PURCHASE PRICE $4,024,260
LOAN-TO-VALUE RATIO 81.00%
This new CVS Pharmacy Store is strategically located directly between the Wal-Mart Super Center and the Walnut Crossing Shopping Center in the city of Dalton, GA.
The property is considered a “zero-coupon” real estate ownership opportunity as there is an assumable, non-recourse loan already in place and, by design, “zero” cash flow will be produced.
This new CVS Pharmacy Store is strategically located directly between the Wal-Mart Super Center and the Walnut Crossing Shopping Center in the city of Dalton, GA. The property is considered a “zero-coupon” real estate ownership opportunity as there is an assumable, non-recourse loan already in place and, by design, “zero” cash flow will be produced. Instead, the lease payments go directly to repaying the loan. At the end of the initial 25-year lease term you own the property free and clear.
- TENANT: CVS Pharmacy
- LOCATION: 2501 East Walnut Ave., Dalton, GA
- PROPERTY TYPE: Single-tenant, stand-alone, retail
- PURCHASE PRICE: $4,024,260
- YEAR BUILT 2010
- LOAN-TO-VALUE RATIO 81.00%
- LOAN ASSUMPTION: $100,000 investor will assume
- EXAMPLE: $426,315.79 in debt
- LEASE GUARANTOR: CVS Caremark Corporation
- LEASE TERM 25 years
- RENEWAL OPTIONS Ten (5) year options
- LEASE TYPE Absolute Net Lease (NNN)*
SELF - AMORTIZING FINANCING
There is an existing mortgage loan on the property from Wells Fargo Bank Northwest, with an approximate outstanding principal amount of $3,259,650. The monthly debt service under the loan is equal to the monthly base rent under the lease and CVS pays the monthly base rent directly to the lender. By structuring the loan with a monthly debt service payment equal to the monthly base rent, a high loan-to-value ratio can be achieved, while also fully amortizing the loan within the initial term of the lease. Although no cash flow is available, investors do earn a yield on their investment due to the principal repayment of the loan.
DALTON , GEORGIA
Dalton is the county seat of Whitfield County and second largest city in northwest Georgia. The Dalton, Georgia metropolitan area has a population of over 135,000. Dalton is often referred to as the “Carpet Capital of the World”, as it is home to more than 150 carpet plants, which employ more than 30,000 people.
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