2. 1177 Sixth Avenue, 5th Floor, New York, NY 10036 | T 212.776.4058 | F 212.881.9650 | www.anikaequities.com
Ground Sale, Leasehold Financing & Structured Capital Overview
GENERAL BENEFITS:
STRUCTURE AND TERMS:
3. 1177 Sixth Avenue, 5th Floor, New York, NY 10036 | T 212.776.4058 | F 212.881.9650 | www.anikaequities.com
Ground Sale, Leasehold Financing & Structured Capital Overview
CASE STUDY: GROUND LEASE VS. TRADITIONAL FINANCE IN A REFINANCE SCENARIO
DEAL SPECIFIC BENEFITS:
1.
2.
3.
4.
Asset Value 100,000,000$ @6.00%Cap 65,600,000$ @6.25%Cap 65,600,000$ @6.25%Cap
Cost Basis 102,215,509$ 62,215,509$ 62,215,509$
Senior Debt Financing 71,550,856$ @4.25% 47,406,848$ @4.30% 47,406,848$ @4.30%
Ground Lease 40,000,000$ 40,000,000$
MezzanineFinancing 8,542,159$ @12.00%
Equity 30,664,653$ 14,717,221$ 6,231,080$
NOI Amount Cap Rate Amount Cap Rate Amount Cap Rate
Year 1 6,000,000$ 5.87% 4,100,000$ 6.59% 4,100,000$ 6.59%
Year 6 6,955,644$ 6.80% 4,753,024$ 7.64% 4,753,024$ 7.64%
If Held Until Year 10 7,828,639$ 7.66% 5,349,570$ 8.60% 5,349,570$ 8.60%
NCF(LEVERAGED) Amount C-on-CYield Amount C-on-CYield Amount C-on-CYield
Year 1 1,776,154$ 5.79% 1,284,765$ 8.73% 245,469$ 3.94%
Year 6 2,731,798$ 8.91% 1,937,788$ 13.17% 895,645$ 14.37%
Year 6 Average 2,244,563$ 7.32% 1,604,845$ 10.90% 564,599$ 9.06%
If Held Until Year 10 Average 2,654,481$ 8.66% 1,884,955$ 12.81% 844,805$ 13.56%
Total Leverage 71,550,856$ 70.00% 87,406,848$ 85.59% 95,949,007$ 93.90%
Total Cash Flow (Holding Period) 13,467,381$ 9,629,068$ 3,387,597$
Residual Equity 46,450,330$ @6.50%Cap 30,233,762$ @6.75%Cap 21,560,893$ @6.75%Cap
IRR 13.2% 20.8% 27.9%
EquityMultiple 1.95x 2.71x 4.00x
FEESIMPLE LEASEHOLD LEASEHOLD & MEZZ
4. ANIKA EQUITIES GROUND SALE/LEASEHOLD FINANCING PROGRAM
Leverage Ownership Cash-on-Cash Returns
85% 100% 200%
Anika will assist the seller
as 85-95%
Retain Full Ownership.
1177 Sixth Avenue, 5th Floor, New York, NY 10036
www.anikaequities.com
PartnerPar
TEL 212 776-4058 x104 | MOBILE 917 701-2814917
FAX 212 881-9650 | david.eyzenberg@anikaequities.com
Acquisition AssociateAss
TEL 212 776-4058 x102 | MOBILE 917 913-9596917
FAX 212 881-9650 | yli@anikaequities.comyli@
Daniel Edrei
TEL 212 776-4058 x10 | MOBILE 917 -
FAX 212 881-9650 | d @anikaequities.com@an
Acquisition AssociateAss
TEL 212 776-4058 x10 | MOBILE -
FAX 212 881-9650 | @anikaequities.com@an
