Leverage our experience in light industrial investments to expand opportunity and bring value in an underrated asset class that thrives in both booming and weakened economies.
WHSE Partners has a successful track record unlocking profits and adding significant value to its projects; we have done so with numerous multi-tenant industrial warehouse portfolios. Rob Boese, CEO, and Erin Volpp, COO, are hands on and meticulously oversee each aspect of their Investments. This allows us to push the limits of success for our investors. When you invest with WHSE Partners, you’re investing in experience and expertise that will work tirelessly to maximize your investment.
As far as real estate goes, multi-tenant light industrial warehouse may not be top of mind for visual appeal; however, its attractiveness lies in its cashflow, leasing demand, and lack of recent development. Given today’s e-commerce environment, there is a severe shortage of small units available for last-mile delivery. Often overlooked as an asset class for private and institutional investors, the right operator can bring this diamond out of the rough.
Multi-tenant light industrial warehouse naturally draws comparisons with multi-family investments. Like multi-family, it has a multitude of small/medium, in-line tenants, where your unit is worth more per square foot then larger unit types; and if a tenant moves out, it does not have a significant impact on your-rent-roll. However, different from multi-family and other asset classes, your operational expenses are as low as they can possibly be, you avoid residential and legislative issues, and have minimal costs associated to turning over a unit because extensive improvements are not needed to re-let a space.
Vacancy is rare in this asset class for well run properties and there is a constant flow of interested tenants who are looking for space. Most of the asset classes’ existing space is between 20-40 years old as there has been very limited delivery of new product to the market for light industrial across California. If you lose a tenant in a multi-tenant investment, you typically replace them quickly with a superior tenant at a better lease rate. This abates issues found in large net lease investments where if a single or the dominant tenant vacates, you are more heavily impacted.
Low expenses and high demand may sound ideal but one of the reasons more people are not jumping on the multi-tenant light industrial bandwagon is because the asset class has a seemingly high burden of property management and they are not easy to operate UNLESS you have the experience to know how to run them efficiently. WHSE Partners has extensive experience in operating this asset class and has spent years creating and perfecting a program that leads to success.
The construction of light industrial assets is streamlined and efficient when you work with the right people. The timeline for delivery is approximately 12 months from permits to occupancy.
Vacancy rates are extremely low; the tenant base is very underserved and there is not enough inventory for the space needed. On the acquisition and disposition side, the properties throw off such consistent cash flow and high returns that they rarely come to the open market if they become available for sale at all.
In prosperous economies, tenants move from their garages into light industrial units. In weaker economies, tenants in 5,000+ square foot spaces reduce their footprint to smaller units to wait out the storms.
No more evident than right now in this uncertain economy, last-mile delivery is bursting at the seams, desperately in need of more space to keep up with the e-commerce demand. Multi-tenant light Industrial warehouse is a key element in the manufacturing -> delivery process that cannot be overlooked.
We make sure to design the site with the future tenants in mind, especially when it comes to placing yards, roll-up doors, utilities/trash enclosures, adjacent buildings, and common area amenities.
We spec each unit to the most universally accepted floorplan that maximizes the footprint and aligns the plumbing to be most cost-effective during development. If you account for future needs to start with, you have more efficient operations down the road.
Property management may seem straightforward but industrial properties throw curveballs that many are not equipped for. When you provide tenants too much slack and don’t complete enough due diligence prior to leasing, people get duped into placing tenants with ‘dirty’ or ‘not allowed’ uses. This also can happen if the manager doesn’t check on the property enough. By having close oversight of the management team, we ensure there is a plan in place for everything from preventative maintenance to evictions.
When there is a job to be done, the two ends of the spectrum are: vendors that are too expensive for the job at hand, taking advantage of the management company, or vendors that are too cheap to do an effective job. We ensure the bidding process for jobs is prompt and balanced and you will often find the middle ground is the best value for your dollar.
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PORTERVILLE INDUSTRIAL WHSE is a +/-140,000 square foot light industrial development in Porterville, CA that will be developed with an estimated delivery in Spring 2024. The asset offers stability and success in all economies due to rapid development timelines and unwavering demand with little competition.
WHSE PARTNERS is seeking equity investment for this low-risk, high-return project, with a projected value of $34 Million at exit. The investment is structured for a 10 year hold period; the minimum investments amount is $100,000 with a capital raise of up to $8 Million.
This Investment is located in a Qualified Opportunity Zone and offers investors a tax advantaged opportunity to defer their capital gains.
Madera Industrial WHSE Phase 1 is a multi-tenant light industrial warehouse development. WHSE Partners delivered approximately 144,300 SF (74 Units) in the Spring of 2023. The Pre-Engineered Metal Building (PEMB) had a rapid construction timeline and was overseen by an experienced construction team who specializes in the asset class. Now fully developed, the fund will continue to push cashflows to create additional value through a swift and aggressive leasing program and hands-on operational efficiencies.
Located in the center of California, the property is ideally situated off CA Highway 99. The City of Madera prides itself on its pro-business environment for big and small businesses alike and have implemented a plan for balanced but rapid, strategic growth for their primary industries, the most prominent being agriculture related goods, manufacturing and distribution – all of which feed demand for new light industrial warehouse.
THE INDUSTRIAL REAL ESTATE LEVERAGE FUND is a California based private debt fund managed by WHSE Partners that seeks to provide high-performance loans to developers and WHSE Partners Affiliates in the industrial market. The goal is to deliver the opportunity to invest in “micro-balance” industrial real estate bridge financing that provides consistent returns at lower risk levels to investors. Loans are built for Borrower and Investor alignment under the watchful eye of WHSE Partners. Investors in IRE Leverage Fund will be equity owners in the bridge financing to the industrial real estate owner.
WHSE PARTNERS is seeking investors for this predictable targeted return investment. The investment is held for a 36-month period; the minimum investments amount is $250,000 with a maximum capital raise of $4 Million