PHL Business Park

This is a $42.520mm preferred equity Investment to recapitalize a 3 building, 43-acre, 373,000 RSF office campus near the Philadelphia International Airport (“PHL”) that is 100% leased to a subsidiary of 2 national, investment grade rated health insurers with more than 14 lease years remaining.

The imputed Property Value of $162 million translates to a 5.2% cap rate and $435/SF on the asset*. Kawa’s Preferred Investment basis translates to a 5.6% cap rate Investment held in 75% Kawa / 25% Operator Joint Venture with Keystone Development Group with a Cash-on-cash (“CoC”) returns for an investment grade credit projected to equal 8% p.a. potential downside protection at end of the investment holding period, and a long-term lease executed with tenant in 2021.

Strategically-located, it is a large parcel with opportunity for alternative use value at end of lease term Kawa projects that investors will receive a (gross) fixed CoC return of 9.5% p.a. from Property distributable cash flow. Before taxes and net of fees and expenses, investors are projected to receive a fixed CoC return of 8% p.a.*