EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a...

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EB-5 INVESTMENT OPPORTUNITY The Princeton Apartments Princeton, Texas

Transcript of EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a...

Page 1: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

EB-5 INVESTMENT OPPORTUNITY

The Princeton Apartments Princeton, Texas

Page 2: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

DISCLAIMER

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This presentation is for informational purposes only; this is not an offer to sell or a solicitation of an offer to purchase or sell any securities. This presentation summarizes certain parts of the information regarding investments in The PPA Group, LLC - (Sponsor) and A List Partners Regional Center (ALPRC)-(Regional Center).

The information on this presentation may be amended from time to time. Visual images are for representation only. The forward-looking statements are subject to numerous assumptions, risks and uncertainties. These statements are based on management’s current expectations and actual results may differ from these forward-looking statements due to numerous factors, including risks related to our ability to raise additional capital, liquidity, revenue growth, operating results, industry, technology, and products.

The information contained herein is confidential, and may not be reproduced or distributed to any other party without the express written consent of developer and affiliates. The offering is made solely to non –U.S. persons who are qualified investors as described in the offering circular.

The information contained in these documents is confidential, privileged and only for the information of the intended recipient and may not be used, published or redistributed without the prior written consent of PPA Group, LLC and A List Partners Regional Center.

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TABLE OF CONTENTS

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1. EXECUTIVE SUMMARY

2. MARKET OPPORTUNITY

3. PROJECT SUMMARY

4. PPA GROUP OVERVIEW

5. INVESTMENT STRATEGY

6. INVESTMENT STRUCTURE

7. INVESTMENT THESIS

8. EB-5 FUNDING STRUCTURE

9. EB-5 INVESTMENT & NEXUS OF JOB CREATION

10. EB-5 TEAM

11. FINANCIALS

12. EXIT STRATEGY

13. CONTACT INFORMATION

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1. EXECUTIVE SUMMARY

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• The Partnered Property Acquisitions Group (PPA Group) is a privately held, commercial real estate investment and development company headquartered in Austin, Texas.

• PPA specializes in the acquisition and development of commercial and multi-family residential; owns and manages over 4000 multi-family units in Texas.

• The PPA Group, LLC is offering an EB5 investment opportunity for the development and construction of a 306 unit high-end residential apartment project in Princeton, Texas while creating jobs and generating profit for the owners and investors.

………………………………………………………………………………………………………………………………

• The Regional Center for the project is A List Partners Regional Center (ALPRC).

• The total Project cost is estimated to be $43.25 million. The Regional Center plans to raise up to $11 million from 22 EB-5 Investors.

• The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs provide a job creation cushion of 48.4% (or of 4.8 jobs per investor) for the minimum job creation requirement of 220 jobs for the 22 EB-5 investors.

• The Project is projected to achieve total revenues of approximately $4.3 million in the third year of operations, which is expected to be 2022, with resulting net cash flow after debt service of $2.6 million.

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1. EXECUTIVE SUMMARY

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2. MARKET OPPORTUNITY

6https://businessintexas.com/why-texas

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SUB-MARKET OVERVIEW

Colin County- McKinney Market Area

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EMPLOYMENT GROWTH

POPULATION GROWTH

HIGHY DESIRABLE LOCATION

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3. PROJECT SUMMARY

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The Project is located at the southwest corner of W. Princeton Dr., and Ticky Dr., Princeton, TX 75407.

The site is located on U.S. Highway 380, also known as University Blvd. is located in the northern Dallas suburbs

near Frisco, McKinney and Plano.

LOCATION

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Visual images are for representation only

ANTICIPATED UNIT

FEATURES

• Granite Countertops

• Stainless Steel Appliances o Refrigerators

o Stoves

o Ovens

o Dishwashers

• Disposals

• Washer and Dryer

Connections • Pantry

• Patios/Balconies

• Brushed Nickel Hardware

• Premium lighting packages

ANTICIPATED COMMUNITY

FEATURES

• Swimming Pool

• Outdoor Kitchen

• Beautiful Landscaped

Courtyards • Playground

• Dog Park

FEATURES

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Visual images are for representation only

SAMPLE RENDERING

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4. PPA GROUP OVERVIEW

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• The Partnered Property Acquisitions Group (PPA Group) is a privately held, commercial real estate

investment and development company headquartered in Austin, Texas.

• PPA specializes in the acquisition and development of commercial and multi-family residential; owns and

manages over 4000 multi-family units in Texas.

• We leverage our knowledge through the sourcing, due diligence, execution, and exit process to maximize

operating cash flow and unlock potential value for our investors.

• Extensive financial statement and property audits are conducted by our in-house analysts and by third party

experts prior to acquisition of all our assets.

• Our equity partners receive in-depth reports on the findings of our analysis, thereby receiving all of the

information needed to make educated investment decisions.

• We acquire and develop low to medium risk properties with the right combination of price, location, quality,

growth and rental potential to give our investors the flexibility to meet their specific financial needs.

MISSION : To acquire quality properties providing secure and sustainable returns for our equity partners

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PPA GROUP PORTFOLIO

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Leveraging Our Resources And Experience

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-Since 2002, Monte has

conducted over $600 million in

transactions, acquiring,

managing and repositioning

commercial property across

the United States.

-Monte is a seasoned

entrepreneur having started

and run several companies

since the mid-1990s.

-In 2008, Monte found CLEAR

Property Management to serve

as property management for

PPA Group to conduct third-

party fee management

business.

Monte K. Lee-Wen

President and

Chief Executive Officer

https://www.linkedin.co

m/in/montelw/

-As Chief Financial Officer,

Nalie Lee-Wen heads The

PPA Group’s internal

Department of Finance and

Commercial Specialists.

-Nalie has worked directly on

the successful financing and

closure of over $200 million in

real estate transactions.

-She brings a high level of

expertise in solving title

issues, working with state and

local governments, surveyors,

vendors, lenders, and legal

professionals.

Nalie Lee-Wen

Chief Financial Officer

https://www.linkedin.co

m/in/nalie-lee-wen-

38113369/

MANAGEMENT

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Leveraging Our Resources And Experience

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-Former investment banker

with Banc of America

Securities where he executed

over $3.4 billion in equity and

debt financings for the firm’s

clients.

-John is responsible for

sourcing and managing new

investment opportunities for

the company. He focuses on

both acquisitions and new

development opportunities.

-He holds a B.S. in Civil

Engineering and an MBA from

the University of Texas at

Austin.

-With over 20 years of

multifamily experience, Laura

brings expertise in asset and

revenue management in both

new development and

acquisitions.

-Prior to joining The PPA

Group, Laura worked with

several real estate

development/acquisition

companies such as CWS

Apartment Homes, JPI, and

Trammell Crow Residential.

Laura Klein

Vice President of

Asset Management

and Operations

https://www.linkedin.co

m/in/laura-klein-

1109034a/

John A. Latham

Chief Investment Officer

https://www.linkedin.co

m/in/johnlatham3/

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5. INVESTMENT STRATEGY

• National Market Research

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• PPA Group uses proprietary sourcing techniques and financial modeling techniques to assist in the

identification of multifamily investments in selected markets.

• We use stringent methodology of underwriting and identifying target markets as well as individual

properties allowing them to achieve favorable risk‐adjusted returns for their Investors.

• Submarket demand and growth characteristics

• Metro Health and Growth

• Population growth, Job demand and other growth Factors

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6. INVESTMENT STRUCTURE

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ACQUISITION

ENTITY

PROPOSED

EQUITY

STRUCTURE

FINANCING DISCLOSURE

OF FEES

A new Limited

Partnership will be

formed to hold the

property, with an

operating agreement

between all parties.

A List Partners EB5

Princeton, LLC, the NCE

will receive a 6%

Preferred Return on

their capital from the

Princeton Apartments

LP, the JCE

The property will be

financed by originating a

new loan in the form of a

1st lien note in the amount

of approximately

$30,250,000, for 5 years.

The loan(s) is expected to

bear interest on a floating

basis, at approximately

5.5% with a 30 year

amortization, after a

48month I/O period.

Approximate LTC: 70%.

1. Development and Construction Fee

Sponsor shall receive a development fee for the development of

the project in the total amount of $1,115,000, to be paid over the

course of construction, and a Loan Guarantee fee of $285,000, to

be paid at closing.

2. Property Management Fees

CLEAR Property Management, LLC, an affiliated company, will

charge a 3.0% fee to manage the acquired property.

3. Asset Management

Sponsor will charge a 1% (of revenues) asset management fee to

manage the investment.

4. Asset Disposition Fee

Sponsor will receive an asset disposition fee of 1% of the sales

price of the property.

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7. INVESTMENT THESIS

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The site is located on

U.S. Highway 380

which is a main

thoroughfare connecting

Greenville, TX to

Denton, TX. Hwy. 380,

also known as

University Blvd. is

located in the northern

Dallas suburbs near

Frisco, McKinney and

Plano.

The property consists of

306 units of which 210

are one-bedroom units

and 96 are two

bedroom units. Of the

one bedroom units, 54

are efficiency units.

Overall the units

average approximately

800sf.

There are no direct

competitors in Princeton

with similar modern

amenities.

EXCELLENT LOCATION OPTIMAL SIZE AND UNIT

MIX

SUBMARKET WITH

STRING BARRIER

TO ENTERY

POSITIVE

REGULATORY

ENVIRONMENT

The City of Princeton

has a growth oriented

mindset and is anxious

to see a new property

developed here. It has

already granted us a

grading permit and has

agreed to a property tax

abatement for 10 years

in which the property

only has to pay 50% of

the city property taxes

during that time.

Page 19: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

8. EB-5 FUNDING STRUCTURE

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Page 20: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

9. EB-5 INVESTMENT & NEXUS OF JOB CREATION

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Investment

• EB-5 Investment

• All other sources

Use of Funds

• Finance construction, development, and the launch of operations

Verifiable Detail

• Completion of acquisitions and construction activity

• Commence operations

• Job Creation determined using RIMS II

Result

• Operating Project

• Creation of jobs from construction and operations

• Job Creation

Requirements: 220 for

22 EB-5 investors.

• The Project is

estimated to create a

total of 326.6 new EB-5

eligible jobs

• Job creation cushion of

48.4% (or 4.8 jobs per

investor)

Page 21: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

10. EB-5 TEAM

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Azarmehr Law Group Geraci Law Firm Impact DataSource Del Toro Loan Servicing Inc.

Immigration Legal

Counsel

Real Estate Attorney &

Corporate Legal CounselEcon Report &

Business Plan

Escrow

Page 22: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

11. FINANCIALS

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Sources and Uses

$ represents US Dollar

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Proforma at Stabilization

$ represents US Dollar

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Proforma 5 Year P&L

All number represents US Dollar

Page 25: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

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Proforma 5 Year Cashflow

All number represents US Dollar

Page 26: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

12. EXIT STRATEGY

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$ 43.2M

Development

Cost

$ 51M

Sale Price

$7.8M

THE PRINCETON APARTMENTS: EXIT STARTEGY

[306 High End Multifamily units] In The Highly Desirable Colin County Market area of McKinney

$ represents US Dollar

Est. Net Profit

Page 27: EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a total of 326.6 new EB-5 eligible jobs based on the economic projections. These jobs

13. CONTACT INFORMATION

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For More Information, Please Contact

Fojael (Roger) Choudhury

Director, Business Development

A List Partners Regional Center

7801 North Lamar Blvd Suite D-90 / Austin, TX 78752

Office 512-827-3528 | Fax 512-717-6757

https://alistpartnerseb5.com/