OpenPath Corporate Overviewopenpathinvestments.com/wp-content/uploads/2016/09/... · SLC, UT 172...

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Total Return Income Yield

Barclays AggregateBond Index

S&P 500Open PathSources: Standard & Poor’s, Barclays Capital

Comparative Income Returns, 2005-2015

Income Yield as an

8% preferred re

turn

Income Yield in the

form of d

ividends

18%

15%

12%

9%

6%

3%

IMPACT INVESTING IN MULTI-FAMILY REAL ESTATE

OpenPath is leading a movement to transform apartment complexes into thriving, healthy communities, by making positive social and environmental impact just as important as financial returns. Our current apartment complex investments are valued at more than $360 million, and we target 15-18% returns for our investors. We’re equally proud of the social and environmental returns our investments yield for our residents and their communities.

OpenPath, with its impact program UrbanVillageTM, invests in the social capital and economic outlook of our residents through communityengagement activities, leadership development opportunities, improved physical spaces, eco-responsibility initiatives and shared consumption platforms that reduce the cost of living.

KEY FACTS FOR IMPACT INVESTING

Private, Family Office, Self-Directed IRA’s & Institutional investors, with minimum $100,000 placement

Usually 3-5 years(up to 10)

Major & surrounding metro Western US

Depreciation helps offset taxable income on distributions: upon sale of assets, capital gains can be deferred via 1031 exchange into new investments

8% preferred annual return, plus 70% of capital gains (after return of original equity) up to 15% IRR; 60% thereafter

$10- $50M

1.5% of acquisition value, $250/ unit annual assetmanagement fee of apartments under management

Operations data updated quarterly in investor web portal

Investorprofile

Term

Geography

Tax advantage

Limited partnerreturn

Deal size

Fees

Reporting

1

18% +

8.00%

5.87%

1.92%

6.96%

4.44%

Ecological Stewardship

Leadership/Education

360 tons of waste diverted from landfills

Each resident has at least 24 opportunities each year to develop leadership skills and participate in educational and social events.

360 TONS

24x

Social Capital

$3 million in improved economic outlook and household income

$3 MILLION

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PERFORMANCE SINCE INCEPTION

OpenPath has been actively investing in multifamily acquisitions for more than a decade and has traded in and out of over 4100 apartment units, with a total transaction value exceeding $457 million.

OpenPath Investments

2

Richland, WA 250 2002 $14.5 M SOLD 2.25x 18%

SLC, UT 60 2006 $4.3 M SOLD 2.17x 50%+

SLC, UT 80 2007 $4.5 M SOLD 2.08x 50%+

SLC, UT 172 2008 $18.0 M cv 2.0x *18%

Provo, UT 115 2009 $10.0 M SOLD 2.15x 20%

Sandy, UT 104 2009 $8.0 M SOLD 1.75x 17%

Taylorsville, UT 80 2009 $13.0 M cv 1.48x *15%

SLC, UT 83 2008 $9.0 M cv 2.18x *18%

Phoenix, AZ 124 2011 $11.0 M SOLD 2.5x 33%

Lewisville, TX 348 2012 $22.0 M SOLD 1.66x 20%

Layton, UT 144 2013 $19.5 M cv 1.27x *18%

Plano, TX 548 2013 $90.0 M cv 1.67x *15%

Mesa, AZ 118 2014 $9.0 M cv 1.44x *15%

Mesa, AZ 269 2014 $27.2 M cv 1.44x *18%

Portland, OR 130 2014 $20.2 M cv 2.2x *19.4%

Portland, OR 135 2014 $21.5 M SOLD 1.86x 56%

Colorado Springs, CO 220 2015 $33.0 M cv 2.1x *16%

Phoenix, AZ 160 2015 $14.0 M cv 2.3x *20%

Las Vegas, NV 356 2015 $29.0 M cv 2.0x *18%

Jackson Hole, WY 115 2016 $24.0 M cv 1.86x *15%

Colorado Springs, CO 208 2016 $25.0 M cv 1.83x *15%

Dallas, TX 373 2016 $30.4 M cv 1.84x *15%

Total Units 4,192 $457.1 M SOLD Average IRR: 33%

Current Portfolio 2,976 $361.2 M Current value of portfolio

IRR (*Projected)

Market UnitsPurchase

DateSales Price or

Current Value (cv)Equity

Multiple

Long-Term VisionOpenPath has proven that a traditional asset class, particularly one that serves millions of people, can be the best venue for true impact investing. We’ve merged our expertise as real estate investment managers with our passion for the individuals and families who make our properties their home. Our strategy in the coming three years is to continue to generate above-market investment returns and measurablecommunity impact by investing another $100 million (with leveraged asset value of $400 million) that will scale our vision to several new multi-dwelling communities in major metro areas around the U.S.

Ideal Acquisition Profile


3

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• Metro areas with high desirability index (supply-constrained markets)

• Opportunity to improve physical environment and amenities

• Under-performing property, in terms of occupancy and rent levels

• Potential for a village-like community (>100 units)

• Residents interested in increased responsiveness from management

• Pent up demand from residents for more social and/or community offerings

Investor Feedback“My family trust has invested in 7 separate properties with OpenPath in 4 different markets. I’ve also introduced OpenPath to several additional investors, which is not something I would consider unless I had absolute faith and trust in OpenPath’s integrity and ability to perform. But the real story here is OpenPath’s forward-thinking community program called UrbanVillage! Not only is the Trust earning very favorable returns, but I get to feel really good about the social/environmental impact in which my capital is making.”

- George C., Trustee, C. Family Trust – Napa, CA


4

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Investment Team

Peter Slaugh, Managing Director

Peter Slaugh is the Founder and Managing Member of OpenPath Investments, formerly Su Casa Invest-ments, LLC. After his initial career in residential real estate starting back in 1991, Peter moved into commercial real estate in the capital markets arena with GMAC CM in 1997 funding in excess of $1billion in debt & equity products for his clients. Quickly, Peter recognized the value of investing in multifamily investments alongside his clients starting in 1999.

Peter formed Su Casa Investments in 2005 to acquire value-add apartment communities in the Western States. Peter has owned either as a GP or a limited partner over 4100 units (dating back to 1999) in various markets ranging from San Antonio, TX, Las Vegas, NV, Richland, WA, to Santa Rosa, CA, and now owns and operates a portfolio of assets in AZ, CO, NV, OR, TX, UT & WY comprised of over 3500 units and growing.

Recognizing the value in a “whole property stewardship” approach to the business, Peter evolved his platform to include “community building” and “greening” of resident lifestyles through the Urban Village program. The OpenPath platform is the latest evolution of this approach and really embraces the notion that “doing good” is also “good for business” and now measures success not only economically, but also socially & environmentally.(415) 454-8002 [email protected]

Gino Dante Borges, Ph.D., Partner & Director of Impact

Gino’s path has led him from a California dairy farm to earning a Ph. D. in Communications from Purdue University, from Nevada desert quests to family ranch stewardship. And now from old school real estate investing to impact investing.

Gino speaks and teaches about impact investing, multi-family real estate, community, wealth and steward-ship. He has given talks at the Impact Hub SF, executive MBA programs, art salons, and recently, TEDx University of Nevada.

When Gino is not impact investing, you can find him barefoot in his garden.(775) 351-9439 [email protected]

David Scacco, Partner

David Scacco has 20+ years of experience as an operator, investor and advisor. Scacco started his career in the field of advertising and marketing in his hometown of Chicago. Shortly after moving to the California Bay Area Scacco joined Google in early 2000 and holds the distinction as the company's first advertising sales executive. During his 7 years at Google, Scacco established and led a strategic sales/business develop-ment team and contributed to the overall growth of the company. More recently Scacco has held sales leadership positions for a number of tech startups and serves as an angel investor and advisor.

Scacco strongly shares OpenPath’s belief that the best businesses create significant benefits for all parties involved (in this case investors, residents, and the environment). Scacco has personally invested with OpenPath since 2008.(650) 804-1819 [email protected]

Investment Team (continued)

Sara Mossman, Urban Village Program Director

Sara’s first home was a small, indigenous village in the South Pacific where she learned to live in strong kinship with her community and the surrounding ecology.

Sara’s start in life naturally led her to a career in horticulture and ecological design, focusing onenvironmental sustainability. Over the past 15–years, she has educated audiences ranging from multi–national corporations to school children on the importance of adopting an eco–friendly lifestyle and she has created regenerative environments for individuals and businesses interested in maximizing poten-tial and minimizing environmental impact.

As Program Director of the Urban Village program, Sara provides aesthetic and lifestyle design concepts that support OpenPath’s triple bottom line investment strategy. On a daily basis, she thrives on getting to know apartment residents and supporting them with tools, inspiration and ideas to enrich theircommunity life—from community gardens, to skill–sharing and leadership development.

Jay St. Claire, Director of Property Development

Jay has extensive experience in property development, construction management, sustainability best practices and direct sourcing. Jay’s vision and creativity supports the OpenPath philosophy, he has been a career property developer and product innovator for over 20 years. His diverse skills and experience include: quality control, developing and managing budgets, luxury brand retail store design anddevelopment, product design and direct sourcing for high end retailers, residential propertydevelopment and design, and managing all aspects of large construction development programs.

Desiree Storch, Chief Financial Officer

Desiree has long held a personal commitment to creating a world where people live together in dignity, respect, understanding and trust. Her vision aligns well with OpenPath’s philosophy, and she has almost three decades of administrative, operations and accounting experience from a broad range of industries including: construction and engineering, real estate, property management, financial services, banking and non-profits. As Chief Financial Officer, Desiree is tasked with overseeing all internal accounting, project management, investor interface and maintaining best practices business systems for the firm.


5

[email protected]

Investment Team

Peter Slaugh, Managing Director

Peter Slaugh is the Founder and Managing Member of OpenPath Investments, formerly Su Casa Invest-ments, LLC. After his initial career in residential real estate starting back in 1991, Peter moved into commercial real estate in the capital markets arena with GMAC CM in 1997 funding in excess of $1billion in debt & equity products for his clients. Quickly, Peter recognized the value of investing in multifamily investments alongside his clients starting in 1999.

Peter formed Su Casa Investments in 2005 to acquire value-add apartment communities in the Western States. Peter has owned either as a GP or a limited partner over 4100 units (dating back to 1999) in various markets ranging from San Antonio, TX, Las Vegas, NV, Richland, WA, to Santa Rosa, CA, and now owns and operates a portfolio of assets in AZ, CO, NV, OR, TX, UT & WY comprised of over 3500 units and growing.

Recognizing the value in a “whole property stewardship” approach to the business, Peter evolved his platform to include “community building” and “greening” of resident lifestyles through the Urban Village program. The OpenPath platform is the latest evolution of this approach and really embraces the notion that “doing good” is also “good for business” and now measures success not only economically, but also socially & environmentally. (415) 454-8002 [email protected]

Gino Dante Borges, Ph.D., Partner & Director of Impact

Gino’s path has led him from a California dairy farm to earning a Ph. D. in Communications from Purdue University, from Nevada desert quests to family ranch stewardship. And now from old school real estate investing to impact investing.

Gino speaks and teaches about impact investing, multi-family real estate, community, wealth and steward-ship. He has given talks at the Impact Hub SF, executive MBA programs, art salons, and recently, TEDx University of Nevada.

When Gino is not impact investing, you can find him barefoot in his garden.(775) 351-9439 [email protected] Investing: Making Money More | Gino Borges | TEDxUniversityofNevada

David Scacco, Partner

David Scacco has 20+ years of experience as an operator, investor and advisor. Scacco started his career in the field of advertising and marketing in his hometown of Chicago. Shortly after moving to the California Bay Area Scacco joined Google in early 2000 and holds the distinction as the company's first advertising sales executive. During his 7 years at Google, Scacco established and led a strategic sales/business develop-ment team and contributed to the overall growth of the company. More recently Scacco has held sales leadership positions for a number of tech startups and serves as an angel investor and advisor.

Scacco strongly shares OpenPath’s belief that the best businesses create significant benefits for all parties involved (in this case investors, residents, and the environment). Scacco has personally invested with OpenPath since 2008.(650) 804-1819 [email protected]

Investment Team (continued)

Sara Mossman, Urban Village Program Director

Sara’s first home was a small, indigenous village in the South Pacific where she learned to live in strong kinship with her community and the surrounding ecology.

Sara’s start in life naturally led her to a career in horticulture and ecological design, focusing onenvironmental sustainability. Over the past 15–years, she has educated audiences ranging from multi–national corporations to school children on the importance of adopting an eco–friendly lifestyle and she has created regenerative environments for individuals and businesses interested in maximizing poten-tial and minimizing environmental impact.

As Program Director of the Urban Village program, Sara provides aesthetic and lifestyle design concepts that support OpenPath’s triple bottom line investment strategy. On a daily basis, she thrives on getting to know apartment residents and supporting them with tools, inspiration and ideas to enrich theircommunity life—from community gardens, to skill–sharing and leadership development.

Jay St. Claire, Director of Property Development

Jay has extensive experience in property development, construction management, sustainability best practices and direct sourcing. Jay’s vision and creativity supports the OpenPath philosophy, he has been a career property developer and product innovator for over 20 years. His diverse skills and experience include: quality control, developing and managing budgets, luxury brand retail store design anddevelopment, product design and direct sourcing for high end retailers, residential propertydevelopment and design, and managing all aspects of large construction development programs.

Desiree Storch, Chief Financial Officer

Desiree has long held a personal commitment to creating a world where people live together in dignity, respect, understanding and trust. Her vision aligns well with OpenPath’s philosophy, and she has almost three decades of administrative, operations and accounting experience from a broad range of industries including: construction and engineering, real estate, property management, financial services, banking and non-profits. As Chief Financial Officer, Desiree is tasked with overseeing all internal accounting, project management, investor interface and maintaining best practices business systems for the firm.

OpenPath Investments [email protected]

Urban Village Impact: Social Capital, Leadership/Education and Ecological Stewardship

Social Capital Leadership/Education

The Urban Village program is based on the simple idea that we as human beings operate stronger as acollective community than as individuals. The program is a vision for the greatness that community and living spaces can achieve.

The goal of the Urban Village program is to transform ordinary apartment spaces into thriving communities. Places where residents learn to thrive by supporting each other.

For the people we serve, Urban Village seeks to improve household earnings, strengthen the social safety net, establish a higher standard of living, provide easier access to education and mentorship, deepen personal empowerment and competence, offer career-oriented leadership opportunities and remove the stress that arises from relocating.

When true community is achieved, the positive outcomes for our residents translate into broad impact for the cities and regions where the communities are located. These include an increased tax base, decreases in the need for social services or police services, higher commercial viability for the local economy, increased resiliency against economic downturns, enhanced neighborhood vitality and social cohesion, and an improveddesirability–index with respect to the best places to live.

This broad impact on society provides a socially responsible investment opportunity within the multifamily investing world. It’s an alternative investment opportunity with a conscience.

2012-2015ACCUMULATED

Urban Village Investments in Community Development 600K

500K

400K

300K

200K

100K

$310,233

2016ACCUMULATED

PROJECTED

$407,996

2017ACCUMULATED

PROJECTED

$530,196

6


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7

$3 MILLION in improved economic outlookand household income(projected 5 year impact)

Enhanced social and economic outlook through increased camaraderie, higher trust, stronger networks, and the exchange of community resources.

Social Capital

Community HubsIncreased opportunity for interaction, networking, and 'connection' in physical spaces made available for residents, raising thepotential of the community to coalesce.

1620

25

2012-15 2016PROJECTED

2017PROJECTED

Accumulated number of additional places for people to meet and connect

Urban VillageMentoring Site VisitsAccelerated impact and 'community potential' that residents experience as a result of exposure to and insight from a professional community facilitator & mentor.

2644

69


2017PROJECTED

Accumulated number of site visits

Overall more cohesion and camaraderie amongst residents, stronger friend-ships and collaboration, greater feeling of trust and safety amongst residents. Unlocks the aggregation of valued community resourc-es, which enhances the social, cultural, and econom-ic outcomes of residents.

11,520

32,400


2017PROJECTED

20,160

Social CooperativesIncreased understanding of the definition of community, reinforces positive identity and public recognition, higher level of satisfaction amongst residents the deeper they involve them-selves in community.

4064

98


2017PROJECTED

Accumulated number of closely - knitted community groups that emerge via working together

Accumulated number of residents participating or attending events

Social CapitalConnections

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8

Each resident has at least 24 opportunities each year to develop leadership skills and participate ineducational and social events.

Greater knowledge, confidence and personal development, through increased access to free classes, leadership opportunities and group decision-making.

[email protected]

CommunityPlanningIncrease in number of residents interested in and participating in creating thriving community. More ideas are heard and instituted. 104

248

452


2017PROJECTED

Accumulated number of resident council meetings Opportunities

for CommunityLeadershipMore residents considering themselves leaders.Stronger communities resulting from supportby leaders.

57107

192


2017PROJECTED

Accumulated number of rotating facilitators and long-termambassadors

Youth EventsResident children have more fun onsite, engaged with seasonal events and neighbors, higher reading levels, higher level of trust in community, better nutrition, more friend-ships. Increasedopportunities for learning onsite.Example: Kids Camp, Summer Reading Program, Visit from Santa Claus

78

186254


2017PROJECTED

Accumulated number of Events & Programs

EducationalEventsIncreased access to knowledge, enrichment and personaldevelopment.Example: Wellness, language, writing, cooking classes.95

143

211


2017PROJECTED

Accumulated number of Events & Programs

Leadership/Education


9

360 TONS of waste diverted from landfills(projected 5 year impact)

Improved personal and planetary health through increased eco-literacy and environmental responsibility, and decreased ecological footprintof the property.

Eco AwarenessResidents learn why and how to save resources. Residents trade items and save more money. Environ-mental benefits of more people aware, recycling, taking positive action.Examples: Earth Day, America Recycles Day, Swap Meet.


1943

77


2017PROJECTED

Accumulated number of ‘green’ events and programs

Garden ProgramResidents learn how to grow and harvest food from backyard farm to table. Residents feel more invested and rooted at the property. Residents save money. Residents are healthier. 50 74


2017PROJECTED

114

New OnsiteRecycling ProgramsGreater opportunities for residents to recycle, and increase in actual recycling and decrease in landfill.

12731473


2017PROJECTED

1673

Trash diversionfrom landfill300 tons of waste diverted from land.

51110


2017PROJECTED

176

Accumulated number of gardeners

Accumulated tons of recycled waste diverted from landfill

Accumulated number of residents now with access to recycling

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