Menyon Capital Partners (“MCP”) sees a broad opportunity in flex and light industrial sectors. Our investment strategy is to acquire flex industrial, flex office, shallow bay distribution/warehouse, and light manufacturing. We focus on industrial submarkets anchored by business- and consumer-oriented user demand. It should be noted, as our presence is established in a particular market, we may expand our investment strategy to include limited new development.

A fresh idea for a boring product type! Historically, industrial has been considered a generic type of commercial real estate asset. Due to Covid, the expectation for work/life balance, collaboration and efficiency has created the need for investment operators to be adaptable and proactive, while re-thinking how to accommodate evolving user demand. We plan to create our own ”brand” in an otherwise bland and disjointed marketing and ownership model. As such, we believe the hidden upside potential from acquiring flex and light industrial is due to the numerous, smaller size tenant base and lower initial capitalized cost (i.e. capex and re-letting cost). We intend to operate prudently but enthusiastically to produce attractive risk-adjusted returns across all market cycles. Given the recent increases in interests, we are confident that our investments will generate 8-10% cash on cash returns, and 15-20% IRR’s.

Going into 2023, we anticipate headwinds from the economy slowing down, coupled with rising interest rates. We believe the timing is right to execute our strategy. Real estate is a dynamic asset class. Capitalizing on the pricing arbitrage from a sale of a property driven by circumstances that undermine value, establishes an attractive basis in an investment; your ability to execute a realistic business plan generates the return, while making your partners money.

It is proven that a prudent, unemotional, and enthusiastic approach to operating real estate will produce attractive returns across all market cycles. As such we have targeted markets that have the following attributes:

• Leasing demand exceeds supply
• Year-over-year job growth
• Liquidity
• Rising interests will create buying opportunities, potential to underwrite based on market fundamentals, and higher IRR’s
• Potential for higher going-in yields than can be achieved in primary markets
• We anticipate the spread widening from at least 50 – 150 basis points
• Market net lease structure, lower and lower tenant improvements
• Meet or exceed objective location underwriting criteria
• We can create our own “brand” in an otherwise, bland and disjointed ownership model; we see having a unified brand that is created and expanded denoting “quality ownership and management” even with a premium rental structure
• With a long-term commitment to ESG and diversity, we see a broader opportunity to implement a fresh approach to acquiring flex and light industrial, which historically has been a generic asset class. In the post Covid era, work/life balance has become a priority that has impacted the way business owners and companies make decisions that determine the best location for their operations.

6500 Greenville – (Dallas Suburb), Texas (Unrealized)

Class B Office Building complex totaling 114,525 SF

• Acquired 4th Quarter 2019
• Class “B”, seven story, multi-tenant office building totaling 114,525 SF
• Central Expressway Submarket
• 87% leased and occupied at acquisition
• Core-plus investment generating a value-add projected return of 24%
• Projected 2x multiple and 4 Year projected hold period
• Currently 90% leased, achieved rents $3 PSF above underwriting
• Projected sale 2024-2025