CURRENT PROPERTY

2492 – 2498 S. Tejon St.

Denver, CO

ASSET CLASS:

Industrial

ASSET SUB-TYPE:

Multi-unit Small units from 2,000 to 3,027 sq ft.

BUILDING:

10,027 sq ft, (4) units, brick and wood exterior.

Investment Report

Thesis

Overview

  • Small unit industrial is a good performing asset in economic downturns.
  • Stays fully occupied nearly all of the time due to high demand and low inventory of like product.
  • Very few, new small-bay building spaces (0-6,000 sq ft) have been created in the past 10 years.
  • The building was purchased with a projected net annualized return of 10.03%.
Timeline Chart

Risks

  • 50% of the leases are up for renewal in 2020.
  • We will focus on staggering leases in future years to mitigate tenant turnover at the same time.
  • Another risk is tenant credit. We are trying to improve credit for each time a unit becomes available.

OUTLOOK & EXIT

  • All work was completed within 1.5 months of purchasing the property.
  • Certificate of Occupancies have been awarded and the vacant units have been occupied.
  • The property is performing as expected with a forward weighted projected net annualized return of 10.07%.
  • If the property was sold after 3 years, the projected net annualized, non-levered return upon disposition would be 11.67%.

More Information

For more information about this or any of our other assets…