2018 COVER PAGE FOCUS BROCHURE · 'ryh 6wuhhw 6xlwh 1hzsruw %hdfk &doliruqld ::: )2&865(/3 &20...

$: 2018 COVER PAGE FOCUS BROCHURE · 'ryh 6wuhhw 6xlwh 1hzsruw %hdfk &doliruqld ::: )2&865(/3 &20 5,&+$5' 0 257:(,1 3duwqhu $ vhdvrqhg yhwhudq ri wkh uhdo hvwdwh lqgxvwu\ 5lfkdug 'lfn$
1601 Dove Street, Suite 183 Newport Beach, California 92660 (714) 975-7660 WWW.FOCUSRELP.COM

FOCUS REAL ESTATE LP, founded in 2000, is headed by longtime real estate executive Richard Ortwein, former president of Koll Development Company, and his partners, Michael Ortwein and Jack Kappe. The company’s primary focus is working with owners, investors and users to identify, acquire and oversee all aspects of value-added investment and development.

INVESTMENT GUIDELINES

The Company’s current focus is to:

Acquire value-added office and industrial opportunities in Southern California on a fee-simple basis between $2MM and $25MM, with a targeted range of $5MM to $15MM. Focus believes there is significant inefficiency in this product as it sits below the institutional radar and is too large or complex for an individual investor.

Acquire notes and/or REO directly from banks on office and industrial properties between $1MM and $25MM, with a targeted range between $3MM and $10MM, where the underlying collateral is in Northern, Central or Southern California. Focus would also target portfolios of notes from banks. Focus believes that many regional banks with larger exposure to commercial real estate and insufficient in-house work-out teams will be forced to sell a large volume of such notes in the next 36 months.

Build-to-suit and speculative development of industrial and office product, with a preferred land acquisition price up to $15MM and a total project cost up to $35MM.

Focus Real Estate’s principals are uniquely qualified in this area, having acquired and/or developed fee-simple and/or notes of over $2.0B of product over the last 35+ years. Please see the attached projects and portfolio.

INVESTMENT SERVICES

Distinctly qualified to service the ever-changing needs of owners and tenants, Focus Real Estate was launched to provide its clients not only with talented management advice, but also with the benefit of more than 70 years of combined industry experience covering all aspects of commercial real estate.

Given this depth of knowledge and experience, Focus Real Estate’s management team is well positioned to help clients acquire and reposition fee-simple properties, acquire and entitle land for construction, arrange debt and equity financing, and oversee construction, leasing and disposition activities in all phases of the investment and development process. As a result of its extensive contacts, Focus Real Estate has maintained long-term relationships with numerous reputable firms within the commercial real estate industry.


RICHARD M. ORTWEIN Partner

A seasoned veteran of the real estate industry, Richard "Dick" Ortwein has overseen all aspects of the business, having directed and managed the development and construction of millions of square feet of commercial real estate during his extensive career.

Dick brings to Focus Real Estate more than 40 years of management experience, most in senior level posts with the Koll organization, one of the premier commercial real estate developers in the country. Additionally, Dick offers a rarity in real estate circles: a banker's financial acumen with a developer's hands-on experience.

While at Koll, Dick oversaw the accounts of local, national and international clients, exposing him to a vast array of regional issues and

placing him on the cutting edge in detecting new construction and development trends in both the commercial and residential sectors. In his senior management capacity at Koll, Dick was responsible for commercial development, land entitlement, project finance, construction management, asset management and corporate services. Additionally, Dick was a key member of the executive team responsible for overseeing acquisitions and mergers, including the 1998 purchase of Koll Real Estate Group's commercial development arm, Koll Development Company.

Prior to joining Koll, Dick served at Wells Fargo Bank where he was responsible for the financing of commercial development product. Capping a 10-year tenure in the banking industry, Dick steadily rose through the management ranks of Security Pacific Bank and Wells Fargo.

A graduate of the United States Naval Academy, Dick has been affiliated with many professional and civic organizations including the Orange County Business Council and the Urban Land Institute. He has served on both the national and local boards of directors of the National Association of Industrial and Office Properties (NAIOP), is a past Chairman of the Orange County Chapter of the American Red Cross and the Young Presidents Organization, and served on the board of the directors of The Pacific Club in Newport Beach. Recently ending his term as Chairman of the Board at Hoag Memorial Hospital Presbyterian in Newport Beach, Dick was a member of several board committees, and served as chairman of the Facilities, Design and Construction Committee overseeing a $500 million capital improvements budget. He recently served as board member of A & A Ready Mixed Concrete, Inc., and H.G. Fenton Company, a regional commercial real estate developer in San Diego. Dick enjoys sharing his knowledge and experience as an adjunct professor in the Master of Real Estate Development program at the University of Southern California’s Price School of Public Policy.


MICHAEL R. ORTWEIN Partner

Michael Ortwein has over 20 years of experience in commercial real estate investment, development, asset management and advisory services. Michael serves as Focus Real Estate’s primary operational manager handling all aspects of the investment and development process including acquisition, analysis, entitlement, and project management.

Prior to Focus, Michael served as a development manager for Koll Development Company where he participated in the completion of nearly one million square feet of industrial, office and retail development projects. He then held the position of development analyst in Koll’s China office where he worked on a $300 million regional shopping center in Shanghai, and a 400-acre industrial logistics project in Koll’s Kuala Lumpur office in Malaysia.

Michael previously served as a manager for The McMahan Group, a strategic real estate advisory firm in San Francisco, California, where he was responsible for entity level due diligence and investment of nearly $1.0 billion of institutional capital. Michael began his real estate career in the San Francisco office of Ernst & Young Kenneth Leventhal. While at EYKL, Michael provided client support to commercial and investment banks, commercial and residential developers, governmental entities, institutional investors and private investment companies. Engagements included valuation and market analysis for large portfolios and individual properties including office, industrial, retail and hospitality product, as well as land and self-storage facilities. Michael earned an MBA from the University of Southern California’s Marshall School of Business and received his Bachelor of Science degree in finance and real estate from the University of Colorado, Boulder. Michael served as a committee member of the National Association of Industrial and Office Properties (NAIOP), and as a guest lecturer on proforma development at the University of Southern California’s Master of Real Estate graduate program.

222 12th Street Manhattan Beach, California 90266 (310) 734-4457 WWW.FOCUSRELP.COM

JACK KAPPE Partner

Jack Kappe has over 18 years of experience in a variety of commercial real estate and strategic advisory roles, including the acquisition and asset management of over $2.0 billion in multi-family, office, industrial, and retail properties.

Most recently, Jack was Senior Director with Alvarez & Marsal Capital Real Estate, a principal-side subsidiary of the international bankruptcy, work out and advisory firm, Alvarez & Marsal. Jack was responsible for acquiring distressed debt opportunities in the multi-family, land, hospitality, office and industrial sectors. On an advisory basis, he also led the day-to-day engagement to restructure and sell a multi-family development company with over 27,000 units in 270 properties nationwide on behalf

of Money-Center Bank.

Prior to joining A&M CapRE, Jack was Director of Acquisitions for the Managed Accounts Group at CBRE Investors (a $40 billion real estate owner/advisor) for the western United States. He worked with multiple institutional investors at CBREI including pension funds, sovereign wealth funds and a private REIT to acquire over $800 million in targeted investments in multi-family, office and industrial product. He was responsible for: sourcing both direct and joint-venture opportunities, negotiating purchase & sale, loan and joint-venture agreements, and managing the due diligence and closing processes.

Jack previously served as Vice President of Asset Management and Vice President of Acquisitions at Buchanan Street Partners, a $2 billion real estate opportunity fund based in Newport Beach, California. In his asset management role at Buchanan, Jack was responsible for over 40 commercial real estate assets totaling over $800 million. In his acquisitions role, Jack sourced and closed investments and joint venture relationships totaling over $300 million. Prior to Buchanan, Jack was the Chief Financial Officer for Pacifica Capital Group, a commercial real estate owner/operator/developer in Los Angeles, California, with a two million square foot portfolio of office, industrial and residential properties. As CFO, Jack was responsible for the improvement and oversight of the accounting and investor reporting functions and played a key role in the refinance of portfolio investments as well as the firm’s asset management, acquisition and disposition-related activities.

Jack’s experience also includes consulting and advisory roles with the Boston Consulting Group in New York, New York where he advised clients on a wide range of strategic and financial issues, and with Coopers & Lybrand in Los Angeles, where he focused on valuing real estate and operating companies.

Jack holds an MBA from the Wharton School of Business and a Bachelor of Arts degree from UCLA in Business and Economics. He is a member of the Wharton Club of Southern California, the National Association of Office and Industrial Properties, the Urban Land Institute, and the International Council of Shopping Centers.

Focus Real Estate Background and Track Record

Focus Real Estate was formed in 2000 and is headed by longtime real estate executive Richard “Dick” Ortwein, former President of Newport Beach-based Koll Development Company, and his partners, Michael Ortwein and Jack Kappe. Below is a partial list of Focus projects that are relevant.

Project Name Type Strategy Net Sale or Acq Price

Acq Date

Sale Date

Description

Focus Vista Industrial Park Vista, CA

Industrial Ground up

Development $7,199,000 2001 2004

Development of 8 industrial buildings sold to individual users and investors. Project completed ahead of schedule and under budget. All buildings pre-sold prior to completion.

501 W. Broadway San Diego, CA

Office Asset

Management $92,624,000 2002 2004

373,000 SF Class A Office in Downtown San Diego. On behalf of ownership oversaw partial lease-up, tenant build-out, management, and disposition of property to GE Real Estate.

San Juan Vistas San Juan Capistrano, CA

Office Land

Entitlement $2,335,000 2002 2004

78,000 SF (8 Buildings on 6.7 Acres) - Small office buildings for sale. Processed entitlements through planning commission approval; investor flipped entitled lot to outside developer.

Azalea Business Park Vista, CA

Industrial Condo

Conversion $2,100,000 2003 2005

Condo conversion of a 7-unit multi-tenant office/industrial park. All units sold individually to small business users.

Focus Waterman Industrial Park San Bernardino, CA

Industrial Ground up

Development $7,493,000 2004 2006

Development of 7 industrial buildings sold to individual users and investors. Project completed ahead of schedule and under budget. All buildings pre-sold prior to completion.

Redlands Professional Center Redlands, CA

Medical Office

Development & Condo

Conversion $8,028,000 2005 2007

Conversion of two vacant tilt-up industrial buildings into a 14-unit multi-tenant medical office condo project. All units sold individually to small business users and investors.

Monterey Shore Business Park Palm Desert, CA

Office/ Industrial

Ground up Development

$14,300,000 2006 Active Development of a 5-building, 46-unit flexible office/industrial condominium business park. Project 90% sold to date to individual users and investors.

North Cook Business Park Palm Desert, CA

Office / Industrial

Land Entitlement

$1,574,000 2007 2011

Completed design and entitlement of 17-building office/industrial business park, including zone change and parcel map. Entitled property sold to investor permit-ready in 2010.

South Bay Corporate Center National City, CA

Office Value Add Reposition

$16,600,000 2011 2012

Reposition of a 100% vacant office building with significant deferred capital maintenance and out-of-date mechanical systems. Sold repositioned/refurbished building to Greenlaw Partners.

Wells Fargo Bank Branch Del Mar, CA

Office/ Retail

Value Add Reposition

$5,800,000 2011 2012 Tenant lease restructure and ground lease negotiated purchase. Sold to high net worth investor at 5% cap rate.

Wells Fargo Bank Branch Rancho Bernardo, CA

Office/ Retail


$6,075,000 2011 2012 Tenant lease restructure and ground lease negotiated purchase. Sold to high net worth investor at 5% cap rate.

Jensen Meat Co. Packaging Facility Vista, CA

Industrial Asset

Management $2,475,000 2013 2013

Cold storage industrial building with short-term lease and significant deferred maintenance. On behalf of a private trust, identified deferred maintenance solutions, re-leased building to credit tenant and then sold to investor.

2293 Cosmos Court Carlsbad, CA

Office/ Industrial


$5,640,000 2013 2015

47,000 SF industrial building with significant deferred maintenance. Purchased well below replacement cost from owner/user as a sale-leaseback for 2 years. Renovated and sold to exchange buyer after 18 month hold.

14611 Broadway Gardena, CA

Industrial Value Add Reposition

$7,500,000 2013 2014

Purchase of 40K sf industrial building on 196,000 SF of land. $6.0MM purchase with $1.5MM renovation to add external dock with 20 dock-high positions and pave back yard. Closed with Terreno (Public REIT) as partner, all cash.

SkyHub 235-239 Oregon Street El Segundo, CA

Creative Office


$7,900,000 2014 2017

Purchase of three 1950’s vintage industrial buildings in the Smoky Hollow neighborhood of El Segundo and converted to 3 state of the art creative office buildings; sold individually to 3 separate owner/users.

Southrail Industrial Park Chula Vista, CA


$18,000,000 2014 2017 Purchase of a 128,000 SF multi-tenant industrial park in Chula Vista, CA. Minor upgrades to the mid-1980’s buildings, marking rents to market.

Copperwood Center Oceanside, CA

Industrial/Retail


$13,670,000 2015 Active Purchase of a 125,000 SF multi-tenant industrial park in Oceanside, CA. $1.25MM cap-ex upgrades to the early-1980’s buildings, marking rents to market, reducing expenses.

Rancho Santa Fe Business Center San Marcos, CA

Office/ Industrial


$8,250,000 2016 2017 Purchase of a 42,000 SF multi-tenant industrial park in San Marcos, CA. 78% leased at the time of purchase.

17110 Main Street Carson, CA

Office/ Industrial

Ground up Development

$39,800,000 2015 2016

Development Manager for ground up development of a 210,000 SF warehouse in Carson, CA and repositioning of a 34,000 SF office with 2 acres of excess yard for trailer storage. Fully leased to FedEx Ground (75%) and Chinese Shipping Company (25%) at completion in 9/16.

Arrow Business Park Rancho Cucamonga, CA

Office/ Industrial


$17,050,000 2016 Active

Purchase of a 137,000 SF multi-tenant industrial park in Rancho Cucamonga, CA. ~80% leased at the time of purchase. Lease up + mark rents to market + expense reduction.

Wilmington Industrial Park Wilmington, CA


$5,800,000 2017 Active

Purchase of a 32,500 SF multi-tenant industrial park in Wilmington (Los Angeles), CA. 100% leased at the time of purchase. Lease up + mark rents to market + expense reduction.

Palomar Industrial Park San Marcos, CA


$8,000,000 2018 Active

Purchase of a 52,000 SF multi-tenant industrial park in San Marcos, CA. ~98% leased at the time of purchase with below with significant deferred maintenance. Improve property, lease up + mark rents to market + expense reduction.

Commercial Laundry Facility South Gate, CA

Industrial Tenant

Improvement $6,000,000 2018 Active

Development Manager for 70,000 SF state-of-art commercial laundry processing facility in South Gate, CA.

1601 Dove Street, Suite 183, Newport Beach, CA 92660 (714) 975-7660 WWW.FOCUSRELP.COM

CURRENT PROJECTS

PALOMAR INDUSTRIAL PARK San Marcos, California

Purchase of a 52,250 square foot multi-tenant industrial park. 100% leased at time of purchase. Upgrade property, increase rents to market and reduce expenses.

WILMINGTON INDUSTRIAL PARK Wilmington (Los Angeles), California

Purchase of a 137,000 square foot multi-tenant industrial park. 100% leased at time of purchase. Upgrade property, increase rents to market and reduce expenses.

COPPERWOOD CENTER Oceanside, California

Acquisition of a value-add project consisting of five industrial buildings and three retail buildings totaling 126,630 square feet. Focus is renovating the project to market the buildings for sale.

ARROW BUSINESS PARK Rancho Cucamonga, California

Acquisition of a value-add multi-tenant industrial/flex business park totaling 136,806 square feet. Focus will upgrade the project, bring rents to market rates, and divide each building into its own parcel for future disposition.


RECENT PROJECTS

FEDEX REGIONAL LOGISTICS FACILITY Carson, California

Ground up development in partnership with Terreno Realty Corporation of a 210,000 square foot distribution warehouse occupied by FedEx Trade Networks as a regional logistics facility.

RANCHO SANTA FE BUSINESS PARK San Marcos, California

Acquisition of a value add multi-tenant industrial/flex business park consisting of 15 units in three buildings totaling 42,045 square feet. Focus renovated the project and sold to a private investor 2017.

MONTEREY SHORE BUSINESS PARK Palm Desert, California

Development of 4 free-standing concrete tilt up buildings consisting of 36 for-sale industrial condominiums ranging from 946-4,582 square feet (total of 68,262 square feet). 30% office build out, 16’ clear height, grade level loading.

SMOKY HOLLOW CENTRE El Segundo, California

Acquisition of a three industrial buildings for creative office conversion, each building approximately 6,000 square feet. Focus completed a renovation program of the buildings and entitled for individual sale. Finalized disposition of buildings in 2017.


RECENT PROJECTS

SOUTHRAIL BUSINESS PARK Chula Vista, California

Acquisition of a value-add 8-building, 128,294 square foot industrial complex. Focus is renovating the buildings to market for individual sale. Completed disposition of project in 2017.

2293 COSMOS COURT Carlsbad, California

Acquisition of a value-add, single-tenant 47,762 square foot industrial building. Focus completed a renovation program and immediately sold the building to a private investor in 2015.

SOUTH BAY CORPORATE CENTER National City, California

Focus renovated a managed asset, 200,000 square foot, 3-story Class B office building originally built in 1983. Purchased by the investor in 2010 and sold by Focus in 2012.

IN-SHAPE PLAZA Stockton, California

Asset management and renovation of a 90,000 square foot Class B 7-story office building. Built in 1974 and upgraded in 2011, Focus sold for investor in 2013.


WELLS FARGO BANK BRANCH Del Mar, California

Managed asset of a 5,107 square foot freestanding branch building. Built in 1975, renovated in 2009. Focus completed disposition of asset in 2012.

WELLS FARGO BANK BRANCH Rancho Bernardo, California

Asset management of a 6,021 square foot freestanding branch building. Built in 1978, renovated in 1990. Focus completed disposition of asset in 2012.

REDLANDS PROFESSIONAL CENTER Redlands, California

Development of a 2-building office condominium complex consisting of 14 for-sale units from 2,581 to 3,586 square feet (41,706 square feet total). Concrete tilt-up, 100% improved.


WATERMAN PLACE San Bernardino, California

FOCUS INDUSTRIAL CENTER Vista, California

Development of seven free-standing industrial buildings ranging from 9,363 to 14,450 square feet, 75,364 square feet total. Concrete tilt-up construction, 8% office built out, 18’ clear height with grade level loading and fenced yards.

Development of eight free-standing industrial buildings ranging from 5,000 to 12,000 square feet, 75,985 square feet total. Concrete tilt-up construction with 10% office build out, 18’ clear height and dock and grade level loading.


HISTORICAL PROJECTS

WEST CORONA INDUSTRIAL PARK Corona, California

RANCHO OAKS Rancho Cucamonga, California

DISCOVERY GATEWAY Santa Clarita, California

CHULA VISTA CORPORATE CENTER Chula Vista, California

KATELLA CORPORATE CENTER Los Alamitos, California

PARKWAY COMMERCE CENTER Poway, California

$13.4 million joint venture sale Industrial development project




$17.2 million joint venture sale 80,600 square foot stabilized office building

$24.4 million joint venture sale Office/flex industrial condominium development project


HISTORICAL PROJECTS 800 SOUTH BARRANCA Covina, California

OCEAN PARK Santa Monica, California

MISSION FALLS Fremont, California

THE DISGUISE BUILDING Poway, California

$20.4 million joint venture acquisition 89,513 square foot office building

$12.0 million joint venture acquisition Stabilized 44,366 square foot office building

$19.5 million joint venture acquisition 145,000 s.f. office/flex/R&D building

$27.7 million joint venture sale Single-tenant warehouse building


DEVELOPMENT EXPERIENCE

Koll Center Irvine Irvine, California Architect: A.C. Martin Partners

Koll Center Orange Orange, California Architect: A.C. Martin

Arthur Andersen Bldg Irvine, California Architect: Gensler, Inc.

Koll Center Irvine Irvine, California Architect: A.C. Martin Partners

Irvine Concourse Irvine, California Architect: Langdon Wilson

Taco Bell Building Irvine, California Architect: Langdon Wilson

Arrow Center Hill Rancho Cucamonga, California Architect: Hill Pinckert

Irvine Spectrum Technology Irvine, California Architect: LPA Inc.

Carlsbad Tech Center Carlsbad, California Architect: Ware Malcomb



Irvine Spectrum Technology Irvine, California Architect: LPA Inc.

Fontana Gateway Fontana, California Architect: DeRevere & Associates

Anaheim Tech Center Anaheim, California Architect: Ware Malcomb

Hughes Aircraft Corp HQ Los Angeles, California Architect: Skidmore Owings Merrill

11111 Sunset Hills Reston, Virginia Architect: URS Greiner

1055 East Colorado Blvd Pasadena, California Architect: Langdon Wilson

Haven Business Center Ontario, California Architect: Ware Malcomb

Sutton Place Hotel Newport Beach, California Architect: Gin Wong Assoc.

Frito Lay Rancho Cucamonga, California Architect: Hill Pinckert Architects



Koll Dublin Corporate Center Dublin, California Architect: Hoover Associates

Dulles Park Tech Center Herndon, Virginia Architect: URS Greiner

The Freeway Buildings Irvine, California Architect: LPA Inc.

Irvine Concourse Irvine, California Architect: Langdon Wilson

Koll Center San Diego San Diego, California Architect: Langdon Wilson

550 Hope Street Los Angeles, California Architect: Langdon Wilson

2018 COVER PAGE FOCUS BROCHURE · 'ryh 6wuhhw 6xlwh 1hzsruw %hdfk &doliruqld ::: )2&865(/3 &20...

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Transcript of 2018 COVER PAGE FOCUS BROCHURE · 'ryh 6wuhhw 6xlwh 1hzsruw %hdfk &doliruqld ::: )2&865(/3 &20...