The three reasons this asset cleared the doctrine, before a dollar is committed.
A 44,607 SF, nine-suite neighborhood center on Lankford Highway (U.S. Route 13), the only north-south corridor on Virginia's Eastern Shore between the Chesapeake Bay Bridge-Tunnel and Maryland. Food Lion (Ahold Delhaize, 1,100+ stores) has anchored the center since it was built in 2002 and occupies 33,807 SF, 76% of the building, on a lease running to October 2032. Virginia ABC, the Commonwealth's own spirits retailer, and NASA Federal Credit Union sit beside it: with the anchor they are roughly 85% of base rent. The trade area is supply-constrained by geography and by sewer; the center brings its own permitted wastewater treatment plant, which is why a grocer can operate here at all.
Acquired debt free at a 13.3% going-in cap rate on income with net-lease recoveries billed, from a seller we have a direct relationship with and no broker in between. No debt service, no refinancing risk, no lender covenants: every dollar of net operating income after reserves and administration is investor cash flow. Year-one cash yield is projected at 9.5%, rising to 11% by year seven as rents escalate.
The value-add is lease administration, not speculation. The leases are triple net, and the common-area, insurance and tax recoveries they provide for are not all being billed today. Instituting proper CAM reconciliation in the first year moves in-place NOI from roughly $274,000 to roughly $538,000. The 2027 small-bay expirations (Virginia ABC, NASA FCU, the laundromat) are addressed early from a position of committed local ownership. Exit is modeled in year seven at a 10.5% cap rate, deliberately above the 8.8% the asset was marketed at in 2025.
9 tenants, 100% occupancy, anchored by Food Lion · Virginia ABC · NASA FCU.
| Tenant | Type | Sq ft | % NOI | Lease end | Options |
|---|---|---|---|---|---|
| Food Lion | Grocery · national (Ahold Delhaize) | 33,807 | 71% | 2032 | NNN · anchor since 2002 |
| Virginia ABC (store #162) | Retail · Commonwealth of Virginia | 2,400 | 7% | 2027 | NNN · renewal in plan |
| NASA Federal Credit Union | Financial · federal credit union | 2,100 | 7% | 2027 | NNN · renewal in plan |
| Great Wall Chinese Restaurant | F&B · local | 1,500 | 4% | 2032 | NNN |
| Integration Engineering | Office · regional | 1,200 | 3% | 2025 | holdover · renewal in diligence |
| Laundromat | Service · local | 1,200 | 3% | 2027 | NNN |
| Polished Nails and Spa | Service · local | 1,200 | 3% | 2026 | renewal in diligence |
| Syos LLC | Retail · local | 1,200 | 2% | 2025 | holdover · in diligence |
| UPS (drop box, land) | Logistics · national | — | <1% | MTM | land license |
Modeled on verified in-place income, not stabilized pro-forma. Cash flow to equity is net of seller-carried debt service.
| Y1 | Y2 | Y3 | Y4 | Y5 (exit) | |
|---|---|---|---|---|---|
| Income | |||||
| Base rental income (collected, 2.5% growth) | $602,399 | $617,459 | $632,895 | $648,718 | $664,936 |
| Recoveries — CAM, insurance & taxes (billed) | $264,066 | $270,668 | $277,434 | $284,370 | $291,479 |
| Effective gross income | $866,465 | $888,127 | $910,329 | $933,088 | $956,415 |
| Operating expenses (2.5% growth) | |||||
| Wastewater plant — operations & compliance | ($127,554) | ($130,743) | ($134,011) | ($137,362) | ($140,796) |
| Common area & grounds | ($68,720) | ($70,438) | ($72,199) | ($74,004) | ($75,854) |
| Insurance | ($60,807) | ($62,327) | ($63,885) | ($65,482) | ($67,119) |
| Real estate taxes | ($22,800) | ($23,370) | ($23,954) | ($24,553) | ($25,167) |
| Property management | ($25,200) | ($25,830) | ($26,476) | ($27,138) | ($27,816) |
| Repairs, legal & administration | ($23,262) | ($23,844) | ($24,440) | ($25,051) | ($25,677) |
| Total operating expenses | ($328,343) | ($336,552) | ($344,965) | ($353,589) | ($362,429) |
| Net operating income | $538,122 | $551,575 | $565,364 | $579,499 | $593,986 |
| Below the line | |||||
| Debt service | $0 | $0 | $0 | $0 | $0 |
| Replacement & leasing reserve (6% of EGI) | ($46,125) | ($47,278) | ($48,460) | ($49,671) | ($50,913) |
| Asset management fee (1% of equity) | ($46,064) | ($46,064) | ($46,064) | ($46,064) | ($46,064) |
| Entity administration | ($10,000) | ($10,250) | ($10,506) | ($10,769) | ($11,038) |
| Cash flow to equity | $435,933 | $447,983 | $460,334 | $472,995 | $485,971 |
| Cash-on-cash yield (investors) | 9.5% | 9.7% | 10.0% | 10.3% | 10.5% |
| NOI margin / DSCR | 62.1% · no debt | 62.1% · no debt | 62.1% · no debt | 62.1% · no debt | 62.1% · no debt |
The full financial model, rent roll, and third-party reports are available to verified accredited investors.
Financed directly by the seller, no bank, no floating rate. Stoneforge co-invests 5% of the equity on identical terms to investors.
| LP equity (99% of equity) | $4,560,360 | 99.0% |
| GP co-invest (1% of equity) | $46,064 | 1.0% |
| Debt | $0 | 0% |
| TOTAL CAPITALIZATION | $4,606,424 | 100% |
| Property acquisition | $4,056,686 | 88.1% |
| Closing, diligence, offering & reserve | $189,417 | 4.1% |
| Sponsor fees (acquisition & structuring) | $360,322 | 7.8% |
| TOTAL | $4,606,424 | 100% |
How the projected return holds up if the market moves — every cell is the IRR at that rent growth and exit price.
| NOI growth ↓ / Exit cap → | 8.50% | 9.50% | 10.47% | 11.50% | 12.50% |
|---|---|---|---|---|---|
| +2.5%/yr | 15.3% | 14.0% | 12.9% | 11.8% | 10.9% |
| +2.0%/yr | 14.8% | 13.4% | 12.3% | 11.3% | 10.4% |
| +1.5%/yr | 14.2% | 12.9% | 11.8% | 10.8% | 9.9% |
| +1.0%/yr | 13.7% | 12.4% | 11.3% | 10.3% | 9.4% |
| +0.5%/yr | 13.2% | 11.9% | 10.8% | 9.8% | 8.9% |
Where the deal stands today, and the path to close. Every step recorded, every document on file.
Memo, model, OA, sub docs, third-party reports, current rent roll. Updated monthly post-close.
We'll send the current portfolio brief, a sample deal memo, and an invite to the next quarterly investor call.
