Stable data center since the space was built in 1999. The tenancy has outlasted 3 different entities, 2 different bankruptcies
but has always kept this location and is staying through 2028.
The existing loan (initially 1.75MM, currently 1.45MM at 7.125% with 20-year am) is assumable.
The term is 10+10 i.e. the rate is reset on 7/10/19 or it can be prepaid at PAR.
To avoid the penalty, it makes more sense to wait until 7/10/19 rather than prepay the loan.
The annual Net Operating Income (NOI) is 291k through 12/31/16.
Every year thru 1/1/28, the base rent goes up 3%; that’s about 10k/year on average in the early years.