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Table of Contents

Table of Contents

Click links below to jump to the relevant section:

INVESTMENT - details on investment structure, the promote, our fees, and targeted cash flow for investors

BUSINESS PLAN - details on our investment strategy and deal execution, purchase and sale projection, and capital expenditures
PROPERTY - physical details of the assets, their locations and characteristics
SPONSOR - Principal bio for the Sponsor
DISCLAIMER

 

 

How to Verify Accreditation

Pre-launch message from Irwin Boris, head of acquisitions and investor relations.

Offering Summary

Key Deal Points

Key Deal Points

Heritage Capital Group is in negotiations to acquire two 100% occupied industrial investment properties located in Fort Wayne and Garrett, Indiana. The first asset is a 112,160 SF property located at 4422 Airport Expressway in Fort Wayne, IN and the second asset is a 100,500 SF property located at 817 North Taylor Road in Garrett, IN. 

 

The Properties have a weighted average remaining lease term of 2.87 years.

 

The Fort Wayne property has four (4) tenants and a WALT of 3.27 years (as of 4/1/2024) and the Garrett asset signed a new three (3) year lease extension with the current tenant, who is the original tenant when the asset was built in 2001 and has been the tenant for over 22 years.

 

The Properties are located in DeKalb and Allen Counties, with a combined market size of approximately 67.7 million SF of industrial product, with a combined vacancy rate of 4.16%.

 

The Fort Wayne Property is three minutes from Fort Wayne International Airport and the Garrett asset is 30 minutes north of Fort Wayne and 10 minutes west of Auburn – two strong, diverse industrial markets.

Capitalization
Distributions
FAQs on Offering
Offering Updates

INVESTMENT OBJECTIVE

 

To manage the tenancy, to keep the property full while increasing rents to market levels, benefit from the compounding effect of annual rent increases, and extending terms for as long as we can negotiate with existing tenants.

Distribution Strategy

Distribution Waterfall*

The distributions from cash flow after debt service and capital items (cash available for distribution) are structured as follows:

First:

8% cumulative preferred return paid quarterly. Partners to receive their 8% preferred return starting after the 1st calendar quarter of the successful acquisition of the portfolio. 

Second:

Return of capital. 100% of cash available for distribution pro-rata to Partners until all their capital is returned.

At this point, Investors will no longer have any money at risk.

Third:

General Partner to receive a catch up to a 70/30 split in favor of Limited Partners. This will be the first share of profits for the General Partner, will occur only after Limited Partners (and, to the extent the General Partner has a co-invest, to the General Partner also), have received their 8% preferred return plus have received back all their capital.

Fourth:

Continue to split cash available for distribution on a 70/30 basis in favor of Limited Partners until they have doubled their original investment (in addition to their preferred returns).

Fifth:

Once Limited Partners have doubled their original capital, all further distributions will be made on a 50/50 basis.

Capital Calls
Organizational Chart
Sources and Uses
Debt Financing
Fees and Organizational Expenses

The Portfolio

 

The two assets in this portfolio include 4422 Airport Expressway, Fort Wayne, IN, and 817 North Taylor Road, Garrett, IN.  They are summarized as follows:

Fort Wayne

 

Garrett Summary

 

 

Tenant Overview

Ellison Bakery - Fort Wayne, IN

Ellison Bakery is a one stop resource for cookies, toppings, inclusions, and bars.

The bakery was founded in 1945 by Donald Ellis. In the early 1980’s, Ellison began to focus on ice cream cookies and related ice cream inclusions, winning long standing partnerships with some of the largest ice cream manufacturers across the globe.

In 2017, the company was acquired by Blackford Capital. Blackford sold the company in 2020 to Tilia Holdings, a private investment firm focused exclusively on building distinctive middle market service companies across the food supply chain.

  • TOTAL OCCUPANCY: 32,000 SF
  • PERCENTAGE OF PROPERTY: 28.5%
  • TENANT TENURE: 1 year 3 months
  • CURRENT RENT PSF: $5.56  Net
  • REMAINING LEASE TERM: 6.0 Years
  • INDUSTRY: Food Services
  • OWNERSHIP: Private
  • WEBSITE: www.ebakery.com
Power Distributing - Fort Wayne, IN
Leaf Home - Fort Wayne, IN
Vanderbilt Luxury Pontoons - Fort Wayne, IN
The ZF Group - Garrett, IN
Market Overview - Fort Wayne

Fort Wayne-Allen County is Indiana’s second-largest market, located between the Chicago, Detroit, and Indianapolis metro areas. Half the U.S. population is within a one-day drive. The area offers access to two interstates, an air cargo hub, Foreign Trade Zone designation, and rail lines, allowing producers to get their products to their destination quickly.

 

More than 263,000 residents call Fort Wayne home and 1.5 million live within a 60-mile radius. The median household income in Fort Wayne is about $54,000, with 66% of the population being part of the civilian labor force. The city is one of the fastest-growing metro areas in the Great Lakes region, growing about 1.5% between April 2020 and July 2022.

 

Fort Wayne’s economy has diversified into key industries including specialty insurance, medical device and technology, vehicles, design & craftsmanship, logistics & e-commerce, food & beverage, and advanced materials.

 

Since 2014, the city has helped more than 220 companies with expansion projects in Allen County, totaling $3.8 billion in private investment and more than 14,000 new jobs.

 

The downtown area alone has over $1 billion in development. Fort Wayne-Allen County’s total industrial inventory is over 57 million square
feet with a vacancy factor of 4.1%. The current average asking rate is $5.88 per square foot. Notable recent industrial transactions in the marketplace include PepsiCo’s relocation of their logistics facility to an 11-acre site near the airport, and Carter Funds acquisition of the 629,000 square foot Amazon Fulfillment Center on Smith Road.

Market Overview - Garrett

Watch Heritage Capital Group CEO, Jeff Greenberg, discuss the company's investment philosophy in this short video below.

NE Indy Industrial Portfolio

Two 100% leased industrial buildings being sold by an institutional investor forced to sell to close out a fund.  Total 212,660 square feet with 2.87 WALT, over $1MM of NOI year one, leased to five tenants.

This offering is not yet open to investment. Please click the link below to join the waitlist for priority access.

 

Preferred Return: 8%
Targeted Equity Multiple: 2.01x
Targeted IRR: 17.87%
Targeted Investment Period: 5+ years
Property Type: Industrial

To learn more about Heritage Capital Group, please visit our website here.

DISCLAIMER

 

Any investments being offered are pursuant to an exemption from registration under Regulation D of the Securities Act of 1933, specifically Section 506(c). As such, only investors who are verified as being "accredited investors" will be able to invest in this opportunity, and only upon receipt, review and execution of the definitive offering documents. Please refer to www.SEC.gov for further guidance regarding accreditation.