Opportunity Zone Investment Property Priced Below Appraised Value

421 Maiden Lane, Fayetteville, NC

$4,800,000

Price

17%

Cap Rate

17%

Pro Forma Cap Rate

Overview
Cap Rate
17%
Pro Forma Cap Rate
17%
NOI
$1,152,000
Building Size
93,000 sqft
Lot Area
1.67 acres
Occupancy
14%
Class
B
Lease Type
Full Service
Price Per Sqft
$24
Zoning
C-2
Year Built
1937
Tenancy
Multiple
Floors
3
Parking Spots
30
Year Last Renovated
2008
Gross Leaseable Area
86000
Freight Elevator
1
Number of Elevators
3
HVAC
Multiple per floor with a Cooling Tower
Floor
Mixed, Carpet and Concrete
Restrooms
8
Investment Strategy
Value Add
Description

Seller: Ace Capital LLC / Advanced Internet Technologies, Inc. Property is owned outright by Seller

Sales Price: $4.8 Million due at Closing, less the earnest deposit (See Lease Back). Two previous existing appraisals $7.5 million and $8.8 million prior to the recent $100 (+) million downtown investment in adjacent construction for new minor league baseball stadium (Houston Astros), hotel, retail and condominiums. Previous asset based financing for a $4 million loan executed and paid off.

Lease Back: At closing Seller will execute a ten year lease with two five year options for an estimated $7,000 SF at a negotiable price per SF for AIT’s Data Center and Internet technology operations. This leaseback is negotiable and contingent upon several factors. Even at a negotiable price per SF, the properties CAP Rate and Cash Flow are robust assuming the remaining square footage is leased at $12 - $24 per SF. Property has been leased in the past using full leases at $12 - $24 per SF using full leases. However, with new surrounding construction, this price is subject to a likely increase. Current surrounding retail and office renovated construction is leasing between $25 and $30 a SF.

CAP Rate: 17% Fully Leased assuming that is the intended purpose of the property. With total rented space revenues well exceed $1 million per year. Estimated net rental income $85,000 to 95,000 per month at $12 - $24 per square foot not including parking if deck if constructed on existing ground level parking lot and land. Current monthly expenses approximately $10,000 to $13,000 per month. Property could be redeveloped for Mixed Use, Residential/Retail, Technology Incubator, Performing Arts Center, and more similar to the Durham NC Project. The Cap Rate does not include the approximate 45,000 SF of roof top decks /space and patio adjacent to the new baseball stadium which could also be redeveloped and monetized.

Earnest Money: $100,000 to be applied toward Closing.

Inspection Period: Ninety (90) days from later to occur (1) the date a purchase contract is signed, (2) the date requested due diligence materials been delivered to Purchaser. Due diligence items include all physical aspects of the property, regulatory requirements and environmental studies. There are two existing previous bank appraisals on hand and Environmental Study Phases 1 and 2.

Closing: Closing shall take place within 60 days after the end of the inspection period

Closing Costs: TBD

Zoning: Zoning is a Downtown Historic District located in a HUB Zone and Opportunity Zone.

Contract: Purchase Agreement to be drafted.

Highlights
  • Adjacent to the Segra Stadium in downtown Fayetteville
  • Flexible space can be built out to meet your needs
  • Located in an Opportunity Zone with associate tax credits available for redevelopment
  • Room to add a parking deck on the property
  • This property is ideal for a 1031 Exchange or Opportunity Zone Investment and Redevelopment.
Documents
Title
421_Maiden_Lane_Flyer_1019.pdf
D__AIT_Appraisal_081110_Condensed.pdf
421_Maiden_Lane__Property_Tax_Bill.pdf
421_Maiden_Lane_Survey_-_FinalSigned_20101207.pdf
Daytime_Employment_Report.pdf
Consumer_Spending_Report.pdf
Demographic_Detail_Report.pdf
Downtown_Fayetteville_parking_deck_almost_finished.pdf
Fayetteville_ballpark_lands_Big_South_tournament.pdf
Our_View_-_Downtown_development_of_unprecedented_scale.pdf
Our_View_It_really_is_the_start_of_something_big.pdf
Segra_Stadium_Opening_for_First_Event_Saturday___Ballpark_Digest.pdf
Traffic_Count_Report.pdf
1120004118_Fayetteville_North_Carolina_PCR.pdf
550372_Title_Commitment__Ace_Capital_LLC__Rev_2-22-21.pdf
G_-_Certificate_of_Insurance.pdf
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Location
Gallery