spire us limited partnership
M A R C H 31, 2014
SPIRE US LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
Since June 2010
Total Return+
0.7%
12.8%
10.8%
9.6%
12 Month Trailing Distribution Yield
5.8%
Past performance is not indicative of future results.
Investment Activity - First Quarter GROSS PURCHASE PRICE
Acquisitions
3
$60.99 million
Dispositions
-
-
Acquisitions Under Contract
2
$22.81 million
Dispositions Under Contract
-
-
Other 10%
Office 16%
Florida 11%
Washington 18%
Tennessee 1%
Net Asset Value
$177.8 million
Structure
Limited Partnership
Inception Date
July 2007
NAV Per Unit*
$115.87
Other 10% Industrial 3%
Retail 6%
Georgia 25% Texas 28%
1,534,585
Debt Leverage Ratio
Gross Asset Value by Type
California 7%
$415.0 million
Number of Units
NUMBER OF PROPERTIES
Gross Asset Value by Location
Total Asset Value
Multi-Family 65%
61%
Number of Assets
49
Total Square Feet
2,973,775
Portfolio Occupancy
95%
Average Cap Rate
6.2%
Average Cost of Debt
4.4%
Portfolio Occupancy by SF 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 -
2,400,000 2,000,000 1,600,000 200,000 180,000 160,000 140,000 120,000 100,000
Commercial
80,000
Multi-Family
800,000 400,000 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-
1,200,000
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 5.9%. 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
PA R K N I N E , O R L A N D O, F L
M A R C H 31, 2014
Quarter Highlights
Investment Criteria
• During the first quarter we added three investments to the SPIRE US portfolio:
• Clear focus on hard asset, cash flowing real
o On February 27 we purchased a 45.4% interest in Apex West Midtown, a Class A mixeduse property comprising 340 apartment units and 14,442 square feet of retail space lo-
estate where the primary revenue source comes from tenant rents.
cated in the rapidly transforming downtown Atlanta neighborhood of West Midtown. The
• The investment strategy will continue to target
acquisition was made in partnership with Venterra Realty. The property was purchased
commercial properties in Seattle, San Francisco
below replacement cost for $49.38 million (6.44% cap rate).
and other major markets in the western United
o On March 11 we closed on the purchase of South Hill Village, a 141,704 square foot
States complemented by a strategy of acquiring,
big box retail property located in Puyallup, 45 minutes south of downtown Seattle. The
with strategic operating partners, newer high
purchase price was $23.9 million (6.69% cap rate). This property is 100% leased to four
quality multi-family assets in US growth markets.
national retail tenants and is shadow anchored by Walmart and Home Depot. South Hill
• Leverage on assets is dependent on asset
Village is the first retail acquisition for SPIRE US and complements our existing office and
type with a tolerance for higher leverage on
industrial holdings in Seattle.
multi-family assets in the 65-75% range. For
o On March 25 we purchased a 50.0% interest in Park 9, a 356 unit garden-style apartment
commercial assets, we seek a lower threshold
community in Orlando, Florida. The acquisition was made in partnership with Venterra Re-
of 60-65% leverage.
alty. The property was purchased at a discount to the replacement cost for $29.35 million (6.73% cap rate). Park 9 was built in 1998 and underwent significant upgrading in 2009. The strategy for this investment includes completing the upgrade program and improving on-site management of the property.
in downtown San Francisco. This lease transaction saw the rental rate increase from $34.50 per square foot to $57.00 per square foot which reflects the high demand for office space in the South of Market Street submarket. The increase in office rents far exceeds our expectations at the time of underwriting the acquisition of 144 and 156 Second Street in November 2012. We anticipate continued upward pressure on rental rates in San Francisco through 2015. • Due to one-time costs incurred as part of the acquisition process, our returns have been reduced for the quarter. Overall however, our properties are currently meeting or exceeding expectations.
$100,000 Invested Since Inception
• Focus on capital preservation while underwriting
$141,873
$140,000 $130,000 $120,000 $110,000 $100,000 2012
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.
Disclaimer
$150,000
2011
minimum 5-10 year hold. potential risks to minimize possible loss of
• In February we re-leased the 4th floor at 144 Second Street, our multi-tenant office property
2010
• Return on equity targeted at 10% over a
2013
2014
• 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 April 30, 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+
0.7%
12.8%
10.8%
9.6%
12 Month Trailing Distribution Yield
5.8%
Past performance is not indicative of future results.
Investment Activity - First Quarter GROSS PURCHASE PRICE
Acquisitions
3
$60.99 million
Dispositions
-
-
Acquisitions Under Contract
2
$22.81 million
Dispositions Under Contract
-
-
Other 10%
Office 16%
Florida 11%
Washington 18%
Tennessee 1%
Net Asset Value
$177.8 million
Structure
Limited Partnership
Inception Date
July 2007
NAV Per Unit*
$115.87
Other 10% Industrial 3%
Retail 6%
Georgia 25% Texas 28%
1,534,585
Debt Leverage Ratio
Gross Asset Value by Type
California 7%
$415.0 million
Number of Units
NUMBER OF PROPERTIES
Gross Asset Value by Location
Total Asset Value
Multi-Family 65%
61%
Number of Assets
49
Total Square Feet
2,973,775
Portfolio Occupancy
95%
Average Cap Rate
6.2%
Average Cost of Debt
4.4%
Portfolio Occupancy by SF 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 -
2,400,000 2,000,000 1,600,000 200,000 180,000 160,000 140,000 120,000 100,000
Commercial
80,000
Multi-Family
800,000 400,000 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-
1,200,000
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 5.9%. 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
PA R K N I N E , O R L A N D O, F L
M A R C H 31, 2014
Quarter Highlights
Investment Criteria
• During the first quarter we added three investments to the SPIRE US portfolio:
• Clear focus on hard asset, cash flowing real
o On February 27 we purchased a 45.4% interest in Apex West Midtown, a Class A mixeduse property comprising 340 apartment units and 14,442 square feet of retail space lo-
estate where the primary revenue source comes from tenant rents.
cated in the rapidly transforming downtown Atlanta neighborhood of West Midtown. The
• The investment strategy will continue to target
acquisition was made in partnership with Venterra Realty. The property was purchased
commercial properties in Seattle, San Francisco
below replacement cost for $49.38 million (6.44% cap rate).
and other major markets in the western United
o On March 11 we closed on the purchase of South Hill Village, a 141,704 square foot
States complemented by a strategy of acquiring,
big box retail property located in Puyallup, 45 minutes south of downtown Seattle. The
with strategic operating partners, newer high
purchase price was $23.9 million (6.69% cap rate). This property is 100% leased to four
quality multi-family assets in US growth markets.
national retail tenants and is shadow anchored by Walmart and Home Depot. South Hill
• Leverage on assets is dependent on asset
Village is the first retail acquisition for SPIRE US and complements our existing office and
type with a tolerance for higher leverage on
industrial holdings in Seattle.
multi-family assets in the 65-75% range. For
o On March 25 we purchased a 50.0% interest in Park 9, a 356 unit garden-style apartment
commercial assets, we seek a lower threshold
community in Orlando, Florida. The acquisition was made in partnership with Venterra Re-
of 60-65% leverage.
alty. The property was purchased at a discount to the replacement cost for $29.35 million (6.73% cap rate). Park 9 was built in 1998 and underwent significant upgrading in 2009. The strategy for this investment includes completing the upgrade program and improving on-site management of the property.
in downtown San Francisco. This lease transaction saw the rental rate increase from $34.50 per square foot to $57.00 per square foot which reflects the high demand for office space in the South of Market Street submarket. The increase in office rents far exceeds our expectations at the time of underwriting the acquisition of 144 and 156 Second Street in November 2012. We anticipate continued upward pressure on rental rates in San Francisco through 2015. • Due to one-time costs incurred as part of the acquisition process, our returns have been reduced for the quarter. Overall however, our properties are currently meeting or exceeding expectations.
$100,000 Invested Since Inception
• Focus on capital preservation while underwriting
$141,873
$140,000 $130,000 $120,000 $110,000 $100,000 2012
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.
Disclaimer
$150,000
2011
minimum 5-10 year hold. potential risks to minimize possible loss of
• In February we re-leased the 4th floor at 144 Second Street, our multi-tenant office property
2010
• Return on equity targeted at 10% over a
2013
2014
• 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 April 30, 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
