MCAP Magnolia Flex
Share Class A-1 (Current-Pay) & A-2 (Accrued) LP Equity — a 46,193 SF Class A flex business park at 4200 Magnolia Parkway, Pearland, Texas.
paid quarterly in cash
total annualized return
$100k grows to $154k
paid entirely at exit
total annualized return
$100k grows to $175k
Both classes rank pari passu — side by side, with no subordination — over a three-year projected term with a targeted exit in late 2029.
A second Pearland development. The same thesis, proven twice.
Magnolia Flex is a 46,193-square-foot Class A flex business park — four buildings, 24 units — at 4200 Magnolia Parkway, Pearland, Texas. It is underwritten at $18.00/SF NNN with a 7.0% exit cap and a total project cost of about $8.1M, across a three-year build, lease-up, and sale.
This project was not a pivot. It was a conviction call. After identifying the supply-demand imbalance driving MCAP Pearland Flex — where residential growth has significantly outpaced commercial infrastructure — Meghani Capital moved to secure a second Pearland site before the window closed. MCAP Magnolia Flex represents the firm's deliberate expansion of its Pearland platform, applying the same development discipline and tenant thesis to a second high-quality site in the same submarket.
The offering is open to accredited investors through two LP share classes that rank side by side: Share Class A-1, a current-pay preferred return that distributes cash quarterly from groundbreaking, and Share Class A-2, a fully accrued preferred return paid at exit.
How Share Class A-1 works.
- 01
Investors are paid 3% in cash every quarter (12% per year), beginning at groundbreaking, for steady income throughout the build and lease-up.
- 02
The remaining return accrues and is paid at exit, bringing the total to an 18% annual target, a 1.54x return of your capital over the three-year hold.
- 03
Designed for income and capital preservation: predictable quarterly cash plus an 18% annual total-return target, rather than uncapped, back-ended risk. Returns are capped at 18% per year.
- 04
Equal-standing with the 25% accrued Share Class A-2. The two LP classes rank side by side (pari passu), with no subordination between them.
Distribution waterfall at exit.
- 1
Class A-2 Catch-Up
Class A-2 takes no cash during the hold, so it is first brought even with the cash Class A-1 received.
- 2
Return of Capital
Every investor receives their original investment back.
- 3
Preferred Return
Proceeds are shared pro-rata until each class reaches its target (A-2 25%, A-1 18%).
- 4
Residual to Sponsor
Any profit above the return caps flows to the general partner.
18% annual target over a three-year hold. Cash distributions begin at groundbreaking.
How Share Class A-2 works.
- 01
Class A-2 takes no cash during the hold — the entire return accrues and is paid in a single distribution at exit.
- 02
Targets a 25% annual return, a 1.75x return of your capital over the three-year hold.
- 03
At exit, A-2 is first brought even with the cash Class A-1 received (the catch-up); proceeds are then shared pro-rata until each class reaches its target.
- 04
Equal-standing with Share Class A-1. The two LP classes rank side by side (pari passu), with no subordination between them.
25% annual target over a three-year hold. Paid entirely at exit.
The terms, at a glance.
For accredited investors only under Rule 506(c). This summary is for informational purposes, does not constitute an offer to sell or a solicitation to buy securities, and is qualified in its entirety by the Private Placement Memorandum. Targeted returns are projections, not guarantees. Actual results will vary.
| Share Classes | A-1 — Current-Pay · A-2 — Accrued (LP Equity, pari passu) |
|---|---|
| Asset Type | Class A Flex Business Park |
| Address | 4200 Magnolia Parkway, Pearland, TX |
| Building Size | 46,193 SF |
| Configuration | 4 buildings · 24 units |
| Underwritten Rent | $18.00 / SF NNN |
| Exit Cap Rate | 7.0% |
| Total Project Cost | ~$8.1M |
| Minimum Investment | $50,000 |
| Current Pay | A-1: 12% per year, 3% paid in cash quarterly · A-2: none (accrued) |
| Target Annual Return | A-1: 18% · A-2: 25% |
| Equity Multiple | A-1: 1.54x · A-2: 1.75x |
| Return Cap | A-1: 18% per year · A-2: 25% per year |
| Projected Hold Period | 3 Years (targeted exit late 2029) |
| Current Status | Permitting |
Please note: Class A-1 pays 3% in cash every quarter (12% per year) from groundbreaking, with the balance accrued to an 18% annual target at exit. Class A-2 takes no cash during the hold — its entire 25% annual target accrues and is paid at exit.
Rapid growth, south of Houston.
Pearland is one of the Houston metro's fastest-growing suburbs, driven by sustained residential in-migration, expanding commercial demand, and a business base that has consistently outpaced available flex and light industrial inventory.
MCAP Magnolia Flex is positioned on Magnolia Parkway in Pearland — with direct access to I-35 and immediate proximity to the dense commercial and residential corridors that define the submarket's demand profile. As Pearland continues to grow, the supply gap for modern, Class A flex warehouse space remains a structural opportunity — and this project is purpose-built to meet it.
Build, lease-up, and sale by late 2029.
Interested in this opportunity?
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