Grants Pass · Retail / net lease · Illustrative file
Rogue Valley Flex
12,400 square feet, single tenant, triple net, 6.2 years remaining.
Elevation plate. Placeholder artwork — photography for this file is not published. The brand rules require the whole building, elevation-on, verticals corrected, and a drawing cannot make a claim about condition that a photograph would.
The building
A single-tenant flex building on a triple-net lease with 6.2 years remaining and two five-year options. The tenant carries taxes, insurance and common-area maintenance, so the landlord's operating line is short and the yield reads high next to the multifamily files.
That spread is not free. On a net lease the value is the lease — term, credit and who actually pays for the roof — and the going-in cap rate tells you almost nothing without them.
- Market
- Grants Pass
- Asset type
- Retail / net lease
- Units
- 1
- Built
- 2004
- Rentable area
- 12,400 sq ft
- Price per unit
- $1,395,000
Headline, in place
| Net operating income | NOI | Cap | DSCR | Cash-on-cash |
|---|---|---|---|---|
| -10% | $87,966 | 6.31% | 1.14x | 1.83% |
| -5% | $92,853 | 6.66% | 1.20x | 2.66% |
| In place | $97,740 | 7.01% | 1.26x | 3.49% |
| +5% | $102,627 | 7.36% | 1.33x | 4.33% |
| +10% | $107,514 | 7.71% | 1.39x | 5.16% |
The loan constant of 9.23% sits above the going-in cap rate of 7.01%, so leverage here is negative: each additional dollar of debt lowers both the cash-on-cash return and the coverage ratio.
At a 1.25x coverage floor this building supports a loan of about $846,995 — 61% of the asking price.
Rent roll
In-place rents are what the rent roll says. Market rents are an estimate and are labelled as such wherever they are used.
| Unit | Mix | Sq ft | In place | Market (pro forma) |
|---|---|---|---|---|
| Whole building | Flex / warehouse | 12,400 | $8,500/mo | $8,500/mo |
| Total | 1 units | 12,400 | $8,500/mo | $8,500/mo |
Trailing twelve to net operating income
Operating expenses as reported, with management restated. Capital reserves and debt service sit below net operating income, not inside it — that is the definition this site publishes.
| Line | Annual | Note |
|---|---|---|
| Gross potential income | $102,000 | 1 units at in-place rent, twelve months |
| Vacancy and credit loss | ($0) | 0.0% of gross potential income |
| Effective gross income | $102,000 | The money that arrives |
| Operating expenses | ||
| Administrative and legal | ($1,200) | |
| Management | ($3,060) | Restated to 3.0% of effective gross income |
| Total operating expenses | ($4,260) | 4.2% of effective gross income |
| Net operating income, in place | $97,740 | Definition |
| Below the line | ||
| Capital reserves | ($1,860) | Structural reserve at $0.15 per square foot per year. |
| Annual debt service | ($77,269) | 60% loan to value, 6.90%, 20-year amortisation. Indicative, not a quote. |
| Cash flow after debt service and reserves | $18,611 |
No vacancy or credit loss is deducted in place: the building is occupied under a lease with term remaining. That is an in-place reading, not a forecast — a single-tenant building is 0% or 100%, and the sensitivity below prices the downside directly.
Taxes, insurance and common-area maintenance are reimbursed by the tenant under the lease and do not appear as landlord expense.
Pro forma
The lease sets rent through its term; there is no pro forma rent to state. What matters is the renewal, and we do not publish a renewal assumption as though it were income.
Assumptions
- Rent is contract rent under the lease in place, not asking rent.
- Triple-net structure: taxes, insurance and common-area maintenance are reimbursed by the tenant.
- Management at 3% of effective gross income.
- Structural reserve of $0.15 per square foot per year sits below net operating income.
- Debt shown is indicative, not a quote: 60% loan to value, 6.90%, 20-year amortisation.
Go or no-go
Conditional
The yield is real while the lease is. We would not write on this without the tenant's financials and the estoppel, and neither would a lender.
Cash position at close
- Price
- $1,395,000
- Loan
- $837,000
- Closing costs
- $27,900
- Day-one capital
- $0
- Total cash in
- $585,900
Contact
Contact Ryan McMillan
Send us the building. You get a written analysis whether or not you transact, and whether or not you transact with us.
Ryan McMillan, Broker, OR #201262100. Brokered by eXp Realty. The first substantive conversation about a specific property is a licensed act and belongs to the broker.