10% CASH-ON-CASH RETURN ON CLASS A LIFESTYLE SHOPPING CENTER

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INVESTMENT HIGHLIGHTS

Minimum Investment:$500,000
Total Equity:$10,000,000
IRR:21%
Average Cash-on-cash Yield:10%
Stabilized NOI:$5,500,000
Year 1 NOI:$4,800,000
Total Deal Size:$72,500,000
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Carlton Strategic Ventures (“CSV” or “GP”) is offering select investors an opportunity to invest in The Plaza at Harmon Meadow (the “Asset” of “Property”), a 96% occupied, 217,613 square foot lifestyle center in Secaucus, New Jersey.

The Property is long-term leased to a multitude of national restaurant chains at below market rental rates in an urban, infill, irreplaceable location. CSV believes this provides a unique opportunity to access urban retail at an attractive basis generating a strong current cash on cash return which is highly beneficial in the low current interest rate environment.

The projected holding period of five years allows the GP to mark to market under market leases, lease up the nominal vacant space, and monetize escalations of long-term leases in-place.

Major Investment Highlights:

  • Attractive Debt Yield & NOI Growth: The In-Place NOI is currently $4.8mm increasing to $5.5mm through contractual rent steps and rents rolling to market levels during the 5 year hold period.
  • Strong Tenant Sales: The top five restaurant tenants generate $550+ psf in sales annually with a weighted average occupancy cost of 5.5%. These tenants represent approximately 25% of the NOI.
  • Highly Stable Cash Flow: The property is currently 96%+ leased to a diverse mix of tenants. The property benefits from stable operating cash flow given the nominal annual lease rollover. The tenants that do have nearer term lease expirations have below market options, which given their occupancy cost and strong sales per square foot should be exercised.
  • Percentage Rent: Upside potential exists through percentage rental income generated by tenants. Almost all of the retail tenants at the property have percentage rent clauses and a few tenants are close to their breakeven point, which would generate additional net operating income not contemplated herein.

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