Property Details
Below Market Occupancy  Repositioning Opportunity  NOI Growth 
Asset Profile
Value Add

Last Mile E-Commerce Industrial Center – Swedesboro, NJ

Swedesboro, NJ

Industrial Property

This deal is oversubscribed

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The O'Donnell Group Newport Beach, CA
The O'Donnell Group
Targets See Definitions  
  • IRR 26.1%
  • Equity Multiple 1.58x
  • Hold Period 1-2Y
  • Minimum Investment $25K
  • Year 1 Cash on Cash N/A
  • Stabilized Cash on Cash 7.67% Y2
  • First Distribution Sep 2021
  • Distribution Frequency Quarterly
  • Co-Investment 5%
  • Preferred Return 10%
  • Investor Profit Share 75%
  • Asset Profile Value Add
  • Loan-to-Value 89%
  • Current Occupancy See Note

About this Property

"The Industrial project, located at 52 Locke Avenue Swedesboro NJ, consists of 207,500 square feet on 12.4 acres. The business plan is to buy the asset, reposition it (new paint, new landscaping, repaving exterior premises, new lights, and new offices), lease, and sell it."

-Douglas O'Donnell, The O'Donnell Group

Address 52 Locke Ave
Square Footage 207,500 sq. ft.
Year Built 1950
Year Renovated 2020-2021
Current Occupancy See Note*
Market Occupancy 95.2%
Current Average Rents $5.15/Sq. Ft.
Average Market Rents $5.50/Sq. Ft.
Purchase Price $11,650,000
Price/Sq. Ft. $56.14/Sq. Ft.
Stabilized Loan to Value 52.22%
*"At closing, the property will be leased back by the seller until February of 2021.
The seller is the tenant and they are relocating to another building that they are purchasing."

Top Questions

All answers are provided by the sponsor, The O'Donnell Group, or its representatives.

 

Why are you buying this property?

Douglas O'Donnell, The O'Donnell Group: "The property is strategically located in the north east corridor between Philadelphia and Baltimore. It has excellent access to the I-295 and NJ turnpike. It has high ceilings clearance heights ranging from 25 feet- 30 feet and an abundant amount of loading doors. The building is very functional and due to the low coverage it affords ample out door trailer storage, staging, and car parking- which are required by todays e-commerce tenants. The building is also rail served."

 

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

Douglas O'Donnell, The O'Donnell Group: "The O'Donnell Group plans to modernize the existing building, which is very functional as is, with capital improvements. They are going to fix up the property and then lease and sell it to an investor or user. The building has a brand new roof."

 

How has COVID-19 impacted your business plan?

Douglas O'Donnell, The O'Donnell Group: "Covid has positively impacted industrial real estate as more and more people buy their goods online instead of retail and grocery stores."

 

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

Douglas O'Donnell, The O'Donnell Group:

  • "Repositioning cost over runs - Mitigating by procuring bids from qualified contractors prior to close. The O'Donnell Group also has a large contingency in place."
  • "Leasing taking longer than anticipated - The O'Donnell Group expects it to take 6 months to lease, but they are accounting for a year in case it takes longer."
  • "The O'Donnell Group has been conservative in the anticipated lease rate ($5.15) and the exit cap rate of 5.5."

 

NOTE: All answers provided by the sponsor, The O'Donnell Group, or its representatives.

Investment Image - Last Mile E-Commerce Industrial Center – Swedesboro, NJ Investment Image - Last Mile E-Commerce Industrial Center – Swedesboro, NJ Investment Image - Last Mile E-Commerce Industrial Center – Swedesboro, NJ Investment Image - Last Mile E-Commerce Industrial Center – Swedesboro, NJ Investment Image - Last Mile E-Commerce Industrial Center – Swedesboro, NJ

About this Property

"The Industrial project, located at 52 Locke Avenue Swedesboro NJ, consists of 207,500 square feet on 12.4 acres. The business plan is to buy the asset, reposition it (new paint, new landscaping, repaving exterior premises, new lights, and new offices), lease, and sell it."

-Douglas O'Donnell, The O'Donnell Group

Address 52 Locke Ave
Square Footage 207,500 sq. ft.
Year Built 1950
Year Renovated 2020-2021
Current Occupancy See Note*
Market Occupancy 95.2%
Current Average Rents $5.15/Sq. Ft.
Average Market Rents $5.50/Sq. Ft.
Purchase Price $11,650,000
Price/Sq. Ft. $56.14/Sq. Ft.
Stabilized Loan to Value 52.22%
*"At closing, the property will be leased back by the seller until February of 2021.
The seller is the tenant and they are relocating to another building that they are purchasing."

Top Questions

All answers are provided by the sponsor, The O'Donnell Group, or its representatives.

 

Why are you buying this property?

Douglas O'Donnell, The O'Donnell Group: "The property is strategically located in the north east corridor between Philadelphia and Baltimore. It has excellent access to the I-295 and NJ turnpike. It has high ceilings clearance heights ranging from 25 feet- 30 feet and an abundant amount of loading doors. The building is very functional and due to the low coverage it affords ample out door trailer storage, staging, and car parking- which are required by todays e-commerce tenants. The building is also rail served."

 

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

Douglas O'Donnell, The O'Donnell Group: "The O'Donnell Group plans to modernize the existing building, which is very functional as is, with capital improvements. They are going to fix up the property and then lease and sell it to an investor or user. The building has a brand new roof."

 

How has COVID-19 impacted your business plan?

Douglas O'Donnell, The O'Donnell Group: "Covid has positively impacted industrial real estate as more and more people buy their goods online instead of retail and grocery stores."

 

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

Douglas O'Donnell, The O'Donnell Group:

  • "Repositioning cost over runs - Mitigating by procuring bids from qualified contractors prior to close. The O'Donnell Group also has a large contingency in place."
  • "Leasing taking longer than anticipated - The O'Donnell Group expects it to take 6 months to lease, but they are accounting for a year in case it takes longer."
  • "The O'Donnell Group has been conservative in the anticipated lease rate ($5.15) and the exit cap rate of 5.5."

 

NOTE: All answers provided by the sponsor, The O'Donnell Group, or its representatives.

Offered By

The O'Donnell Group

The O'Donnell Group

Newport Beach, CA

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Assets Under
Management
Currently
$206MM 10+ assets
Exited
$230MM 20+ assets
Portfolio LTV
47%  
Historical
Realized Returns
Total IRR
40%  
Equity Multiple
2.62x  
Annual Cash
6.8%  
Years Of
Experience
As Principals
20+ years  
In Business
49 years  
Size
5 Staff  
* All information is reported by The O'Donnell Group as of 11/15/2020.
Assets Under
Management
Currently
$206MM 10+ assets
Exited
$230MM 20+ assets
Portfolio LTV
47%  
Historical
Returns
Total IRR
40%  
Equity Multiple
2.62x  
Annual Cash
6.8%  
Years Of
Experience
As Principals
20+ years  
In Business
49 years  
Size
5 Staff  
* All information is reported by The O'Donnell Group as of 11/15/2020.

Financials

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Offering Financial

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Diligence Preview

Location Details

Swedesboro, NJ

Douglas O'Donnell, The O'Donnell Group: "The property is strategically located in the north east corridor between Philadelphia and Baltimore. It has excellent access to the I-295 and NJ turnpike."

Documents

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Offering Agreement Documents

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