Property Details
Stabilized Occupancy  Stabilized Income  Stabilized Cashflow 
Asset Profile
Core Plus

Veterans Affairs Outpatient Clinic – Durham, NC

Durham, NC

Medical Office Property
Greenleaf Capital Partners, LLC Atlanta, GA
Greenleaf Capital Partners, LLC
  • IRR 10%
  • Equity Multiple 1.54x
  • Hold Period 5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 7%
  • Stabilized Cash on Cash 7% in Y1
  • First Distribution Oct 2020
  • Distribution Frequency Quarterly
  • Co-Investment 3%
  • Preferred Return 7%
  • Investor Profit Share 70%
  • Asset Profile Core Plus
  • Loan-to-Value 65%
  • Current Occupancy 100%

About this Property

"Occupied by the Veteran’s Affairs (federal govt) as an outpatient clinic since 2005 with a 5 yr lease renewal in March of 2020. Tenant's long tenure and strong guarantee have helped secure 65% financing at 2.9% fixed for 5 yrs allowing the property to pay above market returns for a below market risk asset."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 1830 Hillandale Road
Square Footage 26,871 sq. ft.
Current Occupancy 100%
Market Occupancy 93%
Current Average Rent MG $26.41/sq. ft. NNN $18/sq. ft.
Average Market Rent MG $27.50/sq. ft. NNN $21/sq. ft.
Purchase Price $7,050,000
Stabilized Loan to Value 65%

 

Top Questions

All answers are provided by the sponsor, Greenleaf Capital Partners, or its representatives.

 

Why are you buying the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners: "Greenleaf sees 1830 Hillandale Road as an opportunity to enter a strong office market with a stable tenant. The building has been leased to the Veterans Administration (US government) and used as an Outpatient Clinic since 2005. In March 2020, the VA signed its next 5-year lease extension with 2% annual escalations. The VA Healthcare System is the fourth largest employer in Durham, making it the fastest growing region for VA employee count and services provided over the last 10 years. Durham’s office market has 93% occupancy with average NNN medical leases in Q1 2020 at $21/SF. Considering the VA’s modified gross lease structure, 1830 Hillandale’s rental rate is $18/SF. Due to the VA’s long tenure and Federal government backing, First National Bank in Raleigh has offered Greenleaf a 65% loan fixed for 5 years at LIBOR + 215 (~2.9%) with rate lock at closing."

 

What is your investment strategy/business plan for the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners “Given the VA’s fifteen-year occupancy history and a new five-year lease with options, Greenleaf expects this to be a stable cash flowing property for years to come. By incorporating professional management capabilities and further upgrading the property, Greenleaf will continue to operate the property in a successful manner for the tenant.”

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "As it relates to Greenleaf’s commercial office acquisition strategy, the company remains focused on the property's balance sheet and cash flow. The Government has been, what many would argue, the most credit worthy tenant pre and post COVID. Throughout the pandemic Greenleaf slightly narrowed its credit worthy standards to medical or government assets. As it relates to the VA Durham acquisition, this falls directly within Greenleaf’s credit worth standards, regardless of social/economic/healthcare environment."

 

What are the risks and how are you mitigating those risks?

Joshua A. Friedensohn, Greenleaf Capital Partner: "Greenleaf will employ proactive professional management to maintain the tenant long term, aiming to secure the maintenance of the property and future lease renewal."

 

NOTE: All answers provided by the sponsor, Greenleaf Capital Partners, or its representatives.

About this Property

"Occupied by the Veteran’s Affairs (federal govt) as an outpatient clinic since 2005 with a 5 yr lease renewal in March of 2020. Tenant's long tenure and strong guarantee have helped secure 65% financing at 2.9% fixed for 5 yrs allowing the property to pay above market returns for a below market risk asset."

- Joshua A. Friedensohn, Greenleaf Capital Partners

Address 1830 Hillandale Road
Square Footage 26,871 sq. ft.
Current Occupancy 100%
Market Occupancy 93%
Current Average Rent MG $26.41/sq. ft. NNN $18/sq. ft.
Average Market Rent MG $27.50/sq. ft. NNN $21/sq. ft.
Purchase Price $7,050,000
Stabilized Loan to Value 65%

 

Top Questions

All answers are provided by the sponsor, Greenleaf Capital Partners, or its representatives.

 

Why are you buying the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners: "Greenleaf sees 1830 Hillandale Road as an opportunity to enter a strong office market with a stable tenant. The building has been leased to the Veterans Administration (US government) and used as an Outpatient Clinic since 2005. In March 2020, the VA signed its next 5-year lease extension with 2% annual escalations. The VA Healthcare System is the fourth largest employer in Durham, making it the fastest growing region for VA employee count and services provided over the last 10 years. Durham’s office market has 93% occupancy with average NNN medical leases in Q1 2020 at $21/SF. Considering the VA’s modified gross lease structure, 1830 Hillandale’s rental rate is $18/SF. Due to the VA’s long tenure and Federal government backing, First National Bank in Raleigh has offered Greenleaf a 65% loan fixed for 5 years at LIBOR + 215 (~2.9%) with rate lock at closing."

 

What is your investment strategy/business plan for the Property?

Joshua A. Friedensohn, Greenleaf Capital Partners “Given the VA’s fifteen-year occupancy history and a new five-year lease with options, Greenleaf expects this to be a stable cash flowing property for years to come. By incorporating professional management capabilities and further upgrading the property, Greenleaf will continue to operate the property in a successful manner for the tenant.”

 

How has COVID-19 impacted your business plan?

Joshua A. Friedensohn, Greenleaf Capital Partners: "As it relates to Greenleaf’s commercial office acquisition strategy, the company remains focused on the property's balance sheet and cash flow. The Government has been, what many would argue, the most credit worthy tenant pre and post COVID. Throughout the pandemic Greenleaf slightly narrowed its credit worthy standards to medical or government assets. As it relates to the VA Durham acquisition, this falls directly within Greenleaf’s credit worth standards, regardless of social/economic/healthcare environment."

 

What are the risks and how are you mitigating those risks?

Joshua A. Friedensohn, Greenleaf Capital Partner: "Greenleaf will employ proactive professional management to maintain the tenant long term, aiming to secure the maintenance of the property and future lease renewal."

 

NOTE: All answers provided by the sponsor, Greenleaf Capital Partners, or its representatives.

Offered By

Login or Register to See More Details

Available to Registered Users

  • Get to know the sponsor behind the offering with key information
  • See an overview of their experience and success
  • Understand their investment strategies
  • Easy access to contact the sponsor directly to learn more
Assets Under
Management

Currently
$192.04MM 50+ assets
Exited
$126.94MM 20+ assets
Portfolio LTV
62.9%  
Historical
Realized Returns

Total IRR
35%  
Equity Multiple
3.15x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
12 years  
Size
21 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 5/5/2020.
Assets Under
Management

Currently
$192.04MM 50+ assets
Exited
$126.94MM 20+ assets
Portfolio LTV
62.9%  
Historical
Returns

Total IRR
35%  
Equity Multiple
3.15x  
Annual Cash
12%  
Years Of
Experience

As Principals
20+ years  
In Business
12 years  
Size
21 Staff * Dedicated investor relations
* All information is reported by Greenleaf Capital Partners, LLC as of 5/5/2020.

Financials

Login or Register to View Financials

Available to Accredited Investors:

  • Get an overview of important financial details to make a smarter investment
  • Analyze the financial pro forma to see how projected returns are distributed over time
  • Review source and uses and other important details
Offering Financial

Sponsor Diligence Report

Login or Register to View Report

Available to Accredited Investors:

  • View principal experience
  • Review background check results
  • Track record verification
Diligence Preview

Location Details

Durham, NC

Joshua A. Friedensohn, Greenleaf Capital Partner: "The Veterans Affairs Outpatient Clinic is situated on Hillandale Road, which connects directly to the world-renowned Duke University Medical Center and the Regional Veteran’s Administration Hospital. Durham’s VA Health Care System is the fourth largest employer in the county, behind Duke University, Durham Public Schools, and IBM. Durham has successfully transformed its business and economic landscape from one once based upon tobacco and textile products to what is now a modern, cutting-edge economy."

Documents

Login or Register to View Documents

Available to Accredited Investors:

  • View, download, and print the offering PPM (Private Placement Memorandum)
  • View, download, and print the detailed financial projections
  • Access all of the important documents for this offering in one place
Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

RealCrowd is free for investors. RealCrowd charges a technology access fee to the operating partner for our services. We do not charge investors any upfront fees, ongoing asset management fees or promote/carried interest in the investments.

RealCrowd offerings are open to accredited investors. RealCrowd does not recommend or advise on any offering on our platform. While we have minimum history and experience threshold for sponsors who post on our platform, if you are unable to perform your own due diligence, please consult with an attorney or financial advisor prior to making an investment.

RealCrowd is a marketplace that connects investors with qualified sponsors. We strive for transparency and impartiality. For this reason, we do not participate in any offerings on our site.

Have a Question?

Send Greenleaf Capital Partners, LLC and/or RealCrowd a message. If you have a question about this offering ask Greenleaf Capital Partners, LLC. If you have a question about the transaction process or other general inquiry, RealCrowd will be happy to help.

Please resolve the captcha and submit.

We'll get back to you soon!

In the meantime, you can create an account to view detailed information about Veterans Affairs Outpatient Clinic – Durham, NC.

In the meantime, please review the offering documents and financials.

Sign Up for our free 6 week course on the fundamentals of commercial real estate investing.