westchase surgery center christopher angelo · for the year ending year 1 mar-2021 year 2 mar-2022...

Contact:Christopher AngeloCommercial SpecialistPhone : 8139600999Email : [email protected]

Westchase SurgeryCenter10901 Sheldon RdTampa, FL 33626

©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

TABLE OF CONTENTSTABLE OF CONTENTS

Page 1

PROPERTY INFO & DISCLAIMER

PROPERTY DESCRIPTION

PROPERTY PHOTOS

AERIAL & LOCATION REPORT

INVESTMENT ANALYSIS - 5 YEAR BEFORE TAX

2

3

4

9

11


WESTCHASESURGERY CENTER

PROPERTYINFO:

PURCHASE PRICE:$4,300,000

PROPERTY ADDRESS:10901 SHELDON RDTAMPA, FL 33626

YEAR BUILT:2009

PROPERTY SIZE11,625 SQ. FT.

LAND SIZE3.00 ACRES

Page 2COMPANY DISCLAIMER©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

PROPERTY DESCRIPTIONPROPERTY DESCRIPTIONWestchase Surgery Center was built in 2009, constructed of masonry block andan asphalt & shingle roof. The building sits on over 3 acres and has great frontageon Sheldon Road, one of Tampa's busiest North/South roads. Building is 11,625rentable square feet and has a drive-thru for patient drop off and pick up.

In additional to the surgery center, this property also has over 2,000 SF of built-outmedical office space attached. The surgery center sits across the street from abusiness park filled with physicians, dentists, and other professionals. It is locateda block away from the subdivision of Westchase, the largest development ofregional impact in the Bay Area.

Westchase Surgery CenterTampa FL 33626

Page 3©Copyright 2011-2020 CRE Tech, Inc. All Rights Reserved.

PROPERTY PHOTOSPROPERTY PHOTOS


Westchase Surgery Center10901 Sheldon Rd, Tampa, FL, 33626

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626AERIAL ANNOTATION MAP

Page 9

© Copyright 2011- 2020 CRE Tech, Inc. All Rights Reserved.

Christopher Angelo,Commercial SpecialistPhone: 8139600999Email: [email protected] North Dale Mabry Highway Suite 107,Tampa FL 33618

Westchase Surgery Center10901 Sheldon Rd, Tampa, FL, 33626

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626STREET VIEW MAP

Page 10



INITIAL INVESTMENTPurchase Price $4,300,000 + Acquisition Costs $86,000 - Mortgage(s) $3,225,000 + Loan Fees Points $16,125 Initial Investment $1,177,125

MORTGAGE DATA 1ST LIENLoan Amount $3,225,000 Interest Rate 4.000% Amortization Period 25 Years Periodic Payment $17,023 Annual Debt Service $204,273

CASH FLOW

For the Year EndingYear 1

Mar-2021Year 2

Mar-2022Year 3

Mar-2023Year 4

Mar-2024Year 5

Mar-2025POTENTIAL RENTAL INCOME (PRI) Base Rental Income $329,580 $340,529 $350,270 $361,895 $355,748 - Turnover Vacancy $0 $0 $2,443 $0 $30,869 - Rent Concessions $0 $0 $0 $0 $0 Total Base Rental Income $329,580 $340,529 $347,828 $361,895 $324,879 - General Vacancy / Credit Loss $0 $0 $0 $0 $0 EFFECTIVE RENTAL INCOME $329,580 $340,529 $347,828 $361,895 $324,879 + Tenant Expense Reimbursements $0 $0 $0 $0 $0 + Other Income $57,474 $58,623 $59,796 $60,992 $62,212 GROSS OPERATING INCOME (GOI) $387,054 $399,152 $407,624 $422,887 $387,091 - Operating Expenses $109,183 $111,366 $113,594 $115,866 $118,183 NET OPERATING INCOME (NOI) $277,871 $287,786 $294,030 $307,021 $268,908

NET OPERATING INCOME (NOI) $277,871 $287,786 $294,030 $307,021 $268,908 - Capital Expenses / Replacement Reserves $0 $0 $0 $0 $0 - Annual Debt Service 1st Lien $204,273 $204,273 $204,273 $204,273 $204,273 - Tenant Improvements (TI) $0 $0 $0 $0 $0 - Leasing Commissions (LC) $0 $0 $0 $0 $0 CASH FLOW BEFORE TAXES $73,598 $83,513 $89,757 $102,748 $64,635

Loan Balance $3,148,332 $3,068,540 $2,985,497 $2,899,071 $2,809,124 Loan-to-Value (LTV) - 1st Lien 71.12% 67.83% 63.21% 70.08% 87.02% Debt Service Coverage Ratio 1.36 1.41 1.44 1.50 1.32 Before Tax Cash on Cash 6.25% 7.09% 7.63% 8.73% 5.49%

SALES PROCEEDSProjected Sales Price (EOY 5) $3,228,000

Cost of Sale $161,400 Mortgage Balance 1st Lien $2,809,124

Sales Proceeds Before Tax $257,476

INVESTMENT PERFORMANCEInternal Rate of Return (IRR) N/A Acquisition CAP Rate 6.46% Year 1 Cash-on-Cash 6.25% Gross Rent Multiplier 13.05 Loan to Value 70.69% Debt Service Coverage Ratio 1.36

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 336265-YEAR CASH FLOW ANALYSIS

Fiscal Year Beginning April 2020

Page 11

DISCLAIMER: Year 5 sales price based on estimated NOI in year 6. All information is based on estimated forecast and are intendedfor the purpose of example projections and analysis. The information presented herein is provided as is, without warranty of any

kind. nor CRE Tech, Inc. assume any liability for errors or omissions. This information is not intended to replace or serve assubstitute for any legal, investment, real estate or other professional advice, consultation or service.



Suite/Unit Tenant RentableArea(Sq. Ft.)

LeaseStart Date

LeaseEnd Date

Initial LeaseTerm

(Months)

CurrentMonthlyRate PerSq. Ft.

CurrentAnnual

Rate PerSq. Ft.

Current YearAnnual

Base Rent

ASC Westchase Surgery Center 9,579.00 Nov-19 Oct-24 60 $2.49 $29.89 $290,498 10903 Florida Pain Relief Group 2,046.00 Apr-20 Mar-22 24 $1.59 $19.10 $39,082

Total Amount 11,625.00 $329,580

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626TENANT RENT ROLL


Page 12





Tenant Occupancy Westchase Surgery Center (82.4%) Florida Pain Relief Group (17.6%)



Page 13





Rate Per Square Feet

Annualized Rate$0.00 $8.00 $16.00 $24.00 $32.00 $40.00

Suite

/Uni

t

ASC

10903

$29.89

$19.10



Page 14





For the Year Ending Year 1Mar-2021

Year 2Mar-2022

Year 3Mar-2023

Year 4Mar-2024

Year 5Mar-2025

ASC Westchase Surgery Center Base Rent $290,498 $300,665 $311,188 $322,080 $315,137 - Turnover Vacancy $0 $0 $0 $0 $30,869 - Rent Concessions $0 $0 $0 $0 $0

+ Tenant Exp Reimb. $0 $0 $0 $0 $0 Net Tenant Income $290,498 $300,665 $311,188 $322,080 $284,268 Tenant Improvements (TI) $0 $0 $0 $0 $0 Leasing Commission (LC) $0 $0 $0 $0 $0

For the Year Ending Year 1Mar-2021

Year 2Mar-2022

Year 3Mar-2023

Year 4Mar-2024

Year 5Mar-2025

10903 Florida Pain Relief Group Base Rent $39,082 $39,864 $39,082 $39,815 $40,611 - Turnover Vacancy $0 $0 $2,443 $0 $0 - Rent Concessions $0 $0 $0 $0 $0

+ Tenant Exp Reimb. $0 $0 $0 $0 $0 Net Tenant Income $39,082 $39,864 $36,640 $39,815 $40,611 Tenant Improvements (TI) $0 $0 $0 $0 $0 Leasing Commission (LC) $0 $0 $0 $0 $0

TOTAL Base Rent $329,580 $340,529 $350,270 $361,895 $355,748 -Turnover Vacancy $0 $0 $2,443 $0 $30,869 -Rent Concessions $0 $0 $0 $0 $0 + Tenant Exp Reimb. $0 $0 $0 $0 $0 Total Tenant Income $329,580 $340,529 $347,828 $361,895 $324,879 Tenant Improvements (TI) $0 $0 $0 $0 $0 Leasing Commission (LC) $0 $0 $0 $0 $0

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626ANNUAL TENANT INCOME DETAIL


Page 15





5-YEAR EQUITY YIELD & EFFECTIVE LOAN RATE

Unleveraged Investment

Cash Flow & 5-year YieldN $

0 ($4,386,000)

1 $277,871

2 $287,786

3 $294,030

4 $307,021

5 $3,335,508

+Financing Cash Flow

& Effective RateN $

0 $3,208,875

1 ($204,273)

2 ($204,273)

3 ($204,273)

4 ($204,273)

5 ($3,013,397)

=Equity Investment

Cash Flow & 5-year YieldN $

0 ($1,177,125)

1 $73,598

2 $83,513

3 $89,757

4 $102,748

5 $322,111

ASSUMPTION / INPUTSPurchase Price $4,300,000 Year 1 Potential Income $329,580 Vacancy & Credit Loss 0.00% Year 1 Expenses $109,183 Acquisition CAP Rate 6.46% Sale Price - CAP Rate 6.50%

Acquisition Costs 2.00% Annual Income Increase 0.00% Other Income Increase 2.00% Annual Expense Increase 2.00% Loan Fees Points 0.50% Cost of Sale upon Disposition 5.00%

Property IRR/Yield = 0.60% Effective Loan Rate = 4.07% Equity IRR/Yield = N/A

Negative Leverage. Leverage DECREASED the Yield by -0.60%

53%

28%

0%

19%

Cash Flow $ 73,598

Debt Service Expenses Cash FlowVacancy

-14.00

-3.00

0.00

8.00

CAP Rate Cash-on-Cash IRR

6.46 6.25

-13.37

Investment Performance (%)

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 336265-YEAR CASH FLOW ANALYSIS


Page 16





W A L E (Weighted Average Lease Expiry)

Suite/Unit TenantRentable

Area(Sq. Ft.)

LeaseEnd Date

Percentageof

TotalBuilding

RemainingLease

Term (Years)

WALE (Physical

Area)

RemainingNet Tenant

Income

WALE (Economic)

ASC Westchase SurgeryCenter

9,579.00 Oct-24 82.40 % 4.58 3.77 $1,416,092 4.30

10903 Florida Pain Relief Group 2,046.00 Mar-22 17.60 % 2.00 0.35 $78,946 0.24 Total Amount 11,625.00 100.00 % 4.12 $1,495,038 4.54

W A L E (Physical) W A L E (Economic)

4.124.54

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626W A L E (WEIGHTED AVERAGE LEASE EXPIRY)


Page 17





Weighted Average Lease Expiry by Tenant

0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.20

Westchas...

Florida P...

3.77

0.35

4.3

0.24

W A L E (Physical)W A L E (Economic)

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626W A L E (WEIGHTED AVERAGE LEASE EXPIRY)


Page 18





$ 290,498 $ 0 $ 0 $ 290,498 $ 300,665 $ 0 $ 0 $ 300,665 $ 311,188 $ 0 $ 0 $ 311,188 $ 322,080 $ 0 $ 0 $ 322,080 $ 191,661 $ 0 $ 0 $ 191,661

Total $ 1,416,092 $ 0 $ 0 $ 1,416,092

$ 39,082 $ 0 $ 0 $ 39,082 $ 39,864 $ 0 $ 0 $ 39,864

Total $ 78,946 $ 0 $ 0 $ 78,946

$ 1,495,038 $ 0 $ 0 $ 1,495,038

$ 329,580 $ 0 $ 329,580

4.54

Acquisition Date: April 01, 2020

Suite # Tenant Name Lease Start Lease EndRemaining Term

Initial Lease

Renewal ProbabiltyUpon

Lease Expiration ASC Westchase Surgery Center 01-Nov-19 31-Oct-24 4 Years, 7 Months 75%

Lease Analysis Period

(Acquisition Date to LeaseExpiry)

Base Rent Rent Concessions

Total AnnualTenant

ExpenseReimbursement

Net Tenant Income

Apr 01, 2020 to Mar 31, 2021 Apr 01, 2021 to Mar 31, 2022 Apr 01, 2022 to Mar 31, 2023 Apr 01, 2023 to Mar 31, 2024 Apr 01, 2024 to Oct 01, 2024

Suite # Tenant Name Lease Start Lease EndRemaining Term

Initial Lease

Renewal ProbabiltyUpon

Lease Expiration 10903 Florida Pain Relief Group 01-Apr-20 31-Mar-22 2 Years, 0 Months 75%

Lease Analysis Period

(Acquisition Date to LeaseExpiry)

Base Rent Rent Concessions

Total AnnualTenant

ExpenseReimbursement

Net Tenant Income

Apr 01, 2020 to Mar 31, 2021 Apr 01, 2021 to Mar 01, 2022

TOTAL Initial Lease Income

Total Year 1 Base Rent Year 1 Tenant Exp Reimb. Total Year 1 Tenant Income Economic W A L E

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626W A L E (WEIGHTED AVERAGE LEASE EXPIRY) LEASE DETAIL


Page 19





Lease Sq. Ft. Expiring For the Year Ending

Year 1Mar-2021

Year 2Mar-2022

Year 3Mar-2023

Year 4Mar-2024

Year 5Mar-2025

ASC Westchase Surgery Center 9,579.00 10903 Florida Pain Relief Group 2,046.00

Total Square Feet Expiring 0 2,046 0 0 9,579 Percent of Building Total 0% 18% 0% 0% 82%

Lease Expiration Rollover Analysis

0

2,108

4,216

6,324

8,432

10,540

Year 1 Year 2 Year 3 Year 4 Year 5

0

2,046

0 0

9,579

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626LEASE EXPIRATION ROLLOVER ANALYSIS


Page 20





Annual GOI, Expense and NOI Percent Change

Expense Ratio % of GOI

-13.00%

-10.00%

-5.00%

0.00%

6.00%


GOI Change Expense Change NOI Change

Year 1 Year 2 Year 3 Year 4 Year 5$0

$100,000

$200,000

$300,000

$400,000

$500,000

25.0%

27.2%

29.4%

31.6%

33.8%

36.0%

28.2% 27.9% 27.9%27.4%

30.5%

GOI Expenses Expense Ratio

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626ANNUAL GOI, EXPENSE AND NOI PERCENT CHANGE, EXPENSE RATIO % OF GOI


Page 21





Year Year 1 Year 2 Year 3 Year 4 Year 5Before Tax Cash on Cash Return 6.25% 7.09% 7.63% 8.73% 5.49%

Annual Cash-on-Cash Dividend Return

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

1 2 3 4 5

Before Tax Cash on Cash Retum

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626CASH-ON-CASH ANALYSIS


Page 22





Before Tax Optimal Holding Period 3 Years Before Tax Optimal Hold Annual Yield 14.87%

Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5Before Tax EQUITY Yield (IRR) N/A 8.78% 14.87% 4.48% N/A

Optimal Holding Period by Annual Equity Yield (IRR)

0.00%

3.00%

6.00%

9.00%

12.00%

15.00%

18.00%

Holding Period/Year of Sale

1 2 3 4 5

0.00%

8.78%

14.87%

4.48%

0.00%

Before Tax EQUITY Yield (IRR)

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626OPTIMAL HOLDING PERIOD ANALYSIS


Page 23





Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5Before Tax NPV @ 8.00% Discount Rate $1,047,144 $1,193,638 $1,402,820 $1,044,394 $505,743

Before Tax Discount Rate 8.00% Before Tax Optimal Holding Period 3 Year

Optimal Holding Period by NPV Method

$0

$308,622

$617,244

$925,866

$1,234,488

$1,543,110


Before Tax NPV

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626OPTIMAL HOLDING PERIOD BY DISCOUNTED CASH FLOW METHOD (NPV)


Page 24





Year of Sale Year 1 Year 2 Year 3 Year 4 Year 5Property Yield (IRR) Before Tax 2.22% 5.47% 7.24% 4.20% 0.60% Effective Cost of Borrowed Funds 4.48% 4.22% 4.14% 4.10% 4.07% Equity Yield (IRR) Before Tax N/A 8.78% 14.87% 4.48% N/A

Impact of Leverage on Yield ↓ 2.22% ↑ 3.31% ↑ 7.63% ↑ 0.28% ↓ 0.60%

Impact of Leverage Analysis (Before Tax)

0.00%

4.00%

8.00%

12.00%

16.00%

20.00%

Holding Period/Year of Sale1 2 3 4 5

2.22

%

5.47

% 7.24

%

4.20

%

0.60

%

4.48

%

4.22

%

4.14

%

4.10

%

4.07

%

0.00

%

8.78

%

14.8

7%

4.48

%

0.00

%

Property Yield (IRR) Before Tax Effective Cost of Borrowed FundsEquity Yield (IRR) Before Tax

WESTCHASE SURGERY CENTER10901 Sheldon Rd, Tampa, FL, 33626IMPACT OF LEVERAGE ANALYSIS


Page 25





8139600999

[email protected]

11406 North Dale Mabry Highway Suite 107, Tampa, FL, 33618

CHRISTOPHER ANGELO,COMMERCIAL SPECIALIST


westchase surgery center christopher angelo · for the year ending year 1 mar-2021 year 2 mar-2022...

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