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Commercial Real Estate Fund
$50,000,000
Notes and Preferred Equity
This is not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any
securities in the Private Placement Memorandum (PPM) of Strategic Diversified Real Estate Holdings, LLC., and may not be relied upon in connection with the
purchase or sale of any security. Interests in the PPM, if offered, will only be available to parties who are "accredited investors" (as defined in Rule 501 promulgated
pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the PPM on their own behalf. Any offering or solicitation will be made
only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety.
Please discuss this, and all financial matters, with your CPA or investment advisor.
The Offering
Risk
Fees
Investors are not subject to any fees
(No purchase, sale, performance or management fees)
Payment Monthly with reinvestment option
Liquidity Investors may cash out at any time
(subject to private placement conditions and management discretion to waive)
Minimum $25,000 minimum investment
Legal http://www.StrategicHoldings.com/ppm
Investment Senior Notes
Preferred
Equity 1-A
Preferred
Equity 1-B
Preferred
Equity 1-C
Coupon 5.25-9.125% 8.5% 10% 12%
Offered $10,000,000 $10,000,000 $8,000,000 $20,000,000
Ultra Low Risk Very Modest Risk
Introduction
SVP, Business Development
• Sharif Shakhshir's experience spans over 25 years
of accomplishments in mortgage capital markets,
fixed income, Consulting and Investor Relations.
• Most recently, he was a SVP with Bank of
America / Countrywide Home Loans responsible
for Investor Relations around collateralization
and performance for legacy RMBS.
• Previously, he worked for a boutique consulting firm, Quantitative Risk
Management, with emphasis on Fixed Income/MBS risk modeling and
hedging techniques working with the largest banks and mortgage
originators in the US.
• Mr. Shakhshir’s education and certification credentials include a
Master’s of Science degree in Financial Engineering from Illinois
Institute of Technology and a Bachelors of Science degree in Finance
from California State University. He is a CFA Level 1 candidate and also
holds the Financial Risk Manager certification via the Global Association
of Risk Professionals.
Invest With Confidence
Realized and Unrealized
Return on Investment (ROI)
(April 30, 2014)
Realized gains on closed portfolio
($11.2 million realized on $82.9 million invested)
36% 1
Unrealized gains on active portfolio
($10.3 million unrealized on $25.9 million invested)
43% 2
1 Annualized ROI
2 Holding Period ROI
Presentation Summary & Key Points
 Strategic Diversified Real Estate Holdings, LLC is a SEC registered real
estate operating company (REOC) which purchases, improves, manages
and services extensively researched, discounted sub and non
performing commercial real estate notes and properties, nationwide.
 For Strategic Holdings, our objective is to maximize net cash flow and
return on investment via strategically selected and deeply discounted
acquisitions, value added asset management and long term
appreciation potential.
 For astute investors attracted to strong, stable, secure income from a
transparent portfolio of real estate with strong fundamentals and cash
flow, Strategic Holdings notes and dividend paying preferred equity
securities are a compelling addition to your portfolio. Investors can
look forward to monthly income with yields far exceeding comparable
risk alternatives.
Portfolio Trends
Portfolio Stratification
Economic Context
Key factors underlying the business model:
Real Estate Prices
Though not solely dependent upon trends in
real estate prices, numerous macro economic
indicators show strengthening in commercial
real estate prices.
Value Added
Research
Our core experience and strategy is to buy and
manage discounted, well-vetted real estate and
notes on real estate.
Mortgage Lending
Lending standards are at historic highs while
interest rates are at historic lows and likely to
increase. Challenges to homeownership
increase rental rates and occupancy.
Occupancy Rates
Cash flow and valuation on the real estate in the
portfolio is directly related to improving
occupancy metrics which we find is often just
good property / tenant management.
Economic Context
Key factors underlying the business model:
Regulatory
Bank capital rules are forcing banks to liquidate
sub and non performing assets else be forced to
hold large amounts of capital against potential
losses.
Special Servicers
These servicers acquire large portfolios of sub
and non performing loans from banks and
frequently hold their own auctions and sell
loans at deep discounts for liquidity.
Default Maturity
Over next 7 years, $2 trillion in commercial
loans will face 7 and 10 year balloon maturity
dates and, due to decreased equity and tighter
lending standards, are prone to default since
they cannot refinance / roll into a new loan.
Mortgage Rates Rising
Multi Family Vacancy Rates Improving
Office Space Vacancy Rates Improving
Delinquency Trends Improving
Maturity Default Risk is Opportunity
Approximately $2 trillion will be maturing over the next 7
years with numerous challenges to refinancing thereby
creating distressed sellers to add to our deal flow.
Invest With Confidence
Management Strength
• Management team has well over 100 years combined
experience in all real estate cycles across commercial,
residential, notes and properties.
• Proprietary industry connections from recurring sellers at
banks and special servicers enable regular deal flow for
investing firm capital.
• Staff has extensive experience in deal sourcing, auctions,
acquisitions of performing, sub-performing or even non-
performing assets, real estate valuation, due diligence,
property management, construction, foreclosure, loan
servicing, asset liquidations, investor relations and other
related skillsets.
Invest With Confidence
Aligned Interests
• Management is economically motivated to prioritize credit
quality, portfolio risk characteristics, robust recurring cash
flow and long term appreciation potential since Strategic
Holdings Management ONLY earns salaries and excess
profits AFTER investors are paid.
• In addition to $2 million funded corporate capital in first
loss position, employees/family members of the company
have personally invested another $1.4 million as preferred
equity shareholders.
Invest With Confidence
Financial Strength
• Investors in Strategic Holdings have been paid every month,
on time and in full since beginning of operations.
• For every $1.00 of cash flow from note and rental income in
the investment portfolio and after payment of all interest
expense and dividends to investors, $.29 still remains as a
cash flow cushion.
• In addition to strong recurring income, there is also an
additional $10.3 million in unrealized profit on held
portfolio of notes and properties with a basis of $25.9
million (43% holding period ROI) available for distributions.
Invest With Confidence
Diversified & Profitable Portfolio
• Strategically selected, extensively researched real estate
assets.
• 32% notes / 68% real estate
• 11 states / 6 different property types
• 36% historical annualized ROI on bought and sold assets
• Current cash flow from notes and properties yielding in
excess of 10%
• Total Investment Basis / Asset Value = 69% (low risk)
• Portfolio acquisition / management strategy and current
holdings available for review on request
Deal Cash Flows
1A - Preferred Equity
1B - Preferred Equity
1D - Management Owned 1st Loss Position
($2 million)
1C - Preferred Equity
InvestmentCashFlows Principal and
Interest
From Notes
Gain On Sale
From Sold
Assets
InvestmentLosses(ifany)
Fixed Rate Notes
Rental Income
From Leased
Properties
Management Company
( 10.3 Million in Unrealized Portfolio Gains )
Management Team
Successful real estate investing requires many skillsets
Strategic Holdings Organization Chart
CEO
Investor
Relations
Business
Development
CFOPresident
Audit
Acquisitions Loan Servicing
Chief Credit
Officer
Asset
Management
Property
Management
Reposition &
Construction
Management
Underwriting
Offsite Onsite
Executive Management
Leadership
• The principals of Strategic Holdings have over 100 years of
combined experience in real estate investments.
• Expertise in the life cycle of real estate investment including
deal sourcing, due diligence, valuations, auctions, financing,
repositioning, construction / property management, cash
optimization and sales.
• We have developed extensive relationships with prominent
real estate professionals, lenders, and vendors critical to
deal flow, financing and property management.
Executive Management
Barry Levenson
Chief Executive Officer
• Over 25 years of experience in executive leadership
positions in companies such as Countrywide Bank,
PennyMac, TDAmeritrade and other companies.
• B.S. in Finance and Real Estate from University of
California, Berkeley and MBA in Finance, Marketing,
and Entrepreneurship from UCLA.
James W. Backner
President and Chief Operations Officer
• Over 20 years of experience in loan origination,
acquisition of distressed real estate and notes,
repositioning of properties, and real estate sales.
Former President of a real estate investment firm,
which specialized in the acquisition, management,
and disposition of distressed real estate
• B.S. in Finance from California State University,
Northridge
Management Team
Brian Allonge
Chief Financial Officer
• Over 20 years of experience in the hospitality and
commercial real estate industry with focus on timely
and accurate reporting of financials as well as debt
and equity raises and highly structured financing.
• B.S. and MBA in Finance from California State
University, Northridge.
John Gaiser
Head of Acquisitions
• Over 24 years of experience in acquisition of
distressed real estate & loans, sourcing potential
investment opportunities, performing pre-acquisition
due diligence and disposition strategies.
• B.S. in Business Administration from Oral Roberts
University
Management Team
Jackie Trojanowsky
Chief Credit Officer
• Over 25 years of lending experience, including 17
years in commercial mortgage-backed securities
(CMBS). Her CMBS experience has included
sourcing, underwriting, special servicing, and asset
management.
• At Strategic Holdings, Ms. Trojanowsky will use her
CMBS experience to establish underwriting policy
and create a small-balance CMBS program. Prior to
joining Strategic Holdings, Ms. Trojanowsky
originated CMBS loans for GE Capital Real Estate for
nine years, underwrote loans for an investor of sub-
investment grade CMBS and underwrote new CMBS
loans for a service provider.
• Ms. Trojanowsky is a graduate of The University of
Texas at Austin, and holds a Bachelor of Business
Administration with double majors in finance and
marketing.
Management Team
Raul G. Gamino
Senior Acquisitions Analyst
• Over 15 years in commercial loan underwriting,
servicing, sales, evaluating potential legal issues, and
reviewing operational income and expense reports.
• B.S. in Finance and Real Property Management from
University of Southern California, Berkeley and Juris
Doctorate from Concordia Law School.
Ryan Cox
Senior Acquisitions Analyst
• Over 10 years of experience in underwriting real
estate acquisition targets, due diligence on distressed
properties, residential multifamily management, and
budgeting.
• Graduate of United States Naval Academy and served
as active duty as a U.S. Navy Seal
Investment Strategy
Desirable assets have the following common characteristics:
• Asset Type
Notes on real property have become very attractive as
an asset class due to embedded cash flow and/or
options to foreclose and then own and manage
properties directly to extract maximum long-term
value.
• Discount
Target acquisitions particularly where “distressed
seller” situation enables our basis to be ~ 65%
realizable value.
• Property Type
Multi-family apartment units are attractive due to
embedded cash flow characteristics and our
experience to invest and improve properties to
generate maximum cash flow and long-term value.
Office space and retail are also dominant assets.
• Cash Flow
Purchase assets with existing cash flow with
opportunities to improve via management,
remodeling, financing, etc.
Investment Strategy
Desirable assets have the following common characteristics:
• Geography
Capital is invested nationwide with targeting in
regions with most profitable balance between local
economies & cap rates.
• Locale
Strategically avoid trophy properties or hot markets.
Instead, opt for secondary markets with stable to
improving fundamentals adjacent to major
cities/employers.
• Leverage
Where prudent, exercise opportunities to pledge
assets for financing opportunities to lower overall
weighted average cost of capital and improve
corporate cash flow.
• Occupancy
Rates
Local occupancy rates that exceed our subject
property rates suggest compelling opportunity to
prudently invest & improve properties, resulting in
increased property appeal, better tenant quality,
higher rents and lower maintenance.
Realized Income
Estimated Gain on Held Assets
Active Portfolio
The Offering
Risk
Fees
Investors are not subject to any fees
(No purchase, sale, performance or management fees)
Payment Monthly with reinvestment option
Liquidity Investors may cash out at any time
(subject to private placement conditions and management discretion to waive)
Minimum $25,000 minimum investment
Legal http://www.StrategicHoldings.com/ppm
Investment Senior Notes
Preferred
Equity 1-A
Preferred
Equity 1-B
Preferred
Equity 1-C
Coupon 5.25-9.125% 8.5% 10% 12%
Offered $10,000,000 $10,000,000 $8,000,000 $20,000,000
Ultra Low Risk Very Modest Risk
Business Outlook
Real Estate is cyclical and evolving and so are the Strategic Holdings
corporate plans. We have in place action plans to maximize
profitability for the following macro economic opportunities and
considerations:
• Interest
Rates
Quantitative Easing must eventually come to an end and,
with that, mortgage and all other interest rates will rise.
Home affordability will be challenged and rental rates will
be stable or grow in properties we target to acquire.
• Lending
Standards
Residential lenders are expected to resume more
accommodative lending standards in the near future but it
is expected that caution will prevail and challenges to
qualifying for a mortgage to buy a house will remain.
• Real
Estate
Prices
With improving vacancy rates, income producing properties
are expected to be stable at a minimum but, with our
strategic purchases, we anticipate material price
appreciation to bolster our balance sheet.
Business Outlook
• Financing
As the Strategic Holdings portfolio size grows, we will
exercise all opportunities to finance the portfolio at the least
cost. We will also aim to securitize cash flows for further
reductions in cost of capital.
• Common
Equity
Long term, Strategic Holdings may consider a common
equity offering as an alternative capital source and to share
our returns with investors.
• Maturity
Defaults
Over the next 7 years, $2 trillion in commercial loans will
face balloon maturity dates and are prone to default thereby
creating enormous profitable acquisition opportunities for
Strategic Holdings.
• Business
Lines
Executive Management at Strategic Holding already has
decades of experience in Commercial Lending. As balance
sheet continues to grow, we intend to deploy capital to
credit worthy commercial loan scenarios which further
strengthen our asset portfolio and cash flow.
Contact
Sharif Shakhshir
SVP, Business Development
Strategic Holdings, LLC
858-829-1605
Sharif.Shakhshir@StrategicHoldings.com
www.StrategicHoldings.com
Disclosures
This is not an Offer to Purchase or Sell Securities. This overview
is for informational purposes and is not an offer to sell or a
solicitation of an offer to buy any securities in the Private
Placement Memorandum (PPM) of Strategic Diversified Real
Estate Holdings, LLC., and may not be relied upon in connection
with the purchase or sale of any security. Interests in the PPM, if
offered, will only be available to parties who are "accredited
investors" (as defined in Rule 501 promulgated pursuant to the
Securities Act of 1933, as amended) and who are interested in
investing in the PPM on their own behalf. Any offering or
solicitation will be made only to qualified prospective investors
pursuant to a confidential offering memorandum, and the
subscription documents, all of which should be read in their
entirety. Please discuss this, and all financial matters, with your
CPA or investment advisor.
http://www.StrategicHoldings.com/ppm

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12% (preferred equity) offered via established Commercial Real Estate company seeking capital for growth

  • 1. Commercial Real Estate Fund $50,000,000 Notes and Preferred Equity This is not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in the Private Placement Memorandum (PPM) of Strategic Diversified Real Estate Holdings, LLC., and may not be relied upon in connection with the purchase or sale of any security. Interests in the PPM, if offered, will only be available to parties who are "accredited investors" (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the PPM on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. Please discuss this, and all financial matters, with your CPA or investment advisor.
  • 2. The Offering Risk Fees Investors are not subject to any fees (No purchase, sale, performance or management fees) Payment Monthly with reinvestment option Liquidity Investors may cash out at any time (subject to private placement conditions and management discretion to waive) Minimum $25,000 minimum investment Legal http://www.StrategicHoldings.com/ppm Investment Senior Notes Preferred Equity 1-A Preferred Equity 1-B Preferred Equity 1-C Coupon 5.25-9.125% 8.5% 10% 12% Offered $10,000,000 $10,000,000 $8,000,000 $20,000,000 Ultra Low Risk Very Modest Risk
  • 3. Introduction SVP, Business Development • Sharif Shakhshir's experience spans over 25 years of accomplishments in mortgage capital markets, fixed income, Consulting and Investor Relations. • Most recently, he was a SVP with Bank of America / Countrywide Home Loans responsible for Investor Relations around collateralization and performance for legacy RMBS. • Previously, he worked for a boutique consulting firm, Quantitative Risk Management, with emphasis on Fixed Income/MBS risk modeling and hedging techniques working with the largest banks and mortgage originators in the US. • Mr. Shakhshir’s education and certification credentials include a Master’s of Science degree in Financial Engineering from Illinois Institute of Technology and a Bachelors of Science degree in Finance from California State University. He is a CFA Level 1 candidate and also holds the Financial Risk Manager certification via the Global Association of Risk Professionals.
  • 4. Invest With Confidence Realized and Unrealized Return on Investment (ROI) (April 30, 2014) Realized gains on closed portfolio ($11.2 million realized on $82.9 million invested) 36% 1 Unrealized gains on active portfolio ($10.3 million unrealized on $25.9 million invested) 43% 2 1 Annualized ROI 2 Holding Period ROI
  • 5. Presentation Summary & Key Points  Strategic Diversified Real Estate Holdings, LLC is a SEC registered real estate operating company (REOC) which purchases, improves, manages and services extensively researched, discounted sub and non performing commercial real estate notes and properties, nationwide.  For Strategic Holdings, our objective is to maximize net cash flow and return on investment via strategically selected and deeply discounted acquisitions, value added asset management and long term appreciation potential.  For astute investors attracted to strong, stable, secure income from a transparent portfolio of real estate with strong fundamentals and cash flow, Strategic Holdings notes and dividend paying preferred equity securities are a compelling addition to your portfolio. Investors can look forward to monthly income with yields far exceeding comparable risk alternatives.
  • 8. Economic Context Key factors underlying the business model: Real Estate Prices Though not solely dependent upon trends in real estate prices, numerous macro economic indicators show strengthening in commercial real estate prices. Value Added Research Our core experience and strategy is to buy and manage discounted, well-vetted real estate and notes on real estate. Mortgage Lending Lending standards are at historic highs while interest rates are at historic lows and likely to increase. Challenges to homeownership increase rental rates and occupancy. Occupancy Rates Cash flow and valuation on the real estate in the portfolio is directly related to improving occupancy metrics which we find is often just good property / tenant management.
  • 9. Economic Context Key factors underlying the business model: Regulatory Bank capital rules are forcing banks to liquidate sub and non performing assets else be forced to hold large amounts of capital against potential losses. Special Servicers These servicers acquire large portfolios of sub and non performing loans from banks and frequently hold their own auctions and sell loans at deep discounts for liquidity. Default Maturity Over next 7 years, $2 trillion in commercial loans will face 7 and 10 year balloon maturity dates and, due to decreased equity and tighter lending standards, are prone to default since they cannot refinance / roll into a new loan.
  • 11. Multi Family Vacancy Rates Improving
  • 12. Office Space Vacancy Rates Improving
  • 14. Maturity Default Risk is Opportunity Approximately $2 trillion will be maturing over the next 7 years with numerous challenges to refinancing thereby creating distressed sellers to add to our deal flow.
  • 15. Invest With Confidence Management Strength • Management team has well over 100 years combined experience in all real estate cycles across commercial, residential, notes and properties. • Proprietary industry connections from recurring sellers at banks and special servicers enable regular deal flow for investing firm capital. • Staff has extensive experience in deal sourcing, auctions, acquisitions of performing, sub-performing or even non- performing assets, real estate valuation, due diligence, property management, construction, foreclosure, loan servicing, asset liquidations, investor relations and other related skillsets.
  • 16. Invest With Confidence Aligned Interests • Management is economically motivated to prioritize credit quality, portfolio risk characteristics, robust recurring cash flow and long term appreciation potential since Strategic Holdings Management ONLY earns salaries and excess profits AFTER investors are paid. • In addition to $2 million funded corporate capital in first loss position, employees/family members of the company have personally invested another $1.4 million as preferred equity shareholders.
  • 17. Invest With Confidence Financial Strength • Investors in Strategic Holdings have been paid every month, on time and in full since beginning of operations. • For every $1.00 of cash flow from note and rental income in the investment portfolio and after payment of all interest expense and dividends to investors, $.29 still remains as a cash flow cushion. • In addition to strong recurring income, there is also an additional $10.3 million in unrealized profit on held portfolio of notes and properties with a basis of $25.9 million (43% holding period ROI) available for distributions.
  • 18. Invest With Confidence Diversified & Profitable Portfolio • Strategically selected, extensively researched real estate assets. • 32% notes / 68% real estate • 11 states / 6 different property types • 36% historical annualized ROI on bought and sold assets • Current cash flow from notes and properties yielding in excess of 10% • Total Investment Basis / Asset Value = 69% (low risk) • Portfolio acquisition / management strategy and current holdings available for review on request
  • 19. Deal Cash Flows 1A - Preferred Equity 1B - Preferred Equity 1D - Management Owned 1st Loss Position ($2 million) 1C - Preferred Equity InvestmentCashFlows Principal and Interest From Notes Gain On Sale From Sold Assets InvestmentLosses(ifany) Fixed Rate Notes Rental Income From Leased Properties Management Company ( 10.3 Million in Unrealized Portfolio Gains )
  • 20. Management Team Successful real estate investing requires many skillsets
  • 21. Strategic Holdings Organization Chart CEO Investor Relations Business Development CFOPresident Audit Acquisitions Loan Servicing Chief Credit Officer Asset Management Property Management Reposition & Construction Management Underwriting Offsite Onsite
  • 22. Executive Management Leadership • The principals of Strategic Holdings have over 100 years of combined experience in real estate investments. • Expertise in the life cycle of real estate investment including deal sourcing, due diligence, valuations, auctions, financing, repositioning, construction / property management, cash optimization and sales. • We have developed extensive relationships with prominent real estate professionals, lenders, and vendors critical to deal flow, financing and property management.
  • 23. Executive Management Barry Levenson Chief Executive Officer • Over 25 years of experience in executive leadership positions in companies such as Countrywide Bank, PennyMac, TDAmeritrade and other companies. • B.S. in Finance and Real Estate from University of California, Berkeley and MBA in Finance, Marketing, and Entrepreneurship from UCLA. James W. Backner President and Chief Operations Officer • Over 20 years of experience in loan origination, acquisition of distressed real estate and notes, repositioning of properties, and real estate sales. Former President of a real estate investment firm, which specialized in the acquisition, management, and disposition of distressed real estate • B.S. in Finance from California State University, Northridge
  • 24. Management Team Brian Allonge Chief Financial Officer • Over 20 years of experience in the hospitality and commercial real estate industry with focus on timely and accurate reporting of financials as well as debt and equity raises and highly structured financing. • B.S. and MBA in Finance from California State University, Northridge. John Gaiser Head of Acquisitions • Over 24 years of experience in acquisition of distressed real estate & loans, sourcing potential investment opportunities, performing pre-acquisition due diligence and disposition strategies. • B.S. in Business Administration from Oral Roberts University
  • 25. Management Team Jackie Trojanowsky Chief Credit Officer • Over 25 years of lending experience, including 17 years in commercial mortgage-backed securities (CMBS). Her CMBS experience has included sourcing, underwriting, special servicing, and asset management. • At Strategic Holdings, Ms. Trojanowsky will use her CMBS experience to establish underwriting policy and create a small-balance CMBS program. Prior to joining Strategic Holdings, Ms. Trojanowsky originated CMBS loans for GE Capital Real Estate for nine years, underwrote loans for an investor of sub- investment grade CMBS and underwrote new CMBS loans for a service provider. • Ms. Trojanowsky is a graduate of The University of Texas at Austin, and holds a Bachelor of Business Administration with double majors in finance and marketing.
  • 26. Management Team Raul G. Gamino Senior Acquisitions Analyst • Over 15 years in commercial loan underwriting, servicing, sales, evaluating potential legal issues, and reviewing operational income and expense reports. • B.S. in Finance and Real Property Management from University of Southern California, Berkeley and Juris Doctorate from Concordia Law School. Ryan Cox Senior Acquisitions Analyst • Over 10 years of experience in underwriting real estate acquisition targets, due diligence on distressed properties, residential multifamily management, and budgeting. • Graduate of United States Naval Academy and served as active duty as a U.S. Navy Seal
  • 27. Investment Strategy Desirable assets have the following common characteristics: • Asset Type Notes on real property have become very attractive as an asset class due to embedded cash flow and/or options to foreclose and then own and manage properties directly to extract maximum long-term value. • Discount Target acquisitions particularly where “distressed seller” situation enables our basis to be ~ 65% realizable value. • Property Type Multi-family apartment units are attractive due to embedded cash flow characteristics and our experience to invest and improve properties to generate maximum cash flow and long-term value. Office space and retail are also dominant assets. • Cash Flow Purchase assets with existing cash flow with opportunities to improve via management, remodeling, financing, etc.
  • 28. Investment Strategy Desirable assets have the following common characteristics: • Geography Capital is invested nationwide with targeting in regions with most profitable balance between local economies & cap rates. • Locale Strategically avoid trophy properties or hot markets. Instead, opt for secondary markets with stable to improving fundamentals adjacent to major cities/employers. • Leverage Where prudent, exercise opportunities to pledge assets for financing opportunities to lower overall weighted average cost of capital and improve corporate cash flow. • Occupancy Rates Local occupancy rates that exceed our subject property rates suggest compelling opportunity to prudently invest & improve properties, resulting in increased property appeal, better tenant quality, higher rents and lower maintenance.
  • 30. Estimated Gain on Held Assets
  • 32. The Offering Risk Fees Investors are not subject to any fees (No purchase, sale, performance or management fees) Payment Monthly with reinvestment option Liquidity Investors may cash out at any time (subject to private placement conditions and management discretion to waive) Minimum $25,000 minimum investment Legal http://www.StrategicHoldings.com/ppm Investment Senior Notes Preferred Equity 1-A Preferred Equity 1-B Preferred Equity 1-C Coupon 5.25-9.125% 8.5% 10% 12% Offered $10,000,000 $10,000,000 $8,000,000 $20,000,000 Ultra Low Risk Very Modest Risk
  • 33. Business Outlook Real Estate is cyclical and evolving and so are the Strategic Holdings corporate plans. We have in place action plans to maximize profitability for the following macro economic opportunities and considerations: • Interest Rates Quantitative Easing must eventually come to an end and, with that, mortgage and all other interest rates will rise. Home affordability will be challenged and rental rates will be stable or grow in properties we target to acquire. • Lending Standards Residential lenders are expected to resume more accommodative lending standards in the near future but it is expected that caution will prevail and challenges to qualifying for a mortgage to buy a house will remain. • Real Estate Prices With improving vacancy rates, income producing properties are expected to be stable at a minimum but, with our strategic purchases, we anticipate material price appreciation to bolster our balance sheet.
  • 34. Business Outlook • Financing As the Strategic Holdings portfolio size grows, we will exercise all opportunities to finance the portfolio at the least cost. We will also aim to securitize cash flows for further reductions in cost of capital. • Common Equity Long term, Strategic Holdings may consider a common equity offering as an alternative capital source and to share our returns with investors. • Maturity Defaults Over the next 7 years, $2 trillion in commercial loans will face balloon maturity dates and are prone to default thereby creating enormous profitable acquisition opportunities for Strategic Holdings. • Business Lines Executive Management at Strategic Holding already has decades of experience in Commercial Lending. As balance sheet continues to grow, we intend to deploy capital to credit worthy commercial loan scenarios which further strengthen our asset portfolio and cash flow.
  • 35. Contact Sharif Shakhshir SVP, Business Development Strategic Holdings, LLC 858-829-1605 Sharif.Shakhshir@StrategicHoldings.com www.StrategicHoldings.com
  • 36. Disclosures This is not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in the Private Placement Memorandum (PPM) of Strategic Diversified Real Estate Holdings, LLC., and may not be relied upon in connection with the purchase or sale of any security. Interests in the PPM, if offered, will only be available to parties who are "accredited investors" (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the PPM on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. Please discuss this, and all financial matters, with your CPA or investment advisor. http://www.StrategicHoldings.com/ppm

Hinweis der Redaktion

  1. Numerous challenges to refinancing including: negative equity, increased down payment requirements, more onerous underwriting standards, increased rates.