Bunsen Distribution Center Offering On RealCrowd Is Targeting A 14.75% IRR

The real estate investment platform RealCrowd has launched a new offering for an industrial property in Louisville, Kentucky. 

The Bunsen Distribution Center is a fully-leased, cash-flowing distribution center that sits in Bluegrass Industrial Park in Louisville. The 184,925 SF building sat unoccupied in 2021 when the property was purchased for $14,850,000. Since the purchase, the new owners, Poe Companies, have divided the space into three sections to lease two additional tenants. Investors are expected to receive quarterly distributions beginning in January 2023. 

Bunsen Distribution Center sits on 9.87 acres and includes 6,463 SF of office space, 100 parking spaces, 31 dock doors, four drive-in doors with 16’ to 25’ clear heights and reinforced concrete floors.

Demand for industrial leasing is high and the location of the industrial park is optimal being in close proximity to major highways and the Louisville Muhammad Ali International Airport. Jefferson County, where the city of Louisville is located, is one of the fastest-growing counties in the state, experiencing a population growth of 5.7% over the past 10 years. 

The influx of residents and industry is expected to allow Poe to maintain its 100% occupancy rate for the building. The Bluegrass Industrial Park itself has a 100% occupancy rate and consists of 1,800 acres, 850 businesses and more than 38,000 employees. Poe was able to divide and upgrade the building and sign tenants all in a matter of five months following the acquisition.

• Minimum Investment: $25,000
• Target IRR: 14.75%
• Target equity multiple: 1.86x
• Target cash yield: 7.32% stabilized 
• Target investment term: Three to five years

The owner and operator of the Bunsen Distribution Center, Poe Companies, has been in business for 37 years and specializes in acquiring and developing industrial, multifamily and hospitality properties across the United States. 

Since the company’s inception, the group has developed over $2 billion in value across the country. Poe has maintained a total IRR of 26%, an equity multiple of 2.29x and an annual cash flow of 8%. Poe manages 10 assets worth $842.58 million. 

Get details on RealCrowd offerings or check out Benzinga's Real Estate Investment Offering Screener to find other passive real estate investment opportunities. 

Photo Courtesy of RealCrowd