PARKMONT IMPACT INVESTMENTS PARTNERSHIP. Residential & Commercial Real Estate Assets Urban Neighborhoods & Town Redevelopment Centers New York Tri-State Region For General Information Only Peter M. Amari, President Parkmont Capital, LLC Established in 2005 www.parkmontcapital.com 138 West 25 th St., 11 th Floor, New York, NY 10001 73 Washington St., Suite 100, Bloomfield, NJ 07003 Tel: (646) 448-0780 / (973) 250-5468 Registered Investment Adviser Court-appointed Receiver NJ&NY Licensed Real Estate Broker NJ&NY
Equity & Debt Capital Invested in Real Estate Assets Impact Investments in Urban Neighborhoods and Town Centers Impact Investments in real estate in the highly urbanized New York and Northeast Corridor take place in city neighborhoods and town redevelopment centers. They consist of equity and debt deployed into affordable housing and mixed use properties: upgrade and stabilization of one-to-four family homes, multifamily residences, retail centers; adaptive reuse of obsolete and unused office and industrial properties by conversion to beneficial uses in business expansion, education and training, health and fitness facilities. Impact investments deliver tangible benefits to investors and communities: satisfactory returns on capital employed, value added in housing, services, businesses and employment. Impact investments thrive on private sector practices: acquisitions at economic value, prudent financial structures, and efficient management. They deliver a triple bottom line: (1) principal payback and satisfactory returns to investors in a medium term cycle; (2) beneficial uses that sustain services, businesses and employment; (2) environmental benefits via green and efficient standards in physical upgrades and in redevelopment. 2
Impact Investments in Urban Neighborhoods & Town Centers Equity & Debt Capital Allocations to Real Estate Assets Investment Cycle: Buy - Build - Manage - Realize Value. Management Allocation Market Region Impact Value Portfolio Parkmont, as managing partner, and impact investment + private equity and debt partners, to acquire, build-up, manage, and realize value. $1M-to-$5M per transaction with 1:1 / 2:1 debt/equity. $10M-$25M deployments can be realized via bundled purchases and staggered build-up projects. Single and multi-family, mixed use retail, urban college student housing, medical & professional office, and more uses beneficial to businesses and communities. New York Tri-State urban and commuting centers; and, selectively, urban and metro centers near transportation nodes along the Northeast Corridor. Investments deliver upgrades in housing, shopping, and primary services of food, health care, banking, and employment in a medium term investment cycle. Investment partners earn current income + realized value for a 12-15% IRR. Managing partner realizes value through sale/recap with funds and institutions. Partners can build-up a portfolio of impact investments with participation by institutional investors, and sustain continuing growth in new assets and projects. 3
Parkmont: Managers - Financiers - Builders - Owners. Receivership & Property Management Partnership New York Metro Multifamily - Retail - Office Parkmont Capital LLC, a real estate finance, investment and management firm, acts in partnership with Safeguard Realty Management Inc., a property management company in New York with 20 years of activity in Manhattan and the boroughs for multifamily, office, and retail assets. Peter M. Amari is president of the JV company based in Bloomfield NJ which manages the growth in receiverships and assets under management in NJ-CT-PA. The JV partnership provides integrated asset and property management, leasing and brokerage services: rents, payments, reporting, accounting, sales. Jointly, the two companies manage more than 100 properties and continue to add assignments working with lenders, attorneys, and brokers. Peter M. Amari, President Safeguard Realty Mgt. NJ, LLC / Parkmont Capital, LLC Property Management / Real Estate Finance / Private Equity Registered Investment Adviser, Court Appointed Receiver Licensed Real Estate Broker, States of NY and NJ N.J. Office: O: 973-658-5255 / F: 973-771-5048 73 Washington St., Suite 100 Bloomfield, NJ 07003 N.Y. Office: O: 646-734-6678 / F: 646-304-5980 138 W. 25th St., (11th Fl) New York, NY 10001 4
IMN FORUM - Day Two: Friday, June 4, 2010 MULTIFAMILY RENTAL INVESTMENT PANEL Peter M. Amari, President Parkmont Capital, LLC Parkmont Market View on Multifamily Investments (PDF) http://www.parkmontcapital.com/images/imn_re-pe_forum_nyc_-_multifamilypanel_-_june3-4_10_--_composite.pdf 5
Multifamily assets suitable for impact investments upgrade and stabilization. Sample of properties held under management - New York Metro. 6
Multifamily Affordable Housing New York Metro Investment Rationale and Value Creation Investment. $1 to 5M to acquire multifamily urban properties of 10-50 units and up to 100 units in larger assets to $10M. Properties are typically high rise, town houses, brick, and brownstone walk-ups. Rationale. Focus on properties that are in distress, receivership, foreclosure, or REO by banks. Acquire notes or properties at economic value in respect of neighborhood, upgrade requirements, sustainable rental rates. Strategy. Upgrade physical structure: lighting, boilers, roofs, etc. Renovate interior of apartments with upgraded fixtures, ceilings, floors, walls etc. Lease up at market rates for the neighborhood and community. Value. Utilize available public sector funds in energy efficiency and retrofits. Stabilize rental income for apartments and ground retail in line with recurrent expenses in utilities and in debt payments (if any). Manage asset(s) to full occupancy and retention. Refinance or sell in 1-2-3 yrs. for 10-12-15% IRR. 7
Single-family assets suitable for impact investments upgrade & stabilization. Sample of properties held under management - New York Metro. 8
1-4 Family Affordable Housing New York Metro Investment Rationale and Value Creation Investment. $1 to $5M to build-up portfolio of 1-4 family homes in urban neighborhoods and metro communities. Properties are typically 40-75 year old row homes, converted single family, and single family ready for upgrades. Rationale. Focus on properties in distress, receivership, foreclosure, or REO by banks. Acquire notes or properties at economic value in respect of neighborhood, upgrade requirements, and sustainable ownership costs. Strategy. Upgrade physical structure: exterior improvements to roofs, walls, driveways; interior improvements to ceilings, kitchen, bath, lighting, heating, etc. Stabilize home ownership in line with affordable total costs. Value. Utilize available public sector funds in energy efficiency, retrofits. Upgrade & stabilize home(s) in line with total ownership costs of upkeep and mortgage payments. Manage asset(s) through stabilization. Refinance or sell in 1-2 yrs. for 10-12-15% IRR, or hold in portfolio for a longer term. 9
Impact Investment in Urban Neighborhood Pennington Shopping Center, Trenton, NJ $6.2M Acquisition & Management by Parkmont Capital, LLC, 2007 Property Acquired by Parkmont Capital LLC with NDC Capital (NYC) as equity partner and Morgan Stanley as debt partner Parkmont is managing partner for investment, finance, management, and value realization http://www.parkmontcapital.com/realestate/transactions.html 10
Pennington Shopping Center -- Trenton, NJ Inner City Neighborhood: lease-up to tenants in banking and local services to deliver ready access to community of new affordable housing units built around Center. Investment Rationale and Value Creation Investment: 60,000 sq. ft. local shopping center built in 2003 at $6.8M cost; additional ½ acre developable lot included; vacancy rate is 10%; 200 new apartment units around the center. Rationale: underserved city neighborhood; purchase price below buildout cost; stable tenants; vacant store--lease at market rates; land parcel for development of additional 3,500 sq. ft. Strategy: invest in site safety & cleanliness; improve tenant mix (e.g., bank branch, pharmacy); lease vacant parcel to single tenant; control operating costs via efficient management. Value: anchored by a supermarket, the Center is ahead of pro-forma with current income payments to investors. Vacancy is low and stable, with new affordable housing all around. Hold up to 5 years with new tenants and new affordable housing completed. Expected IRR: 18-20%. 11
Managing Director Peter Amari, President Parkmont Capital, LLC Registered Investment Adviser Court-appointed Receiver Asset & Property Manager Licensed real estate broker www.parkmontcapital.com Parkmont Team Frank Belgiovine (Project Construction and Completion) David Hellman Vincent Amari Kristen Ford (Site Development and Management) (CFO, Private Equity, Capital Markets) (Single-family Assets, Note Purchases) Donn Reinelt (Fund Allocations, Investor Relations) i 12
Parkmont Impact Investments Partnership PARKMONT TEAM Peter Amari has 30 years of experience in real estate finance, investment and management. As an executive with Chase Manhattan and other large banks, he underwrote project loans for major developers in the US and managed a portfolio in excess of $1B. As an executive on Wall Street for real estate capital markets, he financed net lease projects at an investment firm that first developed net lease finance & securitization. He has complementary experience in public sector real estate finance as a director in the U.S. HUD Program in NJ for multifamily and mixed use projects in urban sites. M.A. in Urban & Regional Planning at Rutgers University. Frank Belgiovine has built 2.5M sf of residential, commercial, and educational space In his 30 years of experience in the New York Metro and Pennsylvania region. He has built as general contractor and as developer with green certification; he has acted as consultant and as manager to private and public sector projects for commercial and institutional owners: developers, banks, architects, government agencies, and educational institutions. He holds an extensive network of contacts via the construction and supply industry, commercial brokers in the private sector, county and municipal officials in the public sector. David Hellman has 25 years of experience in real estate for shopping centers and mixed use residential assets. As Director of Acquisitions with Pasbjerg in NJ, developer and owner of 1.3M sf. shopping center portfolio, he managed project development & completion: site selection and acquisition through negotiations, due diligence, and finance. He has navigated successfully government approvals and utility agreements, and selected project design and development teams. He has access to projects, developers, and investors in New York and Pennsylvania. David holds a B.S. in Management from the Business School at Seton Hall University. 13
PARKMONT TEAM Kristen Ford has nearly 15 years of experience in residential real estate and in financial planning: co-investor and portfolio manager in 1-4 family homes; financial planner for liquid investments and asset allocation. She is founder of Shaman Financial LLC, a start-up fund for purchase of distressed notes and bank REO to sustain home retention: experienced in the practices of acquisition, monetization and disposition specific to 1 st and 2 nd mortgage notes. Worked as financial planner at Lincoln Financial in CA and Wachovia Securities in NJ. Studied at Cal Berkeley and Cal State S. Francisco; B.S. College of Business, Finance. Vincent Amari has 30 years of experience in finance as analyst, banker, and adviser: project finance, growth capital, bank debt underwriting and loan portfolio management. He is a Chartered Alternative Investment Analyst: private equity, real estate, and structured finance. With Parkmont he acts as CFO and positions the firm as catalyst and partner in acquisitions and development projects. Worked on the line at Chase Manhattan Bank for 10 years in US Corporate and Europe Institutional Groups; attended NYU GBA for an advanced program in corporate finance & security analysis. PhD in Modern European Languages at Columbia University. Donn Reinelt has 30 years of experience as a business consultant and strategist to institutional investors, family offices, endowments and foundations. As a Chartered Alternative Investment Analyst he specializes in private equity, real estate, hedge funds and indexes and focuses on capital allocations. In investor relations, he focuses on operating effectiveness of investments with risk mitigation in for-profit funds, and on the alignment of mission & investments in not-for-profit sector funds. Donn holds a BS in Civil Engineering from the University of Michigan and an MBA in Finance from the University of Chicago. 14
Parkmont: Managers, Financiers, Builders, Owners. 27 th Street, NY 137 th Street, NY Reade Street, NY MULTIFAMILY Bayonne NJ Orange NJ Charles Street, NY 15
PARKMONT: Financiers, Managers, Builders, Owners. Commercial Office - Development Trenton NJ Oradell, NJ Holland, MI New York Metro Development Hazlet, NJ 16
Investment Allocations to Residential & Commercial Real Estate City Neighborhoods and Town Centers New York Tri-State Region Parkmont Impact Investments Allocations & Execution The Parkmont Partnership invests $1M to $5M per transaction with 1:1 / 2: 1 debt/equity ratio: one-to-four family homes, multifamily residences, retail centers, and special use assets beneficial to communities and businesses in a medium term investment cycle. $10M-$25M deployments are feasible via bundled purchases and staggered build-up projects. Investment partners earn current income + realized value for a 12-15% IRR in a medium term cycle. Managing partner realizes value via sale or recapitalization. Parkmont as managing partner holds a proven track record in working with impact investment and smart growth real estate: acquisitions and ownership; finance and investment; construction and completion; management and sale. Investment and execution practices integrate acquisitions on economic value, equity+debt finance with low leverage; green upgrades and redevelopment; hands-on management responsive to investors and to community; cash flows and value realization. 17