Interactive Underwriting Tool · Accredited Investors Only

Live Deal Modeler

Model the portfolio in real time. Adjust leverage, pricing, vacancy, and hold period; select any subset of the 21 properties; and set each asset's depreciation treatment. All returns, the capital stack, the distribution waterfall, and the after-tax analysis recompute instantly.

For discussion only — not an offer to sell securities. All figures are projections, not guarantees. Tax outputs are estimates; confirm with your own tax advisor.

Assumptions

21 / 21

Capital & Pricing

Entry Cap Rate i7.75%

Exit Cap Rate i7.75%

Base case for institutional review assumes modest cap expansion (e.g. exit 8.75%).

Loan-to-Value (LTV) 60%

≈60% — recourse: pro-rata personal guarantee required.

Interest Rate 6.35%

Amortization i25 yr

Debt Structure

Operations & Hold

Vacancy / Credit Loss 0%

NNN income is binary per tenant; use as a portfolio credit-loss stress.

Hold Period 8 yr

Rent Bump Captured at Exit +21%

Default: two contractual 10%/5yr renewals = ×1.10 × ×1.10 = +21% total. Set to +10% for single-bump exit.

Depreciation & Tax

Bonus Depreciation Rate

100% bonus is current law under OBBBA (property acquired after 1/19/2025). Toggle to 0% to model electing out of bonus.

Federal Tax Rate (shield basis) 37%

Year-1 depreciation shield is computed at the 37% federal rate only. Michigan does not conform to bonus depreciation, so the bonus paper loss produces no Michigan tax benefit.

1031 Exchange at Exit

At disposition the partnership votes; a supermajority decides whether to roll proceeds into replacement real estate via a 1031 exchange (deferring tax) or distribute proceeds and bear the tax. Toggle to model either outcome.

Land Allocation (non-depreciable) i15%

Fees & Costs

Acquisition Fee 1.5%

Acquisition Closing / Title 0.5%

Asset Mgmt Fee (% of NOI) 1.0%

Disposition Fee i5.0%

Capital Reserve Holdback i6 mo

Debt Service Reserve i3 mo

MI Transfer Tax at Disposition i0.86%

GP Co-Invest (full portfolio) i$1.50M

Min LP Investment $100K

Your Investment — Personalized Returns

—Ownership of Fund

Portfolio Selection

$2.58M rent

	#	City	Brand	Rent	SqFt	Cov FY24→25	Depreciation Treatment	Map

Default: All RMFO. All 21 properties are gas station / C-store assets. RMFO (IRC §168(e)(3)(E)(iii)) reclassifies the entire building as 15-yr property, making 100% of depreciable basis eligible for bonus depreciation — vs Cost Seg where only 60% of basis qualifies. At the base case (60% LTV, 37% federal rate), RMFO treatment yields a Year-1 tax shield of ≈65–70% of invested capital; push LTV to 70% and shield approaches 100%. Toggle "All Cost Seg" for the conservative scenario. ⚠ = Next Door Store format (higher merchandise mix); confirm >50% fuel revenue with your cost segregation engineer before asserting RMFO.

Sources & Uses

Year-1 Cash Flow

Exit & Returns

Year 3

Distribution Waterfall

Cost Segregation & After-Tax

100% OBBBA

LP IRR Sensitivity

Exit Cap × Hold

Pre-tax LP IRR. Rows = exit cap rate; columns = hold period (years). Current scenario highlighted.

Methodology & disclosures. This tool is for discussion with verified accredited investors only and is not an offer to sell securities; any offer is made solely via the confidential Private Placement Memorandum. All outputs are projections based on user inputs and stated assumptions and are not guaranteed. Purchase price is derived as in-place annual base rent ÷ entry cap rate. Depreciation: 20% land (adjustable); of the 80% depreciable basis, 35% is 5-yr personal property, 25% is 15-yr land improvements, 40% is 39-yr building. Cost-Seg treatment applies bonus to the 5- and 15-yr classes; RMFO treatment applies bonus to the entire depreciable basis (15-yr building class). Year-1 MACRS half-year/mid-month conventions approximated. Default hold: 8 years, capturing two contractual 10%/5-yr rent escalations (exit rent = base × 1.21). Capital reserve: an adjustable number of months (default 6) of fund CFAD is held as a capital reserve account; LP investor distributions commence the following month of Year 1. Set the Capital Reserve Holdback slider to 0 for no holdback. The capital reserve is returned to investors at disposition and is included in the IRR computation. Acquisition uses include lender origination (0.75% of loan), closing/title, due diligence, a cost-segregation study ($3,000/property), legal & formation, and a Year-1 fund admin reserve. Disposition costs include a 5% disposition fee, $75,000 legal fees, 0.5% misc. closing costs, and the Michigan transfer tax. At exit the partnership votes; a supermajority determines whether proceeds are rolled into replacement real estate via a 1031 exchange (deferring recapture and gain) or distributed to investors with the resulting tax borne in the year of sale. After-tax figures, depreciation recapture (§1245/§1250), and 1031 treatment are simplified estimates — confirm with Matthew Bigelow (Doeren Mayhew) and legal counsel before relying on them. Michigan does not conform to federal bonus depreciation. Fortis Capital Solutions · Rob Bender, Founder & Managing Partner.

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