Four Springs TEN31 Xchange Sponsor is the "Sponsor" of the Trust. The Sponsor is focused on arranging for tax deferred Section 1031 exchanges of retail, industrial/warehouse, healthcare and other commercial properties. The Sponsor is a wholly owned subsidiary of the Four Springs Capital Trust, a real estate investment trust (REIT) that is focused on acquiring and managing a diversified portfolio of single tenant new leased properties that are elased to investment grade and other creditworthy tenants. The Sponsor's management team has significant experience in acquiring, financing and managing net lease real estate, as well as substantital experience in capital markets transactions and operations of publicly traded REITs.
Built-to-suit for the tenant in 2012, the Property is a 71,541 sf free-standing Academy Sports store located in Jonesboro, AR. The Property is 100% absolute net leased to Academy Sports, LTD through 2032 with four (4) five-year renewal options. A summary of the lease terms can be found below:
- Tenant: Academy Sports LTD., a Delaware corporation d/b/a Academy Sports + Outdoors.
- Guarantor:
- Premises: Approximately 71,541 rentable square feet of retail space
- Lease Execution Date:
- Rent Commencement Date:
- Expiration Date of Initial Term:
- Options to Renew: Four five-year renewal options; rent at lower of (i)
- Annual Rent:
- Lease Years 1-5: $625,800.00
- Lease Years 6-10: $657,090.00
- Lease Years 11-15: $689,944.50
- Lease Years 16-20: $724,441.72
- Renewal Term 1: $760,663.80
- Renewal Term 2: $798,697.00
- Renewal Term 3: $838,631.85
- Renewal Term 4: $880,563.44
- Tenant's Obligations: Pursuant to Section 5 of the Lease, the Tenant is responsible for Basic Rent, any Additional Rent, all costs, expenses and obligations of any kind and nature relating to the Leased Premises and the appurtenances thereto and the use and occupancy thereof which may arise shall be paid by Tenant. Tenant will pay directly to the proper authorities all utilities or services used or consumed ont he Leased Premises prior to or during the Term, when due.
- Pursuant to section 8 of the Lease, the Tenant will pay and discharge all Taxes prior to delinquency directly to the applicable taxing authority.
- Pursuant to section 9 of the Lease, the Tenant will at all times, keep and maintain the Leased Premises, including, without limitation, the roof, landscaping, parking areas, sidewalks, walls (interior and exterior), footings, foundations and structural and non-structural components of the Leased Premises in good condition, repair and appearance, and will promptly make all repairs and replacements
The Property is constructed generally of steel and tilt up concrete panel construction with painted concrete panel exterior walls. The interior space consists of retail space, warehouse space, a break room, an office area and men and women's restroom facilities. According to the property condition report, the Property was considered to be in good condition. There was no evidence of any apparent, major structural or mechanical distress that was noted to be prevalent.
Academy Sports + Outdoors
The building is 100% leased to and guaranteed by Academy Sports + Outdoors under a 20 year absolute triple net lease that commenced in October 2012. The lease features rental increases every five years and four (4), five year renewal options. Academy Sports + Outdoors is a sports, outdoor and lifestyle retailer with a broad assortment of hunting, fishing, and camping equipment and gear along with sports and leisure products, footwear, and apparel. The Texas-based company, which is one of the nation's largest sporting goods and outdoor retailers, operates 190 stores with over 22,000 employees.
It is currently owned by funds advised by Kohlberg Kravis and Roberts & Co. L.P. (together with its affiliates, "KKR"), a global investment firm which acquired Academy Sports + Outdoors in 2011. Prior to 2011, the company was owned by the Gochman Family and led by Chairman and CEO David Gochman. David's grandfather, Max Gochman, started Academy Sports + Outdoors over 70 years ago when he opened Academy Tire Shop in 1938 in San Antonio, Texas. Sales reached $1 billion in 2004, $2 billion in 2007, and $3 billion in 2012. Currently, sales are $4.2 billion for FYE January 31st, 2015.
Appraisal for the Property is available upon request. Please email investor-help@realtymogul.com.
| Total Capitalization | ||
| Sources of Funds | ||
| Debt | $5,460,000 | |
| Sponsor Equity | $1,169,767 | |
| 1031 Equity | $3,920,000 | |
| Total Sources of Funds | $10,549,767 | |
| Purchase Price | $9,627,692 | |
| Acquisition Closing Costs | $118,823 | |
| Acquisition Fee | $192,553 | |
| Reserves | $200,000 | |
| Selling Commissions and Fees | $410,700 | |
| Total Uses of Funds | $10,549,767 | |
The property was acquired using $5,460,000 of loan proceeds that was assumed from the Original Borrower in connection with the Trust's acquisition of the property. The right, title and interest in the property was assigned to Wells Fargo Bank as Trustee for the holders of J.P. Morgan Chase Commercial Mortgage Securities Trust 2012-LC9. The Anticipated Repayment date of the Loan is 11/6/22 and the Stated Maturity Date is 11/6/32. Through 11/6/22, the loan is interest-only and has a fixed interest rate of 4.85%. After the Anticipated Repayment Date, the interest rate is 6.85% and monthly payments of principal and interest due.
The Sponsor will make distributions directly to investors who own a beneficial interest in the DST on a pro-rata basis.
Distributions are projected to start for each investor within 60 days of the completion of that investors beneficial interest in the DST. Distributions are projected to continue on a monthly basis thereafter. These distributions are at the discretion of the Sponsor and made directly by the Sponsor, neither Realty Mogul Co. nor any of its affiliates have any control or discretion on the timing or amount of distributions.
Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Sponsor is obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.