( M C E F ) Capital Equity Fund LLC.

Transcription

1 ( M C E F ) Capital Equity Fund LLC.

2 MACC Venture Partners is prud t launch a new prtfli fund that will acquire Real Estate frm a diversified-asset mix f incme prducing Class A, B, and C multifamily prperties in primary and sub-primary markets acrss the Sutheastern crridr f the United States. The fund will seek t leverage the cmpany s cre capabilities in enhancing assets, t prduce an incme generating investment fr U.S., as well as nn-u.s. based, investrs. The fund advantage lies in the cmpany s histric ability t efficiently surce, acquire, repsitin, and perate real estate assets that are trading belw their intrinsic value due t structural, capital, and management inefficiencies. In ding s, the fund seeks t prcreate superir, risk-adjusted returns t investrs and partners, while emphasizing dwnside prtectin. The substantive infrmatin shared in this presentatin is subject t the disclsures cntained n the last slide. Fr any questins related t such disclsures please cntact Jhn@maccvp.cm. 2

3 Target Launch Date: Q Capital Target: $100 Millin Expected Average Units Per Prperty: Units Minimum Investment : $1,000,000 Prjected Average IRR t Investrs: Targeted Average Deal Size: Intended Average Hlding Perid: Gegraphic Cverage: 15-23% $5 Millin t $20 Millin 3-5 Years Sutheastern United States MCEF DATA POINTS Our Prjectins Prperty Type: Target Annual Cash n Cash Return: Auditrs: Capital Deplyment Perid: A, B, and C Multifamily 6% t 12% Ellit Davis Decsim 24 Mnths Leverage Maximum: 65%-75% Fees: 2% (200 bps) Asset Management, 1.5% (150 bps) Acquisitin Fees 3

4 MACC Venture Partners MACC Venture Partners The capital arm f MACC Prperties and Capstne Multifamily Grup Own and manage ver 4,900 units in 5 states Offices lcated in: Gastnia, Nrth Carlina Miami, Flrida Capstne Multifamily Grup Prperty Management Incrprates the fllwing services Transparent and Cst-Based Expensing Flexible Accunting & Planning Services Web-Based Prtals An Orderly Bidding System Ttal Maintenance Cntrl 4

5 MCEF Exper tise Seeking lng term capital appreciate thrugh niche acquisitin strategy. Prviding Quarterly distributin f cash flw thrugh an efficiently managed prtfli f assets. 5

6 MCEF Three Pillar s f Success BUY Right FINANCE Right MANAGE Right Cnservative underwriting Cntingency planning and exit strategies Strng distillatin f deals Leverage and terms The right lender Capital expense reserve Hands-n apprach Management team Transitin/implementatin team Underwriting executin 6

7 INVESTMENTS 10 Years in the Sutheast Real Estate Owner/Operatr with Prven Histry Differentiated Fcus Strng Deal Flw/Pipeline Prven Syndicatin Strategy Prperties are managed by a cumulative team; currently ver 120 members, including prperty managers, leasing agents, and n-site maintenance staff. Existing prtfli cnsists f ver 3,000 apartment units and cmmercial ffice space. Stable, lngstanding peratins are cntinuusly prviding market intelligence, deal leads, and asset due diligence. Primary fcal pints are multifamily and ffice sectr, in markets with strng macrecnmic prspects; fcus n prjects with clear, value-add. Targeted n a niche f $5 - $25mm f equity the sweet spt where lcal and institutinal buyers are reduced. Assets are acquired nly with prjectins f strng cash flw, either immediately r after imprvements. Deals are generated frm a variety f surces including special servicers, banks, and a multitude f brkers and asset partners; all with intelligence in lcal markets. Opprtunities als available t participate in direct deals with Capstne Multifamily Grup a sister cmpany and peratr f assets. Prper distillatin f apprximately 200 deals results in an average f 6-10 investments each year. $50mm in capital cmmitments has been raised ver the past 15 deals. Supplemented by $100mm in lw cst debt. 30 assets ttaling apprximately $200mm in market value, with excellent metrics have been acquired r cntracted t purchase. 7

8 INVESTMENTS Philsph y & Strategy Sell Prperty Adjust Rents Distribute Prfits t Investrs Distribute Cash Flw Buy Prperty Renvate Prperty Increase Occupancy Identify target pprtunities Underwrite based n thrugh analysis f peratins, revenue prjectins, and capital upgrades Evaluate full range f utcmes Thrughly understand critical success factrs Identify multiple exit strategies Negtiate best terms by leveraging existing synergies Create debt and equity structures that prvide best investment Actively manage assets and expenditures cnsistently 8

9 INVESTMENTS Implementatin& Prcess Market Analysis Preliminary Due Diligence Due Diligence Analysis & Clsing Asset Mgmt. Exit Market research & Analysis bth with technlgy tls and lcal expertise Leverage relatinships w/ senir banking fficers, trustees & brkers Physical inspectin f assets & market Revenue estimates n assets Define plan and exit strategy Build full bttm-up and tp-dwn analytics including cst assessments Engineering, envirnmental structural & due diligence Municipal issues, impact fees, zning, & utilities Full legal review f asset and title Facilitate crp. structure and clsing Cntract negtiatin and preparatin Execute business & marketing plan f asset Imprve Rent & Occupancy Day t day peratins fr mgmt. assets Cntinuusly mnitr market t determine ptimal exit timing Bradly market prperty via natinal brker t reach maximum audience 9

10 Value in billin U.S. dllars Value f investment in cmmercial real estate wrldwide frm 2007 t 2017 (in billin U.S. dllars) INVESTMENTS Benefits f Cmmercial Real Estate * 2016* 2017* Surce: Statista frm Knight Frank

11 INVESTMENTS Benefits f Multifamily Lw hmewnership has benefited the natin s multifamily sectr In Q2 f 2016 apartment vacancy fell t 3.8 percent, equaling the 10- year lw Rent has risen steadily fr the past six years, increasing 5.3 percent frm last June while the absrptin f 123,000 units was ne f the highest levels since Causes f histrically lw hmewnership levels: Delays in life changes amng multiple generatins Scarce inventry The inability t save fr dwn payment requirements Mre stringent credit terms Steadily increasing hme price *Infrmatin & Graphic are Frm Marcus & Millichap Research Services 11

12 INVESTMENTS Benefits f Multifamily "There are nw mre Americans renting than at any ther time in U.S. histry." Natinal Real Estate Investr *Frm the Jint Center Fr Husing Studies at Harvard University; published in December

13 MACC Venture Partners Investment Benefits C A S E S T U D Y Cnventinal Market Rent, 120 Units, Augusta, Gergia Occupancy at Acquisitin % Occupancy at Sale 2014 Return n Investment Pref Return = 9% 98% Internal ROI= 31% Histrical case studies are prvided fr infrmatinal purpses nly; they are nt prmises f future perfrmance r specific returns as past perfrmance is nt an indicatin f future results. Prjects and hldings in the fund may have cnsiderably varying degree f returns in cmparisn t past prjects. Any Investment in the fund may have lss expsure. 13

14 IRR After 4.5 Years MACC Investment Benefits 31% C A S E S T U D Y Cnventinal Market Rent, 120 Units, Augusta, Gergia Prperty Value Increase $ $ Purchase Price ( ) Sale Price ( ) Histrical case studies are prvided fr infrmatinal purpses nly; they are nt prmises f future perfrmance r specific returns as past perfrmance is nt an indicatin f future results. Prjects and hldings in the fund may have cnsiderably varying degree f returns in cmparisn t past prjects. Any Investment in the fund may have lss expsure. 14

15 MCEF Rles & Experience P r t f l i M a n a g e m e n t P a r t n e r s Respnsibilities Oversees the cmplete prcess f identifying, analyzing, acquiring, managing, marketing, syndicating all prperties. and Respnsibilities Directs strategic develpment and grwth; als versees capital structure, alternative financing, and investr/prtfli develpment Tny Azar Chief Executive Officer Experience 25 years Asset Management, Asset Acquisitin, Prperty Management, RE Finance, Start-ups & new ventures Jhn Azar Executive Vice President Experience 15 years Investment Management, Institutinal Finance, Debt & Equity, RE Develpment, Venture Funding F i r s t C l a s s S u p p r t Auditrs 3 rd Party Administratin Prperty Management Legal 15

16 MCEF Leadership Bis Tny Azar, Chief Executive Officer Tny is the Chief Executive Officer f MACC Venture Partners. His fcus is n acquisitins, repsitining, and management f all real estate hldings and prjects. Tny manages and versees the cmplete prcess f identifying, analyzing, acquiring, managing, marketing, and syndicating all prperties. Tny started in Real Estate in 2003 and has a histry f success as an entrepreneur. In additin, Tny wns Capstne Multifamily Grup, a family-run prperty management cmpany that wns and/r manages 27 apartment cmplexes cnsisting f ver 2,700 rental units in ver 15 markets thrughut the Sutheast. Tny attended Nrth Carlina State University and the University f Nrth Carlina in Charltte where he studied Electrical Engineering, Analysis & Design (EAD). Jalal Jhn Azar, Executive Vice President Jhn@maccvp.cm Jhn is the Executive Vice President f MACC Venture Partners and the Capstne Multifamily Grup f cmpanies where he directs strategic develpment and grwth. He versees capital structure, alternative financing and investr/prtfli develpment. Jhn has a histry f prnunced success in investment management, institutinal sales and distributin as well as cmmercial banking and lending. Jhn was a c-funder and Managing Partner f Bstn Venture Partners (BVP), a private equity cnsulting and finance firm specializing in real estate develpment, and structured finance. Thrugh his tenure he wrked n a cumulative prtfli f $1.8 Billin spanning frm Bstn t Miami as well as Lndn and Suth America. Jhn hlds a B.A. frm the University f Nrth Carlina in Charltte and an M.B.A. frm Bstn University Questrm Schl f Business. 16

17 MACC Venture Partners Family f Cmpanies Private Equity Cmmercial Real Estate Multifamily Office & Land Glbal Listing Services Prperty Valuatin Buyer Representatin Capital Preservatin and Appreciatin Quality Assets Undervalued Opprtunities Flexible Prtfli Fund Management Management f Incme Prducing Assets Transparent and Cst-Based Expensing Flexible Accunting & Planning Services Web-Based Prtals An Orderly Bidding System Ttal Maintenance Cntrl Flexibility f Management 17

18 MACC Venture Partners Established Sutheast Presence Charltte Office 251 W Main Ave Gastnia, NC Miami Office 1421 S Miami Ave Suite #9 Miami, FL 18

19 Disclsure The infrmatin herein has been prepared n a cnfidential basis slely fr yur infrmatinal purpses and is being furnished t a limited number f t accredited investrs as such class is determined in accrdance with federal securities laws fr discussin purpses nly. It is nt an ffer t buy r sell r a slicitatin f an ffer t buy r sell any limited partnership interests, securities r t therwise participate in any investment r trading strategy ( Investment ). If any ffer f Investment is made, it shall be pursuant t a definitive Operating Agreement, Private Placement Memrandum subscriptin dcuments and/r ther relevant definitive legal dcuments, prepared by r n behalf f the Opprtunity which wuld cntain material infrmatin nt cntained herein and which shall supersede the infrmatin herein in its entirety ( Definitive Legal Dcumentatin ). The Opprtunity mentined in this dcument will nt be registered in yur jurisdictin and t the fullest extent pssible any such ffer will be made nly pursuant t private placement exemptins available. It may therefre nt be eligible fr sale r investment in yur state r cuntry and may nt be suitable fr yu r certain types f investrs. As such, any decisin t make an Investment shuld be made after reviewing the Definitive Legal Dcumentatin fr the Opprtunity which will cntain representatins by yu that yu are a sphisticated investr meeting any relevant regulatry requirements and that yu have cnducted such investigatins as yu deem necessary and after cnsulting yur wn investment, legal, accunting and tax advisrs in rder t make an independent determinatin f the suitability and cnsequences f making an Investment. Althugh the infrmatin prvided n the fllwing pages has been btained frm surces which MACC Venture Partners believes t be reliable, MACC VP des nt represent r warrant its accuracy and such infrmatin may be incmplete r cndensed and must nt be relied upn by yu. The infrmatin is subject t change withut ntice. Since the MACC VP furnishes all infrmatin as part f a general infrmatin service and withut regard t yur particular circumstances, MACC VP shall nt be liable fr any damages arising ut f any inaccuracy in the infrmatin. Investing is speculative and may invlve substantial investment, liquidity and ther risks. Investments can be leveraged and perfrmance results can be vlatile and may result in lss f principal. Past perfrmance is n indicatin f future results. There is n secndary market fr the investrs interests and high expenses may ffset any prfits the Opprtunity may generate. (i) All prjectins and frward-lking statements are based n the infrmatin available t the cmpany and its analysis f the same. They are nt prmises f perfrmance r specific returns ; and (ii) All case studies and histrical statements are prvided fr infrmatinal purpses. They are nt prmises f future perfrmance r specific returns. 19

20 Cntact Infrmatin 257 West Main Ave. Gastnia, NC