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 Overview

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.


Transaction Overview

Price $13,512,625
Price per Sft $41.20
Entry Cap Rate 8.7%
Equity $3,122,625
Debt $10,400,000
Acquisition Strategy Type Yield

Investment Returns

Net IRR (Leveraged) 25.0%
Cash-on-Cash (Avg.) 7.9%
Equity Multiple 2.2x
Hold Period 8 Years

Property Overview

Property Type Warehouse
Year Built / Renovated 1998, 2005
Total Square Feet 328,000
Occupancy 100.0%
Lease Term Start 2005
Lease Term End 2026
Lease Structure NNN