The three reasons this asset cleared the doctrine, written before the wire went out.
Grocery-anchored neighborhood center in Ellenville, NY — ~100 miles northwest of New York City. ShopRite has operated at this site since 1993 on a 40-year absolute-NNN master lease and is the only major grocer in the area.
Wakefern Food Corp. — ShopRite's parent (296+ locations) — provides a full corporate guarantee on the master lease. ShopRite is sole tenant of record and is responsible for managing and leasing all 9,805 SF of conjoining shop spaces. New ownership has zero shop-tenant management exposure.
Anchor is in the first of four 5-year options that extend the lease through 2044, with ~6.5% rent steps at each option. Site neighbors the $50M Ellenville Regional Hospital expansion and sits directly across from Joseph Y. Resnick Airport — a hospital/airport adjacency that protects daily traffic through any cycle.
7 tenants, 100% occupancy, anchored by ShopRite.
| Tenant | Type | Sq ft | % NOI | Lease end | Options |
|---|---|---|---|---|---|
| ANCHORShopRite | Necessity · Wakefern guaranty | 46,750 | 100% | 2044 | 4 × 5 yr |
| China House | F&B · local (sub) | 1,400 | — | via SR | — |
| Spin City Laundry | Service · local (sub) | 2,400 | — | via SR | — |
| State Farm Insurance | Service · national (sub) | 1,200 | — | via SR | — |
| Hollywood Cuts | Service · local (sub) | 1,200 | — | via SR | — |
| Il Paradiso | F&B · local (sub) | 2,200 | — | via SR | — |
| Immediate Medical Care | Health · regional (sub) | 1,405 | — | via SR | — |
Modeled on twelve months of trailing actuals, not stabilized pro-forma. No debt, so cash flow to equity equals NOI.
| Y1 | Y2 | Y3 | Y4 | Y5 (exit) | |
|---|---|---|---|---|---|
| Effective gross income | $953,136 | $953,136 | $953,136 | $1,001,435 | $1,001,435 |
| Operating expenses | (NNN) | (NNN) | (NNN) | (NNN) | (NNN) |
| NOI | $953,136 | $953,136 | $953,136 | $1,001,435 | $1,001,435 |
| Debt service | — | — | — | — | — |
| Cash flow to equity | $953,136 | $953,136 | $953,136 | $1,001,435 | $1,001,435 |
| Cash-on-cash | 8.0% | 8.0% | 8.0% | 8.4% | 8.4% |
All-cash close. Stoneforge co-invested 15% of equity on identical terms to the LP class.
| Senior debt | — | 0% |
| GP co-invest | $1,785,000 | 15% |
| LP equity | $10,115,000 | 85% |
| TOTAL | $11,900,000 | 100% |
| Purchase price | $11,500,000 | 96.6% |
| CapEx reserve | $180,000 | 1.5% |
| Closing & legal | $140,000 | 1.2% |
| Operating reserve | $80,000 | 0.7% |
| TOTAL | $11,900,000 | 100% |
Where the deal still pencils — and where it stops. The base case sits in the middle, not at the edge.
| NOI growth ↓ / Exit cap → | 7.50% | 8.00% | 8.25% | 8.50% | 9.00% |
|---|---|---|---|---|---|
| +1.5%/yr | 17.1% | 15.6% | 14.9% | 14.2% | 12.9% |
| +1.0%/yr | 16.0% | 14.5% | 13.8% | 13.1% | 11.7% |
| +0.5%/yr | 14.8% | 13.4% | 12.7% | 12.0% | 10.6% |
| 0.0%/yr | 13.6% | 12.2% | 11.5% | 10.8% | 9.4% |
| -0.5%/yr | 12.4% | 11.0% | 10.3% | 9.6% | 8.2% |
What actually happened — and when. Every step recorded, every document on file.
Memo, model, OA, sub docs, third-party reports, current rent roll. Updated monthly post-close.
We'll send the current portfolio brief, a sample deal memo, and an invite to the next quarterly investor call.