Redwood Capital Group aquired a 20,000 sqft multi-tenant industrial property in Cumming, GA, an affluent, highly populous, and growing suburb of Atlanta, on December 20th, 2023 in an all-cash transaction.

The property is unique for a small-bay industrial facility in that it has a large parking lot both in the front and back, allowing easy truck access and parking for multiple large fleet vehicles.

This property was managed very well by the former owner but under-leased; all 4 of the tenants were paying approximately 50% below market rate. Our only goal: when the leases expire, re-lease the units at the market rental rate. That's it.

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As of 2/14/2024, we have leased 1 of the 4 suites on a 6 year term, and are waiting on the remaining leases to expire in March 2025. At stabilization, we expect to achieve an 11-12% yield-on-cost and are targeting a 16-20% IRR over a 5 year hold.

Redwood Capital Group acquired a 21,250 sqft multi-tenant industrial property in Woodstock, GA, an affluent, highly populous, and growing suburb of Atlanta, on August 22, 2023. This property is just 1.5 miles from our self-storage facility in Woodstock.

This property was managed very well by the former owner but under-leased; 3 of the 7 tenants are paying the market rental rate, 4 are below market. Our only goal: when the leases expire on the 4 units with below market leases, re-lease the units at the market rental rate. That's it.

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At stabilization, we expect to achieve a 9-10% yield-on-cost and are targeting a 17-18% IRR over a 5 year hold.

Redwood Capital Group owns a 22,000 net-rentable sqft drive up and climate controlled storage facility in the Mallard Point neighborhood in Decatur AL, a city in the Huntsville MSA.

Redwood Capital Group acquired this asset off-market working directly with the seller.

This property was mismanaged - the seller had no website, very few records, didn't enforce collections, and took payments via check only. The facility was approximately 85% full but only 50% of tenants were paying.

We took the property over on 4/27/203 at 85% occupancy with only 50% of customers current and revenues of approximately $8k per month.

As of 7/9/2023, less than 3 months later, the property is generating $15-16k per month at 70% occupancy. Based on trailing 2 months revenue, we believe the property is worth approximately $2m and has significant room to run.

Redwood Capital Group owns a 30,000 sqft drive up storage facility in the center of historic downtown Woodstock, GA, an affluent growing suburb of Atlanta.

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Redwood Capital Group acquired this asset on-market, brokered by Meridian Storage Group. We were able to work with the seller on unique seller financing terms to both reduce our purchase price by $1M off of ask and secure a 4.25% interest rate seller note fixed for 20 years.

We took the property over at 60% occupancy and are targeting a stabilized occupancy of 85% at asking rates of around $0.90/sqft. The property was acquired on 1/12/2023. As of 8/28/2023, we have achieved 85% occupancy.

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If you have a hairy deal and/or the seller would like to hold a note for retirement, please get in touch.

Redwood Capital Group owns two properties within 0.25 miles of each other, totaling 50,000 sqft of drive up self storage, in Toccoa, GA.

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Redwood Capital Group acquired these assets from two separate sellers, off market, for a combined $2,325,000. The portfolio currently yields over $24,000 in net income per month, effectively a 12% yield on all in cost. With a 4% interest rate loan, we are achieving gross cash-on-cash returns in excess of 18% and cash-on-cash + principal returns of over 27%.

We purchased these properties with a simple strategy: replace on-site managers with off-site, conduct basic cosmetic and security improvements, establish a tenant protection program, and increase tenant rents to market levels. Over the first 6 months of ownership, we increased gross revenue from $20,000 to over $30,000 per month.

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At a 6% cap rate, this property is worth approximately $4.8m. However, we are currently expanding one of the properties and leasing up a few vacant units, and do not believe that we have yet achieved the maximum value of our investment.

Redwood Capital Group is currently under contract to build over 140,000 sqft of climate controlled self storage across the Southeast. We have partnered with two separate national self storage developers to bring our projects to reality.

We focus on sites near new rooftops, with great road visibility, and in markets with great supply / demand imbalances. The site pictured below is situated on a road seeing over 30k vehicles per day, across from a Publix and Starbucks, and the market sees almost no self storage vacancy, with 10x10 climate-controlled units renting for over $229/unit.

We focus on projects for which we believe that we can achieve a 9-10% yield on cost at stabilization.

We build mostly climate controlled where it's humid, and mostly drive up where it's not.