Operating projections outline a Year 1 cash yield of 5.3% and an average full-term income rate of 5.67%. Master tenant income is reported at $2,025, supported by an established master tenant reserve of $500,000. Operational parameters are based on a syndicated cap rate of 5.79%.
Ongoing fee rates
Asset Mgmt Fee (annual)
$120
Master Tenant Income
$2,025
Refinancing Fee
A
of fee equal to 1.0% of the principal amount of the new loan
Trust Administration
An
annual management fee equal to $120, payable from the Reserve Account, in an amount equal to $10 per month
Strengths
- Projected full-term average distribution of 5.67%
- Initial cash distribution yield of 5.3%
Concerns
- Dependence on master lease structure and master tenant income of $2,025
- Reserves limited to $500,000