Asset Strategy

Parkwood Center is a single-story multi-tenant flex industrial park spanning 65,123 square feet. Offering versatility, the building encompasses suites ranging from 975 to 6,298 square feet, catering to a diverse array of users. Characterized by front-office spaces and warehouses with convenient grade-level and dock access, these suites provide an optimal blend of functionality. Within this Little Rock submarket, properties with comparable features are scarce, elevating this asset to a position of high desirability.

Three fundamental components make Parkwood Center an attractive investment opportunity:

1. Strategic Location
   Parkwood Center, situated in the midtown submarket, is ideal for tenants seeking convenient transportation and enhanced connectivity within the city. The property's proximity to major throughways like I-630 (0.25 miles) and I-430 (2 miles) facilitates easy access to other parts of the city. Midtown Little Rock's location, infrastructure, consumer base, proximity to downtown, and quality of life make it an appealing destination for businesses searching for a dynamic urban setting.
   
   
2. Value Add Opportunity
   The property offers the opportunity to enhance value by marking rental rates to market. The property has several tenants paying under market rates. The sponsors plan to renovate the property upon acquisition and sign leases at market rates. Currently, the average rental rate for the property is $7.73 Modified Gross per square foot, approximately 26% under market. The sponsors plan to sign new leases between $6.75 – $10 (NNN). Leasing activity in the Little Rock market for similar flex industrial space is robust with multiple leases recently signed in the $8.5-$10 (NNN) range. This suggests that the sponsor’s market lease rate assumption will be highly competitive when vacancies arise.
   
   
3. Below Replacement Costs
   The current purchase price of $3.7 million dollars equates to just $56.82 per square foot, significantly below the estimated replacement cost in today's market. Constructing a similar facility would incur expenses exceeding 95% of the current purchase price. The sponsors anticipate purchasing a high-demand asset, below replacement cost, and in a stable market will provide a clear path for exceptional returns.