Recent Updates

The asset is currently 96% leased, and occupancy continues to track ahead of underwriting. Overall, operational performance remains strong. We are scheduled to begin our underwritten capex program in 2023 which will help differentiate the property from its competitive set. Additionally, we plan to replace the roof on the 4300 82nd Street building, install a carport with solar panels, and perform HVAC upgrades. As a result of the rising interest rate environment, the asset will not be paying a distribution this quarter while we continue to build up reserves and manage cash.

Summary

Alpine Industrial Park is an opportunity to invest in a curated asset sourced through the Cadre network that is underwritten and managed by an institutional sponsor, Rising Realty Partners. Rising Realty Partners is under contract to acquire Alpine Industrial Park for $22mm. A 6-building, 148k sf flex/light industrial park located in Sacramento, CA.

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Three Reasons to Invest in Alpine Industrial Park

Attractive Location in a Supply-Constrained Market

Sacramento is one of the best performing and most desirable industrial markets in Northern California - positioned for significant growth over the next 6 years with CoStar projecting average annual rent growth of 4.1% between 2022 - 2027.1 Specifically the Power Inn submarket is one of the most coveted institutional submarkets within Sacramento.

Power Inn has enjoyed a remarkable stretch of rent growth. Industrial rents today are 93.2% higher than they were 10 years ago. This rent growth has occurred while also having a record low availability rate.2

Diverse Tenant Base with Near-Term Rent Growth Upside

The Project is currently 83% occupied to a diverse set of tenants. The tenant base has been highly stable with the current ownership experiencing 99% of rent collections during 2021.

There is the potential for significant upside during the hold period with 76% of the leases rolling. The current rent roll is on average 12% below assumed current market rents today. The assumed market rents are in line with recent leasing that the submarket has experienced.

The unit layouts are highly functional with low finishes that can accommodate a wide range of light industrial users

Institutional Sponsorship with Proven Track Record

Rising Realty Partners is a family-owned, Los-Angeles based, vertically-integrated real estate investment and operating platform specializing in creating world-class commercial properties.

With over 100 years of combined industry experience, their team has a unique understanding of the ins and outs of developing and managing all types of asset classes and sizes including office, retail, data center, residential, entertainment, medical, industrial.

Rising has developed and maintained strong relationships with some of the most well-known institutions and organizations in the industry including Colony Capital, Angelo Gordon, Bank of America, Credit Suisse, Brookfield, SunTrust, J.P. Morgan, and The University of California.See the investment memorandum for additional detail and sources.

See the investment memorandum for additional detail and sources.

High-Demand Industrial Market

Industrial real estate’s growing demand has largely been driven by a secular shift in retail towards e-commerce, which has grown at a 16.1% CAGR since 2010 yet still only represents 13.5% of total retail sales.

Alpine Industrial Park

Development Cost

$22mm

Underwritten Hold Period

3 years

Deal Details
Speak with our Investor Relations Team at (646)-494-7233
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$25,000 minimum investment