Gateway 7 is a seven-building flex-industrial portfolio across the Dallas Fort Worth metroplex, roughly 410,000 square feet. Five buildings are stabilized at 92 percent occupancy; two are in lease-up. Foundry Park is acquiring at about $94 per square foot, below replacement cost.
The business plan marks in-place rents to market as short-term leases roll, while finishing lease-up on the two remaining buildings. Target hold is five years with two one-year extension options. The sponsor co-invests $1.1M alongside LPs on the same terms.
The portfolio is financed with a single senior note carrying a 1.21x debt service coverage floor and a SOFR cap through October 2027. Nine months of interest reserve is funded at close. Distributions are projected to begin in the second full quarter and step up as occupancy stabilizes.
Foundry Park is a Dallas sponsor focused on flex-industrial and small-bay logistics across Texas and the Southeast. The team has completed 23 acquisitions since inception, 17 of them fully realized, and co-invests its own capital in every deal.
Across realized deals the firm has returned a 19.6 percent average net IRR to investors, with one full-cycle loss, the Lakeline Commerce Center, which Mark covers candidly in the interview above. Average hold has run just under five years.
Mark Reyes, Managing Principal, spent twelve years in industrial acquisitions before founding the firm. He signs personally on deal-level debt and answers investor questions on camera each quarter rather than through a deck.
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