An independent Warehouse Feasibility Study evaluating a 48,560 SF hybrid owner-user industrial acquisition in Hayward, California.
HAYWARD, California — Wert-Berater, Inc., an independent feasibility study consulting firm serving lenders and government agencies since 1998, has completed a Warehouse Feasibility Study in Hayward, California.
Wert-Berater served as independent feasibility consultant to the lender and CDC. Party names are withheld consistent with the confidential nature of underwriting and capital-advisory work; figures represent the project as evaluated at the study date.
Acquisition of a two-building, 48,560-square-foot industrial property on 1.85 acres, structured as a hybrid owner-user strategy: the 28,560-square-foot front building operated as a contractor overflow logistics platform serving Bay Area specialty trade subcontractors, with the 20,000-square-foot rear building generating stabilizing triple-net lease income. Owner occupancy of 58.8 percent exceeds the SBA 504 minimum of 51 percent by 7.8 percentage points. The $13,752,000 purchase price was validated against a contemporaneous MAI appraisal of $13,800,000 and against replacement cost of $350–$500 per square foot versus the $283.20 contract basis.
A 1,200-position pallet storage operation configured across five functional zones with a seven-stream service revenue model — base pallet storage, accessorial handling, reserved blocks, rush retrieval, contractor mini-bays, logistics coordination, and ancillary services — alongside the contractual NNN lease. The competitive analysis mapped six named facilities in the ten-mile market area with zero direct overlap: no existing operator provides integrated pallet storage, handling, and project tagging for the contractor segment.
$6,975,702 senior first mortgage at 8.84% over 30 years (50.00%); $4,864,000 SBA 504 debenture at 4.64% over 25 years (34.86%); $2,063,000 subordinate note at 0% interest; $48,702 cash injection — total borrower contribution of $2,111,702 or 15.14% of sources. Annual debt service: $993,006.
Two analytical problems defined the study. First, SOP 50 10 8 dual-coverage discipline: passive NNN income had to be excluded from the primary operating test, so the startup logistics business alone was required to clear 1.15x — it achieved 1.72x in Year 1, and Monte Carlo simulation across 1,000 iterations showed only a 4.2 percent probability of breaching the floor. Second, pricing defensibility: the $100-per-pallet-per-week rate is 21.7 times commodity warehouse rates per square foot, so the study validated it on three independent bases — per square foot, per cubic foot, and avoided remobilization cost of $500–$2,000 per event — concluding the customer purchases logistics services, not square footage. The October 2028 rear-lease expiration was stress-tested to a 1.46x no-lease floor case.
Wert-Berater, Inc. is an independent feasibility study consulting firm founded in 1998, providing lender- and agency-facing feasibility studies, highest-and-best-use analyses, and capital-advisory support. The firm has completed more than 4,000 engagements across all 50 states and internationally, evaluating over $40.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. In every engagement, fiduciary duty runs to the lender and the applicable agency.
Media contact: Donald Safranek, MSc, President, Wert-Berater, Inc. — +1 310-857-2443 ext. 800. Press inquiries only; client, lender, and property identities remain confidential.
President, Wert-Berater, Inc. — independent feasibility study consultants since 1998. More than 4,000 feasibility studies completed across all 50 states and internationally, evaluating $40.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. Fiduciary duty runs to the lender and agency in every engagement.
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