Norfolk Shallow-Bay Industrial Portfolio - Recap

Jones Lang LaSalle Americas, Inc. (“JLL”), a licensed real estate broker, has been retained on an exclusive basis to arrange the recapitalization of the Norfolk Portfolio (the “Portfolio”), located in Norfolk, Chesapeake, Hampton, Virginia, and Rockledge, Florida. The offering represents a critical mass of shallow bay industrial assets, allowing qualified investors the opportunity to recapitalize a multi-tenanted shallow bay portfolio, located in prime southeast, high barrier-to-entry and supply-constrained markets, with a best-in-class sponsor. With over nine million square feet of assets under management, B&D Holdings (“B&D”), a seasoned investor and operator of infill multi-tenant industrial properties nationally, is one of the largest landlords in the Norfolk submarket. The Portfolio – consisting of 580,551 rentable square feet across seven properties situated within established industrial parks – is currently 98% leased to 15 tenants with a weighted-average in-place net rent approximately 86% below market rents. Moreover, 75% of the total rentable square footage is tied to leases that will expire before 2027, resulting in a weighted-average lease term (WALT) of 2.2 years*. The Offering presents an exceptional opportunity to continue implementing sponsorship’s proven business plan, marking in-place rents to market upon tenant lease expirations and converting the remaining leases on modified gross reimbursement structures to true triple-net (NNN) leases. Situated in the irreplaceable and rapidly growing markets of Hampton Roads, Virginia and Space Coast, Florida, the Portfolio’s location provides direct connectivity to each MSA’s abundant consumer base and transportation infrastructure.

The Norfolk Portfolio offers a unique opportunity for a potential investor to recapitalize a critical mass of highly functional, shallow bay product at scale in various supply-constrained markets benefiting from significant upside potential and consistent tenant demand.