The Sponsor and asset manager is TenCal, LLC (“Sponsor”), an Alabama LLC formed in 2003 for the purpose of acquiring and managing income producing commercial properties. The Sponsors current portfolio includes industrial and office space in AL, TX, IN, NC and SC.
TenCal retains third party managers to provide day to day professional management for each of its properties. The principals of TENCAL provide continuous and on going asset management review for each property in the portfolio.
TenCal’s principals have over 75 years of experience acquiring, developing and operating commercial and industrial real estate. TenCal has historically raised capital from private investors for their acquisitions and have successfully raised $10,000,000 in equity capital acquiring ten (10) buildings, including the subject property. They currently operate our of Southern California and Tennessee.
The building is a 47,101 square foot industrial space built in 1989, located in an industrial park in Opelika, 10 miles east of Auburn, AL. The building includes 25,000 square feet of cooler space and 11,775 square feet of office space. Ceiling height ranges anywhere from 16 feet to 24 feet throughout the property. Additionally, the property includes 33 open parking spaces, 2 grade level overhead doors and 3 dock high overhead doors.
The property has been 100% leased for over twenty years to Adams Beverages, the local Anheuser-Busch distributor in business since 1937. Adams Beverage recently expanded with the purchase of the distribution rights to the Charlotte, NC market. Adams Beverage has annual revenues and Net Income of $150MM and $3.5MM, respectively.
The building is well maintained and would be difficult for the tenant to move and find comparable facilities. The appraiser estimates that the renewal probability incorporated within the market leasing assumptions has been estimated at 90%. This rate is considered reasonable based on the rent comparable data, a survey of market participants and the subject. RealtyMogul.com also conducted additional research in the market and did not locate any existing available properties with cold storage. Similar grade office buildings did not have the associated warehouse component and existing available warehouses lacked the high level of office finish of the current facility. Based on the available inventory, the ability to replace the existing facility with a comparable facility would seem to indicate that the tenant would need to construct a new facility or add cold storage and upgraded office to an existing industrial property. Both options would be a premium of the cost of a lease renewal.
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Sponsor is obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.