The Opportunity In Distressed Real Estate Assets

The Opportunity In
Distressed Real Estate Assets
Contents
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Who We Are
Corporate Mission
Historic Opportunity
Opportunity – Real Estate
Opportunity – Real Estate Related Loans
How We Create Value
Our Transaction Process
Portfolio Strategy
Transaction Structure
Fees
Contact Us
Appendix
•  Management Team
•  Advisory Board
•  A Sample of Our Developments
Who We Are
  Real estate opportunity firm based in Atlanta with offices on the
Mississippi Gulf Coast
  Acquisition Focus: Acquiring distressed real estate and loans
  Service Focus: Helping financial institutions manage, reposition and
dispose of distressed assets
  100 years of commercial and residential real estate experience
  Participation in more than $250 million in projects
  World-class team with extensive knowledge of Southeast markets
Corporate Mission
SunBelt Capital Solutions is focused on generating
significant capital appreciation by acquiring,
improving, repositioning and selling distressed real
estate, real estate assets and real estate related
loans in the Southeastern U.S.
Steve Drown, CEO, SunBelt Capital Solutions
Historic Opportunity
  Real estate assets and real estate-related loans can be acquired at
all-time lows
  Commercial and residential real estate selling at bargain prices
  Real estate-related loans and assets selling for prices which are a
fraction of original values
  Banks, financial institutions and high net worth Individuals need help
turning around distressed assets, loans and REO’s
  SunBelt Capital Solutions has experience and track record
Opportunity – Real Property
Prices of distressed real estate assets nationally are down 40%
from the peak of the boom, according to Grubb & Ellis
  Residential Real Estate
o  Single-family homes, condos and all other types housing developments
  Commercial Real Estate
o  Office, industrial, retail, multifamily and natural resource properties
  Principals of SunBelt Capital Solutions have extensive experience
building, financing and selling CRE and residential real estate
Opportunity – Real Estate Related Loans
About 40% of the $3.4 trillion commercial mortgage market will reach
maturity through 2012, according to Jones Lang LaSalle
  Focus on Notes and Participations in Notes
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Financial instruments collateralized primarily by real estate assets
Loans can be performing, sub-performing and/or non-performing
Banks face regulatory, shareholder pressure to clean up portfolios
Banks need to increase liquidity
Investors are looking for a way out, need to sell at significant discounts
Sunbelt’s partners can enter markets at significant discounts
How We Create Value
  Add capital to facilitate improvements, complete unfinished projects
  Refinance or modify capital structure
  Reposition the property in the marketplace
  Deploy construction, engineering, and architectural expertise
  Resolve legal and permitting issues
Our Transaction Process
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Identify opportunities and serve as lead negotiator
Evaluate the collateral
Assess repositioning opportunities
Supervise judicial action and recovery
Prepare a preliminary holding period budget
Act as property manager until the asset is sold
Market and sell property
Portfolio Strategy
  Focus on commercial and residential real estate in
o  Southeastern United States
•  Acquire and own property
o  Offers by bids through FDIC, HUD and court-approved auctions
o  Direct purchase from financial institutions
o  Buying loans is easier than buying properties outright
  Typical acquisition disposal period - 12 months.
  Selective acquisition criteria
o  Concentration on property types that play to strengths of Principals
Transaction Structure
•  Profits paid pursuant to agreement after an asset is sold and after
all debt obligations and expenses have been paid.
•  Preference return to partners prior to general distribution.
•  Each individual or group of individuals can participate by creating a
Limited Liability Corporation (LLC) for each specific acquisition
opportunity identified by SunBelt.
•  Participation can be in one or more of the identified opportunities.
•  Each LLC shall be a separate entity with a separate operating
agreement that specifies a pro rata share of the profits among
members. SunBelt, or a wholly owned subsidiary of SunBelt, will
serve as the manager of each limited liability company.
Fees
  SunBelt Capital Solutions will receive an administrative fee based
on a percentage of the capital requirements for each opportunity.
  Fees will be paid in advance along with a participant’s capital
contribution to the limited liability company.
  Administrative fee will be used to defer expenses incurred during
the due diligence process (i.e. overhead, travel, attorneys fees,
engineering and architectural review, etc.).
  Other than asset maintenance cost and budgetary items, no other
fees or expenses will be payable from Members.
Contact Us
Atlanta Headquarters
Mississippi Gulf Coast
5607 Glenridge Drive, Suite 430
15255 Poole Street
Atlanta, Georgia, 30342
Gulfport, Mississippi, 39503
404.474.9000
228.863.4660
Website: www.sunbeltcapitalsolutions.com
Appendix
Management Team
Steve Drown, CEO and Management Director
Steve Drown is a commercial and residential real estate developer with more than 30 years
of experience and a broad background in complex development debt structures and lending
arrangements. A co-founder of SunBelt Capital Solutions, Mr. Drown is responsible for the
firm's acquisition, development and financial services strategy. Since early in his career, Mr.
Drown has worked closely with commercial banks and financial institutions in workouts of
distressed projects, non-performing loans and REOs.
CEO Steve Drown
In addition to leading SunBelt Capital Solutions, Mr. Drown is a Managing Partner of The
Poole Street Group LLC, in Gulfport, Mississippi, and Seashore Partners in Seagrove Beach,
Florida and is a partner in SECON, LLC, (South Eastern General Contractors). Both
companies are involved in real estate developments on the Mississippi Gulf Coast and in the
Seagrove Beach area of the Florida Panhandle. Mr. Drown's Florida Panhandle projects
include Tranquility on the Beach Condominiums, Tranquil Shores, Emerald Surf Villas,
Seacrest Villas and Buena Vista, all located in the Seagrove Beach area. Mr. Drown also led
the development and sale of Wind Drift Beach Resort in Panama City Beach, Florida, which
was sold post entitlements and pre-construction. He also was the managing partner of
Crescent Court Condominiums and Jackson Warehouse Condominiums, renovation projects
in Knoxville, Tennessee's downtown Historical District. Mr. Drown holds a Mississippi Real
Estate Broker's License and a Florida Real Estate Broker's License. Mr. Drown earned a
Bachelor of Science degree in Business Administration in Real Estate and Insurance from
the University of Southern Mississippi.
Management Team
Aristide "Arry" Francis LeFeve, Jr.,
Chief Operating Officer and Managing Director
Arry LeFeve is an experienced transactions attorney and commercial and residential real
estate developer with more than 35 years of successful project development. A co-founder of
SunBelt Capital Solutions, Mr. LeFeve is responsible for all operational management and legal
matters for the firm. Prior to joining SunBelt Capital Solutions, Mr. LeFeve helped manage and
develop a series of commercial and residential real estate projects throughout the Southeast,
while maintaining his own limited law practice. He has also served as lead and primary
counsel for a wide range of businesses, including manufacturing, utilities, oil and gas and real
estate development.
Mr. LeFeve helped develop and manage Wind Drift Beach Resort in Panama City, Florida,
Mainsail Condominiums in Destin, Florida and Edgewater Bay in Biloxi. He also developed
Rivers Bend in Gulfport, Shadowlawn in Pass Christian, Mississippi, and was an early member
Arry LeFeve,
of the group that acquired and renovated the Lafayette Hotel in New Orleans. Mr. LeFeve's
Chief Operating Officer other projects include an office building on Natchez Alley in New Orleans, Shagbark Mountain
Development in Pidgeon Forge, Tennessee, Condominiums at Imperial Gardens in Naples
Florida, and SummerWalk Village in Gulfport. Mr. LeFeve is licensed to practice law before all
federal and state courts in Mississippi and is admitted to practice before the U.S. Supreme
Court and the U.S. Fifth Circuit Court of Appeals. Mr. LeFeve earned his Bachelor of Business
Administration degree from the University of Mississippi and received his law degree from the
University of Mississippi School of Law.
Management Team
Mark Boutwell, Chief Investment Officer and Managing Director
Mark Boutwell is a real estate and finance professional with more than 18 years of experience.
At SunBelt Capital Solutions, Mr. Boutwell serves as Chief Investment Officer and Director of
Asset Acquisitions. In addition to his work at SunBelt, Mr. Boutwell is a Managing Partner of
Rio Development Partners, LLC, which specializes in development projects in Florida. Prior to
joining SunBelt, Mr. Boutwell served as Managing Director for PDK Capital Advisors, where he
sourced and underwrote more than $500 million of investment opportunities for the firm on its
own account and on behalf of outside clients. Opportunities included all asset classes of real
estate secured and commercial debt, as well as defaulted CMBS and CDO securities. Prior to
his work at PDK Capital, he was a Partner with L-D Partners, LLC, which developed a 166-unit
high-rise condominium project in Panama City, Florida.
Earlier in his career, Mr. Boutwell worked for Legg Mason Wood Walker as an Asset Manager,
where he held licensees including Series 7 & 66 and held the designation of Accredited Asset
Mark Boutwell,
Management Specialist. Mr. Boutwell also served as a Partner and qualifying party for Palm
Chief Investment Officer Coast Construction, LLC. He also served as a commercial loan officer for First South PCA and
has held various positions with other Commercial Banks. Mr. Boutwell has a Bachelor of
Science degree in Agribusiness and a Master of Science degree in Agribusiness Management,
both from Mississippi State University. Mr. Boutwell has held a Louisiana General Contractor's
License, Louisiana Residential Contractor's License, Mississippi General Contractor's License,
and Mississippi Residential Contractor's License. Mr. Boutwell is also a licensed pilot with the
FAA and holds clearance status for United States Secret Security.
Advisory Board
Front row: William Lack, Steve Duvernay, Wayne Boutwell.
Back row: Hon. James C. Simpson, Jr. and Scott Drown
Advisory Board
Wayne Boutwell, Chairman Emeritus of Advisory Board
Dr. Wayne Boutwell is a distinguished economist with more than 30 years of academic and business
experience. During his career, Dr. Boutwell was an economist for the Department of Agriculture in
Washington, D.C., served as a senior aide to Senator Thad Cochran (R-MS), was President and CEO
of the National Council of Farmer Cooperatives in Washington D.C., and served as President and
CEO of Southern States Cooperatives, Inc. Following his retirement in 2002, Dr. Boutwell became a
Partner in Palm Coast Construction, a family-based home construction company. Dr. Boutwell has
led a U.S. Trade Mission to Africa and Policy Exchanges to Japan and South Korea, and he was a
member of a U.S. Trade Mission to Mexico. He also was an industry advisor during the Uruguay
Round of the GATT (WTO) Trade Negotiations. Dr. Boutwell has served on numerous boards and
advisory councils, including CF Industries, Sun Trust Bank, Mid-Atlantic Board, Atlantic Rural
Exposition, Inc., Mississippi State University Agri-business Institute, Virginia Commonwealth
University School of Business Council, University of Missouri Graduate Institute of Cooperative
Education, Advisory Council on Revenue Estimates of the Commonwealth of Virginia and Advisory
Wayne Boutwell
Committee for Nationwide Insurance. Dr. Boutwell has been the D.W. Brooks Distinguished Lecturer
at the University of Georgia, the E.T. York Distinguished Lecturer at Auburn University, and the
Owen Cooper Distinguished Lecturer at Mississippi State University. His awards include Alpha Zeta
Centennial Honor Roll, CALS Alumni Fellow at Mississippi State University and Man of the Year in
Agriculture presented by Progressive Farmer Magazine. Dr. Boutwell has a Bachelor of Science
degree and a Master of Science degree in Agricultural Economics from Mississippi State University,
and a PhD in Agricultural Economics from Virginia Tech University.
Advisory Board
Steve Duvernay has more than 30 years of experience in providing advisory investment
banking and banking consulting services to the real estate industry. He has been active in all
phases of real estate development, including identifying market opportunities, feasibility
studies, site acquisition, governmental approvals, wetlands permitting and financing. Mr.
Duvernay formed his own firm, Now Realty Advisors, LLC, and provides consulting services in
the Southern U.S. His practice focuses on residential subdivisions, apartments, office parks,
retail complexes, hotels, and housing for the elderly. Earlier in his career, he worked for Mellon
National Mortgage and Clover Construction. Mr. Duvernay has a Bachelor of Science degree in
Management and Finance from the University of New Orleans.
Steve Duvernay
Advisory Board
Hon. James C. Simpson, Jr., Esquire
James C. Simpson, Jr. has more than 30 years of experience as a practicing attorney and served
as a member of the Mississippi House of Representatives for 13 years. Mr. Simpson retired from
the House in 2007 to return to practice law and is currently a Partner in the Montgomery Barnett
Law Firm in New Orleans. Earlier in his career, Mr. Simpson worked as a trial attorney in the Anti
-Trust Division of the U.S. Department of Justice. He also served as Vice President of Land & Legal
Affairs for Guaranty Exploration Corporation, an independent oil and gas exploration firm in New
Orleans. Mr. Simpson received a Bachelor of Science degree in finance from the University of
Southern Mississippi in Hattiesburg and earned a law degree from the American University Law
School in Washington, D.C. He currently serves as Board Attorney for the Long Beach School
District, as Port Commission Attorney for the Long Beach Port Commission and as City Attorney
for the City of Long Beach. He is also one of five Commissioners of the Mississippi State Port at
Gulfport and was appointed by Governor Haley Barbour in 2008. Mr. Simpson is a member of The
Jim Simpson
American Bar Association, Mississippi Bar Association, District of Columbia Bar, Harrison County
Bar Association, and Mississippi Defense Lawyers Association.
Advisory Board
William V. Lack, Jr., AIA
Bill Lack is one of Mississippi’s most respected architects, with 40 years of professional
experience. After going into private practice in 1974, Mr. Lack has been associated with
several firms as senior principal and Architect of Record for numerous projects throughout
the United States. Projects include medical, educational, recreation, housing, commercial,
hospitality, military and correctional facilities of all types. Mr. Lack is partner in SECON,
LLC, (South Eastern General Contractors). He now serves as president of William V. Lack,
Jr., Architect P.A. Mr. Lack is past president of the Mississippi Chapter of the American
Institute of Architecture, and served on the Institute’s Board of Directors. He is a past
member and president of the Mississippi State Board of Architecture and has served as
design grader for the National Council of Architectural Registration Design Exams. He has
received four Awards for Design Excellence from the American Institute of Architects
(AIA), as well as a National Design Award from the United States Air Force. Mr. Lack
received a Bachelor of Architecture from the University of Tennessee and a Bachelor of
Bill Lack
Science degree in Construction Technology from the University of Southern Mississippi.
Advisory Board
Scott Drown has more than 23 years of experience in residential and commercial
real estate development. Mr. Drown is currently CEO of Scott Drown Contracting of
Gulfport, Mississippi, which builds single-family homes, subdivisions and commercial
buildings. Mr. Drown is also a Managing Partner in Brookfield Builders LLC, in Ocean
Spring, Mississippi and Parkland Homes LLC, in Baton Rouge, and is a partner in
SECON, LLC, (South Eastern General Contractors). Earlier in his career, Mr. Drown
was President of Plantation Homes in Gulfport. He also worked for Lare Investments,
Monarch Homes, First American Homes and Crescent Development Inc. Mr. Drown
attended the University of Southern Mississippi. He has a Florida Certified Building
Contractor's License, Mississippi Real Estate Sale License from the National
Association of Realtors and a Mississippi Residential Contractor's License.
Scott Drown
A Sample of Our Developments
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BUENA VISTA
EMERALD SURF
LAFAYETTE HOTEL (NEW ORLEANS)
MAINSAIL
TRANQUIL SHORES
TRANQUILITY CONDOMINIUMS
WIND DRIFT BEACH RESORT
Buena Vista
Buena Vista Condominiums – An estate property on the Gulf of Mexico in a gated community in Seagrove Beach,
Florida. Principals of SunBelt Capital Solutions purchased the land and developed the property, which includes two
adjoining, 4,000-square foot living quarters each with a private pool. www.SurfSerenade.com. This project is being
managed by the principals of SunBelt Capital Solutions.
Emerald Surf
Emerald Surf – A gated complex in Seagrove Beach, Florida. This high-end development with views of the Gulf of
Mexico was built directly on the beach. Principals of SunBelt Capital Solutions developed, marketed and sold the
properties.
Lafayette Hotel New Orleans
Lafayette Hotel – Luxury, five-star hotel in downtown New Orleans. This 45-room, turn-of-the-century hotel is
located at 600 St. Charles Avenue at Gerod Street. One of the principals of SunBelt Capital Solutions participated in
the initial acquisition, financing and historic restoration of the hotel.
Mainsail
MainSail – A beachfront tower and cabana development in the Florida Panhandle city of Destin. This 185-unit complex
was built directly on the Gulf of Mexico. One of the principals of SunBelt Capital Solutions was an initial co-developer.
Tranquil Shores
Tranquil Shores – A residential gated village development in the Florida Panhandle in Seacrest Beach. The
subdivision is located on East County Highway 30A across from the beach. Principals of SunBelt Capital Solutions
purchased the land, secured the entitlements, developed the site with improvements, and marketed the units.
Tranquility Condominiums
Tranquility Condominiums – A residential gated community directly on the beach in Seagrove Beach, Florida.
Principals of SunBelt Capital Solutions developed, built, marketed and sold 20 three and four bedroom units all with
unobstructed views of the Gulf of Mexico.
Wind Drift Beach Resort
Wind Drift Beach Resort – A beachfront, high
-rise condominium development in Panama City
Beach, Florida. This 165-unit, 23-story building is
located directly on the Gulf of Mexico. Principals
of SunBelt Capital Solutions purchased the land,
secured all entitlements for construction,
managed design and permitting, and sold the
entire project to a developer pre-construction.
Contact Us
Atlanta Headquarters
Mississippi Gulf Coast
5607 Glenridge Drive, Suite 430
15255 Poole Street
Atlanta, Georgia, 30342
Gulfport, Mississippi, 39503
404.474.9000
228.863.4660
Website: www.sunbeltcapitalsolutions.com