Warehouse with redevelopment opportunity

[Zander Kempf]

Investment Info:

Industrial industrial investment investment in Phoenix.

Off market warehouse and industrial lot.
Current warehouse tenant has a gross rent lease. Revenue can be doubled by releasing with a market rate NNN lease.
Warehouse can also be demised into two spaces to allow for tenant mix and higher rates.

Additionally, 1 acre is undeveloped and has potential for an 8,000 SF warehouse or self storage to be built.

Projected project IRR is 24% with a 4 year investment horizon.

What made you interested in investing in this type of deal?

Massive value add opportunity through redevelopment.

How did you find this deal and how did you negotiate it?

Off market deal brought through my network.

How did you finance this deal?

Seller finance combined with capital raised from investors in a syndication done using SEC Reg D, Rule 504.

Lessons learned? Challenges?

You make money when you buy, plain and simple. Finding deals with upside potential from the start is absolutely essential. Then you simply follow through with your value-add plan.