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Conference

Real Estate, Direct Lending & Private Debt Forum - Part XII

March 18, 2021
14:00 PM - 20:00 PM
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Thank you to our Sponsors: ApexOne Investment Partners, Sunstone Properties Trust, Nationwide, GSH Real Estate, Preqin, Boomerang Capital, S&P Global Market Intelligence, Safe Harbor Equity, Harvest Volatility Management, EnTrust Global, Off the Chain Capital, Clarion Asset Management and LinkVest Capital for helping us make this event possible. Without your support and guidance, we would not have been able to produce such a high quality and great event again. Thank you to all our FLAIA Members and the FLAIA Board for their support during these challenging times. It is amazing how our community has come together to provide leadership during a high level of uncertainty due to a once in a lifetime plague. I am proud to be a part of this great group of great men & women!

Real Estate, Direct Lending and Private Debt are 3 legs of the alternative investment industry and over the past 10 years each of these legs have grown to have a much more profound impact on Main Street. Perhaps these 3 legs have been the hardest hit part of the overall alternative investment industry. Today, because of the lack of real time liquidity and real time price discovery this Forum is the most important conversation for global investors to join. Most investors have exposure to real estate through equity and credit vehicles and amid a crisis, no one has all the answers today. We are determined to bring clarity, truth, facts and experience from the front line by the most talented investment managers.

  • Democratization of Alternative Investments via CrowdFunding
    12:00 PM - 13:00 PM
    Panel
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    In this conversation, we'll discuss what democratization really means and how it has played out and what the future looks like. The panelists will share detailed figures about the growth of their companies and the amount of crowd funding in their unique verticals. We will discuss their strategies, performance and the teams behind the successes. It will be a hard hitting investment conversation that no investor should miss.

    • Democratization today, the good, the bad and the ugly
    • Evolution of CrowdFunding
    • Strategy, Performance and Team
    • The Covid-19 lessons
    • Growth potential

    Speakers: Michael Corcelli, Brian Dally, Carter Malloy, Nic Perkin, and Nigel Glenday

  • Capitalize on the Unmet Demand for RV & Marine Storage
    15:00 PM - 15:30 PM
    Keynote
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    Zenith Storage is expected to provide both significant capital appreciation and cash flow. We are capitalizing on several trends:

    • Tremendous growth in the demand for recreational vehicles ($16 billion market) and boats with an increasing desire to live a mobile lifestyle
    • Covid-19's acceleration in telecommuting and emphasized benefits of exploring America
    • Current minimal competition and shortages of high security, luxury amenity, enclosed RV, and boat individual unit storages in Las Vegas with the next closest facility being 17 miles away from our location
    • Our location being close to both Lake Mead and Las Vegas Strip that have high car traffic counts

    Updates to the Deal:

    The project is located 35 minutes from Lake Mead, near Downtown Las Vegas and Las Vegas Strip. We have successfully acquired planning approval for the Zenith Storage Project from the Las Vegas Board of County Commissioners on November 18, 2020. We also completed the purchase of land for the Zenith storage project on November 30, 2020.

    We have selected and engaged project Architect on January 27,2021. Additionally, we also selected and engaged all project engineers (civil, structural, mechanical, electrical, plumbing, HVAC) on January 29, 2021. The permitting process has been initiated with Clark County, Las Vegas. We will began architecture and engineering work on February 1, 2021.

    • Management team has successfully redeveloped and is the owner/operator of 4 self storage facilities throughout 3 states (Nevada, Utah, Arizona)
    • Storage has consistently been a recession resistant business, historically
    • Project value is expected to increase 2x–2.5x of total build and land cost upon completion (capital appreciation)
    • Mercadyne Automated Properties facilities have historically appreciated 2x-3x in 5 years
    • Significant opportunity to further increase in value as neighborhood becomes regentrified
    • Project contains approximately 48,000 net rentable sqft and is expected to produce significant monthly cashflows upon stabilization - Lot size of 2.33 acres (101,495 SF)
    • Affluent clientele for this storage product type leading to high occupancy and minimal price sensitivity
    • Competition is limited, with currently one dedicated enclosed RV and Marine storage facility, with individual units, across the entire 135-square miles of Las Vegas, NV
    • Land Purchase Price $7.38/Sqft. 8 other property comparables now selling at an average of $15.34 /Sqft
    • Traffic counts of over 9,000 CPD

    Speakers: David Baker

  • Distressed Hotel Opportunities
    14:00 PM - 15:00 PM
    Panel
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    Since the beginning of COVID-19, the world has undergone a major economic turmoil for the hospitality and tourism industry. With the steep decline in occupancy rates and Average Daily Rates (ADR), many hotel properties were restructured or refinanced with new vision and strategies.

    During this time of operational challenges, the industry is in dire need for a combined solution of expertise and capital. This may, in fact, provide unique opportunities for investors to bring the combination of capital and capability to the hospitality industry.

    • How can we anticipate the revival of business and leisure travel within the hospitality industry?
    • How can we build an optimal portfolio of hospitality assets that includes opportunistic, redevelopment, construction, project completion, and rescue capital?
    • What are the target returns at a portfolio level for hospitality investing post COVID-19?
    • How does a unique asset with a strong or standout location aid in value extraction?
    • What structure is the most optimal structure of hospitality deals?

    Speakers: Joseph W. DeMatteo Sr., Bharat Sangani, MD, Euclid Walker, and Nathan Whigham

  • The Case for Why Multi-Family Will Continue to Outperform
    11:00 AM - 12:00 PM
    Panel
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    As we finish the 1st quarter of 2021, multifamily has performed well in these dynamic times. Our industry experts will discuss how they are navigating the new market realities concerning occupancy rates, rents, valuations, evictions and cap rates.

    Additionally, ApexOne Investment Partners, Sunstone Property Trust and GSH Real Estate will provide insights into the new opportunities and numerous pricing dislocations facing the multifamily sector.

    • Why will Multifamily continue to outperform other sectors of CRE?
    • New Opportunities in CRE
    • Strategy: Speculative or Value Assets?
    • What are the broad misconceptions vs. realities on the ground?

    Speakers: Rob Jafek, Ernest Johnson, Gideon Pfeffer, and Sheryl Morehead

  • Why Working Capital Solutions is One of the Best-Uncorrelated Return Strategies
    13:00 PM - 14:00 PM
    Panel
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    Uncorrelated return strategies aim to generate consistent returns with limited, or zero, correlation to any of the major asset classes of the financial markets. That means generating positive returns year after year while diversifying broadly to have low overall exposure to any single industry.

    • Working Capital Solutions (WCS), can be defined as the use of financing and risk mitigation practices and techniques to optimize the management of the working capital and liquidity invested in the supply chain process.
    • As investors and lenders, it is important to have the visibility and understanding of the supply chain process and know how trade flows.
    • Key benefit for customers: WCS accelerates growth by unlocking cash trapped in the working capital cycle using receivables, payables and inventory solutions.

    Speakers: Shalako Wiener, Dipak Jogia, Eric Wong, Asit Beesen, and Jeffrey Marron

  • Outlook for Private Debt & Real Estate
    10:00 AM - 10:30 AM
    Keynote
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    The alternative asset industry has continued to grow despite the economic slowdown trigged by the pandemic. This presentation will attempt to provide a high-level overview of the current Private Debt and Real Estate market landscapes, including industry AUM, fundraising and deal volume. We’ll look at 2020 year-end data, discuss some potential opportunities for 2021 and share key insight into the mind of investor – including results from our recent H1 2021 Investor Outlook Survey. Lastly, we’ll share some projections and trends which will be key to the continued growth of the alternatives industry.

    • How did Private Debt & Real Estate fair in 2020?
    • What opportunities may exist in 2021?
    • What do Investor allocation plans look like in H1 2021 and beyond?
    • The Future of Alternatives – 2025 Outlook including Preqin projections

    Speakers: Joseph Borda, CAIA

  • Digital Solutions Amid a Physical Storm to Accelerate & Enhance Buy-Side Due Diligence
    15:30 PM - 16:00 PM
    Keynote
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    FLAIA launched an online digital platform in 2019 and has made great strides in rolling it out to supplement the Buy-Side Discovery and Due Diligence process. FLAIA designed the platform to conform to the rigors of a busy life not knowing that people would be further hindered by COVID -19. The platform uses investor preferences and deal highlights to make a market in alternative investments with the mission and vision of being the world's leading marketplace for alternative investments and alternative investment education. Michael Corcelli, the Founder & Chairman of FLAIA will demonstrate the platform in real time showing how the deal marketing, due diligence and fund raising process is fully digital and compliant with securities rules, regulations and compliance.

    • Creating a process to look at investment opportunities in 2021
    • How to use the digital environment to uncover exceptional investment opportunities and express your macroeconomic view
    • Staying on top of your current investments by looking at similar investments online
    • Using the current environment to shape your relationships with your asset managers
    • How to supercharge the due diligence process from the comfort and safety of your home or office

    Speakers: Michael Corcelli

  • How Purchasing 400SFR and 400 Small MF Units during the Global Financial Crisis (2009) is Helping Us Navigate Today's Environment
    10:30 AM - 11:00 AM
    Keynote
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    Danny Kattan, Managing Partner of Capital Markets, PIA Residential, will provide an overview and revisionist history of PIA Residential's successful transition from single-family and small multifamily to the institutional multifamily space. This discussion will detail the differences between the two market segments and how this growth model uniquely prepared PIA Residential for the pivot to the institutional space and the pandemic. This discussion will cover direct lending, vertical integration, scaling into a full-service real estate private equity firm, and valuable lessons learned along the way. He will also explain how PIA Residential views the multifamily sector's current state, forecast trends, and outlook prognosis. 

    • Transitioning from SFR to Multifamily – What we learned, How it prepared us, What would we do differently
    • How our background has prepared us to navigate the environment today
    • Disposing of a portfolio of SFR and Small Multifamily to pivot into Institutional Multifamily
    • Converting a Vertically Integrated SFR Company into a Full-Service Real Estate, Private Equity Firm focused on Institutional Multifamily Assets
    • The Current State of Multifamily and Forecasting Trends and Outlook for Multifamily: Cap Rates, Quality of IRR, Growth Markets, and Pricing

    Speakers: Danny Kattan