Southern California Industrial Portfolio Acquisition

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.

$61.8M

Total Investment

↑ Premium Assets

13.2%

Target LP IRR

↑ Above Market

2.27x

Equity Multiple

↑ Strong Returns

175K SF

Total Portfolio

↑ Scale Benefits

Portfolio Properties

Prime Location

Redlands Industrial Center

Redlands, CA - Inland Empire

100,000 SF

Building Size

$37.8M

Purchase Price

5.5%

Going-in Cap Rate

95%

Occupancy

Value-Add

Torrance Logistics Hub

Torrance, CA - South Bay

75,000 SF

Building Size

$24.0M

Purchase Price

5.2%

Going-in Cap Rate

88%

Occupancy

Financial Performance Analysis

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%