8001 W McNab Rd, Tamarac, FL 33321

This property is a steal at $4,150,000 or about $126/SF of adjusted building area of 32,856 SF, while comparable sales indicate $150/SF to $185/SF in Broward County. The property reflects a Potential Gross Income Multiplier of only 9.49 times the current rent, with a realistic going-in capitalization rate of 6.6% in Year One, at current contract rents. Upon expiration of the lease for the lowest paying (lease was negotiated in January 2007) and largest tenant (5,405 SF), the property reflects a capitalization rate of 7.9% in Year 4, and 8.13%, 8.37%, 8.62%, 8.88%, 9.14% and 9.42% in Years 5 through 10; with an Equity Capitalization Rate (cash on cash) of 9.56% in Year 4, and 10.33%, 11.12%, 11.96%, 12.82%, 13.7% and 14.61% in Years 5 through 10 (an average of 10.1% annually for the 10 year investment period). The property produces an Internal Rate of Return of 15%, with a significant upside potential when the largest space is available for owner-occupancy, or leased at market rents (suitable for a medical group, clinic, education, etc.).
Location
Northwest corner of West McNab Road and NW 80 Avenue, extending from NW 70 Street to West McNab Road. Located just west of North University Road.

Highlights

• Produces an Internal Rate of Return of 15%, with a significant upside potential
• Potential Gross Income Multiplier of only 9.49 times the current rent
• Going-in capitalization rate of 6.6% in Year One (7.9% in Year 4)
• Cap rates of 7.9%, 8.13%, 8.37%, 8.62%, 8.88%, 9.14% and 9.42% in Years 4 through 10
• Equity Capitalization Rate (cash on cash) of 9.56%, 10.33%, 11.12%, 11.96%, 12.82%, 13.7% and 14.61% in Years 4 through 10
• Average Equity Cap Rate of 10.1% annually for the 10 year investment period
• 99.5% Occupied, with an upside for medical use due to high parking ratio