Case Study 8 of 10

Hembree Business Park – Industrial / Flex Portfolio

Atlanta MSA | Acquired September 2014 | $21.0M Purchase Price

Industrial / Flex Portfolio

CASE STUDY 1 | LONG-TERM VALUE CREATION

Hembree: A Legacy That Keeps Compounding

Twelve years of execution. One asset funding three follow-on positions.

Acquired Sept. 2014 — Atlanta MSA

Hembree Business Park

7-Building Industrial / Flex | 3.84x Equity Multiple | 12-Yr Hold | Peak NOI $3.1M

Acquired 7 buildings for $21 million; Executed a strategic disposition plan to maximize value.
Sold 5 flex buildings for $28.9 million; Repaid 100% of debt and completed a 1031 exchange into North River.
Sold the single-tenant IDEXX building for $14.8 million; Returned 100% of investor equity and completed a 1031 exchange into a Safeway-anchored retail center.
One building remains from the original portfolio and currently generates approximately $952,000 in annual cash flow.

North River

Class A Industrial — Chattanooga, TN

$28.75M

Basis

$30.5M

Current Val.

$80k

Monthly Cash Flow

5 buildings sold via 1031 exchange. Stabilized 97% occupied. NOI exceeded underwriting; cap rate compression (6.47% → ~6.0%) drove $1.75M+ mark-to-market gain.

Arapahoe Ridge

Retail — Additional 1031 Redeployment

1031

Tax-Deferred

10.21%

Projected ALL CASH IRR

$78k

Monthly Cash Flow

Proceeds from the IDEXX building sale 1031-exchanged into Arapahoe Ridge. Same disciplined approach — leasing execution, basis management, and capital discipline.

Hembree Remaining

Multi-Tenant Industrial — Atlanta MSA

$17 Million

Current Valuation

$79k

Monthly Cash Flow

One multi-tenant industrial building remaining from the original Hembree portfolio. Continuing to operate and hold while evaluating the optimal exit timing.

$237k

Monthly Cash Flow Combined

$2.84 Million

Annual Cash Flow Combined

31.8% CoC

Combined Cash on Cash off Original
Equity