Features
- Location: The project is convenient to the 405 and 55 Freeways as well as the 73 Toll Road and just minutes to the Orange County/John Wayne Airport!
- Amenities: Restaurants, hotels, shopping, banks and other business amenities are all within walking distance of the project.
- Suite Size: Units range in size from 300 square feet to 4,200 square feet, with a 4:1000 parking ratio — a range to accommodate many types of professional users.
- Enjoy the Benefits of Owning: Fixed payments, equity growth, long term appreciation and tax benefits.
|
Lease vs. Own: SBA
Lease vs. Own: Conventional | Lease vs. Own: SBA | Approval Package 
| OWN |
|
LEASE |
| Size (Square feet) |
|
$350.00 |
1,679 |
Size (Square feet) |
|
1,679 |
| Initial Purchase Price |
|
|
$587,650 |
Lease rate per RSF |
|
$1.95 |
| Tenant Improvements |
|
$0.00 |
0 |
Monthly lease cost net of utilities |
$3,274 |
| Total Purchase Price |
|
|
$587,650 |
Monthly utilities |
$0.15 |
$252 |
| Down Payment |
|
10% |
$58,765 |
Monthly lease cost plus utilities |
$3,526 |
| Loan Amount |
|
|
$528,885 |
|
|
|
| Loan Period |
|
|
25 |
|
|
|
| Down Payment |
|
|
$58,765 |
Prepaid Rent |
|
$3,526 |
| Closing costs |
1.25% |
|
$7,346 |
Security Deposit |
|
$3,526 |
| Cost Segregation |
|
|
$0 |
|
|
|
| Total out of pocket costs |
|
|
$66,111 |
Total out of pocket costs |
|
$7,052 |
| Mortgage Payment (P&I) |
6.000% |
|
$3,408 |
Lease Payment |
$1.65 |
$2,770 |
| Property Taxes |
|
1.1% |
$548 |
Property Taxes |
|
INC |
| Utilities |
|
$0.15 |
$252 |
Utilities |
0.15 |
$252 |
| COA/CAM |
|
$0.40 |
$672 |
COA/CAM |
|
INC |
| Total Monthly Costs |
|
|
$4,880 |
Total Monthly Costs |
|
$3,022 |
| Purchase and Alloc to Bldg |
$587,650 |
70% |
|
Tax Benefits |
40% |
|
| |
39 yrs |
12 mos |
|
Depreciation Benefit |
|
n/a |
| Monthly depreciation @ |
40% |
tax bracket |
$352 |
Operating Expense Deduction |
n/a |
| Property Tax, Utilities, COA/CAM |
|
$589 |
Lease Deduction |
|
$1.108 |
| Interest Deduction (5 year avg) |
|
$1,090 |
Utilities |
|
$101 |
| Total Tax Benefits |
|
|
$2,031 |
Total Tax Benefits |
|
$1,209 |
| Net Effective Ownership Costs |
|
$2,849 |
Total Effective Monthly Lease Costs |
$1,813 |
| Net Cost Per SF to Own |
|
|
$1.70 |
Net Cost Per SF to Lease |
$1.08 |
| |
|
|
| Monthly Ownership Benefits (Estimated) |
|
|
|
| Tax Benefits |
40% |
|
|
|
| Incr Cost Segregation Deprec Benefits (5yr) |
264% |
$928 |
|
| Property Tax, Utilities, COA/CAM |
|
$589 |
|
| Interest Deduction (5 year avg) |
|
$1,090 |
|
| Total Tax Benefits |
|
|
$2,607 |
|
|
|
| Net Effective Ownership Costs with Cost Segregation |
$2,272 |
|
|
|
| Net Cost Per SF to Own |
|
|
$1.35 |
|
| |
| Rate of Assumed Appreciation per Year |
|
3.0% |
|
| Appreciated Value Year 1 |
$605,280 |
|
| Appreciated Value Year 2 |
$623,438 |
|
| Appreciated Value Year 3 |
$642,141 |
|
|
|
| Appreciated Value Year 4 |
$661,247 |
|
|
|
| Appreciated Value Year 5 |
$681,247 |
|
|
|
| Appreciated Value Year 6 |
$701,685 |
|
|
|
| Appreciated Value Year 7 |
$722,735 |
|
|
|
| Appreciated Value Year 8 |
$744,417 |
|
|
|
| Appreciated Value Year 9 |
$766,750 |
|
|
|
| Appreciated Value Year 10 |
$789,752 |
|
|
|
| Total Appreciation |
|
|
$202,102 |
|
|
|
| Less Down Payment |
|
|
-$58,765 |
|
|
|
| Net Appreciation |
|
|
$143,337 |
|
|
|
| Monthly Appreciation |
|
|
$1,194 |
|
|
|
| Monthly Appreciation per RSF |
|
$0.71 |
|
|
|
|