Virtua - versantcre.com · virtua high growth is a fund of virtua partners offered by virtua high...
Transcript of Virtua - versantcre.com · virtua high growth is a fund of virtua partners offered by virtua high...
VirtuaHIGH GROWTH FUND II
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
The Virtua High Growth Fund II (“VHGFII” or “The Fund”) is a real
estate investment fund for investors looking to achieve compelling
rates of capital appreciation through value add investments in
commercial real estate. Many investors lost substantial capital in the
global financial crisis. The fund is designed to recoup capital lost
through the following strategies: (right column)
• Purchasing tenant-in-common (TIC) interests from investors looking to exit
• Offering liquidity to the TIC and fractional interest marketplace
• Investing in opportunistic devel-opment and value add projects
• Recapitalizing underperforming assets
• Providing superior management services through affiliates
• Infusing rescue capital into select high-growth investments
INVESTMENT SNAPSHOT
Target ROI
Return Incentive Split
Projected Period
Min. Investment
Offering Amount
Annual Mgmt Fee
30%+ Annual 15% Preference to Capital then 50/50
Three Years $25,000 $10,000,000
2%
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
INTRODUCTION
The predecessor to VHGFII is the Virtua High Growth Fund (VHGF).
VHGF started raising capital in February, 2015, and closed to new
investors in July of 2015. VHGF has made fourteen investments in a
variety of properties. Three of those investments have been realized
with an average internal rate of return of 123%, prior to expenses.
eleven of the investments remain outstanding. VHGF Manager (the
“Fund Manager”) expects to exceed targeted returns for VHGF. The
investment cycle for VHGF is expected to run for another 24 months.
Due to the large number of TIC loans maturing in 2016 and
2017, the Fund Manager is raising VHGFII now in order to take
advantage of this opportunity. In addition, there are other value
add and development transactions that are currently available.
Versant Commercial Brokerage, Inc. will serve as the funds Real
Estate Investment Advisor, and VHGF Manager, LLC (Quinn
Palomino) will serve as the funds Managing Member. The work of
the Managing Member and investment Management Company
is highly specialized. They have lengthy experience, extensive
research and monitoring capabilities, and developed programs and
systems to assist in identifying and underwriting of each project. The
systems they have developed are proprietary. The Fund’s overriding
goal is to build wealth through capital appreciation.
INVESTMENT STRATEGIES
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
INVESTMENT STRATEGIES
The Fund will invest in commercial real estate, primarily in tenant-in-
common, fractional ownership, distressed properties, development,
under-performing and value-add opportunities. The goal is to achieve
superior returns and significant capital appreciation through the
following strategies:
• Purchasing tenant-in-common (TIC) interests from investors
looking to exit:
Many investors are looking to sell their TIC investments. Most of
these investors had unpleasant experiences with their TIC sponsors,
including excessive fees, bad management, poor communication,
and fraud. Other owners, after holding the investment for seven to ten
years, find themselves looking to exit their investment for a variety of
reasons, including deal fatigue, change of goals, health issues, family
considerations, profit realization, portfolio rebalancing, or simply a need
for cash. These sellers present excellent buying opportunities at low
current prices. The fund manager, with its deep TIC experience, can
capitalize on such opportunities for the benefit of the fund investors.
• Offering liquidity to the TIC and fractional interest marketplace:
TIC owners looking to exit their investment have few opportunities to
sell. There is no reliable clearing house to buy and sell TIC interests.
In addition, individual investors have difficulty complying with securities
regulations and transfer restrictions when they go to sell their TIC
interest. This lack of liquidity and absence of a market maker provides
an opportunity for the investors of VHGFII. The Fund aims to create
a marketplace for TIC owners to buy and sell their interests. VHGFII
investors benefit from a pipeline of opportunities, motivated sellers, and
excellent buy-side pricing for the fund. The Fund plans to purchase
these positions at below-market prices with attractive ‘’liquidity
discounts”.
VHGF RECENT INVESTMENTS
Anchored by credit tenants such as ADP and Carl Zeiss the project is well positioned to achieve leasing and valuation targets. Britannia provided VHGF an excellent opportunity to buy significantly below market price.
Britannia Business CenterPleasanton, CA
Square Feet
Built
Parking
291,591
1997
4:1000
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
• Recapitalizing underperforming assets:
Often TIC properties fall into disrepair when there is not enough
money for capital expenses. Many TIC properties need new capital
for tenant improvements and leasing commissions. The Fund will
identify properties in need of a cash infusion. With strong management
and adequate capital, these properties are positioned to improve
dramatically. VHGFII is designed to invest in these opportunities.
• Opportunistic Investments:
As an active participant in many submarkets, Versant becomes
aware of opportunities to purchase real property -- that can then be
repositioned or developed. Many of these opportunities are related
to an existing project. For example, a building adjacent to an existing
Virtua sponsored building is substantially under parked and can’t lease
up. By acquiring this property and providing additional parking, the
property value is increased dramatically (existing investors have first
right to invest). Another example is when an existing investment group
needs to expand geographically via development; this provides an
opportunity to acquire and master plan a larger parcel while lowering
development risk.
• Providing superior management services through affiliates:
Many properties are burdened with grossly excessive fees and
expenses. Reducing fees and expenses provides an immediate lift
to net operating income and the value of a property. It is important to
align a project with excellent property level management. Effective
operators must be proactive in order to maintain competitive costs. The
Fund sponsor and affiliated companies have experience in reducing
expenses on TIC properties. VHGFII seeks to identify assets that need
improved property-level operations.
INVESTMENT STRATEGIES
VHGF RECENT INVESTMENTS
This mixed-use business park offers a superb location as a one-story, flex office building currently 100% occupied by two long term, investment grade tenants, Progressive Casualty Insurance and Waste Management, Inc.
Met Center 15Austin, TX
Square Feet
Acres
Built
Parking
257,600
26.83
2001
5:1000
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
• Infusing rescue capital to select high growth investment:
VHGFII will provide rescue capital for properties with poorly timed lease
expirations or upcoming loan maturities. These opportunities provide
exceptional risk adjusted returns. The rescue capital will facilitate
leasing, which will improve the value of the investment.
INVESTMENT STRATEGIES
VHGF RECENT INVESTMENTS
This Class A Office was renovated in 2006 and is located in a high visibility location on Reed Hartman Hwy in highly desirable Blue Ash submarket north of Cincinnati’s CBD, with many convenient amenities nearby.
Northmark II Office BuildingCincinnatti, OH
Square Feet
Acres
Built
Parking
Spaces
103,400
2.37
1984
3.5:1000
361
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
HIGHLIGHTS
• Diversification:
The Fund will reduce risk by investing across many different markets
and product lines.
• High Returns:
Targeted annual return on investment is projected to be over 30%.
• Experience:
Managed and advised by professionals with more than 30 years of
commercial real estate and TIC investment experience.
• Market Timing:
Investments will generally be made in improving markets. Most
investments are short to medium term to avoid dependency on
market cycles.
• Value Creation:
The Fund and its related companies will provide value add services
in order to obtain targeted returns.
• Barriers to entry:
The TIC restructuring and secondary sales market is byzantine and
entry is difficult. However, the market is extremely inefficient which
allows for higher investor returns.
VHGF RECENT INVESTMENTS
Class A Office with cafeteria, featuring CIGNA is main tenant, with structured parking, large atrium and 24/7 security guard; located in an exceptional sub-market of Eden Prairie with high growth potential.
One Southwest CrossingEden Prairie, MN
Square Feet
Acres
Parking
239,119
8.3
5:1000
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
The Fund offers 100% transparency and believes that TRUST is the
most important part of its commitment to investors. The Fund’s
commitment to superior returns is only equaled by its commitment
to solid long term relationships with investors.
• One of the only investment vehicles available to capitalize on the
TIC and fractional ownership CRE opportunities.
• An experienced Managing Member and Investment Management
Company with proven commercial real estate experience in multiple
and volatile market cycles.
• An opportunity to diversify your portfolio into real, tangible assets.
• An opportunity to diversify the aggressive portion of your portfolio
across multiple properties, thus, reducing risk and increasing returns.
• Secure a discounted price basis on commercial real estate.
HIGHLIGHTS
VHGF RECENT INVESTMENTS
The Hampton Inn offers a 5-story Hilton branded Hampton Inn Hotel, fitness facility, and daily breakfast offerings; located in an exceptional sub-market of Philadelphia.
Plymouth Meeting Hampton InnPlymouth Meeting, PA
Square Feet
Acres
Built
Rooms
Parking Spaces
97,237
3.99
1998
136
361
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
EXIT STRATEGIES
Versant will review each investment and identify multiple exit
strategies to reduce risk. These strategies include, but are not
limited to:
1. Asset Sales: Through on market, listed investment property sales.
2. Refinance: Of stabilized assets can provide return of capital.
3. Partial Interest Sales: Versant has a network of investors looking
to purchase stabilized partial interests.
4. Fixed Income: Versant has a network of investment advisors
looking for fixed income opportunities to purchase the stabilized
assets or investment piece. This includes hedge funds, private
equity, insurance companies, broker-dealers, and family offices.
5. Other Funds: The team has a network of other stabilized income
funds which provide liquidity for each property investment.
VHGF RECENT INVESTMENTS
Patchen Oaks consist of 1 and 2 bedroom apartment homes. Featuring upgraded kitchens, in-unit laundry, fitness center, and community pool/room, with garages available. Beautiful landscaped grounds with community pool and amenities. Fantastic location nearby multiple shopping amenities, dining, and entertainment options, all within ten minutes of the property.
Patchen OaksHouston, TX
Units
Built
Renovated
192
1990
2006
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
WHY INVEST NOW
The financial crisis led to a drastic reduction in the value of
commercial real estate. As the cyclical real estate market recovers,
there are excellent opportunities to purchase investments at low
prices related to their value. The TIC industry, in particular, provides
numerous opportunities to invest because of poor sponsorship and
management. Many TIC investors who planned to invest for four or
five years are still looking for an exit eight years later. Sellers are
anxious to exit the investments and are willing to sell.
CMBS and loan maturities are anticipated to reach all-time highs
from 2015 to 2018, creating significant investment activity. Many
properties will not be able to refinance without rescue capital or
financial reengineering. Credit markets have improved providing
low-cost financing and strong availability to execute the strategies
laid out in the VHGF II business plan.
These conditions enable savvy real estate investors to benefit from
the upcoming real estate cycle. There are a large number of TIC
interests that can be purchased at low prices before the expansion
and appreciation of the next real estate cycle.
“As the cyclical real estate
market recovers, there are
excellent opportunities to
purchase investments at low
prices related to their value.”
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
INVESTOR WATERFALL
First: Investor Preferred Return to all investors in proportion
to their membership interest until each investor has
received a 15% preferred return on their capital contribution.
Second: Return of Investor Capital, 100% to all investors
until investors receive all of their original investment.
Third: Pro Rata distributions, thereafter, all distributions shall be
paid 50/50 between investors and sponsors based on investors
pro rata basis.
“The Fund’s commitment
to superior returns is only
equaled by its commitment
to solid long term relation-
ships with investors.”
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
OUR TEAM
VHGF Manager, LLC, an affiliate of Virtual Partners LLC, offers and
manages the highest quality commercial real estate investments
across the country. With a portfolio of over $300,000,000, Virtua
utilizes expansive expertise in property operations to maximize
cash flow. Virtua fosters deep relationships with national credit
tenants to increase our investors’ wealth through unparalleled
investment performance and appreciation.
Lloyd Kendall, Jr. - Principal
Lloyd is the Chairman and Co-Founder of Bay Commercial Bank. He
is a lawyer and has practiced in the Bay Area since 1978, specializing
in real estate and tax law. His specialty is tax free exchanges and
related matters. Lloyd started his career at the lnternal Revenue
Service. After leaving the IRS, Lloyd founded Lawyers Asset
Management, lnc., acting as a “Qualified Intermediary “ for tax
free exchanges under §1031(a) of the Internal Revenue Code. In
2006, his company merged with Commercial Capital Bank. Lloyd
has overseen more than 30,000 individual 1031transactions. He
served as tax counsel for several title companies and was the
President of Equity Investment Exchange, Inc.; a competitor
owned by Mercury Title Companies of Colorado. He has lectured
extensively throughout the U.S., providing continuing education for
Lawyers and Real Estate Professionals across the country. Lloyd is
the author of 1031 Exchange Concepts, a treatise on tax deferred
investment strategies.
Quinn Palomino - Principal
Quinn Palomino is the Founder and Principal of Clear Vista
Management, which provides specialized services to tenant-in-
common investors, including asset management and Section
721rollup consulting. Quinn understands the complex nature Quinn Palomino
Lloyd Kendall, Jr.
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
OUR TEAM
Virtua Partners
Led by Lloyd W. Kendall, Jr. and Quinn Palomino, Virtua Partners LLC
(“Virtua”) offers and manages the highest quality commercial real estate
investments across the country. Tapping into an expansive expertise
in property operations to maximize cash flow and utilizing deep
relationships with national credit tenants to increase investor wealth
through unparalleled investment performance and appreciation.
Virtua seeks to provide tax advantaged investments for individual
real estate investors. Seeking to purchase investment grade office
and industrial properties with an emphasis on high quality tenants
and steady returns. With a strict focus on cost control in all aspects of
a transaction - acquisition (load), management, operating costs, and
disposition. And providing the highest levels of customer service to
tenants, which enhances the long-term value of properties.
Virtua professionals have advised real estate funds with over
$5,000,000,000 in assets under management. Taking these
institutional experiences from Wall Street to the investors of Main
Street. Virtua’s investments have specific objectives, providing
balance to an individual investor portfolio. Through the synergies
of Virtua’s relationships and affiliated funds, they provide flexible
options to clients in today’s turbulent investment real estate market.
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
OUR TEAM
of TIC investments and offers TIC clients’ individual, personalized
service with an emphasis on communication and transparency.
Prior to launching Clear Vista Management, Quinn was the Director
of Business Development for Workout Consulting Firm where she
worked on more than $2B of TIC investments. Prior to Breakwater,
Quinn was a partner at a San Diego-based construction and
development company where she worked on development projects
with government agencies, including the California Department
of Parks and Recreation, the City of Pittsburg, and the California
Redevelopment Agency.
Versant Commercial Brokerage
Versant is a commercial real estate investment and finance firm.
Versant provides high quality investment opportunities for individual
investors by giving access to exclusive deals. Versant’s professionals
have advised on over $3,000,000,000 of commercial real estate
engagements.
Through a private network of investors, Versant provides debt and
equity capital for commercial real estate projects. Versant’s network
of relationships, sophisticated analysis, and experience in deal
structuring give it unique capabilities to place debt and equity for
real estate projects nationwide. Versant’s investors obtain superior
returns by directly investing in exclusive opportunities, thus,
eliminating redundant financial intermediaries.
With over 25 years of commercial real estate and investment
experience, Versant and its affiliates can provide the right suite
of advisory services for its clients’ specific needs. Each advisory
assignment is staffed with a team of senior professionals and
analysts to provided proven solutions.
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
OUR TEAM
Matthew Mueller -Versant President
Matt Mueller brings 13 years’ of capital markets and investment real
estate experience, including more than 500 completed transactions.
As a broker, he structured a wide range of commercial real estate
transactions, including investment, syndication, and development
opportunities. Matt handled feasibility analyses for Fortune 500
companies as well as institutional and private investor clients. Prior
to Versant, Matt led the Capital Markets and Structured Finance
team for a consultancy firm, providing nationwide commercial
loan workout strategies in excess of $4B. As Vice President, Matt
implemented the financial analysis, sourcing of debt and equity,
and modeling for over $500M in recapitalization assignments.
Matthew Mueller
“By removing Wall Street
middle men, aggressive
loads, and high fees,
Versant’s clients benefit
from lower costs and
increased returns.”
VIRTUA HIGH GROWTH IS A FUND OF VIRTUA PARTNERS
OFFERED BY
VirtuaHIGH GROWTH FUND II
VERSANT COMMERCIAL BROKERAGE, INC.Matt Mueller, President619.764.9640 [email protected]
AN OPPORTUNISTIC COMMERCIAL REAL ESTATE INVESTMENT FUND
NOTES
DISCLAIMER The information and any statistical data contained herein have been obtained from sources which we believe to be reliable, but we do not represent that they are accurate or complete, and they should not be relied upon as such. All opinions expressed and data provided herein are subject to change without notice. Versant Commercial Brokerage, Inc. and/or its members, directors, officers, consultants, and/or employees, may have agreements involving equity or other financial interests in the subject property, or deal as principals in the investment discussed herein.
This potential investment opportunity may not be suitable for all types of investors. All investments involve different degrees of risk. You should be aware of your risk tolerance level and financial situations at all times. Furthermore, you should read all transaction documents and statements. Read any and all information presented carefully before making any investment decisions. You are free at all times to accept or reject all investment recommendations made by Versant Commercial Brokerage, Inc. All investments presented are subject to market risk and may result in the entire loss of investment. Past performance is no guarantee of future results, and current performance may be lower or higher than the performance data quoted.
The information contained herein should not be used in any actual transaction without the advice and guidance of legal counsel and a professional tax advisor who is familiar with all the relevant facts. The information contained here is general in nature and is not intended as legal, tax, or investment advice. Furthermore, the information contained herein may not be applicable to or suitable for an individual’s’ specific circumstances or needs and may require consideration of other matters. Versant Commercial Brokerage, Inc. and its members, directors, officers, employees, and consultants assume no obligation to inform any person of any changes in the tax law or other factors that could affect the information contained herein.
These materials may include forward-looking statements, including financial projections, plans, target, and schedules on the basis of currently available information and are intended only as illustrations of potential future performance. Forward-looking statements, by their very nature, are subject to uncertainties and contingencies, and assume certain known and unknown risks.Since the impact of these risks, uncertainties, and other factors is unpredictable, actual results and financial performance may substantially differ from the details expressed or implied herein. Versant Commercial Brokerage Inc. assumes no obligation to release updates or revisions to forward-looking statements after the issuance of this report. Not all photos are representative of VHGF or Virtua investments and may be used for marketing purposes.