315 Elizabeth Street NW Business Plan PDF

315 Elizabeth Street NW Lenoir NC 28645 107% Target Investor Avg Annual Return 73% Target Net Investor IRR 4.8 Target Net Investor Equity Multiple 20% Target Avg Investor Cash on Cash until Refi 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL Updated May 23, 2023 1:00am EST May...

315 Elizabeth Street NW Lenoir NC 28645 107% Target Investor Avg Annual Return 73% Target Net Investor IRR 4.8 Target Net Investor Equity Multiple 20% Target Avg Investor Cash on Cash until Refi 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL Updated May 23, 2023 1:00am EST May 23, 2023 Closing Date Table of Contents Investment Highlights 3 Rent Analytics 4 Investment Details 5 About Rore Investing 6 Property Images & Floor Plan 7 Location 15 Financial Projections 16 Rent Roll & About the Tenants 19 Projected Income & Expenses 21 Sale Comparables 22 Rore History 22 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 2 Investment Highlights Off-market industrial property with an 800,000 sq foot rentable building area being purchased for $4 million. TARGET INVESTOR RETURNS Only $5 per square foot of rentable building area 20% AVG CASH-ON-CASH YIELD Average rent for industrial space in the submarket is 69% higher than this property's target rent of $2.42 per sq ft 73% IRR In the last 12 months, the rental rates in the submarket have increased by 13%, surpassing the average annual growth rate of 5.7% observed over the previous ten years 4.8 Appraised "as is" for $9.8m, over two times the purchase price AVG. ANNUAL RETURN Located 1.5 hours from Charlotte with excellent accessibility to Highway 321 Already generates income from three long term clients occupying over 224,000 sq feet. Planned renovation in Q4 2023 to attract more tenants 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL EQUITY MULTIPLE 107% INVESTOR DISTRIBUTIONS 7% PREF (ANNUAL DIVIDEND) - MONTHLY 70% PROFIT - QUARTERLY 3 Rent Analytics by According to CoStar, Industrial rents in Caldwell County (property submarket) run for about $4.10/SF 69% higher than our target average rent. A similar pattern holds for logistics space, rents at $4.30/SF. In Caldwell County rents grew by a remarkable 13.0% over the past year, which brought the three-year average annual rent growth up to 8.5%. Over a longer horizon, industrial rent growth in both the Caldwell County Submarket and the Hickory metro at large has been nothing short of sensational. In the past 10 years, rents in the submarket have cumulatively risen by 78.9%, a performance essentially matched when zoomed out to the entire Hickory metro. In Hickory NC Rents have grown 12.4% over the past 12 months, an eye-popping figure. 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 4 Investment Details This complex’s buildings have a combined 800,000 square feet of rentable space with 120,000 square feet already being leased (see rent roll). The price per square foot of rentable area is only $5 . To attract tenants and increase the rent, our plan is to invest $1.2m in renovations by the end of Q4 2023 increasing property value to $17.1m. At an occupancy rate of 85%, the property is expected to generate $2.2+ million in annual revenue. Investors can expect to earn profits comparable to those earned by developers with a targeted internal rate of return (IRR) of 73% on this investment. The risk and cost associated with this investment are lower than that of development as the property is expected to generate cash flow in the first year. Investors can expect to earn a cash-oncash return of 11% in the first year and 28% in the second year. STRUCTURE DETAILS 315 Elizabeth Street NW, Lenoir NC 28645 Class B Industrial 31 ACRES 4,000 sq ft Office 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 1900/1980 8’-20’ (Ceiling Ht) 10 Docks 210 Spaces 5 About Rore Investing Total Asset Value Historical Equity Multiple $300m+ 1.91 Historical IRR 30% Rore Investing is a real estate investment company based in Jacksonville, FL, managing a portfolio of over $300 million in assets, including hotels, industrial and retail properties. Our primary objective at Rore Investing is to offer investors access to high-quality investments that are managed with unwavering standards of professionalism, integrity, and transparency. EXPERIENCE ETHICS For nearly two decades, Rore Investing has acquired, repositioned, developed & managed real estate assets & increased client ROI consistently over time. Rore Investing has been recognized by the press and state and local officials for its contributions to the State of Florida and the communities in which its assets are located REPUTATION DIVERSE INVESTMENTS Rore Investing has developed a strong reputation for creating value by repositioning under-utilized, mismanaged, and/or underperforming properties. Rore Investing is focused on acquiring assets in all sectors, with a particular interest in industrial, hotel and multi-family 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 6 Location Lenoir is a city located in Caldwell County North Carolina. It is also the county seat of Caldwell County. With a 2023 population of 18,127, it is the 57th largest city in North Carolina. Lenoir is one of the principal cities in the Hickory-Lenoir-Morganton, NC Metropolitan Statistical Area. The city is at the intersection of U.S. Highways 64 and 321. Employment in the area was recently increasing at an annual rate of 2.6%, or a gain of about 3,900 jobs. 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 15 Financial Projections PURCHASE DETAILS Purchase Price Closing Cost Interest Reserve Construction TARGET INVESTOR RETURNS $4,000,000 $296,000 $52,000 $1,252,000 Total Project Cost $5,600,000 Deal Equity $3,000,000 Avg Cash on Cash 23% Internal Rate of Return 76% Equity Multiple 4.91 Avg Annual Return 110% INVESTOR DISTRIBUTIONS Pref (Annual Dividend) Profits 7% 70% The 7% Pref return is an annual dividend that is owed even if not earned. For example if investment is $100k, the 7% Pref would $7k annually. Pref is paid monthly from time the property is profitable. In addition to 7% Pref distributions, investors receive 70% of all profits (paid quarterly). Construction costs are necessary for repairs on the roof and other essential structures. We have 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 $17m. 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 16 Financial Projections INITIAL BRIDGE LOAN PROJECTED SALE ASSUMPTION Loan Amount $2,600,000 Loan to Value 65.0% Closing Cost Rate 12.00% Debt Payoff $9,805,285 Net Proceeds $8,467,443 Amortization Annual Debt Service DSCR Interest Only $312,000 2.09 PROJECTED REFINANCE LOAN TERMS Loan Amount $10,291,959 Loan to Value 60% Rate Amortization Annual Debt Service DSCR 7.50% 25 $912,680 1.60 Sale Price $18,837,864 $565,136 Equity Capture Surplus $0 $8,467,443 PROJECTED REFINANCE & CASHOUT Refi Loan Closing Cost $10,291,959 $308,759 Debt Payoff $2,600,000 Equity Capture $3,000,000 Net Proceeds $4,383,200 Remaining Equity 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL $0 17 Financial Projections TARGET DEAL RETURNS Year 1 Year 2 Year 3 Year 4 Year 5 Deal Equity $3,000,000 $3,000,000 $0 $0 $0 Cash Flow $380,980 $1,127,292 $584,054 $631,191 $679,793 Surplus Annual Cash Flows Annual Cash on Cash Yield $7,254,916 $380,980 $8,382,207 12.70% 37.58% $8,359,808 $584,054 $631,191 $9,039,601 TARGET INVESTOR RETURNS Year 1 Deal Equity Year 2 Year 3 Year 4 Year 5 $3,000,000 $3,000,000 $0 $0 $0 Pref $210,000 $210,000 $0 $0 $0 Promote $119,686 $642,104 $408,838 $441,834 $475,855 Surplus Annual Cash Flows Annual Cash on Cash Yield $5,978,441 $329,686 $6,830,545 10.99% 28.40% $5,851,866 $408,838 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL $441,834 $6,327,721 18 Rent Roll PRO FORMA / PROJECTED RENT ROLL UNIT FLOOR TENANT NAME SQFT % MONTHLY RENT ANNUAL RENT RENT PSF LEASE START LEASE END RENT INCREASE 1 Building Chase Corp 24,800 3.10% $6,500 $78,000 $3.15 5/22/23 5/22/26 3.0% 2 1st floor Wealth Assistants 79,700 9.96% $19,925 $239,100 $3.00 5/22/23 5/22/26 3.0% 3 1st floor 100,000 12.50% $25,000 $300,000 $3.00 3.0% 4 1st floor 100,000 12.50% $25,000 $300,000 $3.00 3.0% 5 1st floor 100,000 12.50% $25,000 $300,000 $3.00 3.0% 6 2nd & 3rd floor 120,000 15.00% $25,000 $300,000 $2.50 7 2nd & 3rd floor 100,000 12.50% $20,833 $250,000 $2.50 3.0% 8 90,000 11.25% $7,500 $90,000 $1.00 3.0% 9 90,000 11.25% $7,500 $90,000 $1.00 3.0% TOTAL Universal Furniture 800,000 100.0% 4/15/23 4/14/24 3.0% $ 162,917 $1,955,000 Avg Rent Per Sq Ft: $2.42 Caldwell County Average: $4.10 per sq ft 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 19 About the Tenants Occupying 120,000 sq ft Occupying 79,700 sq ft Universal Furniture is a luxury furniture manufacturer with a nearby 115,000 sq ft showroom in High Point, NC. Wealth Assistants is an e-commerce management agency helping people acquire, build, scale, maintain their online ecommerce businesses in a done-for-you approach. universalfurniture.com wealthassistants.com Occupying 25,000 sq ft (Stand-alone building) Global chemicals company founded in 1946 and employing nearly 800 people. chasecorp.com 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 20 Projected Income & Expenses PROJECTED INCOME & EXPENSES Year 1 Year 2 Year 3 Year 4 INCOME Base Income: Year 5 $1,063,480 $1,991,608 $2,051,356 $2,112,897 $2,176,284 $287,500 $586,500 $598,230 $610,195 $622,398 $0 ($386,716) ($397,438) ($408,464) ($419,802) $1,350,980 $2,191,392 $2,252,148 $2,314,628 $2,378,880 Property Taxes $55,000 $56,100 $57,222 $58,366 $59,534 Insurance $80,000 $81,600 $83,232 $84,897 $86,595 Water (Electric separate metered) $40,000 $40,800 $41,616 $42,448 $43,297 Management $55,000 $84,000 $85,680 $87,394 $89,141 Administrative/Payroll $200,000 $204,000 $208,080 $212,242 $216,486 R&M / Contracted Services $200,000 $204,000 $208,080 $212,242 $216,486 Reserves $80,000 $81,600 $83,232 $84,897 $86,595 Total Expenses $710,000 $752,100 $767,142 $782,485 $798,135 Expense/Income Ratio 52.6% 34.3% 34.1% 33.8% 33.6% Net Operating Income $640,980 $1,439,292 $1,485,006 $1,532,143 $1,580,745 $16,932,845 $17,470,662 $18,025,211 $18,597,005 $260,000 $312,000 $900,952 $900,952 $900,952 2.47 4.61 1.65 1.70 1.75 Expense Reimbursement: Vacancy (15.0%) Total Income EXPENSES Value Cap Rate 8.50% Debt Service DSCR 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 21 Sale Comparables ADDRESS CITY TYPE RENTABLE AREA SF SALE PRICE PRICE/SF CLOSING DATE 1201 Advantage Ct Lenoir Industrial 144,000 $6,500,000 $45.14 12/29/2022 1439 Blowing Rock Lenoir Industrial 79,047 $2,600,000 $32.89 11/17/2022 2415 Watson St Lenoir Industrial 117,600 $5,000,000 $42.52 12/27/2022 1216 Harper Ave Lenoir Industrial 9,462 $167,000 $17.65 11/9/2022 585 11th Street NW Hickory Industrial 74,356 $2,550,000 $34.29 4/10/2023 Industrial 46,500 $1,900,000 $40.86 3/31/2023 1415 S Elm St High Point Greensboro 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 22 Rore History Selection of Current Assets ASSET High Point, NC Warehouse 1415 S Elm Street, High Point NC Hickory, NC Warehouse 585 11TH ST Hickory, NC 28601 Jacksonville Shopping Center 5200 Pearl Street, Jacksonville, FL LaQuinta Hotel coral springs 3100 N University Dr, Coral Springs LaQuinta Hotel Plantation FL 8101 Peters Rd, Plantation, FL 33324 LaQuinta Hotel West Palm Beach 5981 Okeechobee Blvd, West Palm Beach, FL LaQuinta Hotel East Miami 3501 NW 42nd Ave, Miami LaQuinta Hotel North Miami 7401 NW 36th St, Miami TYPE PURCHASE DATE PURCHASE PRICE MANAGED BY RORE Warehouse 4/19/23 $1,900,000 YES Warehouse 4/10/23 $2,550,000 YES Retail 12/6/22 $5,357,000 YES Hotel 11/1/22 $11,675,000 YES 103 Hotel 11/1/22 $14,875,000 YES 131 Hotel 11/1/22 $12,950,000 YES 114 Hotel 8/30/22 $17,000,000 YES 152 Hotel 8/25/22 $15,000,000 YES 165 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL ROOMS 23 Rore History Selection of Current Assets (contd) ASSET West Memphis Riverbend Apartments 396 South Avalon Street, West Memphis, AR Jacksonville Beach Blvd Shopping 6532 Beach Blvd, Jacksonville, FL Rore Retail 4726 4747 Crawfordville Rd, Tallahassee, FL HOMING INN 2821 S Federal Hwy, Boynton Beach, FL QUALITY INN / I DRIVE 5858 International Dr, Orlando FL Ramada Jacksonville 9150 Baymeadows Road Jacksonville FL TYPE PURCHASE DATE PURCHASE PRICE MANAGED BY RORE Multi-family 11/30/22 $6,550,000 No Retail 5/16/22 $960,000 YES Retail 9/20/22 $2,550,000 YES Hotel 8/22/22 $ 8,800,000 YES 103 Hotel 3/31/22 $ 16,000,000 YES 265 Hotel 7/7/21 $ 8,220,000 YES 150 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL ROOMS 24 Rore History Selection of Sold Assets ASSET Extended Stay Jax 1057 Broward Rd Jacksonville, FL Diamond Inn 5929 Ramona Blvd Jacksonville, FL Extended Stay Memphis 5225 Summer Ave Memphis, TN Value Lodge Busch Gardens 210 E Fowler Ave Tampa, FL Best Stay America 8220 Dix Ellis Trail Jacksonville, FL Econo Lodge 2535 FL 16 St Augustine, FL Gold Rush 10885 Harts Rd Jacksonville, FL Magnuson Hotel 383 S Center St Windsor Locks, CT Lapeer Gardens 2324 Lapeer Road Flint Mi Richfield Apt 3281 Richfield Ct Flint, MI TYPE PURCHASED PURCHASE DATE PRICE SALE DATE SALES PRICE EQUITY MULTIPLE IRR ROI Hotel 6/19/2020 $ 3,000,000 3/10/2021 $ 7,388,800 2.46 146% 146.29% Hotel 1/19/2016 $ 1,200,000 1/8/2019 $ 4,500,000 3.75 55% 275.00% Hotel 7/14/2020 $ 1,200,000 2/24/2022 $ 3,500,000 2.92 34% 191.67% Hotel 6/17/2020 $ 5,500,000 3/10/2021 $ 7,350,000 1.34 34% 33.64% Hotel 3/31/2020 $ 2,000,000 10/30/2022 $ 3,250,000 1.62 27% 61.54% Hotel 11/19/2020 $ 4,200,000 3/16/2022 $ 5,350,000 1.27 13% 27.38% Hotel 4/17/2019 $ 2,200,000 2/26/2021 $ 3,100,000 1.41 19% 40.91% Hotel 1/24/2019 $ 1,750,000 9/19/2019 $ 2,600,000. 1.49 49% 48.57% Multi 2016 $ 1,300,000 2018 $ 2,900,000 2.23 123% 123.08% Multi 2016 $ 1,250,000 2018 $ 2,700,000 2.16 116% 116.00% 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 25 Rore History Selection of Sold Assets ASSET TYPE PURCHASED PURCHASE DATE PRICE SALE DATE SALES PRICE EQUITY MULTIPLE IRR ROI COUNTRY INN 4690 Salisbury Road, Jacksonville, Hotel 7/28/2022 $ 7,100,000 9/28/2022 $ 7,300,000 1.09 18.14% 9.50% Hotel 6/19/2020 $ 3,000,000 3/10/2021 $ 7,388,800 2.46 146% 146.29% Hotel 7/17/2019 $ 2,550,000 3/31/2022 $ 3,150,000 1.23 9.85% 23.53% Hotel 6/30/2021 $ 4,000,000 10/30/2022 $ 5,500,000 1.41 41% 40.50% Hotel 8/1/2021 $ 3,000,000 6/7/2022 $ $5,500,000 1.37 46.54% 37.50% Hotel 1/1/2022 $ 5,250,000 5/31/2022 $ 7,000,000 1.33 33% 33.33% Multi 2016 $ 1,300,000 2018 $ 3,400,000 2.62 61.72% 161.54% Hotel 9/1/2021 $ 1,250,000 6/8/2022 $ 7,200,000 1.2 20% 20.00% Hotel 6/17/2020 $ 5,500,000 3/10/2021 $ 7,350,000 1.34 34% 33.64% Multi 5/1/2021 $ 1,200,000 8/3/2022 $ 1,850,000 1.54 41.38% 54.17% 32256 EXTENDED STAY JACKSONVILLE 1057 Broward Rd Jacksonville, FL BEST AIRPORT INN JACKSONVILLE, FL 1077 Airport Road Jacksonville, FL ZEN LIVING SUITES 5649 Cagle Road Jacksonville, FL ZEN LIVING SUITES 335 Eldridge Ave Orange Park, FL QUALITY INN 1351 Airport Road Jacksonville, FL SUNSET APARTMENTS 348 Bradley Ave Flint, MI TERRACE GARDENS 21252 US Hwy 19 N Clearwater, FL VALUE LODGE BUSCH GARDENS 210 E Fowler AveTampa, FL VESTA APTS 1818 Vesta Ave Atlanta, GA 315 Elizabeth LLC Business Plan (Addendum A) | CONFIDENTIAL 26