US Logistics Fund 1

Investing in Development Opportunities

Clayco and JE Thomas, CRE LLC are forming a new entity, BTC. BTC will be an affiliate of Clayco, Inc., a leading industrial design-builder in North America. BTC’s business purpose will be to invest and operate US Logistics Fund 1 (“USLF 1”) with the strategy of investing in industrial development opportunities with a network of experienced regional developers in the major markets of the United States. USLF 1 intends to enter strategic alliance agreements with a network of vetted developers across the United States, with the largest relationship being CRG.

Fund Investment Strategy:

Build-to-core industrial development in institutional markets.

  • Develop and hold first class bulk warehouse and distribution facilities serving high density population centers, primary logistics corridors and multi-modal transportation networks
  • Execute speculative, build-to-suit and redevelopment industrial investment strategies
  • Key members of GP, including Bob Clark and John Thomas, have significant personal investment alongside “Club” at above market co-investment standards
  • Limited and low fee structure, along with long term hold commitment post development by the General Partner, which we believe differentiates this offering from transaction oriented investment managers
  • Unique primary relationship with Clayco and CRG

Informed Investments

U.S. Logistics Fund 1 (USLF 1) creates value for institutional investor clients by making informed real estate investments in industrial properties. The fund seeks to invest in value-added acquisition and development of modern distribution facilities in core markets and strategic logistics locations throughout North America.
To date, USLF I has made investments in three CRG developments including:

  1. The Cubes at Bridgeport, a 1 million-square-foot speculative warehouse in the South I-85 Atlanta market
  2. The Cubes at DuPont, a 1.6-million- square-foot industrial park with 340,000 square feet of existing space and 1.25 million square feet of new development in the Seattle market
  3. The Cubes at Troutdale, a 350,000-square-foot speculative warehouse in the Portland market.
THE PROPERTY

Bridgeport Commerce Center (the “Property”) is a 1,002,150 square foot bulk distribution facility located immediately off of Interstate 85 in the South Atlanta submarket. Targeted for completion in the fourth quarter of 2018, we believe the Property is poised to capitalize on the user demand that we believe to be significant for mega bulk requirements in metro Atlanta, especially those exceeding 1 million square feet.

DEVELOPMENT RIGHTS

Currently, CRG retains the development rights to the remaining 462 usable acres in Bridgeport Commerce Center, approved for an additional 7.5 million SF of buildings. USLF 1, upon closing on Bridgeport Commerce Center, will retain the exclusive right to invest in the remaining developments with CRG.

DEAL HIGHLIGHTS
  • Site is fully entitled
  • Quick access from I-85 from new overpass bridge
  • State-of-the-art design and construction methods
  • Flexible site plan to accommodate wide variety of needs from bulk users to e-commerce companies
  • Located in one of the best submarkets in Atlanta
  • Underwriting assumptions:
    Cost: $45,400,000
    NOI: $3,043,530
    Yield: 6.7%
THE PROPERTY

DuPont Corporate Center is an opportunity in the Seattle market to acquire an existing 340,711-square-foot industrial building and develop two new distribution facilities totaling ~1,245,100 square feet. Seattle continues to experience strong user demand and market fundamentals. The Pacific Northwest is land-constrained with very high barriers to entry due to the combination of geographical barriers, physical constraints (topo, soils, residential zoning), zoning requirements and public opposition to large distribution warehouses.

SUMMARY OF OPPORTUNITY
  • USLF 1 acquired the 93-acre property in January 2018
  • Proceeding with demolition of existing office buildings
  • Immediately market the property; pursue BTS and speculative warehouse development in accordance with the attached site plan
  • Construct Building A comprising of ~750,200 SF and hold land for ~494,900 SF future Building B
  • Lease remaining 25% of the 340,711 SF existing industrial building
DEAL HIGHLIGHTS
  • Opportunity to develop large floor plate industrial buildings in Seattle market
  • Currently tracking several large user requirements with strong interest in property
  • All entitlements are in place for redevelopment
  • Demolition of office buildings in process
  • Underwriting Assumptions:
    Cost: $33.4 M (Existing), $69.7 M (Bldg A), $47.8 M (Bldg B)
    NOI: $1.83 M (Existing), $4.17 (Bldg A), $2.79 M (Bldg B)
    Yield: 5.5% (Existing), 6.0% (Bldg A), 5.8% (Bldg B)
THE PROPERTY

The Troutdale Commerce Center is a 349,080 square foot industrial development at the Troutdale Reynolds Industrial Park in Portland, OR. The park is located only 2 miles from I-84 and 10 miles from the Portland International Airport. Targeted for completion in the third quarter of 2019, we believe that the project is well-positioned to capitalize on what we believe to be strong leasing demand in a land constrained market. The building will be designed for last mile distribution uses. The property is located across the street from two new under construction developments for FedEx Ground and Amazon.

DEAL HIGHLIGHTS
  • Last mile strategy
  • Troutdale Reynolds Industrial Park is the new home to a 500,000 SF FedEx Ground facility and an 885,000 SF Amazon sorting facility
  • State-of-the-art building with 36’ clear height
  • Assumptions:
    Cost: $33,300,000
    NOI: $2,045,035
    Yield: 6.14%
EXISTING WAREHOUSE
  • The property is currently 75% leased to Carlson Pet/Regalo (65% 2025 term) & Alliance Enterprises (10% 2020 term)
  • 86,000 SF available
  • Single loaded building with 28’ clear height
  • 40’ x 50’ column spacing
  • Excess electrical service
  • 41 trailer stalls
  • 35 dock doors plus 3 drive-in doors
  • 181 car parks