Crow Holdings Capital Real Estate · Crow Holdings Retail Fund commitments to date total $259...
Transcript of Crow Holdings Capital Real Estate · Crow Holdings Retail Fund commitments to date total $259...
Crow Holdings Capital – Real Estate
April 2015
Exhibit 10
Disclaimer
2
These materials are intended only for the person to whom they have been delivered. The information contained herein is strictlyconfidential and may not be reproduced or redistributed in whole or in part, nor may its contents be disclosed, to any otherperson under any circumstances. These materials are not intended to constitute legal, tax, or accounting advice or investmentrecommendations. These materials do not contain an offer or solicitation with respect to the purchase or sale of any security.Any investment decision in connection with Crow Holdings Capital’s (“the Investment Manager”) funds (“the Funds”) shouldbe made based on the information contained in the respective Fund Confidential Private Placement Memorandum (“theConfidential Memorandums”) and the respective Fund partnership agreement, which will be made available to qualifiedinvestors upon request.
The term “Funds” means the real estate private equity funds managed by Crow Holdings Capital (“CHC”) and any referenceto the Funds taking action shall be construed to refer to the respective “General Partner” acting on behalf of the Funds. Noneof the Funds, the General Partner, the Investment Manager or their respective affiliates and employees makes anyrepresentation that the information and opinions expressed herein are accurate, complete or current.
Any performance projections with respect to the Funds or any specific project are unaudited and calculated on a pro-formabasis. Portfolio targets, projected exposures and characteristics are provided for informational purposes only; they are deemed tobe reasonable approximations by the respective General Partner based on information available today, but no guarantee orassurance can be provided as to their accuracy, and they may not offer a comprehensive representation of Fund exposures. Inconsidering the investment performance information contained herein, investors should bear in mind that past performance isnot indicative of future results. There can be no assurance that the Funds will achieve comparable results, that targetedreturns, diversification or asset allocations will be met, or that the Funds will be able to implement their investment strategy orachieve their investment objectives.
Statements in these materials are made as of April 1, 2015 unless stated otherwise herein, and the delivery of these materialsshall not under any circumstances create an implication that the information contained herein is correct as of any timesubsequent to such date. Neither the General Partner nor the Investment Manager has any obligation or undertaking todisseminate any updates or revisions to any information contained in these materials to reflect any change in expectations orany change in events, conditions or circumstances. Certain information contained herein has been obtained from publishedsources prepared by other parties and has not been verified or updated through the date hereof.
Certain information in these materials may be deemed to constitute “forward-looking statements,” which can be identified bythe use of forward-looking terminology such as “may,” “will,” “seek,” “expect,” “intend,” “project,” “target,” “believe” or thenegatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, including thosedescribed in the Confidential Memorandums, actual events or results or the actual performance of the Funds or any particularproject may differ materially from those reflected or contemplated in such forward-looking statements.
Exhibit 10
Track record: CHC-RE has experience through multiple market cycles
3Please see important notices at the end of this presentation regarding gross/net performance, Fund projections and endnotes beginning on page 46.
• Began fund business in 1998; raised over $4.9 billion of equity
• CHC-RE has successfully executed 191 realizations with an equity weighted average IRR of 26% across five funds
• Crow Family Holdings committed $794 million, 16% of total equity
• Acquired/developed over $14.6 billion in gross asset value as of 4/1/2015
• Crow Holdings Capital Regulatory Assets Under Management as of 12/31/2014, $6.98 billion (5)
Vintage Year
Total equity raised (millions)
Percent Realized (1)
Average hold period (months) (2)
Projected fund IRR (gross) (4)
Projected fund multiple (gross) (4)
Cumulative net percentage returned
Fund I 1998 281 99% (3) 59 15% 2.0x 160%
Fund II 2000 365 100% 35 26% 1.7x 146%
Fund III 2003 596 100% 23 40% 1.9x 162%
Fund IV 2006 847 65% (3) 71 (3) 4% 1.3x 79%
Fund V 2008 952 58% 34 22% 1.8x 106%
Fund VI 2012 1,067 0% n/a 16% 2.0x n/a
Fund VII 2014 591 0% n/a n/a n/a n/a
Small Retail 2014 259 0% n/a n/a n/a n/a
Exhibit 10
All information as of April 1, 2015. ( ) Years with CHC and CHC affiliated entities.
Investment Committee
Anne Raymond (31) Dan Feeney (23)
Bob McClain (27) Kevin Bryant (18)
Carlos Rainwater (26) Dodge Carter (11)
Compliance
Kevin Bryant (18)
Conrad Morrison (3)
Portfolio Management / Investor Relations
Coe Juracek (17) Cyndy Silverthorn (8) Susan Elsener (6) Rachael Wildes (2)
Kristin Rouse (1) Cynthia Maus Ashley Hubbard
Real Estate
Bob McClain (27)
General Counsel
Kevin Bryant (18)
Capital Markets
Stan Mullikin (16)
Analysts
Michael Balcom (2) Josh Ash (1)
Jack Dowling (1) Kevin Fraker (1)
Dimitri Mastorakos (1) Paul Boldrick
Patrick Camporini Matt Gibson
Brian Hong Robbe McNabb
Jessie Dornak
Convenience Stores & Gas Station
Rodney Whitley (17)
Cyndy Silverthorn (8)
Christina Morrow (3)
Nathan Bennett (1)
Office Buildings
Carlos Rainwater (26)
Anna Graves (17)
Tamara Mills (15)
Ronna McAuley (7)
Kelley Siegel (14)
Anna Cooley (2)
Jason Haby
Retail Shopping Centers
Dan Feeney (23)
Anna Graves (17)
Tiffani Heidebrecht (16)
Tamara Mills (15)
Kelley Siegel (14)
Ronna McAuley (7)
Christina Morrow (3)
Anna Cooley (2)
Industrial Warehouse Buildings
Ben Doherty (17)
Kelley Siegel (14)
Matthew Colter (11)
Brice Hafner (4)
Ronna McAuley (7)
Nathan Bennett (1)
Hotels
Diane Parmerlee (23)
David Lee
Experienced Real Estate Group
4
Small Retail Fund
Sam Peck (7)
Jenny Wilkes (2)
Ryan Burkhead (1)
Kristin Millington
Hillary Taylor
Assets Owned Today 112
Low Ratio of Assets Per Person 2.1
Personnel Breakdown # Avg. Yrs.
Investment Committee 6 23
Product Leaders 6 20
Real Estate Group Total 52 8
Analysts Starting June 2015
1. Matt Murphy – SMU 5. Jimmy Wentworth – Boston College
2. Curry Clements – Vanderbilt 6. Madison Hufford – Vanderbilt
3. Anna Savage – A&M 7. Chase Furr – UNC
4. Jeff Eichenholz – Vanderbilt 8. Brian Cavanaugh - UT Austin
Multi-Family/ Apartments
Dodge Carter (11)
Gerry Hedgcock (12)
Daniel Branch (5)
Michael Hoy (4)
Chris Hammes (3)
Madeline Lewis (2)
Nathan Schubert (1)
Exhibit 10
Alignment: A significant level of alignment
5
Total capital84%
Crow Family
commitments
16%
»The Crow Family has invested $794 million in equity capital (2)
»Crow Family investments are treated identically to other LPs
» Same fees
» Same promotes
Total capital committed across funds: $4.9 billion (1)
% equity
(1) Figure reflects aggregate commitments across Funds I – VII and the Crow Holdings Retail Fund as of April 1, 2015. Fund VII commitments to date total $591 million. Crow Holdings Retail Fund commitments to date total $259 million
(2) Crow Family Holdings has committed $100 million to Fund VII and $20 million to the Crow Holdings Retail Fund.
Exhibit 10
Investment approach: CHC-RE invests across a diversified set of high opportunity markets
» More diversified economy
» More tenant demand
» Multiple high quality leasing and management service providers
» More favorable debt terms and availability
» Generally more constraints to new development
» More buyer interest on exit
6
San Francisco
Portland
Los Angeles
Phoenix
Denver
AustinHouston
Dallas
San Antonio
Atlanta
ChicagoNew York City
Washington, D.C.
Fund IV Fund V Fund VI
82 80 81
18 20 19
Percent equity committed in major markets: Funds IV – VI (1)
See endnotes on page 46.
Seattle
Florida Markets
Charlotte
Exhibit 10
Investment approach: CHC-RE overweights allocation to real estate asset classes with strong cash flows
Target allocation approach by sub-asset class% of equity
Target overweight asset classes:» Multi-family apartments» Retail shopping centers» Industrial warehouses» Convenience and gas stations
Typically characterized by:» less terminal value dependence» lower capital needs» stable cash flows» broad debt service coverage
Target underweight asset classes:» Office/medical buildings» Hotels
Typically characterized by:» more terminal value dependence» higher capital needs» less predictable cash flows» lower debt service coverage
7
The Fund has substantial flexibility when implementing its investment strategy; targeted investments, portfolio composition and investment strategy may change over time and there can be no assurance Fund objectives will be achieved.
70%
30%
Target Allocation %
Exhibit 10
Philosophy: Equity diversification
8
Number of Investments
Fund I 46
Fund II 48
Fund III 50
Fund IV 54
Fund V 53
Fund VI 59 (1)
» Average 52 Separate Investments per Fund across Funds I – VI
See endnotes on page 46.
» Generally individually financed and not cross-collateralized
Exhibit 10
Strategy: Previous allocations reflect CHC-RE’s ability to take advantage of opportunities within the marketplace.
Pro
duct
allo
cati
ons
(% e
quit
y)
Allocations approach by sub-asset class% equity
9
Multi-family apartment (1)
Industrial warehouse
Retail shopping center
Land development
Hotel
Office/medical building
Convenience & gas store
Fund I Fund II Fund III Fund IV Fund V Fund VI
10 21 31 55
17 37 14
19 5 23 18 10 12
20 11 10
0 0
12
9
7 8 7
8 4 3 3
24 26 276 2
44 18
7
0 0 0 0 120
51
» Groceryworks.com (Retail, Fund II) 2001
» Post-Lehman homeowners regulations (Multi-family, Fund V-VI) 2008
» Oil and gas sell-off and divestiture (Convenience & gas, Fund V) 2009
» Affordable Care Act (Office building, Fund VI) 2013
» Tenants in common ownership / CMBS assumption (Retail, Fund VII) 2014
See endnotes on page 46.
Structural Events:
Exhibit 10
Strategy: Apply a value-add “tool box” to attempt to increase each investments’ value
Value-creation techniques
Increase NOI
Fix something
Development
Find opportunities to increase NOI through active asset management
Invest in strategic property improvements to enhance desirability
Find opportunities to develop or expand a property below the cost to acquire it
» Rollover of leases with below market rates» Lease-up of vacancies
» New management & leasing teams (All)» Renovate/ reposition (All)» Remediate environmental issue (Shopping centers)» Extend short-term anchor lease (Shopping centers)» Replace bankrupt anchor (Shopping centers)» Buy from Tenants In Common owners (All)» Assume CMBS debt » New branding (Hotel)
» Build below cost to acquire» Expand under-utilized sites
10
Exhibit 10
11
Strategy: Capital Markets
» Focus on Debt Service Coverage Ratio
» Keep project level leverage appropriate
» Bias toward long-term fixed rate debt
» Minimize cross collateralization and debt guarantees
» Try to minimize CMBS issued debt
Exhibit 10
Underwritten Returns2013 OperatingPerformance Realized Actuals
Fund V 2014 Realizations (3)Hold Period (months)
Fund IRR (gross)
Fund Multiple (gross)
Hold Period (months)
Fund IRR (gross)
Fund Multiple (gross)2013 ROE
4Q2013DSCR
1. Whispering Pines Ranch 117 14% 2.9X 8% 1.8 34 22% 1.7X2. The Core 84 14% 2.2X 6% 1.8 40 26% 2.1X3. Eon at Lindbergh 36 18% 1.6X 9% 2.1 51 20% 1.7X4. Estates at Bellaire 84 13% 2.1X 12% 1.9 29 31% 1.8X5. Pavilion Townplace 120 14% 3.0X 11% 1.8 39 32% 2.3X6. The Pradera 114 16% 3.1X 11% 1.8 33 29% 1.9X7. Providence Uptown 84 13% 2.1X 10% 2.9 30 27% 1.7X8. Wyndchase Aspen Grove 112 14% 2.6X 10% 1.7 30 25% 1.7X9. N.Y. Exxon Portfolio 84 23% 2.8X 13% (1) N/A 41 35% 2.2X10. Chicago Exxon Portfolio 60 31% 2.5X 18% (1) N/A 44 39% 2.4X11. Mariposa Lofts 60 14% 1.8X 9% 2.4 30 37% 2.1X12. Northlake Commons 60 18% 2.0X 15% 1.9 35 29% 1.9X13. Whole Foods Center 100 16% 2.5X 11% 1.8 25 43% 2.0X14. Lonestar Industrial Portfolio 84 13% 2.0X 8% 2.0 32 34% 2.0X15. WesTech Village Corner 84 14% 2.2X 7% 1.9 31 23% 1.6X16. Briarcliff City Apartments 107 15% 2.6X 11% 2.7 32 22% 1.6X17. Montgomery Village Plaza 84 18% 2.5X 16% 3.4 41 36% 2.4X18. Terrawood Apartments 120 14% 2.8X 8% 1.5 49 14% 1.6X19. Artessa at Quarry Village 84 15% 2.2X 9% 2.0 39 19% 1.6X20. Legacy Heights 96 15% 2.5X 7% 1.8 52 15% 1.7X21. Scottsdale Horizon 63 14% 1.8X 8% 1.8 30 17% 1.4X22. Elizabeth Lofts 48 16% 1.7X N/A N/A 38 39% 2.5X
Underwritten & Realized Gross Returns
86 Months (2) 16% 2.4X 10% (2) 2.0x 35 Months (2) 28% 1.9X
12
Strategy: Structure for the long-term and monitor market trades
Structured for long-term hold High yieldHigh DSCR
Sell individually or in bulk to realize returns
Please see important notices at the end of this presentation regarding gross/net performance, Fund projections and endnotes beginning on page 46.
Exhibit 10
Comments:
» Huge capital inflows
» TIC owners & CMBS
» Consolidation
» Low recent supply
Example: Fund VI product allocation & Fund VII projected allocation
13
Product Type
Hotels
Office Buildings
Total
Final % of Total Fund V Commitments
90%
Final % of Total Fund VI Commitments (1)
86%
Fund VII Target Allocation (2)
Cas
h Fl
ow
Ori
ente
dT
erm
inal
Val
ue
Dri
ven
See endnotes on page 46.
9%
20%
51%
10%
8%
2%
100%
55%
18%
1%
12%
7%
7%
100%
30% - 40%
25% - 30%
1% - 5%
25% - 30%
5% - 10%
5% - 10%
100%
Multi-Family Apartments
Convenience & Gas
Industrial Warehouse
Shopping Centers
Exhibit 10
Value Add Acquisition (“Fix something”)
MULTI-FAMILY
Pavilion Townplace (Fund V)
14
Description
» 236 units in the Park Cities area of Dallas, TX
» $11.9M Fund V Equity (88% ownership)
» Acquisition: December 2010 ($168k / unit basis)
Opportunity
» Prior owner; non-multi-family management
» Rental rates not pushed
» $1.3M of common area upgrades needed
Results
» Experienced manager reduced expenses 29%
» 20% increase in rents
» Sold property in March 2014 – 39 month hold
» Exceeded underwritten returns on 10 year hold
» 5.5% exit cap rate – $237k / unit
Returns (1) Underwritten Realized
Gross Fund IRR 32%
Gross Fund Multiple 2.3X
14%
3.0X
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
15
Broadstone van Dorn (Fund VI)
MULTI-FAMILY
Description
» 184 units in Alexandria, VA
» $10.5M Fund VI Equity (95% ownership)
» Budgeted project cost - $30.0 million, $163k / unit
» Acquisition: October 2013
Opportunity» Convert from an extended stay hotel to multi-
family apartments
» Conduct a comprehensive renovation program
Exit Strategy» Achieve an exit cap of 5.5% in 60 months
» Sell asset in Sept. 2018 for $211k / unit
Projected Gross Fund Multiple 2.0X
Projected Returns as of December 31, 2014 (1)
Projected Gross Fund IRR 16%
Conversion/Renovation
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Extend Anchor Lease
SHOPPING CENTERS
16
Market At Parmer Lane (Fund VI)
Description
» 122,349 SF in Austin, TX
» $9.2M Fund VI equity (100% of ownership)
» Acquisition: October 2013, ($195 psf)
Opportunity
» Buy a grocery anchored center with strong sales
» HEB is the #1 grocer in Austin and South & Central Texas
» Renew and extend the HEB lease to achieve a lower exit cap rate
» Improve tenancy by adding national tenants
» Install new leasing team to lease vacancy and renew below market rents with existing tenants
Exit Strategy
» ~ 7 year hold (sell asset in June 2020)
» 6.0% exit cap rate
» $235 psf
Projected Gross Fund IRR 13%
Projected Gross Fund Multiple 2.0X
Projected Returns as of December 31, 2014 (1)
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Fix Something – Short Term Anchor Lease
SHOPPING CENTERS
Whole Foods Center (Fund V)
Gross Fund IRR 43%
Gross Fund Multiple 2.0X
17
Description
» 68,334 SF in Fort Collins, CO
» $5.9M Fund V equity (100% of ownership)
» Acquisition: August 2012, ($262 psf)
Opportunity
» Buy a Whole Foods anchored center in a town with a major college
» The 25,000 SF liquor store had a two-year lease with a market rate option
» Roll liquor store to market and sell or refinance the shopping center
Original Exit Strategy
» 8 year hold, 7.0% exit cap rate
Results» Sold asset in Sept. 2014 at a 5.8% exit cap rate —
$335 psf
» 25 month hold
Returns (1) Underwritten Realized
16%
2.5X
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
SHOPPING CENTERS
Wall Towne Center (Fund II)
18
Lease-Up Vacancy
Description
» 91,000 SF in Wall Township, NJ
» $5.8M Fund II equity (100% of ownership)
» Acquisition: February 2002, ($184 psf)
Opportunity
» Buy a center anchored by ShopRite, the dominant grocery store chain in the market, located in an affluent area.
» 98% of existing leases contained fixed bumps in rent during initial term.
» 94% leased at acquisition. Lease-up existing vacancy.
Results
» Sold asset in June 2004 (100% leased)
» 6.7% exit cap rate
» $263 psf
Gross Fund IRR 49%
Gross Fund Multiple 2.4X
Returns (1) Underwritten Realized
20%
2.1X
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Roll Leases to Market
19
Description
» Dallas, Texas Industrial Portfolio
» 667,702 square feet in 5 buildings
» $8.2M Fund V equity (96% ownership)
» Acquisition: August 2010, ($38 psf)
Opportunity
» Attractive $38 psf basis vs. seller’s $53 psf
» Infill location – excellent access & functionality
» 92% leased at acquisition – lease vacancy & roll rents up
Results
» Leased asset to 100% in 15 months
» Increased underwritten market rents
» Sold asset in December 2013 – 40 month hold
» 6.9% exit cap rate – $43 psf
INDUSTRIAL
Gross Fund IRR 20%
Gross Fund Multiple 1.7X
Valwood Metropolitan Portfolio (Fund V)
Returns (1) Underwritten Realized
15%
1.8X
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Lease-Up, Renovation & Rollover (“Increase NOI”)
20
Description
» 306,906 SF in the Downtown Financial District of Manhattan, NY
» $36.0M Fund IV equity (90% of ownership)
» Acquisition: June 2006, ($244 psf)
Opportunity
» Lease up vacancy (80% leased at below market rents and loss factors at acquisition)
» Roll tenants to market
» Use market loss factors to increase rentable SF
» Potential lobby expansion and lease-up additional retail space on Broadway
Results
» Grew NOI from $4.0M at acquisition to $8.0M at time of sale
» Sold in April 2014 for $157M
» 5.0% exit cap rate – $466 psf
OFFICE
Gross Fund IRR 14%
Gross Fund Multiple 2.3X
55 Broadway (Fund IV)
Returns (1) Underwritten Realized
15%
2.9X
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Development/Pre-Leased Medical Office (“Development)
21
Description
» Pre-leased hospital and spec medical office building in Ft. Worth, San Antonio and Austin
» Approximately 230,000 square feet per site
» Project Cost: Average $94.9M per site
» Fund VI Equity Commitment - $32.4M total (27-46% ownership)
Opportunity
» No Medicare/Medicaid reimbursement allows for physician ownership – reaction to affordable care act
» Hospital (145k-154k SF) is preleased for 20 years to physicians-owned/controlled private pay hospital group
» Medical office building (80k SF per site) is 25% leased for 10 years to same group
» Hospital built on 14% yield on cost, medical office building built on 10% yield on cost
OFFICE / MEDICAL OFFICE
SAN ANTONIO
AUSTIN
FT. WORTH
Projected Gross Fund IRR 25% - 29%
Projected Gross Fund Multiple 2.1X – 2.7X
Projected Returns as of December 31, 2014 (1)
Forest Park Medical (Fund VI)
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
22
Change Manager
Doubletree Hotel IAH (Fund IV)
Description
» 313 room hotel in Houston, TX
» Renovated and reflagged prior to acquisition
» Purchase Price: $42 million ($143k per key)
» $22.9M Fund IV equity (100% of ownership)
» Acquisition: July 2008
Opportunity
» Cash flowing asset in dynamic oil and gas market
» Assumed favorable debt on acquisition; purchased debt at discount prior to maturity and refinanced
» Changed manager to drive incremental revenue through more effective sales and yield management strategy
Results» Sold asset in December 2014 for $55M ($174k
per key).
HOTEL
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Gross Fund IRR 15%
Gross Fund Multiple 2.0X
Returns (1) Underwritten Realized
16%
2.2X
Exhibit 10
Investment Realization
23
Description
» 62 locations throughout New York
» $38.7M Fund V equity funded (Mezzanine)
» Acquisition: November 2010
Investment Update
» Capitol Petroleum was successful in refinancing the mezzanine position in March 2014 with senior syndication at M&T Bank and BMO, as well as a mezzanine loan with MSD Capital.
» Total Gross Profit: $46.7M
» Average Return on Equity: 17%
» Hold Period: 41 months
CONVENIENCE & GAS
New York Exxon Portfolio (Fund V)
Gross Fund IRR 35%
Gross Fund Multiple 2.2X
Returns (1) Underwritten Realized
23%
2.8X
(1) Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Fund VII
24
Closed Investment Location Product Type Acquisition DateFund VII Equity Commitment ($M)
Annapolis * Annapolis, Maryland Multi-Family December 14, 2014 $15
The Virage Houston, Texas Multi-Family December 16, 2014 $34
Acadian Village Baton Rouge, Louisiana Retail December 18, 2014 $11
West 79th * Phoenix, Arizona Industrial December 18, 2014 $8
Dwell at McEwen Franklin, Tennessee Multi-Family December 19, 2014 $27
Hanover Lantana * Austin, Texas Multi-Family January 29, 2015 $15
Esplanade III Phoenix, Arizona Office March 10, 2015 $27
Redlands Gateway Logistics Center * Redlands, California Industrial March 13, 2015 $27
360 GSW Global Logistics Center * Grand Prairie, Texas Industrial March 27, 2015 $18
Total VII Equity Commitments $184M
» $100M from Crow Family Holdings
» Commenced Investment Period December 10, 2014
» 9 acquisitions as of April 1, 2015
» $184 million of Fund VII equity committed to closed investments
» 7 investments in the pipeline, $187 million of additional Fund VII equity (1)
* Denotes that investment is a development project. (1) All assets in pipeline have been approved by Investment Committee. Projected equity commitments are subject to change and there can be no assurance that the investment will close as anticipated.
Exhibit 10
Fund VI – Investment Period Closed
IRR Multiple
Targeted Gross Returns Mid teens 2.0X
Targeted Net Returns (1) 10 - 11% 1.7X
» $1.067B of equity raised in 2012-2013
» $75M from Crow Family Holdings
» Commenced Investment Period November 1, 2012
» Terminated Investment Period December 10, 2014
» 59 deals, placing 95% of Fund VI equity (2)
» 85% of equity placed in Multi-Family, Industrial, Retail
Shopping Centers & Convenience and Gas
Fund VI Final Placement
25
34%
18%7%6%
3%1%
21%
6%4%
% Equity
Acquisitions (blues) 69%
Development (greens) 31%
Multi-Family
Retail
Hotel
Industrial
Office
Convenience & Gas
Multi-Family
Industrial
Office
Acquisitions: Development:
Please see endnotes on page 46.
Exhibit 10
Fund V: Market Driven Sales (32 of 52 Sold) (1)
26
MultipleIRR
22% 1.8XProjected Gross Returns (4)
15% 1.5XProjected Net Returns (2), (4)
» $952M of equity raised in 2007-2008
» $150M from Crow Family Holdings
» Closed investment period November 1, 2012
» Closed 53 transactions, 96% ($918M) of equity contributed to closed investments
» As of 4/1/2015, 33 sales (56% of contributed equity) generated a 32% gross IRR & a 2.0X gross multiple
» Net distributions as of 4/1/2015:
» $962M (approximately 106% of the total $908M contributed equity) (5)
» Current value of remaining investments as of 12/31/2014 - $460M, (114% of cost) (3)
» Due to unexpectedly improved market conditions, currently marketing 5 assets for sale (13% of contributed equity)
See endnotes beginning on page 46.
Exhibit 10
Fund IV: Well Positioned for Financial Crisis
27
MultipleIRR
4% 1.3XProjected Gross Returns (6)
2% 1.1XProjected Net Returns (1), (6)
» $847M of equity raised in 2005, $150M from Crow Family Holdings
» Capital placed 2006-2008
» As of 4/1/2015, realized 31 assets (57% of contributed equity)
» Marketing 1 asset for sale (1% of contributed equity)
» Net distributions to limited partners as of 4/1/2015:
» $626M (approximately 79% of the total $790M contributed equity) (2)
» Current value of remaining investments as of 12/31/14 - $227M (3), (86% of cost) (4)
» Well positioned for downturn
» 92% fixed rate or hedged debt in place (5)
» Reserved $110 million in Summer of 2008
See endnotes beginning on page 46.
Exhibit 10
Fund III: Portfolio Premium Realized in Sale to GE
28
MultipleIRR
40% 1.9XGross Realized Returns
29% 1.6XNet Realized Returns (1)
» $596M of equity raised in 2003
» $150M from Crow Family Holdings
» Capital placed 2003-2006
» Fund III sale closed January 12, 2007
» Sold into peak of market when there was a premium for large deals
» Generally underwrote a 7-10 year hold
» Average hold period of 23 months
» Large real estate team crucial for quick sale to GE Capital Corporation
(1) Net of management fees, partnership costs and carried interest. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Fund II: Cashed In On Groceryworks.com Mania
29
MultipleIRR
26% 1.7XGross Realized Returns
17% 1.5XNet Realized Returns (1)
» $365M of equity raised in 2000
» $75M from Crow Family Holdings
» Capital placed 2000-2003
» Placed heavily in retail shopping centers – 44% allocation, 21 retail shopping centers
» Generated a 40% gross IRR and a 2.0X gross cash multiple
» Average hold period, 26 months
(1) Net of management fees, partnership costs and carried interest. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Fund I: Managed Through 9/11 & NASDAQ Crash
30
MultipleIRR
15% 2.0XProjected Gross Returns (3)
11% 1.6XProjected Net Returns (1), (3)
» $281M of equity raised in 1998, $75M from Crow Family Holdings
» Capital placed 1998-2000
» Extended fund to February 2015
» Net cumulative distributions to limited partners as of 4/1/2015:
» $452M (approximately 160% of the total $281M contributed equity) (2)
» Kimpton MGMT Company realized January, 2015; generated 21% gross IRR and a 6.2x gross cash multiple
» One remaining asset: (1% unrealized based on equity invested) (4)
» Daniel Island (2.75X gross realized multiple and 19% gross realized IRR as of 12/31/14)
» Daniel Island sale anticipated April 2015; projected gross IRR of 20% and a 3.2x gross cash multiple See endnotes on page 46.
Exhibit 10
31
Initial fund target size
» $1.0 - $1.5 billion
Sponsorship » $100 million commitment from Crow Family Holdings
Investment focus
» To acquire or develop a diversified portfolio including multi-family apartments, industrial warehouses, shopping centers, hotels, office buildings, convenience and gas stations, and medical office buildings.
Fundraising timing
» First close: November 7, 2014
» Anticipated final close 4Q2015
Investment period
» Ten years (with 2 one-year extension options)
Term» Commencement Date: December 10, 2014
» Four year Investment Period
Fund structure
» 1.25% Mgmt Fee for a Commitment $100 million and greater
» 1.50% Mgmt Fee for a Commitment under $100 million
» 9% Preferred Return
» 20% Carried Interest, with 50/50 catch-up
» Clawback with guarantee
Terms: Fund VII Overview
Exhibit 10
Appendix: Funds I – VII Summary and Returns
32
Projected Returns as of 12/31/14
Fully Realized Returns as of 12/31/14
I II (1) III (1) IV V
Fund Size $281M $365M $596M $847M $952M $1.067B
Crow Family Holdings Equity $75M $75M $150M $150M $150M $75M
Year Raised 1998 2000 2003 2006 2008 2012-2013
Year Placed 1998-2000 2000-2003 2003-2006 2006-2008 2008-2012 2012-2014
Number of Transactions 41 41 42 54 53 60
No. of Transactions Remaining 1 0 0 21 19 60
Average Equity Per Investment $5M $8M $11M $15M $18M $17M
Gross IRR to the Fund 15% N/A N/A 4% 22% 16%
Net IRR to the Fund 11% N/A N/A 2% 15% N/A
Gross Multiple to the Fund 2.0X N/A N/A 1.3X 1.8X 2.0X
Net Multiple to the Fund 1.6X N/A N/A 1.1X 1.5X N/A
Gross IRR to the Fund 14% 26% 40% 6% 32% N/A
Net IRR to the Fund (2) 11% 17% 29% N/A N/A N/A
Gross Multiple to the Fund 1.7X 1.7X 1.9X 1.3X 2.0X N/A
Net Multiple to the Fund (2) 1.4X 1.5X 1.6X N/A N/A N/A
VI
See endnotes beginning on page 46.
$591M (4)
$100M
2014-2015
2014-TBD
9 (3)
N/A
$20M
VII
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Exhibit 10
1.64X (3)
1.46X
1.61X
1.05X (3)
1.47X (3)
Fund I99% Realized
Fund II100% Realized
Fund III100% realized
Fund IV65% Realized
Fund V58% Realized
(1)(1)
Funds I-V Net Multiples as of 12/31/2014
33
Realized value
Unrealized value
Assumes unrealized assets are realized at their 12/31/2014 fair value. Multiples are calculated using net distributions to limited partners (“realized value”), net asset value of the fund net of promote as of 12/31/2014 (“unrealized value”) and cumulative contributions including asset management fees. (1) Percent realized includes partial realizations. Information as of 4/1/2015. (2) Percent realized does not include Highland Park Village, a mezzanine loan that is now realized. Information as of 4/1/2015. (3) Figures are calculated using the net asset value of the Fund, net of promote, at 12/31/2014. Please note that year end figures are not yet final and are therefore subject to change.
(2)
Exhibit 10
Fund IV Net Multiple as of 12/31/2014
34
Realized value
Unrealized value
(1) Assumes unrealized assets were realized at their 12/31/2009 fair value. Multiples were calculated using net distributions to limited partners (“realized value”), net asset value of the fund as of 12/31/2009 (“unrealized value”) and cumulative contributions including asset management fees.
(2) Assumes unrealized assets are realized at their 12/31/2014 fair value. Multiples are calculated using net distributions to limited partners as of 12/31/2014 ($626M or “realized value”), net asset value of the fund net of promote as of 12/31/2014 ($203M or “unrealized value”) and cumulative contributions including asset management fees ($790M).
(3) Based on 12/31/2014 Fund IV asset plan.(4) Figures are calculated using the net asset value of the Fund at 12/31/2014. Please note that year end figures are not yet final and are therefore subject to change. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
0.61X
1.05X (4)1.11X
Low: 2009 Current: 2014 Projection:100% Realization by
2018
(1) (2)
(3)
Exhibit 10
Fund V Net Multiple as of 12/31/2014
35
Unrealized value
Realized value
(1) Assumes unrealized assets are realized at their 12/31/2014 fair value. Multiples are calculated using net distributions to limited partners as of 12/31/2014 ($959M or “realized value”), net asset value of the fund net of promote as of 12/31/2014 ($376M or “unrealized value”) and cumulative contributions including asset management fees ($908M).
(2) Based on 12/31/2014 Fund V asset plan.(3) Figures are calculated using the net asset value of the Fund at 12/31/2014. Please note that year end figures are not yet final and are therefore subject to change. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
1.47X (3)1.54X
Current: 2014 Projection:100% Realization by 2018
(1)
(2)
Exhibit 10
Funds I-VII Investment Summary
36
MULTI-FAMILY
Fund I Fund II Fund III Fund IV Fund V (3) Fund VI (3) Fund VII Total
Number of Transactions 4 6 11 15 26 25 4 91
Total Number of Units 1,484 1,870 3,859 5,243 8,628 7,771 1,278 30,133
Total Equity (1) $31M $37M $115M $251M $471M $557M $91M $1.6B
Percent Realized (1) 100% 100% 100% 58% (2) 51% 0% 0%
Gross Fund IRR on Realized Investments 12% 46% 37% 9% (4) 25% N/A N/A
Gross Fund Multiple on Realized Investments 1.7X 2.1X 1.6X 1.7X (4) 1.8X N/A N/A
Units Owned Today 2,235 3,630 7,771 1,278 14,914
RETAIL
Fund I Fund II Fund III Fund IV (2) Fund V Fund VI Fund VII Total
Number of Transactions 14 21 17 11 10 15 1 90
Total Square Footage 2.8M 2.9M 3.6M 0.9M 1.2M 1.9M 0.1M 13.4M
Total Equity (1) $46M $153M $199M $118M $79M $183M $11M $789M
Percent Realized (1) 100% 100% 100% 45% (3) 79% (4) 0% 0%
Gross Fund IRR on Realized Investments 20% 40% 37% 10% 37% (4) N/A N/A
Gross Fund Multiple on Realized Investments 1.8X 2.0X 1.8X 1.6X 1.8X (4) N/A N/A
(1) Based on equity invested for Funds I-III. Fund IV is based on equity commitments to closed investments but does not include Concord Park, an investment that failed to close representing $5.5M in commitments. Fund V, VI & VII are based on equity committed to closed investments.
(2) Does not include Concord Park, an asset that failed to close with all pursuit cost lost. Includes partially realized assets
(3) Includes For-Sale Housing investment in Sullivan Street (Fund V) & Mulberry North (Fund VI).(4) Does not include Concord Park.
(4) Does not include Highland Park Village a mezzanine loan, for which no equity was called and that generated $8M in profit, that is now realized.
Please see important notice at the end of this presentation regarding gross/net performance.
(1) Based on equity invested for Funds I-III and equity committed to closed investments for Funds IV-VII.(2) Includes the NNN Joint Venture, which consists of 21 convenience stores purchased through three transactions.(3) Includes partially realized investments
Exhibit 10
Funds I-VII Investment Summary
37
HOTEL
Fund I Fund II Fund III Fund IV Fund V Fund VI Total
Number of Transactions 10 3 1 4 2 2 22
Total Number of Rooms 1,946 1,915 1,729 1,197 721 772 8,280
Total Equity (1) $54M $38M $54M $57M $77M $73M $353M
Percent Realized (1) 100% 100% 100% 100% 0% 0%
Gross Fund IRR on Realized Investments 14% 22% 29% 7% (2) N/A N/A
Gross Fund Multiple on Realized Investments 2.6X 1.9X 2.0X 1.5X (2) N/A N/A
INDUSTRIAL
Fund I Fund II Fund III Fund IV Fund V Fund VI Fund VII Total
Number of Transactions 1 3 6 13 6 10 3 42
Total Square Footage N/A (1) 1.4M 9.3M 4.7M 5.4M 5.9M 2.2M 28.9M
Total Equity (2) $50M $17M $122M $150M $93M $126M $54M $612M
Percent Realized (2) 100% 100% 100% 48% (3) 71% 0% 0%
Gross Fund IRR on Realized Investments 18% 60% 50% 6% 34% N/A N/A
Gross Fund Multiple on Realized Investments 1.8X 1.7X 2.2X 1.3X 1.9X N/A N/A
(1) Based on equity invested for Funds I-III and equity committed to closed investments for Funds IV-VI.(2) Includes Dolce Atlanta – Peachtree, which was returned to the lender with all equity lost, Doubletree
Columbus, which was sold through a foreclosure sale with all equity lost, and Omni Royal Orleans where the Fund’s JV interest was sold to its JV partner.
Please see important notice at the end of this presentation regarding gross/net performance.
(1) Fund I investment was a private industrial REIT which at the sale date owned 36M square feet of real estate. Fund I invested $50M in the REIT which had a total of $1.5B of capital upon sale in December 2002.
(2) Based on equity invested for Funds I-III and equity committed to closed investments for Funds IV-VII.(3) Includes partially realized investments. Calculation as of 4/1/2015.
Exhibit 10
Funds I-VII Investment Summary
38
OFFICE
Fund I Fund II Fund III Fund IV Fund V Fund VI Fund VII Total
Number of Transactions 14 5 3 7 1 6 1 37
Total Square Footage 3.6M 1.4M 0.5M 2.2M 0.1M 1.2M 0.2M 9.2M
Total Equity (1) $62M $93M $33M $227M $17M $66M $27M $525M
Percent Realized (1) 100% 100% 100% 82%(2) 100% 0% 0%
Gross Fund IRR on Realized Investments 8% 0% 57% 4% 37% N/A N/A
Gross Fund Multiple on Realized Investments 1.3X 1.0X 1.7X 1.2X 1.8X N/A N/A
LAND
Fund I Fund II Fund III Fund IV Fund V Fund VI Total
Number of Transactions 2 3 4 4 0 0 13
Total Acres 1,857 2,659 3,148 101 0 0 7,765
Total Equity (1) $20M $13M $15M $25M $0M $0M $73M
Percent Realized 82% 100% 100% 100%(3) N/A 0%
Gross Fund IRR on Realized Investments 32% (2) 21% 76% - (3) N/A N/A
Gross Fund Multiple on Realized Investments 1.2X (2) 1.7X 1.9X 0.0X (3) N/A N/A
(1) Based on equity invested for Funds I-III and equity committed to closed investments for Funds IV-VI.(2) Includes partially realized investments. Calculation as of 4/1/2015.
(1) Based on equity invested for Funds I-III and equity committed to closed investments for Funds IV-VI. (2 ) Does not include Daniel Island because the asset has not been fully realized.
(3) All four investments were deeded back to the lenders by the investments’ General Partners, where all equity was lost.
Please see important notice at the end of this presentation regarding gross/net performance.
Exhibit 10
Appendix: Fund IV Investments
39
All metrics presented for realized investments reflect gross realized returns to the Fund. All metrics presented for unrealized investments reflect projected gross returns to the Fund, calculated as of December 31, 2014. See endnotes on page 46. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross
Fund Multiplegross
Realized / Unrealized
Dolce Atlanta-Peachtree (1) Hotel Atlanta, GA 233 $15.8 N/A 0.0x Realized
Doubletree Columbus/Worthington (1) Hotel Columbus, OH 306 $8.2 N/A 0.2x Realized
Doubletree Hotel IAH Hotel Houston, TX 313 $22.9 14.5% 2.0x Realized
Omni Royal Orleans Hotel New Orleans, LA 345 $10.4 25.4% 3.4x Realized
Amwiler-Gwinnett Industrial Park Industrial Atlanta, GA 435,535 $10.4 0.1% 1.0x Unrealized
Bethel Business Center Industrial Dallas, TX 162,650 $4.3 18.9% 2.7x Realized
Collington Center Industrial D.C. Metro (Bowie, MD) N/A $15.5 3.8% 1.2x Unrealized
Grand Lakes Distribution Center Industrial Dallas, TX 636,248 $17.7 - 0.8x Realized
Lakeview Business Park Industrial Houston, TX 240,959 $10.6 12.7% 1.8x Unrealized
Manana Truck Center Industrial Dallas, TX 67,500 $10.4 0.1% 1.0x Unrealized
Mark IV Truck Center Industrial Fort Worth, TX 67,500 $7.9 N/A 0.0x Unrealized
MK Industrial Portfolio Industrial Atlanta, GA 1,541,630 $24.6 4.1% 1.4x Unrealized
Penn Warner Industrial Philadelphia, PA 240,000 $6.4 - 0.5x Unrealized
South Kitchener Industrial Park Industrial Toronto, Ontario 327,000 $23.8 3.2% 1.1x Realized
The Pines Business Park Industrial Houston, TX 140,075 $2.7 36.0% 2.5x Realized
Trinity Overlook at GSW Industrial Dallas, TX 305,000 $5.4 12.9% 1.8x Realized
Westpark Industrial Park Industrial Orlando, FL 535,385 $10.8 - 0.6x Unrealized
Beacon Island (1) Land Houston, TX 35 $12.6 N/A 0.0x Realized
Quality Inn (3) Land Dallas, TX 5 $0.0 - 0.3x Realized
South Shore Waterfront (1) Land Houston, TX 26 $5.6 N/A 0.0x Realized
Versante Canyon Homes (1) Land Austin, TX 35 $6.8 N/A 0.0x Realized
Alta Woods Multi-Family Atlanta, GA 498 $30.0 6.5% 1.4x Realized
Aluna Largo Multi-Family Tampa/Clearwater, FL 288 $11.0 - 0.9x Unrealized
Casa Los Pinos (1) Multi-Family Atlanta, GA 386 $6.6 N/A 0.0x Realized
Concord Park (2) Multi-Family Charleston, SC N/A $5.5 N/A N/A Not Applicable
Crest at Lone Tree Multi-Family Denver, CO 400 $18.5 9.18% 1.9x Realized
Exhibit 10
Appendix: Fund IV Investments Continued
40
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross
Fund Multiplegross
Realized / Unrealized
Equinox Multi-Family Houston, TX 304 $15.7 8.9% 1.9x Unrealized
Estates at Memorial Heights Multi-Family Houston, TX 437 $17.1 16.8% 2.6x Realized
Mosaic at Mueller Multi-Family Austin, TX 441 $22.8 9.6% 1.9x Unrealized
Notting Hill Multi-Family Chapel Hill, NC 200 $8.0 5.4% 1.5x Realized
Post Collier Hills Multi-Family Atlanta, GA 396 $16.7 4.5% 1.4x Unrealized
Post Crest Multi-Family Atlanta, GA 410 $14.9 0.2% 1.0x Unrealized
Post Lindbergh Multi-Family Atlanta, GA 396 $20.0 1.4% 1.1x Unrealized
Preserve at Rolling Oaks Multi-Family Austin, TX 494 $13.2 7.5% 1.7x Realized
Ridglea Village Multi-Family Fort Worth, TX 253 $7.5 9.8% 1.8x Realized
Riverfront Village Multi-Family Beaver Creek, CO N/A $36.2 - 0.2x Unrealized
Thorncroft Farms Multi-Family Portland, OR 340 $13.0 10.6% 2.0x Realized
370 Lexington Office New York City, NY 273,063 $30.9 32.4% 1.8x Realized
55 Broadway Office New York City, NY 338,466 $36.0 14.0% 2.3x Realized
90 K Street Office Washington, D.C. 412,661 $72.6 4.6% 1.3x Unrealized
DaVinci Court Office Atlanta, GA 77,038 $6.4 6.6% 1.4x Realized
Marnell Corporate Center Office Las Vegas, NV 176,959 $26.4 - 0.5x Realized
Pecan Park Office Austin, TX 272,888 $19.9 - 0.6x Realized
Royal Centre Office Atlanta, GA 623,060 $34.5 N/A 0.3x Realized
2929 Oak Lawn Avenue Retail Dallas, TX 25,632 $6.5 13.9% 1.8x Realized
Backlick Plaza Retail D.C. Metro (Springfield, VA) 85,940 $7.1 12.5% 2.2x Unrealized
Conroe Marketplace Retail Houston, TX 298,232 $15.8 8.9% 2.0x Unrealized
Downing Center Retail San Jose, CA 71,861 $10.0 2.7% 1.2x Realized
Fremont Retail San Francisco, CA 118,365 $22.4 6.0% 1.6x Unrealized
North Ranch Gateway Retail Los Angeles, CA 86,582 $17.0 - 0.8x Unrealized
NRP - NNN Retail Properties Fund I Retail Various Locations, USA 115,614 $28.5 15.6% 1.8x Realized
St. Helena Plaza Retail Napa County, CA 10,800 $1.3 5.3% 1.6x Unrealized
Westgate North Retail Tacoma, WA 62,229 $7.9 3.3% 1.3x Realized
All metrics presented for realized investments reflect gross realized returns to the Fund. All metrics presented for unrealized investments reflect projected gross returns to the Fund, calculated as of December 31, 2014. See endnotes on page 46. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Appendix: Fund V Investments
41
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross
Fund Multiplegross
Realized / Unrealized
Brooklyn/Staten Island Exxon Portfolio Convenience & Gas Staten Island, Brooklyn 35 $10.1 31.7% 2.0x Realized
Chestnut Petroleum Portfolio Convenience & Gas Various, New Jersey 67 $27.5 20.6% 2.4x Unrealized
Chicago Exxon Portfolio Convenience & Gas Chicago, IL 89 $28.7 38.5% 2.4x Realized
DC/Northern Virginia Exxon Portfolio Convenience & Gas Washington, DC Metro 57 $41.0 33.1% 2.2x Realized
Fairfax Exxon Portfolio Convenience & Gas Various, Northern Virginia 29 $25.9 40.1% 2.1x Realized
K&G Petroleum Portfolio Convenience & Gas Las Vegas, NV 11 $9.8 28.6% 2.3x Unrealized
New York Exxon Portfolio Convenience & Gas Manhattan, Bronx, Queens 72 $38.7 39.8% 2.2x Realized
Hilton Alexandria Mark Center Hotel Alexandria (DC Metro), VA 496 $51.8 N/A 0.3x Unrealized
Westin Annapolis Hotel Annapolis, MD 225 $25.3 13.3% 1.9x Unrealized
Granite Commerce Center Industrial Phoenix, AZ 407,461 $9.5 8.4% 1.3x Unrealized
Lonestar Industrial Portfolio Industrial Dallas Metro/Houston Metro 1,231,351 $22.2 33.7% 2.0x Realized
Nashville Industrial Portfolio Industrial Nashville, TN 1,778,400 $25.3 43.0% 2.0x Realized
Tualatin Corporate Center Industrial Portland, OR 401,680 $10.7 35.1% 2.1x Realized
Valwood Metropolitan Portfolio Industrial Dallas, TX 667,702 $8.2 20.5% 1.6x Realized
Woodland Business Park Industrial Charlotte, NC 944,339 $16.9 14.0% 1.6x Unrealized
Artessa at Quarry Village Multi-Family San Antonio, TX 280 $31.7 18.9% 1.6x Realized
Bell Channelside Multi-Family Tampa, FL 422 $15.0 18.0% 1.8x Unrealized
Bell Riverside Multi-Family Jacksonville, FL 257 $7.8 16.1% 1.6x Unrealized
Briarcliff City Apartments Multi-Family Kansas City, MO 263 $15.9 22.1% 1.6x Realized
Elizabeth Lofts Multi-Family Charlotte, NC 366 $12.7 39.5% 2.6x Realized
Eon at Lindbergh Multi-Family Atlanta, GA 352 $16.5 20.5% 1.7x Realized
Eon at Maple Multi-Family Dallas, TX 300 $8.0 42.4% 1.9x Realized
Estates at Bellaire Multi-Family Houston, TX 385 $18.0 31.1% 1.8x Realized
Falcon Ridge Multi-Family Austin, TX 296 $11.8 17.1% 1.7x Unrealized
Gramercy Park Portfolio Multi-Family New York City, NY 208 $30.5 13.5% 1.6x Unrealized
Legacy Heights Multi-Family San Antonio, TX 306 $11.3 14.9% 1.7x Realized
All metrics presented for realized investments reflect gross realized returns to the Fund. All metrics presented for unrealized investments reflect projected gross returns to the Fund, calculated as of December 31, 2014. See endnotes on page 46. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Appendix: Fund V Investments Continued
42
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross
Fund Multiplegross
Realized / Unrealized
Mariposa Lofts Multi-Family Atlanta, GA 253 $13.9 37.3% 2.1x Realized
Park & Market Multi-Family Raleigh, NC 409 $26.0 15.2% 1.7x Unrealized
Pavilion Townplace Multi-Family Dallas, TX 236 $11.9 31.9% 2.3x Realized
Providence Uptown Multi-Family Houston, TX 420 $20.2 26.9% 1.7x Realized
Stoneridge Multi-Family Ashburn (DC Metro), VA 630 $43.8 9.9% 1.5x Unrealized
Sullivan Street Multi-Family New York City, NY 25 $35.1 25.2% 2.3x Unrealized
Terrawood Apartments Multi-Family Grapevine (DFW Metro), TX 291 $13.2 13.7% 1.6x Realized
The Ava Multi-Family Houston, TX 321 $20.8 7.1% 1.3x Unrealized
The Core Multi-Family Houston, TX 326 $19.0 26.4% 2.1x Realized
The Glen at Lauderhill Multi-Family Fort Lauderdale, FL 405 $7.3 8.9% 1.8x Unrealized
The Pradera Multi-Family Dallas, TX 360 $14.5 29.4% 1.9x Realized
The Preserve on Fredericksburg Multi-Family San Antonio, TX 376 $16.3 8.7% 1.4x Unrealized
The Standard Multi-Family Dallas, TX 281 $16.5 15.8% 1.8x Unrealized
Whispering Pines Ranch Multi-Family Houston, TX 300 $11.6 22.5% 1.7x Realized
Wyndchase Aspen Grove Multi-Family Nashville, TN 560 $22.1 25.2% 1.7x Realized
1755 Blake Street Office Denver, CO 112,928 $16.9 36.6% 1.8x Realized
Blalock Shopping Center Retail Houston, TX 72,762 $3.1 12.7% 1.5x Unrealized
Highland Park Village (1) Retail Dallas, TX 248,615 $0.0 N/A N/A Realized
Montgomery Village Plaza Retail Gaithersburg (DC Metro), MD 116,134 $9.4 36.2% 2.4x Realized
Northlake Commons Retail Charlotte, NC 78,839 $8.5 29.4% 1.9x Realized
Scottsdale Horizon Retail Scottsdale, AZ 154,766 $15.4 17.8% 1.4x Realized
Town & Country Village Retail Palo Alto, CA 174,403 $13.7 28.9% 2.3x Unrealized
Westbank Market Retail Austin, TX 138,422 $9.2 102.5% 1.8x Realized
WesTech Village Corner Retail Silver Spring (DC Metro), MD 41,261 $7.9 23.1% 1.6x Realized
Whitestone Plaza Retail New York City, NY 62,000 $5.8 24.9% 1.6x Realized
Whole Foods Center Retail Fort Collins, CO 68,334 $5.9 43.0% 2.0x Realized
All metrics presented for realized investments reflect gross realized returns to the Fund. All metrics presented for unrealized investments reflect projected gross returns to the Fund, calculated as of December 31, 2014. See endnotes on page 46. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Appendix: Fund VI Investments
43
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross
Fund Multiplegross
Realized / Unrealized
Cumberland Farms Convenience & Gas Various, NJ, DE, PA 27 $6.5 23.2% 1.6x Unrealized
Brown Palace & Holiday Inn Express Hotel Denver, CO 472 $49.9 20.4% 2.1x Unrealized
Cool Springs Marriott Hotel Franklin (Nashville), TN 300 $22.9 15.6% 1.7x Unrealized
10 West Logistics Center Industrial Phoenix, AZ 1,227,000 $23.5 19.1% 1.5x Unrealized
Carter Distribution Center Industrial Ft. Worth, TX 615,005 $10.7 14.4% 1.6x Unrealized
Frisco Commerce Center Industrial DFW Metro (Frisco, TX) 280,545 $11.9 15.5% 2.0x Unrealized
Highwoods Industrial Portfolio Industrial Atlanta, GA 1,676,588 $27.7 14.1% 2.1x Unrealized
International Crossing Industrial Charlotte, NC 277,000 $5.0 20.5% 1.5x Unrealized
Mountain Creek Industrial Dallas, TX 1,234,000 $21.4 15.7% 1.7x Unrealized
Nantucket Storage (1) Industrial Nantucket, MA 93,921 $7.8 15.6% 1.9x Unrealized
Satellite North Industrial Atlanta, GA 144,184 $2.9 19.1% 1.9x Unrealized
Turnpike Park Industrial Miami, FL 136,500 $5.7 23.0% 1.5x Unrealized
Tuscany Industrial Austin, TX 244,019 $9.6 14.5% 2.1x Unrealized
2400 Charlotte Multi-Family Nashville, TN 279 $16.2 18.3% 1.8x Unrealized
45 Madison Multi-Family Kansas City, MO 132 $8.3 13.6% 2.5x Unrealized
910 Texas Street Multi-Family Dallas, TX 420 $20.0 13.2% 1.7x Unrealized
Alta Warner Multi-Family Woodland Hills, CA 298 $37.5 13.6% 2.2x Unrealized
Aventine at Town Center Multi-Family Jacksonville, FL 320 $16.1 14.2% 2.1x Unrealized
Broadstone Citrus Multi-Family Tampa, FL 296 $12.7 13.7% 2.5x Unrealized
Broadstone Parkway Multi-Family Dallas, TX 333 $14.2 13.2% 2.6x Unrealized
Broadstone Van Dorn Multi-Family D.C. Metro (Alexandria, VA) 184 $10.4 15.9% 2.0x Unrealized
Citylake Multi-Family Houston, TX 319 $16.6 13.6% 2.0x Unrealized
Cityline Apartments Multi-Family Richardson, TX 532 $19.0 18.5% 1.7x Unrealized
EaDo Multi-Family Houston, TX 311 $13.7 18.7% 1.8x Unrealized
Elan Tysons West Multi-Family Fairfax, VA 400 $43.9 16.9% 1.9x Unrealized
Freestone Multi-Family D.C. Metro (Woodbridge, VA) 420 $17.3 17.6% 1.9x Unrealized
Grigio Metro Multi-Family Tempe, AZ 408 $17.2 13.7% 2.1x Unrealized
Hanover Buckhead Multi-Family Atlanta, GA 375 $29.0 17.4% 1.8x Unrealized
Mulberry North Multi-Family New York City, NY 76 $57.5 24.0% 2.1x Unrealized
Mulberry South Multi-Family New York City, NY 96 $36.0 13.1% 1.7x Unrealized
All metrics presented for unrealized investments reflect projected gross returns to the Fund, calculated as of December 31, 2014. See endnotes on page 46. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
Appendix: Fund VI Investments Continued
44
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross
Fund Multiplegross
Realized / Unrealized
Paseo at Bee Cave Multi-Family Austin, TX 293 $14.8 11.5% 1.8x Unrealized
Pavilion at Lake Eve Multi-Family Orlando, FL 264 $13.5 13.1% 2.2x Unrealized
Pavilions on Central Multi-Family Phoenix, AZ 254 $19.2 13.4% 2.0x Unrealized
Post Rice Lofts Multi-Family Houston, TX 306 $35.7 13.9% 2.0x Unrealized
Suite 2801 Multi-Family Colleyville, TX 417 $20.7 13.5% 2.0x Unrealized
The Edge at Fairfax Corner Multi-Family D.C. Metro (Fairfax, VA) 460 $40.0 12.0% 2.6x Unrealized
Waterside Multi-Family Ft. Worth, TX 374 $18.5 17.8% 1.8x Unrealized
West Inman Lofts Multi-Family Atlanta, GA 204 $9.0 13.3% 2.9x Unrealized
304 Inverness Office Denver, CO 134,968 $7.7 14.5% 1.8x Unrealized
Forest Park Medical Office Office San Antonio, TX 234,000 $8.3 25.2% 2.4x Unrealized
Forest Park Medical Office Office Ft. Worth, TX 229,567 $10.1 27.2% 2.1x Unrealized
Forest Park Medical Office Office Austin, TX 225,000 $13.5 28.6% 2.7x Unrealized
One51 Office San Antonio, TX 101,181 $5.2 20.5% 1.9x Unrealized
Stonecreek I & II Office Austin, TX 239,819 $20.9 14.8% 2.0x Unrealized
Boardwalk Shopping Center Retail Austin, TX 184,598 $8.1 14.5% 2.1x Unrealized
Camelback Center Retail Phoenix, AZ 32,963 $6.2 14.9% 1.9x Unrealized
Collier Town Square Retail Pittsburgh, PA 63,445 $5.4 16.6% 2.2x Unrealized
Crossroads Retail Naples, FL 126,895 $10.5 13.4% 2.0x Unrealized
Cypress Center Retail Cypress, CA 46,047 $6.4 14.1% 2.8x Unrealized
Fairfax Retail Portfolio Retail D.C. Metro (Fairfax, VA) 48,669 $15.7 14.7% 1.7x Unrealized
Festival at Bellaire Retail Bel Air, Maryland 437,227 $36.2 13.8% 2.1x Unrealized
Lake Mary Village Retail Orlando, FL 106,189 $9.2 13.5% 2.0x Unrealized
Market at Parmer Retail Austin, TX 122,349 $9.2 12.7% 2.0x Unrealized
Neapolitan Way Retail Naples, FL 137,646 $14.1 13.8% 2.0x Unrealized
Preston Center Pavilion & Square Retail Dallas, TX 230,842 $26.5 13.7% 1.7x Unrealized
Retail at Midtown Retail D.C. Metro (Reston, VA) 17,473 $6.2 13.4% 1.7x Unrealized
Riverlakes Village Retail L.A. Metro (Bakersfield, CA) 92,211 $6.7 13.7% 2.1x Unrealized
Village at Townpark Retail Atlanta, GA 64,703 $6.6 14.4% 1.7x Unrealized
Wood Ridge Plaza Retail Houston, TX 211,673 $15.9 16.2% 1.8x Unrealized
All metrics presented for unrealized investments reflect projected gross returns to the Fund, calculated as of December 31, 2014. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
45
Appendix: Fund VII Investments:
Transaction Product Type Location#SF / Units / Gas Stations / Acres
Equity Commitment $M
Fund IRRgross (1)
Fund Multiplegross (1)
Realized / Unrealized
Annapolis Multi-Family Annapolis, MD 236 $15.3 17.3% 1.8x Unrealized
The Virage Multi-Family Houston, TX 372 $34.0 13.0% 2.7x Unrealized
Dwell Multi-Family Franklin (Nashville), TN 370 $26.6 13.2% 2.6x Unrealized
Hanover Lantana Multi-Family Austin, TX 300 $15.3 17.9% 1.8x Unrealized
Acadian Village Retail Baton Rouge, LA 79,920 $11.4 13.9% 2.6x Unrealized
West 79th Industrial Phoenix, AZ 378,645 $8.4 15.3% 1.8x Unrealized
Redlands Gateway Logistics Center Industrial Redlands, CA 927,798 $27.3 14.8% 1.9x Unrealized
360 GWS Global Logistics Center Industrial Grand Prairie, TX 926,720 $18.4 15.4% 1.8x Unrealized
Esplanade III Office Phoenix, AZ 218,266 $27.0 13.9% 2.0x Unrealized
(1) Metrics presented for Fund VII investments reflect underwritten returns at time of acquisition. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Exhibit 10
46
Footnotes
Page 3 (1) Based on equity invested for Funds I-III and equity committed to closed investments for Funds IV and V.
Page 3 (2) Represents average hold period for fully realized assets.
Page 3 (3) Calculation includes partial realizations.
Page 3 (4) Please see important notices at the end of this presentation regarding gross/net performance and Fund projections.
Page 3 (5) Real Estate Net Assets Under Management as of 12/31/14, $2.3 billion.
Page 13 (1) On December 10, 2014, the General Partner terminated the Fund VI Investment Period. Fund VI equity commitments to closed investments total $1,011 million. Page 13 (2) The Funds have substantial flexibility when implementing their investment strategy; targeted investments, portfolio composition and investment strategy may change over time and there can be no assurance Fund objectives will be achieved.
Page 12 (1) Reflects 2013 actual yield on cost. Page 12 (2) Average of listed assets.Page 12 (3) In 2014, Fund IV realized 10 investments, representing $182M of contributed equity. These 10 realizations generated an 8% IRR & a 1.6x cash multiple (gross to the Fund).
Page 6 (1) Includes major markets and surrounding areas. As of 4/1/2015, major markets & surrounding areas represent 81% of Fund IV, Fund V, and Fund VI commitments. Percent based on equity commitments to closed investments. Florida markets included in calculation: Orlando (Funds IV & V), Tampa (Funds IV, V & VI) & Miami (Fund VI).
Page 9 (1) Fund V Multi-Family includes the For-Sale Housing development investment in Sullivan Street (NYC Greenwich Village Condos). Fund VI Multi-Family includes the For-Sale Housing development investment in Mulberry North (in New York City).
Page 26 (1) Generally underwrite 7-10 year holds. Page 26 (2) Net of management fees, partnership costs and carried interest. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Page 26 (3) Values are estimated and based on internal valuations of each underlying real estate project. The valuations are based on, among other things, tenant lease terms and various assumptions as to future events, including assumptions regarding future property rentals, room rates, property operating expenses, vacancies, sales proceeds, capitalization rates, and risk-adjusted discount rates. Variations between assumptions and actual future events may occur and may be material. Please note that December 13, 2014 valuations are not yet final and are therefore subject to change.
Page 8 (1) On 12/10/14, the General Partner terminated the Fund VI Investment Period. Fund VI closed with 59 investments total.
Page 25 (1) Net of management fees, partnership costs and carried interest. Please see important notice at the end of this presentation regarding gross/net performance and Fund projections.
Page 25 (2) Assuming approximately 5% of total Fund VI commitments in reserves ($56M), Fund VI is 100% placed.
Exhibit 10
47
Footnotes
Page 42 (1) Highland Park Village provided CHRP V with the opportunity to finance a $40 million mezzanine loan at an interest only rate of 12%. The capital for the mezzanine loan was provided utilizing the CHRP V Line of Credit in lieu of calling equity. The investment generated $8 million in profit
Page 39 (1) Investment was returned to the lender in a foreclosure or a deed in lieu of foreclosure. Page 39 (2) Equity committed to a deal in advance of closing. Investment did not close. Page 39 (3) 100% of CHRP IV’s $6.5 million investment in Quality Inn was carried on the CHRP IV Line of Credit in lieu of calling equity. Investment was sold to a multi-family developer resulting in 33% of CHRP IV’s investment in the asset being returned.
Page 32 (1) Funds II and III are fully realized.
Page 32 (2) Due to the small number of realized transactions in Funds IV and V, determination of the net IRRs and net multiples is not yet meaningful. Fund VI and Fund VII do not have any realized transactions.
Page 32 (3) Fund transactions as of 4/1/2015.
Page 32 (4) Reflects equity raised for Fund VII as of 4/1/2015.
Page 27 (1) Net of management fees, partnership costs and carried interest. Please see important notice at the end of this presentation regarding gross/net performanceand Fund projections.Page 27 (2) Contributed equity includes asset management fees.Page 27 (3) Figure includes Collington and MK NQ, a portion of which are held through a note receivable.Page 27 (4) Values are estimated and based on internal valuations of each underlying real estate project. The valuations are based on, among other things, tenant lease terms and various assumptions as to future events, including assumptions regarding future property rentals, room rates, property operating expenses, vacancies, sales proceeds, capitalization rates, and risk-adjusted discount rates. Variations between assumptions and actual future events may occur and may be material. Please note that December 13, 2014 valuations are not yet final and are therefore subject to change. Page 27 (5) Percent fixed or hedged as of 12/31/2008.Page 27 (6) Projections are as of the 12/31/2014 asset plan.
Page 43 (1) Investment was acquired on February 27, 2014. Metrics presented reflect underwritten returns at the time of acquisition.
Page 30 (1) Net of management fees, partnership costs and carried interest. Please see important notice at the end of this presentation regarding gross/net performanceand Fund projections.Page 30 (2) Contributed equity includes asset management fees.Page 30 (3) Projections are as of the 12/31/2014 asset plan.Page 30 (4) Kimpton Management Company was realized in January of 2015. A portion of the sales proceeds were escrowed at closing to cover post closing costs andliabilities associated with reps and warranties. This amount will be outstanding until January of 2017.
Page 26 (4) Projections are as of the 12/31/2014 asset plan. Page 26 (5) Contributed equity includes asset management fees.
Exhibit 10
Notice
48
» Please also read Disclaimers at the front of these materials for other important disclosures regarding projections and the information contained herein.
Important Note Regarding Property-Level and Fund-Level Projections:
» All projections in this presentation are as of 12/31/2014, unless otherwise indicated. Projections are prepared for each investment as part of producing a semi-annual Asset Plan. Asset Plans are updated semi-annually and are used internally to assess the investment’s performance and assist in strategic planning. Each Asset Plan includes the investment’s transaction details, including any financing, and projects net operating income throughout the investment’s anticipated hold period. Asset Plans also project an investment’s total return (property-level internal rate of return and multiple) at the anticipated disposition date based on the assumed net operating income and capitalization rate at the time of sale. As discussed more fully below, the projected property-level total return is based on certain assumptions that, while reviewed semi-annually for reasonableness, maynot prove to be accurate. Neither the Asset Plan nor the projected performance or terminal value has been reviewed by independent parties.
» Each semi-annual Asset Plan includes a revised projected net operating income and cash flow, which is based on the latest annual budget for the investment. The annual budget is usually prepared in the fourth quarter of the prior year but is adjustedfor material changes in market conditions before the Asset Plan is finalized. The investment’s internal rate of return and multiple are then calculated using actual cash flow to date and revised estimated net operating income, exit capitalization rateand holding period.
» Projected fund-level returns are calculated by aggregating the projected returns of individual investments with the total estimated Fund expenses, including asset management fees, and General Partner carried interest, if applicable, when the returns are shown net of fees.
» Asset Plans and accompanying property-level projected returns are typically only calculated twice a year. Because capitalization rates and an investment’s net operating income can vary, projected returns based on the estimated net operating income may change or become outdated before the Asset Plan’s next semi-annual update. Additionally, it is difficult to accurately predict total Fund expenses. As such, these projected returns should not be relied upon. Actual results will vary and may be materially different than these projections, which are provided for informational purposes only.
Exhibit 10
Disclaimer
49
Important Note Regarding Gross IRR and Multiples:
» Unless stated otherwise, the gross IRR and gross multiple data provided in this presentation are calculated based upon the actual timing of investment inflows and outflows (without regard to the actual timing of contributions from Partners) and calculated using the total realized proceeds the Funds received, or are projected to receive, and does not take into account any asset management fees, fund expenses, fund carried interest, and as applicable, any REIT-related expenses. Prospective investors should note that the net proceeds ultimately realized by limited partners will be less than the gross amount realized by the Funds because of asset management fees, fund expenses, fund carried interest, and, for investors in the REITs, the additional REIT-related expenses. Property or portfolio level gross IRR and gross multiple do not include investment vehicle and other non-property level expenses. The net proceeds ultimately realized by the Funds will be less than the gross amount realized for the property or portfolio. Asset management fees and the General Partner carried interest are detailed in each Funds’ PPM and in CHC-RE’s Part 2A of Form ADV.
» For example assume a fund with $500 million of commitments with those commitments contributed from partners evenly over a four year investment period with a ten year fund life, with sales of investments and distributions of those sales proceeds evenly over the final three years of the fund’s life. Also assume management fees are 1.5% per annum based on commitments during the investment period and based on commitments in respect of investments not disposed of or completely written off after the investment period, with no investments completely written off prior to disposition, and these management fees are contributed from investors during the investment period and paid out of distributions after the investment period. If the investments of the fund generate a 6% annual operating cash return that is distributed to investors as generated, and the fund has operating expenses of $1 million per year, a fund gross IRR of 16% with the general partner receiving total carried interest of 20% of the total profits of the fund at the termination of the fund would result in a net IRR to the limited partners of approximately 11.75%.
Important Note Regarding Fund Projections:
» The projected information set forth in this presentation is based on the most recent underwriting analysis of each of the Funds’ assets presented to CHC-RE’s Investment Committee. The ability of the Funds to achieve these projections depends on many factors beyond the General Partner’s control, including, without limitation: (i) changes in general economic conditions; (ii) a ready market for the Fund’s assets at the current anticipated sale date, including competing properties in an area; (iii) changes in interest rates; (iv) changes to land-use and zoning restrictions; and (v) the financial condition of tenants, including the ability to attain expected occupancy rates. Markets for Fund investments can also change rapidly and capitalization rates vary materially over time, are generally sensitive to interest rates and are subjective.
» All performance projections with respect to the Funds are unaudited and calculated on a pro-forma basis. These projections are provided for informational purposes only. There can be no assurance that these internal rate of return and/or cash multiple projections will be achieved. CHC-RE did not serve as the Investment Adviser for Funds II and III.
Exhibit 10
50
CROW HOLDINGS CAPITAL – REAL ESTATELEADERSHIP TEAM
Anne RaymondBob McClainKevin BryantDodge CarterDan FeeneyCarlos Rainwater
CROW HOLDINGS CAPITAL – REAL ESTATE
Old Parkland Campus
3819 Maple Avenue | Dallas, Texas 75219
214.661.8000info@crowholdingscapital-RE.comwww.CrowHoldingsCapital-RE.com
Contact information
Exhibit 10