Case Study- Crosswinds II
Crosswinds II (Business Park)
Prevail Real Estate Opportunities is pleased to present AMG Crosswinds, LLC (“Crosswinds II), an exclusive opportunity to own a 90% stake in Crosswinds Business Park Building II, LLC which will develop and own a 221,000 SF industrial development in Ankeny, IA.
Crosswinds II is the second building developed by Hubbell Development in the master-planned Crosswinds business park located NE of Des Moines. The development and surrounding areas feature strong local, regional, and national tenants and the building will benefit from the recent success and leasing interest from the first development, Crosswinds I.
If you have any questions, please reach out to your advisor or contact Regan Smith at rsmith@prevailiws.com
Investor Return Summary*
- Average LP Total Return: 30%
- Cash on Cash: 8.54%
- Asset sold in 13 months
Investment Snapshot
- Total Project Cost $19,198,750
- Total Equity $4,848,750
- Initial Loan: $14,350,000
- Minimum Investment 1%: $50,000
- Sq Ft of bldg: 221,000
Investment Highlights
- The Project – The building will feature 30 dock high doors, 32’ clear heights and ESRF sprinklers. The building is planned as 13,000 SF bays featuring 2 dock high doors and an optional 3rd. The building is designed to attract major distribution tenants while maintaining flexibility to support smaller multi-tenant spaces.
- Diverse Return Option – Ideally a short hold of 36 months and a sale after lease up. If market conditions change, the asset could provide for a long-term yield of greater than 8.5% annually.
- New Product Ahead of Competition – Des Moines area industrial market has 5.4% vacancy and little under construction, there is growing demand for industrial product and supply has not caught up. Project is scheduled to be completed prior to any competitive upcoming build projects.
- Strong Location/Class A Metrics – Crosswinds business park is master planned 400-acre site at intersection of I-35 and I-80. Des Moines has strong local demand which increased in “last mile” subsector. It is adjacent to Ankeny Regional Airport and in close proximity to a strong employment base in greater Des Moines. New construction features top tier amenities and clear span location at major nationwide interstates intersection.
- Tax abatement – The development will benefit from a 6-year tax abatement with estimated savings totaling over $750,000.
- Strong Developer – Since 1850, Hubbell Realty Company has been a growth catalyst in Des Moines and is a premier developer of commercial and residential real estate. Most recently, Hubbell developed Crosswinds I and is in the final stage of finalizing a lease with a national credit tenant and will immediately sell for attractive returns.
*These are all preliminary estimates, with no guarantee of performance, and involve risk.
Company Info
This communication is neither an offer to sell nor a solicitation of an offer to buy any security. An offer may only be made via a written offering document by Prevail Alternative Assets, LLC (“Prevail”). Prevail will provide such offering documents (“Documents”) only to qualified accredited investors and has prepared this communication solely to enable you to determine whether you are interested in receiving additional information about it or the real estate project summarized above (the “Project”). This communication must be read in conjunction with the Documents prior to making any investment decision. Information about the Project contained herein has not been audited or reviewed by any third party. While projections about the Project’s future performance is based on Prevail’s experience and good faith judgments, the recipient should understand that projections are based on numerous assumptions, including that the current economic environment continues, that existing asset performance trends will continue to track business plans, that historical behavior of the Project’s property type will not change, that perception of market opportunities for disposition will hold true, and that the competitive landscape within which the Project operates will not change. Returns to investors would be contingent upon numerous events occurring and subject to considerable risks. Significant assumptions were made by Prevail to calculate the presented projections, including assumptions on the amount of leverage used by the Project, the Project having sufficient assets and cashflows, debt service and capital expenditures, the continuation of favorable leasing terms, the operating costs for the Project, the costs of taxes and insurance, the absence of claims against the Project, that lease terms (including rental rates) continue, that projected occupancy and rollover rates continue, that management and other expenses remain constant, and that property-level debt will not need to be refinanced at less favorable terms.
The Project’s future capitalization will be contingent upon numerous events occurring and subject to considerable risks. The occupancy and rollover rates of the Project will be dependent upon many factors beyond the control of the Project or Prevail. Any expression of targeted rates is merely a statement of a goal. Significant assumptions were made by Prevail to calculate the presented occupancy and rollover rates. Many factors can impact the Project’s after-tax returns, including the risk that tax laws may change. A myriad of factors may impact the Project’s ability to achieve any returns. Any number of factors could contribute to results that are materially different. All investment opportunities presented by Prevail involve substantial risk and may result in the loss of some or all of your investment. Please do not forward this email.
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