WHY INDUSTRIAL REAL ESTATE?


We believe now is an opportune time to acquire industrial real estate. According to RREEF, the real estate investment management business of Deutsche Bank's Asset Management division, "The next two years should prove to be an excellent vintage period for investors of core industrial real estate. Current pricing for core industrial real estate, measured as a spread over 10-year T-Bills or on a price per square foot basis, is a relative bargain compared to historical industrial values, current replacement values or to other sectors today.1"


PERFORMANCE   PROJECTED DEMAND

According to NCREIF Property Index data, industrial real estate posted an average annual total return of 9.8% from 1995 through 2010.3


As indicated in the graph, the demand for industrial space (i.e., "net absorption") is projected to significantly outpace new construction (i.e., "completions") over the next several years.4

Resiliency

Industrial real estate is a resilient asset class that has weathered recent economic conditions better than several other real estate types - accounting for only 7% of the overall distressed market.2

Tenant Improvement Costs

Warehouse space typically requires relatively few tenant improvements when re-leasing a facility thus helping to enhance net operating income.

Operating Costs

Industrial properties generally don't have significant expenses associated with maintenance of elevators, complicated HVAC units, parking structures, lobbies, corridors, intricate power systems, etc.

Hedge Against Inflation

The lease structure associated with industrial properties often passes the risk and responsibility of taxes, insurance and property maintenance directly to the tenant thus insulating the landlord from future increases in these expenses.







 
1: https://www.irei.com/uploads/marketresearch/166/marketResearchFile/Industrial-FD-10-10.pdf
2: http://www.rcanalytics.com/commercial-troubled-asset-radar-reports.aspx
3: http://www.ncreif.org/property-index-returns.aspx. Calculated from average annualized quarterly industrial property returns that are included in the NCREIF Property Index. Past performance is no guarantee of furture results.
4: http://www.cbre.com/NR/rdonlyres/53EC7E25-4B2A-4EA5-AC94-19E84AC7FB6B/821716/AnnualTrendsReport.pdf

The Company has no operating history or established financing sources. As a result, an investment in the Company is speculative. In addition, the offeree will not be acquiring an interest in the Company's advisor.

NOT AN OFFER TO SELL SECURITIES
The contents of this website constitute neither an offer to sell nor a solicitation of an offer to buy the securities described herein; an offering is made only by the prospectus to individuals who meet minimum suitability requirements. The contents of this website must be read in conjunction with the prospectus in order to understand fully all the implications and risks of the offering of securities to which the contents of this website relates. A copy of the prospectus must be made available to you in connection with the offering described herein. Neither the Attorney General of the state of New York, nor any other state of federal regulators, have passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful. Please see the "Risk Factors" link for important Risk Factors related to the offering of securities to which this website relates.