Whole Foods, in conjunction with the Center on Halsted, will be responsible for the majority of maintenance and repair obligations at the property. An affiliate of Syndicated will provide experienced asset management services for Whole Foods Halsted investors, including preparation of year-end tax information. Please see www.SyndicatedEquities.com for more information about Syndicated.
Purchase of Whole Foods Halsted & Offering of Interests
Syndicated has purchased a 100% interest in the Whole Foods Halsted and is offering interests to investors at a total price of $31,802,253 inclusive of all closing costs and fees.
Financing for the property was negotiated in the form of a non-recourse, $19,000,000 loan with a five-year term. The loan has a fixed interest rate of 5.75% and requires interest-only payments during the five year term. Please note that this loan represents a 59.74% loan-to-value, and investors will be allocated their pro rata share of the debt. The lender will also require 1031 Exchange investors to execute an industry-standard, “bad acts” limited guaranty.
Investors will be offered up to $12,802,253 of equity for purchase. For 1031 Exchange investors, a $225,000 minimum investment is required. Other investors should contact Syndicated to discuss their desired investment amount. Principals of Syndicated will make equity investments of up to 5% of the available equity in Whole Foods Halsted on a pari passu basis with all other investors.
Please note that this transaction will be structured to accommodate accredited investors only.
Return Assumptions & Projections
Syndicated projects that investors will receive a 5.46% average annual cash-on-cash return during the first five years. During the first ten years of ownership (if applicable), Syndicated projects that investors will receive a 6.42% average annual cash-on-cash return, which includes a refinance of the loan in 2013. A large percentage of the projected returns which will be sheltered by depreciation. Cash flow distributions will be made monthly.