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 4,000+ engagements across all 50 states and internationally, evaluating over $41.2 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. 4,000+ engagements completed across all 50 states and internationally, evaluating $41.2 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.
+1 310-857-2443 ext. 800 · email · 1968 South Coast Hwy, Ste 2382, Laguna Beach, CA 92651 · 111 Town Square Pl Ste 1238 PMB 657834, Jersey City, NJ 07310 · 539 W. Commerce St #8486, Dallas, TX 75208 · 66 W Flagler Street, Suite 900, PMB 12704, Miami, FL 33130
Schedule a ConversationIndependent feasibility studies since 1998 — 4,000+ engagements, $41.2 billion in evaluated project value. Standard delivery in 10 to 15 business days. Fiduciary duty to the lender and agency.
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Wert-Berater, Inc. is an independent provider of feasibility studies and other related services. The firm does not provide financing or equity investment advice, and does not arrange, broker, or place debt or equity capital of any kind.
All appraisal assignments are performed by Bruce E. Jones, MAI, ASA-GC, BCA, CMEA, a member of the Appraisal Institute since 2006, a staff member of Wert-Berater, Inc. and owner of Special Purpose Realty Valuation.