Carolina Industrial
Capital Square Realty Advisors
Investment Highlights
Overview
This offering is to purchase an industrial warehouse in Mooresville, North Carolina. The property was built in 2005 and is occupied by the Carolina Beverage Group on a long-term triple-net (NNN) lease term set until 2036.
- Year 1 Cash Flow 6.25%
- Initial Occupancy 100.00%
- Est. Time Horizon None
- Yr 1. Cap Rate to Investors 5.83%
- Investor Purchase Price $20,362,500
- Total Offering Size $8,630,000
Loan Information
The loan (guaranteed personally by the Sponsor's CEO and Founder, Louis J. Rogers) is a 10-year term with a fixed-interest rate of 5.030% (5-years of interest-only). After two years, defeasance can occur with a penalty.
- Yr. 1 DSCR 1.98
- Loan-to-Value 57.62%
- Hold Period DSCR 1.91
Key Benefits
The tenant is deeply rooted in the area; unlikely to vacate.
The Sponsor’s CEO/Founder has guaranteed the loan.
The lease is long-term, triple-net, and includes rent-escalations.
Key Risks
The tenant lost their credit rating in 2018 due to a debt payment. (*The tenant’s financials have not been disclosed for a due diligence review.)
A low CAP rate of 5.83%. (*The Sponsor’s cap (6.58%) is below the sales comp average.)
About Capital Square Realty Advisors
Capital Square 1031 is a national real estate investment and management company. The firm sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. Capital Square uses the Delaware Statutory Trust (DST) structure to make quality real estate available to a larger number of investors.