spire us limited partnership
O C T O B E R 31, 2013
SPIRE US LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
Since June 2010
Total Return
13.0%
15.0%
11.1%
10.4%
12 Month Trailing Distribution Yield
5.5%
Net Asset Value
$127.8 million
Structure
Limited Partnership July 2007
NAV Per Unit
Investment Activity
$117.20
Number of Units NUMBER OF PROPERTIES
GROSS PURCHASE PRICE
Acquisitions
1
$15.80 million
Dispositions
-
Acquisitions Under Contract
4
$66.75 million
Dispositions Under Contract
1
$11.50 million
Gross Asset Value by Location
Gross Asset Value by Type
California 9%
Washington 15%
$298.1 million
Inception Date
Past performance is not indicative of future results.
Other 11%
Total Asset Value
Other 11%
1,090,626
Debt Leverage Ratio
44
Total Square Feet
2,119,023
Portfolio Occupancy
94%
Average Cap Rate
6.2%
Average Cost of Debt
4.5%
Portfolio Occupancy by SF 300,000 250,000
Florida 11%
Commercial 24%
Tennessee 2%
200,000 150,000 100,000
Texas 27%
50,000
Georgia 25%
Multi-Family 65%
62%
Number of Assets
Commercial Multi-Family
1,800,000 1,600,000 200,000 1,400,000 180,000 1,200,000 160,000 1,000,000 140,000 800,000 120,000 600,000 Unoccupied Unoccupied 100,000 400,000 Occupied Occupied 80,000 200,000 60,000 - 40,000 20,000 -
Commercial
SPIRE US LP Overview The SPIRE US LP (SPIRE US) portfolio is focused on acquiring, through direct investment, commercial 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 5.8% 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
WAT E R F O R D AT M A N D A R I N , J A C K S O N V I L L E , F L
O C T O B E R 31, 2013
Quarter Highlights
Investment Criteria
• In August we acquired a 52.5% interest in Village Walk, a Class A multi-family property in
• Clear focus on hard asset, cash flowing real
Jacksonville, Florida, in partnership with Venterra Realty. The acquisition price of $30,100,000
estate where the primary revenue source comes
or $125,417 per unit is 8% below replacement cost and represents a 7.3% cap rate. Village Walk
from tenant rents.
was acquired on an off-market basis.
• The investment strategy will continue to target
• The sale of the Grand Central Building in the Pioneer Square district of Seattle closed on October
commercial properties in Seattle, San Francisco
16. This 72,000 square foot office property was acquired in December 2011 as part of a three
and other major markets in the western United
building portfolio. The purchase price of the portfolio was $19,600,000 with the Grand Central
States complemented by a strategy of acquiring,
Building accounting for $8,900,000. The sale price of $11,500,000 provides for proceeds after
with strategic operating partners, newer high
broker commissions and other sales costs of approximately $11,100,000. The estimated IRR for
quality multi-family assets in US growth markets. • Leverage on assets is dependent on asset
the 22 month hold of this property is 30%. • We are under contract for the sale of 33,000 Transfer Development Right units (TDRs) acquired in the purchase of 144 and 156 Second Street, San Francisco in November 2012. As SPIRE US LP has no need for these TDRs we have been quietly marketing the units for sale. The contract price of $17.09 per unit provides for $564,000 in sale proceeds which was not underwritten at the time of the acquisition. We anticipate closing on the TDR sale in early 2014. • We are under contract for the purchase of a 65.8% interest in two multi-family investments in partnership with Venterra Realty. Bala Woods is a 262-unit, Class A apartment community located in the Kingswood submarket of Houston, Texas. Stone Creek is a 198-unit, Class A, garden-style apartment property in located in south Austin, Texas. We anticipate closing on these properties in late October. • The increase in NAV for SPIRE US in the third quarter is attributable to i) the realized gain on
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 10-12% over a minimum 5-10 year hold. • Focus on capital preservation while underwriting 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 third party vendors ensuring no conflicts of
the sale of the Grand Central Building, ii) the strengthening San Francisco office market, and iii)
interest, and all properties are appraised on
improving property performance of many of the multi-family investments held in partnership
an annual basis by independent appraisers,
with Venterra Realty.
confirming accurate market based valuations.
$100,000 $150,000Invested Since Inception $140,058 $140,000
Disclaimer
$130,000 $120,000 $110,000 $100,000 2010
2011
2012
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
• 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. www.nicolawealth.com
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
13.0%
15.0%
11.1%
10.4%
12 Month Trailing Distribution Yield
5.5%
Net Asset Value
$127.8 million
Structure
Limited Partnership July 2007
NAV Per Unit
Investment Activity
$117.20
Number of Units NUMBER OF PROPERTIES
GROSS PURCHASE PRICE
Acquisitions
1
$15.80 million
Dispositions
-
Acquisitions Under Contract
4
$66.75 million
Dispositions Under Contract
1
$11.50 million
Gross Asset Value by Location
Gross Asset Value by Type
California 9%
Washington 15%
$298.1 million
Inception Date
Past performance is not indicative of future results.
Other 11%
Total Asset Value
Other 11%
1,090,626
Debt Leverage Ratio
44
Total Square Feet
2,119,023
Portfolio Occupancy
94%
Average Cap Rate
6.2%
Average Cost of Debt
4.5%
Portfolio Occupancy by SF 300,000 250,000
Florida 11%
Commercial 24%
Tennessee 2%
200,000 150,000 100,000
Texas 27%
50,000
Georgia 25%
Multi-Family 65%
62%
Number of Assets
Commercial Multi-Family
1,800,000 1,600,000 200,000 1,400,000 180,000 1,200,000 160,000 1,000,000 140,000 800,000 120,000 600,000 Unoccupied Unoccupied 100,000 400,000 Occupied Occupied 80,000 200,000 60,000 - 40,000 20,000 -
Commercial
SPIRE US LP Overview The SPIRE US LP (SPIRE US) portfolio is focused on acquiring, through direct investment, commercial 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 5.8% 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
WAT E R F O R D AT M A N D A R I N , J A C K S O N V I L L E , F L
O C T O B E R 31, 2013
Quarter Highlights
Investment Criteria
• In August we acquired a 52.5% interest in Village Walk, a Class A multi-family property in
• Clear focus on hard asset, cash flowing real
Jacksonville, Florida, in partnership with Venterra Realty. The acquisition price of $30,100,000
estate where the primary revenue source comes
or $125,417 per unit is 8% below replacement cost and represents a 7.3% cap rate. Village Walk
from tenant rents.
was acquired on an off-market basis.
• The investment strategy will continue to target
• The sale of the Grand Central Building in the Pioneer Square district of Seattle closed on October
commercial properties in Seattle, San Francisco
16. This 72,000 square foot office property was acquired in December 2011 as part of a three
and other major markets in the western United
building portfolio. The purchase price of the portfolio was $19,600,000 with the Grand Central
States complemented by a strategy of acquiring,
Building accounting for $8,900,000. The sale price of $11,500,000 provides for proceeds after
with strategic operating partners, newer high
broker commissions and other sales costs of approximately $11,100,000. The estimated IRR for
quality multi-family assets in US growth markets. • Leverage on assets is dependent on asset
the 22 month hold of this property is 30%. • We are under contract for the sale of 33,000 Transfer Development Right units (TDRs) acquired in the purchase of 144 and 156 Second Street, San Francisco in November 2012. As SPIRE US LP has no need for these TDRs we have been quietly marketing the units for sale. The contract price of $17.09 per unit provides for $564,000 in sale proceeds which was not underwritten at the time of the acquisition. We anticipate closing on the TDR sale in early 2014. • We are under contract for the purchase of a 65.8% interest in two multi-family investments in partnership with Venterra Realty. Bala Woods is a 262-unit, Class A apartment community located in the Kingswood submarket of Houston, Texas. Stone Creek is a 198-unit, Class A, garden-style apartment property in located in south Austin, Texas. We anticipate closing on these properties in late October. • The increase in NAV for SPIRE US in the third quarter is attributable to i) the realized gain on
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 10-12% over a minimum 5-10 year hold. • Focus on capital preservation while underwriting 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 third party vendors ensuring no conflicts of
the sale of the Grand Central Building, ii) the strengthening San Francisco office market, and iii)
interest, and all properties are appraised on
improving property performance of many of the multi-family investments held in partnership
an annual basis by independent appraisers,
with Venterra Realty.
confirming accurate market based valuations.
$100,000 $150,000Invested Since Inception $140,058 $140,000
Disclaimer
$130,000 $120,000 $110,000 $100,000 2010
2011
2012
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
• 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. www.nicolawealth.com
W W W. N I C O L A C R O S B Y. C O M
