Page 47 - FLEXCAVES BIZ PLAN - April 2025 v1.0

FINANCIALS & INVESTOR RETURNS
Investor Returns & Financial Strategy Overview
This section outlines the financial engine behind FLEXCAVES™, providing investors with a clear,
performance-driven view of the deal’s economics, value creation strategy, and projected outcomes.
Key financial components include:
✅ Break-Even Analysis
•Defined occupancy and rental thresholds needed to reach breakeven
•Monthly cash flow tracking during lease-up
•In-place breakeven cushion relative to stabilized rents
✅ Underwriting Sensitivity Modeling
•Real-time investor toggle between “As-Is,” Conservative, Moderate, and Aggressive scenarios
•Modeled impacts to NOI, IRR, and refinance proceeds
✅ IRR & Cash-on-Cash Return Projections
•Year 3, 5, and 7 snapshots under various lease-up speeds
•Promote waterfall integrated with preferred return and tiered profit splits
•IRRs range from 8–23%, depending on exit timing and operational performance
✅ Refinance & Exit Strategy
•Projected refinance in Year 3–5 with modeled LTV, debt yield, and loan sizing
•Multiple exit strategies: individual unit sales, stabilized hold, or portfolio roll-up
✅ Lease-Up & Stabilization Timeline
•Unit-by-unit absorption modeled by type (ShopCave, ProCave, PrimeCave)
•Marketing and pre-leasing assumptions mapped to ramp-up cash flow
Confidential & Proprietary – This business plan contains confidential and proprietary information belonging to Cave Development, LLC. Unauthorized reproduction, distribution, or
disclosure is strictly prohibited. All content is protected under copyright law. Reviewing this document constitutes agreement to maintain confidentiality.