Case Scenario: In December 2012 King Soopers (Dillon Companies, Inc.) purchased from S3L Holdings, LLC a parcel of land (23 ac m/l) located at the NEC of Bridge Street (Highway 7) and 50th Street (Himalaya Street). The property is located in Brighton, Colorado, Adams County.
Pertinent Information:
King Soopers will self-develop the property; construct all on and off-site improvements (improvements to the land) at a cost of $4M; sell Outlots 4 -7; Lot 3 (fuel center) was transferred to the Kroger fuel division at a price of $200K; and retain ownership of Lot 2 as an attached 7,100 sf in-line retail. King Soopers negotiated and received a Tax Incremental Financing Agreement (TIF) with the City of Brighton in the amount of $1.2M. Lastly, the purchasers of Lots 4-7 will reimburse King Soopers $1.4M for site improvement costs.
Assignment: Answer the following questions:
1) What was the purchase price Dillon Companies paid for the property?
2) What was the Document Fee to record the deed?
3) Dillon Companies has to date sold each of the outlots. What was the purchase price for each Lot?
FirstBank $
Confluent Development (Starbucks) $
Brighton Covenant Group (PacDental) $
FCAC (Firestone) $
Transfer fuel pad to Kroger Fuel $
4) Pertaining to Lot 2 (strip center): assume rents at $30 psf and a Cap Rate of 7%, what is the market value of the strip center?
5) What was the total capital invested in the development?