PROJECT / UNDERWRITING
SoCal Industrial Portfolio Acquisition
Underwriting
December 2024 · approx.
[01]
Overview
$61.8M, two assets, core-plus underwriting, 10-year hold.
$61.8MTotal InvestmentTwo-property acquisition
13.2%Target LP IRRUnderwritten LP return
2.27xEquity MultipleTen-year model
175K SFTotal PortfolioCombined area
[02]
Executive Summary
The case underwrites two Southern California industrial assets for core-plus returns and projects a 13.2% LP IRR and a 2.27x equity multiple over a 10-year hold.
[03]
Portfolio Properties
| Property | Location | Profile | Building Size | Purchase Price | Going-in Cap Rate | Occupancy |
|---|---|---|---|---|---|---|
| Redlands Industrial Center | Redlands, CA - Inland Empire | Prime Location | 100,000 SF | $37.8M | 5.5% | 95% |
| Torrance Logistics Hub | Torrance, CA - South Bay | Value-Add | 75,000 SF | $24.0M | 5.2% | 88% |
[04]
Analysis
[05]
10-Year Financial Projections - Redlands
| Year | Rental Revenue | Operating Expenses | NOI | Debt Service | Cash Flow | Cash-on-Cash |
|---|---|---|---|---|---|---|
| Year 1 | $4,159,866 | ($962,396) | $2,959,535 | ($2,442,000) | $517,535 | 7.2% |
| Year 2 | $4,240,863 | ($982,135) | $3,035,756 | ($2,442,000) | $593,756 | 7.8% |
| Year 3 | $4,323,480 | ($1,002,282) | $3,113,933 | ($2,442,000) | $671,933 | 8.4% |
| Year 4 | $4,407,750 | ($1,022,846) | $3,194,113 | ($2,442,000) | $752,113 | 9.0% |
| Year 5 | $4,493,705 | ($1,043,836) | $3,276,334 | ($2,442,000) | $834,334 | 9.6% |
Documents
- Investment Presentation2.3 MB • PDF
- Redlands Model1.8 MB • Excel
- Torrance Model1.5 MB • Excel
- Market Analysis890 KB • PDF
[06]
Investment Committee Team
USC Marshall School of Business
- Kyle TranLead Analyst
- Eitai AbutulFinancial Modeling
- Ilias HwangMarket Research
- Oscar YanRisk Analysis