1. +
SBpacific
group
East Lake Laney Lofts, Oakland Montage, San Antonio
Montage, San Antonio City View Apartment, San
Antonio
9/24/12
2. +
About SBpacific Group
Our History
SB Pacific Group acquires under-utilized properties
and transforms them into vibrant, high-value real
estate assets
Located in Berkeley, California
Founded in 1986
Experience
Focus on value-add infill development
Handles large luxury redevelopment
Lake Merritt Lodge, Oakland
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Investment Philosophy
Geographic Texas and California
Specialization High density suburban property
Management Supervise construction and
Expertise rehabilitation projects
Superior network of contacts
Fundamental Value-
Driven Approach Class B- to B+ or B renovations
Rehabilitation, repositioning, and
adaptive re-use
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4. +
Acquisition Criteria
Property Types
Multifamily rental
Retail & Office
Market Segment
Opportunistic value-add
Lodge on Perrin Creek, San Antonio
Up-trending submarket ($5-
$20 million)
Near-term growth focus in
California and Texas
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5. +
Recent Projects
San Antonio Apartment Portfolio East Lake Laney Lofts City View Apartments
San Antonio, TX Oakland, CA San Antonio, TX
San Antonio Apartment Portfolio East Lake Laney Lofts City View Apartments
- 211 units bought with 65% -Renovated creamery to 26 Class - 318 units re-branded to City View
occupancy A Condos - Rent increase and still own
- Rent increase - Full rehabilitation to 96%
- All units sold within occupancy
- Full rehabilitation to 95% 1 month of finish
occupancy
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6. The Offering
Price: $9,000,000
Built: 1984
Price Per Unit: $43,269
Price Per Sq Foot: $58.90
Units: 208
GBA: 152,800
Land Area: +/- 7 acres
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7. Location Profile
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South Texas Medical
Center
San Antonio and the Surroundings…
San Antonio is the 7th largest city in the U.S with a population of 2.08 million
Montage at North Point is near the South Texas Medical Center which includes 45 medical
institutions and over 28k professionals. Associated support businesses employ 23k. The
average wage is 20% higher than the median San Antonio income.
Montage at North Point is a short distance to USAA, a San Antonio based diversified
financial services group. Over 18,000 employees occupy the corporate headquarters at the
corner of Fredericksburg and Huebner.
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Location Highlights
Strategic Access
Advantageously located within five minutes to
two of San Antonio’s largest employment
centers
Short drive to San Antonio’s largest university,
new retail centers, and state of the art
entertainment
Flourishing Employment
South Texas Medical Center, USAA and
Wonderland of the Americas Mall in submarket
Adjacent to Fredericksburg Road and a short
distance to Interstate Highway 10 and Loop 410
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Apartment Unit Amenities
Indoor Amenities
208 Unit Garden Apartments in northwest submarket
Central HVAC and large walk-in closets (washer/dryer connections in
select units)
Washer/dryer connections and vaulted ceilings in select units
Cyber cafe and fitness center
Two clothes care facilities
Professional Leasing Center
Outdoor Amenities
Two swimming pools
Gated entry w/ picnic area and barbeque stations
Lush native landscaping with magnificent oak trees, limestone
garden walls, and courtyards
Tennis Court
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11. Apartment Unit Breakdown
Units Type Unit SF Total SF
48 1 Bed/1 Bath 500 24,000
88 1 Bed/1 Bath 700 61,600
48 2 Bed/2 Bath 900 43,200
24 2 Bed/2 Bath 1,000 24,000
208 735 152,800
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12. +Apartment Comparable
Apartment Complex # of Units Avg. Size (SF) Avg. Market Rent Rent per sq.foot
Fountain Head 688 670 $683 $1.02
Sugar Hill 184 744 $647 $0.87
San Antonio Station 172 717 $682 $0.95
Broadstone Medical 384 676 $703 $1.04
Country View 272 784 $744 $0.95
Montage at North Point 208 735 $722 $0.98
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14. Why Purchase Montage at
North Point?
Attractive Occupancy
Discount Current economic occupancy is 88% and
present physical occupancy is 96% our
target physical range is 95%
Increase occupancy and maximize
collections boosting revenue
Occupancy Value-Add Well Located Asset
Ability to attain asset directly from lender
with asset management upside (Off
Market Opportunity)
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15. Value-Add Opportunities
Exterior Additions
Landscape trimming & sprinklers
Painting a portion of the building
Recoat and restripe the driveway
Interior Upgrades
Replace carpet with Prego
Replace kitchen laminate countertops
with granite
Two-tone painting
Timing
Ideal due to expansion of South Texas
Medical Center
Historically low interest rate & depressed
price
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16. +
Expected Development Results
4/11 3/12 Actual 3rd Year Pro Forma
Gross Scheduled Rent 1,491,264 1,597,442
Vacancy and Collection Loss 183,833 201,827
Net Rental Income 1,307,431 1,395,615
Other Income 49,961 134,872
Economic Occupancy 88% 87%
Physical Occupancy 93% 94%
Total Income 1,357,393 1,530,487
Total Expenses 935,091 893,480
Net Operating Income 422,302 637,007
General Notes
Current Occupancy 90%, Stabilized 88% / Water reimbursement through Conservice
Expenses based on City View Performance
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Purchase Price Analysis
Actual 3rd yr Proforma
Purchase Price 9,000,000
Down payment $2,707,850 $2,707,850
17.20% 17.06%
NOI 422,302 637,007 17.00%
16.80%
Mortgage Payment 253,125 253,125 16.60%
• Actual
6.75MM 3.75% interest only due in 16.40%
• Pro Forma
5 years) 16.20% 16.10%
16.00%
Net Cash Flow 169,177 383,882 15.80%
15.60%
Return $ on $ 16.10% 17.06% Cash on Cash Return
General Assumptions
Assumes 75% Loan to Value
Total Cash Down payment includes 1/2 % loan fee, insurance, legal fees, title &
escrow, and capital reserve
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19. Our Market View
Key Advantages
Cheap Financing
3.75% in Pro forma Model
Attractive Market
+10% Cash on Cash Return
Up-trending submarket
Property enhancements can push
rents higher
Lodge on Perrin Creek, San Antonio
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Projected Fees
Management Structure Fee
General Management receives an acquisition fee of .75% for
sourcing, seeding, negotiating, and closing opportunity.
Asset and Management Fee is 5%
Investors and general management will split the annual net cash flow 85/15 as
long as investors receive 6% annual return on their investment.
At closing, Investors and General Management will split all proceeds 80/20 after
meeting all obligations including but not limited to debt service and closing
costs.
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21. +
Experienced Team of Professionals
Igal Sarfaty Yuval Bobrovitch
Principal & Co-founder Principal & Co-founder
Responsible for strategic Responsible for oversight of
management of the firm, Mr. construction projects, Mr.
Sarfaty identifies, evaluates and Bobrovitch is involved in site
selects investment opportunities analysis, design development
for SB Pacific Group. Prior to and construction management.
founding SB Pacific Group, Mr. Mr. Bobrovitch has extensive
Sarfaty used his entrepreneurial experience in the construction
skills to establish several small and renovation of multifamily
companies, including a residential and commercial
contracting business which he properties. He is a general
continues to operate today. contractor, and supervised all of
the early projects in the SB
He has held a real estate license since 1989.His experience Pacific Group Portfolio. Through his diligence, Mr.
as a contractor and his eye for opportunity have helped Mr. Bobrovitch sets the standard by which the full upside
Sarfaty negotiate lucrative real estate transactions that potential of properties should be reached.
create lasting value.
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