2788 & 2794 N Larkin Avenue

92%-LEASED NNN INDUSTRIAL OPPORTUNITY WITH UPSIDE
* ATTRACTIVE COLD STORAGE/FOOD PROCESSING OFFERING: This is an attractive investment opportunity in one of the fastest-growing real estate markets in the Western United States. The asset is in the heart of California’s distribution and agricultural cluster in Central Valley, next to a multi-modal transportation system with abundant surrounding amenities and investment upside.

* STABLE RENT ROLL WITH INCOME GROWTH: The NNN leases provide ease of ownership and the 92%-leased rent roll provides an attractive income stream with annual increases. In-place rent growth during hold period would dampen any future deflationary concerns.

* ZERO NEAR-TERM ROLLOVERS: Rollovers of existing tenants won't take place until June of 2027. New ownership would be protected by controlled rollover exposures while enjoying durable cash flow during the investment period.

* HIGHLY-INVESTED TENANCY: Made in Nature, the anchor tenant who occupies ~80% of the rentable area, uses the asset as a packaging and distribution facility for its products. The tenant has significantly invested in specialized equipment, including cold storage components to operate its food business. Such investment would be prohibitive to re-create elsewhere.

* VALUE-ADD PROPOSITION: In-place rents are ±19% below market. The average weighted remaining lease term totaling 3.3 years, alongside strong industrial rent growth projection in Fresno, would significantly lift yields with future rollovers.

ATTRACTIVE MARKET FUNDAMENTALS
* EMERGING MARKET POTENTIAL: Fresno is one of the fastest-growing industrial markets on the West Coast, reflecting the county’s strong absorption, low vacancy and sustained rent growth. With growing industries and an attractive, low-cost quality of life, Fresno is well-positioned to absorb the out-migration taking place among coastal cities.

* TIGHT MARKET FUNDAMENTALS: Fresno has one of the tightest industrial markets in California, with a vacancy of 2.7% as of 4Q23. With limited availability and low construction, investors and tenants entering the Fresno industrial market face an incredible challenge given growing demand.

* STRONG PROJECTED GROWTH: According to the California Employment Development Department, Fresno County is projected to add 140,000 new jobs over the next 10 years. Fresno’s industrial rent growth is projected to be among the highest among non-coastal areas on the West Coast, at more than ±26% over the next three years, according to CoStar.

STRATEGIC CENTRAL VALLEY LOCATION WITH STRONG INFRASTRUCTURES
* HIGH DESIRABLE ECONOMICS: Well-known as an agricultural center that “feeds America,” Fresno offers a highly affordable quality of life, attractive demographics, strong educational and transportation infrastructures that would allow businesses to excel in the marketplace.

* MULTI-MODAL TRANSPORTATION INFRASTRUCTURES: The asset’s location is exceptionally served by a multimodal transportation network that includes direct access to California’s major North-South freeway corridors (SR-99 and I-5), nearby rail lines, and the adjacent Fresno-Yosemite International Airport. Property enjoys one of the most direct routes to Los Angeles and Sacramento.

* EXCEPTIONAL BUSINESS COMMUNITY: Fresno is a business-friendly municipality, attracting a host of companies across industries outside of agriculture. For example, the city is home to major fulfillment centers for Amazon, Gap Inc. and ALTA Beauty Inc. The city hosts several state and federal incentive programs for businesses. Fresno's location within Central Valley, with more than 1 million people and a $42-billion economy, provides an intrinsic value that is immeasurable.