Case Study Property 1
9-year hold / Current Yield 7.9% / Total Return 25.0%
Acquisition of a well located warehouse and distribution facility located in Wilson, North Carolina. Highlights Cardinal’s ability to capitalize Tenant Improvement expenditures into disposition sales price premium.
Investment Hold: 10/2005 – 07/2014
Investment Thesis: Investment represented the opportunity to acquire a well-positioned, warehouse and distribution facility totaling 328,000 sft. in Wilson, NC. The acquisition featured a lease to a financially strong beverage distributor with 10 years of remaining term, and a high probability of renewal based on the mission-critical nature of the facility. With 3 years remaining on the lease, Cardinal invested $1.5M in TI in exchange for a 15-year renewal which created $3M+ in property value, at which point, the property was subsequently sold in 2014.
Returns: The investment generated strong risk-adjusted returns over the 8 year hold period: 7.9% Cash-on-Cash, 25.0% Total Return and 2.2x Equity Multiple.
|Price per Sft||$41.20|
|Entry Cap Rate||8.7%|
|Acquisition Strategy Type||Yield|
|Net IRR (Leveraged)||25.0%|
|Hold Period||8 Years|
|Year Built / Renovated||1998, 2005|
|Total Square Feet||328,000|
|Lease Term Start||2005|
|Lease Term End||2026|