Preserving Capital while Creating Wealth ABOUT THE BANYANTREE GROUP
BanyanTree Group is a nimble private real estate investment company focused on investing in well‐located income producing multi‐family and commercial real estate properties in California, Nevada, Arizona, Texas and Florida.
The investments we pursue offer attractive in‐ place cash flow and the ability to create additional value through renovation, repositioning and re‐branding.
BanyanTree Group invests its own equity alongside both institutional and private equity investors who are aligned with our goal of Preserving Capital while Creating Wealth through carefully selected investments with superior risk‐adjusted returns
Preserving Capital while Creating Wealth COMPANY VISION COMPANY CORE VALUES
Ethical Achieve the highest possible standards and be the Ethical and transparent business dealings preferred choice for all stake holders in our business Diligent and within our market area Diligence, hard work and utmost care
Innovative Innovative and creative solutions
Committed Commitment to performance and quality
Trustworthy Trust amongst all stakeholders
COMPANY MISSION
Preserving Capital while Creating Wealth
C INVESTMENT PHILOSOPHY
BanyanTree Group’s investment philosophy is driven by its goal of Preserving Capital while Creating Wealth achieved through disciplined investments in assets with superior risk‐adjusted returns
Our approach is founded on the following convictions:
Real Estate markets are inherently inefficient ‐ price does not necessarily equal value ‐ this allows skilled and patient investors to acquire assets at prices below inherent value and monetize assets at a prices above value
Adverse and favourable market conditions occur with increasing regularity. Appropriate use of flexible leverage and maintaining adequate liquidity provides the ability to withstand market shocks, and to take advantage of associated market opportunities
A well‐defined investment plan that contemplates possible courses of action under adverse circumstances with disciplined and pro‐active asset management that evolves to reflect changing circumstances is key to managing and mitigating risks
Risks that can result in significant loss of capital must be completely avoided
Preserving Capital while Creating Wealth COMPETITIVE ADVANTAGES
Existing Relationships & Off-market Deal Sourcing Ability: . Extensive and deep rooted network of relationships across the industry developed over Niche Market Focus: 25 years . Late recovery markets . Enabled the team to participate in negotiated off‐ . Markets dependent on energy market situations
On-ground Local Presence: Motivated Team with no . Offices in San Francisco, Houston Legacy Assets: and New York • Meaningful co‐investment from the team that is not burdened by legacy assets allowing it to fully focus on future investments Technology Savvy: • Tech savvy team experienced in intelligent revenue Experienced Management management, use of Team: social media etc . Acquired or overseen acquisition of $2.7 billion of real estate assets . 84 properties (21,471 multifamily units, 5.0 M SFT commercial space) Proven Investment Credentials: • Continuation of existing successful and proven investment strategy
Preserving Capital while Creating Wealth STRATEGY
BanyanTree Group employs a data carefully, underwrite realistically, driven approach to understand structure conservatively, and economic conditions, monetary & fiscal opportunistically acquire well located policy, analyse forecasts, demographic underperforming and undervalued trends, rental rates, assets. vacancy/occupancy data, absorption Upon acquisition the team implements trends, replacement costs and a well‐defined investment plan with supply/demand conditions, to select disciplined and proactive asset markets that exhibit superior growth management that evolves to reflect potential. changing circumstances by finding We combine this information with creative solutions to unforeseen or un‐ intimate local knowledge and local anticipated challenges operational experience to select
Preserving Capital while Creating Wealth INVESTMENT CRITERIA – Multi-family
BanyanTree Group will focus on well located garden style multi‐family properties comprising more than 250 units that provide an opportunity to increase NOI at a rate faster than the overall market in the initial two to three year period of ownership. We will focus on markets with strong near‐term demand and limited near‐term supply.
More specifically we will acquire properties that meet the following criteria: Geographic Focus
Size $10 million +
Age: 10 to 30 years ‐ Class: B‐ or better
Dated physical plant, amenities and unit interiors that do not meet the standard and requirements of today’s renters
Are inferior or are of lesser quality then the overall sub‐market
With rents that are lower than comparable properties and materially lower than competing or better quality properties
Price significantly below today’s replacement costs
Where rents can be increased higher than inflation in the first three years of ownership through renovation and repositioning of the property
Preserving Capital while Creating Wealth INVESTMENT CRITERIA – Workforce Housing
There is a growing recognition of the need for workforce housing. According to data from NMHC demand is expected to be for an additional 4.5 million new apartments in the U.S. by 2030. Due to the chronic undersupply of affordable housing investments in Workforce housing offers a high degree of security on the downside. BanyanTree Group will focus on value add C+ assets that are located within commutable distances to major employment centers in areas with high job growth More specifically we will acquire properties that meet the following criteria: Geographic Focus
Size: $10 million to $70 million
Age: 20 to 40 years – Class C+ or better
Locations: Commutable distance from employment centers in high job growth areas
Average Rent: Average annual rent is generally less that 35% of area median house hold Income
Average Price: Average price per unit is generally less that 75 % of area median home price
Physical Plant: Physical plant that may require less maintenance
Amenities Package: Competitive but not over the top amenity package.
Preserving Capital while Creating Wealth EXPERIENCE
DIRECT
8,682 Units 2.7 Million SF $1.3 Billion Multi‐Family Office Equity Invested
OVERSIGHT
12,799 Units 2.3 Million SF $1.4 Billion Multi‐Family Commercial Equity Invested
Preserving Capital while Creating Wealth ELEMENTS OF SUCCESS
Experienced team focused on risk management for Preserving Capital while Creating long-term Wealth
. Management of risk to preserve capital remains BanyanTree Group’s guiding principal
Deal flow pipeline that generates proprietary opportunities
. Extensive real estate relationships developed over 25 years . Local presence in all markets we operate in
Proven hands-on entrepreneurial operating ability
. Twenty‐five years of disciplined and conservative underwriting tested and refined in all cycles of the market . Integrated in‐house team approach (acquisitions, management, construction and marketing) Superior Risk provides the ability to expeditiously and thoroughly evaluate assets and develop and implement value‐enhancing business plans. Adjusted Returns . Maximizing potential through diligent asset oversight and control of day‐to‐day operations
Preserving Capital while Creating Wealth TEAM
Tarak Patolia Manish Shah Founder Partner ‐ Capital Markets
Tarak Patolia is founder and managing principal of BanyanTree Group. Tarak is responsible for Manish Shah is a partner of BanyanTree Group. Prior to joining BanyanTree, Manish served as the firm’s overall strategy, finances, operations and culture. Prior to starting BanyanTree Group, principal and manager of numerous real estate assets including controlling equity, mezzanine from 1994 to 2016, Tarak served as Chief Investment Officer at Sterling Equities, Inc., the family and senior debt investments. His prior experience includes executing a turnaround of a publicly office of the Wilpon and Katz families the owners of the NY Mets. At Sterling, Tarak was tradedcompany,wherehewasresponsibleforbusinessandrealestateacquisitions and involved in the formation, capitalization and administration of five real estate investment funds. divestitures. He has executed private equity transactions for Morgan Stanley and has advised on He spearheaded the negotiation, acquisition, asset management and disposition of over $4 numerous M&A and financing transactions for public and private companies while at Bear billion of real estate and real estate related assets. Prior to Sterling, he was a technical analyst in Stearns and Morgan Stanley. Manish graduated with honours from Harvard LawSchool,and New York and a practicing architect and a real estate developer for companies he founded in his graduated with honours and distinction in two majors from Yale University native India.
Tarak serves on the Board of Directors for National Multi‐Housing Council and is an active member of National Association of Industrial and Office Properties serving on the Capital Markets Forum. He has been a frequent speaker at the International Management Network's James M. Schwartz Opportunity Fund Conferences, National Multi‐Housing Council conferencesaswellasseveral other industry events. Managing Director
TarakreceivedaMasterinBusinessAdministrationdegreeinFinancefromPace University and a Bachelor of Science degree in Architecture from the Centre for Environmental Planning and Technology University in Ahmedabad, India. Jim serves BanyanTree Group as Managing Director and is responsible for sourcing, analyzing and acquiring multifamily properties in Florida. He brings more than 30 years’ experience in real estate to the firm.
Prior to joining BanyanTree, Jim was the Principal of JMS Consulting Associates, Inc., and arranged for the purchase and financing of more than 10,000 apartment unitsnationwide, Paula Newton including more than 2,000 units in Florida. He was previously employed by Waterston Associates, LLC, where he served as Executive Vice President specializinginmultifamily Partner ‐ Asset Management acquisitions and financing. Earlier in his career, he worked at the Balcor Company, a subsidiary of Merrill Lynch specializing in real estate investments on behalf of large corporate and public pension funds, and with the New York State Common Retirement Fund. Paula Newton is a partner of BanyanTree Group, prior to joining BanyanTree, Paula was Chief Operating Officer of Sterling’s Southwest office in Houston, Texas. She was responsible for the Jim holds a Bachelor’s Degree with Honors from New York University and a J.D. Degree from the asset management of over 4,000 multifamily apartments for the Sterling American Funds. Prior University of Michigan Law School. to her affiliation with Sterling, she was the co‐owner and manager of a residential and commercial real estate company and a regional vice president of a large national management company. Paula earned a Bachelor’s and Master’s degree from North‐eastern Illinois University.
Preserving Capital while Creating Wealth TEAM
Maria Guevara Sriram Parthsarthy Research Analyst Financial Analyst
Maria Guevara is a Research Analyst for BanyanTree Group. She joined BanyanTree Group at its Sriram Parthasarathy works as a financial analyst for BanyanTree Group. Sriram has over 10 year inception in 2016 as Executive Assistant to Tarak Patolia, supporting the company in its initial experience of underwriting of real estate and investment properties across all product types as development. She is responsible for market research for underwriting of selected potential well as underwriting mortgage loans and debt instruments. Prior to joining BanyanTree, he investments and preparation of investment recommendations memorandums.Sheisalso worked as an analyst for Fitch Ratings and was involved in rating debt instruments of responsible for coordinating functions of various participants for due‐diligence purposes. Prior infrastructure and project finance transactions. His prior experience includes work as a financial to BanyanTree Group, Maria worked for different companies gaining experience in areas of consultant at a software company to provide mobile solutions for financial institutions. Sriram customer service and support, social networking, logistics operations and bookkeeping. received a Bachelor in Business degree from St. Xavier’s College in Tamil Nadu, India.
Maria studied Psychology at Universidad Jose Matias Delgado in El Salvador.
Mark Kasson Michael Katz Advisor Advisor
Michael Katz is a Senior Partner of Sterling Equities and the Co‐Chief Executive Officer of Sterling Mr Kasson is a Co‐founder of SIG Management, a real estate private equity investor which owns American Funds, with responsibility for the day‐to‐day management of its real estate and operates multifamily and commercial properties, as well as 20,000 acres of land in investments. He is a director on the board of the New York Mets and serves as a trustee of the Pennsylvania and Bonaire (in the Caribbean). He is also a Co‐founder of Docsmit.com, an Northwell Health System, Inc. and the Jewish Child Care Association. Mr. Katz is a Certified Public internet based print and mail service which serves a variety of sectors. AccountantandreceivedaMaster’sdegree in Business Administration fromBernardM.Baruch He earned an MBA in Finance from the Stern School of NYU and a B.S. in Computer Science from College. Lehigh University. .
Preserving Capital while Creating Wealth STRATEGIC PARTNERS
Sterling Equities is a diversified family‐run group of companies guided bythevaluesof Westdale Real Estate Investment and Management has a solid reputation in all disciplines of the partnership and civic responsibility. Its portfolio is focused on holdings in real estate, sports and multifamily and commercial real estate sectors. The company is well represented in the media. Highlights include the New York Mets, SportsNet New York, Real Estate Investment multifamily industry at the national, regional and local levels with affiliations in NMHC, TAA and Portfolios, related real estate services businesses and venture investing. many other related associations. With a proven track record of over twenty years, Westdale has demonstrated the ability to find opportunities, create effective marketing programs, undertake Sterling Equities was founded by Fred Wilpon and Saul Katz as a vehicle to develop and invest in strategic capital improvements and achieve operational efficiencies with multiple classes .real real estate. Sterling Equities has evolved over more than 35 years into a fully integrated real estate. estate operating company focused on the preservation of capital and the creation of wealth. Since 1972, Sterling Equities and its affiliates have purchased or developed over 23.3 million SF Based in Dallas, Westdale and its 1200 employees operate from six regional offices located in of commercial property, 57,800 residential units, 8.7 million SF of retail property and three Houston, Austin, San Antonio, Atlanta, Charlotte, and Chicago. Controlling a capital base in major sports complexes. Since 1991, Sterling has successfully launched and operated five value‐ excess of $4 billion. Westdale has consummated over 300 acquisitions whilecreatinga added real estate funds, acquiring approximately 29,000 residential units, 9.2 million square feet nationwide real estate investment, property management, leasing, and construction firm. of commercial space, and over $1 billion in distressed debt. In addition to its real estate Westdale currently manages or has previously managed equity investments committed by a interests, Sterling has ownership interests in Major League Baseball (NewYorkMets),Media broad base of institutional investors, including many leading global fund sponsors, such as GE (SportsNet New York) and Venture Capital (including Sterling VC and Sterling Select). Capital, CarVal, and Sterling Equities, along with a variety of family offices. www.sterlingequities.com www.westdale.com
Preserving Capital while Creating Wealth Tarak Patolia 2100 Geng Road, Ste 210, Palo‐Alto, CA 94303 D: 415‐358‐0899 | F: 415‐358‐0849 | C: 917‐676‐0655 [email protected] | https://www.banyangrp.com
Preserving Capital while Creating Wealth