The three reasons this asset cleared the doctrine, written before the wire went out.
ALDI-anchored center on Route 16 in Waynesboro, PA (17,714 VPD) — the primary east-west retail spine serving a 157,947-resident trade area with $100,678 average household income. ~1.5 hrs to Hagerstown, Baltimore, and DC via I-81.
National-credit roster covering 75.7% of total income — ALDI (10-yr new lease + 4×5-yr options), Tractor Supply (10-yr renewal + 4×5-yr options), Dollar Tree (lease through 2035), and Beall's Outlet (through 2032). WALT of 9.18 years on the anchor cohort.
Underwritten 7.10% NOI CAGR over 5 years with 54,177 SF of new and renewed leases executed in 2024 ahead of close. Value-add upside on 9,506 SF of available space and 75,435 SF of below-market in-place rents — both upside, not in the base case.
7 tenants, 92% occupancy, anchored by ALDI.
| Tenant | Type | Sq ft | % NOI | Lease end | Options |
|---|---|---|---|---|---|
| ANCHORALDI | Necessity · discount grocer (2,464 US locations) | 21,010 | 32.8% | 2034 | 4 × 5 yr |
| Tractor Supply Co. | Specialty · rural lifestyle (S&P BBB) | 31,409 | 19.9% | 2034 | 4 × 5 yr |
| Beall's Outlet | Specialty · off-price apparel | 28,800 | 8.0% | 2032 | 3 × 5 yr + 1 × 4 yr |
| Dollar Tree | Necessity · national (Fortune 200) | 10,000 | 8.9% | 2035 | 2 × 5 yr |
| Rite Aid Pharmacy | Health · national | 9,800 | 6.0% | 2026 | 2 × 5 yr |
| Main Street Diner | F&B · local full-service | 5,226 | 3.0% | 2028 | 2 × 5 yr |
| Hardee's (CKE) | F&B · national QSR | 2,200 | 4.0% | 2027 | 1 × 5 yr |
| Vacancy | Available in-line | 9,506 | — | — | — |
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 | $728,000 | $780,000 | $835,000 | $894,000 | $957,000 |
| Operating expenses | ($79,000) | ($84,000) | ($90,000) | ($96,000) | ($102,000) |
| NOI | $649,000 | $696,000 | $745,000 | $798,000 | $855,000 |
| Debt service | — | — | — | — | — |
| Cash flow to equity | $649,000 | $696,000 | $745,000 | $798,000 | $855,000 |
| Cash-on-cash | 8.0% | 8.6% | 9.2% | 9.9% | 10.6% |
All-cash close. Stoneforge co-invested 10% of equity on identical terms to the LP class.
| Senior debt | — | 0% |
| GP co-invest | $810,000 | 10% |
| LP equity | $7,290,000 | 90% |
| TOTAL | $8,100,000 | 100% |
| Purchase price | $7,750,000 | 95.7% |
| CapEx + lease-up | $210,000 | 2.6% |
| Closing & legal | $95,000 | 1.2% |
| Operating reserve | $45,000 | 0.5% |
| TOTAL | $8,100,000 | 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% |
|---|---|---|---|---|---|
| +9.0%/yr | 27.1% | 25.4% | 24.6% | 23.8% | 22.2% |
| +8.0%/yr | 26.0% | 24.3% | 23.5% | 22.6% | 21.0% |
| +7.1%/yr | 24.8% | 23.1% | 22.3% | 21.4% | 19.8% |
| +6.0%/yr | 23.6% | 21.9% | 21.0% | 20.2% | 18.6% |
| +5.0%/yr | 22.3% | 20.6% | 19.8% | 18.9% | 17.3% |
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.