Liverpool Industrial Holdings

This is an acquisition opportunity for investors to purchase a stable, long-term income stream that has strong growth potential. Peykar has the Asset under contract at a purchase price of $17MM, or $72 per SF, well below replacement. The purchase price equates to a going-in capitalization rate on in place NOI of approximately 7.5% and stabilizing in the mind 8’s. The underwriting assumes new financing in the amount of $11,000,000 or 65% of the purchase price, an approximate interest rate of 3.5% for a term of 5-years, interest only. Considering this leverage assumption, the Asset’s 5-year leveraged IRR is projected to be 14.18% while delivering $5,541,828 of profit. In addition, the Asset delivers a respectable 5- year average cash-on-cash return of approximately 11.50%. Peykar focuses on investments with the ability to pay double digit cash returns. The total cost of the acquisition is $18,764M of which $17.0MM is the purchase price of the asset (See “Sources-Uses in Model) and includes approximately $1,765,200 for closing costs, reserves and working capital. The total equity investment required to close the transaction is approximately $7,714M. The business plan for the Asset is to increase NOI by converting the remaining gross leases to NNN and them moving rents with market demand while maintaining a stable occupancy of 95%. The site has a 70 acres of undeveloped area which includes wetlands that will be studied for additional development. Investment members shall have the right of first refusal to invest in future development. We have NOT included any value or projected income in our analysis