Investment Management

Investment Management
Delivering Results
Navigating Solutions
HOUSTON | AUSTIN | SAN ANTONIO
NAI Partners
Investment Management
PCR Investment Fund I has been organized by NAI Investment Management, LLC and
the partners of NAI Partners to invest in office and industrial multi-tenant properties in
Houston, Austin, and San Antonio that:
• Can be acquired at prices substantially below replacement cost
• Are currently generating (or with repositioning or additional leasing at market rental rates would generate)
positive cash flow after debt service payments
• Offer the prospect of significant cash flow and appreciation over a projected holding term of four to six years
Investment Strategies
• Acquire value add multi-tenant Office or Industrial Properties in Houston, Austin, and San Antonio
• Acquire quality properties in exceptional locations at significant discount to replacement cost
• Diverse portfolio with 15-20 assets in multiple markets
• Primarily “off-market” properties that have been mis-managed or under capitalized
• $10 million - $20 million purchase prices that fall below the interest of institutional buyers
• Conservative debt amount of 60-65% of purchase price
• Targeted 12-15% IRR
NAI Partners Target Markets
Austin, TX
Houston, TX
San Antonio, TX
NAI Partners is one of the largest commercial real estate
firms in Houston–focused on the purchase, sale, and
leasing of office and industrial properties, representing
corporate clients, managing office and industrial
properties, and providing construction management
services. NAI Partners has eleven partners, all of
whom are senior office and industrial real estate
professionals, and over 80 total employees with
revenue in 2013 exceeding $20 million.
PCRIF is being formed as an investment vehicle to
exploit the knowledge, expertise and deal flow within the
existing NAI Partners operations and professionals.
Through various investment vehicles, the partners in
NAI Partners have invested their own capital and raised
additional capital in individual partnerships since 2000.
The projects exceeded $50 million in combined value.
Why NAI?
• Top office and industrial brokers, with extensive knowledge of the ever-changing market conditions,
knowledge of properties in the markets, and large volume of deal flow.
• In house property management and project leasing
• Investment management executive with nearly 20 years of experience partnering with institutional equity
sources to acquire, asset manage, and dispose of investment properties in Texas and throughout the
country.
• Long term relationships with the primary Investment sales brokers in Houston
Fund Structure
$63 M
+
$7 M
Seed Fund
+
JV Equity
Source
$130 M
$200 M
=
Debt
Buying Power
Summary of Terms
Seed Fund Size
$7 million in private equity - 5% from NAI partners
Minimum Investment
70 shares of $100,000 each
Investor Returns*
8% preferred return, 75/25 split after payment of preferred return and return of capital
Investment Period
8 years with 2 years of extensions at Managing Partners’ discretion
Distributions
Quarterly, subject to reserves
Fee Structure*
Acquisition Fee of 1% of purchase price
Disposition Fee of 1% of sales price Annual Asset Management Fee of .75% of invested equity, paid quarterly
*T
he investor returns and fee structure are estimates of market amounts for these items. The exact amounts will be determined by an agreement
between NAI Investment Management and the potential JV Equity source chosen for each deal.
Acquisition Structure
Disposition Structure
35%
Property Cash Flow
and Disposition
65%
PCRIF
$
$350,000 Equity
(10%)
JV Equity Partner
$
$3,150,000
Equity
Lender
$
10% of
75% of Profits
8% Pref +
return capital
90% of 75%
of Profits
$6,500,000 Debt
Loan Balance
(90%)
NAI
Investment
Mgmt
PCRIF
JV
Equity
Partner
Lender
Acquired Property
• Property - Acquisition of a $10 million office building
• Capital Stack - 65% Debt, 35% Equity. $6,500,000 Debt and $3,500,000 in Equity
• Equity Contributions - 10% PCRIF and 90% JV Equity Partner. $350,000 PCRIF and
$3,150,000 JV Equity Partner
HOUSTON | AUSTIN | SAN ANTONIO
Rob Evans
Senior Vice President
Investment Management
+ 713 985 4604
[email protected]
NAI Partners
+ 713 629 0500
1900 West Loop South, Suite 500
Houston, Texas USA 77027
This presentation is for general information only. No information, forward looking statements, or estimations presented herein represent
any final determination on investment performance. While the information presented herein has been researched and is thought to be
reasonable and accurate, any real estate investment is speculative in nature. NAI Partners, and/or its agents cannot and do not guarantee
any rate of return or investment timeline based on the information presented herein. By reading and reviewing the information contained
herein, the user acknowledges and agrees that NAI Partners, and/or its agents do not assume and hereby disclaim any liability to any
party for any loss or damage caused by the use of the information contained herein, or errors or omissions in the information contained
herein, to make any investment decision, whether such errors or omissions result from negligence, accident or any other cause. Investors
are required to conduct their own investigations, analysis, due diligence, draw their own conclusions, and make their own decisions. Any
areas concerning taxes or specific legal or technical questions should be referred to lawyers, accountants, consultants, brokers, or other
professionals licensed, qualified or authorized to render such advice. In no event shall NAI Partners, and/or its agents be liable to any
party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of any information contained
herein. NAI Partners, and/or its agents specifically disclaim any guarantees, including, but not limited to, stated or implied potential profits,
rates of return, or investment timelines discussed or referred to herein.
HOUSTON | AUSTIN | SAN ANTONIO
www.naipartners.com