Stripmall Solar Plan NNN - Value Add

[Peter Tsam]

I've been putting together a deal for a while. Found this nice ~40k sqft sqft stripmall. Plan on 1031ing into it purchase price of 11m with about 3.5. down. 8% cap rate @ a 6% rate. Newer building built less than 20 years ago. Plan on operating one of the few vacant spots as a restaurant. ( I have experience in the area). Probably a light breakfast & lunch spot. 

Cashflows nice without the restaurant. Plan on adding a 100kw DC charger, around 50k-100k after rebates. Solar carport 1.7mw installation, @ 1.5$ per watt 100% financed(getting quotes(probably installed around year 3 after business & EV charging demand is stabilized. Averaging the prices @45kwh per squarefoot & 4-8 cars a day charging. I estimate the the solar & charging to bring in about 350-550k. More than enough to pay off loan 100% financed @ 8%. The low end assumes a 60% occupancy.  Since Solar net metering only pays if your selling to tenants. I plan on getting agreements before building to buy from my Utility account before commencement of solar development. at a 1cent discounted rate. At 60% occupancy, should be able to cover the mortgage as well. 33kvpd.

Solar Rev breakdown - NJ offers the SRECs, which are good for 10 years 85-100 per MW. ~200k Factored in. 36k-90k for car chargers. 150-250k~ energy sold to tenants

If my assumptions are correct, I should be able flip property in 5 years or refi and do it again in 5 years @ 50/50% at 13.5m equity. rinse repeat. Commercial Electric prices going up @ minimum 1.5-2% along with EV usage. Thoughts? I assume every tenant would want carports and cheaper green eletricity. Would national/regional tenants be open to this?

Solar plan on going with reputable enphase dealer & maxeon panels for least downtime & highest terminal value up possible sale.