C row Holdings Capital Real Estate is a prominent, North American-focused asset manager of private equity real estate funds. Since 1998, CHC Real Estate and CHC-affiliated entities have managed six funds with equity capital totaling approximately $4.1 billion, with which nearly $13 billion in assets have been acquired or developed. Our funds are designed to generate current income and benefit from the capital appreciation of portfolio investments. CHC Real Estate s success is derived from a fundamental approach to, and deep understanding of, real estate value creation across various asset classes. The firm s many years of experience investing through real estate cycles and strong alignment with its partners guide a cautious but agile approach to acquisition and management strategies for its portfolios.
A Legacy of Success in Real Estate For more than 65 years, a foundation of true partnerships has yielded industry relationships that provide superior investment opportunities. What began in the 1940s as Trammell Crow s vision for modern real estate development has evolved into a multibillion dollar investment business across asset classes including real estate acquisition and development and a diversified investment advisory firm. Since 1998, in good markets and bad, Crow Holdings Capital Real Estate has developed strategies that lead to disciplined, high-quality investment decisions utilized in the real estate funds. Demonstrating conviction and alignment, Crow Family Holdings is among the largest investors in Funds I-VI, and in all funds is subject to the same fees and carried interest as other partners. Management Team One of the greatest strengths of Crow Holdings Capital Real Estate is the quality and experience of our people. CHC Real Estate is managed and directed by a six member investment committee that has worked with CHC and CHC affiliated entities for an average of 22 years. Bob McClain heads the Real Estate Investment Committee, which is comprised of himself, Anne Raymond, Kevin Bryant, Dodge Carter, Dan Feeney, and Carlos Rainwater. These individuals have spent the majority of their careers in the real estate industry in a broad range of real estate related disciplines, including acquisitions, development, dispositions, financing, leasing and management. They are supported by an experienced team of over 40 real estate professionals. Cultural Advantage Our roots as real estate developers and investment professionals create a competitive advantage because experience has shown us that real estate entrepreneurs seeking capital often prefer companies that fit culturally in the industry. Our large team brings a broad base of talent and experience in acquiring, developing and managing real estate assets and utilizes our expertise and extensive network to enhance the value of these investments by providing asset and portfolio management. 2
Investment Approach & Strategy Our investment approach places a premium on capital preservation through conservative deal structures, and portfolio diversification by property type, geography, investment size, and risk profile. Our experience has taught us that diversification of real estate investments generally allows us to reduce portfolio risk and volatility. The firm s many years of experience investing through real estate cycles and strong alignment with its partners inform a cautious but agile strategy for our portfolios from acquisition to exit.» Value Creation Our strategy is focused on properties located in growth markets possessing strong income streams and an opportunity to produce appreciation over an investment s hold period by employing strategies including: 1. Increasing net operating income 2. Redevelopment 3. Repositioning 4. Investing in recovering markets 5. Buying below replacement cost» Acquisition CHC Real Estate s strategy includes both the acquisition of existing assets and investment in new development, redevelopment and assets under development. We anticipate that our broad deal sourcing network and experienced real estate staff provide opportunities to create and manage a balanced and diversified portfolio.» Development Our managing principals have a long history of development, and CHC Real Estate intends to capitalize on its experience and capability as opportunities become available. Attractive development opportunities may exist in markets with strong job growth or in supply-constrained submarkets. CHC Real Estate targets development opportunities with strategic local operating partners.» Leverage Best-In-Class, Best-In-Market Service Providers Investment sales brokers and entrepreneurs are often reluctant to bring ideas to companies that vertically integrate, as they are competitors and will not consider them for property services. Because we have deliberately chosen to avoid vertical integration, we have the flexibility to leverage relationships with the best service providers in each market to create investment opportunities. Portfolio Diversification by Geography: Major Markets Focus* Fund IV Fund V Fund VI to date *Includes major markets and surrounding areas. 3
Investment Criteria CHC Real Estate professionals are constantly evaluating the real estate markets in order to deploy capital where we believe the best opportunities can be found on a risk-adjusted basis. We seek quality investments across the U.S. and target investments in markets that have consistently attracted institutional capital - which is intended to provide the opportunity for greater liquidity upon exit. We seek investments in various asset classes, including warehouses, retail centers, retail convenience store and gas station assets, multi-family housing, office buildings, medical office buildings and hospitals, hotels and land. Although investment size varies, we generally focus on transactions requiring $50 million or less in equity.» Industrial The industrial investment strategy primarily focuses on multi-tenant, warehouse buildings at in-fill locations in major U.S. markets. We focus on warehouses that we believe offer the opportunity for long-term capital appreciation. In addition to acquiring existing warehouse space, we seek to develop warehouse and industrial parks on a select basis.» Retail We primarily seek retail investments in affluent and dense neighborhoods with high barriers to entry in major markets across the U.S. We typically invest in grocery-anchored retail centers, strip retail centers and community centers ranging in size from 50,000 to 600,000 square feet.» Office The office investment strategy primarily targets well located, multi-tenant office buildings, including medical offices, in major markets with historically strong job growth. Investment opportunities include well-leased assets with limited near-term rollover as well as assets with existing vacancy or near-term lease expirations where job growth has resumed and demand is strengthening.» Multi-family The multi-family strategy primarily seeks Class A/B apartment complexes located in primary and larger secondary markets with strong population and job growth. We generally focus on the investment and/or development of garden style and urban in-fill multi-family housing containing a minimum of 200 units.» Convenience & Gas Stores The Convenience & Gas Stores Group seeks to provide mezzanine debt or co-invest equity for the acquisition of well-located assets primarily in major U.S. markets where there is alignment with a proven operator. The form of these investments can be through a joint venture (common or preferred equity), mezzanine loans and/ or sale-leasebacks.» Hotel We seek hospitality investments primarily in major markets throughout the U.S. that offer the opportunity to create value utilizing several strategies, including (i) the replacement of an existing manager with a more efficient operator, (ii) conversion to a better brand, or (iii) asset repositioning through capital improvements.» Land Historically, land has not been a significant part of our acquisition strategy. When land investments have been made, they are specifically targeted to take advantage of key demographic and/ or economic growth trends and focused on housingrelated development. 4
Real Estate Funds Since 1998, CHC Real Estate and CHC-affiliated entities have managed six private equity real estate funds. Equity capital from these funds totals approximately $4.1 billion, approximately $675 million of which has been committed by Crow Holdings. With this equity capital, nearly $13 billion in assets have been acquired or developed.» 2013 Fund VI: Crow Holdings Realty Partners VI, L.P. In August 2013, Fund VI closed with $1.067 billion in commitments. The official commencement date for Fund VI was November 1, 2012. Fund VI has a four-year investment period.» 2008 Fund V: Crow Holdings Realty Partners V, L.P. In December 2008, Fund V closed with $952 million in commitments. Total partnership capital less reserves was fully committed by November 2012. Fund V invested in 53 transactions.» 2006 Fund IV: Crow Holdings Realty Partners IV, L.P. In April 2006, Fund IV closed with $847 million in commitments. Total partnership capital less reserves was fully committed by December 2008. Fund IV invested in 54 transactions.» 2003 Fund III: Crow Holdings Realty Partners III, L.P. In October 2003, Fund III closed with $596 million in commitments. Total partnership capital less reserves was fully committed by February 2006. Fund III invested in 42 transactions. Fund III has been dissolved.» 2000 Fund II: Crow Holdings Realty Partners II, L.P. In March 2000, Fund II closed with $365 million in commitments. Total partnership capital less reserves was fully committed by September 2003. Fund II invested in 41 transactions. Fund II has been dissolved.» 1998 Fund I: Crow Family Holdings Realty Partners, L.P. In February 1998, Fund I closed with $281 million in commitments. Total partnership capital less reserves was fully committed by March 2000. Fund I invested in 42 transactions. 5
About Crow Holdings C row Holdings is a multi-billion dollar investment enterprise encompassing multiple operating businesses and signature properties, which include Crow Holdings Capital a registered investment advisor (RIA) comprised of private equity real estate funds and a diversified investment advisory firm as well as Trammell Crow Residential (TCR) and Crow Holdings Industrial. The company also maintains a significant stake in a number of signature properties including the Old Parkland Campus, the Anatole Hotel and Dallas Market Center all located in Dallas as well as the Windsor Court Hotel in New Orleans, LA, and the International Trade Mart in Brussels, Belgium. Crow Holdings CROW HOLDINGS CAPITAL TRAMMELL CROW RESIDENTIAL CROW HOLDINGS INDUSTRIAL SIGNATURE PROPERTIES Crow Holdings Capital is a $6.7B registered investment advisory firm. INVESTMENT PARTNERS Provides customized investment advice and bestin-class service to partner families. REAL ESTATE A prominent, North Americanfocused asset manager of private equity real estate funds. The premier multi-family real estate company and only national group with more than 35 years of experience in residential development and asset management. Focused on the development of speculative and build-tosuit industrial projects in Texas and surrounding states. Crow Family Holdings maintains a substantial stake in the ownership of various signature properties, with a level of involvement in the management of these businesses that ranges from active to passive. 6
For more information about Crow Holdings Capital Real Estate, please contact us at: 3819 Maple Avenue Dallas, Texas 75219 www.crowholdingscapital-re.com General Inquiries: 214.661.8000 info@crowholdingscapital-re.com Investment Opportunities: Bob McClain 214.661.8136 bmcclain@crowholdings.com 7