176 YWCA Way is a 14,500 SF office and flex building in Winston-Salem, NC — currently being acquired and renovated as a purpose-built relocation destination for an established tenant base. The property sits directly across the street from 1315 S. Main Street, where Joel Schneider's existing tenants currently operate. Joel is under contract to sell 1315 S. Main to UNC School of the Arts for $2.5M, which is triggering the relocation. All existing tenants have agreed to move to 176 YWCA Way, bringing committed occupancy from day one. Joel is participating as lead equity investor, with the balance of the equity open to select co-investors on the same terms. The deal features low leverage, pre-committed tenants, 3% annual rent escalators, and a step-up in returns once the seller lease-back space resets to market rate in Year 4.
Total Project Cost
$2,237,000
Acquisition + Renovation
Loan Request
$1,125,000
50.3% Loan-to-Cost
Total Equity
$1,112,000
Joel lead · balance open to co-investors
Yr 1 Cash-on-Cash
9.59%
Growing to 13.16% by Year 4
Capital Stack
Purchase Price$1,185,000
+ Improvements$1,052,000
Total Project Cost
$2,237,000
Investor Returns — Two Phases
Phase 1 · Yrs 1–3 · Seller Lease-Back at $2K/mo
Yr 1 NOI After Debt Service
$106,648
Yr 1 Cash-on-Cash
9.59%
Phase 2 · Yr 4+ · Seller Space Resets to Market
Yr 4 NOI After Debt Service
$146,313
Yr 4 Cash-on-Cash
13.16%
All leases carry a 3% annual escalator. Seller space resets from $2,000 to ~$3,500/mo at month 36. Joel participates as lead equity; co-investors share pro-rata returns.
Why This Deal Works
The core insight is that Joel is not speculating on new tenants — he is buying a building for tenants who must move regardless. His existing tenants, relocating from a building sold to UNC School of the Arts, have agreed to a 7% rent increase on relocation plus 3% annual escalators. Additional upside comes from leasing 5,500 SF of vacant space at market rate, plus resetting the seller lease-back to market in Year 4. At 50% loan-to-cost with Joel personally committed as lead equity, downside is well-protected.
7-Year Cash-on-Cash Projection
P&L — Year 1 (Phase 1)
+Tenant Income (11 tenants, +7% bump)$156,648
+Lease-Up Income (5,500 SF @ $14/SF)$77,000
+Seller Lease-Back (2,000 SF)$24,000
=Gross Income$257,648
−Operating Expenses$65,000
=NOI$192,648
−Debt Service$86,000
=NOI After Debt Service$106,648
7-Year Income Escalation — 3% Annual Rent Increases
| Year | Tenant Income | Lease-Up | Seller LB | Gross Income | NOI | After Debt Svc | CoC Return |
|---|---|---|---|---|---|---|---|
| Year 1 | $156,648 | $77,000 | $24,000 | $257,648 | $192,648 | $106,648 | 9.59% |
| Year 2 | $161,347 | $79,310 | $24,000 | $264,657 | $199,657 | $113,657 | 10.22% |
| Year 3 | $166,188 | $81,689 | $24,000 | $271,877 | $206,877 | $120,877 | 10.87% |
| Year 4 RESET | $171,173 | $84,140 | $42,000 | $297,313 | $232,313 | $146,313 | 13.16% |
| Year 5 | $176,309 | $86,664 | $43,260 | $306,233 | $241,233 | $155,233 | 13.96% |
| Year 6 | $181,598 | $89,264 | $44,558 | $315,420 | $250,420 | $164,420 | 14.79% |
| Year 7 | $187,046 | $91,942 | $45,895 | $324,883 | $259,883 | $173,883 | 15.64% |
RESET = seller lease-back space moves from $2,000/mo to $3,500/mo at start of Year 4. All income lines escalate at 3%/yr thereafter.
Rent Roll — 11 Paying Tenants + Seller Lease-Back · 3% Annual Escalator on All Leases
1
Personalized Physical Therapy$2,100/mo
2
HRP Environmental$2,000/mo
3
PMI Management$1,250/mo
4
CMC Property Innovations$1,250/mo
5
Parking Lot Services$1,250/mo
6
Carolina Quality Caskets$1,200/mo
7
Louis Plumbing$950/mo
8
Viola Insurance$600/mo
9
Triad Performing Arts$600/mo
10
Liberty Electrical Solutions$500/mo
11
JS Construction Corp ⚠ SPONSOR-AFFILIATED$500/mo
—
Triad Trolley & Segway SELLER LEASE-BACK$2,000/mo
Monthly Rent (11 tenants)
$12,200
11 tenants + seller lease-back
Annual Income (Current)
$146,400
Pre-bump
After 7% Bump + 3%/yr
$156,648
Year 1 base · grows annually
Risk Factors & Mitigations
Every real estate investment carries risk. Below we outline the key factors we have identified and how the deal structure addresses each one.
Renovation Scope
The $1.05M capital plan covers roof, HVAC, electrical, plumbing, and full interior buildout. Joel's firm, JS Construction Corp, will self-perform as GC — eliminating general-contractor markup and providing direct cost control throughout the project.
Lease Execution
All 11 tenants have agreed to a 7% relocation bump and 3% annual escalators. Executed lease amendments will be in place prior to closing — no verbal agreements or side letters.
Sponsor Alignment
Joel is personally committed as lead equity and his firm occupies space in the building. This alignment means the sponsor's interests are directly tied to the property's success alongside co-investors.
Vacant Space Lease-Up
5,500 SF of vacant space is underwritten at $14/SF — in line with comparable industrial flex product in Winston-Salem. The existing tenant base and renovation improvements position the property well for absorption.
Operating Expenses
Post-renovation OpEx is projected at $4.48/SF, reflecting newer mechanical systems and reduced maintenance. Even at a stress-tested $6–7/SF, the deal still yields a 8%+ Year 1 cash-on-cash return.
Flood Zone Status
The property is certified FEMA Zone X — no mandatory flood insurance required. The nearest X500 boundary is 30 ft away with no adverse flood history on record.
Investor Protections
01Executed lease amendments with 7% bumps and 3% escalators required prior to closing.
02Detailed construction budget with line-item transparency and defined contingency reserve.
0350% loan-to-cost structure limits downside exposure and preserves equity cushion.
04Sponsor personally committed as lead equity — aligned with co-investor interests.
05Seller lease-back resets to market rate in Year 4, providing built-in income growth.
Income Assumptions & Underwriting
| Assumption | Amount / Detail |
|---|---|
| Current Annual Tenant Income | $170,400 |
| 7% Increase on Relocating Tenant Rents | $182,328 |
| Vacant Space to Lease | 5,500 SF |
| Underwritten Rent on Vacant Space | $14 / SF |
| Additional Lease-Up Income | $77,000 |
| Seller Lease-Back for 36 Months | $24,000 / yr |
| Market Rent for Seller Space (after reset) | $42,000 / yr |
| Future Seller Rent Upside | $18,000 / yr |
Phase 1 — During Seller Lease-Back
+Adjusted Tenant Income$182,328
+Additional Lease-Up Income$77,000
+Seller Lease-Back Income$24,000
=Gross Income$283,328
-Operating Expenses$65,000
=NOI$218,328
-Debt Service$86,000
=NOI After Debt Service$132,328
Cash-on-Cash Return
11.90%
Phase 2 — After Seller Lease Resets to Market
+Adjusted Tenant Income$182,328
+Additional Lease-Up Income$77,000
+Seller Space at Market Rent$42,000
=Gross Income$301,328
-Operating Expenses$65,000
=NOI$236,328
-Debt Service$86,000
=NOI After Debt Service$150,328
Cash-on-Cash Return
13.52%
Credit Summary
| Metric | Amount |
|---|---|
| Total Project Cost | $2,237,000 |
| Loan Request | $1,125,000 |
| Total Equity | $1,112,000 |
| NOI During Lease-Back | $218,328 |
| NOI After Debt Svc — Lease-Back | $132,328 |
| Cash-on-Cash — Lease-Back | 11.90% |
| NOI After Seller Reset | $236,328 |
| NOI After Debt Svc — After Reset | $150,328 |
| Cash-on-Cash — After Reset | 13.52% |
Financing Request
The borrower is seeking a loan of $1,125,000 for the acquisition and improvement of 176 YWCA Way. The borrower is open to discussing construction-to-permanent financing or permanent financing with an interest-only period during renovation.
The project features low leverage, full sponsor equity support, committed relocating tenants, lease-up upside on remaining space, and additional future upside from resetting the seller lease-back space to market rent after the 36-month term.
Loan to Cost
50.3%
Loan Amount
$1,125,000
Conceptual Rendering — Street View · 1414 Doune St
Conceptual Rendering — Aerial Site Plan
Existing Property — Street View
Existing Property — Main Building
Site — Road Frontage & Parking
FEMA Flood Map — Zone X · 30 ft to X500 Boundary