Triple BOV

Conclusion
Acquisition
Purchase Price $21,000,000
Closing Costs $299,179
Up-Front Capital Expenditures $0
Total Acquisition Costs $21,299,179
Total Debt $14,700,000 (69.0%)
Total Equity $6,599,179 (31.0%)
Debt Overview
Loan Amount $14,700,000
Loan Term 120
Amortization 360
Interest Rate 4.60%
Annual Debt Service $904,305
Debt Coverage Ratio (Year 1) 1.23
Debt Yield Ratio (Year 1) 7.55%
Investment Profile
Hold Period
5 years
Exit Cap Rate 5.5%
Exit NOI $1,435,881
Exit Sale Price $26,106,919
Cash-on-Cash (Year of Sale) 7.34%
Unleveraged IRR 9.46%
Leveraged IRR 22.28%
Rental rates at Hunters Way have remained suppressed
throughout the course of a siding project but as that project
nears completion, rental rates have begun to increase by $40
to $70 per unit. This trend should continue subsequent to the
completion of this project. Rents should stabilize over the next
two years.
At a price point of $22,000,000, or $110,000 per unit, Hunter’s
Way is able to attain market benchmarks for similar assets
based on typical non-recourse financing and is well supported
by other comparable transactions that indicate pricing between
$91,000 and $108,000 per unit. While our pricing is just above
this range, cap rates have continued to compress since the timing
of these sales, driving values upward. At this price point, it is our
opinion that this asset would receive significant interest but that
motivated buyers with favorable financing would be willing and
able to purchase at a premium.
Our conclusion for the Eastport property would be a list price
of $22,500,000 with the expectation of a sale price between
$22,000,000 and $22,500,000.
COLLIERS INTERNATIONAL P. 31