Neighborhood Market Portfolio

Inland

Investment Highlights

Overview

Inland Neighborhood Market Portfolio is an investment in 3 Wal-Mart properties located in 2 different states. The properties are located in Oklahoma and Virginia. Each location has a Wal-Mart Neighborhood Market location that is currently net leased to the tenant.

Year 1 Cash Flow 0.00%
Initial Occupancy 100.00%
Est. Time Horizon 10 years

Yr 1. Cap Rate to Investors 5.16%
Investor Purchase Price $36,560,003
Total Offering Size $8,408,635

Loan Information

The loan totals $28,151,368 and is from Wells Fargo. The loan has a term of 19 years and is fully amortizing on a 19 year schedule. The loans are cross-collateralized across all three properties. The interest rate is a fixed rate of 3.32%.

Yr. 1 DSCR 1.01
Loan-to-Value 77.00%

Hold Period DSCR 1.01

Key Benefits

The remaining lease term left on these properties is approximately 19 years. This will allow for the trust to hold these properties and be able to sell them with a substantial amount of time left on the leases. This may make the properties more attractive to potential buyers.

Wal-Mart Stores, Inc. has an investment grade credit rating and guarantees the lease payments at each of the properties in this portfolio.

Key Risks

Wal-Mart has a right of first refusal at each of the properties. This may make it more difficult to sell the properties. Potential buyers may not make offers due to the RoFR and it could potentially delay the sales process.

For net leased properties, the value of the property is based on the number of years left of rental income. As the remaining lease term dwindles, the value of the property may decline. This property however, has a long lease and even if the trust should hold for the typical hold period of 10 years, there will still be 9 years remaining on the lease.

About Inland

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.