The Trust VII Properties are similarly financed by 10 separate mortgage loans on each of the Trust VII Properties, as described in this Memorandum, collectively referred to as the Trust VII Loans, from the Lender, in the aggregate original principal amount of $40,777,337.99.
The monthly debt service payment includes payment of interest and principal, amortized over each Loan term. The maturity date for the Loans is October 10, 2038 and the Loans bear interest at a fixed rate equal to 3.416% per annum. Through financing with monthly debt service equal to monthly base rent, a high loan-to-value ratio can be achieved, while also fully amortizing the Loans within the initial lease terms. All income from the Properties will be used to pay the Loans and thus no cash will be available for distribution to Investors while the Loans are outstanding.
The Offerings are designated for accredited investors seeking to participate in a tax-deferred exchange as well as those seeking a quality, multiple-owner real estate investment. Only accredited investors may purchase interests in the Offerings. For more information, see “Summary of the Offerings” and “The Offerings” in the Memorandum.
National Drug Store Overview
Chain drugstores and pharmacies remain attractive assets to many investors. Traditional advantages of the drugstore format include credit-rated tenants, high sales productivity, long-term leases and stable growth in the pharmaceutical and personal care industry.
The following chart compares drugstore and pharmacy sales growth to total retail sales growth on an annual basis