Avistone purchased, in November of 2014, the Northgate Business Center, a Class A, 139,500 square foot, multi-tenant business park located in Sacramento, California. The company acquired the stabilized Project for $11,100,000 ($79 per square foot), which is approximately 65% of its replacement cost.
This investment provides a 8.04% cash-on-cash yield in the first year and an estimated 8.23% average cash on cash yield over 5-year hold. Avistone estimates that the Northgate investment will provide a 14% annualized total return (IRR) or a 1.76x multiple over the investment horizon. That is a $100,000 investment in this project is estimated to return $176,000 upon sale after the 5 year hold.
Avistone principal Richard Kent commented on the favorable risk profile of this multi-tenant investment, “this property is leased to 43 tenants and no tenant occupies more than 8% of space, therefore no single tenant can’t significantly affect the cash flow of the Northgate Business Center, which reduces risk compared to single tenant industrial property.” Kent added that “purchasing the business park for a price that is below replacement cost also helps to reduce risk.” Mr Kent went on to comment that “business trends, especially the growth of e commerce and the recent federal funding of large levee projects in Sacramento, favored the growth in value of multi-tenant industrial real estate in this market.”
Avistone a premier commercial real estate investment firm specializes in the Multi-tenant Industrial Real Estate market. Avistone is currently acquiring and managing quality, stabilized multi-tenant industrial property from $10 to $20 million. This strategy helps to make our investments more secure with increased appreciation upside potential. Avistone invest its own money in each deal. If you would like more information regarding this acquisition or Avistone, please contact Daniel Culler at 949.682.7202 or via email at [email protected]
*Important Disclosures:
This communication is intended solely for accredited investors as such is defined in the Securities Act, and is not intended as an offer to sell, or the solicitation of an offer to buy any securities or ownership interests. The opinions and forecasts expressed herein are solely those of Avistone, LLC, as of February 24, 2023, and subject to change. Actual results, future events, predictions, circumstances and events will vary and be different from those set forth herein, and there are no guarantees that any positive or successful results, express or implied, by investors will be realized. Avistone specifically disclaims any right or obligation to provide investor returns at forecasted levels. Avistone’s track record from 2013 to December 2022; no guarantee of future results. The performance information of Avistone’s prior projects has not been audited by any third-party. The track record metrics reflect the weighted average performance of all our clients, and not every investor experienced exactly these same returns. Any and all evaluations for investment purposes must be considered in conjunction with a final Private Placement Memorandum (the “PPM”); all prospective investors are strongly encouraged to read all “risk factors” in the PPM. Further, some of the initial information provided above contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties, and investors should not rely on them as predictions of future events. Investments in private securities contain a high degree of risk and often have long hold periods. They are illiquid and may result in the loss of principle. Avistone’s strategy may not occur due to numerous external influences.