spire us limited partnership

M A RC H 3 1 , 201 6
SPIRE US LIMITED PARTNERSHIP
Performance
YTD
1 Year
3 Year
Total Return+
3.6%
12.9%
13.3%
12 Month Trailing Distribution Yield
5.6%
Key Statistics
5 Year Since June 2010
11.9%
10.9%
$365.6 million
Limited Partnership
Inception Date
NAV Per Unit*
July 2007
GROSS PURCHASE / SALE
0
PRICE
Number of Units
2,748,468
Acquisitions
2
$24.98M
Dispositions
3
$3.21M
Acquisitions Under Contract
1
$18.00M
Dispositions Under Contract
-
-
Gross Asset Value by Location
California
5%
Gross Asset Value by Type
Office
23%
Georgia
18%
Florida
12%
Colorado
2%
Other
4%
$133.02
Debt Leverage Ratio
57%
Number of Assets
61
Total Square Feet
5,934,780
Portfolio Occupancy
94%
Average Cap Rate
6.0%
Average Cost of Debt
3.9%
Portfolio Occupancy by SF
700,000
700,000
600,000
600,000
500,000
500,000
400,000
400,000
Industrial
2%
300,000
300,000
Retail
6%
100,000
100,000
98%
200,000
200,000
-
Multi-Family
65%
99%
100%
Office
Office
Industrial
Industrial
. . . . . . . . . . . . . . . . . . . . . . . . . . .
NUMBER OF
PROPERTIES
Texas
39%
Net Asset Value
s
Investment Activity - First Quarter
Illinois
5%
$911.6 million
Structure
Past performance is not indicative of future results.
Other
4%
Washington
15%
Total Asset Value
Retail
Retail
93%
5,000,000
5,000,000
4,500,000
4,500,000
4,000,000
4,000,000
3,500,000
3,500,000
3,000,000
3,000,000
2,500,000
2,500,000
2,000,000
2,000,000
1,500,000
1,500,000
1,000,000
1,000,000
500,000
500,000
MultiMultiFamily
family
-
Unoccupied
Occupied
SPIRE US LP Overview
The SPIRE US LP (SPIRE US) portfolio is focused on acquiring, through direct investment or
joint ventures, commercial properties primarily in major markets in the Western US and multifamily properties in the South and South Eastern US. Through its diversified portfolio, SPIRE US
aims to provide 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. Investment criteria includes a return on
equity targeted at 8%-10% over a minimum 5-10 year hold and an overall debt ratio of 60-65%.
Distributions to unit-holders are currently 5.9%.
SPIRE US offers the clients of Nicola Wealth Management (NWM) an opportunity to invest in
direct real estate with an experienced management team. Since the inception of SPIRE US, the
management of Nicola Crosby have invested and continue to invest their own capital alongside
NWM clients.
N I C O L A CR OSBY REA L ESTAT E
Contact Information
Wayman Crosby, Managing Partner, Director
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]
WWW. N ICOLACROSBY.COM
MA R C H 3 1 , 201 6
Quarter Highlights
The following two multi-family acquisitions were completed this quarter:
• Dolce Living at Grand Harbor, Katy, Texas – a 324 unit garden-style apartment community in the
Katy suburb of Houston, Texas. The property was completed between 2013 and 2015 in two separate
phases and consists of 21 separate buildings on 13.63 acres. Katy is one of the fastest growing areas
in the Houston area and a major growth corridor for employment and new residents. Dolce Living is
within walking distance to Katy Mills Mall and the upcoming Katy Boardwalk project that will bring
a convention center to the area.
(SPIRE US acquired a 50% interest)
• The Palazzo, San Antonio, Texas – The Palazzo is a fractured condominium deal in San Antonio,
Texas that included 90 of the 100 units, with the remaining 10 owned by individuals. The property
is a Class A apartment community, constructed in 2007, and located in the Medical Center area of
Northwest San Antonio.
(SPIRE US acquired a 50% interest)
Huntcliff Portfolio, Houston, Texas – this portfolio of three multi-family properties built in the mid
1980’s, and totaling 738 units, was sold in Q1. The portfolio was originally acquired in 2007 in partnership
with Venterra Realty (SPIRE US owned a 5.56% interest). A significant value-add strategy was ultimately
completed, making it an ideal time for disposition. Since acquisition, the leveraged IRR achieved on this
portfolio was approximately 18%.
Potential Multi-Family Dispositions in 2016 – three other multi-family properties owned in partnership
with Venterra Realty have been earmarked for disposition in 2016. Our strategy is to dispose of certain
B class assets which are older, require significant capital expenditures and are located in smaller markets
while the investment market remains very strong for these asset types.
144 & 156 Second Street, San Francisco, CA – The elevator modernization project for 144 Second Street
was completed in Q1 as part of our capital improvement program. Remaining projects for the year include
upgrades to the fire system, access control system, and mechanical system. Both 144 and 156 Second Street
are 100% leased and are located in the very sought after South of Market (SoMa) neighbourhood near the
Transbay Terminal. Our capital program for these assets will contribute to both tenant retention and ensure
the property remains at the top of the competitive set.
Our strategy going forward is to acquire multi-family properties with our partner (Venterra Realty) in combination with well-located
commercial assets with secure cash flow in major markets, such as Seattle. We have multiple acquisitions in the pipeline which we hope to
report on next quarter.
s
Disclaimer
$100,000 Invested Since Inception
$200,000
$200,000
$182,983
$180,000
$180,000
$160,000
$160,000
$140,000
$140,000
$120,000
$120,000
$100,000
$100,000
2010
2010
2011
2011
N I C O L A C R O S B Y R E A L E S TAT E
2012
2012
2013
2013
2014
2014
2015
2015
2016
2016
•Nicola Crosby is a subsidiary of Nicola Wealth Management
•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.
•Distributions are not guaranteed and may vary in amount and
frequency over time.
•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, 2016.
• sSPIRE US was set up in July 2007 but opened to investors in June
2010. All returns are calculated from June 2010.
•+Returns are calculated on a monthly basis and may differ from
client returns which are updated with a 1 month lag.
W W W. N I C O L A C R O S B Y. C O M