Frankfort Plaza Investment Update
Frankfort Plaza is performing very well and has been very successful. 137% of our investment was returned within 18 months of the purchase in May 2014. In addition, Frankfort Plaza SC LLC has funded quarterly distributions totaling close to 25% since the first quarter after the purchase. We lost a tenant, but in spite of only being 80% leased, we are still receiving a 3% yield. We expect this to go back up once the vacant spaces are re-leased. Below is a more detaild update from the manager.
Our leasing agent is marketing the 2,631 square foot and 1,871 square foot vacant spaces for lease as well as the outlot for sale or build to suit. The most promising developments have been interest from Jets Pizza for the 1,871 sf end cap space and Burger King for the outlot. We will continue to pursue both groups and others that have expressed interest.
The judgement against Classical Martial Arts Academy and the owners is now being enforced for their unpaid rent. CMAA occupied the 2,631 square feet and moved to a new location after defaulting in the rent payments. We have collected $9,000 of the $25,800 settlement and will receive $700 each month until the balance is paid in full.
The cash balance as of September 30, 2018 is $33,000 and we have $102,000 held in reserves with the lender for future leasing commissions, tenant improvements and capital expenditures.