Milford Professional Park
Milford Professional Park, located on 10 Buist Rd, Milford, PA is a Professional Business Park with 35,000 square feet of leasable space in 18 units on a total of 10.5 acres. The Park is currently 83% occupied with the majority being long-standing tenants. The closing of the property was completed September of 2018.
Background – Property Summary:
Zoning: Resort Commercial
Lot Size: 10.5 Acres
Year Built/Remodeled: 1990, New Roof 2015
Units for Lease: 18
Square Feet: 35,000
Construction: Wood
Exterior: Vinyl, Interior – Drywall
Flooring: Sheetrock Carpet and Tile
Investment Strategy
The property will maintain all current operating expenses at a minimum 67.5% occupancy level based on the current average rate per square foot lease rate. The Fund Manager anticipates 90% occupancy and a minimum annual lease rate increase of 4.0% over the next two year period. The property also offers the opportunity to build additional commercial rental units within the same property.
Investment Data
Current Occupancy: 83%
Current Annual Lease Income: $370,030.00
Current Annual Operating Expenses: $255,225.00
Current Anticipated Distribution: $114,805.00
Current Anticipated Distribution Rate: 15.20%
Projected Annual Lease Income at 90% Occupancy: $446,566.00
Projected Annual Operating Expenses: $285,225.00
Projected Annual Distribution: $161,341.00
Projected Annual Distribution Rate: 21.36%
Financial Data
Total Purchase Price at Settlement: $1,850,000.00
Total Closing Costs: $76,020.00
Total amount Financed: $1,202,500.00
Non-Recourse Loan
Total Fund Investment: $723,520.00
Total Raise for Project: $755,000.00
Excess Funding Provides for working Capital for Real Estate Taxes Due.