Page 8 - FLEXCAVES BIZ PLAN - April 2025 v1.0

EXECUTIVESUMMARY
CAPITAL STACK
Capital Stack & Deal Metrics
Efficient Structure, Strong Cash Flow, and Market-Backed Upside:
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Simple and Aligned Capital Stack: FlexCaves is capitalized with senior debt and private equity,
designed for transparency and aligned incentives. No layered promotes or complicated structures — just
smart real estate investing.
Cash Flow from the Start: The project generates net cash flow during lease-up and delivers double-digit
cash-on-cash returns as early as Year 3, with a Year 7 target of 24% CoC return.
Above-Market Yield: The stabilized Year 1 debt yield of 13% reflects a conservative, income-first
underwriting approach.
Refinance Flexibility: With an 80% LTV assumption at refinance, investors benefit from a strong cash-
out position while preserving long-term equity value.
Offering Summary
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.