INVESTMENT ANALYSIS

Medical Office Property Opportunity

6616 E Carondelet Drive, Suite 120
Tucson, Arizona 85710
$115K
Purchase Price
775 SF
Medical Office
110%
Peak IRR
A
Lev Grade
Prepared for: Akilah Vogt
Report Date: June 30, 2025

The Investment Journey

1
Current Challenge
Paying $800/month lease
No ownership benefits
2
Strategic Solution
Purchase + optimize space
Create dual income streams
3
Strong Returns
110% 5-Year IRR potential
Multiple exit strategies

🎯 Key Strengths

  • Strategic medical district location
  • Eliminates current lease expense
  • Exceptional value-add opportunity
  • Multiple revenue enhancement paths
  • Healthcare sector stability
  • Strong appreciation potential

⚠️ Key Considerations

  • Initial negative cash flow
  • Capital investment required
  • Market vacancy at 10.3%
  • Building age may require maintenance
  • Revenue depends on optimization
  • Financing contingent on home equity
SCENARIO A
Current Configuration
-$808
Monthly Cash Flow
$800
Lease Savings
-$8
Net Monthly Benefit
41.65%
5-Year IRR
Single tenant: $600/month rental income
SCENARIO B
Optimized Configuration
-$360
Monthly Cash Flow
$800
Lease Savings
$440
Net Monthly Benefit
109.70%
5-Year IRR
Multi-tenant: $1,100/month rental income

5-Year Cash Flow Comparison at Sale

Scenario A

-$4.1K
Yr 0
-$0.1K
Yr 1
-$0.1K
Yr 2
-$0.1K
Yr 3
-$0.1K
Yr 4
$24.4K
Yr 5

Scenario B

-$5.3K
Yr 0
$5.0K
Yr 1
$5.0K
Yr 2
$5.0K
Yr 3
$5.0K
Yr 4
$29.5K
Yr 5
📊 IRR Calculation: Returns include property cash flows, lease savings benefit, and $4,100 closing costs, reflecting total economic impact vs. current $800/month rent situation.
Financial Component Scenario A Scenario B Difference
Initial Investment (incl. closing costs) $119,100 $120,300 +$1,200
Annual Property Cash Flow -$9,701 -$4,319 +$5,382
Annual Lease Savings +$9,600 +$9,600 $0
Total Economic Benefit -$101 $5,281 +$5,382
Annual ROI -0.09% 4.59% +4.68%
5-Year IRR (includes lease savings) 41.65% 109.70% +68.05%

🏦 Second Mortgage Financing

Based on 780+ credit score and $370,000 home value
$115,000
Loan Amount
7.875%
Interest Rate
$834
Monthly Payment
~$4,100
Estimated Fees

Space Optimization

Scenario B with space partitioning
Investment Required: $1,200
Additional Monthly Rent: +$500
Annual ROI: 500%

Property Details

Size: 775 SF
Year Built: 1979
Location: Medical District
HOA Fee: $250/month
5-Year Value: $139,915

Monthly Operating Costs

Loan Payment (P&I): $834
Property Taxes: $78
Insurance: $85
Maintenance: $100
HOA Fee: $250
Vacancy Reserve (10.3%): $62-$113
Total Operating Costs: $1,409-$1,460
A
Lev Grade
Strong Investment Opportunity
Risk Level: Moderate
Liquidity: Medium
Complexity: Low
Time Horizon: 5+ Years

Strategic medical district location combined with space optimization opportunity creates strong risk-adjusted returns. The partitioning strategy transforms negative cash flow into positive ROI with multiple exit strategies through property appreciation.

⚠️ Important Disclosures

Report Purpose and Limitations

This report is intended to support informed financial planning discussions. It is for informational purposes only and should not be considered personalized investment, legal, mortgage, or tax advice. The information provided is based on assumptions and scenarios that may not reflect actual results. This report is not a substitute for consultation with licensed professionals in the appropriate fields.

Investment Risk Disclosure

All projections, examples, and scenarios are hypothetical and subject to change based on market conditions, interest rates, and individual client circumstances. No projection guarantees future performance or reflects the skill or service quality of any financial advisor. All strategies carry risk, and there is no assurance that any strategy discussed will be appropriate or effective.

Mortgage and Financing Disclosures

If this report includes mortgage or HELOC examples, they are illustrative only and do not constitute an offer to lend or a commitment to financing. Estimated interest rates, APRs, terms, and monthly payments are based on current market data and are subject to change without notice. Actual terms depend on borrower qualifications, property characteristics, and lender underwriting.

Lending services, when applicable, are offered through Rick Sanchez (NMLS #941700 | California DRE #02231006), a licensed mortgage loan originator with C2 Financial Corporation (NMLS #135622), an Equal Housing Opportunity Lender. Rick is currently licensed in California, Illinois, North Carolina, Washington, Tennessee, Indiana, and Montana. Lending services are not available outside these states unless otherwise arranged.

Loan Estimate Disclosures

Leveridge does not provide mortgage loans, investment advice, legal counsel, or tax preparation services. Adjustments to assumptions, contributions, or market conditions may materially affect projected outcomes. This report is based on information believed to be reliable as of the date of generation but may not reflect recent developments. It is intended for one-on-one use and not for general public distribution.

The mortgage and HELOC figures presented in this report are for illustration only and do not represent an offer or commitment to lend. All estimates are based on current market conditions and the borrower assumptions provided at the time of generation.

  • Mortgage APRs reflect typical lender fees and assume a 30-year fixed-rate loan
  • HELOC APRs reflect a variable-rate, interest-only draw period
  • Payments shown do not include taxes, insurance, or HOA dues
  • Actual loan terms may vary by lender, property, and borrower qualifications

Professional Consultation Required

Clients should consult their legal, tax, mortgage, and investment professionals before making decisions based on this material. Before making any investment decision, you should conduct thorough due diligence on the property, verify all financial assumptions and projections, and obtain independent professional advice.

Regulatory Compliance

These disclosures are provided to clarify the illustrative nature of the scenarios and satisfy applicable consumer finance regulations. This report is intended for one-on-one use and not for general public distribution.