Jim,

Your spreadsheet shows the same type of return I was calculating.  Your insurance and repair numbers seem very low.   Also, assuming that the options to extend at higher rates will be exercised is a huge leap of faith.  I don't believe these properties cost any where near the $150+/sf that they are being offered at.  

Based on the optimistic back loaded returns, I would not be comfortable purchasing a post office at this time.  Thank you anyway.

Phillip

 -----Original Message-----
From: 	James Wills <jwills3@swbell.net>@ENRON  
Sent:	Tuesday, November 20, 2001 8:56 AM
To:	pallen70@hotmail.com; pallen@enron.com
Subject:	PO spreadsheets

Phillip,

Hope you are doing well this week, and have great plans for Turkeyday!!
We'll be with family in Austin, and kind of on a maiden voyage in our
'83 Avion that we're upgrading for camping!

Here's a look at three post offices in a slightly different manner.
Remember that the Roma one is about 5 years old, was a 15 yr lease
originally. The other two are new.

The Roma is like buying a savings account. It would be paid off in 10
years, you would reap some cash flow during that period, then the bonus
kicks in after that with the 10 yr. renewals at a higher lease income
after it's paid off. It would probably go beyond another 10 years. Cash
on cash returns don't mean as much on shorter amoritazations like Roma.

We have shown this info and flyers to several people, so do let us know
if you are interested in any of them...I really don't think they will
last long. With best regards, Jim Wills

 - new analysis.xls << File: new analysis.xls >>