VASA Fitness - Michigan

Midloch is providing $2,625,000 of preferred equity for the acquisition and repositioning of a 45,001 SF former JoAnn Fabrics anchor box at 3737 Carpenter Road in Ypsilanti, Michigan, into a build-to-suit VASA Fitness. VASA Fitness has signed a firm 15-year, NNN lease starting at $23.50/SF with three 5-year extension options and a corporate guarantee.

The Property anchors Valley View Center along Carpenter Road, adjacent to both Target and Meijer in one of Ypsilanti's most established retail corridors, with easy access to US-23 and just minutes from Ann Arbor. The surrounding trade area is densely populated with average household incomes surpassing $100,000 and is well-suited
to VASA's membership model, and the corridor has continued to see strong leasing momentum and improving retail fundamentals.

Midloch holds a priority preferred equity position in the capital stack, ahead of its Partner’s common equity, earning a 16.00% preferred return (7% paid currently, 9% accrued) with a contractually guaranteed minimum 1.16x equity multiple at redemption. Midloch's last-dollar basis of $9,375,000 represents approximately 87.8% of the$10,680,220 total capitalization, with its Partner’s common equity fully subordinate absorbing the first loss ahead of Midloch's preferred equity.