HARBOUR REALTY PARTNERS

HARBOUR REALTY PARTNERS
Harbour Realty Partners
Harbour Realty Partners (“HRP”) is an integrated real estate investment firm specializing in the acquisition,
management and disposition of apartment communities across the United States.
Harbour’s key principals average more than 20 years of commercial real estate experience. This includes the
acquisition and/or development, and management of over 7,100 multifamily apartment units, of which
approximately 4,000 are still overseen by Harbour’s asset management team.
HRP seeks to acquire apartments at valuations below replacement cost that generate strong current cash flow.
Harbour is a real estate investment firm dedicated solely to investment in apartment communities.
Harbour’s management team has acquired, and/or developed, and managed over 7,100 multifamily units over the past seven years.
Equity Co-Investment
To allow individual investors the capability of
investing in larger, institutional-quality assets, HRP
aligns with institutional partners who will co-invest
up to 90% of the equity required for asset
acquisition.
The co-investment structure provides the following
advantages:
• Equity Leverage - Through participation with
HRP, individual investors are able to invest
alongside major institutional real estate partners.
$10 million in investor equity will create a total
equity pool of up to $100 million, amassing up to
$300 million in buying power (see Fig. 1).
• Diversification - With this expanded purchasing power, HRP is able to acquire a wider range
of assets, allowing both geographic and asset
diversity.
HRP Acquisition Strategy
Equity Participation
HRP
JV Partner
General Partner
Institutional
Partner
10%
90%*
Fig. 1
Debt
Acquisition Value
Lenders
Banks,
Freddie Mac,
Fannie Mae
70%**
$300 million
*Assumes 90-10% co-invest. Range is 5-20%
**HRP allows maximum debt leverage of 75%
• Dual Due Diligence - HRP, and its institutional
co-investment partner(s), perform separate and
extensive due diligence on every asset acquired for
our investors. This added level of scrutiny
augments the underwriting process and thus
investment performance.
• Deal Flow - HRP’s alignment with its institutional
co-investment partner(s) enhances the credibility
of HRP in the marketplace. These relationships
increase the probability of identifying off-market
asset acquisitions which creates opportunities for
better pricing and execution.
Multifamily Investments
Asset and Property Management
Multifamily investments have consistently outperformed
the three other major real estate asset classes over the
past 30 years.
Harbour’s asset management team has over eighteen
years experience in real estate portfolio management
for both individual and institutional partners. Investors
in HRP Funds receive quarterly distributions, property
level reporting, annually audited fund level financials
and access to property financials via private web-based
accounts.
During the recent real estate cycle, many multifamily
properties were acquired with the expectation of rapid
asset appreciation through rising rents. In fact, the
housing bubble, which created significant inventory of
low-cost housing coupled with readily available subprime
debt, converted many traditional renters into
homeowners. Higher vacancies put downward
pressure on rents. As a result, property valuations
have decreased to levels last seen over five years ago.
Furthering the institutional quality of Harbour’s real
estate platform is our alliance with two of the country’s
top third-party managers of multifamily properties, who
will provide property management services for the
majority of apartment communities in the portfolio.
HRP believes that demographic changes, together with
economic recovery, will produce a substantial increase in
demand for apartments over the ensuing twenty years.
Market Strategy
Competition for quality assets in the gateway markets
is dominated by the largest institutions in the industry,
which drives prices up and returns down. HRP’s
strategy is to target major secondary markets where
strong economic drivers, including job and
population growth, are present and projected to be
positive. HRP targets primarily Class B to B plus assets,
which are typically more resistant to competition from
newer Class A apartment developments. HRP seeks to
acquire assets in our target markets with better spread
differentials between cap rates and debt, thereby
enhancing cash flow.
Adding to the attractiveness of multifamily investment
are the following demographic and supply-side
attributes:
• The development pipeline for new apartment product
is at an historical low point
• Unlike other asset classes, GSE’s, banks and insurance
companies readily provide financing for the multifamily
properties
• U.S. home ownership is decreasing to below historical
average (see Fig. 2)
• Renter pool projected to dramatically increase as Echo
Boomers and immigration fuels demand for rental
housing
The combination of new household formations and the decrease in home ownership will dramatically
increase the number of renter households over the next five+ years.
Fig. 2
number of renter households over the next five+ years
1,100,000
962,500
825,000
687,500
additional
renter households
550,000
412,500
275,000
137,500
2008
2009
2010
2011
2012
2013
2014
2015
0
home ownership
rate
Patrick Beach, CEO
Mr. Beach has been involved in multiple real estate investment funds and offerings,
both with institutional and individual investors over the past 25 years. Mr. Beach
has sponsored twelve private and public real estate investment funds and
partnerships including the initial public offering of Captec Net Lease Realty, Inc.
(formerly NASDAQ: CRRR). As Chairman of the Board of Directors and Chief
Executive Officer of Captec Financial Group, Inc., he led the company in the
acquisition and/or development of over 7,100 multifamily units, and oversaw the
origination and servicing of over $2.5 billion in net lease real estate acquisitions
and specialty mortgage loan originations.
Timothy Young, Managing Director
Mr. Young brings nearly thirty years of investment experience to Harbour.
During his career he has acquired, developed, financed and sold approximately
$3.5 billion in commercial real estate assets in the U.S. and international
markets. Mr. Young oversees key institutional relationships and is involved with
acquisitions, financing and dispositions for HRP.
Joanna Zabriskie, CIO
Ms. Zabriskie has over twenty years experience in underwriting and asset
management in the real estate industry. For the past seven years, she has
acquired and managed a $750 million portfolio of multifamily assets
throughout the United States and developed an institutional-quality investor
relations platform. Ms. Zabriskie manages the underwriting, financing,
disposition and investor relations for HRP.
David Rottman, Director
Mr. Rottman brings over a decade of real estate experience as both an
investor and advisor. As former vice-president of a large real estate securities
sponsor specializing in 1031 exchanges and other tax advantaged real estate
strategies, he was responsible for equity allocation for wealth managers and
their clients interested in real estate investments. Mr. Rottman possesses his
FINRA 7, 22, 63 licenses. His principal duties include capital formation for the
company’s acquisition activity as well as Investor Relations.
Contact
David Rottman
[email protected]
Tel. 805 962 0400 x 106
Harbour Realty Partners, LLC | 25 East Anapamu Street | Santa Barbara | California | 93101 | www.harbourrp.com