Target Markets:
Areas within a 5-hour drive of Dallas/Fort Worth, including major secondary cities like Oklahoma City, Tulsa, Shreveport, Little Rock, Waco, Austin suburbs, San Antonio suburbs, Abilene, Midland-Odessa, and others.
Fast-growing suburban and exurban areas with favorable business climates and population increases.
Trends:
Surge in demand for 1,000–10,000 SF industrial units.
Retail centers increasingly populated by services such as medical, fitness, and food concepts.
Small and midsize businesses seeking affordable, flexible spaces outside major urban cores.
Competition:
Regional private equity groups.
Local private investors.
Some national REITs selectively moving into smaller markets but generally focusing on larger assets.
Strategy and Implementation
Acquisition Criteria:
Property size: 10,000 SF to 75,000 SF.
Price range: $1M to $15M per asset.
Occupancy: 50%–90% occupancy or repositioning opportunities.
Target returns: 7%–9% cash-on-cash; 14%–18% IRR.
Development Strategy:
Build-to-suit or speculative construction in underserved industrial parks or growing suburban areas.
Land sites between 1–10 acres with access to major roadways and proximity to workforce and consumers.
Operational Plan:
Leverage In-house acquisition, underwriting, asset management team, leasing and property management.
As the portfolio grows, utilize third-party leasing and management firms with strong local knowledge.
Focused property repositioning through targeted capital improvements, tenant mix optimization, and marketing initiatives.
Marketing Plan:
Direct broker outreach and off-market deal sourcing.
Strong regional presence through business and real estate events.
Professional online presence (website, LinkedIn, email campaigns) to attract both investors and tenants.
Financing Strategy:
Equity from private partners and family offices.
Moderate leverage (up to 65% LTV) using regional banks and credit unions.
Seek programmatic partnerships for scaled acquisition/development pipelines.
