Page 49 - FLEXCAVES BIZ PLAN - April 2025 v1.0

FINANCIALS & INVESTOR RETURNS
Financial & Investor Returns – A Strategic Overview
✅ IRR Projection Assumptions – Transparent modeling of rental growth, expense
allocations, and exit valuation scenarios at stabilization.
💰 Investor Return Projections (IRR Scenarios)
✔ Best-Case IRR: 18% – Achieved if FLEXCAVES™ reaches 90% occupancy within 12 months,
with rents performing in line with pro forma and refinance or exit occurring on schedule.
✔ Base-Case IRR: 15% – Based on 80% occupancy in 12–18 months with moderate leasing
velocity and gradual rental increases.
✔ Stress-Case IRR: 10% – Reflects a slower lease-up to 60% occupancy over a longer period.
While lower, returns remain positive due to rising rents and a conservative capital structure.
📌 These scenarios reflect the impact of real absorption timelines and underscore FLEXCAVES™
durability across market conditions.
✅ Exit Strategy for Investors – Multiple, flexible liquidity options are available depending on hold
period, market conditions, and investor preferences.
🚪 Exit Strategy for Investors
✔ Option 1: Sell individual units to investors or business owners – Providing an immediate liquidity
event while generating ROI from increased valuations.
✔ Option 2: Roll-up into a REIT or portfolio sale – Positioning FLEXCAVES™ as a prime acquisition
target for institutional investors.
✔ Option 3: Franchise/licensing model for expansion – Offering scalable opportunities for continued
FLEXCAVES™ growth with minimal capital outlay.
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.