Nashville Flex Industrial

Actual Returns

1.79x

18.9%

3.4 years

Internal Rate of Return

Equity Multiple

Holding Period

Exterior of Central Pike Business Center with signage for businesses including Ever-Seal and Chim Chimney. A single-story building is visible in the background with the name Milton Anderson CPA P.C. Vehicles are parked in the lot, and a tree and shrubs are present in the foreground.

Executive Summary

RCP Nashville Flex Industrial, LLC invested $3 million of equity to acquire the Central Pike Business Center. The Project is comprised of 3 buildings totaling 69,010 sq. ft. located on 5.08 acres in Nashville, Tennessee. The two part business plan is to primarily renew/re-lease the current rent roll to market rates upon roll over of existing tenants and second to convert the space into 21 individual condominium units for sale.

Closing Summary

The Central Pike Business Center, sold. The buyer purchased the Project for $14,514,500 or $210 per square foot, which exceeds RCP’s original projection of selling the Project for $12.9 million or $187 per square foot.

The RCP Class A Investors have received an 18.9% internal rate of return (IRR) and a 1.76x equity multiple on their investment over a 3.4 year hold period. This investment exceeded RCP’s original projection of a 16% IRR and a 1.76x equity multiple over a four-year hold period.