AMERICAN REALTY ADVISORS - Investment Platform
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AMERICAN REALTY ADVISORS Investment Platform
A M E R I C A N R E AL TY A D V I S OR S
Firm Overview
A merican Realty Advisors has provided innovative real estate investment
management solutions to institutional investors for over 26 years. With over $6.0
billion in assets under management, American continues to be one of the largest
privately-held real estate investment management firms in the United States. American’s
Assets Under Management sole line of business is and always has been providing real estate management solutions
(Gross Market Value) to our institutional investors.
$6.0 billion Our experienced investment professionals utilize an extensive nationwide network of
principals, partners, brokers, and other local market experts to identify and acquire
quality investment opportunities on behalf of our clients.
Commercial Square Footage
American’s Investment Process
24.4 million American’s investment process relies on its experienced real estate professionals to quickly
assess the suitability of an investment opportunity relative to the portfolio’s research-based
strategy that focuses on balancing return potential with risk control. This dual focus is
reflected in the firm’s proprietary Globally Competitive Industry Market Analysis that
Multi-Family Units
drives target market and submarket selection, supplemented by rigorous due diligence at
the asset and micro-market level. American not only analyzes asset-level return potential,
8,319 but also the interaction and correlation of a prospective asset relative to portfolio in terms
of market, property and industry exposure. This comprehensive ‘top down’ investment
process ensures a structured and disciplined acquisition strategy that integrates newly
acquired assets in a manner that enhances the portfolio’s overall risk-return objectives.
Offices Nationwide
American is presently focused on the deployment of capital in major metropolitan areas
9 located throughout the United States.
American’s Competitive Advantage
American manages fully discretionary capital on behalf of its clients allowing it to quickly
act on real estate equity and debt investment opportunities that meet strict investment
parameters. The firm’s flat hierarchical structure ensures that investment committee
members are apprised of investment opportunities early in the process, thereby leveraging
a deep knowledge base that serves to efficiently focus asset-level research efforts. This
combination of discretion and executive-level engagement ensures the efficient use of both
internal and external resources.
As of March 31, 2014. Please refer to notes on the last page
American Realty Advisors, Investment Platform | 2
I N V E S TM E N T P R OP E R T Y T H E M E S
American’s Preferred Metropolitan Investment Markets
American’s Investment Platforms
American, on behalf of its clients, invests through both commingled funds and separate accounts on a fully discretionary basis
as summarized below:
Investment Platform
Open End Commingled Funds
Separate Accounts
Investment Structures
¯ Direct Equity
¯ Indirect Debt and Equity
Joint Venture Equity
Mezzanine and Preferred Equity
High Leverage Senior Loans
Full Capital Stack Preferred Equity Joint Ventures and Debt/Equity Structures
Leverage
¯ Core: All cash closing but will consider the assumption of existing debt in certain situations
¯ Value-Added: Moderate leverage of 50-70%. Ability to close all cash with post-acquisition debt
placement
American Realty Advisors, Investment Platform | 3
I N V E S TM E N T P R OP E R T Y T H E M E S
Core and Value-Added Strategies
American seeks to invest in institutional-quality office, industrial, retail, and multi-family properties on behalf of its clients, either
directly or through participation in joint ventures and/or debt structures. Our research-driven investment approach is used to
evaluate the merits of any proposed investment and is summarized below by property type.
Office Strategy Industrial Strategy
Best in-class office properties Class A bulk distribution and
CBD and urban districts light manufacturing
Transit-oriented properties Port and supply-constrained
locations
Strong, industry demand
drivers Newer or functional older
properties
2999 Oak Road | East Bay, CA Marquardt | Los Angeles, CA
Retail Strategy Multi-Family Strategy
Needs-based neighborhood Stronger housing markets
and community centers High-income demographics
Market-leading grocer anchor Modern design
with strong occupancy
Transit-oriented locations
High-income infill
Near employment and retail
demographics
@ First | San Jose, CA Link Apartments | Seattle, WA centers
American offers a comprehensive range of structured equity and debt strategies to local, regional, and national operators focusing
on core, enhanced core, and value-added commercial real estate. American considers investment opportunities across the risk
spectrum with net equity placements ranging from $15 million-$200 million. Core investment opportunities are expected to
provide predictable cash flows commensurate with their lower risk profile, while value-added opportunities will reflect moderate
risk where an increased portion of return is derived from appreciation.
A Closer Look at Attributes for a Proposed Acquisition
American offers reliability, short closing periods, and guaranteed funds necessary to compete in today’s market, as well as the
experience, infrastructure, and fully-discretionary capital to close quickly and with confidence. Specific financial and asset level
criteria have been developed that American believes are critical to the review of any new investment. The following primary
criteria is used to evaluate the merits of any proposed acquisition:
Financial Criteria Market Criteria Physical Criteria
Return profile (income vs. appreciation) Qualified submarket Competitive position in the market
Premium/discount to replacement cost Stable to rising housing prices Space functionality/compatibility for
Leverage Labor force compatibility with local current tenant requirements
Tenant/industry concentration industry Economic and physical obsolescence
Lease rollover distribution Infill submarkets with history of high Condition and effective age
Capital requirements occupancy Strong visibility and accessibility
Stable to increasing employment relative Amenity-rich properties
to recent trends
American Realty Advisors, Investment Platform | 4
T R A N S A C T I O N A CT I V I TY – R E P R E S E N T A T I V E I N V E S T M E N T S
499 Park Avenue | New York, NY
Core Office
Dubbed the “Black Diamond,” the property was designed by renowned architect I.M. Pei
and offers spectacular views with functional and efficient floorplates attractive to a variety of
professional tenants.
Investment Rationale
During the second quarter of 2013, American’s core fund acquired 499 Park Avenue, a multi
-tenant office tower located on one of New York’s most desirable corners in the highly-prized
Plaza District of midtown Manhattan. This acquisition capitalized on the opportunity
provided by a supply-constrained submarket and the asset’s status as one of the highest-end
boutique office buildings in the area.
304,769 SF multi-tenant office tower developed in 1980
91.5% leased trophy-quality asset located on one of the city’s most desirable corners
at the gateway to Manhattan’s affluent Upper East Side
Ideal for mid-sized professional tenants seeking a high-profile and iconic address
111 Kent Avenue | New York, NY
Core Multi-Family
111 Kent Avenue offers tenants luxury condominium amenities and larger living areas rarely
found in New York City multi-family properties.
Investment Rationale
American’s core fund sought to capitalize on escalating rental demand for luxury rental
housing with excellent proximity to retail amenities and public transit.
62-unit, 100%-leased waterfront luxury apartment complex
Located in the prestigious Williamsburg submarket, providing residents with
excellent accessibility to nearby public transit, shopping and restaurants
High-quality condominium-style features with on-site amenities that include a fitness
center, yoga room, pool, and roof deck with unobstructed views of the east river and
Manhattan skyline
1401 South State Street | Chicago, IL
Value Added Multi-Family
Built in 2008, the high-rise apartment building has excellent accessibility to an efficient
infrastructure.
Investment Rationale
This high-rise apartment building was acquired in partnership and is a newly constructed,
well-located asset in the South Loop submarket of Downtown Chicago. American recognized
a rare opportunity to acquire a 2008-constructed apartment building below replacement cost
that, due to its delivery at the nadir of the Great Recession, offered the ability to upgrade
interior and exterior amenities to achieve value-added returns. Acquired with stabilized
occupancy and amidst decreasing market vacancy, the investment opportunity exhibited a
decreased downside risk profile relative to other value-add investment opportunities.
278-unit Class A high-rise apartment building in the heart of Chicago’s dynamic
South Loop
Amenity-rich urban high-rise building requiring common area and interior unit
upgrades
American Realty Advisors, Investment Platform | 5
T R A N S A C T I O N A CT I V I TY – R E P R E S E N T A T I V E I N V E S T M E N T S
Safeway Portfolio | Los Angeles, CA / Seattle, WA / San Diego, CA
Core Retail Portfolio
The Safeway portfolio represents an excellent opportunity to capitalize on long-term cash flow
stability backed by one of the largest grocery retailers in North America.
Investment Rationale
American acquired the three assets on behalf of two funds, allowing each to benefit from the
newly constructed retail centers located in premier submarkets. Each center features an anchor
store designed to the exact specifications of the tenant, as well as complementary inline
retailers designed to maximize center-wide sales.
Pasadena Plaza: 76,059 SF 100% leased retail center anchored by Vons with diverse
tenant roster including Chase Bank, The UPS Store, Flame Broiler, and Sports Clips
Admiral Safeway: 67,992 SF 97% leased shopping center located in Seattle’s thriving
Admiral Junction District with excellent accessibility and a captive trade area
Mission Hills Vons: Urban-style 64,034 SF 100% leased retail center located in the
affluent and densely-populated Mission Hills neighborhood of San Diego
10825 Production Avenue | Inland Empire, CA
Core Industrial
Part of a 200+ acre master-planned industrial complex, the property offers tenants enhanced
amenities, extensive landscaping, and a campus-like environment.
Investment Rationale
The investment was an opportunity to gain access to a submarket in which properties of
greater than 500,000 SF exhibited a vacancy rate of less than 2% at below replacement cost.
The property’s location will further insulate it from competitive pressures as newer product is
developed in more peripheral locations.
100% leased Industrial property, situated on 29.8 acres in a top-performing
submarket
Conveniently-located near the Ontario International Airport with excellent freeway
access to the I-10, I-15 and CA-60 freeways
753,170 SF property with functional design including 30 foot clear heights, 112 dock
-high doors and an ESFR sprinkler system
Cherry Logistics Center | East Bay, CA
Value-added Development Project
The 29-acre parcel will be redeveloped into a Class A distribution facility.
Investment Rationale
Upon completion, Cherry Logistics will rank among the newest, state-of-the-art industrial
properties within an aged, functionally obsolete and supply-constrained East Bay industrial
market. With an increasing population driven by a globally competitive technology economy,
the near- and long-term demand drivers for distribution warehouse are expected to provide
excellent returns on this investment.
Joint venture construction of a speculative 575,000 SF, state-of-the-art cross dock
distribution facility
Located in the supply-constrained East Bay industrial market of Northern California
Enhanced accessibility to transportation infrastructure including major freeways,
bridges and three international airports
LEED-certified
American Realty Advisors, Investment Platform | 6
A M E R I C A N ’ S I N VE S T M E N T G R O U P
American’s Investment Team focuses on transaction sourcing, market research, negotiation, and closing of core and value
added real estate investments in select markets across the United States.
Contact Information
Kirk Helgeson Daniel Robinson Jeff Miller Ray Kivett
Executive Vice President Managing Director, Director, Managing Director,
Executive Managing Director Finance/Investment Consulting National Capital Markets Investments
Over 25 years Over 30 years Over 32 years Over 29 years
of real estate of real estate of real estate of real estate
experience experience experience experience
818.409.3279 818.409.3242 857.472.9080 312.904.9477
khelgeson@americanreal.com drobinson@americanreal.com jmiller@americanreal.com rkivett@americanreal.com
Primary Markets: Illinois, Minnesota,
and Texas
Drew Hess Gary Steinhardt Eric Cannon, CFA Scott Anderson
Senior Investment Officer Senior Investment Officer Investment Officer Associate Investment Officer
Over 18 years Over 16 years Over 12 years Over 11 years
of real estate of real estate of real estate of real estate
experience experience experience experience
415.623.5701 818.409.3275 484.581.1191 818.409.3223
dhess@americanreal.com gsteinhardt@americanreal.com ecannon@americanreal.com sanderson@americanreal.com
Primary Markets: N. California, Primary Markets: Arizona and Primary Markets: Connecticut, New Primary Markets: Georgia, S. Florida,
Colorado, Oregon and Washington S. California Jersey, New York, Pennsylvania, and Massachusetts, and N. Carolina
Washington, D.C.
American Realty Advisors, Investment Platform | 7
A M E R I C A N R E AL TY A D V I S OR S
This brochure presents information on transactions through March 31, 2014, and is for your information only; is not intended to be relied on to make any investment decisions, and is
neither an offer to sell nor a solicitation of an offer to buy any securities or financial instruments in any jurisdiction. This brochure expresses the views of the author as of the date
indicated and such views are subject to change without notice. The information in this brochure has been obtained or derived from sources believed by American Realty Advisors to be
reliable but American does not represent that this information is accurate or complete and has not independently verified the accuracy or completeness of such information or
assumptions on which such information is based. Models used in any analysis may be proprietary, making the results difficult for any third party to reproduce. Past performance of any
kind referenced in this brochure in connection with any particular strategy should not be taken as an indicator of future results of such strategies. It is important to understand that
investments of the type referenced in this brochure pose the potential for loss of capital over any time period. Photos used in this brochure were selected based on visual appearance
and are used for illustrative purposes only.
This brochure should be considered confidential and may not be copied, reproduced, republished, or posted in whole or in part, in any form and may not be circulated or redelivered
to any person without the prior written consent of American.
Forward-Looking Statements: This brochure may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are statements that
do not represent historical facts and are based on our beliefs, assumptions made by us, and information currently available to us. Forward-looking statements in this brochure are based
on our current expectations as of the date of this brochure, which could change or not materialize as expected. Actual results may differ materially due to a variety of uncertainties and
risk factors. Except as required by law, we assume no obligation to update any such forward-looking statements.
Notes: Assets under management represent approximate gross fair value of all assets and accounts managed by American as of March 31,2014 which includes cash and cash
equivalents and excludes partners’ share of equity and partners’ share of debt on partnership investments. Net assets under management is $4.8 billion which represents the gross assets
under management less clients’ share of debt on those assets as of March 31, 2014.
On the Cover: 499 Park Avenue, New York, New York.
INSTITUTIONAL REAL ESTATE
INVESTMENT MANAGEMENT
Corporate Headquarters
801 North Brand Boulevard, Suite 800
Glendale, CA 91203
818.545.1152
818.545.8460 fax
www.americanreal.com
Printed in-house
LOS ANGELES ATLANTA CHICAGO PHILADELPHIA SAN FRANCISCO
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