The real estate private equity investment platform RealtyMogul has opened a new offering for pledging. The Patterson Industrial offering is a 65,000 square foot industrial facility in Paterson, NJ, a strategic location with easy access to the New York/Tri-state market as well as the entire mid-Atlantic region. This value-add equity investment has a solid long-term tenant who has just signed a fresh 10 year extension on their existing triple net (NNN) lease.
The sponsor, Timberline Real Estate Ventures, predicts the existing lease will offer investors steady income while they upgrade the Patterson. Although the property was acquired based on its existing revenue, the Patterson offers significant investor upside with an additional 48,000 square feet of space available to new tenants. Once this space is leased, both the Patterson’s revenue and long-term value is expected to increase dramatically, which could result in significant investor returns.
The sponsor believes there are numerous areas where it can add value and increase revenue to the offering. First of all, it’s in an area that is experiencing an incredibly high demand for quality industrial spaces. Many of the current tenants are paying below market rent, so there is the opportunity to raise rents to market in the already occupied spaces.
Additionally, Timberline expects to generate additional revenue at the Patterson by improving management and being more diligent about charging maintenance expenses back to current tenants. The Patterson is slated to begin making investor distributions in September of 2022.
- Minimum Investment: $35,000
- Projected Hold Period: 5 Years
- Projected Internal Rate of Return (IRR): 16%
- Projected Equity Multiple: 1.88x
- Projected Cash on Cash Return: 6.4%
About the Project Sponsor
Timberline Real Estate Ventures is a New York real estate investment and management firm that specializes in residential and industrial real estate. On the industrial side, Timberline has a strong history of management and adding value to industrial properties like the Patterson, and cold storage facilities.
Timberline relies on its experience to find undervalued or undermanaged assets with investor upside. The company uses a combination of its own capital and contributions from its network of public and private investors to acquire and upgrade its investment offerings. Timberline’s portfolio includes over $2.5 billion in assets under management.
Photo: Courtesy of RealtyMogul