AMERICAN REALTY ADVISORS. Investment Strategies and Criteria

Transcription

1 Investment Strategies and Criteria Corporate Headquarters 801 North Brand Boulevard, Suite 800 Glendale, CA LOS ANGELES ATLANTA CHICAGO PHILADELPHIA SAN FRANCISCO

2 Acquisition Investment Criteria merican Realty Advisors has provided innovative real estate investment management solutions to institutional investors for over 26 A years. As one of the largest privately-held real estate investment management firms in the United States, American is focused exclusively on providing premier real estate investment management services to our clients. Utilizing our comprehensive tactical and strategic real estate, American provides a full range of core, core-plus, and valueadded real estate investment services. American is committed to providing quality, value, and security to our clients in their real estate portfolios as we partner with them in the stewardship of their capital. Investment Parameters Investment Structures Property/portfolio acquisitions or recapitalizations, direct equity, joint venture equity, mezzanine and preferred equity, high leverage senior loans and full capital stack preferred equity joint ventures and debt/equity structures Investment Strategies Asset Types Target Asset Size Leverage Investment Terms Core, core-plus, and value-added Office, industrial, retail, and multi-family $20 to $200 million (the acquisition of smaller industrial assets will be considered) All cash or moderate use of leverage (up to 65%) including the assumption of debt as part of an acquisition 3 to 5 years; with longer terms up to 10 years considered for core investments Focus on Quality Institutional Real Estate Assets merican seeks to invest in institutional-quality office, industrial, retail, and multi-family properties, either directly or through A participation in joint ventures. Our research-driven investment strategy for core assets evaluates the merits of any proposed acquisition and is summarized below by property type. 153 Townsend San Francisco, CA Office Strategy Best-in-class office properties CBD and urban districts Transit-oriented properties Strong industry demand drivers Production Ave. Inland Empire, CA Industrial Strategy Class A bulk distribution and light manufacturing Port and supply-constrained locations Newer or functional older properties Retail Strategy Multi-Family Strategy Admiral Safeway Seattle, WA Needs-based neighborhood and community centers Market-leading grocer anchor with strong occupancy High-income infill demographics 111 Kent New York, NY Stronger housing markets High-income demographics Modern design Transit-oriented locations Near employment and retail centers American also pursues core-plus and value-added investment opportunities in the above property types that include the following strategies: Renovation, re-tenanting, repositioning, lease-up opportunities, distressed debt/ownership, poorly-managed assets, re-capitalization, significant near-term lease rollover, market recovery, and development. Please Note: Photos used in this brochure were selected based on visual appearance and are used for illustrative purposes only. American Realty Advisors Investment Strategies and Criteria Page 2

3 Joint Venture Investment Program merican Realty Advisors is actively seeking to establish joint venture and/or lending relationships with d real estate A operators to acquire or recapitalize real estate investments throughout the United States. American has client capital available for workouts, restructures, partnership buy-outs/resolutions, debt purchases, and property acquisitions. Joint Venture Investment Parameters Investment Structures Investment Size Gross Deal Size (Per asset) Senior Leverage Investment Terms Yield Parameters Asset Types Investment Uses Joint ventures, preferred equity, mezzanine debt $7.5 to $50 million $20 to $150 million 50% to 65% (will consider higher leverage in certain situations) 3 to 5 years; with longer terms up to 10 years considered in select circumstances 10% to 18% internal rate of return, depending on leverage/risk. Pay rates (debt) and preferred returns (joint venture equity) range from 8% to 10% Existing income-producing assets; transitional institutional-quality projects of the following commercial real estate types: office, industrial, retail (preference for neighborhood centers anchored by grocery/drug stores), mixed-use, and multi-family Acquisitions, repositionings, workouts, recapitalizations, lease-ups, partnership buy-outs and restructures Recent Joint Venture Real Estate Transactions Multi-Family Property Acquisition Industrial Redevelopment Project Portofino at Las Colinas Dallas, TX 224-unit four-story amenity-rich apartment complex Ideally situated in highly-desirable North Dallas submarket of Las Colinas Convenient access to the I-635, I-35, SH-161 and the new Las Colinas Urban Center Light Rail Station Cherry Logistics Center Newark, CA Construction of a speculative 575,000 SF, state-of-the-art cross dock distribution facility Located in the supply-constrained East Bay industrial market of Northern California LEED-certified Multi-Family Property Acquisition Industrial Property Acquisition 1401 State Street Chicago, IL 278-unit Class A high-rise apartment building Located in the heart of Chicago s dynamic South Loop Amenity-rich urban high-rise building requiring common area and interior unit upgrades Southern California Industrial Portfolio Los Angeles, CA Two 100% leased quality industrial buildings Victoria Industrial: 101, 724 SF singletenant building conveniently located near the SR-91, I-710, I-405, and I-110 freeways Bonelli Street: 133,237 SF single-tenant industrial building with foot truck court, 22 foot clear heights, rail access and 6,760 SF of office space Please Note: Photos used in this brochure were selected based on visual appearance and are used for illustrative purposes only. American Realty Advisors Investment Strategies and Criteria Page 3

4 Mezzanine and Preferred Equity Program merican Realty Advisors offers a full range of structured finance and mezzanine strategies focusing on core, enhanced core, and A value-added income- producing commercial real estate located throughout the United States. Bridge Loan/Short-Term Investment Parameters Size $15 to $50 million Maximum Loan-to-Value Up to 85% Maximum Project Capitalization Minimum Current Yield All-in Yield Interest Rate Structure Term Lock out From Prepayment Product Types $150 million Not required 8% to 15% based upon investment risks Current pay, current pay with accrual, all accrual, or current pay with contingent interest tied to profitability 3 to 5 years; generally co-terminus with senior loan Generally 3 years; shorter terms will require make-whole provisions or prepayment fees Office: Multi-tenant facilities preferred (with appropriate capital to multi-tenant if required), minimum of 50%+ occupancy, except situations such as limited inventory of large blocks in a market with proven large-block demand, etc. Industrial: Functional with vacancy-sized appropriate for market, older in-fill is acceptable if improvements are functional to typical users in the market Retail: Grocery-anchored centers, neighborhood retail/community centers with minimal vacancy or vacant junior anchor but generally avoid (i) non-anchored retail unless an anchor tenant is secured and (ii) co-tenancy challenged unless a realistic and specific business plan is in-place Multi-Family: Garden or urban with minimum 100-units that are in need of rehabilitation and/or improved management (generally no for-sale projects) Occupancy-challenged or near-term lease expiration acceptable as outlined above Additional Information Deferred maintenance is acceptable but must be understood and quantified Development will be considered on a limited basis will consider best-in-class development with strong sponsorship and/or significant pre-leasing Stabilized/Long-Term Investment Parameters Size $15 to $100 million Maximum Loan-to-Value Up to 90% Maximum Project Capitalization Minimum Current Yield 4.5% All-in Yield Interest Rate Structure Term $400 million 6.5% to 12% based upon investment risks and capital stack position Current pay, current pay with accrual, or current pay with contingent interest tied to profitability 7 to 10 years; generally co-terminus with senior loan Lock out From Prepayment Product Types Generally 6 years; shorter terms will require make-whole provisions or prepayment fees Institutional quality, Class A office, industrial, retail, and multi-family properties American Realty Advisors Investment Strategies and Criteria Page 4

5 American s Preferred Metropolitan Investment Markets: Contact Information Kirk Helgeson Executive Vice President/ Executive Managing Director Daniel Robinson Managing Director, Finance/Investment Consulting Jeff Miller Director, National Capital Markets Ray Kivett Managing Director, Investments Over 25 years Over 30 years Over 32 years Over 29 years khelgeson@americanreal.com drobinson@americanreal.com jmiller@americanreal.com rkivett@americanreal.com Primary Markets: Illinois, Minnesota, and Texas Drew Hess Gary Steinhardt Eric Cannon, CFA Scott Anderson Senior Investment Officer Senior Investment Officer Investment Officer Associate Investment Officer Over 18 years Over 16 years Over 12 years Over 11 years dhess@americanreal.com gsteinhardt@americanreal.com ecannon@americanreal.com sanderson@americanreal.com Primary Markets: N. California, Colorado, Oregon, and Washington Primary Markets: Arizona and S. California Primary Markets: Connecticut, New Jersey, New York, Pennsylvania, and Washington, D.C. Primary Markets: Georgia, S. Florida, Massachusetts, and N. Carolina Corporate Headquarters 801 North Brand Boulevard, Suite 800 Glendale, CA