Opportunity Zone Investment Property Priced Below Appraised Value

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.

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.

Documents: