Success Story: California Department of Motor Vehicles

Objective: To secure construction funds for the build-out of 17,517 square feet of office building to be leased by the California Department of Vehicles. Our client was awarded an opportunity to design, develop, and construct an office building for the California Department of Motor Vehicles

Once the building was completed, the lessor would LEASE BACK the building to the Department of Motor Vehicles (lessee) for thirty years. Annualized rents are $789,384 (or 65,782 monthly rents). Construction Costs totaled $6,257,706 Pacific Bay Financial Corporation secured financing of $5,151,341 or 82% loan to cost.

Lease Agreement: April 1, 2010 to March 31, 2020
Square Feet of Building: 17,517
Pre-Leased (monthly rents): $65,782 (Gross lease, page 6 of lease agreement) 
Rent per Sq Ft: $3.755 
Annualized Rents: $789,384 
Operating Expense: $124,000 (proforma) 
Cash Available for Debt Service: $665,384
Capitalization: 8%
Market Valuation: $8,317,300