Industrial/warehouse investment in DFW

[Ronald Rohde]

Investment Info:

Industrial commercial investment investment in Plano.

Purchase price: $2,725,000
Cash invested: $900,000

Industrial/warehouse property, 37,700 square feet on 4.0 acres of land right off a major highway. Fully leased triple net plus RV storage for bonus income. 4.0% fixed interest rate for 5 years. 72% LTV, 20 year amortization, with 20 year term and personal guarantee.

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

Its my second warehouse deal, love the space since pre-COVID, but have seen very strong tenant income and look to continued growth with these tenants on a 5 year, NNN with rent escalations

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

Off market from a broker, not much negotiation, accepted the seller's asking price

How did you finance this deal?

30% down as equity 70% loan from a regional bank lender

How did you add value to the deal?

Not much for a triple net lease, landscaping, paint, lighting ~$30,000

What was the outcome?

Still in progress

Lessons learned? Challenges?

Financing is critical. A bit of a delay from switching lenders, wasted time and money.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, tons. Please message me