Clutch Industries · Confidential · 2026
West Salem
Self-Storage
Dual-Asset Investment Analysis · Patterson Building
Edgewater NW · West Salem, Oregon · Opportunity Zone Verified
.70M
Purchase Price
100K SF
Self-Storage
110K SF
NNN Industrial Hold
9M+
Combined Max Value
Section 01
Parcel Split Strategy
Patterson Building broken into two independent value centers — Self-Storage Conversion + NNN Industrial Hold
Site Parcel Diagram — Schematic
Self-Storage
Conversion
100,000 SF
~1.7–2 Acres
Phase 1
Remaining
Industrial
110,000 SF
NNN Hold
Long-Term Lease
◄ Wallace Rd (30–35K VPD) Patterson Ave NW ▲
Value Center 1 — Self-Storage
100,000 SF Conversion · ~1.7–2 Acre Parcel
Stabilized NOI,066,451
DSCR (Version B)2.44x
Exit @ 5.5% cap9.39M
Exit @ 6.0% cap7.77M
Exit @ 6.5% cap6.41M
Value Center 2 — NNN Industrial
110,000 SF · NNN Lease · 7.5% Cap Rate
@ /bin/sh.50/SF/mo.10M
@ /bin/sh.55/SF/mo.91M
@ /bin/sh.60/SF/mo.72M
Section 02
Complete Capital Stack
Purchase .70M + Whole-Building Repairs .0–.5M + Storage TI = Total All-In Cost
Version A — 5/SF TI
Purchase Price.70M
Repairs (Whole Building).00M – .50M
Storage TI (100K SF).50M
Total All-In3.20M – 3.70M
Loan (70% LTV).24M – .59M
Equity Required (30%).96M – .11M
Combined Value vs Equity: ~7.0x equity multiple
Storage @5.5% cap + NNN @/bin/sh.55/mo · midpoint repairs
Version B — 0/SF TI
Purchase Price.70M
Repairs (Whole Building).00M – .50M
Storage TI (100K SF).00M
Total All-In0.70M – 1.20M
Loan (70% LTV).49M – .84M
Equity Required (30%).21M – .36M
Combined Value vs Equity: ~8.6x equity multiple
Storage @5.5% cap + NNN @/bin/sh.55/mo · midpoint repairs
Section 03
110,000 SF NNN Industrial Hold
Remaining building held as long-term NNN lease · /bin/sh.50–/bin/sh.60/SF/mo · Valued at 7.5% cap rate
Low · /bin/sh.50/SF/mo
.10M
Estimated Value @ 7.5% Cap
Annual Gross Revenue60,000
NNN NOI (92% eff.)07,200
Cap Rate Applied7.5%
Per SF Value3.60/SF
NOI/SF: .52/yr · Monthly Total: 5,000/mo
Mid · /bin/sh.55/SF/mo
.91M
Estimated Value @ 7.5% Cap
Annual Gross Revenue26,000
NNN NOI (92% eff.)67,920
Cap Rate Applied7.5%
Per SF Value0.96/SF
NOI/SF: .07/yr · Monthly Total: 0,500/mo
High · /bin/sh.60/SF/mo
.72M
Estimated Value @ 7.5% Cap
Annual Gross Revenue92,000
NNN NOI (92% eff.)28,640
Cap Rate Applied7.5%
Per SF Value8.32/SF
NOI/SF: .62/yr · Monthly Total: 6,000/mo

NNN lease assumptions: Tenant pays taxes, insurance, maintenance. 8% vacancy/mgmt reserve applied. West Salem industrial market: $0.45–$0.75/SF/mo NNN (2025–2026).

Section 04
Combined Asset Value Matrix
100K SF Storage exit (3 cap rates) + 110K SF NNN Building (3 lease rates) vs. Total All-In Cost
Cost Reference
Ver A (5 TI): 3.20M–3.70M
Ver B (0 TI): 0.70M–1.20M
Equity Req: .21M–.11M
NNN Lease Rate Storage Exit @5.5% Cap
(9.39M)		 Storage Exit @6.0% Cap
(7.77M)		 Storage Exit @6.5% Cap
(6.41M)
/bin/sh.50/SF/mo
NNN Bldg: .10M · NOI: 07K
7.49M
Ver A: 2.04x · Ver B: 2.51x
.10M + 9.39M
5.87M
Ver A: 1.92x · Ver B: 2.36x
.10M + 7.77M
4.50M
Ver A: 1.82x · Ver B: 2.24x
.10M + 6.41M
/bin/sh.55/SF/mo
NNN Bldg: .91M · NOI: 68K
8.30M
Ver A: 2.10x · Ver B: 2.58x
.91M + 9.39M
6.68M
Ver A: 1.98x · Ver B: 2.44x
.91M + 7.77M
5.31M
Ver A: 1.88x · Ver B: 2.31x
.91M + 6.41M
/bin/sh.60/SF/mo
NNN Bldg: .72M · NOI: 29K
9.11M
Ver A: 2.16x · Ver B: 2.66x
.72M + 9.39M
7.49M
Ver A: 2.04x · Ver B: 2.51x
.72M + 7.77M
6.12M
Ver A: 1.94x · Ver B: 2.39x
.72M + 6.41M
★
Best Case: Storage @5.5% cap + NNN @/bin/sh.60/mo = Combined 9.11M vs. 0.70M all-in (Ver B) = 2.72x total cost multiple · Equity multiple: 8x+
Section 05
Self-Storage Pro Forma
Version A (5/SF TI) vs Version B (0/SF TI) · Exits at 5.5% / 6.0% / 6.5% cap rates
Version A · 5/SF TI · 60k SF
Purchase: .70M + TI: .90M = Total: .60M · Equity: .28M · Loan: .32M
Yr 1 · 50%Yr 2 · 72%Yr 3 · 85%Stab · 91%
Gross Revenue84K96K22K80K
Operating Exp32K90K24K40K
Net Op Income52K06K98K40K
Debt Service31K31K31K31K
DSCR0.82x1.17x1.39x1.48x
5.5% Cap
1.63M
Aggressive
6.0% Cap
0.66M
Market
6.5% Cap
.84M
Conservative
Version B · 0/SF TI · 60k SF
Purchase: .70M + TI: .40M = Total: .10M · Equity: .83M · Loan: .27M
Yr 1 · 50%Yr 2 · 72%Yr 3 · 85%Stab · 91%
Gross Revenue84K96K22K80K
Operating Exp32K90K24K40K
Net Op Income52K06K98K40K
Debt Service46K46K46K46K
DSCR1.02x1.46x1.73x1.85x
5.5% Cap
1.63M
Aggressive
6.0% Cap
0.66M
Market
6.5% Cap
.84M
Conservative
Version A · 5/SF TI · 80k SF
Purchase: .70M + TI: .20M = Total: .90M · Equity: .67M · Loan: .23M
Yr 1 · 50%Yr 2 · 72%Yr 3 · 85%Stab · 91%
Gross Revenue45K29K,096K,174K
Operating Exp76K54K99K20K
Net Op Income69K75K97K53K
Debt Service05K05K05K05K
DSCR0.93x1.34x1.58x1.69x
5.5% Cap
5.51M
Aggressive
6.0% Cap
4.22M
Market
6.5% Cap
3.13M
Conservative
Version B · 0/SF TI · 80k SF
Purchase: .70M + TI: .20M = Total: .90M · Equity: .07M · Loan: .83M
Yr 1 · 50%Yr 2 · 72%Yr 3 · 85%Stab · 91%
Gross Revenue45K29K,096K,174K
Operating Exp76K54K99K20K
Net Op Income69K75K97K53K
Debt Service91K91K91K91K
DSCR1.20x1.72x2.04x2.18x
5.5% Cap
5.51M
Aggressive
6.0% Cap
4.22M
Market
6.5% Cap
3.13M
Conservative
Version A · 5/SF TI · 100k SF
Purchase: .70M + TI: .50M = Total: 0.20M · Equity: .06M · Loan: .14M
Yr 1 · 50%Yr 2 · 72%Yr 3 · 85%Stab · 91%
Gross Revenue06K,161K,370K,467K
Operating Exp20K17K74K00K
Net Op Income86K44K96K,066K
Debt Service79K79K79K79K
DSCR1.01x1.46x1.72x1.84x
5.5% Cap
9.39M
Aggressive
6.0% Cap
7.77M
Market
6.5% Cap
6.41M
Conservative
Version B · 0/SF TI · 100k SF
Purchase: .70M + TI: .00M = Total: .70M · Equity: .31M · Loan: .39M
Yr 1 · 50%Yr 2 · 72%Yr 3 · 85%Stab · 91%
Gross Revenue06K,161K,370K,467K
Operating Exp20K17K74K00K
Net Op Income86K44K96K,066K
Debt Service37K37K37K37K
DSCR1.34x1.93x2.28x2.44x
5.5% Cap
9.39M
Aggressive
6.0% Cap
7.77M
Market
6.5% Cap
6.41M
Conservative

All Scenarios at Stabilization

ScenarioSFTI CostTotal (TI+Pur)Equity Stab NOIDSCR@5.5%@6.0%@6.5%
60K SF — Ver A60,000.90M.60M.28M39,8711.48x1.63M0.66M.84M
60K SF — Ver B60,000.40M.10M.83M39,8711.85x1.63M0.66M.84M
80K SF — Ver A80,000.20M.90M.67M53,1611.69x5.51M4.22M3.13M
80K SF — Ver B80,000.20M.90M.07M53,1612.18x5.51M4.22M3.13M
100K SF — Ver A100,000.50M0.20M.06M,066,4511.84x9.39M7.77M6.41M
100K SF — Ver B100,000.00M.70M.31M,066,4512.44x9.39M7.77M6.41M
▸Version B consistently outperforms on DSCR at every size — lower TI cost reduces debt without reducing revenue
▸100K SF Ver B: 2.44x DSCR · exits 6.41M–9.39M · add NNN building for 4.5M–9.1M combined total
▸Note: capital stack above includes purchase + TI only. Add .0–.5M repairs for full project cost basis
🏛️
Opportunity Zone — Verified
OZ 2.0 Benefits — Made Permanent July 4, 2025
Gain Deferral to Dec 31, 2026
10% Step-Up at 5-Year Hold
100% Tax-Free Appreciation at 10-Year Hold
No Depreciation Recapture on Exit
Dual-Asset OZ Structure Available
Section 06
Recommendation & Next Steps
West Salem Patterson Building · Dual-Asset Strategy · 2026
1
Parcel Split: Separate the 100K SF self-storage building (~1.7–2 acres) from the 110K SF remaining industrial. Each becomes an independent value center with its own cap rate, financing, and exit strategy.
2
Best Return Profile: 100K SF Version B — 0.70M–1.20M all-in (incl. repairs), 2.44x DSCR, storage exit 6.41M–9.39M. Add NNN building at .10M–.72M = combined 4.5M–9.1M total asset value.
3
Full Cost Transparency: .70M purchase + .0–.5M whole-building repairs + .0M TI (Ver B) = 0.70M–1.20M total. Equity required: .21M–.36M at 70% LTV. Equity multiple: 2.4x–2.7x on total cost, 8x+ on equity.
4
Opportunity Zone (Verified): All scenarios qualify for OZ 2.0 — 100% tax-free appreciation at 10-year hold on both assets. Dual-asset OZ structure maximizes after-tax return. Engage QOF counsel immediately.
Next Steps: Commission structural assessment · Survey parcel split boundary · Obtain NNN lease comp data · Engage QOF counsel for dual-asset OZ structure · Meet City of Salem Planning Department