2017 john bogdasarian investor summit president · 2018. 10. 31. · “pf3 focuses on providing...
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John BogdasarianPresident
2017
INVESTOR SUMMIT
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“WHY DO YOU DO THIS?”
▪ Create Value > Cost
▪ Generate Passive Income
▪ Investors – Family, Friends, Others
▪ Rule #1 – Don’t Lose Money
▪ Rule #2 – See Rule #1
▪ Ego – The Whole Story
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REAL ESTATE FUND – PF3
▪ 2008 – Market Collapsed
▪ Started with “one-off” deals
▪ Fund structure
▪ Get rich slowly
▪ Consistent cash distributions
▪ Principal paydown
▪ Capital appreciationLaurel Park
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“PF3 focuses on providing
consistent cash distributions
to investors…”
Cash Distributed
to Investors
Year Amount
2009 $85,000
2010 $552,827
2011 $985,282
2012 $1,210,024
2013 $1,927,709
2014 $3,262,577
2015 $4,049,207
Total $17,632,932
2016 $5,560,306
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Results
Operating Income $12,084,717
Operating Expenses ($3,046,331)
Net Operating Income $9,038,386
Depreciation/Amortization ($1,934,442)
Interest Expense ($2,480,161)
Gain on Sale $920,688
Taxable Income $5,544,471
$18,867,320
($5,496,873)
$13,370,447
($2,950,950)
($3,447,071)
$173,725
$7,146,151
2015 2016
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Net Operating
Income
Debt
Service
Cash
Flow
Principal
Paydown
Principal
Balance
Total PF3
Run Rate Overview
$13,421,278 $6,396,644 $7,024,634 $2,617,795 $76,102,794
$63,377,615Total Equity
$7,024,634Cash Flow
11.08%Cash Return on Equity
4.13%Principal Paydown as % of Equity
$4,753,3217.5% Distribution 15.21%Total Return on Equity
$2,271,313Reserve Build
$10,000,000Cash Balance 15.78%Cash Balance as % of Equity
54.56%Leverage
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Future of PF3
▪ “Do the work once get paid forever”
▪ Strategic improvements
▪ Liquidity
▪ Sell and liquidate
▪ Share Transfer Facilitation Program
▪ Buyback from reserves
Park Place Five
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Promanas Team
Brad
McFarlaneVice President
Rachel
MeadowsOffice Manager
Eric
McClellandCFO, Controller
Anthony
TothDirector of
Asset Management
Drew
PearsonAcquisition &
Dispositions
Cheryl
MullinsAccountant
Dennis
MerrickRealtor
Carla
AyersDirector of
Property Management
Christina
LinnMarketing &
Investor Relations
Todd
RadabaughAssistant Controller
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Increasing Occupancy
No New Construction
Rising Rental Rates
New Construction Decreasing Occupancy
New Construction
Decreasing Occupancy
More Completions
Real Estate Cycle
PF3
2009-Present
PF4
2017-2022
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Real Estate Values
Occupancy
Rental Rates
TIME
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PF4 Overview
▪ Capitalize on Real Estate Cycle
▪ We:
▪ Vet 100s of potential projects
▪ Partner with experienced
developers
▪ Put up 100% of capital
▪ Retain 100% control
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PF4 Fund Details
Inception 2017
Target Fund Size $100 – $150 million (gross asset value)
Target Investor Capital $30 – $50 million
Minimum Investor Commitment $100,000
Preferred Return 7%
Management Fee 1.2% (annually)
Promanas Equity 10%
Investment Period Fund closes no later than June 30, 2018
Projected Term 5 years
Projected Returns to Investors 15+%
Asset Types Hospitality, resort, office, residential and industrial
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PF4 Overview
Investors
PF4
Elati HotelTBD
Project #3
TBD
Project #4Observatory
FlatsEtc.
▪ INVEST
▪ $100K / SHARE
INVEST IN
DEVELOPMENT
PROJECTS
▪ NET PROCEEDS
▪ (PROFIT)
▪ RETURN OF CAPITAL
▪ + PREFERRED RETURN
▪ + EXCESS SPLIT
Bank Loan Bank Loan
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Proceeds from Sale
Payoff Debt and/or
Company Obligations
PF4Return 100% of Investor
Capital
Preferred Return on Investor Capital
Promanas Equity
Excess Split
PF4 – Allocation of Proceeds
▪ 7% Preferred Return is Accrued ▪ Promanas equity in the fund
▪ 10% of total investor capital raised
▪ Remaining profits are split:
▪ 90% to Investors
▪ 10% to Promanas
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PF4 – Current Portfolio
Element Hotel
▪ Golden Triangle – Downtown Denver
▪ 157-room Element by Westin
▪ 3 to 5 year timeframe
▪ 20% projected return (per annum)
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Element Hotel
Nearby Projects
▪ 16-story, 302-unit apartment development
▪ 22-unit condo development
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PF4 – Current Portfolio
Observatory Flats
▪ 52 unit condo development
▪ Denver University Campus
▪ 18 to 24 month timeframe
▪ 20% projected return (per annum)
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PF4 – Project Pipeline
▪ Jefferson Park Condos
▪ Reviewing projects daily
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Questions?