Ginny Bolling walks through the Land Title Building, a 30k sq ft Birmingham office with eight professional tenants at 84.5% occupancy. The deal offers an 8% preferred return and projects 250% total ROI, with cash-on-cash returns rising from 13% to 23% after two refinancings. Closing is Friday.
Questions this video answers
8% preferred return.
Approximately 250% projected return on investment.
Approximately 13% average cash-on-cash return during the holding period without refinancing.
Approximately 23% after two projected refinancings.
About 30,000–31,000 square feet (described as "30,000, almost 31,000").
Chapters
Foreign bowling. And I look like I'm in the lobby of the land title building. I was there this last week and I wanted to share the additional pictures I took and talk about what I saw and just do a little walkthrough to help you all out to see and know what was there. So share my screen. Anyway, so I'm not covering that staircase really. Anyway, so the front of the building does look this iconic. There's not greenery on the trees right now. It is an impressive building. And so I would say that I met Stuart there and we went ahead and walked through it. You can see from one angle here. It's right on that corner where people walk from the park down here, potentially there's a Wells Fargo across the street. Board of Education the other way across the street. So it is a visible, visible building. We're looking to do more landscaping in through here. It looks kind of bare right now. If you look close, it's not up to speed for what we would like. Then as far as these columns, there's some damage there. There's some damage on the retaining wall. We would need to do some work on that. There is a sprinkler system here. The lights don't seem to be working, but you can see here there is a nice little sign out front that says keep Birmingham Beautiful Commission awards. So the building was given a commission award, which is pretty cool. The signage here is very, very pronounced. And yet it needs a little touch up paint here and there because there's a black paint on the inside of that too. And so like I say, just some general maintenance. You'll see another spot here in another picture that will show you something more to, to understand on, on that. And as far as there's that iconic stairway, the summary again of just what we're looking at on this, it's an 8% preferred return with a projected 250% return on investment. And there's 13 average cash on cash return during the holding period without refinancing. And you might recall that we're projecting two refinancings which bring it up to like 23%. I think it is so good cash flow, good prospects here. It's a 30,000, almost 31,000 square foot building and four stories, really five because the basement is fully utilized by the land title company. The occupancy is 84.5%. And it's eight legal, financial and professional tenants. And by that I mean attorneys. And one of them is a tax accounting firm. And then there's a company that does emergency or accident type investigations and whatnot, but mainly lawyers and the land title company. So they're modified gross leases. So we pay the utilities as the arrangement the year built. There's discrepancies in that. 1929 or 1948. Not sure exactly and not sure that it matters. It is not on the historical registry. It is considered iconic and unusual, but it is not protected. So that's good as far as being able to pull permits to do any kind of changes and updates. But as far as the main components, we don't feel like there's anything other than that roof that is going to be needing any kind of improvement in the next five years of any substance. Major renovations by the prior owner, the current owner I should say are plumbing and electric upgrades, bathroom renovations, air conditioning, lighting, kitchens on the third and fourth floors, painting and flooring. And so let's show you a little better about what it looks like. So that's just to show you a little more there on the landscape side of it. This is what I was referring to where there's places. This is along the banister coming up and down the stairs. That's the telecom cabling that's in there. So that was interesting how they were able to hide that. This is a view across the street from the property. And that's the Department of Education parking garage. And that's something we're going to be talking to the tenants about to see if we could potentially negotiate for parking opportunities and have that as additional income too. So going to the pillars, there is some damage here and there. Nothing really major. Here's a view of the lobby that would be from the far left corner. It's quite large. As you can see right over here to the left. Not there, but a little further to the left is the land title main entrance. And it looks very nice. They're the only tenant on this floor. And let me just do this. That's the stairwell that goes down to the basement that they use. And then over here is a hallway that goes right to the elevator which is right around this wall on the other side. And then there's an exit down here behind this wall. And this is just another. I think that's like a storage closet if I recall. See if I can get ah, big enough private. Yeah, so it looks very nice and taken care of. And so the next picture will show you a different view of that. And then you can see on this picture goes over towards the. The elevator. Here's a view from the far right corner of the Same area. And so that land title building door looks really nice. Very, very pronounced. It says land title there. And so they probably had the best. Well, I don't know. The law firm upstairs has a really good finish to their place too. But let's go to the next one. That's the stairway closer up. You can see it looks to be in good condition. This is a view out the front door at the church across the street. And they have bells every hour on the hour and the half hour. It sounds good too. And then so the elevator, the control panel looks decent. The walls are really nice and they're rich gold. Just need to be cleaned, I think. And we're not crazy about the way the floor looks. So we feel like new flooring would be appropriate. There's another shot of that coming up here. So the third and fourth floors have new kitchens that are in here. And this is pretty much what they look like. There's standing room. They don't have seats over here on this table. One of the things that we've talked about is it could be converted one or both to really to offices. And as far as other ideas, I mean we're. We're going to be talking to the tenants and see if there's anything that they really would like to see done. Here's over on the right, another shot of the. I think that's the third floor. This is David Hodge and Merritt Rogers attorneys. And then Lawrence Johnson, another as well. So three attorneys in here. And so the next is the bathroom. One of the bathrooms anyway, two stalls, kind of crappy looking. Wasn't done very well. This doesn't match at all. Needs some paint but otherwise plenty big and so just needs a little attention. Same with some of the, the men's rooms too, but they aren't terrible. The rest of the floor just showing here where there's some third floor offices. Sheffield and Lampton and Lawrence and Johnson. But over here this is blank. So there has, there's plenty of room for additional tenants to have their names put here without having to go crazy as far as trying to match. You know, being matchy. Matchy can be very expensive. So here again, that's a picture leaving the elevator. I took that just to show the. That there needs to be some cleanup and paint up in the rails here. It's not bad. Then on the property here again, nice rich wood on the doors. And this is the Hodge, Merritt, Rogers and Johnson attorneys. A lot of this tile taken out because of. They were tracking down some AC leaks and making sure what is up there. There's actually another ceiling in here, too. This doesn't look terrible, but some of the rest of that space that needs to get occupied is. I'll go to that in a moment. Here's a better view of the elevator. You can see there's a texture to this wall. It does look good. All right, and then next is. This is the Erdberg firm. Jeffy and Erdberg waiting room looks good, as you can see. And then right next to them is this tax guy. I don't know if they work together, but called the tax geeks. So suite 403 and did not bother them. Since, you know, we're under contract. We haven't closed on it yet. Didn't get into each of the spaces, but definitely walk through everything quite closely. So this area isn't so bad, but this definitely needs a lot of work. This is some radiant heat here. The city of. Of Birmingham had occupied this space, and so it was not renovated for quite a long time. And so you'll see in some more pictures just. Just how that looks. But again, here's a hallway. Looks good. Tax geeks door. Okay, this is right up my alley. Having worked for CenturyLink, I've seen lots of messy wiring jobs, and so we'll need to be on them as far as cleaning this up and make sure that things are properly stowed away. You shouldn't have wire. Exposed wire like this and just kind of sloppiness. All right, so here's the stairwell. The kick plates as you go up. Think there's some paint that's needed there. And same with the railings and whatnot. So really, really a refresh here. The flooring is definitely dated. The part of this. This is the whole area that needs to be updated. So we have $100,000 allowance for doing just that. And we do expect the tenants to bear some of that cost. So did look at all the fire extinguishers. Everything's up to date. There's a ADP or ae, the paddles that are on site, they have security already installed where they're using badges to come and go. And as far as the temperature and all of that. And the building felt very good and did not get up into the roof area. That was locked up nice and tight, and that's where the chillers are. But we know those were replaced in 2011, so that's. That's not considered a problem. The pictures and the inspection and all that made it look quite. Quite good. So as far as the last slide, that is for if you're ready to jump on board with us. We're going to be closing on Friday, so we're ready to pull the trigger on that. We do still need to raise some capital, so we're going to keep that window open for a bit longer. And so if you're interested, we very much would like you to join us. If you have questions, please let me know. Thank you very much. Goodbye.
