Lorane OR Executive Summary by Th811TeR


                         Real Estate Asset Counseling, Inc – Executive Summary
                               Potential USPS Leased Property Acquisition

Asset Type and Identification:

This potential acquisition is a leased United States Postal Service (USPS) Main Post Office located in
Lorane, OR. The facility designation is Lorane, OR Main Post Office 97451-9719. This property is located
in Lane County in the rolling hills and lush valley of the Oregon coastal range and is located
approximately 18 south of Eugene, OR. The population of Lorane, OR was 389 in 2008.


The property is being made available to the market by the Principal, with Real Estate Asset Counseling,
Inc. (REAC) as the consultant for disposition and asset management purposes. Currently the ownership
is held by Katherine Ledgerwood and Brian Foster, who have engaged REAC to sell this property.

Description of the Asset:

The property consists of a one story wood frame building that was originally occupied by the USPS in
1979. The building contains 340 SF net interior and the total site consists of 9,380 SF land area. The
property is controlled by a USPS Lease Agreement dated May 2010, which is currently in the base term
of the lease. The current term expires May 18, 2015. There is one renewal period available to the USPS
of five years. The renewal period would begin May 19, 2015 and run for five years. The annual rental is
$5,200 and can increase to $5,820 per year during the renewal period. The terms of this Lease
Agreement include the Landlord Responsibility Maintenance Rider and a Tax Reimbursement Rider.
There are no purchase options in the lease and no termination clause, except for default. The property
and casualty insurance (as desired or required) shall be the responsibility of the building owner. The
USPS pays for all utilities, provides its own custodial services and supplies, and grounds care.

Based on industry experience and current operating expense information, the following pro-forma
estimate is provided:

Gross Annual Rental:                 $5,200
       Insurance                     $100
       Maintenance                   $340
       Taxes (paid by USPS)          $0
Net Operating Income                 $4,760 per year

Property Price:                      $59,500            CAP Rate:          8.00%

Point of Contact: Keith E. LaShier, Sr Vice President, REAC
303 565-6061 or REAC@postalrealestate.com


Please note that the above information is based in part on data obtained from sources deemed reliable but not warranted by

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