Investment Property

The Task

Turbak has been working in the Kent Valley region for almost 30 years. Our local market mastery and connections gave us the scoop on a property that hadn’t yet been listed and would make a great investment in a clients’ industrial portfolio: a state-of-the-art inter-modal center with three established tenants. We reached out to our client and shared not only the sales price, tenant square footage and annual rent rates, but also projected approximate operating costs.

The Result

Turbak conducted a comprehensive investment analysis of the potential industrial property acquisition. We used income and expense assumptions to determine how much the client could borrow; we looked at key financial ratios; we calculated the projected return; and we stress-tested the model for variables like vacancy rate. Because leases would be expiring during the holding period, we gave our client comfort by showing a lease market assumptions analysis to illustrate a predicted IRR based on the likelihood of renewals vs. new leases.

The Search

Analyzing the financial attractiveness of an industrial real estate deal can be daunting, confusing, and extraordinarily time-consuming. Based on the financial pro-forma including cash flow forecast we built, the client pulled the trigger on the Kent Valley warehouse.