East Coast Wholesale Portfolio
Inland East Coast Wholesale Portfolio is an investment into two single tenant retail buildings. The properties are leased to the same tenant, BJ's Wholesale Club, which is a membership warehouse club.
- Year 1 Cash Flow 6.00%
- Initial Occupancy 100.00%
- Est. Time Horizon 10 years
- Yr 1. Cap Rate to Investors 5.58%
- Investor Purchase Price $71,466,394
- Total Offering Size $32,741,394
The total loan is $38,725,000 and is from Santander & First National Bank. There is a separate loan on each property and each has different terms.
Attleboro - Total $25,800,000 with a 7 year term and 1 year of interest only. The interest rate is fixed at 3.58%.
Baltimore - Total $12,925,000 with a 7 year term and 30 year amortization schedule. The interest rate is 3.2% for the first two years and increases to 4.05% for the remaining 5 years.
- Yr. 1 DSCR 2.84
- Loan-to-Value 54.19%
- Hold Period DSCR 1.75
The cap rate of this investment is low (5.58%) which is below the average for BJ's Warehouse locations that average between 6.18%-6.83%.
The tenant has the right of first refusal on the property which may make the sale of the property more difficult. A potential buyer may not make an offer or it may delay the sales process.
BJ's is a non-investment grade tenant and has defaulted on their debt at a 46.6% average rate during the period from 1998-2008.
The Inland Real Estate Group of Companies, Inc. ("Inland"), is an industry leader and one of the nation's largest commercial real estate and finance organizations. As a business incubator, we specialize in creating, developing and supporting Inland member companies that provide commercial real estate-related services and alternative investment funds, including limited partnerships, institutional funds and non-listed and listed REITs.