Jack Here are the calcs my engineer used for an upcoming 50,750 sf project (29 bays, 1bath each). Note the garage drains go to tight tanks that get pumped out (were next to wetlands - and have to limit pollutants into the septic) SEPTIC (Factory, Industrial Plant, Warehouse or Dry Storage w/out Cafeteria ) 15 GPD/Employee x 3 Employees per unit X 29 Units = 1305 Gal/Day (No Garbage Grinder) HOLDING TANK (Floor Drains) 50 Gal/Unit x 8 Units = 400 x 500%= 2,000 Gal (Double walled Tank) / Building x 4

Here is the septic design plan

Here my Ai summary notes: Hidden Dangers (Due Diligence) Fri, 25 Sept 26 Frank Forte: Background and Firm Overview - Co-founder of Lucerne Capital, decade in small bay flex before it became mainstream - Banker and PE background before founding at age 27 - ~$500M transactional volume; ~$110-120M equity raised (mostly HNW/family office/retail) - 3-5 deals per year; net 33% IRR to investors over the decade - 92% of portfolio managed in-house; vertically integrated operations Hampton, VA Deal: A Due Diligence Case Study - Fully marketed deal, ~$3.5M, 20-year-old brick flex product near Port of Virginia - Seller: logistics family, not real estate operators, property mispriced - Compelling story: tight market, port dredging underway, NASA and Virginia Tech nearby - Key mistake: allowed themselves to get “romanced” into the deal before securing leases - Lease dump arrived with ~1 week of DD left; 6 of 9 leases materially wrong - Rents lower than stated (e.g., $10/ft gross vs. $12/ft NNN) - Tenants had 2x 5-year fixed options not disclosed - Retrade table built at a 7-cap: ~$286K adjustment requested - Roof (15-year-old metal): missing fastener replacements, needed silicone coating, bid at $105K - Survey revealed rear parking lot built ~30 feet into adjacent property - No easement existed; sellers unaware who built it - Adjacent land owned by Virginia Economic Development Authority and actively for sale - Parking supported tenant ratios; losing it created compliance risk - Environmental violation: parking in stream setback buffer - Sellers refused to move on price, easement, or parking removal; deal killed - Dead deal costs: ~$20K (third-party fees, survey, discounted attorney fees) WALT Strategy: Buying and Curating for Exit - Target: get to 60-70% of rent roll within the hold period (typically 3 years) - Leave remaining upside for the next buyer to avoid compressing exit cap rate - Curate WALT on the way out to ~2 years

Summary Notes from - Underwriting Your New Build Fri, 04 Sept 26 Know Your Buy Box First - Define target markets and objectives before site hunting - Population: 150,000–200,000 people within a 20-minute drive time - Median income: confirms whether local businesses can afford rents and whether rents will cover high construction costs - Growth signals: - Track residential and commercial permit activity via Tract IQ or Google Earth - In the Sunbelt, look for freshly disturbed red dirt as a proxy for growth - In the Northeast/Midwest, growth matters less; density of trades and small businesses is the signal - Spending per capita: $12,000+ is the key threshold for flex/small bay viability (source: Cody/World Engine report) - Clarify investment objective before underwriting: - Long-term cash flow hold (family/friends money) - JV with no hard IRR threshold - LP investors targeting 22%+ IRR on a 5-year exit Site Feasibility: Quick Calculations - Buildable area formula: acreage × 43,560 × 0.27 = buildable sq ft - Example: 5 acres → ~58,000 sq ft buildable - Rough site area breakdown: - Parking and drive aisles: ~40% - Setbacks and landscaping: 20–25% - Detention: ~10% - Easements and right-of-ways: ~5% - Always check FEMA flood maps and wetlands early: unusable acreage changes land price negotiation entirely - Utilities: distance from sewer, water, and electric can add hundreds of thousands to site work budget - Fire suppression: call the fire marshal early - Sprinklers can add ~$5/sq ft (5–6% cost increase on an efficiency build) - Demising with fire-rated walls every 12,000 sq ft (or per local code) can avoid sprinkler requirement - Paving and fire lane requirements can also reduce buildable area The 20-Minute Go/No-Go Underwrite - Run this before signing a PSA or spending any money; can be done in a long day - Eight variables to estimate: 1. Land cost (negotiate from ask; apply discount if motivated seller) 2. Buildable square footage (use the 27% formula) 3. Vertical construction cost (varies widely by finish level: basic high-bay vs. bathrooms, mezzanines, epoxy floors) 4. Soft costs: 8–10% of hard costs 5. Vacancy: 5–8% signals a healthy or undersupplied market 6. Site work: $5–$10/sq ft of disturbed area; biggest deal-killer across the whole process 7. Market rent: distinguish C-class comps from Class A achievable rents (can be several dollars/sq ft higher) 8. Exit cap rate and hold period: tied to market tier and investor strategy

Thanks Christen, I just signed up for a Tract IQ demo session and was impressed on what it could do

@Will Skillman same here

Thanks for the recordings. It’s a great resource to refer back to in the archives. Especially if I can’t make the original call.