315 Elizabeth Quiz 1

Study Notes

Investment Opportunity in Off-Market Industrial Property in Lenoir, NC

Rore Investing is purchasing an 800,000 sq ft rentable industrial property in Lenoir, NC for $4 million.
The property is already generating income from three long-term clients occupying over 224,000 sq ft.
The target rent of the property is $2.42 per sq ft, which is 69% lower than the average rent in the submarket.
The property is expected to generate $2.2+ million in annual revenue at an occupancy rate of 85%.
Rore Investing plans to invest $1.2 million in renovations by the end of Q4 2023, increasing the property value to $17.1 million.
The property is appraised "as is" for $9.8 million, over two times the purchase price.
Investors can expect a targeted internal rate of return (IRR) of 73% on this investment.
The property is located 1.5 hours from Charlotte with excellent accessibility to Highway 321.
Industrial rents in Caldwell County submarket run for about $4.10/SF, which is 69% higher than the target rent for this property.
In the past 10 years, rents in the submarket have cumulatively risen by 78.9%.
Investors can expect to earn a cash-on-cash return of 11% in the first year and 28% in the second year.
The investment plan includes a 24-month bridge loan at a rate of 12% with a refinance planned in year 3, by which point projected property value should be around $17 million.Rore History and Current Assets Summary
Rore Investments is a real estate investment firm based in Florida.
The company's current assets include warehouses, retail spaces, and hotels in various locations across the US.
Rore Investments has a history of successful sales, with some assets generating a return on investment of over 100%.
The company's current assets include a warehouse in High Point, NC, purchased for $1.9 million, and another warehouse in Hickory, NC, purchased for $2.55 million.
Rore Investments also owns a retail space in Tallahassee, FL, purchased for $960,000, and a hotel in Boynton Beach, FL, purchased for $8.8 million.
The company's largest hotel purchase was for a 152-room hotel in Miami, FL, for $15 million.
Rore Investments has sold assets such as hotels and multi-family properties, with some generating an equity multiple of over 2.
Sold assets include a hotel in Jacksonville, FL, purchased for $3 million and sold for $7.39 million, generating a 146% return on investment.
Another sold asset was a hotel in Windsor Locks, CT, purchased for $1.75 million and sold for $2.6 million, with a 49% return on investment.
Rore Investments also sold a multi-family property in Michigan for $2.9 million, generating a 123% equity multiple.
The company's most recent sold asset was a hotel in Jacksonville, FL, purchased for $3 million and sold for $5.5 million, with a 46.54% internal rate of return.
Overall, Rore Investments has a diversified portfolio of assets and a history of successful sales, making it a strong player in the real estate investment industry.