DG Properties I, LLC
Investment Deal Information
Date: 5/11/11
Deal Name: DG Properties I, LLC
Deal Size: $1,930,000
Total Investors: 25
Description Details: DG Properties I, LLC owns two Dollar General properties, in London and Somerset KY. These were newly completed buildings with 15 year leases.
Lease Term and Description: 15 year on each property. Dollar General has 5 additional 5 year options to renew. The London property is (NN) Net Net. DG Properties is responsible for upkeep of the outside of the building and parking lot. Somerset is (NNN) with no landlord responsibilities during the term of the lease. The deal was structured with 50% owner equity and 50% debt. The lease payments service the non-recourse debt. The debt is fully paid after 14 years. As debt is paid down over the term of the loan, it accrues to the equity owners.
Equity Investor Current Income Yield: 4.5%
Current income to equity owner investors considers debt service and expenses associated with the LLC. As debt is paid down by the lease income, equity owners accrue the principal. Total yield for equity owners is expected to be 11%+ over the 14 year term of the debt without appreciation of the underlying properties.
Lender Yield: 6.25% - fixed payment each month of principal and interest amortized over a 14 year period from closing date of 5/11/11.
Investment Manager: Donald O. Taylor, Manager of the LLC
IRA/Qualified Pension Eligible: Yes
Audit Firm/Financials: Pugh and Company, CPAs Knoxville TN www.pughcompany.com
The CPA firm conducts an annual audit, produces financials, files the LLC tax return and provides tax documents for investors.
All figures shown above are projections and not guarantees of investment return.
| Author: | Mr. T. |
| Published: | Sep 28th |
| Modified: | Nov 10th |