Retail Presentation 2016_11
•Télécharger en tant que PPTX, PDF•
0 j'aime•150 vues
Strategic Holdings Commercial Real Estate Secured Fund paying an 8.5% targeted preferred return. Speak with an investor relations adviser for details and more information 805-764-5128 This is not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in the Private Placement Memorandum (PPM) of Strategic Diversified Real Estate Holdings, LLC., and may not be relied upon in connection with the purchase or sale of any security. Interests in the PPM, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the PPM on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. Please discuss this, and all financial matters, with your CPA or investment adviser.
Recommandé
Recommandé
Contenu connexe
Tendances
Tendances (20)
Similaire à Retail Presentation 2016_11
Similaire à Retail Presentation 2016_11 (20)
Dernier
Dernier (20)
Retail Presentation 2016_11
- 1. Strategic Holdings Investment Opportunities “The Potential for Profit is in the Acquisition and Management; The Possibility of Appreciation is Only a Bonus”
- 2. Commercial Real Estate Secured Fund • Strategic Diversified Real Estate Holdings LLC Investors are buying shares in a Non Publicly Traded Fund No Load -No surrender charge/ 1.5% Asset Management Fee Fund owns all Commercial Assets and Notes 8.5%, 10%, and 12% Targeted Preferred fixed Return Plus Series 1D SEC Filed under Regulation D 506 (C) Accredited Investors only
- 3. This is not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in the Private Placement Memorandum (PPM) of Strategic Diversified Real Estate Holdings, LLC. and may not be relied upon in connection with the purchase or sale of any security. Interests in the PPM, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the PPM on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. Please discuss this, and all financial matters, with your CPA or investment advisor. Performance data is for the period 2010-2013 is net of fees and represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented. If you want current performance data call us at 805-764-5128, or visit www.StrategicHoldings.com. We are not required by law to follow any standard methodology when calculating and representing performance data. The performance of the performance of the fund may not be directly comparable to the performance of other private or registered funds. Fund Interests (Interests) are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. The Securities and Exchange Commission has not passed upon the merits of or given its approval to the Interests, the terms of the offering, or the accuracy or completeness of any offering materials. Interests are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their Interests. Investing in Interests involves risk, and investors should be able to bear the loss of their investment. The securities offered are not subject to the protections of the Investment Company Act. All performance advertised is inclusive of all fees and expenses. Securities offered through Emerson Equity LLC, member FINRA/SIPC. Strategic Holdings and Emerson Equity are not affiliated.
- 4. Commercial Real Estate Secured Fund Speakers Real Estate Cycle, Economic Context, Commercial Real Estate Note and Property Investments Derrick B Grüner, Esq, Executive Vice President Sample Investment Properties in the Portfolio Jackie Trojanowsky, Chief Investment Officer Q&A Panel Derrick B Grüner, Raul Gamino, and Patty Franklin, Jackie Trojanowsky
- 5. Patty Franklin, EVPInvestorRelations • FINRA Securities License 6, 7,63, & 65 for 15 years • Currently Registered with Emerson Equity • Independent Registered Investment Advisor for UBS, LPL, Cambridge, and TD Ameritrade • BS, UCLA in 1995 • Financial Planning Designation (PFP), UCLA • MBA, CLU with emphasis in Financial Planning
- 6. Types of Risk Systematic • Market • Interest Rate • Inflation • Reinvestment • Exchange Rate **** Cannot be eliminated by diversification Unsystematic • Business • Financial • Default • Liquidity • Marketability ***Reduced or eliminated by diversification
- 7. Traditional Asset Types • CD’s • Safe, FDIC insured • Low rates = low yield • Stocks • Liquid, can hedge against inflation • Can make money • Can lose money • Bonds • Set coupon, fixed rate • Price goes down when interest rate goes up
- 10. Potential for Monthly Income • Historically uncorrelated to the general stock market • Potential Cash Flow opportunities • High Yield Fund • Provides Diversification by having Commercial Real Estate Exposure across the US and Alternative Investment exposure Commercial Real Estate Secured Fund
- 11. Derrick B. Grüner, Esq. ExecutiveVicePresident/ GeneralCounsel • 24 year veteran of the real estate finance industry. • General Counsel & Chief Legal Officer at Genesis Capital, Counsel at Anchor Loans, and before that partner at a large east coast law firm • Nearly 10yrs of real estate finance experience prior to the practice of law in mortgage banking, business development, underwriting, and secondary markets. • Recognized leader in the field, frequently asked to moderate and present at industry conferences throughout the United States; published, quoted, and featured in a variety of publications and trade journals. • Leadership Los Angeles Class of 2014; Greater Miami Chamber Board Member 2010-2012; Leadership Miami Class of 2009; Leadership Jacksonville Class of 2005. • Member of the Florida Bar, is admitted to the United States District Court, Middle District of Florida, and admitted to practice in California as Registered In-House Counsel.
- 12. Real Estate Cycle Targeted Purchase Point
- 13. Economic Context • Population growth (Millennial Generation) • Household formation/pent-up demand • Construction below demand • Job and Wage growth • Interest rates are at historic lows
- 14. Why Multi-family? Residential • Historically More Competition • No Rental Income • Less Potential for Profit Multi-family • Historically Less Competition • Immediate Potential for Rental Income • Larger Potential for Profit
- 15. Targeted Investment Strategy • Buy Value Add Real Estate Targeted Investment Opportunities • Maximize Value and Cash Flow through Proactive Management • Maximize Profitability ( i.e. through Prudent Financing)
- 16. Why We Have Historically Been Successful • Acquire What We Believe to Be Undervalued Real Estate & Notes • Historically mismanaged assets • Distressed Price Does Not Necessarily Mean Distressed Property • Less than 5% of Properties Analyzed are Purchased • Our goal is to efficiently reposition the property • Our goal is to achieve market occupancy
- 17. Risk Mitigation • Currently income producing assets • Target cap rates of 7.5 to 9 • Target low levels of debt at low rates
- 18. Jackie Trojanowsky Chief Investment Officer • 17 years experience in commercial mortgage-backed securities • CMBS experience including sourcing, underwriting, special servicing, and asset management • Originated CMBS loans for GE Capital Real Estate • University of Texas at Austin
- 19. 4801 Marshall Avenue Newport News, VA -- 400 Units Stabilized Market Value $21,428,571 (7% cap rate, 400 units) Acquisition Price: $4,313,077 Reposition Costs: $13,100,000 All in Cost Basis: $17,413,077 Estimated Profit: $4,015,494 Condition When Purchased Stabilized NOI: $1,500,000 (400 units) * Stabilized Market value based on internal pro-forma valuation
- 21. 4801 Marshall Avenue Newport News, VA -- 650 Units
- 22. 235 James Harrison Parkway Tuscaloosa, AL Stabilized Market Value*: $13,000,000 (7% Cap Rate) Acquisition Price: $4,850,000 Reposition Costs: $5,700,000 All in cost basis: $10,550,000 Estimated Profit: $3,850,000 Condition When Purchased Stabilized NOI: $900,000 * Stabilized Market value based on internal pro-forma valuation
- 24. 235 James Harrison Parkway Tuscaloosa, AL
- 25. 2318 Cecil Road Richmond, Virginia – 98 Unit Stabilized Market Value*: $7,000,000 (7% Cap Rate) Acquisition Price: $5,450,000 Reposition Costs: $1,000,000 All in cost basis: $6,450,000 Estimated Profit: $550,000 Condition When Purchased Stabilized NOI: $500,000 * Stabilized Market value based on internal pro-forma valuation
- 27. 2318 Cecil Road Richmond, Virginia – 98 Unit
- 28. 1940 Atlanta Rd SE Smyrna GA– 192 Unit Stabilized Market Value*: $14,400,000 (7% Cap Rate) Acquisition Price: $11,075,000 Reposition Costs: $950,000 All in cost basis: $12,025,000 Estimated Profit: $2,375,000 Condition When Purchased Stabilized NOI: $900,000 * Stabilized Market value based on internal pro-forma valuation
- 30. 1940 Atlanta Rd SE Smyrna GA– 192 Unit
- 31. How Do You Mitigate MY Risk? • Diversified • Over $5 million equity cushion • Historical acquisition prices typically 60–70% of realizable value • Audited financials by a top accounting firm • A+ rating from the Better Business Bureau
- 32. How do I Participate • LLC Fund • 4 Equity Tranches • Series 1A (8.5% targeted) – open • Series 1B (10 % targeted) – Closed • Series 1C (12% targeted) – Closed • Series 1D (10% targeted) plus 25% profit participation - Closed • Targeted monthly dividend payments • Liquidity • IRA Eligible
- 33. Who Gets Paid First? Cash From Rental Income & Property Sales STRATEGIC DIVERSIFIED REAL ESTATE HOLDINGS, LLC Creditors & Investors Paid First STRATEGIC DIVERSIFIED MANAGEMENT, INC Office Space, Employee Salaries Paid Second
- 35. Estimated Income Fund 1 Equity Fund Equity $95,500,000 Third Party Debt $41,500,000 Estimated Value $54,000,000 Members Invested Capital $52,000,000 Equity Cushion $2,000,000 As of 9/1/2016 Fund Equity: $95,000,000 (Market Value) plus $2,000,000 (cash) = $97,500,000 Third Party Debt: $41,500,000 Estimated Value: $54,000,000
- 36. Q & A Session Panel Derrick B. Gruner, Esq., Executive Vice President / General Counsel Jackie Trojanowsky, Chief Investment Officer Patty Franklin, EVP Investor Relations
Notes de l'éditeur
- For the past 25 years, my passion has been to build successful companies You may be thinking I’ve been part of some great financial institutions – why commercial real estate and why now? Let me start off with a question – please raise your had if you are happy with the rate you are getting on your CD’s? MMDA’s? Bonds?
- Fundamentals have to drive it up, not QE and/or rock bottom interest rates Construction peaked before each crash, while construction has been picking up, we are no where near the peak Commercial tends to lag residential by 18 months or so
- Pent-up demand for apartments. During the recession, many potential renters put off striking out on their own -- # of households under the age of 35 shrunk, even though the # of people in that age bracket kept rising. The hiccup in the rate of household formations has led to a shortfall of roughly 1.7 million households --when these young people finally strike out on their own, with most renting apartments. Estimates are that this pent up demand for apartments ~ 500,000 units. Population Growth NAREIT estimates the supply of new apartments is still 750,000 units short of keeping up with organic population growth. Construction is still below the demand for new apartments. Historically, the U.S. apartment market has needed roughly 300,000 new units per year to meet demand from renters. Last year, deliveries of new product were 12 percent below historical average delivery levels. More jobs in 2014 than in the previous 17 years More jobs = more renters Less people can afford to buy, so the percentage of renters increases. Also, rates rise when the economy starts picking up. When the economy picks up, rents go up Rates are at historic lows and everyone knows they will rise at some point in time Less people can afford to buy, so the # of renters increases Interest rates rise when the economy starts picking up (that is when the Fed starts raising its rates to the banks When this happens, rents go up! And seeing all this, we transitioned to multi-family
- Why commercial RE? Why now? In 2008, most of us took a 40% loss on our savings During the recovery phase, when most Investors were paralyzed by their losses, we started investing in the residential market, did very well The market was so good, the big boys like Blackrock entered the market, $6 billion, $1 billion in 6 cities Home flips are great … make $30k -- $60k a flip With commercial it can be a lot more, and, even better, is holding it for annual cash flow, rising rental income, and potential long term appreciation Residential – dwindling deals, everyone doing it Commercial – less competition than residential and in our niche; Individuals doing the smaller 1-4 unit types; big firms doing the larger deals (they look more at total profit potential vs. % profit potential); our niche is $2-$10M; bigger than the guy working out of his home; smaller than the huge companies; nice profitable niche for us
- Acquire predictable income producing Real Estate Investments Primary focus on Apartment Buildings (Multi-Family Housing) Target mismanaged properties in viable markets High Cap Rates in Secondary/Tertiary Markets Maximize value and Cash Flow thru Proactive Management Cure all deferred maintenance Obtain market rate occupancy Obtain market rate rents Example – VA, 1% of units - Cops live for free Maximize profitability thru prudent financing Interest rates are at historic lows As of [date] at Strategic is at xx% leverage CHANGE THIS SLIDE TO INCLUDE THE GRAPH OR CHART
- Owner may be under water Special servicer has reasons Banks have new regulations regarding % of performing vs. non-performing on their balance sheets; they are inefficient in foreclosures; don’t like to be property managers; want to clean up their balance sheets; lot of work involved; don’t want bad PR We buy properties with strong potential; 60-65% of realizable value Substantial experience: underwriting; servicing; repositioning; selling; etc. Highly disciplined approach, 4 people on acquisition team doing analysis Strong property management team; both here and on site
- Real Assets – Not intellectual capital, but buildings and dirt and income every month (i.e. if we all get hit by a bus, you still get a check every month) Income Producing Assets – Gold, Silver, etc., no income at all, just speculation that it may go up – even if property does not appreciate! Insert exact cap rate range for Strategic to date POSSIBLY ADDING THIS SLIDE INTO “WHY COMMERCIAL REAL ESTATE?” “PROVE MY INVESTMENTS IS SAFE”
- If you put $1 million into an apartment building, you are tied to that one building, what if a major employer moves out of town? You need to have many properties, different geographies, diversification! Management only profits after all Investors are paid.
- Buying shares in a fund No upfront fees, no back end fees, no loads Investors get paid before management gets paid, before, salaries, rent, etc., If one month cash flow can’t cover payments, can dip into 1-D shares, then replenish it the next month Employees have also purchased $1.35 million as preferred equity shareholders, just like you! Check every month, unless choose to have dividends reinvested (good option for IRA’s) PPM; Operating Agreement; Subscription Agreement