Skip to content
Denholtz Logo
Participating Preferred Equity - Class A Industrial - Closing May 2026

 

 

 

SHALLOW-BAY INDUSTRIAL | AUSTIN - SAN ANTONIO CORRIDOR

16% preferred return.  Class A  industrial park. Trusted by 1,900+ investors.

Clovis Crossing -213,125 SF across 2 buildings in San Marcos, TX - Senior to all common equity.
1,800+
Investors Trust Denholtz
75+
Assets Owned & Managed 
$2B
Assets Under Management

Key investment highlights

Asset type Class A shallow-bay industrial, 2024
Total Raise $2,500,000
Preferred Return 16% Cumulative (6% Current Pay, 10% Accruing)
Minimum Redemption 1.4x
Minimum Investment $25,000
Distributions Monthly, starting ~ 60 days post-close
Participation in Valuation Increase 5% above $49M

Austin-San Antonio Corridor - Why San Marcos, TX

<5%
Small-bay Industrial Vacancy
~5M
Population between San Antonio & Austin
#1
Fastest growing US counties (Hays County)
90X
New supply — local development moratoriums in place

 Clovis Crossing is located in San Marcos, Texas — the geographic midpoint between Austin and San Antonio, directly off Interstate 35. The property sits in Hays County, one of the fastest-growing counties in the United States over the past decade, and is home to Texas State University's 38,000-student campus. The Austin–San Antonio corridor houses nearly 5 million residents today with projections of 6–7 million by 2030, supported by major employers including Tesla, Samsung, Apple, Amazon, Dell, and Google. Approximately 90% of new industrial construction in the region targets tenants larger than 100,000 SF, creating a persistent supply gap for the 10,000–50,000 SF users that Clovis Crossing is built to serve. 

Capital stack — where you sit

Senior debt
First mortgage — Refinancing with Argentic Investment Management
First position
↓
Preferred equity Your position
Senior to all common equity · 6% current and 10% accrued
16%
preferred return
↓
Common equity
Paid after debt and preferred equity
Last position

 As a Participating Preferred Equity investor, you receive your return before any distributions to existing Class A or Class B equity holders. The PPE also participates in upside above the valuation hurdle. Defined redemption rights further protect capital priority. Full structure is detailed in the offering memorandum. 

investment summary

 

 

 Attractive Return with Senior Capital Stack Position 
 Investors receive a 16% cumulative preferred return (6% paid current and 10% accruing) with distributions starting approximately 60 days post-close. The Participating Preferred Equity sits senior to all existing Class A and Class B equity, with a minimum redemption multiple of 1.4x, giving investors both income priority and capital protection during lease-up. 
 Class A Asset at a Significant Discount to Replacement Cost 
 Built in 2024 to institutional specifications — 32-foot clear heights, rear-load configuration, ESFR sprinklers — Clovis Crossing enters the capital stack at approximately $162/SF, well below replacement cost of $240/SF. Two national credit tenants are already paying rent: Ferguson Enterprises (34,560 SF, 5-year lease) and Ohio Transmission Corporation (31,760 SF). The property can accommodate up to eight tenants, with suites from 8,600 SF to full-building occupancy. 
 Supply-Constrained Market with Proven Demand 
 Small-bay industrial vacancy in the Austin–San Antonio corridor has remained below 5%, while ~90% of new development targets tenants over 100,000 SF — leaving a structural gap for users in Clovis Crossing's target range. Lee & Associates assumed the leasing assignment in September 2025 and tour activity has increased materially. Market asking rents for comparable shallow-bay product range from $13–$15/SF NNN, representing meaningful upside from current in-place rents as new leases are executed. 

READY TO LEARN MORE?

Asset 39@4x 732.956.3114
These materials are provided solely for informational purposes and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities. Any such offer or solicitation will be made only through a confidential Private Placement Memorandum (“PPM”) and related subscription documents, which should be reviewed carefully prior to any investment decision. This material does not purport to be complete and is qualified in its entirety by reference to the PPM and/or any other governing documents.
Any investment opportunity described in these materials is being offered only to persons who are “accredited investors” as defined under Rule 501 of Regulation D of the Securities Act of 1933, as amended. By accepting this material, the recipient represents that they are an accredited investor and agrees to keep all information contained herein confidential.

The information contained herein is preliminary, is not complete, and is subject to change. This material does not purport to contain all of the information that a prospective investor may require.

Investments in real estate involve substantial risks, including but not limited to market risk, property-specific risk, illiquidity, environmental risk, and the potential loss of invested capital.