Property Details
Stabilized Occupancy 
Asset Profile
Core

Bunsen Distribution Center

Louisville, KY

Industrial Property
Poe Companies Louisville, KY
Poe Companies
  • IRR 14.75%
  • Equity Multiple 1.86x
  • Hold Period 3-5Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash 7.32%
  • Stabilized Cash on Cash 7.32% Y1
  • First Distribution Jan 2023
  • Distribution Frequency Quarterly
  • Co-Investment 15% ($975K)
  • Preferred Return 8%
  • Investor Profit Share See Financials
  • Asset Profile Core
  • Loan-to-Value 57%
  • Current Occupancy 100%

About this Property

"A 100% leased, cash flowing distribution center located in a fully occupied industrial park in Louisville Kentucky. Permanent financing is in place with a fixed rate of 3.35% and interest only until March 2023."

-Stephen Poe, Poe Companies

Property Address 10401 Bunsen Way
# of Tenants 3
Year Built 1972
Year Renovated 2021
Square Footage 184,925 sq. ft.
Current Occupancy 100%
Market Occupancy(1) 100%
Current Average Rents $5.245
Average Market Rents(2) $5.57
Purchase Price $14,850,000
Price/Sq. Ft. $80.58/Sq. Ft.
Stabilized Loan to Value 57%
(1) The Bluegrass Industrial Park sub-market has 100% occupancy. The Greater Louisville market vacancy is 1.5%
(2) Market rent for the Bluegrass Industrial Park sub-market is higher than the average market rent for the area due to the type of industrial product offered. The competitive set located within the Industrial Park averaged $5.57 market rent.

Top Questions

All answers are provided by the sponsor, Poe Companies, or its representatives.

Why are you buying this property?

Stephen Poe, Poe Companies: "Poe acquired the 184,925 sq. ft., unoccupied warehouse in September 2021 from an absentee owner. The location, within the well established Bluegrass Industrial Park in Louisville Kentucky, was ideal for subdividing the space in order to accommodate smaller tenants. Poe made improvements, subdivided the space and was fully leased in five months."

 

What are the most important aspects of this investment opportunity for the investors?

Stephen Poe, Poe Companies:

  • "Bunsen is fully leased & currently cash flowing"
  • "Quarterly Distributions"
  • "Attractive permanent financing in place"
  • "Ability to renegotiate rents in the future, provide upside as warehousing rents in the market continue to increase"

 

What is your investment strategy/business plan?

Stephen Poe, Poe Companies: "Maintain full occupancy of the property while increasing the rents as contracts are renegotiated. Rents in the market have increased 29% in the last five years. The location within the Bluegrass Industrial Park makes the asset valuable as no infill opportunities exist in this highly sought after area. The current industrial vacancy rate for Louisville in the second quarter was 1.5%, the lowest ever recorded in the market. Lease rates are predicted to keep increasing as space becomes scarce and construction costs increase."

 

What are the risks and how are you mitigating those risks?

Stephen Poe, Poe Companies: "There may be vacancy beyond the normal tenant turnover time. Appropriate reserves are in place to absorb the vacancy. Poe Companies maintains close relationships with brokers covering the Bluegrass Industrial Park in order to attract new tenants quickly."

"The building may require additional capital improvements or significant TI dollars to attract a new tenant. Poe is setting aside capital reserves to cover any improvements or TI needs."

How has COVID-19 impacted your business plan?

Stephen Poe, Poe Companies: "Covid-19 created ample opportunity in Louisville's industrial market. Poe Companies realized the shortage of available space prior to the pandemic and began shifting to industrial development. Covid-19 accelerated the shift in strategy as it became more apparent the industrial space was under-development in the greater Louisville area."

 

NOTE: All answers provided by the sponsor, Poe Companies, or its representatives.

About this Property

"A 100% leased, cash flowing distribution center located in a fully occupied industrial park in Louisville Kentucky. Permanent financing is in place with a fixed rate of 3.35% and interest only until March 2023."

-Stephen Poe, Poe Companies

Property Address 10401 Bunsen Way
# of Tenants 3
Year Built 1972
Year Renovated 2021
Square Footage 184,925 sq. ft.
Current Occupancy 100%
Market Occupancy(1) 100%
Current Average Rents $5.245
Average Market Rents(2) $5.57
Purchase Price $14,850,000
Price/Sq. Ft. $80.58/Sq. Ft.
Stabilized Loan to Value 57%
(1) The Bluegrass Industrial Park sub-market has 100% occupancy. The Greater Louisville market vacancy is 1.5%
(2) Market rent for the Bluegrass Industrial Park sub-market is higher than the average market rent for the area due to the type of industrial product offered. The competitive set located within the Industrial Park averaged $5.57 market rent.

Top Questions

All answers are provided by the sponsor, Poe Companies, or its representatives.

Why are you buying this property?

Stephen Poe, Poe Companies: "Poe acquired the 184,925 sq. ft., unoccupied warehouse in September 2021 from an absentee owner. The location, within the well established Bluegrass Industrial Park in Louisville Kentucky, was ideal for subdividing the space in order to accommodate smaller tenants. Poe made improvements, subdivided the space and was fully leased in five months."

 

What are the most important aspects of this investment opportunity for the investors?

Stephen Poe, Poe Companies:

  • "Bunsen is fully leased & currently cash flowing"
  • "Quarterly Distributions"
  • "Attractive permanent financing in place"
  • "Ability to renegotiate rents in the future, provide upside as warehousing rents in the market continue to increase"

 

What is your investment strategy/business plan?

Stephen Poe, Poe Companies: "Maintain full occupancy of the property while increasing the rents as contracts are renegotiated. Rents in the market have increased 29% in the last five years. The location within the Bluegrass Industrial Park makes the asset valuable as no infill opportunities exist in this highly sought after area. The current industrial vacancy rate for Louisville in the second quarter was 1.5%, the lowest ever recorded in the market. Lease rates are predicted to keep increasing as space becomes scarce and construction costs increase."

 

What are the risks and how are you mitigating those risks?

Stephen Poe, Poe Companies: "There may be vacancy beyond the normal tenant turnover time. Appropriate reserves are in place to absorb the vacancy. Poe Companies maintains close relationships with brokers covering the Bluegrass Industrial Park in order to attract new tenants quickly."

"The building may require additional capital improvements or significant TI dollars to attract a new tenant. Poe is setting aside capital reserves to cover any improvements or TI needs."

How has COVID-19 impacted your business plan?

Stephen Poe, Poe Companies: "Covid-19 created ample opportunity in Louisville's industrial market. Poe Companies realized the shortage of available space prior to the pandemic and began shifting to industrial development. Covid-19 accelerated the shift in strategy as it became more apparent the industrial space was under-development in the greater Louisville area."

 

NOTE: All answers provided by the sponsor, Poe Companies, or its representatives.

Offered By

Poe Companies

Poe Companies

Louisville, KY

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Assets Under
Management

Currently
$842.58MM 10+ assets
Exited
$293.65MM 10+ assets
Portfolio LTV
75%  
Historical
Realized Returns

Total IRR
26%  
Equity Multiple
2.29x  
Annual Cash
8%  
Years Of
Experience

As Principals
30+ years  
In Business
17 years  
Size
5 Staff * Dedicated investor relations
* All information is reported by Poe Companies as of 9/28/2022.
Assets Under
Management

Currently
$842.58MM 10+ assets
Exited
$293.65MM 10+ assets
Portfolio LTV
75%  
Historical
Returns

Total IRR
26%  
Equity Multiple
2.29x  
Annual Cash
8%  
Years Of
Experience

As Principals
30+ years  
In Business
17 years  
Size
5 Staff * Dedicated investor relations
* All information is reported by Poe Companies as of 9/28/2022.

Financials

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Offering Financial

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Location Details

Louisville, KY

Stephen Poe, Poe Companies: "Bunsen Distribution Center is located within the fully occupied Bluegrass Industrial Park in Louisville Kentucky. The Park is comprised of over 1,800 acres and has over 850 businesses with more than 38,000 employees. The Park's proximity to the major interstates and easy access to the airport, UPS and the Ford Truck Plant make the location ideal for leasing."

Documents

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Offering Agreement Documents

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