- Bill Herr
Cantera Lakes 100% leased
Cantera Lakes, a Series 2 Investment, is 100% leased and performing well. In May of 2016 Elemental Center’s rent abatement expired and they began paying rent for their entire space. This allowed for the repayment of the $45,000 one- year loan extended to Cantera by one of the Infinite Alpha funds. . In addition, there were approximately $16,000 in unanticipated costs incurred in order to obtain the appropriate permits from both the Warrenville Fire Department and the Village of Warrenville.
As a result of the extended time taken to install the devices that were required, Elemental Center experienced difficulty with their medical licensing and they were lagging in rental payments. Elemental should be current within the next few months and the $20,000 acquisition costs will be reimbursed. The building should then be on good footing operationally and the real estate manager will begin to make distributions to investors. The Elemental Center lease is personally guaranteed by Dr. Adeoye.
Dr. Adeoye requested the manager's assistance with a loan so he can purchase the building, allowing the manager to accomplish the goal of returning the original investment, the preferred return and a profit. As important, the loan will have a significant impact at reducing Elemental Center’s occupancy costs, and the prospect of increasing cash flow of the building when the FCI lease matures and the current annual rent of $12.50 per square foot moves to market which is $18.50. In the event a sale doesn’t occur, the real estate manager will look to refinance at a fixed rate loan that will reduce interest expense and provide healthy cash flows.
Cantera Lakes Investment Overview