Financing

Obtaining Financing:

With the credit quality of the tenant, Chick-Fil-A, and the Chick-Fil-A corporate guarantee backing the signed ground lease, we expect to receive a low rate on our commercial loan.

Upon visiting with a Wells Fargo commercial lending agent, and researching commercial retail rates in the Houston area, we believe we will be able to finance the purchase of the ground lease with the following loan terms:

Loan Terms and Structure
Terms		Notes
Loan-to-Value	70%	Approximately $1.24 MM
*Interest Rate	4.875%	5% less 125bp discount
Discount Points	1 discount pt.	Reduced interest rate by 125 bp
Amortization Period	30 years	2012-2042
Lender Fees	2%	% of Loan Amount
*For simplicity, interest rate assumed fixed over investment life

Equity Portion:

The remaining amount of the purchase, approximately $533,000 will be equity capital with a required rate of return of 6%.

Sources:

Wells Fargo College Station Branch
Commercial Rates