Capital Commercial Development, “CCD” Inc., is under contract to purchase 6615 Gant from Alsay Water Development, LLC through a sale-leaseback transaction. The 14,460 SF property is 100% occupied by Alsay, which had 2004 sales in excess of $15 million.

CCI is seeking long term fixed-rate financing for the sale-leaseback transaction totaling approximately $810,000.  CCI desires a 10 year fixed-rate loan term with 20 year amortization.  This industrial property will have an average first lien loan-to-value ratio of 85%, with a market valuation of approximately $810,000 ($56 PSF) against $688,500 ($48 PSF) of debt.

The property is located at 6615 Gant in the Far Northwest submarket of Houston, Texas and includes 14,460 SF of office warehouse on 7.4678 acres. CCI is also purchasing the adjacent 5.1817 acre parcel of which 2 acres will serve as a detention pond/drainage area for Alsay and Willowbrook Industrial Park. Houston’s light industrial, manufacturing, crane served market boasts a 95% occupancy.

Alsay Water Development has a 10 year triple-net lease of approximately $80,850, with cpi rent increases every three (3) years. The sale-leaseback transaction will be at a 11 cap rate.

Capital Commercial Development Overview
Capital Commercial Development, Inc. has developed all of these industrial parks from unimproved land tracts since it’s inception in 1997. These include the recently completed 263,250 SF Bammel Industrial Park, 38,500 SF of Bammel II Industrial Park and 9.22 acres of the partially completed 37.89 acre Willowbrook Industrial Park, as well as the Cranemann Industrial build to suit which totals 50,750 SF. Based upon this knowledge in the construction process, we have developed a cost effective construction model allowing us to construct for wholesale prices and accurately project construction costs including estimating, purchasing, subcontractor negotiations, and design/construction technology.

CCD utilizes it’s expertise to create long-term value through complete project orchestration--from land purchase to development planning, from municipal negotiations to all-phase construction and expert assessment and improvement of both internal and external processes. In its over 7 years of experience listening to clients, adapting to marketplace demand, anticipating and understanding customer needs, CCD has developed valuable insights and methodologies that reduce the risks and complexity of the development process. CCD believes in the unmatched quality of our product and development experience resulting from our integrated team process throughout development. Hard copies of all third party reports are available upon request.

• Finance leased properties at $48 PSF well below current replacement cost of almost $60 PSF.

If you have any loan programs that meet our guidelines please call Doug Agarwal or Robb Buchanan to discuss this loan further.