West Valley Secure Logistics

Strategic Industrial Contractor Storage

Grantsville, Utah Development

Prepared By

Blake Ross & Zack Atkinson

Estimated Duration

May 2026 - Dec 2028

Page 1

Investment Highlights

Total Capital Required

$1.59M

Inclusive of purchase, reserves, & fees.

Projected ROI

172.3%

Targeted ROI over 2 years

Private Investor Exit IRR

68.24%

Expected 2-Yr Hold (Including Pref. Return)

Acreage & Configuration

5.37 Acres

Configured to 5 independent 1-acre pads

Fully Automated Light Ind. (M-D) Zoning Low Overhead Model
Page 2

Executive Summary

This formal business plan outlines the strategic acquisition, development, and operational management of a premier industrial contractor secure storage facility in Grantsville, Utah. The primary investment horizon concludes around December 31, 2028, although long-term operational viability extends through a 25-year debt amortization period.

The development is centered on a 5.37-acre industrial parcel specifically chosen for its proximity to the Interstate 80 corridor and its location within the Utah Inland Port Authority's (UIPA) sphere of influence. The area is experiencing many tailwinds including population growth, job growth, and infrastructure development. There are plans for over 20,000 new homes to be built within the area. The property also sits in the middle of a multibillion dollar industrial development project within 30 minutes from Salt Lake City.

Total Cost

$1,593,000

Target Exit IRR

51.14% - 85.33%

The objective of this document is twofold: first, to provide a sophisticated investment framework for limited partners seeking exposure to the high-growth Industrial Outdoor Storage (IOS) asset class; and second, to lay out the underlying operational framework for the development and management of the facility by West Valley Secure Logistics. This plan ensures debt service constraints are respected while modeling the upside potential of a high-density operational pivot.

Page 3

Our Team

The project is led by a management team with a proven track record in entrepreneurship, financial management, and operational scaling. The leadership of Blake Ross and Zack Atkinson ensures a balance between high-level strategic underwriting and granular, tech-driven execution.

Blake Ross

Blake Ross

Managing Partner

Blake brings a background as a former founder with extensive experience in sales, marketing, and the development and integration of automation systems. His expertise in managing teams and scaling growth is essential to the long-term expansion of the company within the Industrial Outdoor Storage (IOS) market. Blake will leverage this experience to enhance day-to-day operations and implement a robust organizational structure designed to maximize revenue per acre.

Zack Atkinson

Zack Atkinson

Managing Partner

Zack brings a background in entrepreneurship, operations, and business development. As the founder and managing partner of multiple ventures, he has experience overseeing day-to-day business operations, managing employees and contractors, and executing growth strategies that improve efficiency and profitability. His experience in client acquisition, marketing development, and operational management provides a strong foundation for supporting the ongoing management of the project. Zack will leverage this experience to oversee operational processes, tenant relationships, and the daily execution required to ensure the project operates efficiently and maintains strong occupancy.

Page 4

The Market Opportunity

Industrial demand in the West Valley area is surging due to institutional developments like the 650-acre Interstate Business Park and the 1,700-acre Lakeview Business Park. These parks attract large-scale manufacturing and distribution tenants, creating a critical need for Industrial Outdoor Storage (IOS) and contractor yards to support their machinery and logistics operations. Consequently, lease rates have improved offering a robust and growing revenue profile, paired with declining cap rates in the area.

Complementing the industrial boom is a massive residential pipeline, including master-planned communities like Sagewood Village, which is entitled for over 1,000 lots, and the 120-acre Deseret Meadows project. This expansion, paired with a median household income growth of 8.24%, ensures high demand from the civil, utility, and landscape contractors who serve as the primary tenant base for contractor storage facilities.

The "Displacement Effect" in Salt Lake

The central thesis of this development is the "displacement effect" occurring in Salt Lake County. As land prices escalate, traditional blue-collar businesses—such as contractors and logistics companies—are being pushed to the periphery.

Northern Utah’s industrial market is tightly constrained, with a vacancy rate of only 1.9% as of Q3 2025. Secure outdoor storage is nearly impossible to find in core Salt Lake County markets.

National IOS Demand Segment by Size

Page 5

Competitive and Market Analysis

Existing outdoor storage in the Tooele area is largely characterized by low-quality, unsecured land with minimal improvements. The West Valley Secure Logistics project differentiates itself by providing institutional-quality security (8-foot fencing, high-lumen LEDs, 24/7 digital surveillance) which justifies a premium rental rate of $7,000 per acre monthly. The property is already zoned M-D.

Property Details Link / Source Effective Rate
4.16 Acres - Raw Land, No Security KSL Classifieds $4,500/Acre/Month
3,200 sq. ft. (.08-Acre) Sandy, M-1 Zoning KSL Classifieds $8,700/Acre/Month
0.81 Acre Lot in Salt Lake (501 W 900 S) LoopNet $7,840/Acre/Month
Average Price - $7,013/Acre/Month

Operational Framework Strategy

The "Unmanned Yard" Model

By eliminating on-site staffing and utilizing a robust tech stack, the facility targets an OPEX ratio of just 17.4%. Key features include Automated Gate Access (Remootio), Cloud Surveillance (IP camera arrays), and Digital Property Management (Storable).

Revenue Maximization: Modular Yield Pivot

The 5.15 rentable acres are configured into five independent 1-acre pads.

  • Model A: Contractor Pad Lease (Base). Target: $7,000/pad/mo.
  • Model B: Truck Parking (Upside). Target: $350/truck/mo.

Lease Filling Strategy

The strategy to rapidly fill the facility leverages the seller's existing real estate marketing efforts. Per the purchase agreement, the seller will market and secure leases for the yard alongside the buyer until full occupancy is achieved. Additionally, the seller has agreed to lease two 1-acre pads for up to four months post-construction, directly subsidizing any financing payments during the critical initial lease-up period.

Page 6

Construction & Timeline

Project Overview: 5.37-Acre Storage Multi-Pad

  • Total Acreage: 5.37 Acres (approx. 233,917 sq. ft.)
  • Units: 5 independent storage pads (approx. 1 acre per pad, including access lanes).
  • Security Infrastructure: 8-foot chain-link fencing, triple-strand barbed wire, motion-activated LED lighting, and 24/7 4K surveillance.
  • Access Control: Individualized keypad entry for main and internal gates.

Construction Details

Surface Preparation

Clearing of vegetation and leveling. Application of 4–6 inches of compacted slag or recycled asphalt to ensure heavy-vehicle support and drainage.

Perimeter & Internal Division

Installation of 8-foot commercial-grade fencing. Each of the five pads will be fully enclosed, allowing for individualized security.

Security & Tech

High-output LED poles positioned at all four corners of every pad. A centralized NVR (Network Video Recorder) system with remote cloud access.

Access

Heavy-duty motorized cantilever gates with weather-shielded keypads.

Development Timeline

Phase Milestone Start Date End Date
I Acquisition & Mobilization June 1 June 5
II Site Prep & Grading June 6 June 15
III Infrastructure (Electrical/Security) June 16 June 23
IV Fencing & Gate Installation June 24 June 28
V Final Inspection & Handover June 29 July 15
VI Leasing & Occupancy July 15 August 31
Page 7

Operating Procedures

Standard Operating Procedures (SOP)

Facility Upkeep & Access Management

  • Leveling: Smoothing ruts/potholes in slag with on-site skid steer.
  • Debris: Clearing perimeter fence lines of wind-blown trash.
  • Weather: Clearing access lanes after major snow/rain events.
  • Access: Unique 6-digit codes are generated upon lease signing and deactivated automatically upon termination or non-payment.

Leases stipulate that tenants are responsible for the cleanliness and internal organization of their specific pad.

Leasing Structure & Strategy

Feature Detail
Lease Term 12-month initial term, converting to month-to-month thereafter.
Security Deposit Equivalent to 1.5 months' rent.
Insurance Requirement Tenants must provide a Certificate of Insurance (COI) naming the landlord as additionally insured for stored property.

Escalator Strategy (Revenue Growth)

To protect against inflation and rising property taxes, a structured escalator is built into every lease:

Annual Fixed Increase

Automatic 3% increase on the base rent every 12 months.

Market Reset Clause

At 24 months, landlord reserves right to adjust rent to "Fair Market Value" if local comps rise >10%.

Late Fee Penalty

$100 flat fee or 10% of monthly rent (whichever is higher) at 5 days. Gate access suspended on Day 6.

Page 8

Truck Parking Strategy

There is currently a 1.7 million space shortage for truck parking in the U.S., costing the industry over $100B annually in lost time and safety risks. We can fill this need.

Operational Model & Capacity

  • Estimated Capacity: 25 - 28 semi-truck units (tractor & 53' trailer) per acre.
  • Access Control: Keypad/gate system issues "Instant Access" codes upon booking.

Marketing & Growth

  • Platform Integration: Automated listings on TruckParkingClub.com ensure visibility.
  • Dynamic Inventory: Acreage dedicated for truck parking can be dictated by demand.

Tiered Pricing Revenue Model

Rate Tier Price Point Strategy
Monthly $350 / month Provides stable, "anchor" cash flow from local owner-operators.
Weekly $125 / week Targets regional drivers on specific 7-day routes.
Nightly $35 / night Captures transient parking needs
Revenue ~$36,400 / month Calculated at 20% vacancy rate

Contractor Yards vs. Truck Parking

Metric 5-Pad Contractor Model Semi-Truck Parking Model
Tenant Density 5 Tenants 80–140 Units
Management Low (Monthly Billing) High-Automation (Daily Turnover)
Revenue Ceiling Capped by Pad Leases Higher (via daily/weekly premiums)
Risk Profile Each lease is 1/5 of revenue High volume, lower single vacancy risk
Page 9

Initial Outlay & Capital Stack

The total project capital requirement is $1,593,000. Includes capitalized 12-month interest reserve of $72,000. We will also be able to aquire a $50,000 line of revolving credit from our banking partner for working capital needs.

Acquisition Budget

Category Budget ($) %
All-In Purchase Price $1,450,000 91.0%
Interest Reserve (12-Mo) $72,000 4.5%
SBA Guarantee Fee $33,000 2.1%
Other Fees (Title, Insp.) $38,000 2.4%

Capital Sources Stack

Source Amount % Terms
Senior Debt (SBA) $1,345,000 84.4% 6.67% Fixed, 25-yr
Seller Note $98,000 6.2% 6.67% Fixed, 25-yr
Investor Equity $135,000 8.5% 10% Pref. Return
Personal Capital $15,000 0.9% Common Equity

Equity & Ownership Structure

Ownership Breakdown

  • 90% - Atkinson Ross Strategic Partners
  • 10% - Private Investment Partner

Partner Benefits

The Private Investment Partner will receive a 10% Preferred Return on a quarterly basis. Additionally, a 10% ownership stake will provide a 10% straight split of profits and be paid out proportionally in the event of a sale or recapitalization event.

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Debt structure & Annual Expenses

Loan & Equity Assumptions

Assumption Source Details
Total Loan Amount $1,443,000.00
Senior Debt (SBA Loan) $1,345,000.00 (6.67%, 25 Yrs)
Seller Note Amount $98,000.00 (6.67%, 25 Yrs, Fixed)
Personal Equity Amount $15,000.00
Investor Equity Amount $135,000.00 (10% Stake, 10% Pref. Div.)
10-Year Treasury / CDC Spread 3.00% / 3.67%

Projected Annual Operating Expenses

Expense Category Amount
Maintenance (Slag, Snow, etc.) $16,000.00
Insurance $12,000.00
Property Tax $11,323.62
Utilities (Electric, Security, Office) $9,000.00
Miscellaneous / Admin $3,000.00
Marketing $2,500.00
Total OPEX $53,823.62

Debt Payments Summary

Annualized SBA Debt

$110,699.13

$9,224.93 / month

Annualized Seller Note

$8,065.81

$672.15 / month

Total Annual Debt

$118,764.94

Total P&I

Page 11

Conservative Financial Projections ($5,500/acre/month)

Monthly P&L (Year 1) & Debt Svc

Anticipated monthly profit and loss statement for the first year of operation, accounting for progressive lease-up.

Mo. Rev ($) Exp ($) NOI ($) Debt ($) Net ($)
Jun 0 1,544 -1,544 -9,897 -11,441
Jul 7,088 2,269 4,820 -9,897 -5,077
Aug 14,177 3,794 10,383 -9,897 486
Sep 28,354 3,944 24,410 -9,897 14,513
Oct 28,354 4,244 24,110 -9,897 14,213
Nov 28,354 4,544 23,810 -9,897 13,913
Dec-May 170,124 30,364 139,760 -59,382 80,378
Total Y1 276,451 50,699 225,749 -118,765 100,165

Detailed Debt Service

Tier Principal Rate Annual P&I ($)
SBA 504 1,345,000 6.67% 110,699
Seller Note 98,000 6.67% 8,066
TOTAL DEBT 1,443,000 9,897.08 /mo

Annual Pro Forma Projections (5-Year)

Over a five-year horizon, the property is expected to see steady NOI growth driven by contractual rent escalators (projected at 3% annually). DSCR remains robust above the 1.25x industry benchmark.

Yr Gross Rev ($) Ops Exp ($) Annual NOI ($) Debt Svc ($) DSCR
1 276,448 50,699 225,749 118,765 1.90
2 350,450 54,824 295,627 118,765 2.49
3 360,964 57,102 303,863 118,765 2.56
4 371,793 58,815 312,978 118,765 2.64
5 382,947 60,579 322,368 118,765 2.71
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Expected Financial Projections ($7,000/acre/month)

Monthly P&L (Year 1) & Debt Svc

Anticipated monthly profit and loss statement for the first year of operation, accounting for progressive lease-up.

Mo. Rev ($) Exp ($) NOI ($) Debt ($) Net ($)
Jun 0 1,544 -1,544 -9,897 -11,441
Jul 9,022 2,269 6,753 -9,897 -3,144
Aug 18,043 3,794 14,250 -9,897 4,353
Sep 36,086 3,944 32,143 -9,897 22,246
Oct 36,086 4,244 31,843 -9,897 21,946
Nov 36,086 4,544 31,543 -9,897 21,646
Dec-May 216,516 30,364 186,158 -59,382 126,776
Total Y1 351,842 50,699 301,144 -118,765 173,298

Detailed Debt Service

Tier Principal Rate Annual P&I ($)
SBA 504 1,345,000 6.67% 110,699
Seller Note 98,000 6.67% 8,066
TOTAL DEBT 1,443,000 9,897.08 /mo

Annual Pro Forma Projections (5-Year)

Over a five-year horizon, the property is expected to see steady NOI growth driven by contractual rent escalators (projected at 3% annually). DSCR remains robust above the 1.25x industry benchmark.

Yr Gross Rev ($) Ops Exp ($) Annual NOI ($) Debt Svc ($) DSCR
1 351,842 50,699 301,144 118,765 2.54
2 446,028 54,824 391,204 118,765 3.29
3 459,409 57,102 402,307 118,765 3.39
4 473,191 58,815 414,376 118,765 3.49
5 487,387 60,579 426,808 118,765 3.59
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Investor Yield & Exit Scenarios (10% Stake)

The following tables illustrate the projected returns for the Private Investment Partner (10% equity stake, initial investment of $135,000) under both the Base Case ($5,500/acre/mo) and the Upside Case ($7,000/acre/mo). All figures account for the 10% Preferred Return payout and assume a conservative 7.5% exit capitalization rate. With industrial IOS cap rates actively trending down in this corridor, this creates a strong probability for an even higher exit valuation.

CONSERVATIVE CASE

$5,500/Acre/Month Lease Model

Total Property Exit Value (Yr 2)

$3,933,495

Total Return (Yr 2)

120.03% ROI | 51.14% IRR

Hold Period Property Exit Value Investor Share of Sale* Cumulative Return Payouts Total Profit (Sale + Div)† IRR
Year 3 $4,051,500 $260,203 $80,809 $206,012 40.48%
Year 5 $4,298,237 $290,247 $142,985 $298,231 32.43%
Year 10 $4,982,835 $375,912 $315,348 $556,260 26.53%
EXPECTED CASE

$7,000/Acre/Month Lease Model

Total Property Exit Value (Yr 2)

$5,207,861

Total Return (Yr 2)

224.83% ROI | 85.33% IRR

Hold Period Property Exit Value Investor Share of Sale* Cumulative Return Payouts Total Profit (Sale + Div)† IRR
Year 3 $5,364,097 $388,837 $106,942 $360,779 61.28%
Year 5 $5,690,770 $426,715 $189,084 $480,799 44.60%
Year 10 $6,597,163 $534,116 $416,846 $815,962 33.77%

* Investor Share of Sale: Represents the investor's 10% equitable claim on the Net Equity at the time of sale. This figure is calculated after the hypothetical payoff of the remaining principal balances on the SBA loan and Seller Note, as well as an assumed 2% broker fee + disposition costs applied to the Gross Property Exit Value.

† Total Profit (Sale + Div): Represents the total cash return *in excess* of the original principal. It is calculated by summing the total Cumulative Return Payouts received up to that point, adding the lump sum Investor Share of Sale, and then explicitly subtracting the Initial Project $135,000 Equity Investment to reflect pure profit.

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Risk Analysis & Mitigation

Breakeven Analysis

The minimal operating overhead of our "unmanned yard" model yields an exceptionally low operational breakeven threshold.

Metric Value
Annual Debt Service $118,765
Total Fixed Costs (Annual) $172,589
Breakeven Monthly Revenue $14,382
Occ. Breakeven (at $5,500 Base) 52.3% (2.6 Pads)
Occ. Breakeven (at $7,000 Expected) 41.1% (2.1 Pads)

DSCR Sensitivity Matrix

Debt Service Coverage Ratio (DSCR) remains comfortably above the commercial standard of 1.25x even under any reasonable rental and vacancy conditions.

Lease Rate 100% Occ.
(5 Pads)		 80% Occ.
(4 Pads)		 60% Occ.
(3 Pads)
$4,000 / mo 1.57x 1.16x 0.76x
$5,500 / mo 2.33x 1.77x 1.21x
$7,000 / mo 3.08x 2.38x 1.67x

Mitigating Risk: Structure & Lot Versatility

Tenant Diversification

Unlike single-tenant NNN properties where vacancy equals 100% revenue loss, our multi-pad design diffuses risk. Lost tenet costs are coverd by existing leases, and can be replaced quickly by leveraging our ability to go after diverse markets.

Porous Infrastructure Flexibility

By utilizing compacted slag rather than poured concrete, the configuration is modular. Fences can be quickly moved to adjust pad sizes or open truck/fleet parking based on demand.

Intrinsic Land Value Floor

The property is situated within a highly desirable industrial corridor near multi-billion dollar developments. With local cap rates trending down, the underlying land asset acts as a massive equity backstop against capital loss.

Page 15

Investor Distributions

The investment structure is designed to attract sophisticated private equity by prioritizing current income and capital safety before management captures upside.

Page 16

Future Growth & Expansion Options

While our base models underwrite a highly profitable 2-to-3-year hold, the strategic ceiling for this industry extends far beyond a single asset. Should they be interested, private investors will have first right of refusal on all future opportunities in the IOS industry that Atkinson Ross Strategic Partners are involved in.

Proprietary Deal Flow

Through our relationship with the seller of the initial 5.37-acre lot, West Valley Secure Logistics holds a Right of First Refusal on additional, adjacent parcels of land. This guarantees proprietary access to expand our footprint immediately without competing on the open market.

Proven-Model Debt Access

Once the foundational model is stabilized, unlocking capital becomes frictionless. Additional structured debt (such as subsequent SBA loans and commercial bank notes) can be easily secured leveraging the cash flow of the first asset to rapidly develop new land or acquire existing businesses.

The IOS Roll-up Strategy & Multiple Arbitrage

Industrial Outdoor Storage (IOS) is currently one of the fastest-growing yet highly fragmented real estate sectors in the country. It is perfectly primed for institutional consolidation through a "wrap-up" strategy.

By leveraging our automated operational framework to acquire and integrate localized "mom-and-pop" yards into a unified portfolio, we trigger a powerful Multiple Arbitrage effect. Institutional buyers pay significantly higher multiples for scaled, institutional-grade portfolios than individual operators pay for single sites, meaning our entity's valuation scales exponentially as we assemble more acreage.

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