High Level Overview
We are purchasing a 21,250 sqft high quality multi-tenant industrial property in Woodstock, GA (Atlanta MSA), only 1.6 miles from a 30k sqft self-storage property we also own and manage. The property has 7 tenants, is fully leased, we are going in at an excellent 7.6% cap rate, and we intend to stabilize at a 9% yield-on-cost once we roll the 4 tenants who are currently at below market leases to market rents. We aim to return a net 17% IRR to our investors, resulting in a 1.9x multiple on invested capital by the end of the 5 year hold term.
Demand Discovered via Storage Facility Nearby
The incredible demand that we see for our largest storage units at our Woodstock, GA location led us to pursue multi-tenant industrial opportunities and, thankfully, we found an excellent property right nearby, situated between a Publix and Costco in a high income, growing suburb of Atlanta.
The story of us discovering the demand in this market is told more in-depth in the OM found on our investor portal, but to give you a quick peek - among other studies and investigations, we posted a facebook ad for a 2000 sqft industrial unit (like those we are purchasing) at $15/sqft rents (25% above our projections) and received 12 responses in just 3 hours from local businesses who were ready to move in immediately. When calling and asking for zoning clearance (which we received) the city even asked to rent a spot. The supply / demand balance in this market is incredibly favorable, and we expect to exceed our projected market rental rate of $12 NNN.
Redwood Storage & related entities are contributing $170k (11%) to the project and we are raising an additional $1,350,000k.
If you are interested, please find a time to meet here or shoot me an email with some times that work for you.
All the very best,
Ryan Auger
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