VHGF III Investment Thesis

Transcription

1 VHGF III Investment Thesis Illiquid TIC Marketplace Few Buyers = Pricing Power Credit Market Contraction = Increased Demand for Capital Higher Interest Rates Limit Refinancing Robust Off-Market Deal Flow Extensive Restructuring Experience Strong Track Record to Date

2 TIC Deals Popular pre-2008 financial crisis Unsophisticated ownership groups Purchased at the top of the market Heavy load Highly-leveraged Poor management Excessive management fees Negative tax consequences for TIC investors if sold

3 Looming Distress in TIC Market $103.3 billion of CRE loans maturing in 2017 Increasing interest rates make refinancing/sale more difficult Stricter underwriting standards Increasing delinquency rates on maturing debt Election results have negatively impacted TIC investor sentiment Limited investment capital available VHGF III will provide gap financing

4 TIC Buyout Patchen Oaks Louisville, KY 6

5 Rescue Capital Addison Corporate Center, Windsor, CT

6 Bridge Financing Britannia Business Center, Pleasanton CA

7 Opportunistic Midtown Atrium Virtua 99 th Peoria Lakes 12

8 Contact/For More Information Matt Mueller President Versant Commercial Brokerage (619) Derek Uldricks President Virtua Capital Management (619)

9 Virtua Partners About Us Virtua is the sponsoring entity for a family of real estate companies that provide debt and equity origination, asset management, property management, and advisory and consulting services Virtua and its family of companies have been engaged on approximately 300 transactions with collective loan values in excess of $4.5B National commercial real estate advisory Expertise with Tenant In Common (TIC) properties Several investment funds under management 21 projects in various stages of development

10 Principals Lloyd W. Kendall Jr. Chairman of Virtua Partners Chairman and Co-founder of Bay Commercial Bank San Francisco based entrepreneur 35 years of experience in real estate investment and finance Practicing attorney since 1978 specializing in real estate and tax law Formerly employed at the Internal Revenue Service Founded and managed Lawyers Asset Management Former President of Equity Investment Exchange Lectured extensively throughout the U.S. on 1031 tax deferred exchanges Managed 30,000 individual 1031 exchanges Quinn Palomino President of Virtua Partners, Founder & Principal of Clear Vista Management San Diego and Phoenix based entrepreneur Specializes in asset management, property management, debt restructuring, debt and equity origination, and Section 721 rollup consulting Extensive investor relationships Previously worked on over $2B of debt restructurings at a workout firm Formerly a partner at a San Diego based construction and development company 17

11 Executive Team Matt Mueller President of Versant Commercial Brokerage Over 13 years of capital markets and investment real estate experience, including more than 500 completed transactions Implemented the financial analysis, sourcing of debt and equity, and modeling for over $500M in recapitalization assignments Previously a Director of Real Estate for Andrew Arroyo Investments and a broker partner with Coldwell Banker Commercial BA from California State University, Chico Derek Uldricks President of Virtua Capital Management Over 10 years of experience in business development, real estate finance, and construction management experience Previous roles at JBT Incorporated, a San Diego based construction firm, and Criterion Mortgage Corporation, a boutique loan originator Graduate of the University of California, San Diego with a B.A. in Economics, a concentration in Finance, and a minor in Accounting. Nick Montague VP Finance for Versant Commercial Brokerage Head of the underwriting team for the Virtua family of companies for the last 6 years, where he has underwritten over $3B of commercial real estate across the United States, including multifamily, office, industrial, retail, hospitality, mixed use, and raw land Previously worked for Bridger Commercial Funding, a large CMBS lender, where he underwrote more than $500MM in CMBS debt Prior work includes project management and financial analysis for Ford Mance Company, a commercial real estate developer BS in Finance from California State University, Long Beach

12 Principals & Team Lloyd W. Kendall Jr. Chairman of Virtua Partners Quynh Palomino Matt Mueller President of Virtua Partners President Founder & Principal of Clear Vista Versant Commercial Brokerage Management Derek Uldricks President Virtua Capital Management Bret Maidman General Counsel Nick Montague Vice President, Finance Versant Commercial Brokerage Cheramie Raffield Accounting Director Joe Whalen President Quyp Hospitality Valerie Reid Compliance & Investor Relations Versant Commercial Brokerage Wade Mains President Quyp Residential Andrea Sabino Asset Manager Clear Vista Management

13 Corporate Organization Lloyd W. Kendall Jr, Chairman Quinn Palomino, President Quinn Palomino, Founder & Principal Matt Mueller, President Nick Montague, VP Finance Quinn Palomino, Founder and Principal Andrea Sabino, Asset Management Samantha Randant, Property Management Derek Uldricks, President