EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a...
Transcript of EB-5 INVESTMENT OPPORTUNITY · from 22 EB-5 Investors. •The Project is estimated to create a...
EB-5 INVESTMENT OPPORTUNITY
The Princeton Apartments Princeton, Texas
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.
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
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.
1. EXECUTIVE SUMMARY
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2. MARKET OPPORTUNITY
6https://businessintexas.com/why-texas
SUB-MARKET OVERVIEW
Colin County- McKinney Market Area
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EMPLOYMENT GROWTH
POPULATION GROWTH
HIGHY DESIRABLE LOCATION
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
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
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
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/
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
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.
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.
8. EB-5 FUNDING STRUCTURE
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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)
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
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
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Proforma 5 Year Cashflow
All number represents US Dollar
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
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/