spire us limited partnership
S E P T E M B E R 30, 2014
SPIRE US LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
Since June 2010
Total Return+
7.1%
11.6%
12.2%
10.0%
12 Month Trailing Distribution Yield
5.7%
Past performance is not indicative of future results.
Investment Activity - Third Quarter GROSS PURCHASE PRICE
Acquisitions
1
$32.85 million
Dispositions
1
$4.75 million
Acquisitions Under Contract
1
$22.68 million
Dispositions Under Contract
-
-
Other 11%
California 7%
Gross Asset Value by Type Office 21%
Florida 8% Tennessee 1%
Washington 22%
$499.6 million
Net Asset Value
$218.3 million
Structure
Limited Partnership
Inception Date
July 2007
NAV Per Unit*
$119.64
Number of Units
NUMBER OF PROPERTIES
Gross Asset Value by Location
Total Asset Value
Other 11%
1,824,850
Debt Leverage Ratio
51
Total Square Feet
3,443,611
Portfolio Occupancy
94%
Average Cap Rate
6.1%
Average Cost of Debt
4.4%
Portfolio Occupancy by SF
400,000 350,000
Industrial 3%
2,000,000
250,000
1,600,000 200,000
150,000
Georgia 20%
180,000 160,000
800,000
50,000
140,000
400,000
120,000
-
Office Industrial Retail
100,000 Multi80,000 family
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-
1,200,000
100,000 Multi-Family 60%
2,800,000 2,400,000
300,000 200,000
Retail 5%
Texas 31%
55%
Number of Assets
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 long-term wealth creation 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, 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, Managing Partner 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
C A N Y O N PA R K , B O T H E L L , WA
S E P T E M B E R 30, 2014
Quarter Highlights
Investment Criteria
• 144/156 Second Street in San Francisco experienced a significant lift in value as of September 1.
• Clear focus on hard asset, cash flowing real
As determined by an independent, third-party appraiser, 144 Second increased from $13.7M to $16.8M (22%) and 156 Second increased from $14.7M to $17.6M (20%). The increase in value is primarily attributable to improved leasing and capital market conditions. The overall leasing market in SF continues to show strong tenant demand. • In July we closed on the previously reported acquisition Canyon Park Heights in Bothell, WA. This 143,758sf Class A office building is 95% leased to credit tenants. The purchase price was $32.85M, representing a cap rate of 6.77%. • In August the disposition of Waterford at Mandarin successfully closed at a sale price of $36.3M. SPIRE US had invested $1.427M in equity back in 2010, and with the sale achieved an IRR of 12% to investors. The decision was made to sell the property due to the age of the asset (circa 1990), we had already achieved and realized the value-add potential, and the lack of rental growth in the particular submarket within Jacksonville. • We previously reported a new multi-family acquisition in partnership with Venterra Realty, Zang Triangle located in Dallas, TX. The property is a newly developed, Class A building located within minutes of downtown Dallas. It contains 260 units and is being acquired for $32.4M representing a cap rate of 5.47%. SPIRE US will have a 70% ownership stake in this asset. Closing is anticipated
estate where the primary revenue source comes from tenant rents. • The investment strategy will continue to target commercial properties in Seattle, San Francisco and other major markets in the United States complemented by a strategy of acquiring, 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 8% - 10% over a minimum 5-10 year hold. • Focus on capital preservation while underwriting
for early November. • In the second quarter, we purchased, along with our multi-family partner Venterra Realty, 332 of 432 units in Fairways at South Shore in League City, TX. The business plan for the property included acquiring additional units. In the third quarter we acquired, ahead of underwriting, an
potential risks to minimize possible loss of capital and/or income through property, tenant covenant, cap rate and interest rate fluctuations. • Investment opportunities are sourced through
additional 10 units, giving us control of 80% of the total units. • We continue to focus our efforts on identifying potential acquisitions that meet our investment
third party vendors ensuring no conflicts of
criteria in such major markets as Denver, Chicago, Houston and Los Angeles to complement our
interest, and all properties are appraised on
existing SPIRE US assets in Seattle and San Francisco. Investor demand remains very strong for
an annual basis by independent appraisers,
well-located quality assets creating a very competitive environment. Our disciplined approach
confirming accurate market based valuations.
to underwriting will ensure that all new acquisitions are accretive to overall returns as we geographically diversify our portfolio.
Disclaimer
$100,000 Invested Since Inception $160,000
$150,832
$150,000 $140,000 $130,000 $120,000 $110,000 $100,000 2010
2011
2012
2013
2014
2015
• 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 effective October 31, 2014. • +Returns are calculated on a monthly basis and may differ from client returns which are updated with a 1 month lag.
*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+
7.1%
11.6%
12.2%
10.0%
12 Month Trailing Distribution Yield
5.7%
Past performance is not indicative of future results.
Investment Activity - Third Quarter GROSS PURCHASE PRICE
Acquisitions
1
$32.85 million
Dispositions
1
$4.75 million
Acquisitions Under Contract
1
$22.68 million
Dispositions Under Contract
-
-
Other 11%
California 7%
Gross Asset Value by Type Office 21%
Florida 8% Tennessee 1%
Washington 22%
$499.6 million
Net Asset Value
$218.3 million
Structure
Limited Partnership
Inception Date
July 2007
NAV Per Unit*
$119.64
Number of Units
NUMBER OF PROPERTIES
Gross Asset Value by Location
Total Asset Value
Other 11%
1,824,850
Debt Leverage Ratio
51
Total Square Feet
3,443,611
Portfolio Occupancy
94%
Average Cap Rate
6.1%
Average Cost of Debt
4.4%
Portfolio Occupancy by SF
400,000 350,000
Industrial 3%
2,000,000
250,000
1,600,000 200,000
150,000
Georgia 20%
180,000 160,000
800,000
50,000
140,000
400,000
120,000
-
Office Industrial Retail
100,000 Multi80,000 family
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-
1,200,000
100,000 Multi-Family 60%
2,800,000 2,400,000
300,000 200,000
Retail 5%
Texas 31%
55%
Number of Assets
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 long-term wealth creation 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, 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, Managing Partner 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
C A N Y O N PA R K , B O T H E L L , WA
S E P T E M B E R 30, 2014
Quarter Highlights
Investment Criteria
• 144/156 Second Street in San Francisco experienced a significant lift in value as of September 1.
• Clear focus on hard asset, cash flowing real
As determined by an independent, third-party appraiser, 144 Second increased from $13.7M to $16.8M (22%) and 156 Second increased from $14.7M to $17.6M (20%). The increase in value is primarily attributable to improved leasing and capital market conditions. The overall leasing market in SF continues to show strong tenant demand. • In July we closed on the previously reported acquisition Canyon Park Heights in Bothell, WA. This 143,758sf Class A office building is 95% leased to credit tenants. The purchase price was $32.85M, representing a cap rate of 6.77%. • In August the disposition of Waterford at Mandarin successfully closed at a sale price of $36.3M. SPIRE US had invested $1.427M in equity back in 2010, and with the sale achieved an IRR of 12% to investors. The decision was made to sell the property due to the age of the asset (circa 1990), we had already achieved and realized the value-add potential, and the lack of rental growth in the particular submarket within Jacksonville. • We previously reported a new multi-family acquisition in partnership with Venterra Realty, Zang Triangle located in Dallas, TX. The property is a newly developed, Class A building located within minutes of downtown Dallas. It contains 260 units and is being acquired for $32.4M representing a cap rate of 5.47%. SPIRE US will have a 70% ownership stake in this asset. Closing is anticipated
estate where the primary revenue source comes from tenant rents. • The investment strategy will continue to target commercial properties in Seattle, San Francisco and other major markets in the United States complemented by a strategy of acquiring, 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 8% - 10% over a minimum 5-10 year hold. • Focus on capital preservation while underwriting
for early November. • In the second quarter, we purchased, along with our multi-family partner Venterra Realty, 332 of 432 units in Fairways at South Shore in League City, TX. The business plan for the property included acquiring additional units. In the third quarter we acquired, ahead of underwriting, an
potential risks to minimize possible loss of capital and/or income through property, tenant covenant, cap rate and interest rate fluctuations. • Investment opportunities are sourced through
additional 10 units, giving us control of 80% of the total units. • We continue to focus our efforts on identifying potential acquisitions that meet our investment
third party vendors ensuring no conflicts of
criteria in such major markets as Denver, Chicago, Houston and Los Angeles to complement our
interest, and all properties are appraised on
existing SPIRE US assets in Seattle and San Francisco. Investor demand remains very strong for
an annual basis by independent appraisers,
well-located quality assets creating a very competitive environment. Our disciplined approach
confirming accurate market based valuations.
to underwriting will ensure that all new acquisitions are accretive to overall returns as we geographically diversify our portfolio.
Disclaimer
$100,000 Invested Since Inception $160,000
$150,832
$150,000 $140,000 $130,000 $120,000 $110,000 $100,000 2010
2011
2012
2013
2014
2015
• 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 effective October 31, 2014. • +Returns are calculated on a monthly basis and may differ from client returns which are updated with a 1 month lag.
*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
