4950 JOULE STREET, RENO, NV (JOULE INDUSTRIAL CENTER)
VALUE-ADD AND INFILL INDUSTRIAL
ACQUIRED IN MARCH 2020
SOLD IN SEPTEMBER 2024 AT AN IRR OF 12.5% AND AN EQUITY MULTIPLE OF 1.64X

74,610 SF warehouse (2 connected buildings) on 146,362 SF (3.36 acres) of land; 51% coverage

Located next to the Reno-Tahoe International Airport and 5-10 minutes from I-80, I-580, and downtown Reno.

Acquired at a discount to comparable sale pricing, largely due to the property's below market rents and short (2.5 year) lease terms. Still, there was minimal deferred maintenance then and today.

At the time of purchase, the property was 100% occupied by two tenants, and both leases expired in October 2022. One of the two tenants then took over both buildings and very soon after filed for bankruptcy. The property was initially marketed for lease and given limited interest it was then listed "for lease or sale". After 3 years of solid cash flow and investor distributions followed by 20 months of vacancy, the property was finally sold. While this period of vacancy and negative cash flow was disappointing, our key parameter of buying properties at a low price per square foot essentially paid off, allowing us to sell for a satisfactory, albeit not great return.