Equity Partner for two NNN small industrial buildings

[Daniel Holbrook]

The Deal

I have a verbal contract for two industrial buildings in Wyoming (Cheyenne and Casper, the two largest cities).

I am very motivated to move forward on this deal, but do not have the full 25% down payment. I am looking for an equity partner who will co-invest and co-own, for a pro-rata return.

Property Details

The buildings are each about 3,500 sf. They are leased to an international tenant, who has occupied the buildings for over 10 years. The tenant maintains the interior and has spent significant amounts on upgrading the buildings, so they are very motivated to stay. The lease expires in one year, but I think the renewal probability is over 95%--otherwise I would not be near this deal. We should be able to bump the rent slightly at renewal.

As a NNN lease, tenant reimburses taxes and insurance, and pays all other expenses including repairs. Even if taxes or insurance move significantly, the NOI is not diminished.

I pro-forma about 9% cap rate.  Targeting about 10% cash on cash return.  Your dollars per hour are far above what you normally see in the residential world because the tenant takes care of everything.

Please message me for more specifics about the pro-forma and other questions you have.

Thank you.