Class B Industrial Storage

Strategy

Luminus Capital’s strategic focus on acquiring Class B Multi-Tenant industrial assets is underpinned by a strong conviction in the continued growth and demand of this asset class while new supply remains constrained. These assets are often ideally located along growing urban corridors to continue serving and providing space to the growing sectors of e-commerce and delivery services. There are significant pressures on new supply, city planners and residents alike do not want more industrial buildings near their homes. This provides a great opportunity to purchase properties at a low basis, execute a value-add business plan by improving properties and leasing for market rents. We believe our industrial strategy will provide an attractive yield to investors while also affording the opportunity for long-term appreciation.

Why Class B Industrial?

Growing Demand

By nature class B industrial buildings are ideally located near rooftops and other businesses. This drives demand for both service based and delivery and distribution tenants.

Supply Constraints

Class B industrial is often sought for mixed use redevelopments which are favored by city planners and local residents alike.
Replacement and infill land costs limits development of new Class B infill supply.

Sticky and Broad tenant base

As tenant businesses grow, they tend to need more well positioned Class B space rather than moving upmarket to Class A in the outskirts of town.
E-commerce, distribution, ghost kitchens, energy, service providers, logistics, contractors are examples of broad prospective tenants for Class B industrial.

Capex and expenses are predictable

The main components of these buildings are the roof, foundation, and HVAC. These costs can be large, but are predictable. Interior tenant improvements are typically simple and low compared to other asset types.

Deal Size

Small deal size flys under the radar of many institutional buyers
Unconsolidated ownership affords opportunity for off-market acquisitions and portfolio consolidation.

How We Add Value

Source off-market

We work hard to establish strong broker relationships, owner relationships, and sourcing proprietary acquisition opportunities.

Mark to Market Rents

We will aggressively market and lease vacancies to seek market rents when we acquire previously mismanaged, or vacant buildings.

Portfolio Assemblage

We will assemble a portfolio of assets which are desirable to institutional investors and lenders.

Capital Improvements

We will identify and complete capital improvements which increase the desirability of our buildings to market paying tenants.

Investment Criteria

We are centrally focused on Class B industrial assets in Oklahoma City, Tulsa, Joplin and Springfield. Please submit any deal to our acquisitions team to Acquisitions@LuminusCapital.com.

Criteria

5,000-100,000 SQFT
Multi-tenant preferred
Large bay doors
Light and Flex zoning
Functional accessibility and parking
Mismanaged leasing
Below market rents

Commitment

At Luminus Capital we understand what it takes to create and maintain strong relationships with investors, brokers, lenders, and tenants. Our unwavering commitment to the people that trust us fuels our ability to create long-term value and cultivate a growing business. Through our adaptive culture, we strive to focus on efficiency while continually improving our processes to go the extra mile in preserving capital and increasing returns. This culture provides us the ability to adjust quickly to changing market conditions and stay ahead of the latest change. Our proven track record of successful ventures demonstrate our level of commitment and knowledge to our investors and to the assets.

Team

We are experienced professionals that have spent years solving complex problems and situations and finding the best solutions to relentlessly focus on creating and preserving value for our stakeholders. Our core beliefs focus on people, principles, and passion.

Class B Industrial Storage

Strategy

Why Class B Industrial?

How We Add Value

Investment Criteria

Commitment

Team

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