VERDANT CAPITAL MANAGEMENT

Property Income
Fund III

$350M Equity Raise | Industrial & Last-Mile Logistics
Sun Belt USA | Minimum Commitment $2M
CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM – For qualified investors only. This document does not constitute an offer or solicitation in any jurisdiction where prohibited. Past performance is not indicative of future results.

The Secular Tailwind

Every 1pp gain in e-commerce share requires 1.25M SF of new logistics space — and vacancy sits at 4.1%, a 20-year low.

The Investment Thesis

Why Industrial Now

  • • Vacancy at 4.1%, lowest in two decades
  • • Rent growth 11.2% YoY, outpacing inflation
  • • $2.1T nearshoring capex committed 2023–2026
  • • Structural undersupply in Sun Belt last-mile

Why Verdant

  • • 14-year broker relationships, proprietary deal flow
  • • Off-market sourcing rate: 68%
  • • Value-add repositioning playbook refined in Fund I & II
  • • Zero capital loss across both prior funds
Dallas Phoenix Atlanta Nashville Inland Empire Sun Belt Acquisition Markets

Acquisition Universe

Target Size: 200K – 800K SF
Vintage: Sub-30 years
Entry Cap: 6.0% – 7.5%
WAULT: 3+ years minimum
Markets: Dallas, Phoenix, Atlanta, Nashville, Inland Empire

Current Portfolio — Fund II

Asset Name Market SF Entry Cap Occupancy WAULT
Parkway Commerce Center Dallas-Fort Worth 742,000 6.8% 100.0% 7.2 yr
Red Mountain Logistics Hub Phoenix 521,000 6.2% 95.4% 5.8 yr
Midtown Distribution Facility Atlanta 615,000 6.5% 98.2% 6.5 yr
Interstate 40 Warehouse Nashville 388,000 6.1% 100.0% 4.9 yr
Redlands Fulfillment Park Inland Empire 680,000 6.9% 92.7% 6.8 yr
Gateway Industrial Plaza Dallas-Fort Worth 455,000 6.3% 96.8% 5.5 yr
Peachtree Logistics Center Atlanta 702,000 6.6% 97.3% 6.7 yr
TOTALS / AVERAGES 4,103,000 6.4% 97.1% 6.2 yr

Portfolio as of December 31, 2024. WAULT = Weighted Average Unexpired Lease Term.

FUND II REALIZED NET IRR TO DATE
14.2%
8.0% Annual Distribution Yield (paid quarterly)
1.8x Equity Multiple Target
5–7 year Hold Period

Waterfall & Distributions

Fund II has paid 32 consecutive quarterly distributions with zero missed payments since inception in Q1 2018.

Risk Framework

Geography

7 markets, no single market exceeds 28% of AUM. Diversified across high-growth Sun Belt metros.

Tenant

43 tenants, largest represents 9.4% of rent roll. Investment-grade tenants comprise 61% of revenue.

Lease Term

WAULT 6.2 years, with only 18% of leases expiring in any single year. Staggered rollover profile.

Leverage

42% LTV, all fixed-rate debt with average maturity of 6.8 years. Conservative capital structure.

Public Industrial REITs

Prologis, EastGroup, STAG

12.1%

Average Net IRR 2019–2024

Verdant Fund I & II

Blended Performance

16.4%

Net IRR | 8.2% Avg Annual Yield

Source: NCREIF and fund audited financials.

"We've invested alongside Verdant in two prior funds. The deal sourcing and asset management discipline is as good as anything we see from the large platforms."

— Richard Ashton, CIO, Stonebridge Family Office

MD
Marcus Delgado
CEO, 26 years
PN
Priya Nair
CIO, 19 years
JW
James Witten
COO, 15 years

GP Commitment to Fund III: $7M

Fund Terms

Jan 2025 Offering Open Mar 31 First Close Jun 30 Final Close 3 Years Investment 5–7 Years Return
Management Fee: 1.25% of committed capital
Carried Interest: 20% above 8% preferred return
Distributions: Quarterly, beginning Q3 2025
Tax Reporting: K-1 issued annually
First Close Minimum: $50M aggregate commitments

Minimum $2M LP Commitment
Final Close June 30, 2025

Verdant Capital Management
Marcus Delgado | +1 214-900-6600
fund3@verdantcap.com
Offering documents available under NDA.
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