Analysis of Investments

SL - FL NNN Industrial Portfolio I

Sandlapper Capital Investments

This offering consists of three different industrial properties with long-term triple net leases to Collis Roofing in Longwood, Lakeland, and Melbourne, FL. Collis is the 13th-largest roofing company in the United States.

Investment Highlights

  • Yr. 1 Cash-on-Cash 6.27%
  • Initial Occupancy 100.00%
  • Est. Time Horizon 10 years YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 6.64%
  • Investor Purchase Price $11,250,000
  • Total Offering Size $6,150,000

Loan Information

5.30% interest (fixed). 10-year term. 30-year am. schedule.

  • Yr. 1 DSCR 2.07
  • Loan-to-Offering 45.33%
  • Hold Period DSCR 2.28

Tenant Information & Lease Terms

Collis, which is entirely family-operated, is the largest and highest-rated roofing contractor in Florida. It is also the 13th largest in the nation as a whole. Collis was founded in 1993 and currently employs 400 individuals. 
The Melbourne lease (10/1/2015-9/30/2030) has 2% annual rent bumps, and two 5-year extension options. 
The Lakeland lease (9/1/2015-9/1/2030) has 2% annual rent bumps, and one 5-year extension option. 
The Longwood lease (10/1/2015-9/30/2030) has 2% annual rent bumps, and two 5-year extension options.

Key Positives

  • Large, highly-rated tenant

  • Long, 15-year lease terms

  • 4.2% annual rent bumps built-in

Key Risks to Consider

  • As a small, family-owned company, the tenant does not have investment-grade credit

  • There is only one tenant guaranteeing the payments across all three properties

  • 14.5% in up-front costs

  • Construction is older

Investment Sponsor Information

Sandlapper Capital Investments

According to the sponsor's website: "Sandlapper Capital Investments, LLC (Sandlapper) was created to take advantage of opportunities brought about through the dynamic and ever-changing economic landscape. Often some of the greatest investment opportunities throughout history have been missed by those who lack the agility necessary to seize them. Our experienced team has the skills, tools and resources necessary to identify, analyze and act upon timely opportunities across a vast universe of industries.

Sandlapper principals collectively have decades of experience across a broad range of industries and investment vehicles covering both the public and private markets. These industries include packaged product analysis, commercial real estate equity and debt, tax credits and shelter programs, oil and gas and related industries, equipment leasing, corporate and municipal debt as well as other debt obligations and portfolio management."

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