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 700 square feet to 5,200 square feet, with a 4:1000 parking ratio — a range to accommodate many types of professional users.
- Imagine owning… a commercial property in Newport Beach for under $70,000!
|
Lease vs. Own: Conventional
Lease vs. Own: Conventional | Lease vs. Own: SBA | Approval Package 
| OWN |
|
LEASE |
| Size (Square feet) |
|
$210.00 |
1,500 |
|
Size (Square feet) |
|
1,500 |
| Initial Purchase Price |
|
|
$315,000 |
|
Lease rate per RSF |
|
$1.75 |
| Tenant Improvements |
|
$40.00 |
60,000 |
|
Monthly lease cost net of utilities |
$2,625 |
| Total Purchase Price |
|
|
$375,000 |
|
Monthly utilities |
$0.15 |
$225 |
| Down Payment |
|
30% |
$112,500 |
|
Monthly lease cost plus utilities |
$2,850 |
| Loan Amount |
|
|
$262,500 |
|
|
|
|
| Loan Period |
|
|
25 |
|
|
|
|
| Down Payment |
|
|
$112,500 |
|
Prepaid Rent |
|
$2,475 |
| Closing costs |
1.25% |
|
$4,688 |
|
Security Deposit |
|
$2,475 |
| Cost Segregation |
|
|
$0 |
|
|
|
|
| Total out of pocket costs |
|
|
$117,188 |
|
Total out of pocket costs |
|
$4,950 |
| Mortgage Payment (P&I) |
6.000% |
|
$1,691 |
|
Lease Payment |
$1.65 |
$2,475 |
| Property Taxes |
|
1.1% |
$350 |
|
Property Taxes |
|
INC |
| Utilities |
|
$0.15 |
$225 |
|
Utilities |
0.15 |
$225 |
| COA/CAM |
|
$0.40 |
$600 |
|
COA/CAM |
|
INC |
| Total Monthly Costs |
|
|
$2,866 |
|
Total Monthly Costs |
|
$2,700 |
| Purchase and Alloc to Bldg |
$375,000 |
90% |
|
|
Tax Benefits |
40% |
|
| |
39 yrs |
12 mos |
|
|
Depreciation Benefit |
|
n/a |
| Monthly depreciation @ |
40% |
tax bracket |
$288 |
|
Operating Expense Deduction |
$825 |
| Property Tax, Utilities, COA/CAM |
|
$470 |
|
Lease Deduction |
|
$990 |
| Interest Deduction (5 year avg) |
|
$541 |
|
Utilities |
|
$90 |
| Total Tax Benefits |
|
|
$1,300 |
|
Total Tax Benefits |
|
$1,080 |
| Net Effective Ownership Costs |
|
$1,567 |
|
Total Effective Monthly Lease Costs |
$1,620 |
| Net Cost Per SF to Own |
|
|
$1.04 |
|
Net Cost Per SF to Lease |
|
$1.08 |
| |
|
|
|
| Monthly Ownership Benefits (Estimated) |
|
|
|
|
| Tax Benefits |
40% |
|
|
|
|
| Incr Cost Segregation Deprec Benefits (5yr) |
264% |
$762 |
|
|
| Property Tax, Utilities, COA/CAM |
|
$470 |
|
|
| Interest Deduction (5 year avg) |
|
$541 |
|
|
| Total Tax Benefits |
|
|
$1,773 |
|
|
|
|
| Net Effective Ownership Costs with Cost Segregation |
$1,094 |
|
|
|
|
| Net Cost Per SF to Own |
|
|
$0.73 |
|
|
| |
|
| Rate of Assumed Appreciation per Year |
|
3.0% |
|
|
| Appreciated Value Year 1 |
|
|
$386,250 |
|
|
| Appreciated Value Year 2 |
|
|
$397,838 |
|
|
| Appreciated Value Year 3 |
|
|
$409,773 |
|
|
|
|
| Appreciated Value Year 4 |
|
|
$422,066 |
|
|
|
|
| Appreciated Value Year 5 |
|
|
$434,728 |
|
|
|
|
| Appreciated Value Year 6 |
|
|
$447,770 |
|
|
|
|
| Appreciated Value Year 7 |
|
|
$461,203 |
|
|
|
|
| Appreciated Value Year 8 |
|
|
$475,039 |
|
|
|
|
| Appreciated Value Year 9 |
|
|
$489,290 |
|
|
|
|
| Appreciated Value Year 10 |
|
|
$503,969 |
|
|
|
|
| Total Appreciation |
|
|
$128,969 |
|
|
|
|
| Less Down Payment |
|
|
-$112,500 |
|
|
|
|
| Net Appreciation |
|
|
$16,469 |
|
|
|
|
| Monthly Appreciation |
|
|
$137 |
|
|
|
|
| Monthly Appreciation per RSF |
|
$0.09 |
|
|
|
|
|