About the Investment

• 20-Year Absolute Triple Net (NNN) Lease | At closing the tenant will execute a brand-new 20-year absolute triple net lease. The property is a brand-new build that is scheduled to be completed in 2025. The lease will have zero landlord responsibilities.
• Attractive Rent Increases | The lease will feature scheduled increases of 2.00% annually, providing a hedge against inflation.
• Corporate Guarantee | The lease will be subject to a corporate guarantee from Tsunami Express. Since 2021, they have grown from 6x to 16x locations, with 11x additional locations scheduled to open in 2025. Growth plans include greenfield development and targeted M&A opportunities, with the goal of being at 27 locations by the end of 2025, providing for future credit enhancement.
• Bonus Depreciation | This property qualifies for 15-year accelerated depreciation as well as bonus depreciation. Discuss with a Certified Public Accountant for further details.
• Institutionally Backed | In 2021, Tsunami Express was purchased by Private Equity firm P72 Hyperscale. P72 Hyperscale is a private equity strategy that uses applied AI to build and modernize market-leading companies. P72 Hyperscale is part of the larger Point72, the private equity firm with ~$30 billion AUM. The partnership has enabled Tsunami to expand its geographic presence and leverage data and modern analytics to enhance pricing models, marketing systems, on-site conversion and customer retention rates through development of proprietary technology and algorithms to support operations. This technology has proven highly effective and continues to be a primary source of investment. In 2024, Tsunami Express grew their membership base by ~44%, and continues to show impressive performance metrics relative to industry averages. (82% YoY in 2023 and 44% YoY in 2024)