spire us limited partnership
D E C E M B E R 31, 2013
SPIRE US LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
Since June 2010
Total Return+
13.6%
13.6%
11.0%
10.0%
12 Month Trailing Distribution Yield
5.7%
Past performance is not indicative of future results.
Investment Activity - 2013 GROSS PURCHASE PRICE
Acquisitions
9
$113.19 million
Dispositions
6
$19.79 million
Acquisitions Under Contract
1
$24.50 million
Dispositions Under Contract
-
-
Gross Asset Value by Location California 8%
Net Asset Value
$152.3 million
Structure
Limited Partnership
Inception Date
July 2007
NAV Per Unit*
$116.71
Office 18%
Tennessee 1%
1,304,561
Debt Leverage Ratio
Gross Asset Value by Type
Florida 8%
Washington 14%
$348.5 million
Number of Units
NUMBER OF PROPERTIES
Other 14%
Total Asset Value
Other 14% Industrial 4%
Georgia 22%
64%
Number of Assets
46
Total Square Feet
2,656,052
Portfolio Occupancy
93%
Average Cap Rate
6.3%
Average Cost of Debt
4.3%
Portfolio Occupancy by SF 350,000
2,400,000
300,000
2,000,000
250,000
1,600,000
200,000
200,000
150,000
180,000
100,000
160,000
800,000
140,000
400,000
50,000
120,000
Texas 33%
Multi-Family 64%
100,000
Commercial
Multi-Family 80,000
1,200,000
Unoccupied - Unoccupied Occupied Occupied
60,000 40,000
SPIRE US LP Overview The SPIRE US LP (SPIRE US) portfolio is focused on acquiring, through direct investment, com-
20,000 Commercial
mercial properties primarily in major markets on the West Coast and multi-family properties in the South and South Eastern US. Through its diversified portfolio, SPIRE US provides consistent returns based on property rental income, debt amortization, value-add and market appreciation. In 2010, SPIRE US was opened to individual investors with units denominated in US currency. Distributions to unit-holders are currently 5.7%. SPIRE US, through its asset manager Nicola Crosby, offers the clients of Nicola Wealth Management an opportunity to invest in direct real estate with an experienced management team. Since the inception of SPIRE US, the directors of Nicola Crosby have invested a significant amount of their own capital alongside the individual investors.
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
Contact Information Wayman Crosby, CEO Nicola Crosby Real Estate Asset Management Ltd. SPIRE General Partner Ltd. 420-1508 West Broadway Vancouver, BC V6J 1W8 T: + 1-778-383-6941 E: [email protected] W W W. N I C O L A C R O S B Y. C O M
3701 S O U T H N O R F O L K , S E AT T L E , WA
D E C E M B E R 31, 2013
2013 Highlights
Investment Criteria
• 2013 was a busy year for SPIRE US. We completed nine property acquisitions including the
• Clear focus on hard asset, cash flowing real
acquisition of majority interests in eight multifamily apartment communities. In addition, we
estate where the primary revenue source comes
completed the sale of one office property in Seattle and the sale of surplus density associated
from tenant rents.
with our two office properties in San Francisco.
• The investment strategy will continue to target
• During the fourth quarter we closed on the purchase of three apartment communities in
commercial properties in Seattle, San Francisco
partnership with Venterra Realty:
and other major markets in the western United
°° On October 16 we acquired a 68.5% interest in Stonecreek Ranch, a 198 unit, Class A garden apartment community in Austin, Texas. The property was developed in 2002 and was acquired for $16.9 million representing a 6.0% cap rate.
States complemented by a strategy of acquiring,
°° On November 21 we acquired a 68.5% interest in Bala Woods, a 262 unit garden apartment community located in the Kingswood submarket of Houston, Texas. The property was developed in 2001 and was acquired for $25.4 million representing a 6.2% cap rate. °° On December 4 we acquired an 80.0% interest in Monticello Oaks, a 63 unit townhouse complex in downtown Fort Worth, Texas. The purchase price was $8.2 million representing a 7% cap rate. Monticello Oaks was acquired on an off-market basis. • On December 13 we closed on the acquisition of 3701 South Norfolk, a 98% leased, 122,249 sf industrial property well situated in an in-fill location in South Seattle. The acquisition price of $13.3 million represents a 6.4% cap rate. Financing in the amount of $8.9 million was secured
with strategic operating partners, newer high quality multi-family assets in US growth markets. • Leverage on assets is dependent on asset type with a tolerance for higher leverage on multi-family assets in the 65-75% range. For commercial assets, we seek a lower threshold of 60-65% leverage. • Return on equity targeted at 10% over a minimum 5-10 year hold. • Focus on capital preservation while underwriting potential risks to minimize possible loss of
through Bank of America. • On October 16 we closed on the sale of the Grand Central Building for $11.5 million representing a 5.3% cap rate. This 72,000 sf office property was acquired in December 2011 for a 8.1% cap rate or $8.7 million as part of a three building portfolio located in the Pioneer Square district of Seattle. The IRR for this investment over the 22 month hold period was 35.7%. • On December 31 we closed on the sale of 33,000 Transfer Development Rights (TDRs) for $564,000. The TDRs represent available site density and were acquired as part of the November 2012 purchase of 144 and 156 Second Street, San Francisco. As SPIRE US has no use for the
capital and/or income through property, tenant covenant, cap rate and interest rate fluctuations. • Investment opportunities are sourced through third party vendors ensuring no conflicts of interest, and all properties are appraised on an annual basis by independent appraisers, confirming accurate market based valuations.
available density we arranged the sale of the TDRs to a property developer.
Disclaimer
$100,000 Invested Since Inception $150,000
$140,830 $140,000 $130,000 $120,000 $110,000 $100,000 2010
2011
2012
• Past performance is not indicative of future results. • Returns are net of LP expenses. • This investment is only available for sale to residents of Canada who are accredited investors. Please read the Limited Partnership Agreement and subscription documents for additional details and important disclosure information. • This does not constitute an offer of sale. • Please speak with a Nicola Wealth Management advisor to discuss if this investment is right for you. • *NAV per unit is calculated as of December 31, 2013. • +Returns are calculated on a calendar-quarter basis and may differ from client returns which are updated with a 1 month lag
2013
*SPIRE US was set up in July 2007 but opened to investors in June 2010. All returns are calculated from June 2010.
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
W W W. N I C O L A C R O S B Y. C O M
SPIRE US LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
Since June 2010
Total Return+
13.6%
13.6%
11.0%
10.0%
12 Month Trailing Distribution Yield
5.7%
Past performance is not indicative of future results.
Investment Activity - 2013 GROSS PURCHASE PRICE
Acquisitions
9
$113.19 million
Dispositions
6
$19.79 million
Acquisitions Under Contract
1
$24.50 million
Dispositions Under Contract
-
-
Gross Asset Value by Location California 8%
Net Asset Value
$152.3 million
Structure
Limited Partnership
Inception Date
July 2007
NAV Per Unit*
$116.71
Office 18%
Tennessee 1%
1,304,561
Debt Leverage Ratio
Gross Asset Value by Type
Florida 8%
Washington 14%
$348.5 million
Number of Units
NUMBER OF PROPERTIES
Other 14%
Total Asset Value
Other 14% Industrial 4%
Georgia 22%
64%
Number of Assets
46
Total Square Feet
2,656,052
Portfolio Occupancy
93%
Average Cap Rate
6.3%
Average Cost of Debt
4.3%
Portfolio Occupancy by SF 350,000
2,400,000
300,000
2,000,000
250,000
1,600,000
200,000
200,000
150,000
180,000
100,000
160,000
800,000
140,000
400,000
50,000
120,000
Texas 33%
Multi-Family 64%
100,000
Commercial
Multi-Family 80,000
1,200,000
Unoccupied - Unoccupied Occupied Occupied
60,000 40,000
SPIRE US LP Overview The SPIRE US LP (SPIRE US) portfolio is focused on acquiring, through direct investment, com-
20,000 Commercial
mercial properties primarily in major markets on the West Coast and multi-family properties in the South and South Eastern US. Through its diversified portfolio, SPIRE US provides consistent returns based on property rental income, debt amortization, value-add and market appreciation. In 2010, SPIRE US was opened to individual investors with units denominated in US currency. Distributions to unit-holders are currently 5.7%. SPIRE US, through its asset manager Nicola Crosby, offers the clients of Nicola Wealth Management an opportunity to invest in direct real estate with an experienced management team. Since the inception of SPIRE US, the directors of Nicola Crosby have invested a significant amount of their own capital alongside the individual investors.
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
Contact Information Wayman Crosby, CEO Nicola Crosby Real Estate Asset Management Ltd. SPIRE General Partner Ltd. 420-1508 West Broadway Vancouver, BC V6J 1W8 T: + 1-778-383-6941 E: [email protected] W W W. N I C O L A C R O S B Y. C O M
3701 S O U T H N O R F O L K , S E AT T L E , WA
D E C E M B E R 31, 2013
2013 Highlights
Investment Criteria
• 2013 was a busy year for SPIRE US. We completed nine property acquisitions including the
• Clear focus on hard asset, cash flowing real
acquisition of majority interests in eight multifamily apartment communities. In addition, we
estate where the primary revenue source comes
completed the sale of one office property in Seattle and the sale of surplus density associated
from tenant rents.
with our two office properties in San Francisco.
• The investment strategy will continue to target
• During the fourth quarter we closed on the purchase of three apartment communities in
commercial properties in Seattle, San Francisco
partnership with Venterra Realty:
and other major markets in the western United
°° On October 16 we acquired a 68.5% interest in Stonecreek Ranch, a 198 unit, Class A garden apartment community in Austin, Texas. The property was developed in 2002 and was acquired for $16.9 million representing a 6.0% cap rate.
States complemented by a strategy of acquiring,
°° On November 21 we acquired a 68.5% interest in Bala Woods, a 262 unit garden apartment community located in the Kingswood submarket of Houston, Texas. The property was developed in 2001 and was acquired for $25.4 million representing a 6.2% cap rate. °° On December 4 we acquired an 80.0% interest in Monticello Oaks, a 63 unit townhouse complex in downtown Fort Worth, Texas. The purchase price was $8.2 million representing a 7% cap rate. Monticello Oaks was acquired on an off-market basis. • On December 13 we closed on the acquisition of 3701 South Norfolk, a 98% leased, 122,249 sf industrial property well situated in an in-fill location in South Seattle. The acquisition price of $13.3 million represents a 6.4% cap rate. Financing in the amount of $8.9 million was secured
with strategic operating partners, newer high quality multi-family assets in US growth markets. • Leverage on assets is dependent on asset type with a tolerance for higher leverage on multi-family assets in the 65-75% range. For commercial assets, we seek a lower threshold of 60-65% leverage. • Return on equity targeted at 10% over a minimum 5-10 year hold. • Focus on capital preservation while underwriting potential risks to minimize possible loss of
through Bank of America. • On October 16 we closed on the sale of the Grand Central Building for $11.5 million representing a 5.3% cap rate. This 72,000 sf office property was acquired in December 2011 for a 8.1% cap rate or $8.7 million as part of a three building portfolio located in the Pioneer Square district of Seattle. The IRR for this investment over the 22 month hold period was 35.7%. • On December 31 we closed on the sale of 33,000 Transfer Development Rights (TDRs) for $564,000. The TDRs represent available site density and were acquired as part of the November 2012 purchase of 144 and 156 Second Street, San Francisco. As SPIRE US has no use for the
capital and/or income through property, tenant covenant, cap rate and interest rate fluctuations. • Investment opportunities are sourced through third party vendors ensuring no conflicts of interest, and all properties are appraised on an annual basis by independent appraisers, confirming accurate market based valuations.
available density we arranged the sale of the TDRs to a property developer.
Disclaimer
$100,000 Invested Since Inception $150,000
$140,830 $140,000 $130,000 $120,000 $110,000 $100,000 2010
2011
2012
• Past performance is not indicative of future results. • Returns are net of LP expenses. • This investment is only available for sale to residents of Canada who are accredited investors. Please read the Limited Partnership Agreement and subscription documents for additional details and important disclosure information. • This does not constitute an offer of sale. • Please speak with a Nicola Wealth Management advisor to discuss if this investment is right for you. • *NAV per unit is calculated as of December 31, 2013. • +Returns are calculated on a calendar-quarter basis and may differ from client returns which are updated with a 1 month lag
2013
*SPIRE US was set up in July 2007 but opened to investors in June 2010. All returns are calculated from June 2010.
N I C O L A C R O S B Y R E A L E S TAT E A S S E T M A N A G E M E N T
W W W. N I C O L A C R O S B Y. C O M
