69,238 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 334,474 | 336,019 | 337,611 | 339,251 | 340,940 | 342,679 | 347,652 | 351,770 | 353,672 | 355,629 | 357,646 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 334,474 | 336,019 | 337,611 | 339,251 | 340,940 | 342,679 | 347,652 | 351,770 | 353,672 | 355,629 | 357,646 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,089 | 19,662 | 20,252 | 20,859 | 21,485 | 22,129 | 22,793 | 23,477 | 24,181 | 24,907 | 25,654 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 30,249 | 31,156 | 32,091 | 33,054 | 34,046 | 35,067 | 36,119 | 37,202 | 38,319 | 39,468 | 40,652 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,182 | 2,247 | 2,314 | 2,384 | 2,455 | 2,529 | 2,605 | 2,683 | 2,764 | 2,846 | 2,932 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 51,520 | 53,065 | 54,657 | 56,297 | 57,986 | 59,725 | 61,517 | 63,362 | 65,264 | 67,221 | 69,238 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 282,954 | 282,954 | 282,954 | 282,954 | 282,954 | 282,954 | 286,135 | 288,408 | 288,408 | 288,408 | 288,408 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 282,954 | $ | 286,135 | $ | 288,408 | $ | 288,408 | $ | 288,408 | $ | 288,408 | ||||||||||||||||||||||
| 151 |
| CVS |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.00% | |||||||
| Year 1 | Dec-14 | $ | 282,954 | $ | 264,443 | ||||||
| Year 2 | Dec-15 | 282,954 | 247,143 | ||||||||
| Year 3 | Dec-16 | 282,954 | 230,975 | ||||||||
| Year 4 | Dec-17 | 282,954 | 215,864 | ||||||||
| Year 5 | Dec-18 | 282,954 | 201,742 | ||||||||
| Year 6 | Dec-19 | 282,954 | 188,544 | ||||||||
| Year 7 | Dec-20 | 286,135 | 178,190 | ||||||||
| Year 8 | Dec-21 | 288,408 | 167,856 | ||||||||
| Year 9 | Dec-22 | 288,408 | 156,875 | ||||||||
| Year 10 | Dec-23 | 288,408 | 146,612 | ||||||||
| Total Cash Flow | $ | 2,849,083 | $ | 1,998,245 | |||||||
| Property Resale @ 6.75% | 4,187,257 | 2,128,589 | |||||||||
| Total Property Present Value | $ | 4,126,834 | |||||||||
| Rounded | $ | 4,130,000 | |||||||||
| Per Square Foot | $ | 378.62 | |||||||||
| 152 |
| Comparable Sales | ||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| CVS | 2722 N Central Ave | Chicago | IL | 13,700 | $ | 6,878,000 | $ | 502.04 | 11/7/2013 | $ | 478,021 | 6.95 | % | |||||||||||||||
| CVS | 1203 S Main St | Bluffton | IN | 10,125 | $ | 3,100,000 | $ | 306.17 | 10/8/2013 | $ | 215,760 | 6.96 | % | |||||||||||||||
| CVS | 2104 N Main St | London | KY | 13,225 | $ | 4,906,062 | $ | 370.97 | 9/10/2013 | $ | 310,554 | 6.33 | % | |||||||||||||||
| CVS | 15521-15573 W 7 Mile Rd | Detroit | MI | 13,013 | $ | 5,445,859 | $ | 418.49 | 8/28/2013 | $ | 386,656 | 7.10 | % | |||||||||||||||
| CVS | 16701 S Harlem Ave | Tinley Park | IL | 12,900 | $ | 6,900,000 | $ | 534.88 | 6/7/2013 | $ | 427,110 | 6.19 | % | |||||||||||||||
| CVS | 930 N Belt Hwy | Saint Joseph | MO | 13,000 | $ | 4,866,335 | $ | 374.33 | 4/3/2012 | $ | 312,419 | 6.42 | % | |||||||||||||||
| CVS | 651 E Main St | Danville | IN | 10,125 | $ | 2,215,000 | $ | 218.77 | 1/30/2012 | $ | 163,910 | 7.40 | % | |||||||||||||||
| CVS | 930 N Belt Hwy | Saint Joseph | MO | 13,000 | $ | 4,100,000 | $ | 315.38 | 12/15/2011 | $ | 330,050 | 8.05 | % | |||||||||||||||
| Min | $ | 218.77 | 6.19 | % | ||||||||||||||||||||||||
| Max | $ | 534.88 | 8.05 | % | ||||||||||||||||||||||||
| Average | $ | 380.13 | 6.93 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $355.00 to $405.00 per square foot | |||||||||||||||||||||||||||
| 153 |
PT1026 – Rite Aid – Murfreesboro, TN
| 154 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 1696 Middle Tennessee Blvd. | Interest Appraised: | Leased Fee | |||
| City: | Murfreesboro | Value Premise: | Market Value | |||
| State: | TN | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Rutherford | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 37130 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.48 | Frontage: | Good | |||
| Gross Land Area (sf): | 108,029 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 470168 0280H | Location Rating: | Good | |||
| FEMA Map Date: | 1/5/2007 | Number of Parking Spaces: | 66 | |||
| Parking Ratio (per 1,000 SF): | 5.89 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1999 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 11,200 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 11,200 | Actual Age (years): | 15 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 9.65 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 103H A 00100 | Zoning Municipality: | City of Murfreesboro | |||
| Taxing Authority/Jurisdiction: | Rutherford County | Current Zoning: | PCD, Planned Commercial District | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $643,080 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $16,496 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.47 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $24.52 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | January 26, 2019 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,640,000 | |||
| Sales Comparison Approach: | $200.00 to $250.00 per square foot | Value PSF of NRA: | $235.71 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,640,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 9.25% | |||||
| Discount Rate: | 10.00% | Market Rent $/sf: | $20.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $24.52 | |||
| Expense Growth: | 3.00% | |||||
| 155 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,240 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 10.00 | % | ||
| Terminal Capitalization Rate: | 9.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,640,000 | ||
| Value PSF of NRA: | $ | 235.71 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 20.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 156 |
| Rite Aid |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 274,584 | $ | 274,584 | $ | 274,584 | $ | 274,584 | $ | 274,584 | $ | 258,029 | $ | 256,524 | $ | 256,524 | $ | 256,524 | $ | 256,524 | $ | 266,144 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (42,754 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 274,584 | 274,584 | 274,584 | 274,584 | 274,584 | 215,275 | 256,524 | 256,524 | 256,524 | 256,524 | 266,144 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,362 | 19,943 | 20,541 | 21,157 | 21,792 | 18,705 | 23,119 | 23,813 | 24,527 | 25,263 | 26,021 | |||||||||||||||||||||||||||||||||
| RE Tax | 16,296 | 16,785 | 17,288 | 17,807 | 18,341 | 15,743 | 19,458 | 20,042 | 20,643 | 21,262 | 21,900 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 35,658 | 36,728 | 37,829 | 38,964 | 40,133 | 34,448 | 42,577 | 43,855 | 45,170 | 46,525 | 47,921 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 310,242 | 311,312 | 312,413 | 313,548 | 314,717 | 249,723 | 299,101 | 300,379 | 301,694 | 303,049 | 314,065 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 310,242 | 311,312 | 312,413 | 313,548 | 314,717 | 249,723 | 299,101 | 300,379 | 301,694 | 303,049 | 314,065 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,600 | 20,188 | 20,794 | 21,417 | 22,060 | 22,722 | 23,403 | 24,106 | 24,829 | 25,574 | 26,341 | |||||||||||||||||||||||||||||||||
| RE Tax | 16,496 | 16,991 | 17,501 | 18,026 | 18,566 | 19,123 | 19,697 | 20,288 | 20,897 | 21,524 | 22,169 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 36,096 | 37,179 | 38,295 | 39,443 | 40,626 | 41,845 | 43,100 | 44,394 | 45,726 | 47,098 | 48,510 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 274,146 | 274,133 | 274,118 | 274,105 | 274,091 | 207,878 | 256,001 | 255,985 | 255,968 | 255,951 | 265,555 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 32,066 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 39,441 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,240 | 2,307 | 2,376 | 2,448 | 2,521 | 2,597 | 2,675 | 2,755 | 2,838 | 2,923 | 3,010 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,240 | 2,307 | 2,376 | 2,448 | 2,521 | 74,104 | 2,675 | 2,755 | 2,838 | 2,923 | 3,010 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 271,906 | $ | 271,826 | $ | 271,742 | $ | 271,657 | $ | 271,570 | $ | 133,774 | $ | 253,326 | $ | 253,230 | $ | 253,130 | $ | 253,028 | $ | 262,545 | ||||||||||||||||||||||
| 157 |
| Rite Aid |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 10.00% | |||||||
| Year 1 | Dec-14 | $ | 271,906 | $ | 247,187 | ||||||
| Year 2 | Dec-15 | 271,826 | 224,650 | ||||||||
| Year 3 | Dec-16 | 271,742 | 204,164 | ||||||||
| Year 4 | Dec-17 | 271,657 | 185,545 | ||||||||
| Year 5 | Dec-18 | 271,570 | 168,624 | ||||||||
| Year 6 | Dec-19 | 133,774 | 75,512 | ||||||||
| Year 7 | Dec-20 | 253,326 | 129,996 | ||||||||
| Year 8 | Dec-21 | 253,230 | 118,134 | ||||||||
| Year 9 | Dec-22 | 253,130 | 107,352 | ||||||||
| Year 10 | Dec-23 | 253,028 | 97,553 | ||||||||
| Total Cash Flow | $ | 2,505,189 | $ | 1,558,717 | |||||||
| Property Resale @ 9.25% | 2,813,448 | 1,084,706 | |||||||||
| Total Property Present Value | $ | 2,643,422 | |||||||||
| Rounded | $ | 2,640,000 | |||||||||
| Per Square Foot | $ | 235.71 | |||||||||
| 158 |
| Comparable Sales | ||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Rite Aid | 5441 Highway 153 | Hixson | TN | 10,908 | $ | 2,500,000 | $ | 229.19 | 1/6/2014 | $ | 237,500 | 9.50 | % | |||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||
| Rite Aid | 3295 Centerville Hwy | Snellville | GA | 10,594 | $ | 2,460,000 | $ | 232.21 | 8/8/2013 | $ | 184,500 | 7.50 | % | |||||||||||||||
| Rite Aid | 2005 Maple St | Rome | GA | 14,673 | $ | 5,152,100 | $ | 351.13 | 6/13/2013 | $ | 412,168 | 8.00 | % | |||||||||||||||
| Rite Aid | 655 S Main St | Ashland City | TN | 13,824 | $ | 2,585,000 | $ | 186.99 | 1/29/2013 | $ | 239,371 | 9.26 | % | |||||||||||||||
| Rite Aid | 5192 Murfreesboro Rd | La Vergne | TN | 14,564 | $ | 4,906,000 | $ | 336.86 | 11/21/2012 | $ | 461,164 | 9.40 | % | |||||||||||||||
| Rite Aid | 2711 Jones Franklin Rd | Cary | NC | 11,500 | $ | 2,472,500 | $ | 215.00 | 11/8/2012 | $ | 222,525 | 9.00 | % | |||||||||||||||
| Rite Aid | 330 River St | Cambridge | MA | 13,777 | $ | 6,675,000 | $ | 484.50 | 2/29/2012 | $ | 440,550 | 6.60 | % | |||||||||||||||
| Min | $ | 186.99 | 6.60 | % | ||||||||||||||||||||||||
| Max | $ | 484.50 | 9.50 | % | ||||||||||||||||||||||||
| Average | $ | 291.16 | 8.41 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $200.00 to $250.00 per square foot | |||||||||||||||||||||||||||
| 159 |
PT1027 – Rite Aid – Philadelphia, PA
| 160 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 1334 Windrim Ave. | Interest Appraised: | Leased Fee | |||
| City: | Philadelphia | Value Premise: | Market Value | |||
| State: | PA | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Philadelphia | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 19141 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.85 | Frontage: | Average | |||
| Gross Land Area (sf): | 80,586 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 420757 0095G | Location Rating: | Good | |||
| FEMA Map Date: | 1/17/2007 | Number of Parking Spaces: | 75 | |||
| Parking Ratio (per 1,000 SF): | 6.60 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1999 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 11,361 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 11,361 | Actual Age (years): | 15 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.09 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 50940 01324 | Zoning Municipality: | City of Philadelphia | |||
| Taxing Authority/Jurisdiction: | Philadelphia County | Current Zoning: | CMX-2, Neighborhood Commercial Mixed-Use District-2 | |||
| Current Tax Year | 2014 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,673,900 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $30,505 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $2.69 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $28.24 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | June 16, 2019 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,560,000 | |||
| Sales Comparison Approach: | $250.00 to $350.00 per square foot | Value PSF of NRA: | $313.35 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,560,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.75% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $25.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $28.24 | |||
| Expense Growth: | 3.00% | |||||
| 161 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,272 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,560,000 | ||
| Value PSF of NRA: | $ | 313.35 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 25.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 162 |
| Rite Aid |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 320,874 | $ | 320,874 | $ | 320,874 | $ | 320,874 | $ | 320,874 | $ | 325,068 | $ | 329,263 | $ | 329,263 | $ | 329,263 | $ | 329,263 | $ | 334,751 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (54,877 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 320,874 | 320,874 | 320,874 | 320,874 | 320,874 | 270,191 | 329,263 | 329,263 | 329,263 | 329,263 | 334,751 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,882 | 20,478 | 21,093 | 21,725 | 22,377 | 19,207 | 23,740 | 24,452 | 25,186 | 25,941 | 26,719 | |||||||||||||||||||||||||||||||||
| RE Tax | 16,496 | 16,991 | 17,501 | 18,026 | 18,566 | 15,936 | 19,697 | 20,288 | 20,897 | 21,524 | 22,169 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 36,378 | 37,469 | 38,594 | 39,751 | 40,943 | 35,143 | 43,437 | 44,740 | 46,083 | 47,465 | 48,888 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 357,252 | 358,343 | 359,468 | 360,625 | 361,817 | 305,334 | 372,700 | 374,003 | 375,346 | 376,728 | 383,639 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 357,252 | 358,343 | 359,468 | 360,625 | 361,817 | 305,334 | 372,700 | 374,003 | 375,346 | 376,728 | 383,639 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,882 | 20,478 | 21,093 | 21,725 | 22,377 | 23,048 | 23,740 | 24,452 | 25,186 | 25,941 | 26,719 | |||||||||||||||||||||||||||||||||
| RE Tax | 16,496 | 16,991 | 17,501 | 18,026 | 18,566 | 19,123 | 19,697 | 20,288 | 20,897 | 21,524 | 22,169 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 36,378 | 37,469 | 38,594 | 39,751 | 40,943 | 42,171 | 43,437 | 44,740 | 46,083 | 47,465 | 48,888 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 320,874 | 320,874 | 320,874 | 320,874 | 320,874 | 263,163 | 329,263 | 329,263 | 329,263 | 329,263 | 334,751 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 32,926 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 50,624 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,272 | 2,340 | 2,411 | 2,483 | 2,557 | 2,634 | 2,713 | 2,795 | 2,878 | 2,965 | 3,054 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,272 | 2,340 | 2,411 | 2,483 | 2,557 | 86,184 | 2,713 | 2,795 | 2,878 | 2,965 | 3,054 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 318,602 | $ | 318,534 | $ | 318,463 | $ | 318,391 | $ | 318,317 | $ | 176,979 | $ | 326,550 | $ | 326,468 | $ | 326,385 | $ | 326,298 | $ | 331,697 | ||||||||||||||||||||||
| 163 |
| Rite Aid |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 9.00% | |||||||
| Year 1 | Dec-14 | $ | 318,602 | $ | 292,295 | ||||||
| Year 2 | Dec-15 | 318,534 | 268,104 | ||||||||
| Year 3 | Dec-16 | 318,463 | 245,912 | ||||||||
| Year 4 | Dec-17 | 318,391 | 225,556 | ||||||||
| Year 5 | Dec-18 | 318,317 | 206,884 | ||||||||
| Year 6 | Dec-19 | 176,979 | 105,527 | ||||||||
| Year 7 | Dec-20 | 326,550 | 178,634 | ||||||||
| Year 8 | Dec-21 | 326,468 | 163,843 | ||||||||
| Year 9 | Dec-22 | 326,385 | 150,277 | ||||||||
| Year 10 | Dec-23 | 326,298 | 137,832 | ||||||||
| Total Cash Flow | $ | 3,074,987 | $ | 1,974,864 | |||||||
| Property Resale @ 8.75% | 3,749,211 | 1,583,707 | |||||||||
| Total Property Present Value | $ | 3,558,571 | |||||||||
| Rounded | $ | 3,560,000 | |||||||||
| Per Square Foot | $ | 313.35 | |||||||||
| 164 |
| Comparable Sales | ||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Rite Aid | 1080 S West End Blvd | Quakertown | PA | 14,564 | $ | 6,375,000 | $ | 437.72 | 7/10/2013 | $ | 494,063 | 7.75 | % | |||||||||||||||
| Rite Aid | 350 Main St | Pennsburg | PA | 11,064 | $ | 7,805,737 | $ | 705.51 | 10/5/2012 | $ | 618,995 | 7.93 | % | |||||||||||||||
| Rite Aid | 592 E 183rd St | Bronx | NY | 10,901 | $ | 3,300,000 | $ | 302.72 | 7/26/2012 | $ | 201,300 | 6.10 | % | |||||||||||||||
| Rite Aid | 1395 Middletown Rd | Northford | CT | 10,445 | $ | 2,325,000 | $ | 222.59 | 6/12/2012 | $ | 201,578 | 8.67 | % | |||||||||||||||
| Rite Aid | 8416 Lee Hwy | Fairfax | VA | 14,390 | $ | 7,300,000 | $ | 507.30 | 11/2/2011 | $ | 564,290 | 7.73 | % | |||||||||||||||
| Rite Aid | 1900 Ocean St | Marshfield | MA | 13,876 | $ | 2,754,000 | $ | 198.47 | 2/14/2011 | $ | 235,467 | 8.55 | % | |||||||||||||||
| Rite Aid | 1329 Hyde Park Ave | Hyde Park | MA | 13,556 | $ | 3,025,000 | $ | 223.15 | 2/10/2011 | $ | 272,250 | 9.00 | % | |||||||||||||||
| Min | $ | 198.47 | 6.10 | % | ||||||||||||||||||||||||
| Max | $ | 705.51 | 9.00 | % | ||||||||||||||||||||||||
| Average | $ | 371.07 | 7.96 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $250.00 to $350.00 per square foot | |||||||||||||||||||||||||||
| 165 |
PT1028 – CVS – Duncanville, TX
| 166 |
| BASIC INFORMATION | ||||||
| Property Name: | CVS | Report Type: | Restricted Appraisal Report | |||
| Address: | 603 South Cedar Ridge Dr. | Interest Appraised: | Leased Fee | |||
| City: | Duncanville | Value Premise: | Market Value | |||
| State: | TX | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Dallas | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 75137 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.60 | Frontage: | Good | |||
| Gross Land Area (sf): | 69,696 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 480173 0470J | Location Rating: | Average | |||
| FEMA Map Date: | 8/23/2001 | Number of Parking Spaces: | 58 | |||
| Parking Ratio (per 1,000 SF): | 5.32 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2000 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 10,908 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 10,908 | Actual Age (years): | 14 | |||
| # of Buildings: | 1 | Tenant: | CVS | |||
| # of Stories: | 1 | Land to Building Ratio: | 6.39 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 22036000000010000 | Zoning Municipality: | City of Duncanville | |||
| Taxing Authority/Jurisdiction: | Dallas County | Current Zoning: | LR-2, Local Retail-2 | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,787,050 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $50,435 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $4.62 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | CVS | Current Rent $/sf: | $22.02 | |||
| Tenant S&P Rating: | BBB+ | Rent Bump Date: | None | |||
| Lease Expiration: | November 29, 2020 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes | Comment: | None | |||
| and CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,510,000 | |||
| Sales Comparison Approach: | $300.00 to $340.00 per square foot | Value PSF of NRA: | $321.78 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,510,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 6.75% | |||||
| Discount Rate: | 7.00% | Market Rent $/sf: | $23.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $22.02 | |||
| Expense Growth: | 3.00% | |||||
| 167 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 0 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.00 | % | ||
| Terminal Capitalization Rate: | 6.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,510,000 | ||
| Value PSF of NRA: | $ | 321.78 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 23.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
*The tenant has multiple extension options. Based on our analysis, we have assumed the first option at $22.52/sf is exercised since it is deemed to be below market.
| 168 |
| CVS |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,649 | $ | 245,648 | $ | 245,648 | $ | 245,648 | $ | 245,648 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 240,194 | 240,194 | 240,194 | 240,194 | 240,194 | 240,194 | 240,649 | 245,648 | 245,648 | 245,648 | 245,648 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 71,706 | 73,857 | 76,072 | 78,355 | 80,705 | 83,126 | 85,621 | 88,189 | 90,835 | 93,559 | 96,366 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 311,900 | 314,051 | 316,266 | 318,549 | 320,899 | 323,320 | 326,270 | 333,837 | 336,483 | 339,207 | 342,014 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 311,900 | 314,051 | 316,266 | 318,549 | 320,899 | 323,320 | 326,270 | 333,837 | 336,483 | 339,207 | 342,014 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,089 | 19,662 | 20,252 | 20,859 | 21,485 | 22,129 | 22,793 | 23,477 | 24,181 | 24,907 | 25,654 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 50,435 | 51,948 | 53,506 | 55,112 | 56,765 | 58,468 | 60,222 | 62,029 | 63,890 | 65,806 | 67,780 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 2,182 | 2,247 | 2,314 | 2,384 | 2,455 | 2,529 | 2,605 | 2,683 | 2,764 | 2,846 | 2,932 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 71,706 | 73,857 | 76,072 | 78,355 | 80,705 | 83,126 | 85,620 | 88,189 | 90,835 | 93,559 | 96,366 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 240,194 | 240,194 | 240,194 | 240,194 | 240,194 | 240,194 | 240,650 | 245,648 | 245,648 | 245,648 | 245,648 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,194 | $ | 240,650 | $ | 245,648 | $ | 245,648 | $ | 245,648 | $ | 245,648 | ||||||||||||||||||||||
| 169 |
| CVS |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.00% | |||||||
| Year 1 | Dec-14 | $ | 240,194 | $ | 224,480 | ||||||
| Year 2 | Dec-15 | 240,194 | 209,795 | ||||||||
| Year 3 | Dec-16 | 240,194 | 196,070 | ||||||||
| Year 4 | Dec-17 | 240,194 | 183,243 | ||||||||
| Year 5 | Dec-18 | 240,194 | 171,255 | ||||||||
| Year 6 | Dec-19 | 240,194 | 160,051 | ||||||||
| Year 7 | Dec-20 | 240,650 | 149,865 | ||||||||
| Year 8 | Dec-21 | 245,648 | 142,969 | ||||||||
| Year 9 | Dec-22 | 245,648 | 133,616 | ||||||||
| Year 10 | Dec-23 | 245,648 | 124,875 | ||||||||
| Total Cash Flow | $ | 2,418,758 | $ | 1,696,220 | |||||||
| Property Resale @ 6.75% | 3,566,445 | 1,813,000 | |||||||||
| Total Property Present Value | $ | 3,509,219 | |||||||||
| Rounded | $ | 3,510,000 | |||||||||
| Per Square Foot | $ | 321.78 | |||||||||
| 170 |
| Comparable Sales | ||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| CVS | 4001 W William Cannon Dr | Austin | TX | 12,900 | $ | 7,429,250 | $ | 575.91 | 7/23/2013 | $ | 386,321 | 5.20 | % | |||||||||||||||
| CVS | 7740 N Cortaro Farms Rd | Marana | AZ | 14,419 | $ | 5,967,280 | $ | 413.85 | 7/12/2013 | $ | 535,265 | 8.97 | % | |||||||||||||||
| CVS | 331 Superior Ave | Bogalusa | LA | 11,945 | $ | 4,800,000 | $ | 401.84 | 1/2/2013 | $ | 320,160 | 6.67 | % | |||||||||||||||
| CVS | 934 E Irving Blvd | Irving | TX | 10,908 | $ | 3,917,557 | $ | 359.15 | 10/2/2012 | $ | 256,600 | 6.55 | % | |||||||||||||||
| CVS | 10222 East Fwy | Houston | TX | 13,013 | $ | 4,936,932 | $ | 379.38 | 7/16/2012 | $ | 320,901 | 6.50 | % | |||||||||||||||
| CVS | 2323 W Illinois Ave | Dallas | TX | 13,775 | $ | 5,830,000 | $ | 423.23 | 5/15/2012 | $ | 469,315 | 8.05 | % | |||||||||||||||
| CVS | 1627 Wildcat Dr | Portland | TX | 11,208 | $ | 3,200,000 | $ | 285.51 | 5/11/2012 | $ | 224,000 | 7.00 | % | |||||||||||||||
| CVS | 4801 S Alameda | Corpus Christi | TX | 11,344 | $ | 3,400,000 | $ | 299.72 | 4/20/2012 | $ | 243,100 | 7.15 | % | |||||||||||||||
| CVS | 810 W Pioneer Pky | Grand Prairie | TX | 13,140 | $ | 4,370,000 | $ | 332.57 | 4/5/2012 | $ | 345,230 | 7.90 | % | |||||||||||||||
| CVS | 930 N Belt Hwy | Saint Joseph | MO | 13,000 | $ | 4,866,335 | $ | 374.33 | 4/3/2012 | $ | 312,419 | 6.42 | % | |||||||||||||||
| CVS | 930 N Belt Hwy | Saint Joseph | MO | 13,000 | $ | 4,100,000 | $ | 315.38 | 12/15/2011 | $ | 330,050 | 8.05 | % | |||||||||||||||
| Min | $ | 285.51 | 5.20 | % | ||||||||||||||||||||||||
| Max | $ | 575.91 | 8.97 | % | ||||||||||||||||||||||||
| Average | $ | 378.26 | 7.13 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $300.00 to $340.00 per square foot | |||||||||||||||||||||||||||
| 171 |
PT1029 – CineMagic Theatre – Rochester, MN
| 172 |
| BASIC INFORMATION | ||||||
| Property Name: | CineMagic Theatre | Report Type: | Restricted Appraisal Report | |||
| Address: | 2171 Superior Drive NW | Interest Appraised: | Leased Fee | |||
| City: | Rochester | Value Premise: | Market Value | |||
| State: | MN | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Olmsted | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 55901 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 8.88 | Frontage: | Average | |||
| Gross Land Area (sf): | 386,813 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X, with possible AE on south border | Shape: | Regular | |||
| FEMA Community Map #: | 275246 0142E | Location Rating: | Average | |||
| FEMA Map Date: | 2/4/2019 | Number of Parking Spaces: | 750 | |||
| Parking Ratio (per 1,000 SF): | 16.50 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Movie Theater | Year Built: | 2002 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 45,455 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 45,455 | Actual Age (years): | 12 | |||
| # of Buildings: | 1 | Tenant: | CineMagic Theatre | |||
| # of Stories: | 1 | Land to Building Ratio: | 8.51 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | R 74.29.14.068131 | Zoning Municipality: | City of Rochester | |||
| Taxing Authority/Jurisdiction: | Olmsted County | Current Zoning: | M1-Mixed Comercial, Industrial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $3,500,000 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $131,200 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $2.89 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | CineMagic Theatre | Current Rent $/sf: | $4.95 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | None | |||
| Lease Expiration: | March 31, 2023 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Tenant also pays 10% of sales over a $1,500,000 breakpoint. | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,000,000 | |||
| Sales Comparison Approach: | $60.00 to $80.00 per square foot | Value PSF of NRA: | $66.00 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,000,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $8.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $4.95 | |||
| Expense Growth: | 3.00% | |||||
| 173 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 9,091 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,000,000 | ||
| Value PSF of NRA: | $ | 66.00 | ||
| Market Leasing Assumptions | ||||
| Movie Theater | ||||
| Market Rent $/sf: | $ | 8.00 | ||
| Rent Escalations: | None | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 5.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
*The tenant has multiple extension options. Based on our analysis, we have assumed the first option at $4.95/sf is exercised since it is deemed to be below market.
| 174 |
| CineMagic Theatre |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | $ | 225,000 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | 225,000 | |||||||||||||||||||||||||||||||||
| Retail Sales Percent Revenue | 102,029 | 107,069 | 112,211 | 117,455 | 122,804 | 128,260 | 133,825 | 139,502 | 145,292 | 151,197 | 157,222 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | 141,546 | 143,933 | 146,391 | 148,922 | 151,530 | 154,216 | 156,982 | 159,832 | 162,767 | 165,789 | 168,904 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 468,575 | 476,002 | 483,602 | 491,377 | 499,334 | 507,476 | 515,807 | 524,334 | 533,059 | 541,986 | 551,126 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 468,575 | 476,002 | 483,602 | 491,377 | 499,334 | 507,476 | 515,807 | 524,334 | 533,059 | 541,986 | 551,126 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 79,546 | 81,933 | 84,391 | 86,922 | 89,530 | 92,216 | 94,982 | 97,832 | 100,767 | 103,790 | 106,904 | |||||||||||||||||||||||||||||||||
| Real Estate Taxes | 135,136 | 139,190 | 143,366 | 147,667 | 152,097 | 156,660 | 161,359 | 166,200 | 171,186 | 176,322 | 181,611 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 214,682 | 221,123 | 227,757 | 234,589 | 241,627 | 248,876 | 256,341 | 264,032 | 271,953 | 280,112 | 288,515 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 253,893 | 254,879 | 255,845 | 256,788 | 257,707 | 258,600 | 259,466 | 260,302 | 261,106 | 261,874 | 262,611 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||
| Capital Reserves | 9,091 | 9,364 | 9,645 | 9,934 | 10,232 | 10,539 | 10,855 | 11,181 | 11,516 | 11,862 | 12,218 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 9,091 | 9,364 | 9,645 | 9,934 | 10,232 | 10,539 | 10,855 | 11,181 | 11,516 | 11,862 | 12,218 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 244,802 | $ | 245,515 | $ | 246,200 | $ | 246,854 | $ | 247,475 | $ | 248,061 | $ | 248,611 | $ | 249,121 | $ | 249,590 | $ | 250,012 | $ | 250,393 | ||||||||||||||||||||||
| 175 |
| CineMagic Theatre |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 8.50% | |||||||
| Year 1 | Dec-14 | $ | 244,802 | $ | 225,624 | ||||||
| Year 2 | Dec-15 | 245,515 | 208,554 | ||||||||
| Year 3 | Dec-16 | 246,200 | 192,752 | ||||||||
| Year 4 | Dec-17 | 246,854 | 178,123 | ||||||||
| Year 5 | Dec-18 | 247,475 | 164,582 | ||||||||
| Year 6 | Dec-19 | 248,061 | 152,048 | ||||||||
| Year 7 | Dec-20 | 248,611 | 140,447 | ||||||||
| Year 8 | Dec-21 | 249,121 | 129,710 | ||||||||
| Year 9 | Dec-22 | 249,590 | 119,773 | ||||||||
| Year 10 | Dec-23 | 250,012 | 110,577 | ||||||||
| Total Cash Flow | $ | 2,476,241 | $ | 1,622,190 | |||||||
| Property Resale @ 8.25% | 3,119,500 | 1,379,710 | |||||||||
| Total Property Present Value | $ | 3,001,899 | |||||||||
| Rounded | $ | 3,000,000 | |||||||||
| Per Square Foot | $ | 66.00 | |||||||||
| 176 |
| Comparable Sales | ||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Movie Theater | 9020 Ulmerton Rd | Largo | FL | 30,239 | $ | 2,400,000 | $ | 79.37 | 6/27/2013 | N/A | N/A | |||||||||||||||||
| Malco Oxford Commons | 206 Commonwealth Blvd | Oxford | MS | 35,087 | $ | 2,900,000 | $ | 82.65 | 6/6/2013 | N/A | N/A | |||||||||||||||||
| Andover Cinema | 1836 Bunker Lake Blvd NW | Andover | MN | 34,429 | $ | 2,250,000 | $ | 65.35 | 11/13/2012 | N/A | N/A | |||||||||||||||||
| Carmike Cinemas | 2401 NW 12th Ave | Ardmore | OK | 30,729 | $ | 4,780,000 | $ | 155.55 | 5/17/2012 | $ | 430,200 | 9.00 | % | |||||||||||||||
| Cinetopia | 11700 SE 7th St | Vancouver | WA | 36,427 | $ | 7,400,000 | $ | 203.15 | 12/30/2011 | $ | 658,600 | 8.90 | % | |||||||||||||||
| Wynnsong Cinema | 1640 John B White Sr Blvd | Spartanburg | SC | 22,734 | $ | 1,772,500 | $ | 77.97 | 12/13/2011 | $ | 141,800 | 8.00 | % | |||||||||||||||
| AMC Theatres | 400 Potomac Blvd | Mount Vernon | IL | 23,962 | $ | 4,782,420 | $ | 199.58 | 9/12/2011 | $ | 334,769 | 7.00 | % | |||||||||||||||
| Crossroads Cinema | 1211 E I-240 Service Rd | Oklahoma City | OK | 64,440 | $ | 4,650,000 | $ | 72.16 | 2/10/2011 | N/A | N/A | |||||||||||||||||
| Min | $ | 65.35 | 7.00 | % | ||||||||||||||||||||||||
| Max | $ | 203.15 | 9.00 | % | ||||||||||||||||||||||||
| Average | $ | 116.97 | 8.23 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $60.00 to $80.00 per square foot | |||||||||||||||||||||||||||
| 177 |
PT1030 – Rite Aid – Wheelersburg, OH
| 178 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 8130 Ohio River Rd. | Interest Appraised: | Leased Fee | |||
| City: | Wheelersburg | Value Premise: | Market Value | |||
| State: | OH | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Scioto | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 45694 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.11 | Frontage: | Good | |||
| Gross Land Area (sf): | 48,352 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 39145C 0426E | Location Rating: | Good | |||
| FEMA Map Date: | 4/18/2011 | Number of Parking Spaces: | 40 | |||
| Parking Ratio (per 1,000 SF): | 3.58 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1998 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 11,180 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 11,180 | Actual Age (years): | 16 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.32 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 170965000; 171322000; 171315001 | Zoning Municipality: | N/A | |||
| Taxing Authority/Jurisdiction: | Scioto County | Current Zoning: | N/A | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $371,750 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $20,068 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.79 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $16.10 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | June 15, 2018 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 6/15/2028 at | |||
| Landlord pays CapEx | $13,500/mo. ($14.49/sf) to 6/15/2018, $14,513/mo. | |||||
| Occupancy: | 100% | ($15.58/sf) to 6/15/2023, and $15,601/mo. ($16.75/sf) to | ||||
| 6/15/2028. These terms are utilized in our second scenario | ||||||
| with the new rent assumed to begin 7/1/2014. | ||||||
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $1,990,000 | |||
| Sales Comparison Approach: | $170.00 to $200.00 per square foot | Value PSF of NRA: | $178.00 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $1,990,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $14.50 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $16.10 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,020,000 | |||
| Sales Comparison Approach: | $170.00 to $200.00 per square foot | Value PSF of NRA: | $180.68 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,020,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $14.50 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $16.10 | |||
| Expense Growth | 3.00% | |||||
| 179 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,236 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 1,990,000 | ||
| Value PSF of NRA: | $ | 178.00 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 14.50 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1 Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 180 |
| Rite Aid | ||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow - Scenario 1 | ||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 180,000 | $ | 180,000 | $ | 180,000 | $ | 180,000 | $ | 181,228 | $ | 182,456 | $ | 182,456 | $ | 182,456 | $ | 182,456 | $ | 185,497 | $ | 191,579 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (30,409 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 180,000 | 180,000 | 180,000 | 180,000 | 150,819 | 182,456 | 182,456 | 182,456 | 182,456 | 185,497 | 191,579 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 18,350 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,670 | 21,290 | 21,929 | 22,587 | 19,387 | 23,962 | 24,681 | 25,421 | 26,184 | 26,970 | 27,779 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 40,235 | 41,442 | 42,686 | 43,966 | 37,737 | 46,643 | 48,043 | 49,483 | 50,968 | 52,498 | 54,073 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 220,235 | 221,442 | 222,686 | 223,966 | 188,556 | 229,099 | 230,499 | 231,939 | 233,424 | 237,995 | 245,652 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 220,235 | 221,442 | 222,686 | 223,966 | 188,556 | 229,099 | 230,499 | 231,939 | 233,424 | 237,995 | 245,652 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 22,021 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,670 | 21,290 | 21,929 | 22,587 | 23,264 | 23,962 | 24,681 | 25,421 | 26,184 | 26,970 | 27,779 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 40,235 | 41,442 | 42,686 | 43,966 | 45,285 | 46,643 | 48,043 | 49,483 | 50,968 | 52,498 | 54,073 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 180,000 | 180,000 | 180,000 | 180,000 | 143,271 | 182,456 | 182,456 | 182,456 | 182,456 | 185,497 | 191,579 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 31,458 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 28,053 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 73,000 | 11,100 | ||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,236 | 2,303 | 2,443 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | |||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,236 | 2,303 | 73,000 | 2,443 | 70,611 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 177,764 | $ | 177,697 | $ | 107,000 | $ | 177,557 | $ | 72,660 | $ | 179,864 | $ | 179,786 | $ | 179,706 | $ | 179,624 | $ | 182,580 | $ | 188,574 | ||||||||||||||||||||||
| 181 |
| Rite Aid | ||||||||||||||
| Discounted Cash Flow Analysis - Scenario 1 | ||||||||||||||
| As of December 31, 2013 | ||||||||||||||
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.00% | ||||||||||
| Year 1 | Dec-14 | $ | 177,764 | $ | 163,086 | |||||||||
| Year 2 | Dec-15 | 177,697 | 149,564 | |||||||||||
| Year 3 | Dec-16 | 107,000 | 82,624 | |||||||||||
| Year 4 | Dec-17 | 177,557 | 125,786 | |||||||||||
| Year 5 | Dec-18 | 72,660 | 47,224 | |||||||||||
| Year 6 | Dec-19 | 179,864 | 107,247 | |||||||||||
| Year 7 | Dec-20 | 179,786 | 98,349 | |||||||||||
| Year 8 | Dec-21 | 179,706 | 90,188 | |||||||||||
| Year 9 | Dec-22 | 179,624 | 82,704 | |||||||||||
| Year 10 | Dec-23 | 182,580 | 77,124 | |||||||||||
| Total Cash Flow | $ | 1,614,238 | $ | 1,023,896 | ||||||||||
| Property Resale @ 8.25% | 2,275,726 | 961,291 | ||||||||||||
| Total Property Present Value | $ | 1,985,187 | ||||||||||||
| Rounded | $ | 1,990,000 | ||||||||||||
| Per Square Foot | $ | 178.00 | ||||||||||||
| 182 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,236 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,020,000 | ||
| Value PSF of NRA: | $ | 180.68 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 14.50 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 183 |
| Rite Aid | ||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow - Scenario 2 | ||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 171,000 | $ | 162,000 | $ | 162,000 | $ | 162,000 | $ | 169,091 | $ | 174,156 | $ | 174,156 | $ | 174,156 | $ | 174,156 | $ | 181,772 | $ | 187,212 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 171,000 | 162,000 | 162,000 | 162,000 | 169,091 | 174,156 | 174,156 | 174,156 | 174,156 | 181,772 | 187,212 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 22,021 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,670 | 21,290 | 21,929 | 22,587 | 23,264 | 23,962 | 24,681 | 25,421 | 26,184 | 26,970 | 27,779 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 40,235 | 41,442 | 42,686 | 43,966 | 45,285 | 46,643 | 48,043 | 49,483 | 50,968 | 52,498 | 54,073 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 211,235 | 203,442 | 204,686 | 205,966 | 214,376 | 220,799 | 222,199 | 223,639 | 225,124 | 234,270 | 241,285 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 211,235 | 203,442 | 204,686 | 205,966 | 214,376 | 220,799 | 222,199 | 223,639 | 225,124 | 234,270 | 241,285 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 22,021 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,670 | 21,290 | 21,929 | 22,587 | 23,264 | 23,962 | 24,681 | 25,421 | 26,184 | 26,970 | 27,779 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 40,235 | 41,442 | 42,686 | 43,966 | 45,285 | 46,643 | 48,043 | 49,483 | 50,968 | 52,498 | 54,073 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 171,000 | 162,000 | 162,000 | 162,000 | 169,091 | 174,156 | 174,156 | 174,156 | 174,156 | 181,772 | 187,212 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 73,000 | 11,100 | ||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,236 | 2,303 | 2,443 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | |||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,236 | 2,303 | 73,000 | 2,443 | 11,100 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 168,764 | $ | 159,697 | $ | 89,000 | $ | 159,557 | $ | 157,991 | $ | 171,564 | $ | 171,486 | $ | 171,406 | $ | 171,324 | $ | 178,855 | $ | 184,207 | ||||||||||||||||||||||
| 184 |
| Rite Aid | ||||||||||||||
| Discounted Cash Flow Analysis - Scenario 2 | ||||||||||||||
| As of December 31, 2013 | ||||||||||||||
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 8.50% | ||||||||||
| Year 1 | Dec-14 | $ | 168,764 | $ | 155,543 | |||||||||
| Year 2 | Dec-15 | 159,697 | 135,655 | |||||||||||
| Year 3 | Dec-16 | 89,000 | 69,679 | |||||||||||
| Year 4 | Dec-17 | 159,557 | 115,132 | |||||||||||
| Year 5 | Dec-18 | 157,991 | 105,071 | |||||||||||
| Year 6 | Dec-19 | 171,564 | 105,159 | |||||||||||
| Year 7 | Dec-20 | 171,486 | 96,877 | |||||||||||
| Year 8 | Dec-21 | 171,406 | 89,246 | |||||||||||
| Year 9 | Dec-22 | 171,324 | 82,215 | |||||||||||
| Year 10 | Dec-23 | 178,855 | 79,105 | |||||||||||
| Total Cash Flow | $ | 1,599,644 | $ | 1,033,683 | ||||||||||
| Property Resale @ 8.25% | 2,223,852 | 983,577 | ||||||||||||
| Total Property Present Value | $ | 2,017,260 | ||||||||||||
| Rounded | $ | 2,020,000 | ||||||||||||
| Per Square Foot | $ | 180.68 | ||||||||||||
| 185 |
| Comparable Sales | ||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||
| Rite Aid | 335 Crystal Ln | Strasburg | VA | 11,280 | $ | 1,975,000 | $ | 175.09 | 9/16/2013 | $ | 162,938 | 8.25 | % | |||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | |||||||||||||||
| Rite Aid | 3295 Centerville Hwy | Snellville | GA | 10,594 | $ | 2,460,000 | $ | 232.21 | 8/8/2013 | $ | 184,500 | 7.50 | % | |||||||||||||||
| Rite Aid | 3362 Navarre Ave | Oregon | OH | 14,565 | $ | 5,585,000 | $ | 383.45 | 6/14/2013 | $ | 474,725 | 8.50 | % | |||||||||||||||
| Rite Aid | 2005 Maple St | Rome | GA | 14,673 | $ | 5,152,100 | $ | 351.13 | 6/13/2013 | $ | 412,168 | 8.00 | % | |||||||||||||||
| Rite Aid | 501 E Emmitt Ave | Waverly | OH | 10,600 | $ | 2,395,000 | $ | 225.94 | 5/10/2013 | $ | 215,550 | 9.00 | % | |||||||||||||||
| Rite Aid | 1501 N Main St | Findlay | OH | 14,564 | $ | 4,141,800 | $ | 284.39 | 10/3/2012 | $ | 373,176 | 9.01 | % | |||||||||||||||
| Min | $ | 175.09 | 7.50 | % | ||||||||||||||||||||||||
| Max | $ | 383.45 | 9.01 | % | ||||||||||||||||||||||||
| Average | $ | 279.87 | 8.28 | % | ||||||||||||||||||||||||
| Concluded Range of Price PSF | $170.00 to $200.00 per square foot | |||||||||||||||||||||||||||
| 186 |
PT1031 – Tractor Supply – Paducah, KY
| 187 |
| BASIC INFORMATION | ||||||
| Property Name: | Tractor Supply | Report Type: | Restricted Appraisal Report | |||
| Address: | 5525 US HWY 60 W | Interest Appraised: | Leased Fee | |||
| City: | Paducah | Value Premise: | Market Value | |||
| State: | KY | Date of Value- "As Is": | December 31, 2013 | |||
| County: | McCracken | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 42003 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 3.54 | Frontage: | Average | |||
| Gross Land Area (sf): | 154,202 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 240151 0129F | Location Rating: | Average | |||
| FEMA Map Date: | 11/2/2011 | Number of Parking Spaces: | 98 | |||
| Parking Ratio (per 1,000 SF): | 4.52 | |||||
| Parking Type: | Paved open surface parking |
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2004 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 21,677 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 21,677 | Actual Age (years): | 10 | |||
| # of Buildings: | 1 | Tenant: | Tractor Supply | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.11 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 076-20-00-033.02 | Zoning Municipality: | McCracken County | |||
| Taxing Authority/Jurisdiction: | McCracken County | Current Zoning: | C, Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,158,600 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $19,515 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $0.90 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Tractor Supply | Current Rent $/sf: | $7.94 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | December 1, 2014 | |||
| Lease Expiration: | November 19, 2019 | Rent at Bump Date $/sf: | $8.74 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 12/31/2028 at | |||
| Landlord pays CapEx | $14,346/mo. ($7.94/sf). These terms are utilized in our | |||||
| Occupancy: | 100% | second scenario with the new rent assumed to begin 7/1/2014. |
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,240,000 | |||
| Sales Comparison Approach: | $75.00 to $150.00 per square foot | Value PSF of NRA: | $103.34 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,240,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.75% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $8.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $7.94 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,200,000 | |||
| Sales Comparison Approach: | $75.00 to $150.00 per square foot | Value PSF of NRA: | $101.49 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,200,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.50% | |||||
| Discount Rate: | 7.75% | Market Rent $/sf: | $8.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $7.94 | |||
| Expense Growth | 3.00% |
| 188 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,335 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 7.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,240,000 | ||
| Value PSF of NRA: | $ | 103.34 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 8.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 189 |
| Tractor Supply | ||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prospective Cash Flow - Scenario 1 | ||||||||||||||||||||||||||||||||||||||||||||
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 173,585 | $ | 189,365 | $ | 189,365 | $ | 189,365 | $ | 189,365 | $ | 190,338 | $ | 207,068 | $ | 207,068 | $ | 207,068 | $ | 207,068 | $ | 207,068 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (16,753 | ) | (51,767 | ) | ||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 173,585 | 189,365 | 189,365 | 189,365 | 189,365 | 173,585 | 155,301 | 207,068 | 207,068 | 207,068 | 207,068 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,935 | 39,073 | 40,245 | 41,452 | 42,696 | 40,312 | 33,972 | 46,655 | 48,055 | 49,496 | 50,981 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,100 | 20,703 | 21,324 | 21,964 | 22,623 | 21,360 | 18,000 | 24,720 | 25,462 | 26,226 | 27,013 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 58,035 | 59,776 | 61,569 | 63,416 | 65,319 | 61,672 | 51,972 | 71,375 | 73,517 | 75,722 | 77,994 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 231,620 | 249,141 | 250,934 | 252,781 | 254,684 | 235,257 | 207,273 | 278,443 | 280,585 | 282,790 | 285,062 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 231,620 | 249,141 | 250,934 | 252,781 | 254,684 | 235,257 | 207,273 | 278,443 | 280,585 | 282,790 | 285,062 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,935 | 39,073 | 40,245 | 41,452 | 42,696 | 43,977 | 45,296 | 46,655 | 48,055 | 49,496 | 50,981 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,100 | 20,703 | 21,324 | 21,964 | 22,623 | 23,301 | 24,000 | 24,720 | 25,462 | 26,226 | 27,013 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 58,035 | 59,776 | 61,569 | 63,416 | 65,319 | 67,278 | 69,296 | 71,375 | 73,517 | 75,722 | 77,994 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 173,585 | 189,365 | 189,365 | 189,365 | 189,365 | 167,979 | 137,977 | 207,068 | 207,068 | 207,068 | 207,068 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 116,476 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 38,204 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 10,200 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,335 | 4,670 | 4,954 | 5,103 | 5,256 | 5,414 | 5,576 | 5,744 | 5,916 | 6,093 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,335 | 4,670 | 10,200 | 4,954 | 5,103 | 5,256 | 160,094 | 5,576 | 5,744 | 5,916 | 6,093 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 169,250 | $ | 184,695 | $ | 179,165 | $ | 184,411 | $ | 184,262 | $ | 162,723 | $ | (22,117 | ) | $ | 201,492 | $ | 201,324 | $ | 201,152 | $ | 200,975 | |||||||||||||||||||||
| 190 |
| Tractor Supply |
| Discounted Cash Flow Analysis - Scenario 1 |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 8.50% | |||||||
| Year 1 | Dec-14 | $ | 169,250 | $ | 155,991 | ||||||
| Year 2 | Dec-15 | 184,695 | 156,890 | ||||||||
| Year 3 | Dec-16 | 179,165 | 140,270 | ||||||||
| Year 4 | Dec-17 | 184,411 | 133,066 | ||||||||
| Year 5 | Dec-18 | 184,262 | 122,543 | ||||||||
| Year 6 | Dec-19 | 162,723 | 99,740 | ||||||||
| Year 7 | Dec-20 | (22,117 | ) | (12,494 | ) | ||||||
| Year 8 | Dec-21 | 201,492 | 104,911 | ||||||||
| Year 9 | Dec-22 | 201,324 | 96,611 | ||||||||
| Year 10 | Dec-23 | 201,152 | 88,967 | ||||||||
| Total Cash Flow | $ | 1,646,357 | $ | 1,086,494 | |||||||
| Property Resale @ 7.75% | 2,618,408 | 1,158,084 | |||||||||
| Total Property Present Value | $ | 2,244,578 | |||||||||
| Rounded | $ | 2,240,000 | |||||||||
| Per Square Foot | $ | 103.34 | |||||||||
| 191 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,335 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.75 | % | ||
| Terminal Capitalization Rate: | 7.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,200,000 | ||
| Value PSF of NRA: | $ | 101.49 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 8.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 15.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 192 |
| Tractor Supply |
| Schedule of Prospective Cash Flow - Scenario 2 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | $ | 172,150 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,935 | 39,073 | 40,245 | 41,452 | 42,696 | 43,977 | 45,296 | 46,655 | 48,055 | 49,496 | 50,981 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,100 | 20,703 | 21,324 | 21,964 | 22,623 | 23,301 | 24,000 | 24,720 | 25,462 | 26,226 | 27,013 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 58,035 | 59,776 | 61,569 | 63,416 | 65,319 | 67,278 | 69,296 | 71,375 | 73,517 | 75,722 | 77,994 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 230,185 | 231,926 | 233,719 | 235,566 | 237,469 | 239,428 | 241,446 | 243,525 | 245,667 | 247,872 | 250,144 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 230,185 | 231,926 | 233,719 | 235,566 | 237,469 | 239,428 | 241,446 | 243,525 | 245,667 | 247,872 | 250,144 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,935 | 39,073 | 40,245 | 41,452 | 42,696 | 43,977 | 45,296 | 46,655 | 48,055 | 49,496 | 50,981 | |||||||||||||||||||||||||||||||||
| RE Tax | 20,100 | 20,703 | 21,324 | 21,964 | 22,623 | 23,301 | 24,000 | 24,720 | 25,462 | 26,226 | 27,013 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 58,035 | 59,776 | 61,569 | 63,416 | 65,319 | 67,278 | 69,296 | 71,375 | 73,517 | 75,722 | 77,994 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | 172,150 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 10,200 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,335 | 4,670 | 4,954 | 5,103 | 5,256 | 5,414 | 5,576 | 5,744 | 5,916 | 6,093 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,335 | 4,670 | 10,200 | 4,954 | 5,103 | 5,256 | 5,414 | 5,576 | 5,744 | 5,916 | 6,093 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 167,815 | $ | 167,480 | $ | 161,950 | $ | 167,196 | $ | 167,047 | $ | 166,894 | $ | 166,736 | $ | 166,574 | $ | 166,406 | $ | 166,234 | $ | 166,057 | ||||||||||||||||||||||
| 193 |
| Tractor Supply |
| Discounted Cash Flow Analysis - Scenario 2 |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.75% | |||||||
| Year 1 | Dec-14 | $ | 167,815 | $ | 155,745 | ||||||
| Year 2 | Dec-15 | 167,480 | 144,254 | ||||||||
| Year 3 | Dec-16 | 161,950 | 129,458 | ||||||||
| Year 4 | Dec-17 | 167,196 | 124,039 | ||||||||
| Year 5 | Dec-18 | 167,047 | 115,014 | ||||||||
| Year 6 | Dec-19 | 166,894 | 106,644 | ||||||||
| Year 7 | Dec-20 | 166,736 | 98,880 | ||||||||
| Year 8 | Dec-21 | 166,574 | 91,679 | ||||||||
| Year 9 | Dec-22 | 166,406 | 84,999 | ||||||||
| Year 10 | Dec-23 | 166,234 | 78,804 | ||||||||
| Total Cash Flow | $ | 1,664,332 | $ | 1,129,516 | |||||||
| Property Resale @ 7.50% | 2,249,427 | 1,066,348 | |||||||||
| Total Property Present Value | $ | 2,195,864 | |||||||||
| Rounded | $ | 2,200,000 | |||||||||
| Per Square Foot | $ | 101.49 | |||||||||
| 194 |
| Comparable Sales |
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Tractor Supply | N/A | Marion | IN | 19,097 | $ | 3,010,000 | $ | 157.62 | Under Contract | $ | 241,005 | 8.01 | % | ||||||||||||||||
| Tractor Supply | N/A | Chickasha | OK | 19,185 | $ | 3,244,000 | $ | 169.09 | Under Contract | $ | 229,950 | 7.09 | % | ||||||||||||||||
| Tractor Supply | 994 US Highway 27 S | Cynthiana | KY | 40,700 | $ | 1,955,080 | $ | 48.04 | 7/10/2013 | $ | 175,957 | 9.00 | % | ||||||||||||||||
| Tractor Supply | 276 S Hwy 16 | Denver | NC | 19,097 | $ | 4,209,250 | $ | 220.41 | 4/3/2012 | $ | 331,689 | 7.88 | % | ||||||||||||||||
| Tractor Supply | 90 Marketplace Dr | Newnan | GA | 19,097 | $ | 3,943,000 | $ | 206.47 | 11/21/2012 | $ | 279,953 | 7.10 | % | ||||||||||||||||
| Tractor Supply | 8005 Marketplace Dr | Oak Ridge | NC | 21,677 | $ | 3,539,000 | $ | 163.26 | 11/18/2013 | $ | 256,578 | 7.25 | % | ||||||||||||||||
| Tractor Supply Co. | 2310 Mercury Blvd | Murfreesboro | TN | 24,000 | $ | 3,246,000 | $ | 135.25 | 7/28/2011 | $ | 243,450 | 7.50 | % | ||||||||||||||||
| Tractor Supply | 1266 Highway 641 S | Paris | TN | 22,670 | $ | 2,250,000 | $ | 99.25 | 12/21/2011 | $ | 189,675 | 8.43 | % | ||||||||||||||||
| Tractor Supply | 476 W Third St | Forest | MS | 24,708 | $ | 1,080,000 | $ | 43.71 | 8/12/2013 | $ | 91,800 | 8.50 | % | ||||||||||||||||
| Min | $ | 43.71 | 7.09 | % | |||||||||||||||||||||||||
| Max | $ | 220.41 | 9.00 | % | |||||||||||||||||||||||||
| Average | $ | 138.12 | 7.86 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $75.00 to $150.00 per square foot | ||||||||||||||||||||||||||||
| 195 |
PT1032 – Rite Aid – St. Marys, OH
| 196 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 1502 Executive Dr. | Interest Appraised: | Leased Fee | |||
| City: | St. Marys | Value Premise: | Market Value | |||
| State: | OH | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Auglaize | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 45885 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.60 | Frontage: | Average | |||
| Gross Land Area (sf): | 113,256 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 390022 0080C | Location Rating: | Average | |||
| FEMA Map Date: | 9/6/1989 | Number of Parking Spaces: | 60 | |||
| Parking Ratio (per 1,000 SF): | 4.12 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2005 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 14,564 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 14,564 | Actual Age (years): | 9 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.78 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | K3262300100; K3262300200 | Zoning Municipality: | City of St Marys | |||
| Taxing Authority/Jurisdiction: | Auglaize County | Current Zoning: | C2, General Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $419,840 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $25,189 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.73 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $17.01 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | July 31, 2025 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,060,000 | |||
| Sales Comparison Approach: | $200.00 to $230.00 per square foot | Value PSF of NRA: | $210.11 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $3,060,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 8.00% | |||||
| Market Rent $/sf: | $16.00 | |||||
| Contract Rent $/sf: | $17.01 | |||||
| 197 |
| Rite Aid |
| Direct Capitalization Approach |
| As of December 31, 2013 |
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 247,690 | $ | 17.01 | ||||
| Expense Reimbursement Revenue | 50,676 | 3.48 | ||||||
| Total Potential Gross Revenue | $ | 298,366 | $ | 20.49 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 298,366 | $ | 20.49 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 25,487 | $ | 1.75 | ||||
| Real Estate Taxes | 25,189 | 1.73 | ||||||
| Total Operating Expenses | $ | 50,676 | $ | 3.48 | ||||
| Capital Reserves | $ | 2,913 | 0.20 | |||||
| Net Operating Income | $ | 244,777 | $ | 16.81 | ||||
| Overall Capitalization Rate | 8.00 | % | ||||||
| Indicated Property Value | $ | 3,059,713 | $ | 210.09 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 3,060,000 | $ | 210.11 | ||||
| 198 |
| Comparable Sales |
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Rite Aid | 101 E Fleming Dr | Morganton | NC | 10,908 | $ | 3,200,000 | $ | 293.36 | 9/9/2013 | $ | 256,000 | 8.00 | % | ||||||||||||||||
| Rite Aid | 3295 Centerville Hwy | Snellville | GA | 10,594 | $ | 2,460,000 | $ | 232.21 | 8/8/2013 | $ | 184,500 | 7.50 | % | ||||||||||||||||
| Rite Aid | 3362 Navarre Ave | Oregon | OH | 14,565 | $ | 5,585,000 | $ | 383.45 | 6/14/2013 | $ | 474,725 | 8.50 | % | ||||||||||||||||
| Rite Aid | 2005 Maple St | Rome | GA | 14,673 | $ | 5,152,100 | $ | 351.13 | 6/13/2013 | $ | 412,168 | 8.00 | % | ||||||||||||||||
| Rite Aid | 501 E Emmitt Ave | Waverly | OH | 10,600 | $ | 2,395,000 | $ | 225.94 | 5/10/2013 | $ | 215,550 | 9.00 | % | ||||||||||||||||
| Rite Aid | 613 W Main St | Louisville | OH | 14,564 | $ | 4,507,011 | $ | 309.46 | 11/15/2012 | $ | 419,152 | 9.30 | % | ||||||||||||||||
| Rite Aid | 1501 N Main St | Findlay | OH | 14,564 | $ | 4,141,800 | $ | 284.39 | 10/3/2012 | $ | 373,176 | 9.01 | % | ||||||||||||||||
| Rite Aid | 330 River St | Cambridge | MA | 13,777 | $ | 6,675,000 | $ | 484.50 | 2/29/2012 | $ | 440,550 | 6.60 | % | ||||||||||||||||
| Min | $ | 225.94 | 6.60 | % | |||||||||||||||||||||||||
| Max | $ | 484.50 | 9.30 | % | |||||||||||||||||||||||||
| Average | $ | 320.56 | 8.24 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $200.00 to $230.00 per square foot | ||||||||||||||||||||||||||||
| 199 |
PT1033 – Tractor Supply – Glasgow, KY
| 200 |
| BASIC INFORMATION | ||||||
| Property Name: | Tractor Supply | Report Type: | Restricted Appraisal Report | |||
| Address: | 3300 Veterans Outer Loop | Interest Appraised: | Leased Fee | |||
| City: | Glasgow | Value Premise: | Market Value | |||
| State: | KY | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Barren | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 42141 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 3.69 | Frontage: | Average | |||
| Gross Land Area (sf): | 160,736 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X, with A on border | Shape: | Regular | |||
| FEMA Community Map #: | 210007 0165C | Location Rating: | Average | |||
| FEMA Map Date: | 5/3/2011 | Number of Parking Spaces: | 93 | |||
| Parking Ratio (per 1,000 SF): | 4.29 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2005 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 21,688 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 21,688 | Actual Age (years): | 9 | |||
| # of Buildings: | 1 | Tenant: | Tractor Supply | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.41 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 79-71E | Zoning Municipality: | City of Glasgow | |||
| Taxing Authority/Jurisdiction: | Barren County & City of Glasgow | Current Zoning: | B3,Highway Service Business | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,677,500 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $18,582 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $0.86 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Tractor Supply | Current Rent $/sf: | $9.28 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | April 1, 2015 | |||
| Lease Expiration: | March 31, 2020 | Rent at Bump Date $/sf: | $10.21 | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 12/31/2028 at | |||
| Landlord pays CapEx | $16,775/mo. ($9.28/sf). These terms are utilized in our | |||||
| Occupancy: | 100% | second scenario with the new rent assumed to begin | ||||
| 7/1/2014. | ||||||
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,580,000 | |||
| Sales Comparison Approach: | $100.00 to $150.00 per square foot | Value PSF of NRA: | $118.96 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,580,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.75% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $9.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $9.28 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,580,000 | |||
| Sales Comparison Approach: | $100.00 to $150.00 per square foot | Value PSF of NRA: | $118.96 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,580,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.50% | |||||
| Discount Rate: | 7.75% | Market Rent $/sf: | $9.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $9.28 | |||
| Expense Growth | 3.00% | |||||
| 201 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,338 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 7.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,580,000 | ||
| Value PSF of NRA: | $ | 118.96 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 9.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1 Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 202 |
| Tractor Supply |
| Schedule of Prospective Cash Flow - Scenario 1 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 201,300 | $ | 216,398 | $ | 221,430 | $ | 221,430 | $ | 221,430 | $ | 221,430 | $ | 230,160 | $ | 233,069 | $ | 233,069 | $ | 233,069 | $ | 233,069 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (77,690 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 201,300 | 216,398 | 221,430 | 221,430 | 221,430 | 221,430 | 152,470 | 233,069 | 233,069 | 233,069 | 233,069 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,954 | 39,093 | 40,265 | 41,473 | 42,718 | 43,999 | 30,213 | 46,679 | 48,079 | 49,521 | 51,007 | |||||||||||||||||||||||||||||||||
| RE Tax | 19,121 | 19,695 | 20,285 | 20,894 | 21,521 | 22,166 | 15,221 | 23,516 | 24,222 | 24,949 | 25,697 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 57,075 | 58,788 | 60,550 | 62,367 | 64,239 | 66,165 | 45,434 | 70,195 | 72,301 | 74,470 | 76,704 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 258,375 | 275,186 | 281,980 | 283,797 | 285,669 | 287,595 | 197,904 | 303,264 | 305,370 | 307,539 | 309,773 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 258,375 | 275,186 | 281,980 | 283,797 | 285,669 | 287,595 | 197,904 | 303,264 | 305,370 | 307,539 | 309,773 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,954 | 39,093 | 40,265 | 41,473 | 42,718 | 43,999 | 45,319 | 46,679 | 48,079 | 49,521 | 51,007 | |||||||||||||||||||||||||||||||||
| RE Tax | 19,121 | 19,695 | 20,285 | 20,894 | 21,521 | 22,166 | 22,831 | 23,516 | 24,222 | 24,949 | 25,697 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 57,075 | 58,788 | 60,550 | 62,367 | 64,239 | 66,165 | 68,150 | 70,195 | 72,301 | 74,470 | 76,704 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 201,300 | 216,398 | 221,430 | 221,430 | 221,430 | 221,430 | 129,754 | 233,069 | 233,069 | 233,069 | 233,069 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 116,535 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 43,001 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 5,400 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,338 | 4,602 | 4,740 | 4,882 | 5,028 | 5,179 | 5,335 | 5,495 | 5,660 | 5,829 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,338 | 5,400 | 4,602 | 4,740 | 4,882 | 5,028 | 164,715 | 5,335 | 5,495 | 5,660 | 5,829 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 196,962 | $ | 210,998 | $ | 216,828 | $ | 216,690 | $ | 216,548 | $ | 216,402 | ($ | 34,961 | ) | $ | 227,734 | $ | 227,574 | $ | 227,409 | $ | 227,240 | |||||||||||||||||||||
| 203 |
| Tractor Supply |
| Discounted Cash Flow Analysis - Scenario 1 |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 8.50% | |||||||
| Year 1 | Dec-14 | $ | 196,962 | $ | 181,532 | ||||||
| Year 2 | Dec-15 | 210,998 | 179,233 | ||||||||
| Year 3 | Dec-16 | 216,828 | 169,756 | ||||||||
| Year 4 | Dec-17 | 216,690 | 156,358 | ||||||||
| Year 5 | Dec-18 | 216,548 | 144,014 | ||||||||
| Year 6 | Dec-19 | 216,402 | 132,643 | ||||||||
| Year 7 | Dec-20 | (34,961 | ) | (19,750 | ) | ||||||
| Year 8 | Dec-21 | 227,734 | 118,574 | ||||||||
| Year 9 | Dec-22 | 227,574 | 109,208 | ||||||||
| Year 10 | Dec-23 | 227,409 | 100,580 | ||||||||
| Total Cash Flow | $ | 1,922,184 | $ | 1,272,148 | |||||||
| Property Resale @ 7.75% | 2,947,195 | 1,303,501 | |||||||||
| Total Property Present Value | $ | 2,575,649 | |||||||||
| Rounded | $ | 2,580,000 | |||||||||
| Per Square Foot | $ | 118.96 | |||||||||
| 204 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,338 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.75 | % | ||
| Terminal Capitalization Rate: | 7.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,580,000 | ||
| Value PSF of NRA: | $ | 118.96 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 9.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 15.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 205 |
| Tractor Supply |
| Schedule of Prospective Cash Flow - Scenario 2 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | $ | 201,300 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,954 | 39,093 | 40,265 | 41,473 | 42,718 | 43,999 | 45,319 | 46,679 | 48,079 | 49,521 | 51,007 | |||||||||||||||||||||||||||||||||
| RE Tax | 19,121 | 19,695 | 20,285 | 20,894 | 21,521 | 22,166 | 22,831 | 23,516 | 24,222 | 24,949 | 25,697 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 57,075 | 58,788 | 60,550 | 62,367 | 64,239 | 66,165 | 68,150 | 70,195 | 72,301 | 74,470 | 76,704 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 258,375 | 260,088 | 261,850 | 263,667 | 265,539 | 267,465 | 269,450 | 271,495 | 273,601 | 275,770 | 278,004 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 258,375 | 260,088 | 261,850 | 263,667 | 265,539 | 267,465 | 269,450 | 271,495 | 273,601 | 275,770 | 278,004 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 37,954 | 39,093 | 40,265 | 41,473 | 42,718 | 43,999 | 45,319 | 46,679 | 48,079 | 49,521 | 51,007 | |||||||||||||||||||||||||||||||||
| RE Tax | 19,121 | 19,695 | 20,285 | 20,894 | 21,521 | 22,166 | 22,831 | 23,516 | 24,222 | 24,949 | 25,697 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 57,075 | 58,788 | 60,550 | 62,367 | 64,239 | 66,165 | 68,150 | 70,195 | 72,301 | 74,470 | 76,704 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | 201,300 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 5,400 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,338 | 4,602 | 4,740 | 4,882 | 5,028 | 5,179 | 5,335 | 5,495 | 5,660 | 5,829 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,338 | 5,400 | 4,602 | 4,740 | 4,882 | 5,028 | 5,179 | 5,335 | 5,495 | 5,660 | 5,829 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 196,962 | $ | 195,900 | $ | 196,698 | $ | 196,560 | $ | 196,418 | $ | 196,272 | $ | 196,121 | $ | 195,965 | $ | 195,805 | $ | 195,640 | $ | 195,471 | ||||||||||||||||||||||
| 206 |
| Tractor Supply |
| Discounted Cash Flow Analysis - Scenario 2 |
| As of December 31, 2013 |
| For the | PV of Cash | ||||||||||
| Analysis | Year | Annual Cash | Flow | ||||||||
| Period | Ending | Flow | @ | 7.75% | |||||||
| Year 1 | Dec-14 | $ | 196,962 | $ | 182,795 | ||||||
| Year 2 | Dec-15 | 195,900 | 168,733 | ||||||||
| Year 3 | Dec-16 | 196,698 | 157,235 | ||||||||
| Year 4 | Dec-17 | 196,560 | 145,823 | ||||||||
| Year 5 | Dec-18 | 196,418 | 135,237 | ||||||||
| Year 6 | Dec-19 | 196,272 | 125,416 | ||||||||
| Year 7 | Dec-20 | 196,121 | 116,306 | ||||||||
| Year 8 | Dec-21 | 195,965 | 107,855 | ||||||||
| Year 9 | Dec-22 | 195,805 | 100,016 | ||||||||
| Year 10 | Dec-23 | 195,640 | 92,744 | ||||||||
| Total Cash Flow | $ | 1,962,341 | $ | 1,332,160 | |||||||
| Property Resale @ 7.50% | 2,630,320 | 1,246,912 | |||||||||
| Total Property Present Value | $ | 2,579,072 | |||||||||
| Rounded | $ | 2,580,000 | |||||||||
| Per Square Foot | $ | 118.96 | |||||||||
| 207 |
| Comparable Sales |
| Square | Estimated | ||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | ||||||||||||||||||||
| Tractor Supply | N/A | Marion | IN | 19,097 | $ | 3,010,000 | $ | 157.62 | Under Contract | $ | 241,005 | 8.01 | % | ||||||||||||||||
| Tractor Supply | N/A | Chickasha | OK | 19,185 | $ | 3,244,000 | $ | 169.09 | Under Contract | $ | 229,950 | 7.09 | % | ||||||||||||||||
| Tractor Supply | 994 US Highway 27 S | Cynthiana | KY | 40,700 | $ | 1,955,080 | $ | 48.04 | 7/10/2013 | $ | 175,957 | 9.00 | % | ||||||||||||||||
| Tractor Supply | 276 S Hwy 16 | Denver | NC | 19,097 | $ | 4,209,250 | $ | 220.41 | 4/3/2012 | $ | 331,689 | 7.88 | % | ||||||||||||||||
| Tractor Supply | 90 Marketplace Dr | Newnan | GA | 19,097 | $ | 3,943,000 | $ | 206.47 | 11/21/2012 | $ | 279,953 | 7.10 | % | ||||||||||||||||
| Tractor Supply | 8005 Marketplace Dr | Oak Ridge | NC | 21,677 | $ | 3,539,000 | $ | 163.26 | 11/18/2013 | $ | 256,578 | 7.25 | % | ||||||||||||||||
| Tractor Supply Co. | 2310 Mercury Blvd | Murfreesboro | TN | 24,000 | $ | 3,246,000 | $ | 135.25 | 7/28/2011 | $ | 243,450 | 7.50 | % | ||||||||||||||||
| Tractor Supply | 1266 Highway 641 S | Paris | TN | 22,670 | $ | 2,250,000 | $ | 99.25 | 12/21/2011 | $ | 189,675 | 8.43 | % | ||||||||||||||||
| Tractor Supply | 476 W Third St | Forest | MS | 24,708 | $ | 1,080,000 | $ | 43.71 | 8/12/2013 | $ | 91,800 | 8.50 | % | ||||||||||||||||
| Min | $ | 43.71 | 7.09 | % | |||||||||||||||||||||||||
| Max | $ | 220.41 | 9.00 | % | |||||||||||||||||||||||||
| Average | $ | 138.12 | 7.86 | % | |||||||||||||||||||||||||
| Concluded Range of Price PSF | $100.00 to $150.00 per square foot | ||||||||||||||||||||||||||||
| 208 |
PT1036 – Best Buy – Tupelo, MS
| 209 |
| BASIC INFORMATION | ||||||
| Property Name: | Best Buy | Report Type: | Restricted Appraisal Report | |||
| Address: | 3040 N. Gloster St. | Interest Appraised: | Leased Fee | |||
| City: | Tupelo | Value Premise: | Market Value | |||
| State: | MS | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Lee | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 38804 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 3.07 | Frontage: | Average | |||
| Gross Land Area (sf): | 133,729 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | AE | Shape: | Regular | |||
| FEMA Community Map #: | 280227 0162E | Location Rating: | Average | |||
| FEMA Map Date: | 2/3/2010 | Number of Parking Spaces: | 204 | |||
| Parking Ratio (per 1,000 SF): | 10.20 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2005 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 20,000 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 20,000 | Actual Age (years): | 9 | |||
| # of Buildings: | 1 | Tenant: | Best Buy | |||
| # of Stories: | 1 | Land to Building Ratio: | 6.69 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 084S-18-001-30 | Zoning Municipality: | City of Tupelo | |||
| Taxing Authority/Jurisdiction: | Lee County | Current Zoning: | RC, Regional Center | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $454,020 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $62,655 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $3.13 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Best Buy | Current Rent $/sf: | $14.89 | |||
| Tenant S&P Rating: | BB | Rent Bump Date: | None | |||
| Lease Expiration: | January 31, 2016 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes,Landlord pays CapEx | Comment: | CCPT has discussed an extension with Best Buy; however,Best Buy has requested a 30% rent reduction and CCPThas not agreed. Discussions are on-going. | |||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,760,000 | |||
| Sales Comparison Approach: | $130.00 to $150.00 per square foot | Value PSF of NRA: | $138.00 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,760,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.75% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $12.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $14.89 | |||
| Expense Growth: | 3.00% | |||||
| 210 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,000 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,760,000 | ||
| Value PSF of NRA: | $ | 138.00 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 12.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
| 1 Included in discount rate | ||||
| 2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx | ||||
| 211 |
| Best Buy |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 297,800 | $ | 297,800 | $ | 258,215 | $ | 254,616 | $ | 254,616 | $ | 254,616 | $ | 254,616 | $ | 262,042 | $ | 267,347 | $ | 267,347 | $ | 267,347 | ||||||||||||
| Absorption & Turnover Vacancy | 0 | 0 | (84,872 | ) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 297,800 | 297,800 | 173,343 | 254,616 | 254,616 | 254,616 | 254,616 | 262,042 | 267,347 | 267,347 | 267,347 | |||||||||||||||||||||||
| Expense Reimbursement Revenue | 97,655 | 100,585 | 69,068 | 106,710 | 109,912 | 113,209 | 116,605 | 120,104 | 123,706 | 127,418 | 131,240 | |||||||||||||||||||||||
| Total Potential Gross Revenue | 395,455 | 398,385 | 242,411 | 361,326 | 364,528 | 367,825 | 371,221 | 382,146 | 391,053 | 394,765 | 398,587 | |||||||||||||||||||||||
| Effective Gross Revenue | 395,455 | 398,385 | 242,411 | 361,326 | 364,528 | 367,825 | 371,221 | 382,146 | 391,053 | 394,765 | 398,587 | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||
| CAM | 35,000 | 36,050 | 37,132 | 38,245 | 39,393 | 40,575 | 41,792 | 43,046 | 44,337 | 45,667 | 47,037 | |||||||||||||||||||||||
| Real Estate Taxes | 62,655 | 64,535 | 66,471 | 68,465 | 70,519 | 72,634 | 74,813 | 77,058 | 79,369 | 81,751 | 84,203 | |||||||||||||||||||||||
| Total Operating Expenses | 97,655 | 100,585 | 103,603 | 106,710 | 109,912 | 113,209 | 116,605 | 120,104 | 123,706 | 127,418 | 131,240 | |||||||||||||||||||||||
| Net Operating Income | 297,800 | 297,800 | 138,808 | 254,616 | 254,616 | 254,616 | 254,616 | 262,042 | 267,347 | 267,347 | 267,347 | |||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||
| Tenant Improvements | 0 | 0 | 95,481 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Leasing Commissions | 0 | 0 | 46,977 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
| Capital Reserves | 4,000 | 4,120 | 4,244 | 4,371 | 4,502 | 4,637 | 4,776 | 4,919 | 5,067 | 5,219 | 5,376 | |||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,000 | 4,120 | 146,702 | 4,371 | 4,502 | 4,637 | 4,776 | 4,919 | 5,067 | 5,219 | 5,376 | |||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 293,800 | $ | 293,680 | $ | (7,894 | ) | $ | 250,245 | $ | 250,114 | $ | 249,979 | $ | 249,840 | $ | 257,123 | $ | 262,280 | $ | 262,128 | $ | 261,971 | |||||||||||
| 212 |
| Best Buy |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.00% | ||||||||||
| Year 1 | Dec-14 | $ | 293,800 | $ | 269,541 | |||||||||
| Year 2 | Dec-15 | 293,680 | 247,185 | |||||||||||
| Year 3 | Dec-16 | (7,894 | ) | (6,096 | ) | |||||||||
| Year 4 | Dec-17 | 250,245 | 177,280 | |||||||||||
| Year 5 | Dec-18 | 250,114 | 162,557 | |||||||||||
| Year 6 | Dec-19 | 249,979 | 149,054 | |||||||||||
| Year 7 | Dec-20 | 249,840 | 136,671 | |||||||||||
| Year 8 | Dec-21 | 257,123 | 129,041 | |||||||||||
| Year 9 | Dec-22 | 262,280 | 120,761 | |||||||||||
| Year 10 | Dec-23 | 262,128 | 110,726 | |||||||||||
| Total Cash Flow | $ | 2,361,295 | $ | 1,496,720 | ||||||||||
| Property Resale @ 8.75% | 2,994,286 | 1,264,819 | ||||||||||||
| Total Property Present Value | $ | 2,761,539 | ||||||||||||
| Rounded | $ | 2,760,000 | ||||||||||||
| Per Square Foot | $ | 138.00 | ||||||||||||
| 213 |
| Comparable Sales | ||||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Best Buy | 5635 Johnston St | Lafayette | LA | 45,000 | $ | 5,550,000 | $ | 123.33 | 10/4/2013 | $ | 492,840 | 8.88 | % | |||||||||||||||||||
| Best Buy | 975 N Point Dr | Alpharetta | GA | 45,321 | $ | 8,150,000 | $ | 179.83 | 9/11/2013 | $ | 731,870 | 8.98 | % | |||||||||||||||||||
| Best Buy | 3117 Turkey Creek Blvd | Joplin | MO | 30,000 | $ | 3,275,000 | $ | 109.17 | 3/28/2013 | $ | 270,188 | 8.25 | % | |||||||||||||||||||
| Best Buy | 5025 Jimmy Lee Smith Pky | Hiram | GA | 30,258 | $ | 5,200,000 | $ | 171.86 | 9/13/2012 | $ | 509,600 | 9.80 | % | |||||||||||||||||||
| Best Buy | 30830 Orchard Lake Rd | Farmington Hills | MI | 45,600 | $ | 12,000,000 | $ | 263.16 | 3/2/2012 | $ | 957,600 | 7.98 | % | |||||||||||||||||||
| Best Buy | 304 Market Plz | Southaven | MS | 30,645 | $ | 4,950,000 | $ | 161.53 | 9/26/2011 | $ | 438,570 | 8.86 | % | |||||||||||||||||||
| Best Buy | 7021 120th Ave | Kenosha | WI | 30,000 | $ | 6,600,000 | $ | 220.00 | 7/12/2011 | $ | 510,180 | 7.73 | % | |||||||||||||||||||
| Best Buy | 5425 S Harvey St | Norton Shores | MI | 30,056 | $ | 5,292,000 | $ | 176.07 | 3/30/2011 | $ | 394,783 | 7.46 | % | |||||||||||||||||||
| Best Buy | 3725 US Hwy 41 W | Marquette | MI | 30,040 | $ | 4,952,000 | $ | 164.85 | 2/15/2011 | $ | 387,742 | 7.83 | % | |||||||||||||||||||
| Min | $ | 109.17 | 7.46 | % | ||||||||||||||||||||||||||||
| Max | $ | 263.16 | 9.80 | % | ||||||||||||||||||||||||||||
| Average | $ | 174.42 | 8.42 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $130.00 to $150.00 per square foot | |||||||||||||||||||||||||||||||
| 214 |
PT1037 – Conn’s – Hurst, TX
| 215 |
| BASIC INFORMATION | ||||||
| Property Name: | Conn's | Report Type: | Restricted Appraisal Report | |||
| Address: | 747 NE Loop 820 | Interest Appraised: | Leased Fee | |||
| City: | Hurst | Value Premise: | Market Value | |||
| State: | TX | Date of Value- "As Is": | December 31, 2013 | |||
| County: | Tarrant | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 76053 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.06 | Frontage: | Good | |||
| Gross Land Area (sf): | 89,734 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 480601 0205K | Location Rating: | Good | |||
| FEMA Map Date: | 9/25/2009 | Number of Parking Spaces: | 99 | |||
| Parking Ratio (per 1,000 SF): | 3.92 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1999 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 25,230 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 25,230 | Actual Age (years): | 15 | |||
| # of Buildings: | 1 | Tenant: | Conn's | |||
| # of Stories: | 1 | Land to Building Ratio: | 3.56 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 00040996239 | Zoning Municipality: | City of Hurst | |||
| Taxing Authority/Jurisdiction: | Tarrant County | Current Zoning: | OCPD, Outdoor Commercial/Planned Development | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,750,000 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $46,986 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.86 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. |
| LEASE SUMMARY | ||||||
| Tenant: | Conn's | Current Rent $/sf: | $8.39 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | October 1, 2016 | |||
| Lease Expiration: | September 30, 2019 | Rent at Bump Date $/sf: | $8.66 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes and CapEx | Comment: | None | |||
| Occupancy: | 100% |
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,610,000 | |||
| Sales Comparison Approach: | $95.00 to $150.00 per square foot | Value PSF of NRA: | $103.45 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,610,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $10.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $8.39 | |||
| Expense Growth: | 3.00% |
| 216 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 5,046 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Basis Point Spread over OAR: | 0.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,610,000 | ||
| Value PSF of NRA: | $ | 103.45 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 10.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
The tenant has multiple extension options and based on our analysis we have assumed the first option at $8.91/sf is exercised since it is deemed to be below market
| 217 |
| Conn's |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 211,800 | $ | 211,800 | $ | 213,450 | $ | 218,400 | $ | 218,400 | $ | 219,975 | $ | 224,700 | $ | 224,700 | $ | 226,425 | $ | 231,600 | $ | 231,600 | ||||||||||||
| Scheduled Base Rental Revenue | 211,800 | 211,800 | 213,450 | 218,400 | 218,400 | 219,975 | 224,700 | 224,700 | 226,425 | 231,600 | 231,600 | |||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||
| CAM | 44,152 | 45,477 | 46,841 | 48,247 | 49,694 | 51,185 | 52,720 | 54,302 | 55,931 | 57,609 | 59,337 | |||||||||||||||||||||||
| RE Tax | 46,986 | 48,396 | 49,847 | 51,343 | 52,883 | 54,469 | 56,104 | 57,787 | 59,520 | 61,306 | 63,145 | |||||||||||||||||||||||
| Total Reimbursement Revenue | 91,138 | 93,873 | 96,688 | 99,590 | 102,577 | 105,654 | 108,824 | 112,089 | 115,451 | 118,915 | 122,482 | |||||||||||||||||||||||
| Total Potential Gross Revenue | 302,938 | 305,673 | 310,138 | 317,990 | 320,977 | 325,629 | 333,524 | 336,789 | 341,876 | 350,515 | 354,082 | |||||||||||||||||||||||
| Effective Gross Revenue | 302,938 | 305,673 | 310,138 | 317,990 | 320,977 | 325,629 | 333,524 | 336,789 | 341,876 | 350,515 | 354,082 | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||
| CAM | 44,153 | 45,477 | 46,841 | 48,247 | 49,694 | 51,185 | 52,720 | 54,302 | 55,931 | 57,609 | 59,337 | |||||||||||||||||||||||
| RE Tax | 46,986 | 48,396 | 49,847 | 51,343 | 52,883 | 54,470 | 56,104 | 57,787 | 59,520 | 61,306 | 63,145 | |||||||||||||||||||||||
| Total Operating Expenses | 91,139 | 93,873 | 96,688 | 99,590 | 102,577 | 105,655 | 108,824 | 112,089 | 115,451 | 118,915 | 122,482 | |||||||||||||||||||||||
| Net Operating Income | 211,799 | 211,800 | 213,450 | 218,400 | 218,400 | 219,974 | 224,700 | 224,700 | 226,425 | 231,600 | 231,600 | |||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||
| Reserve | 5,046 | 5,197 | 5,353 | 5,514 | 5,679 | 5,850 | 6,025 | 6,206 | 6,392 | 6,584 | 6,781 | |||||||||||||||||||||||
| Total Leasing & Capital Costs | 5,046 | 5,197 | 5,353 | 5,514 | 5,679 | 5,850 | 6,025 | 6,206 | 6,392 | 6,584 | 6,781 | |||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 206,753 | $ | 206,603 | $ | 208,097 | $ | 212,886 | $ | 212,721 | $ | 214,124 | $ | 218,675 | $ | 218,494 | $ | 220,033 | $ | 225,016 | $ | 224,819 | ||||||||||||
| 218 |
| Conn's |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 8.50% | ||||||||||
| Year 1 | Dec-14 | $ | 206,753 | $ | 190,556 | |||||||||
| Year 2 | Dec-15 | 206,603 | 175,500 | |||||||||||
| Year 3 | Dec-16 | 208,097 | 162,921 | |||||||||||
| Year 4 | Dec-17 | 212,886 | 153,613 | |||||||||||
| Year 5 | Dec-18 | 212,721 | 141,469 | |||||||||||
| Year 6 | Dec-19 | 214,124 | 131,246 | |||||||||||
| Year 7 | Dec-20 | 218,675 | 123,535 | |||||||||||
| Year 8 | Dec-21 | 218,494 | 113,763 | |||||||||||
| Year 9 | Dec-22 | 220,033 | 105,589 | |||||||||||
| Year 10 | Dec-23 | 225,016 | 99,521 | |||||||||||
| Total Cash Flow | $ | 2,143,402 | $ | 1,397,714 | ||||||||||
| Property Resale @ 8.25% | 2,751,127 | 1,216,783 | ||||||||||||
| Total Property Present Value | $ | 2,614,498 | ||||||||||||
| Rounded | $ | 2,610,000 | ||||||||||||
| Per Square Foot | $ | 103.45 | ||||||||||||
| 219 |
| Comparable Sales | ||||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Ross Dress for Less | 4629 S Hulen St | Fort Worth | TX | 32,400 | $ | 4,900,000 | $ | 151.23 | 10/4/2012 | $ | 356,230 | 7.27 | % | |||||||||||||||||||
| Ashley Furniture Homestores | 1201 S Earl Rudder Fwy | College Station | TX | 35,000 | $ | 5,900,000 | $ | 168.57 | 6/20/2013 | $ | 501,500 | 8.50 | % | |||||||||||||||||||
| Tractor Supply | 2911 E Austin St | Giddings | TX | 19,000 | $ | 3,251,741 | $ | 171.14 | 12/21/2012 | $ | 225,996 | 6.95 | % | |||||||||||||||||||
| Big Lots | 4905 W Waco Dr | Waco | TX | 28,470 | $ | 2,600,000 | $ | 91.32 | 12/10/2012 | $ | 199,680 | 7.68 | % | |||||||||||||||||||
| The Container Store | 8460 Parkwood Blvd | Dallas | TX | 23,286 | $ | 7,950,000 | $ | 341.41 | 5/16/2013 | $ | 647,925 | 8.15 | % | |||||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||||
| Tractor Supply | 1530 S Main St | Boerne | TX | 19,097 | $ | 2,307,124 | $ | 120.81 | 1/5/2011 | $ | 194,952 | 8.45 | % | |||||||||||||||||||
| Min | $ | 91.32 | 6.95 | % | ||||||||||||||||||||||||||||
| Max | $ | 341.41 | 9.50 | % | ||||||||||||||||||||||||||||
| Average | $ | 164.88 | 8.25 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $95.00 to $150.00 per square foot | |||||||||||||||||||||||||||||||
| 220 |
PT1038 – Conn’s – Austin, TX
| 221 |
| BASIC INFORMATION | ||||||
| Property Name: | Conn's | Report Type: | Restricted Appraisal Report | |||
| Address: | 11101 Pecan Park Blvd. | Interest Appraised: | Leased Fee | |||
| City: | Austin | Value Premise: | Market Value | |||
| State: | TX | Date of Value- "As Is": | December 31, 2013 | |||
| County: | Williamson | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 78613 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to anoption for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 3.16 | Frontage: | Average | |||
| Gross Land Area (sf): | 137,650 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 480624 0610E | Location Rating: | Good | |||
| FEMA Map Date: | 9/26/2008 | Number of Parking Spaces: | 111 | |||
| Parking Ratio (per 1,000 SF): | 4.45 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2002 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 24,960 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 24,960 | Actual Age (years): | 12 | |||
| # of Buildings: | 1 | Tenant: | Conn's | |||
| # of Stories: | 1 | Land to Building Ratio: | 5.51 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 3498-000A-0001 | Zoning Municipality: | City of Austin | |||
| Taxing Authority/Jurisdiction: | Williamson County & Round Rock ISD | Current Zoning: | GR, Community Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,885,641 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $71,392 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $2.86 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. |
| LEASE SUMMARY | ||||||
| Tenant: | Conn's | Current Rent $/sf: | $15.02 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | October 1, 2014 | |||
| Lease Expiration: | September 30, 2017 | Rent at Bump Date $/sf: | $15.62 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxesand CapEx | Comment: | Conn's has subleased this property to Savers Thrift Store. The terms of the sublease have not been disclosed. | |||
| Occupancy: | 100% |
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $4,180,000 | |||
| Sales Comparison Approach: | $120.00 to $180.00 per square foot | Value PSF of NRA: | $167.47 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $4,180,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.75% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $14.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $15.02 | |||
| Expense Growth: | 3.00% |
| 222 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,992 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.75 | % | ||
| Basis Point Spread over OAR: | 0.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 4,180,000 | ||
| Value PSF of NRA: | $ | 167.47 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 14.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 223 |
| Conn's |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 378,571 | $ | 389,816 | $ | 389,816 | $ | 387,823 | $ | 393,298 | $ | 393,298 | $ | 393,298 | $ | 393,298 | $ | 393,298 | $ | 411,324 | $ | 412,963 | ||||||||||||
| Absorption & Turnover Vacancy | (95,461 | ) | (32,775 | ) | ||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 378,571 | 389,816 | 389,816 | 292,362 | 360,523 | 393,298 | 393,298 | 393,298 | 393,298 | 411,324 | 412,963 | |||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||
| CAM | 43,680 | 44,990 | 46,340 | 35,798 | 45,065 | 50,637 | 52,156 | 53,721 | 55,333 | 56,992 | 58,702 | |||||||||||||||||||||||
| RE Tax | 71,392 | 73,534 | 75,740 | 58,509 | 73,656 | 82,763 | 85,246 | 87,803 | 90,437 | 93,150 | 95,945 | |||||||||||||||||||||||
| Total Reimbursement Revenue | 115,072 | 118,524 | 122,080 | 94,307 | 118,721 | 133,400 | 137,402 | 141,524 | 145,770 | 150,142 | 154,647 | |||||||||||||||||||||||
| Total Potential Gross Revenue | 493,643 | 508,340 | 511,896 | 386,669 | 479,244 | 526,698 | 530,700 | 534,822 | 539,068 | 561,466 | 567,610 | |||||||||||||||||||||||
| Effective Gross Revenue | 493,643 | 508,340 | 511,896 | 386,669 | 479,244 | 526,698 | 530,700 | 534,822 | 539,068 | 561,466 | 567,610 | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||
| CAM | 43,680 | 44,990 | 46,340 | 47,730 | 49,162 | 50,637 | 52,156 | 53,721 | 55,333 | 56,992 | 58,702 | |||||||||||||||||||||||
| RE Tax | 71,392 | 73,534 | 75,740 | 78,012 | 80,352 | 82,763 | 85,246 | 87,803 | 90,437 | 93,150 | 95,945 | |||||||||||||||||||||||
| Total Operating Expenses | 115,072 | 118,524 | 122,080 | 125,742 | 129,514 | 133,400 | 137,402 | 141,524 | 145,770 | 150,142 | 154,647 | |||||||||||||||||||||||
| Net Operating Income | 378,571 | 389,816 | 389,816 | 260,927 | 349,730 | 393,298 | 393,298 | 393,298 | 393,298 | 411,324 | 412,963 | |||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||
| Tenant Improvements | 126,417 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 72,563 | |||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||
| Reserve | 4,992 | 5,142 | 5,296 | 5,455 | 5,619 | 5,787 | 5,961 | 6,140 | 6,324 | 6,513 | 6,709 | |||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,992 | 5,142 | 5,296 | 5,455 | 204,599 | 5,787 | 5,961 | 6,140 | 6,324 | 6,513 | 6,709 | |||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 373,579 | $ | 384,674 | $ | 384,520 | $ | 255,472 | $ | 145,131 | $ | 387,511 | $ | 387,337 | $ | 387,158 | $ | 386,974 | $ | 404,811 | $ | 406,254 | ||||||||||||
| 224 |
| Conn's |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.00% | ||||||||||
| Year 1 | Dec-14 | $ | 373,579 | $ | 342,733 | |||||||||
| Year 2 | Dec-15 | 384,674 | 323,772 | |||||||||||
| Year 3 | Dec-16 | 384,520 | 296,920 | |||||||||||
| Year 4 | Dec-17 | 255,472 | 180,983 | |||||||||||
| Year 5 | Dec-18 | 145,131 | 94,325 | |||||||||||
| Year 6 | Dec-19 | 387,511 | 231,060 | |||||||||||
| Year 7 | Dec-20 | 387,337 | 211,887 | |||||||||||
| Year 8 | Dec-21 | 387,158 | 194,302 | |||||||||||
| Year 9 | Dec-22 | 386,974 | 178,174 | |||||||||||
| Year 10 | Dec-23 | 404,811 | 170,997 | |||||||||||
| Total Cash Flow | $ | 3,497,167 | $ | 2,225,152 | ||||||||||
| Property Resale @ 8.75% | 4,625,186 | 1,953,728 | ||||||||||||
| Total Property Present Value | $ | 4,178,880 | ||||||||||||
| Rounded | $ | 4,180,000 | ||||||||||||
| Per Square Foot | $ | 167.47 | ||||||||||||
| 225 |
| Comparable Sales |
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Ashley Furniture Homestores | 1201 S Earl Rudder Fwy | College Station | TX | 35,000 | $ | 5,900,000 | $ | 168.57 | 6/20/2013 | $ | 501,500 | 8.50 | % | |||||||||||||||||||
| Tractor Supply | 2911 E Austin St | Giddings | TX | 19,000 | $ | 3,251,741 | $ | 171.14 | 12/21/2012 | $ | 225,996 | 6.95 | % | |||||||||||||||||||
| Big Lots | 4905 W Waco Dr | Waco | TX | 28,470 | $ | 2,600,000 | $ | 91.32 | 12/10/2012 | $ | 199,680 | 7.68 | % | |||||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||||
| Tractor Supply | 1530 S Main St | Boerne | TX | 19,097 | $ | 2,307,124 | $ | 120.81 | 1/5/2011 | $ | 194,952 | 8.45 | % | |||||||||||||||||||
| Min | $ | 91.32 | 6.95 | % | ||||||||||||||||||||||||||||
| Max | $ | 171.14 | 9.50 | % | ||||||||||||||||||||||||||||
| Average | $ | 137.73 | 8.43 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $120.00 to $180.00 per square foot | |||||||||||||||||||||||||||||||
| 226 |
PT1039 – Conn’s – Austin, TX
| 227 |
| BASIC INFORMATION | ||||||
| Property Name: | Conn’s | Report Type: | Restricted Appraisal Report | |||
| Address: | 2531 West Anderson Ln. | Interest Appraised: | Leased Fee | |||
| City: | Austin | Value Premise: | Market Value | |||
| State: | TX | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Travis | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 78757 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.91 | Frontage: | Good | |||
| Gross Land Area (sf): | 83,200 | Access: | Good | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 480624 0455H | Location Rating: | Good | |||
| FEMA Map Date: | 9/26/2008 | Number of Parking Spaces: | 58 | |||
| Parking Ratio (per 1,000 SF): | 2.32 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2002 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 24,960 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 24,960 | Actual Age (years): | 12 | |||
| # of Buildings: | 1 | Tenant: | Conn’s | |||
| # of Stories: | 1 | Land to Building Ratio: | 3.33 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 02-3904-0302-0000 | Zoning Municipality: | City of Austin | |||
| Taxing Authority/Jurisdiction: | Travis County | Current Zoning: | GRV, Community Commercial, with CS1-V | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $2,548,014 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $62,763 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $2.51 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |
| LEASE SUMMARY | ||||||
| Tenant: | Conn’s | Current Rent $/sf: | $15.47 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | July 1, 2014 | |||
| Lease Expiration: | June 30, 2017 | Rent at Bump Date $/sf: | $16.09 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes | Comment: | CCPT in talks with Ross Dress For Less to take over the | |||
| and CapEx | space with a new 10-year lease at $14.00/sf. These terms | |||||
| Occupancy: | 100% | are utilized in our second scenario with the new rent | ||||
| assumed to begin 7/1/2014. Conn’s will reimburse CCPT | ||||||
| for 70% of the leasing costs for Ross. |
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,980,000 | |||
| Sales Comparison Approach: | $120.00 to $170.00 per square foot | Value PSF of NRA: | $159.46 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,980,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.75% | |||||
| Discount Rate: | 9.50% | Market Rent $/sf: | $14.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $15.47 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,650,000 | |||
| Sales Comparison Approach: | $120.00 to $170.00 per square foot | Value PSF of NRA: | $146.23 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $3,650,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.75% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $14.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $15.47 | |||
| Expense Growth | 3.00% | |||||
| 228 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,992 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.50 | % | ||
| Terminal Capitalization Rate: | 8.75 | % | ||
| Basis Point Spread over OAR: | 1.00 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,980,000 | ||
| Value PSF of NRA: | $ | 159.46 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 14.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 229 |
| Conn’s |
| Schedule of Prospective Cash Flow - Scenario 1 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 393,774 | $ | 401,495 | $ | 401,495 | $ | 391,669 | $ | 381,843 | $ | 381,843 | $ | 381,843 | $ | 381,843 | $ | 385,025 | $ | 400,935 | $ | 400,935 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (127,281 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 393,774 | 401,495 | 401,495 | 264,388 | 381,843 | 381,843 | 381,843 | 381,843 | 385,025 | 400,935 | 400,935 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 43,680 | 44,990 | 46,340 | 31,820 | 49,162 | 50,637 | 52,156 | 53,721 | 55,333 | 56,992 | 58,702 | |||||||||||||||||||||||||||||||||
| RE Tax | 62,763 | 64,646 | 66,585 | 45,722 | 70,640 | 72,760 | 74,942 | 77,191 | 79,506 | 81,891 | 84,348 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 106,443 | 109,636 | 112,925 | 77,542 | 119,802 | 123,397 | 127,098 | 130,912 | 134,839 | 138,883 | 143,050 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 500,217 | 511,131 | 514,420 | 341,930 | 501,645 | 505,240 | 508,941 | 512,755 | 519,864 | 539,818 | 543,985 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 500,217 | 511,131 | 514,420 | 341,930 | 501,645 | 505,240 | 508,941 | 512,755 | 519,864 | 539,818 | 543,985 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 43,680 | 44,990 | 46,340 | 47,730 | 49,162 | 50,637 | 52,156 | 53,721 | 55,333 | 56,992 | 58,702 | |||||||||||||||||||||||||||||||||
| RE Tax | 62,763 | 64,646 | 66,585 | 68,583 | 70,640 | 72,760 | 74,942 | 77,191 | 79,506 | 81,891 | 84,348 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 106,443 | 109,636 | 112,925 | 116,313 | 119,802 | 123,397 | 127,098 | 130,912 | 134,839 | 138,883 | 143,050 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 393,774 | 401,495 | 401,495 | 225,617 | 381,843 | 381,843 | 381,843 | 381,843 | 385,025 | 400,935 | 400,935 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 122,735 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 70,450 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,992 | 5,142 | 5,296 | 5,455 | 5,619 | 5,787 | 5,961 | 6,140 | 6,324 | 6,513 | 6,709 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,992 | 5,142 | 5,296 | 198,640 | 5,619 | 5,787 | 5,961 | 6,140 | 6,324 | 6,513 | 6,709 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 388,782 | $ | 396,353 | $ | 396,199 | $ | 26,977 | $ | 376,224 | $ | 376,056 | $ | 375,882 | $ | 375,703 | $ | 378,701 | $ | 394,422 | $ | 394,226 | ||||||||||||||||||||||
| 230 |
| Conn’s |
| Discounted Cash Flow Analysis - Scenario 1 |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.50% | ||||||||||
| Year 1 | Dec-14 | $ | 388,782 | $ | 355,052 | |||||||||
| Year 2 | Dec-15 | 396,353 | 330,563 | |||||||||||
| Year 3 | Dec-16 | 396,199 | 301,766 | |||||||||||
| Year 4 | Dec-17 | 26,977 | 18,765 | |||||||||||
| Year 5 | Dec-18 | 376,224 | 238,988 | |||||||||||
| Year 6 | Dec-19 | 376,056 | 218,156 | |||||||||||
| Year 7 | Dec-20 | 375,882 | 199,137 | |||||||||||
| Year 8 | Dec-21 | 375,703 | 181,774 | |||||||||||
| Year 9 | Dec-22 | 378,701 | 167,328 | |||||||||||
| Year 10 | Dec-23 | 394,422 | 159,155 | |||||||||||
| Total Cash Flow | $ | 3,485,299 | $ | 2,170,685 | ||||||||||
| Property Resale @ 8.75% | 4,490,472 | 1,811,969 | ||||||||||||
| Total Property Present Value | $ | 3,982,654 | ||||||||||||
| Rounded | $ | 3,980,000 | ||||||||||||
| Per Square Foot | $ | 159.46 | ||||||||||||
| 231 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,992 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.75 | % | ||
| Basis Point Spread over OAR: | 1.00 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 3,650,000 | ||
| Value PSF of NRA: | $ | 146.23 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 14.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 15.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 232 |
| Conn’s |
| Schedule of Prospective Cash Flow - Scenario 2 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 393,774 | $ | 365,218 | $ | 361,920 | $ | 361,920 | $ | 361,920 | $ | 361,920 | $ | 384,800 | $ | 386,880 | $ | 386,880 | $ | 386,880 | $ | 386,880 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 393,774 | 365,218 | 361,920 | 361,920 | 361,920 | 361,920 | 384,800 | 386,880 | 386,880 | 386,880 | 386,880 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 43,680 | 44,990 | 46,340 | 47,730 | 49,162 | 50,637 | 52,156 | 53,721 | 55,333 | 56,992 | 58,702 | |||||||||||||||||||||||||||||||||
| RE Tax | 62,763 | 64,646 | 66,585 | 68,583 | 70,640 | 72,760 | 74,942 | 77,191 | 79,506 | 81,891 | 84,348 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 106,443 | 109,636 | 112,925 | 116,313 | 119,802 | 123,397 | 127,098 | 130,912 | 134,839 | 138,883 | 143,050 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 500,217 | 474,854 | 474,845 | 478,233 | 481,722 | 485,317 | 511,898 | 517,792 | 521,719 | 525,763 | 529,930 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 500,217 | 474,854 | 474,845 | 478,233 | 481,722 | 485,317 | 511,898 | 517,792 | 521,719 | 525,763 | 529,930 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 43,680 | 44,990 | 46,340 | 47,730 | 49,162 | 50,637 | 52,156 | 53,721 | 55,333 | 56,992 | 58,702 | |||||||||||||||||||||||||||||||||
| RE Tax | 62,763 | 64,646 | 66,585 | 68,583 | 70,640 | 72,760 | 74,942 | 77,191 | 79,506 | 81,891 | 84,348 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 106,443 | 109,636 | 112,925 | 116,313 | 119,802 | 123,397 | 127,098 | 130,912 | 134,839 | 138,883 | 143,050 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 393,774 | 365,218 | 361,920 | 361,920 | 361,920 | 361,920 | 384,800 | 386,880 | 386,880 | 386,880 | 386,880 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 490,000 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 157,248 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,992 | 5,142 | 5,296 | 5,455 | 5,619 | 5,787 | 5,961 | 6,140 | 6,324 | 6,513 | 6,709 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,992 | 652,390 | 5,296 | 5,455 | 5,619 | 5,787 | 5,961 | 6,140 | 6,324 | 6,513 | 6,709 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 388,782 | ($ | 287,172 | ) | $ | 356,624 | $ | 356,465 | $ | 356,301 | $ | 356,133 | $ | 378,839 | $ | 380,740 | $ | 380,556 | $ | 380,367 | $ | 380,171 | |||||||||||||||||||||
| 233 |
| Conn’s |
| Discounted Cash Flow Analysis - Scenario 2 |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.00% | ||||||||||
| Year 1 | Dec-14 | $ | 388,782 | $ | 356,681 | |||||||||
| Year 2 | Dec-15 | (287,172 | ) | (241,707 | ) | |||||||||
| Year 3 | Dec-16 | 356,624 | 275,379 | |||||||||||
| Year 4 | Dec-17 | 356,465 | 252,529 | |||||||||||
| Year 5 | Dec-18 | 356,301 | 231,571 | |||||||||||
| Year 6 | Dec-19 | 356,133 | 212,350 | |||||||||||
| Year 7 | Dec-20 | 378,839 | 207,238 | |||||||||||
| Year 8 | Dec-21 | 380,740 | 191,081 | |||||||||||
| Year 9 | Dec-22 | 380,556 | 175,219 | |||||||||||
| Year 10 | Dec-23 | 380,367 | 160,671 | |||||||||||
| Total Cash Flow | $ | 3,047,635 | $ | 1,821,012 | ||||||||||
| Property Resale @ 8.75% | 4,333,056 | 1,830,330 | ||||||||||||
| Total Property Present Value | $ | 3,651,341 | ||||||||||||
| Rounded | $ | 3,650,000 | ||||||||||||
| Per Square Foot | $ | 146.23 | ||||||||||||
| 234 |
| Comparable Sales |
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Ashley Furniture Homestores | 1201 S Earl Rudder Fwy | College Station | TX | 35,000 | $ | 5,900,000 | $ | 168.57 | 6/20/2013 | $ | 501,500 | 8.50 | % | |||||||||||||||||||
| Tractor Supply | 2911 E Austin St | Giddings | TX | 19,000 | $ | 3,251,741 | $ | 171.14 | 12/21/2012 | $ | 225,996 | 6.95 | % | |||||||||||||||||||
| Big Lots | 4905 W Waco Dr | Waco | TX | 28,470 | $ | 2,600,000 | $ | 91.32 | 12/10/2012 | $ | 199,680 | 7.68 | % | |||||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||||
| Gander Mountain | 2301 Earl Rudder Fwy S | College Station | TX | 67,753 | $ | 9,300,000 | $ | 137.26 | 2/2/2012 | $ | 883,500 | 9.50 | % | |||||||||||||||||||
| Tractor Supply | 1530 S Main St | Boerne | TX | 19,097 | $ | 2,307,124 | $ | 120.81 | 1/5/2011 | $ | 194,952 | 8.45 | % | |||||||||||||||||||
| Min | $ | 91.32 | 6.95 | % | ||||||||||||||||||||||||||||
| Max | $ | 171.14 | 9.50 | % | ||||||||||||||||||||||||||||
| Average | $ | 137.73 | 8.43 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $120.00 to $170.00 per square foot | |||||||||||||||||||||||||||||||
| 235 |
PT1040 – Vanguard Car Rental – College Park, GA
| 236 |
| BASIC INFORMATION | ||||||
| Property Name: | Vanguard Car Rental | Report Type: | Restricted Appraisal Report | |||
| Address: | 3600 Naturally Fresh Blvd. | Interest Appraised: | Leased Fee | |||
| City: | College Park | Value Premise: | Market Value | |||
| State: | GA | Date of Value- “As Is”: | December 31, 2013 | |||
| County: | Fulton | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 30349 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the “As Is” Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 35.00 | Frontage: | Average | |||
| Gross Land Area (sf): | 1,524,600 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 135160 0457F | Location Rating: | Average | |||
| FEMA Map Date: | 9/18/2013 | Number of Parking Spaces: | 398 | |||
| Parking Ratio (per 1,000 SF): | 17.04 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Off Airport Rental Car Storage | Year Built: | 2002 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 23,360 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 23,360 | Actual Age (years): | 12 | |||
| # of Buildings: | 3 | Tenant: | Vanguard Car Rental | |||
| # of Stories: | 1 | Land to Building Ratio: | 65.27 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 13 -0065- LL-047-7 | Zoning Municipality: | Fulton County | |||
| Taxing Authority/Jurisdiction: | Fulton County | Current Zoning: | M-1, Light Industrial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,325,400 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $55,139 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $2.36 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for industrial development. | The highest and best use of the subject property as improved is continued use as is. | |
| LEASE SUMMARY | ||||||
| Tenant: | Vanguard Car Rental | Current Rent $/sf: | $55.88 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | None | |||
| Lease Expiration: | December 31, 2022 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes and Cap Ex | Comment: | None | |||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $12,870,000 | |||
| Sales Comparison Approach: | Not Applicable | Value PSF of NRA: | $550.94 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $12,870,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $25.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $55.88 | |||
| Expense Growth: | 3.00% | |||||
| 237 |
| DISCOUNTED CASH FLOW ASSUMPTIONS | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,672 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 12,870,000 | ||
| Value PSF of NRA: | $ | 550.94 | ||
| Market Leasing Assumptions | ||||
| Car Rental | ||||
| Market Rent $/sf: | $ | 25.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 5.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 238 |
| Vanguard Car Rental |
| Schedule of Prospective Cash Flow |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 1,305,452 | $ | 1,305,452 | $ | 1,305,452 | $ | 1,305,452 | $ | 1,739,806 | $ | 1,739,806 | $ | 1,739,806 | $ | 1,739,806 | $ | 1,739,806 | $ | 761,988 | $ | 761,988 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (253,996 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 1,305,452 | 1,305,452 | 1,305,452 | 1,305,452 | 1,739,806 | 1,739,806 | 1,739,806 | 1,739,806 | 1,739,806 | 507,992 | 761,988 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 40,880 | 42,106 | 43,370 | 44,671 | 46,011 | 47,391 | 48,813 | 50,277 | 51,786 | 35,559 | 54,939 | |||||||||||||||||||||||||||||||||
| RE Tax | 56,793 | 58,497 | 60,252 | 62,059 | 63,921 | 65,839 | 67,814 | 69,848 | 71,944 | 49,401 | 76,325 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 97,673 | 100,603 | 103,622 | 106,730 | 109,932 | 113,230 | 116,627 | 120,125 | 123,730 | 84,960 | 131,264 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 1,403,125 | 1,406,055 | 1,409,074 | 1,412,182 | 1,849,738 | 1,853,036 | 1,856,433 | 1,859,931 | 1,863,536 | 592,952 | 893,252 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 1,403,125 | 1,406,055 | 1,409,074 | 1,412,182 | 1,849,738 | 1,853,036 | 1,856,433 | 1,859,931 | 1,863,536 | 592,952 | 893,252 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 40,880 | 42,106 | 43,370 | 44,671 | 46,011 | 47,391 | 48,813 | 50,277 | 51,786 | 53,339 | 54,939 | |||||||||||||||||||||||||||||||||
| RE Tax | 56,793 | 58,497 | 60,252 | 62,059 | 63,921 | 65,839 | 67,814 | 69,848 | 71,944 | 74,102 | 76,325 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 97,673 | 100,603 | 103,622 | 106,730 | 109,932 | 113,230 | 116,627 | 120,125 | 123,730 | 127,441 | 131,264 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 1,305,452 | 1,305,452 | 1,305,452 | 1,305,452 | 1,739,806 | 1,739,806 | 1,739,806 | 1,739,806 | 1,739,806 | 465,511 | 761,988 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 198,117 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 140,587 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||||||||||||
| Reserve | 4,672 | 4,812 | 4,957 | 5,105 | 5,258 | 5,416 | 5,579 | 5,746 | 5,918 | 6,096 | 6,279 | |||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,672 | 4,812 | 4,957 | 5,105 | 5,258 | 5,416 | 5,579 | 5,746 | 5,918 | 344,800 | 6,279 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 1,300,780 | $ | 1,300,640 | $ | 1,300,495 | $ | 1,300,347 | $ | 1,734,548 | $ | 1,734,390 | $ | 1,734,227 | $ | 1,734,060 | $ | 1,733,888 | $ | 120,711 | $ | 755,709 | ||||||||||||||||||||||
| 239 |
| Vanguard Car Rental |
| Discounted Cash Flow Analysis |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.00% | ||||||||||
| Year 1 | Dec-14 | $ | 1,300,780 | $ | 1,193,376 | |||||||||
| Year 2 | Dec-15 | 1,300,640 | 1,094,723 | |||||||||||
| Year 3 | Dec-16 | 1,300,495 | 1,004,221 | |||||||||||
| Year 4 | Dec-17 | 1,300,347 | 921,199 | |||||||||||
| Year 5 | Dec-18 | 1,734,548 | 1,127,337 | |||||||||||
| Year 6 | Dec-19 | 1,734,390 | 1,034,160 | |||||||||||
| Year 7 | Dec-20 | 1,734,227 | 948,682 | |||||||||||
| Year 8 | Dec-21 | 1,734,060 | 870,266 | |||||||||||
| Year 9 | Dec-22 | 1,733,888 | 798,330 | |||||||||||
| Year 10 | Dec-23 | 120,711 | 50,990 | |||||||||||
| Total Cash Flow | $ | 13,994,086 | $ | 9,043,283 | ||||||||||
| Property Resale @ 8.25% | 9,051,494 | 3,823,449 | ||||||||||||
| Total Property Present Value | $ | 12,866,732 | ||||||||||||
| Rounded | $ | 12,870,000 | ||||||||||||
| Per Square Foot | $ | 550.94 | ||||||||||||
| 240 |
LAND VALUATION - COMPARABLE LAND SALE ADJUSTMENT GRID
Vanguard Car Rental
3600 Naturally Fresh Blvd.
| Subject | Sale No. 1 | Adj. | Sale No. 2 | Adj. | Sale No. 3 | Adj. | Listing No. 1 | Adj. | ||||||||||
| Location | 3600 Naturally Fresh Blvd. | Anvil Block Rd @ I-675 | Buffington Rd @ Carriage | Lee Mills Road | Buffington Drive | |||||||||||||
| City, State | College Park, GA | Ellenwood, GA | Union City, GA | College Park, GA | Atlanta, GA | |||||||||||||
| Sale price | $1,950,000 | $1,342,000 | $2,639,000 | $850,000 | ||||||||||||||
| Size (Square Feet) | 1,524,600 | 1,927,530 | 1,411,344 | 1,529,827 | 435,600 | |||||||||||||
| Sales price per Square Foot | $1.01 | $0.95 | $1.73 | $1.95 | ||||||||||||||
| Terms of sale characteristics | ||||||||||||||||||
| Property rights conveyed | Fee Simple | Fee Simple | = | Fee Simple | = | Fee Simple | = | Fee Simple | = | |||||||||
| Financing terms | Market | Market | = | Market | = | Market | = | Market | = | |||||||||
| Conditions of sale | Normal | Normal | = | Normal | = | Normal | = | Normal | = | |||||||||
| Market Conditions | Dec-2013 | Nov-2013 | = | Nov-2013 | = | Mar-2013 | + | Listing | - | |||||||||
| Location/Physical Adjustments | ||||||||||||||||||
| Location | Good | Inferior | + | Inferior | + | Superior | - | Similar | = | |||||||||
| Access/Frontage | Good/Good | Similar/Similar | = | Similar/Similar | = | Inferior/Inferior | + | Similar/Similar | = | |||||||||
| Size (Square Feet) | 1,524,600 | 1,927,530 | + | 1,411,344 | = | 1,529,827 | = | 435,600 | - | |||||||||
| Shape/Topography | Irregular/Level | Irregular/Level | = | Irregular/Level | + | Irregular/Level | = | Irregular/Level | = | |||||||||
| Zoning/Intended Use | M-1, Light Industrial | HI | = | M1 | = | HI | = | Industrial | = | |||||||||
| Adjusted sale price | $1.42 | $1.43 | $1.72 | $1.76 | ||||||||||||||
| Minimum Adjusted Sale Price: | $1.42 | |||||||||||||||||
| Maximum Adjusted Sale Price: | $1.76 | |||||||||||||||||
| Mean Adjusted Sale Price: | $1.58 | |||||||||||||||||
| Median Adjusted Sale Price: | $1.57 | |||||||||||||||||
| Concluded Land Value per Square Foot : | $1.75 | |||||||||||||||||
| Indicated value | $2,668,050 | |||||||||||||||||
| Interest Acquired | 100.00% | |||||||||||||||||
| Concluded Value | $2,668,050 | |||||||||||||||||
| Concluded Value (Rounded) | $2,670,000 |
| 241 |
| 242 |
PT1041 – Rite Aid – Buxton, ME
| 243 |
| BASIC INFORMATION | ||||||
| Property Name: | Rite Aid | Report Type: | Restricted Appraisal Report | |||
| Address: | 226 Parker Farm Rd. | Interest Appraised: | Leased Fee | |||
| City: | Buxton | Value Premise: | Market Value | |||
| State: | ME | Date of Value - "As Is": | December 31, 2013 | |||
| County: | York | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 04093 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 1.84 | Frontage: | Good | |||
| Gross Land Area (sf): | 80,150 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | C | Shape: | Regular | |||
| FEMA Community Map #: | 230146 0010B | Location Rating: | Average | |||
| FEMA Map Date: | 7/5/1982 | Number of Parking Spaces: | 55 | |||
| Parking Ratio (per 1,000 SF): | 4.92 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 1997 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 11,180 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 11,180 | Actual Age (years): | 17 | |||
| # of Buildings: | 1 | Tenant: | Rite Aid | |||
| # of Stories: | 1 | Land to Building Ratio: | 7.17 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 0001-0201 | Zoning Municipality: | Town of Buxton | |||
| Taxing Authority/Jurisdiction: | Town of Buxton | Current Zoning: | V, Village | |||
| Current Tax Year | 2014 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $1,195,200 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $14,940 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $1.34 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Rite Aid | Current Rent $/sf: | $18.26 | |||
| Tenant S&P Rating: | B- | Rent Bump Date: | None | |||
| Lease Expiration: | June 30, 2018 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | Currently negotiating lease extension to 6/30/2028 at | |||
| Landlord pays CapEx | $15,311/mo. ($16.43/sf) to 6/30/2018, $16,459/mo. | |||||
| Occupancy: | 100% | ($17.67/sf) to 6/30/2023, and $17,694/mo. ($18.99/sf) to 6/30/2028. These terms are utilized in our second scenario with the new rent assumed to begin 7/1/2014. | ||||
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,270,000 | |||
| Sales Comparison Approach: | $180.00 to $230.00 per square foot | Value PSF of NRA: | $203.04 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,270,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 9.00% | Market Rent $/sf: | $16.50 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $18.26 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,290,000 | |||
| Sales Comparison Approach: | $180.00 to $230.00 per square foot | Value PSF of NRA: | $204.83 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,290,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 8.25% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $16.50 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $18.26 | |||
| Expense Growth | 3.00% | |||||
| 244 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,236 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 9.00 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,270,000 | ||
| Value PSF of NRA: | $ | 203.04 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 16.50 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 10.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 245 |
| Rite Aid |
| Schedule of Prospective Cash Flow - Scenario 1 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 204,147 | $ | 204,147 | $ | 204,147 | $ | 204,147 | $ | 205,885 | $ | 207,623 | $ | 207,623 | $ | 207,623 | $ | 207,623 | $ | 211,083 | $ | 218,004 | ||||||||||||||||||||||
| Absorption & Turnover Vacancy | (34,604 | ) | ||||||||||||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 204,147 | 204,147 | 204,147 | 204,147 | 171,281 | 207,623 | 207,623 | 207,623 | 207,623 | 211,083 | 218,004 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 18,350 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 15,388 | 15,850 | 16,325 | 16,815 | 14,433 | 17,839 | 18,374 | 18,925 | 19,493 | 20,078 | 20,680 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 34,953 | 36,002 | 37,082 | 38,194 | 32,783 | 40,520 | 41,736 | 42,987 | 44,277 | 45,606 | 46,974 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 239,100 | 240,149 | 241,229 | 242,341 | 204,064 | 248,143 | 249,359 | 250,610 | 251,900 | 256,689 | 264,978 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 239,100 | 240,149 | 241,229 | 242,341 | 204,064 | 248,143 | 249,359 | 250,610 | 251,900 | 256,689 | 264,978 | |||||||||||||||||||||||||||||||||
| Operating Expenses | �� | |||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 22,021 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 15,388 | 15,850 | 16,325 | 16,815 | 17,319 | 17,839 | 18,374 | 18,925 | 19,493 | 20,078 | 20,680 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 34,953 | 36,002 | 37,082 | 38,194 | 39,340 | 40,520 | 41,736 | 42,987 | 44,277 | 45,606 | 46,974 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 204,147 | 204,147 | 204,147 | 204,147 | 164,724 | 207,623 | 207,623 | 207,623 | 207,623 | 211,083 | 218,004 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Tenant Improvements | 31,458 | |||||||||||||||||||||||||||||||||||||||||||
| Leasing Commissions | 31,922 | |||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 77,500 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,236 | 2,372 | 2,443 | 2,517 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,236 | 77,500 | 2,372 | 2,443 | 65,897 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 201,911 | $ | 126,647 | $ | 201,775 | $ | 201,704 | $ | 98,827 | $ | 205,031 | $ | 204,953 | $ | 204,873 | $ | 204,791 | $ | 208,166 | $ | 214,999 | ||||||||||||||||||||||
| 246 |
Rite Aid
Discounted Cash Flow Analysis - Scenario 1
As of December 31, 2013
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 9.00% | ||||||||||
| Year 1 | Dec-14 | $ | 201,911 | $ | 185,239 | |||||||||
| Year 2 | Dec-15 | 126,647 | 106,596 | |||||||||||
| Year 3 | Dec-16 | 201,775 | 155,807 | |||||||||||
| Year 4 | Dec-17 | 201,704 | 142,892 | |||||||||||
| Year 5 | Dec-18 | 98,827 | 64,231 | |||||||||||
| Year 6 | Dec-19 | 205,031 | 122,253 | |||||||||||
| Year 7 | Dec-20 | 204,953 | 112,116 | |||||||||||
| Year 8 | Dec-21 | 204,873 | 102,819 | |||||||||||
| Year 9 | Dec-22 | 204,791 | 94,291 | |||||||||||
| Year 10 | Dec-23 | 208,166 | 87,932 | |||||||||||
| Total Cash Flow | $ | 1,858,678 | $ | 1,174,177 | ||||||||||
| Property Resale @ 8.25% | 2,589,623 | 1,093,885 | ||||||||||||
| Total Property Present Value | $ | 2,268,062 | ||||||||||||
| Rounded | $ | 2,270,000 | ||||||||||||
| Per Square Foot | $ | 203.04 | ||||||||||||
| 247 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 2,236 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 8.25 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,290,000 | ||
| Value PSF of NRA: | $ | 204.83 | ||
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 16.50 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 10.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 75.0 | % | ||
| Downtime (months): | 9 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 | ||
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 248 |
Rite Aid
Schedule of Prospective Cash Flow - Scenario 2
In Inflated Dollars for the Fiscal Year Begining December 31, 2013
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 193,939 | $ | 183,732 | $ | 183,732 | $ | 183,732 | $ | 190,620 | $ | 197,508 | $ | 197,508 | $ | 197,508 | $ | 197,508 | $ | 204,918 | $ | 212,328 | ||||||||||||||||||||||
| Scheduled Base Rental Revenue | 193,939 | 183,732 | 183,732 | 183,732 | 190,620 | 197,508 | 197,508 | 197,508 | 197,508 | 204,918 | 212,328 | |||||||||||||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 22,021 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 15,388 | 15,850 | 16,325 | 16,815 | 17,319 | 17,839 | 18,374 | 18,925 | 19,493 | 20,078 | 20,680 | |||||||||||||||||||||||||||||||||
| Total Reimbursement Revenue | 34,953 | 36,002 | 37,082 | 38,194 | 39,340 | 40,520 | 41,736 | 42,987 | 44,277 | 45,606 | 46,974 | |||||||||||||||||||||||||||||||||
| Total Potential Gross Revenue | 228,892 | 219,734 | 220,814 | 221,926 | 229,960 | 238,028 | 239,244 | 240,495 | 241,785 | 250,524 | 259,302 | |||||||||||||||||||||||||||||||||
| Effective Gross Revenue | 228,892 | 219,734 | 220,814 | 221,926 | 229,960 | 238,028 | 239,244 | 240,495 | 241,785 | 250,524 | 259,302 | |||||||||||||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||
| CAM | 19,565 | 20,152 | 20,757 | 21,379 | 22,021 | 22,681 | 23,362 | 24,062 | 24,784 | 25,528 | 26,294 | |||||||||||||||||||||||||||||||||
| RE Tax | 15,388 | 15,850 | 16,325 | 16,815 | 17,319 | 17,839 | 18,374 | 18,925 | 19,493 | 20,078 | 20,680 | |||||||||||||||||||||||||||||||||
| Total Operating Expenses | 34,953 | 36,002 | 37,082 | 38,194 | 39,340 | 40,520 | 41,736 | 42,987 | 44,277 | 45,606 | 46,974 | |||||||||||||||||||||||||||||||||
| Net Operating Income | 193,939 | 183,732 | 183,732 | 183,732 | 190,620 | 197,508 | 197,508 | 197,508 | 197,508 | 204,918 | 212,328 | |||||||||||||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||||||||||||
| Cap Expenditures | 77,500 | |||||||||||||||||||||||||||||||||||||||||||
| Reserve | 2,236 | 2,372 | 2,443 | 2,517 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | ||||||||||||||||||||||||||||||||||
| Total Leasing & Capital Costs | 2,236 | 77,500 | 2,372 | 2,443 | 2,517 | 2,592 | 2,670 | 2,750 | 2,832 | 2,917 | 3,005 | |||||||||||||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 191,703 | $ | 106,232 | $ | 181,360 | $ | 181,289 | $ | 188,103 | $ | 194,916 | $ | 194,838 | $ | 194,758 | $ | 194,676 | $ | 202,001 | $ | 209,323 | ||||||||||||||||||||||
| 249 |
Rite Aid
Discounted Cash Flow Analysis - Scenario 2
As of December 31, 2013
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 8.50% | ||||||||||
| Year 1 | Dec-14 | $ | 191,703 | $ | 176,685 | |||||||||
| Year 2 | Dec-15 | 106,232 | 90,239 | |||||||||||
| Year 3 | Dec-16 | 181,360 | 141,988 | |||||||||||
| Year 4 | Dec-17 | 181,289 | 130,813 | |||||||||||
| Year 5 | Dec-18 | 188,103 | 125,097 | |||||||||||
| Year 6 | Dec-19 | 194,916 | 119,473 | |||||||||||
| Year 7 | Dec-20 | 194,838 | 110,069 | |||||||||||
| Year 8 | Dec-21 | 194,758 | 101,405 | |||||||||||
| Year 9 | Dec-22 | 194,676 | 93,421 | |||||||||||
| Year 10 | Dec-23 | 202,001 | 89,342 | |||||||||||
| Total Cash Flow | $ | 1,829,876 | $ | 1,178,532 | ||||||||||
| Property Resale @ 8.25% | 2,522,199 | 1,115,532 | ||||||||||||
| Total Property Present Value | $ | 2,294,064 | ||||||||||||
| Rounded | $ | 2,290,000 | ||||||||||||
| Per Square Foot | $ | 204.83 | ||||||||||||
| 250 |
| Comparable Sales | ||||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Rite Aid | 1080 S West End Blvd | Quakertown | PA | 14,564 | $ | 6,375,000 | $ | 437.72 | 7/10/2013 | $ | 494,063 | 7.75 | % | |||||||||||||||||||
| Rite Aid | 317 Main St | Farmington | ME | 14,673 | $ | 5,050,000 | $ | 344.17 | 6/12/2013 | $ | 424,200 | 8.40 | % | |||||||||||||||||||
| Rite Aid | 331 Main St | Nashua | NH | 15,086 | $ | 3,262,533 | $ | 216.26 | 2/4/2013 | $ | 277,315 | 8.50 | % | |||||||||||||||||||
| The Rite Aid Plaza | 1 S River Rd | Bedford | NH | 23,540 | $ | 3,850,000 | $ | 163.55 | 9/10/2012 | $ | 327,250 | 8.50 | % | |||||||||||||||||||
| Wawa/Rite Aid | 664-668 Haddon Ave | Collingswood | NJ | 9,800 | $ | 2,490,000 | $ | 254.08 | 2/28/2012 | $ | 196,212 | 7.88 | % | |||||||||||||||||||
| Rite-Aid | 21 Columbia St | Adams | MA | 10,504 | $ | 1,600,000 | $ | 152.32 | 8/2/2011 | $ | 144,000 | 9.00 | % | |||||||||||||||||||
| Rite Aid | 1900 Ocean St | Marshfield | MA | 13,876 | $ | 2,754,000 | $ | 198.47 | 2/14/2011 | $ | 235,467 | 8.55 | % | |||||||||||||||||||
| Rite Aid | 1329 Hyde Park Ave | Hyde Park | MA | 13,556 | $ | 3,025,000 | $ | 223.15 | 2/10/2011 | $ | 272,250 | 9.00 | % | |||||||||||||||||||
| Min | $ | 152.32 | 7.75 | % | ||||||||||||||||||||||||||||
| Max | $ | 437.72 | 9.00 | % | ||||||||||||||||||||||||||||
| Average | $ | 248.72 | 8.45 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $180.00 to $230.00 per square foot | |||||||||||||||||||||||||||||||
| 251 |
PT1043 – Tractor Supply – Topeka, KS
| 252 |
| BASIC INFORMATION | ||||||
| Property Name: | Tractor Supply | Report Type: | Restricted Appraisal Report | |||
| Address: | 5235 SW Topeka Blvd | Interest Appraised: | Leased Fee | |||
| City: | Topeka | Value Premise: | Market Value | |||
| State: | KS | Date of Value- "As Is": | December 31, 2013 | |||
| County: | Shawnee | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 66609 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 4.55 | Frontage: | Average | |||
| Gross Land Area (sf): | 198,198 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 205187 0306E | Location Rating: | Average | |||
| FEMA Map Date: | 9/29/2011 | Number of Parking Spaces: | 76 | |||
| Parking Ratio (per 1,000 SF): | 3.07 | |||||
| Parking Type: | Paved open surface parking |
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2006 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 24,727 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 24,727 | Actual Age (years): | 8 | |||
| # of Buildings: | 1 | Tenant: | Tractor Supply | |||
| # of Stories: | 1 | Land to Building Ratio: | 8.02 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 1393003006029010 | Zoning Municipality: | City of Topeka | |||
| Taxing Authority/Jurisdiction: | Shawnee County | Current Zoning: | I1-Light Industrial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $540,851 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $87,976 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $3.56 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||
| As Vacant: | As Improved: | |
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. |
| LEASE SUMMARY | ||||||
| Tenant: | Tractor Supply | Current Rent $/sf: | $9.16 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | May 3, 2016 | |||
| Lease Expiration: | May 2, 2021 | Rent at Bump Date $/sf: | $10.07 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes | Comment: | Currently negotiating lease extension to 12/31/2028 at | |||
| and CapEx | $18,866/mo. ($9.16/sf). These terms are utilized in our | |||||
| Occupancy: | 100% | second scenario with the new rent assumed to begin | ||||
| 7/1/2014. |
| VALUATION SUMMARY - SCENARIO 1 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,490,000 | |||
| Sales Comparison Approach: | $75.00 to $150.00 per square foot | Value PSF of NRA: | $100.70 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,490,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.75% | |||||
| Discount Rate: | 8.50% | Market Rent $/sf: | $9.00 | |||
| Market Rent Growth: | 3.00% | Contract Rent $/sf: | $9.16 | |||
| Expense Growth: | 3.00% | |||||
| VALUATION SUMMARY - SCENARIO 2 | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $2,640,000 | |||
| Sales Comparison Approach: | $75.00 to $150.00 per square foot | Value PSF of NRA: | $106.77 | |||
| Income Capitalization Approach: | ||||||
| Discounted Cash Flow: | $2,640,000 | Exposure Time: | 6-9 months | |||
| Terminal Capitalization Rate: | 7.50% | |||||
| Discount Rate: | 7.75% | Market Rent $/sf: | $9.00 | |||
| Market Rent Growth | 3.00% | Contract Rent $/sf: | $9.16 | |||
| Expense Growth | 3.00% | |||||
| 253 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 1 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,945 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 8.50 | % | ||
| Terminal Capitalization Rate: | 7.75 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,490,000 | ||
| Value PSF of NRA: | $ | 100.70 |
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 9.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New $/sf: | $ | 15.00 | ||
| Tenant Improvements-Renewal $/sf: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 |
1Included in discount rate
2Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 254 |
| Tractor Supply |
| Schedule of Prospective Cash Flow - Scenario 1 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 226,392 | $ | 226,392 | $ | 241,488 | $ | 249,036 | $ | 249,036 | $ | 249,036 | $ | 249,036 | $ | 243,054 | $ | 240,062 | $ | 240,062 | $ | 240,062 | ||||||||||||
| Absorption & Turnover Vacancy | (80,021 | ) | ||||||||||||||||||||||||||||||||
| Scheduled Base Rental Revenue | 226,392 | 226,392 | 241,488 | 249,036 | 249,036 | 249,036 | 249,036 | 163,033 | 240,062 | 240,062 | 240,062 | |||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||
| CAM | 37,954 | 39,093 | 40,265 | 41,473 | 42,718 | 43,999 | 45,319 | 31,119 | 48,079 | 49,521 | 51,007 | |||||||||||||||||||||||
| RE Tax | 78,321 | 80,671 | 83,091 | 85,584 | 88,151 | 90,796 | 93,520 | 64,217 | 99,215 | 102,192 | 105,257 | |||||||||||||||||||||||
| Total Reimbursement Revenue | 116,275 | 119,764 | 123,356 | 127,057 | 130,869 | 134,795 | 138,839 | 95,336 | 147,294 | 151,713 | 156,264 | |||||||||||||||||||||||
| Total Potential Gross Revenue | 342,667 | 346,156 | 364,844 | 376,093 | 379,905 | 383,831 | 387,875 | 258,369 | 387,356 | 391,775 | 396,326 | |||||||||||||||||||||||
| Effective Gross Revenue | 342,667 | 346,156 | 364,844 | 376,093 | 379,905 | 383,831 | 387,875 | 258,369 | 387,356 | 391,775 | 396,326 | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||
| CAM | 43,272 | 44,570 | 45,908 | 47,285 | 48,703 | 50,164 | 51,669 | 53,219 | 54,816 | 56,460 | 58,154 | |||||||||||||||||||||||
| RE Tax | 89,296 | 91,975 | 94,734 | 97,576 | 100,503 | 103,519 | 106,624 | 109,823 | 113,118 | 116,511 | 120,006 | |||||||||||||||||||||||
| Total Operating Expenses | 132,568 | 136,545 | 140,642 | 144,861 | 149,206 | 153,683 | 158,293 | 163,042 | 167,934 | 172,971 | 178,160 | |||||||||||||||||||||||
| Net Operating Income | 210,099 | 209,611 | 224,202 | 231,232 | 230,699 | 230,148 | 229,582 | 95,327 | 219,422 | 218,804 | 218,166 | |||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||
| Tenant Improvements | 120,031 | |||||||||||||||||||||||||||||||||
| Leasing Commissions | 44,291 | |||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||
| Reserve | 4,945 | 5,094 | 5,247 | 5,404 | 5,566 | 5,733 | 5,905 | 6,082 | 6,265 | 6,453 | 6,646 | |||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,945 | 5,094 | 5,247 | 5,404 | 5,566 | 5,733 | 5,905 | 170,404 | 6,265 | 6,453 | 6,646 | |||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 205,154 | $ | 204,517 | $ | 218,955 | $ | 225,828 | $ | 225,133 | $ | 224,415 | $ | 223,677 | $ | (75,077 | ) | $ | 213,157 | $ | 212,351 | $ | 211,520 | |||||||||||
| 255 |
| Tractor Supply |
| Discounted Cash Flow Analysis - Scenario 1 |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 8.50% | ||||||||||
| Year 1 | Dec-14 | $ | 205,154 | $ | 189,082 | |||||||||
| Year 2 | Dec-15 | 204,517 | 173,728 | |||||||||||
| Year 3 | Dec-16 | 218,955 | 171,422 | |||||||||||
| Year 4 | Dec-17 | 225,828 | 162,952 | |||||||||||
| Year 5 | Dec-18 | 225,133 | 149,724 | |||||||||||
| Year 6 | Dec-19 | 224,415 | 137,554 | |||||||||||
| Year 7 | Dec-20 | 223,677 | 126,361 | |||||||||||
| Year 8 | Dec-21 | (75,077 | ) | (39,090 | ) | |||||||||
| Year 9 | Dec-22 | 213,157 | 102,290 | |||||||||||
| Year 10 | Dec-23 | 212,351 | 93,920 | |||||||||||
| Total Cash Flow | $ | 1,878,110 | $ | 1,267,941 | ||||||||||
| Property Resale @ 7.75% | 2,758,744 | 1,220,152 | ||||||||||||
| Total Property Present Value | $ | 2,488,094 | ||||||||||||
| Rounded | $ | 2,490,000 | ||||||||||||
| Per Square Foot | $ | 100.70 | ||||||||||||
| 256 |
| DISCOUNTED CASH FLOW ASSUMPTIONS - SCENARIO 2 | ||||
| General Cash Flow Assumptions | ||||
| Cash Flow Software: | Argus Valuation - DCF 15.0.1.26 | |||
| Cash Flow Start Date: | 1/1/2014 | |||
| Calendar or Fiscal Analysis: | Fiscal | |||
| Investment Holding Period (Yrs): | 10 | |||
| Reversion Year (Yrs): | 11 | |||
| Growth Rates | ||||
| General Inflation: | 3.00 | % | ||
| Market Rent: | 3.00 | % | ||
| Expenses: | 3.00 | % | ||
| Real Estate Taxes: | 3.00 | % | ||
| Vacancy & Collection Loss | ||||
| General Vacancy: | 0.00 | % | ||
| Credit & Collection Loss: | 0.00 | % | ||
| Total Vacancy & Collection Loss1: | 0.00 | % | ||
| Capital Expenditures | ||||
| Total Year 1 CAPEX & Leasing Costs | $ | 4,945 | ||
| Reserves for Replacement ($/psf/year) | $ | 0.20 | ||
| Rates of Return | ||||
| Discount Rate: | 7.75 | % | ||
| Terminal Capitalization Rate: | 7.50 | % | ||
| Reversionary Sales Cost: | 2.00 | % | ||
| Valuation | ||||
| Midpoint Market Value: | $ | 2,640,000 | ||
| Value PSF of NRA: | $ | 106.77 |
| Market Leasing Assumptions | ||||
| Retail | ||||
| Market Rent $/sf: | $ | 9.00 | ||
| Rent Escalations: | 5% After 5 Years | |||
| Leasing Commissions-New: | 6.0 | % | ||
| Leasing Commissions-Renewal: | 0.0 | % | ||
| Tenant Improvements-New: | $ | 15.00 | ||
| Tenant Improvements-Renewal: | $ | 0.00 | ||
| Renewal Probability: | 70.0 | % | ||
| Downtime (months): | 12 | |||
| Market Term (years): | 10 | |||
| Rent Abatements: | 0 | |||
| Reimbursement Method: | NN | 2 |
1Included in discount rate
2 Tenant pays all Operating & RE Taxes, Landlord pays CapEx
| 257 |
| Tractor Supply |
| Schedule of Prospective Cash Flow - Scenario 2 |
| In Inflated Dollars for the Fiscal Year Begining December 31, 2013 |
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Year 11 | ||||||||||||||||||||||||
| For the Years Ending | Dec-2014 | Dec-2015 | Dec-2016 | Dec-2017 | Dec-2018 | Dec-2019 | Dec-2020 | Dec-2021 | Dec-2022 | Dec-2023 | Dec-2024 | |||||||||||||||||||||||
| Potential Gross Revenue | ||||||||||||||||||||||||||||||||||
| Base Rental Revenue | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | $ | 226,392 | ||||||||||||
| Scheduled Base Rental Revenue | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | 226,392 | |||||||||||||||||||||||
| Expense Reimbursement Revenue | ||||||||||||||||||||||||||||||||||
| CAM | 37,954 | 39,093 | 40,265 | 41,473 | 42,718 | 43,999 | 45,319 | 46,679 | 48,079 | 49,521 | 51,007 | |||||||||||||||||||||||
| RE Tax | 78,321 | 80,671 | 83,091 | 85,584 | 88,151 | 90,796 | 93,520 | 96,325 | 99,215 | 102,192 | 105,257 | |||||||||||||||||||||||
| Total Reimbursement Revenue | 116,275 | 119,764 | 123,356 | 127,057 | 130,869 | 134,795 | 138,839 | 143,004 | 147,294 | 151,713 | 156,264 | |||||||||||||||||||||||
| Total Potential Gross Revenue | 342,667 | 346,156 | 349,748 | 353,449 | 357,261 | 361,187 | 365,231 | 369,396 | 373,686 | 378,105 | 382,656 | |||||||||||||||||||||||
| Effective Gross Revenue | 342,667 | 346,156 | 349,748 | 353,449 | 357,261 | 361,187 | 365,231 | 369,396 | 373,686 | 378,105 | 382,656 | |||||||||||||||||||||||
| Operating Expenses | ||||||||||||||||||||||||||||||||||
| CAM | 43,272 | 44,570 | 45,908 | 47,285 | 48,703 | 50,164 | 51,669 | 53,219 | 54,816 | 56,460 | 58,154 | |||||||||||||||||||||||
| RE Tax | 89,296 | 91,975 | 94,734 | 97,576 | 100,503 | 103,519 | 106,624 | 109,823 | 113,118 | 116,511 | 120,006 | |||||||||||||||||||||||
| Total Operating Expenses | 132,568 | 136,545 | 140,642 | 144,861 | 149,206 | 153,683 | 158,293 | 163,042 | 167,934 | 172,971 | 178,160 | |||||||||||||||||||||||
| Net Operating Income | 210,099 | 209,611 | 209,106 | 208,588 | 208,055 | 207,504 | 206,938 | 206,354 | 205,752 | 205,134 | 204,496 | |||||||||||||||||||||||
| Leasing & Capital Costs | ||||||||||||||||||||||||||||||||||
| Cap Expenditures | ||||||||||||||||||||||||||||||||||
| Reserve | 4,945 | 5,094 | 5,247 | 5,404 | 5,566 | 5,733 | 5,905 | 6,082 | 6,265 | 6,453 | 6,646 | |||||||||||||||||||||||
| Total Leasing & Capital Costs | 4,945 | 5,094 | 5,247 | 5,404 | 5,566 | 5,733 | 5,905 | 6,082 | 6,265 | 6,453 | 6,646 | |||||||||||||||||||||||
| Cash Flow Before Debt Service & Taxes | $ | 205,154 | $ | 204,517 | $ | 203,859 | $ | 203,184 | $ | 202,489 | $ | 201,771 | $ | 201,033 | $ | 200,272 | $ | 199,487 | $ | 198,681 | $ | 197,850 | ||||||||||||
| 258 |
| Tractor Supply |
| Discounted Cash Flow Analysis - Scenario 2 |
| As of December 31, 2013 |
| For the | PV of Cash | |||||||||||||
| Analysis | Year | Annual Cash | Flow | |||||||||||
| Period | Ending | Flow | @ | 7.75% | ||||||||||
| Year 1 | Dec-14 | $ | 205,154 | $ | 190,398 | |||||||||
| Year 2 | Dec-15 | 204,517 | 176,155 | |||||||||||
| Year 3 | Dec-16 | 203,859 | 162,959 | |||||||||||
| Year 4 | Dec-17 | 203,184 | 150,737 | |||||||||||
| Year 5 | Dec-18 | 202,489 | 139,417 | |||||||||||
| Year 6 | Dec-19 | 201,771 | 128,930 | |||||||||||
| Year 7 | Dec-20 | 201,033 | 119,219 | |||||||||||
| Year 8 | Dec-21 | 200,272 | 110,225 | |||||||||||
| Year 9 | Dec-22 | 199,487 | 101,896 | |||||||||||
| Year 10 | Dec-23 | 198,681 | 94,185 | |||||||||||
| Total Cash Flow | $ | 2,020,447 | $ | 1,374,123 | ||||||||||
| Property Resale @ 7.50% | 2,672,081 | 1,266,709 | ||||||||||||
| Total Property Present Value | $ | 2,640,832 | ||||||||||||
| Rounded | $ | 2,640,000 | ||||||||||||
| Per Square Foot | $ | 106.77 | ||||||||||||
| 259 |
| Comparable Sales | ||||||||||||||||||||||||||||||
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Tractor Supply | N/A | Marion | IN | 19,097 | $ | 3,010,000 | $ | 157.62 | Under Contract | $ | 241,005 | 8.01 | % | |||||||||||||||||
| Tractor Supply | N/A | Chickasha | OK | 19,185 | $ | 3,244,000 | $ | 169.09 | Under Contract | $ | 229,950 | 7.09 | % | |||||||||||||||||
| Tractor Supply | 994 US Highway 27 S | Cynthiana | KY | 40,700 | $ | 1,955,080 | $ | 48.04 | 7/10/2013 | $ | 175,957 | 9.00 | % | |||||||||||||||||
| Tractor Supply | 276 S Hwy 16 | Denver | NC | 19,097 | $ | 4,209,250 | $ | 220.41 | 4/3/2012 | $ | 331,689 | 7.88 | % | |||||||||||||||||
| Tractor Supply | 90 Marketplace Dr | Newnan | GA | 19,097 | $ | 3,943,000 | $ | 206.47 | 11/21/2012 | $ | 279,953 | 7.10 | % | |||||||||||||||||
| Tractor Supply | 8005 Marketplace Dr | Oak Ridge | NC | 21,677 | $ | 3,539,000 | $ | 163.26 | 11/18/2013 | $ | 256,578 | 7.25 | % | |||||||||||||||||
| Tractor Supply Co. | 2310 Mercury Blvd | Murfreesboro | TN | 24,000 | $ | 3,246,000 | $ | 135.25 | 7/28/2011 | $ | 243,450 | 7.50 | % | |||||||||||||||||
| Tractor Supply | 1266 Highway 641 S | Paris | TN | 22,670 | $ | 2,250,000 | $ | 99.25 | 12/21/2011 | $ | 189,675 | 8.43 | % | |||||||||||||||||
| Tractor Supply | 4768 US Hwy 250 | Norwalk | OH | 19,048 | $ | 1,375,000 | $ | 72.19 | 8/6/2013 | $ | 93,775 | 6.82 | % | |||||||||||||||||
| Tractor Supply | 2911 E Austin St | Giddings | TX | 19,000 | $ | 3,251,741 | $ | 171.14 | 12/21/2012 | $ | 225,996 | 6.95 | % | |||||||||||||||||
| Min | $ | 48.04 | 6.82 | % | ||||||||||||||||||||||||||
| Max | $ | 220.41 | 9.00 | % | ||||||||||||||||||||||||||
| Average | $ | 144.27 | 7.60 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $75.00 to $150.00 per square foot | |||||||||||||||||||||||||||||
| 260 |
PT1046 – AutoZone – Yorkville, IL
| 261 |
| BASIC INFORMATION | ||||||
| Property Name: | AutoZone | Report Type: | Restricted Appraisal Report | |||
| Address: | 958 North Bridge St | Interest Appraised: | Leased Fee | |||
| City: | Yorkville | Value Premise: | Market Value | |||
| State: | IL | Date of Value- "As Is": | December 31, 2013 | |||
| County: | Kendall | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 60560 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | The property was purchased on 6/25/13 for $1,912,000 from Highland Properties, Inc. At the time of sale, the transaction was at or near market levels. | |||||
| To our knowledge, the property has not sold in the past three years (other than the previously described transaction), and is not currently being offered for sale. Further, the property is not subject to an option for sale. | ||||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 0.73 | Frontage: | Average | |||
| Gross Land Area (sf): | 31,755 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | X | Shape: | Regular | |||
| FEMA Community Map #: | 170347 0039G | Location Rating: | Average | |||
| FEMA Map Date: | 2/4/2009 | Number of Parking Spaces: | 30 | |||
| Parking Ratio (per 1,000 SF): | 4.06 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2006 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 7,381 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 7,381 | Actual Age (years): | 8 | |||
| # of Buildings: | 1 | Tenant: | AutoZone | |||
| # of Stories: | 1 | Land to Building Ratio: | 4.30 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 02-28-329-032 | Zoning Municipality: | United City of Yorkville | |||
| Taxing Authority/Jurisdiction: | Kendall County | Current Zoning: | B-3, Service Business District | |||
| Current Tax Year | 2012 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $713,247 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $74,057 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $10.03 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | AutoZone | Current Rent $/sf: | $18.00 | |||
| Tenant S&P Rating: | BBB | Rent Bump Date: | None | |||
| Lease Expiration: | November 30, 2026 | Rent at Bump Date $/sf: | None | |||
| Expense Recovery: | NN; Tenant pays all Operating & RE Taxes, | Comment: | None | |||
| Landlord pays CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $1,950,000 | |||
| Sales Comparison Approach: | $240.00 to $290.00 per square foot | Value PSF of NRA: | $264.19 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $1,950,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 6.75% | |||||
| Market Rent $/sf: | $18.00 | |||||
| Contract Rent $/sf: | $18.00 | |||||
| 262 |
AutoZone
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 132,864 | $ | 18.00 | ||||
| Expense Reimbursement Revenue | 39,431 | 5.34 | ||||||
| Total Potential Gross Revenue | $ | 172,295 | $ | 23.34 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 172,295 | $ | 23.34 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 12,917 | $ | 1.75 | ||||
| Real Estate Taxes | 26,514 | 3.59 | ||||||
| Total Operating Expenses | $ | 39,431 | $ | 5.34 | ||||
| Capital Reserves | $ | 1,476 | 0.20 | |||||
| Net Operating Income | $ | 131,388 | $ | 17.80 | ||||
| Overall Capitalization Rate | 6.75 | % | ||||||
| Indicated Property Value | $ | 1,946,486 | $ | 263.72 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 1,950,000 | $ | 264.19 | ||||
| 263 |
Comparable Sales
| Property | Square | Estimated | ||||||||||||||||||||||||||||
| Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| AutoZone | 12440 S Us Highway 71 | Grandview | MO | 6,600 | $ | 1,175,000 | $ | 178.03 | 8/15/2013 | $ | 77,550 | 6.60 | % | |||||||||||||||||
| AutoZone | 958 N Bridge St | Yorkville | IL | 7,381 | $ | 1,912,000 | $ | 259.04 | 6/25/2013 | $ | 129,060 | 6.75 | % | |||||||||||||||||
| AutoZone | 6401 S King Dr | Chicago | IL | 7,278 | $ | 2,000,000 | $ | 274.80 | 4/30/2013 | $ | 146,400 | 7.32 | % | |||||||||||||||||
| AutoZone | 850 W Dundee Rd | Wheeling | IL | 6,786 | $ | 2,950,000 | $ | 434.72 | 1/15/2013 | $ | 199,125 | 6.75 | % | |||||||||||||||||
| AutoZone | 405 S Halleck St | Demotte | IN | 7,370 | $ | 1,075,000 | $ | 145.86 | 10/21/2011 | $ | 89,978 | 8.37 | % | |||||||||||||||||
| AutoZone | 671 E Lincoln Hwy | New Lenox | IL | 7,370 | $ | 2,267,500 | $ | 307.67 | 3/7/2011 | $ | 164,394 | 7.25 | % | |||||||||||||||||
| Min | $ | 145.86 | 6.60 | % | ||||||||||||||||||||||||||
| Max | $ | 434.72 | 8.37 | % | ||||||||||||||||||||||||||
| Average | $ | 266.69 | 7.17 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $240.00 to $290.00 per square foot | |||||||||||||||||||||||||||||
| 264 |
PT1047 – Dollar General – Broken Bow, OK
| 265 |
| BASIC INFORMATION | ||||||
| Property Name: | Dollar General | Report Type: | Restricted Appraisal Report | |||
| Address: | 906 South Park Dr | Interest Appraised: | Leased Fee | |||
| City: | Broken Bow | Value Premise: | Market Value | |||
| State: | OK | Date of Value- "As Is": | December 31, 2013 | |||
| County: | McCurtain | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 74728 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | The property was purchased on 1/4/2013 for $1,771,000 from Broken Bow GSDG, LLC.At the time of sale, the transaction was at or near market levels. | |||||
| To our knowledge, the property has not sold in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | ||||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 2.31 | Frontage: | Average | |||
| Gross Land Area (sf): | 100,624 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Average | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | Panel not printed - no special flood hazard | Shape: | Regular | |||
| FEMA Community Map #: | 400107 0750D | Location Rating: | Average | |||
| FEMA Map Date: | 7/22/2010 | Number of Parking Spaces: | 47 | |||
| Parking Ratio (per 1,000 SF): | 3.79 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2012 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 12,406 | Condition Rating: | Good | |||
| Net Rentable Area (sf): | 12,406 | Actual Age (years): | 2 | |||
| # of Buildings: | 1 | Tenant: | Dollar General | |||
| # of Stories: | 1 | Land to Building Ratio: | 8.11 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 219-24-06S-24E-4-072-00 | Zoning Municipality: | City of Broken Bow | |||
| Taxing Authority/Jurisdiction: | McCurtain County | Current Zoning: | C5, Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $97,975 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $8,460 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $0.68 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Dollar General | Current Rent $/sf: | $10.56 | |||
| Tenant S&P Rating: | BBB- | Rent Bump Date: | November 1, 2022 | |||
| Lease Expiration: | October 31, 2027 | Rent at Bump Date $/sf: | $10.88 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxes | Comment: | None | |||
| and CapEx | ||||||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $1,870,000 | |||
| Sales Comparison Approach: | $135.00 to $165.00 per square foot | Value PSF of NRA: | $150.73 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $1,870,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 7.00% | |||||
| Market Rent $/sf: | $9.00 | |||||
| Contract Rent $/sf: | $10.56 | |||||
| 266 |
Dollar General
Direct Capitalization Approach
As of December 31, 2013
| Amount | PSF | |||||||
| Potential Gross Revenue | ||||||||
| Rental Revenue | $ | 130,996 | $ | 10.56 | ||||
| Expense Reimbursement Revenue | 32,779 | 2.64 | ||||||
| Total Potential Gross Revenue | $ | 163,774 | $ | 13.20 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 163,774 | $ | 13.20 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 21,711 | $ | 1.75 | ||||
| Real Estate Taxes | 8,587 | 0.69 | ||||||
| Capital Reserves | 2,481 | 0.20 | ||||||
| Total Operating Expenses | $ | 32,779 | $ | 2.64 | ||||
| Net Operating Income | $ | 130,996 | $ | 10.56 | ||||
| Overall Capitalization Rate | 7.00 | % | ||||||
| Indicated Property Value | $ | 1,871,367 | $ | 150.84 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 1,870,000 | $ | 150.73 | ||||
| 267 |
Comparable Sales
| Square | Estimated | |||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||
| Dollar General | 15298 Pike Rd | Athens | AL | 9,026 | $ | 1,680,000 | $ | 186.13 | 12/10/2013 | $ | 116,256 | 6.92 | % | |||||||||||||||||
| Dollar General | 15449 ONeal Rd | Gulfport | MS | 9,100 | $ | 1,663,752 | $ | 182.83 | 9/5/2013 | $ | 116,463 | 7.00 | % | |||||||||||||||||
| Dollar General | 6401 E Kenosha St | Broken Arrow | OK | 9,026 | $ | 1,261,970 | $ | 139.81 | 8/26/2013 | $ | 88,338 | 7.00 | % | |||||||||||||||||
| Dollar General | 103 N Kelley St | Bokchito | OK | 9,026 | $ | 1,026,000 | $ | 113.67 | 2/24/2013 | $ | 74,385 | 7.25 | % | |||||||||||||||||
| Dollar General | 906 South Park Dr | Broken Bow | OK | 12,406 | $ | 1,771,000 | $ | 142.75 | 1/4/2013 | $ | 128,398 | 7.25 | % | |||||||||||||||||
| Dollar General | 2210 N Church St | Harrah | OK | 9,014 | $ | 1,030,650 | $ | 114.34 | 12/21/2012 | $ | 82,452 | 8.00 | % | |||||||||||||||||
| Min | $ | 113.67 | 6.92 | % | ||||||||||||||||||||||||||
| Max | $ | 186.13 | 8.00 | % | ||||||||||||||||||||||||||
| Average | $ | 146.59 | 7.24 | % | ||||||||||||||||||||||||||
| Concluded Range of Price PSF | $135.00 to $165.00 per square foot | |||||||||||||||||||||||||||||
| 268 |
PT1048 – Sunoco – Merritt Island, FL
| 269 |
| BASIC INFORMATION | ||||||
| Property Name: | Sunoco | Report Type: | Restricted Appraisal Report | |||
| Address: | 1760 East Merritt Island Cswy | Interest Appraised: | Leased Fee | |||
| City: | Merritt Island | Value Premise: | Market Value | |||
| State: | FL | Date of Value- "As Is": | December 31, 2013 | |||
| County: | Brevard | Owner of Record: | Cole Credit Property Trust, Inc. | |||
| Zip Code: | 32952 | Intended User: | Cole Credit Property Trust, Inc. | |||
| Purpose of the Appraisal: | To estimate the "As Is" Market Value of the subject property as of December 31, 2013. | |||||
| Ownership History: | The property was purchased on 4/12/2013 for $3,047,353 from S&S Enterprises, Inc. At the time of sale, the transaction was at or near market levels. To our knowledge, other than the sale described in April 2013, the property has not been involved in any other sales in the past three years, and is not currently being offered for sale. Further, the property is not subject to an option for sale. | |||||
| SITE INFORMATION | ||||||
| Gross Land Area (Acres): | 0.73 | Frontage: | Good | |||
| Gross Land Area (sf): | 31,755 | Access: | Average | |||
| Excess Land Area (Acres): | 0.0 | Site Visibility: | Good | |||
| Excess Land Area (sf): | 0 | Topography: | Level | |||
| Flood Zone: | AE and X | Shape: | Regular | |||
| FEMA Community Map #: | 120592 0360E | Location Rating: | Average | |||
| FEMA Map Date: | 4/3/1989 | Number of Parking Spaces: | 10 | |||
| Parking Ratio (per 1,000 SF): | 4.30 | |||||
| Parking Type: | Paved open surface parking | |||||
| BUILDING INFORMATION | ||||||
| Type of Property: | Retail | Year Built: | 2009 | |||
| Property Subtype: | Net Leased | Last Major Renovation: | The building has not been renovated. | |||
| Gross Building Area (sf): | 2,325 | Condition Rating: | Average | |||
| Net Rentable Area (sf): | 2,325 | Actual Age (years): | 5 | |||
| # of Buildings: | 1 | Tenant: | Sunoco | |||
| # of Stories: | 1 | Land to Building Ratio: | 13.66 | |||
| TAX/ZONING INFORMATION | ||||||
| Parcel ID Number(s): | 2437310031 | Zoning Municipality: | Brevard County | |||
| Taxing Authority/Jurisdiction: | Brevard County | Current Zoning: | BU2, Retail, Housing and Wholesale Commercial | |||
| Current Tax Year | 2013 | Current Use = Permitted Use: | Yes | |||
| Current Assessed Value: | $535,000 | Current Use Compliance: | The subject represents a legal and conforming use. | |||
| Current Tax Liability: | $11,236 | Zoning Change Applied For: | No | |||
| Taxes per sf of NRA: | $4.83 | Zoning Variance Applied For: | No | |||
| HIGHEST & BEST USE | ||||||
| As Vacant: | As Improved: | |||||
| The highest and best use of the subject property as vacant is for retail development. | The highest and best use of the subject property as improved is continued use as is. | |||||
| LEASE SUMMARY | ||||||
| Tenant: | Sunoco | Current Rent $/sf: | $96.34 | |||
| Tenant S&P Rating: | Not Rated | Rent Bump Date: | April 1, 2016; 2019; 2022; 2025; 2028 | |||
| Lease Expiration: | March 25, 2029 | Rent at Bump Date $/sf: | $105.97; $116.57; $128.22; $141.05; $155.15 | |||
| Expense Recovery: | NNN: Tenant pays all Operating, RE Taxesand CapEx | Comment: | None | |||
| Occupancy: | 100% | |||||
| VALUATION SUMMARY | ||||||
| Cost Approach Value: | Not Applicable | Midpoint Value Conclusion: | $3,200,000 | |||
| Sales Comparison Approach: | $1,000.00 to $1,500.00 per square foot | Value PSF of NRA: | $1,376.34 | |||
| Income Capitalization Approach: | ||||||
| Direct Capitalization | $3,200,000 | Exposure Time: | 6-9 months | |||
| Overall Capitalization Rate: | 7.00% | |||||
| Market Rent $/sf: | $95.00 | |||||
| Contract Rent $/sf: | $96.34 | |||||
| 270 |
| Sunoco |
| Direct Capitalization Approach |
| As of December 31, 2013 |
| Potential Gross Revenue | Amount | PSF | ||||||
| Rental Revenue | $ | 223,980 | $ | 96.34 | ||||
| Expense Reimbursement Revenue | 16,107 | 6.93 | ||||||
| Total Potential Gross Revenue | $ | 240,088 | $ | 103.26 | ||||
| Vacancy Loss | $ | 0 | $ | 0.00 | ||||
| Collection Loss | 0 | 0.00 | ||||||
| Effective Gross Income | $ | 240,088 | $ | 103.26 | ||||
| Operating Expenses | ||||||||
| CAM | $ | 4,069 | $ | 1.75 | ||||
| Real Estate Taxes | 11,573 | 4.98 | ||||||
| Capital Reserves | 465 | 0.20 | ||||||
| Total Operating Expenses | $ | 16,107 | $ | 6.93 | ||||
| Net Operating Income | $ | 223,980 | $ | 96.34 | ||||
| Overall Capitalization Rate | 7.00 | % | ||||||
| Indicated Property Value | $ | 3,199,721 | $ | 1,376.22 | ||||
| Less: Capital Expenditures | $ | 0 | $ | 0.00 | ||||
| Indicated Property Value (Rounded) | $ | 3,200,000 | $ | 1,376.34 | ||||
| 271 |
| Comparable Sales |
| Square | Estimated | |||||||||||||||||||||||||||||||
| Property Name | Address | City | State | Footage | Price | Price PSF | Date | NOI | Cap Rate | |||||||||||||||||||||||
| Hess Station | 24435 Allapattah Rd | Homestead | FL | 3,514 | $ | 3,060,000 | $ | 870.80 | 10/29/2013 | $ | 192,474 | 6.29 | % | |||||||||||||||||||
| Mobil | 4150 Pga Blvd | Palm Beach Gardens | FL | 2,797 | $ | 5,000,000 | $ | 1,787.63 | 4/22/2013 | $ | 380,500 | 7.61 | % | |||||||||||||||||||
| Sunoco | 600 S Courtenay Pky | Merritt Island | FL | 2,353 | $ | 2,809,105 | $ | 1,193.84 | 4/12/2013 | $ | 209,278 | 7.45 | % | |||||||||||||||||||
| Sunoco | 1760 East Merritt Island Cswy | Merritt Island | FL | 2,325 | $ | 3,047,353 | $ | 1,310.69 | 4/12/2013 | $ | 216,972 | 7.12 | % | |||||||||||||||||||
| 7 Eleven | 381 S Avalon Park Blvd | Orlando | FL | 2,725 | $ | 1,900,000 | $ | 697.25 | 1/24/2013 | $ | 110,010 | 5.79 | % | |||||||||||||||||||
| 7 Eleven | 2135 Tamiami Trl E | Naples | FL | 2,759 | $ | 3,600,000 | $ | 1,304.82 | 12/18/2012 | $ | 225,000 | 6.25 | % | |||||||||||||||||||
| Chevron Station | 24800 SW 177th Ave | Homestead | FL | 1,500 | $ | 825,000 | $ | 550.00 | 9/10/2012 | $ | 41,250 | 5.00 | % | |||||||||||||||||||
| Pappas Plaza | 1940 Us-19 | Holiday | FL | 1,400 | $ | 915,000 | $ | 653.57 | 6/7/2012 | $ | 78,050 | 8.53 | % | |||||||||||||||||||
| 7 Eleven | 4520 Bonita Beach Rd | Bonita Springs | FL | 3,257 | $ | 2,520,400 | $ | 773.84 | 5/29/2012 | $ | 155,005 | 6.15 | % | |||||||||||||||||||
| 7 Eleven | 11008 S Orange Blossom Trl | Orlando | FL | 2,941 | $ | 3,125,200 | $ | 1,062.63 | 4/25/2012 | $ | 203,138 | 6.50 | % | |||||||||||||||||||
| Exxon | 1100 N Federal Hwy | Fort Lauderdale | FL | 3,633 | $ | 4,150,000 | $ | 1,142.31 | 6/8/2011 | $ | 228,250 | 5.50 | % | |||||||||||||||||||
| 7 Eleven | 4227 E State Road 64 | Bradenton | FL | 2,940 | $ | 2,105,000 | $ | 715.99 | 5/27/2011 | $ | 153,034 | 7.27 | % | |||||||||||||||||||
| Min | $ | 550.00 | 5.00 | % | ||||||||||||||||||||||||||||
| Max | $ | 1,787.63 | 8.53 | % | ||||||||||||||||||||||||||||
| Average | $ | 1,005.28 | 6.62 | % | ||||||||||||||||||||||||||||
| Concluded Range of Price PSF | $1,000.00 to $1,500.00 per square foot | |||||||||||||||||||||||||||||||
| 272 |
Notes Payable Fair Value Summary
| TOTAL | Principal | Interest | Total | |||||||||
| Fixed - PV @ “Market” Rate | $ | 76,703,023 | $ | 5,855,846 | $ | 82,558,868 | ||||||
| Variable - PV @ “Market” Rate | $ | 5,742,792 | $ | 299,120 | $ | 6,041,912 | ||||||
| Book Value at 12/31/13 | $ | 85,906,077 | ||||||||||
| Difference | $ | 2,694,704 | ||||||||||
In determining the estimated market interest rates, we have considered the leverage, property type and weighted average years to maturity of the outstanding debt to estimate the spread. See calculation of market interest rates below. Support for rates is shown in the Cushman and Wakefield Capital Markets as of 12/31/13.
| VARIABLE RATE | ||||||||||||
| Years | Base Rate | Spread | Total | |||||||||
| 5 | 0.17 | % | 2.025 | % | 2.19 | % | ||||||
| FIXED RATE | ||||||||||||
| Base Treasury | ||||||||||||
| Years | Rate | Spread | Total | |||||||||
| 0.5 | 0.100 | % | 3.150 | % | 3.250 | % | ||||||
| 1 | 0.130 | % | 3.150 | % | 3.280 | % | ||||||
| 2 | 0.380 | % | 3.150 | % | 3.530 | % | ||||||
| 3 | 0.780 | % | 3.150 | % | 3.930 | % | ||||||
| 4 | 1.265 | % | 3.150 | % | 4.415 | % | ||||||
| 5 | 1.750 | % | 3.150 | % | 4.900 | % | ||||||
| 6 | 2.100 | % | 2.800 | % | 4.900 | % | ||||||
| 7 | 2.450 | % | 2.800 | % | 5.250 | % | ||||||
| 8 | 2.745 | % | 2.800 | % | 5.545 | % | ||||||
| 10 | 3.040 | % | 2.800 | % | 5.840 | % | ||||||
| 273 |
| Fair Value Date: | 12/31/2013 |
| Entity: | CV Whiteville NC | TS Woodstock VA | CV Lago Vista TX | EK Hayes VA | EK Spartanburg SC | EK Travelers Rest SC | TS Paducah KY | RA St. Mary’s OH | |||||||||||||||||
| Date Of Note | 3/10/05 | 4/29/05 | 6/3/05 | 7/8/05 | 6/29/05 | 7/15/05 | 7/22/05 | 7/26/05 | |||||||||||||||||
| Final Due Date | 3/11/15 | 5/11/15 | 7/11/15 | 7/11/15 | 7/11/15 | 8/11/15 | 8/11/15 | 8/11/15 | |||||||||||||||||
| Years Remaining | 1.19 | 1.36 | 1.53 | 1.53 | 1.53 | 1.61 | 1.61 | 1.61 | |||||||||||||||||
| Fixed (Stated) Rate | 5.27% | 5.45% | 5.42% | 5.55% | 5.55% | 5.63% | 5.64% | 5.64% | |||||||||||||||||
| “Market” Rate | 3.28% | 3.53% | 3.53% | 3.53% | 3.53% | 3.53% | 3.53% | 3.53% | |||||||||||||||||
| Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending Balance | 12/31/2013 | 1,736,000 | - | - | 1,658,000 | - | - | 3,151,000 | - | - | 2,773,000 | - | - | 3,406,000 | - | - | 3,137,000 | - | - | 1,187,000 | - | - | 1,687,000 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2014 | 1,736,000 | - | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2014 | - | 1,736,000 | 7,624 | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2015 | - | - | - | 1,658,000 | - | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2015 | - | - | - | - | 1,658,000 | 7,530 | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2015 | - | - | - | - | - | - | 3,151,000 | - | 14,232 | 2,773,000 | - | 12,825 | 3,406,000 | - | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2015 | - | - | - | - | - | - | - | 3,151,000 | 14,232 | - | 2,773,000 | 12,825 | - | 3,406,000 | 15,753 | 3,137,000 | - | 14,718 | 1,187,000 | - | 5,579 | 1,687,000 | - | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 3,137,000 | 14,718 | - | 1,187,000 | 5,579 | - | 1,687,000 | 7,929 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2015 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2016 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | �� | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Present Value “Market” Rate - Principal | 1,680,058 | 1,591,201 | 3,006,337 | 2,645,691 | 3,249,630 | 2,984,201 | 1,129,183 | 1,604,828 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Present Value “Market” Rate - Interest | 89,882 | 103,131 | 222,118 | 200,160 | 245,852 | 243,699 | 92,376 | 131,288 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase Price (Gross Asset Value) | 2,670,000 | 3,015,000 | 4,847,860 | 4,266,000 | 5,239,773 | 4,826,493 | 2,158,600 | 3,050,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midpoint Estimated Market Value | 3,100,000 | 3,000,000 | 6,300,000 | 4,000,000 | 4,900,000 | 4,500,000 | 2,200,000 | 3,100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LTV % (Loan Value / Purchase Price) | 56.0 | % | 55.3 | % | 50.0 | % | 69.3 | % | 69.5 | % | 69.7 | % | 54.0 | % | 54.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 274 |
| Fair Value Date: | 12/31/2013 |
| Affiliate LOC with Series C | ||||||||||||||||||||
| Entity: | TS Glasgow KY | VG Atlanta GA | TS Topeka KS | CN Rochester MN | RBS Loan Pool - 22 Entities | |||||||||||||||
| Date Of Note | 8/17/05 | 6/9/06 | 8/9/07 | 9/27/13 | 4/1/10 | |||||||||||||||
| Final Due Date | 9/11/15 | 6/11/16 | 9/1/17 | 3/31/14 | 4/11/15 | |||||||||||||||
| Years Remaining | 1.70 | 2.45 | 3.67 | 0.25 | 1.28 | |||||||||||||||
| Fixed (Stated) Rate | 5.53 | % | 6.56 | % | 5.88 | % | 5.75 | % | 7.06% Weighted Average (CMBS & Mezzanine) | |||||||||||
| “Market” Rate | 3.53 | % | 3.93 | % | 4.42 | % | 3.25 | % | 3.28 | % | ||||||||||
| Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | Int @ Fixed | Ending | Principal | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Rate | Balance | Payments | Int @ Fixed Rate | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Ending Balance | 12/31/2013 | 1,388,000 | - | - | 8,625,000 | - | - | 1,677,500 | - | - | 300,000 | - | - | 49,180,577 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | 300,000 | - | 1,438 | 49,124,858 | 55,719 | 298,851 | ||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | 300,000 | - | 1,438 | 49,068,917 | 55,941 | 298,629 | ||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | 300,000 | 1,438 | 48,983,875 | 85,042 | 269,527 | ||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | 48,927,251 | 56,624 | 297,946 | ||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | 48,860,796 | 66,455 | 288,114 | ||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | 48,803,638 | 57,158 | 297,411 | ||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | 48,736,662 | 66,975 | 287,594 | ||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | 48,678,964 | 57,699 | 296,871 | ||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | 48,621,031 | 57,932 | 296,637 | ||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | 48,621,031 | 286,841 | ||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2014 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2015 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2015 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2015 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2015 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2015 | 1,388,000 | - | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2015 | - | 1,388,000 | 6,396 | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2015 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2015 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2015 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2015 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2015 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2015 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2016 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2016 | - | - | - | 8,625,000 | - | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2016 | - | - | - | - | 8,625,000 | 47,150 | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2016 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| January | 2017 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| February | 2017 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| March | 2017 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| April | 2017 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| May | 2017 | - | - | - | - | - | - | 1,677,500 | - | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| June | 2017 | - | - | - | - | - | - | - | 1,677,500 | 8,225 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| July | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| August | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| September | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| October | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| November | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| December | 2017 | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| Present Value “Market” Rate - Principal | 1,316,520 | 7,896,222 | 1,437,727 | 297,576 | 47,863,850 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Present Value “Market” Rate - Interest | 111,979 | 1,216,484 | 319,553 | 4,289 | 2,875,033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase Price (Gross Asset Value) | 2,524,000 | 14,375,000 | 3,050,000 | 7,400,000 | 72,680,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Midpoint Estimated Market Value | 2,600,000 | 12,900,000 | 2,600,000 | 3,000,000 | 81,900,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LTV % (Loan Value / Purchase Price) | 53.4 | % | 66.9 | % | 64.5 | % | 10.0 | % | 60.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 275 |
| Fair Value Date: | 12/31/2013 |
| Entity: | GM Houston TX |
| Date Of Note | 12/10/12 | ||
| Final Due Date | 12/10/15 | ||
| Years Remaining | 1.94 | ||
| State Rate | 2.54% | ||
| “Market” Rate | 2.19% |
| Ending | Principal | |||||||||||||||
| Balance | Payments | Int @ Fixed Rate | ||||||||||||||
| Ending Balance | 12/31/2013 | 6,000,000 | ||||||||||||||
| January | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| February | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| March | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| April | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| May | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| June | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| July | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| August | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| September | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| October | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| November | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| December | 2014 | 6,000,000 | - | 12,750 | ||||||||||||
| January | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| February | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| March | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| April | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| May | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| June | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| July | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| August | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| September | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| October | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| November | 2015 | 6,000,000 | - | 12,750 | ||||||||||||
| December | 2015 | - | 6,000,000 | 12,750 | ||||||||||||
| Present Value “Market” Rate - Principal | 5,742,792 | |||||||||||||||
| Present Value “Market” Rate - Interest | 299,120 | |||||||||||||||
| Midpoint Estimated Market Value | 14,500,000 | |||||||||||||||
| 276 |