FINIAL INVESTMENTS INDUSTRIAL AGGREGATION VENTURE 2024

Asset type: Manufacturing, Distribution, Warehouse, Light Industrial · Location: Houston, Texas

FINIAL INVESTMENTS INDUSTRIAL AGGREGATION VENTURE 2024 is the 7th iteration of Finial Group’s Industrial Aggregation Strategy Venture. This fund will be aggregating a total fund size of $36M of freestanding industrial buildings in the growing markets of Houston, TX, Dallas, TX, San Antonio, TX, Atlanta, GA and Nashville, TN. The number of buildings in the portfolio will range from 15-20 buildings for an estimated total of 300,000 square feet. Currently, the fund has four buildings under contract for a total acquisition value of $12M. This aggregation strategy is focused on constructing a strategically diversified portfolio that mitigates risk and provides value-add returns to investors. The three methods of diversification include optimizing rollover risk by managing staggered lease expirations, geographic diversification across five target markets, and tenant industry diversification to ensure a strong tenant base. With a combination of stabilized and value-add assets, we are projecting quarterly distributions to commence in Q2 2026 and continue until the date of disposition of the portfolio. This fund will be capitalized with $16M of equity and $20M of debt. Finial has obtained a $20M debt facility from Woodforest National Bank, who is a repeat lender on four previous funds, with an interest rate based on the 5-year treasury rate + 2%. At the time of purchase for each building, the interest rate at that point in time will lock in for that asset for a 5-year note term, effectively proving fixed rate debt for this portfolio. There is no prepayment penalty associated with this debt facility, so Finial has the flexibility to refinance or sell the portfolio at any point in time to optimize investor returns. Finial has deployed capital for six iterations of this aggregation fund strategy to date and sold the first 3 ventures for above original projected returns in the range of 24% - 33% project level IRR. Finial has experienced a lot of success with this fund strategy and is excited to make this venture a success for all. *The building information listed only represents the two buildings currently under contract on Taylor Rd.