Page 13 - FLEXCAVES - INVESTOR DECK JUNE 2025

TERM KEY VALUE
TERMS
Hold Period Financial Overview & Investment Structure
Compelling Returns Through Multiple Revenue Streams
Project Economics:
•Total Development Cost: $19.3M
•Equity Requirement: $2.25 - $2.5M (11.6% of Total)
•Construction Financing: $17M (88% leverage)
•Projected Stabilized NOI: $2.2M+ annually
Investment Terms: The project is targeting a $2.25M-$2.5M Class A
equity raise with an 8% preferred return, a 70/30 LP/GP split up to a 14% IRR,
and a 50/50 split thereafter.
•Target IRR: 20%
•Hold Period: 36 months
•Minimum Investment: $250K
36 Months
Minimum Investment $250K
Total Equity Raise $2.5M
Preferred Return 8%
Target IRR 20%
Equity Waterfall Structure:
1.First Distribution:
8% preferred return to LP investors
2.Second Distribution:
70% to LP investors / 30% to GP sponsor (up to 14% IRR hurdle)
3.Remaining Distribution:
50% to LP investors / 50% to GP sponsor (above 14% IRR)
LP/GP Split (≤14% IRR) 70/30
LP/GP Split (>14% IRR) 50/50
Year 1 Cash-on-Cash 14.5%
Equity Multiple 7.5x
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