Triple BOV

Conclusions/Portfolio Opinion of Value
Acquisition
Purchase Price $100,000,000
Closing Costs $1,235,329
Up-Front Capital Expenditures $0
Total Acquisition Costs $101,235,329
Total Debt $70,000,000 (69.1%)
Total Equity $31,235,329 (30.9%)
Debt Overview
Loan Amount $70,000,000
Loan Term 120
Amortization 360
Interest Rate 4.60%
Annual Debt Service $4,306,213
Debt Coverage Ratio (Year 1) 1.22
Debt Yield Ratio (Year 1) 7.49%
Investment Profile
Hold Period
5 years
Exit Cap Rate 5.5%
Exit NOI $6,390,833
Exit Sale Price $116,196,971
Cash-on-Cash 6.05%
Unleveraged IRR 7.72%
Leveraged IRR 18.47%
Based on our analysis of the three properties individually,
aggregate pricing for the three assets ranges between $96.6M
and $98.0M. Combining the income streams of the properties
and considering all three assets as a whole creates economies-
-of-scale that would not be experienced in a single-asset sale
scenario. In addition, a buyer of a portfolio of this size would
likely seek alternate financing from standard agency financing,
resulting in more favorable financing terms.
Our analysis concludes that pricing of $100,000,000 for the
portfolio would hit the necessary benchmarks most lenders and
investors look to attain, with optimistic pricing ranging up to
$105,000,000.
It is our recommendation that the three-property portfolio be
taken to market at a price of $105,000,000.
Our fee for this assignment would be 40 basis points of the sales
price of the three-property portfolio.
COLLIERS INTERNATIONAL P. 35