NOT OPEN TO GENERAL SOLICITATION
Sage is pleased to present another opportunity to partner with Company of Merchants (“Merchants”). This is the 6th property Sage has acquired alongside Merchants and its 4th industrial portfolio of real estate. This will be Sage’s 3rd scrap metal recycling yard investment located Houston.
Parcels of Land: One
Location: Houston Texas
Office/Warehouse Space: 21,000 sf / 38,000 sf
Tenant Division: Scrap Metal Recycling
Total Acreage: 7.5 Acres
All In Acquisition Cost: $7,290,000
This asset is being purchased on a discounted cap rate.
Although the real estate going-in cap rate is approximately 8.8% similar properties are trading around a 7.5% cap, which would create nearly $1.2mm in real estate value at close.
The plan is to cash flow this investment for 5-7 years, achieving double digit cash on cash returns net to our LPs through the hold period.
Then the operator will either sell or refinance the real estate.
The obvious built-in buyer of the real estate is C&D and/or Merchants.
Timing of Funds:
October 21st, 2022
Timing of Close:
November 9th, 2022
Beau Landry is the founder and president of Company of Merchants Group and is responsible for overseeing and managing all aspects of its business. C&D will be Landry’s 3rd scrap metal recycling yard and his 6th industrial property investment. Mr. Landry has a reliable track record and extensive experience in the industrial space. Last year, he implemented a similar business plan on another portfolio of industrial assets that has yielded approximately $30.9mm in consolidated revenue and an EBITA of $3.1mm. Prior to founding Company of Merchants Group, Mr. Landry was a member of Doggett Industries’ corporate finance group where he focused on business and real estate acquisitions, integration, financing, management, and dispositions. Prior to his time at Doggett Industries, Mr. Landry worked at KPMG, acquiring 8 years’ experience in its management group and consulting practice. Mr. Landry earned a B.B.A. from Louisiana State University and received his M.B.A. from Duke University. Mr. Landry is an active Certified Public Accountant and lives in Houston, Texas.