SPIRE US LIMITED PARTNERSHIP
J U LY 31, 2013
SPIRE US LIMITED PARTNERSHIP Performance
Key Statistics YTD
1 Year
3 Year
Since June 2010
Total Return
7.9%
11.2%
9.9%
9.6%
12 Month Trailing Distribution Yield
5.4%
NUMBER OF PROPERTIES
GROSS PURCHASE/ SHARE PRICE (LP SHARE)
Acquisitions
4
$69.8 million
Dispositions
3
$3.3 million
Acquisitions Under Contract
1
$15.7 million
Dispositions Under Contract
1
$11.5 million
Limited Partnership
Georgia
NAV Per Unit
$113.60
Number of Units
874,626
Washington
43
Total Square Feet
1,972,775
Portfolio Occupancy
94%
Average Cap Rate
6.3%
Average Cost of Debt
3.6%
1,800,000 1,800,000
180,000
1,600,000 1,600,000
160,000
1,400,000 1,400,000
140,000
Multi-Family 72%
1,200,000 1,200,000
120,000
1,000,000 1,000,000
100,000
Unoccupied Unoccupied
Multi-Family
800,000 800,000
80,000
Occupied Occupied
SPIRE US LP Overview
200,000 200,000 150,000 150,000
60,000
100,000 100,000
40,000 20,000
200,000 200,000
300,000 300,000 250,000 250,000
Commercial
400,000 400,000
Tennessee
64%
Number of Assets
600,000 600,000
Texas
July 2007
Portfolio 200,000Occupancy by SF
Commercial 28%
Florida
Georgia 31%
$99.4 million
Debt Leverage Ratio
Gross Asset Value by Type
California
Texas 32%
Net Asset Value Inception Date
Investment Activity
Tennessee California 2% 11% Washington Florida 18% 6%
$242.6 million
Structure
Past performance is not indicative of future results.
Gross Asset Value by Location
Total Asset Value
50,000 50,000
-
Commercial --
Commercial Commercial
Multi Family Multi-Family
--
SPIRE US LP (SPIRE US) was created in 2007 as a wholly owned subsidiary of SPIRE Real Estate LP (SPIRE). SPIRE US was founded to acquire income-producing real estate assets in the United States, with the objective of capitalizing on the troubled US market by obtaining quality assets at distressed prices. The 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. In 2010, SPIRE US was opened to individual investors with units denominated in US currency and has consistently provided distributions of at least 5% per annum based on Net Asset Value (NAV), paid monthly or through a dividend reinvestment plan (DRIP) to its investors. Distributions are currently 6%. 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. The directors of Nicola Crosby believe in SPIRE US and have invested a signficant amount of their own capital. 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
C H A M P I O N S G R E E N , AT L A N TA , G A
J U LY 31, 2013
Year to Date Highlights
Investment Criteria
• In May subject conditions were removed on the purchase of Village Walk, a 240 unit, Class
• Clear focus on hard asset, cash flowing real
A multi-family property in Jacksonville, Florida. SPIRE US is acquiring a 52% interest in this
estate where the primary revenue source comes
property in partnership with Venterra Realty. The purchase price of $30.1 million represents
from tenant rents. • The investment strategy will continue to target
a 7.58% cap rate. Closing is anticipated in late July. • In June we acquired a 65% interest in Tuscany at Lindbergh, a 324 unit, Class A multi-family property in Atlanta Georgia, in partnership with Venterra Realty. The acquisition price was $49.5 million representing a 5.96% cap rate. Tuscany at Lindbergh was constructed in 2001 and is well located in Buckhead, one of Atlanta’s most affluent submarkets. The investment presents a value add opportunity to reposition the property through active on-site property management and in-suite capital improvements. • In June we leased 41,867 square feet representing the 2nd, 3rd and 4th floors of the
commercial properties in Seattle, San Francisco and other major markets in the western 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
Reedo Building in Seattle on very attractive terms to two tenants, Payscale Inc. and Sesame
commercial assets, we seek a lower threshold
Communications. The new leases will commence on February 1, 2014 immediately following
of 60-65% leverage.
the expiry of the current lease with Starbucks. The Reedo Building is now fully leased through mid-2016.
• Return on equity targeted at 10-12% over a minimum 5-10 year hold.
• In June we commenced marketing the Grand Central Building for sale. This 72,000 square
• Focus on capital preservation while underwriting
feet office property was acquired in December 2011 as part of a three building portfolio all
potential risks to minimize possible loss of
situated in the Pioneer Square district of downtown Seattle. As the property is characterized
capital and/or income through property, tenant
by many small, short term, non-credit tenancies which do not provide for good income
covenant, cap rate and interest rate fluctuations.
growth we decided to take advantage of current strong investor demand and market the
• Investment opportunities are sourced through
property for sale. Interest in the offering has been significant and we have entered into an
third party vendors ensuring no conflicts of
agreement to sell for $11.5 million.
interest, and all properties are appraised on an annual basis by independent appraisers, confirming accurate market based valuations.
$100,000 Invested Since Inception $100,000 Invested 140,000.00 $140,000
$133,760 $133,619.81 130,000.00 $130,000
120,000.00 $120,000
$100,000 Invested
110,000.00 $110,000
100,000.00 $100,000 1-Jun-10
2010
1-Jun-11
2011
1-Jun-12
2012
1-Jun-13
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
Disclaimer
• 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
7.9%
11.2%
9.9%
9.6%
12 Month Trailing Distribution Yield
5.4%
NUMBER OF PROPERTIES
GROSS PURCHASE/ SHARE PRICE (LP SHARE)
Acquisitions
4
$69.8 million
Dispositions
3
$3.3 million
Acquisitions Under Contract
1
$15.7 million
Dispositions Under Contract
1
$11.5 million
Limited Partnership
Georgia
NAV Per Unit
$113.60
Number of Units
874,626
Washington
43
Total Square Feet
1,972,775
Portfolio Occupancy
94%
Average Cap Rate
6.3%
Average Cost of Debt
3.6%
1,800,000 1,800,000
180,000
1,600,000 1,600,000
160,000
1,400,000 1,400,000
140,000
Multi-Family 72%
1,200,000 1,200,000
120,000
1,000,000 1,000,000
100,000
Unoccupied Unoccupied
Multi-Family
800,000 800,000
80,000
Occupied Occupied
SPIRE US LP Overview
200,000 200,000 150,000 150,000
60,000
100,000 100,000
40,000 20,000
200,000 200,000
300,000 300,000 250,000 250,000
Commercial
400,000 400,000
Tennessee
64%
Number of Assets
600,000 600,000
Texas
July 2007
Portfolio 200,000Occupancy by SF
Commercial 28%
Florida
Georgia 31%
$99.4 million
Debt Leverage Ratio
Gross Asset Value by Type
California
Texas 32%
Net Asset Value Inception Date
Investment Activity
Tennessee California 2% 11% Washington Florida 18% 6%
$242.6 million
Structure
Past performance is not indicative of future results.
Gross Asset Value by Location
Total Asset Value
50,000 50,000
-
Commercial --
Commercial Commercial
Multi Family Multi-Family
--
SPIRE US LP (SPIRE US) was created in 2007 as a wholly owned subsidiary of SPIRE Real Estate LP (SPIRE). SPIRE US was founded to acquire income-producing real estate assets in the United States, with the objective of capitalizing on the troubled US market by obtaining quality assets at distressed prices. The 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. In 2010, SPIRE US was opened to individual investors with units denominated in US currency and has consistently provided distributions of at least 5% per annum based on Net Asset Value (NAV), paid monthly or through a dividend reinvestment plan (DRIP) to its investors. Distributions are currently 6%. 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. The directors of Nicola Crosby believe in SPIRE US and have invested a signficant amount of their own capital. 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
C H A M P I O N S G R E E N , AT L A N TA , G A
J U LY 31, 2013
Year to Date Highlights
Investment Criteria
• In May subject conditions were removed on the purchase of Village Walk, a 240 unit, Class
• Clear focus on hard asset, cash flowing real
A multi-family property in Jacksonville, Florida. SPIRE US is acquiring a 52% interest in this
estate where the primary revenue source comes
property in partnership with Venterra Realty. The purchase price of $30.1 million represents
from tenant rents. • The investment strategy will continue to target
a 7.58% cap rate. Closing is anticipated in late July. • In June we acquired a 65% interest in Tuscany at Lindbergh, a 324 unit, Class A multi-family property in Atlanta Georgia, in partnership with Venterra Realty. The acquisition price was $49.5 million representing a 5.96% cap rate. Tuscany at Lindbergh was constructed in 2001 and is well located in Buckhead, one of Atlanta’s most affluent submarkets. The investment presents a value add opportunity to reposition the property through active on-site property management and in-suite capital improvements. • In June we leased 41,867 square feet representing the 2nd, 3rd and 4th floors of the
commercial properties in Seattle, San Francisco and other major markets in the western 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
Reedo Building in Seattle on very attractive terms to two tenants, Payscale Inc. and Sesame
commercial assets, we seek a lower threshold
Communications. The new leases will commence on February 1, 2014 immediately following
of 60-65% leverage.
the expiry of the current lease with Starbucks. The Reedo Building is now fully leased through mid-2016.
• Return on equity targeted at 10-12% over a minimum 5-10 year hold.
• In June we commenced marketing the Grand Central Building for sale. This 72,000 square
• Focus on capital preservation while underwriting
feet office property was acquired in December 2011 as part of a three building portfolio all
potential risks to minimize possible loss of
situated in the Pioneer Square district of downtown Seattle. As the property is characterized
capital and/or income through property, tenant
by many small, short term, non-credit tenancies which do not provide for good income
covenant, cap rate and interest rate fluctuations.
growth we decided to take advantage of current strong investor demand and market the
• Investment opportunities are sourced through
property for sale. Interest in the offering has been significant and we have entered into an
third party vendors ensuring no conflicts of
agreement to sell for $11.5 million.
interest, and all properties are appraised on an annual basis by independent appraisers, confirming accurate market based valuations.
$100,000 Invested Since Inception $100,000 Invested 140,000.00 $140,000
$133,760 $133,619.81 130,000.00 $130,000
120,000.00 $120,000
$100,000 Invested
110,000.00 $110,000
100,000.00 $100,000 1-Jun-10
2010
1-Jun-11
2011
1-Jun-12
2012
1-Jun-13
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
Disclaimer
• 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
