Investors

B&D sourced the 48,575 square foot warehouse property in the Richmond Industrial Market directly from the seller, an owner-occupier, acquiring the site in March 2024 off-market. The asset was well located in an industrial park directly off I‐95 and ~10.0 miles outside of Richmond, VA providing access to the local community as well as the greater Richmond metro. The initial business plan called for the seller to vacate the property at close, after which we were to perform minimal capital improvements and bring the property to market for lease. During our diligence period, while interfacing with the local broker community, we were able to capitalize on our attractive off-market purchase price and negotiate the sale of the building to an owner-user; ~1 month after our purchase, we sold the asset for a 62% increase in value. The transaction demonstrates our core understanding of the needs of users in a market, recognizing properties that are likely to command high interest from tenants, owner/users, and market investors, and adding value to our investments.

Through a long-time broker relationship, B&D secured this vacant property in the Charlotte Industrial Market in an all-cash transaction, believing in the location, functionality and quality of the asset and knowing that we had tenant relationships looking to expand in the market. Leveraging these relationships, prior to closing on the acquisition, the team worked closely with a long-time tenant relationship and national credit tenant, ABC Supply, to put them in the building and procure a 10-year lease at an above-market yield with contractual annual rent increases, reducing lease-up risk and creating immediate value. The team secured accretive financing at 65% loan-to-value, inclusive of loan proceeds to be used for tenant improvement work, enhancing the value of the asset. Given the strong execution of the business plan, we opportunistically took advantage of the capital markets in year three of our hold, selling the property and a ~37% IRR and 1.72x multiple on a ~3-year hold period.

Through a strong broker relationship, we acquired a 70,000 SF warehouse on +9 usable acres serving the Hampton Roads market. The property had been under contract to be sold to a national e-commerce tenant, but they decided not to acquire the property shortly before the scheduled closing. Based on our relationship with the broker we had a brief window to win the deal. We moved quickly to put the property under contract, knowing that this highly functional asset (consisting of nearly 5 acres of stabilized rectangular yard and parking area) was being sold below market and would benefit greatly from our leasing expertise. The property was occupied by a regional warehouse tenant with one-year remaining on a below market lease with a landlord termination option. Because of the property’s functionality and yard space, we exercised our right to terminate the tenant and brought the property to market for lease at a premium to market rent. With multiple national tenants competing for the space, we were able to negotiate a landlord friendly five-year lease at an attractive above market yield with the US Postal Service and sold to a national core-plus investor.

We acquired The Artley Industrial Park (together with a joint venture partner) consisting of 11 industrial warehouse buildings, totaling approximately 524,500 SF. The industrial park is situated just off Highway 95 and strategically located within a few miles of the Savannah Port, one of the nation’s fastest growing ports and is the fourth largest Port in the U.S. The seller of the property was a long-term owner who had not capitalized on the strong demand for space in the Savannah market, having not maximized rental income and lease terms. Through a combination of proactive management, our leasing experience, and capital improvement knowhow, we implemented a value-add capital improvement plan and engaged our leasing teams to actively market the space. Our improvement plan consisted of concrete and drainage repair, installing LED lighting, new signage, new landscaping, roof repairs, office upgrades and other miscellaneous capital repairs. We ultimately signed new leases on ~80% of the space at market leading rents and sold the property at a 60% premium to our cost basis.