Strategy

Development & Value-Add

Markets

Seattle
Portland
SF Bay Area
Los Angeles
San Diego

Equity Check

$5 Million – $25 Million

Hold

3 – 5 Years

Joint Venture Strategies

Limited Partner (LP)

  • Initial LP Equity Funded 80-95%
  • 3rd Party Senior Financing
  • Preferred Return + Promote Waterfall
  • Hold 36-60 months
  • Predevelopment cost sharing

General Partner (GP)

  • Initial GP Capital Funded 50-75%
  • 3rd Party LP equity OR Hanover to provide LP equity
  • 3rd Party Senior Financing
  • Preferred Return + Promote Waterfall
  • Hanover to provide credit enhancement, if necessary
  • Hold 36-60 months
  • Predevelopment cost sharing

CASE STUDY #01

DEVELOPMENT JOINT VENTURE (LP)

Axletree

Portland, OR

Investment Date: June 2018
Expected Realized Date: June 2021

Business Plan

Form Development JV to build 110 units with 7,000 sf of ground floor retail located across the street from a MAX light rail station. At close, the project was fully entitled with a 3rd party GMAX and 3rd party construction financing in-place.

Structure:

  • $30,800,000 total project capitalization
  • 90/10 initial equity
  • 70% LTV construction loan
  • Preferred return + promote
  • Expected to sell shortly after stabilization
Axletree
Axletree
Axletree
Axletree
Axletree
Axletree
Axletree

CASE STUDY #02

VALUE-ADD JOINT VENTURE (LP)

Entrada

San Diego, CA

Investment Date: August 2018
Expected Realized Date: December 2021

Business Plan

Form Value-Add JV to acquire 172 units in downtown San Diego, and execute a complete renovation on all common areas, exteriors and unit interiors.

Structure:

  • $52,000,000 total capitalization
  • 85/15 initial equity
  • Preferred return + promote
  • 70% LTV bridge loan
  • Expected 2-3 year hold to execute renovations, stabilize and sell.
Entrada
Entrada
Entrada
Entrada
Entrada
Entrada
Entrada
Entrada
Entrada

CASE STUDY #03

Predevelopment Jv (Co-Gp)

1560 Folsom

San Francisco, CA

Investment Date: August 2018
Expected Realized Date: August 2021

Business Plan

Form Predevelopment Co-GP JV to fund land deposits and soft costs necessary to obtain entitlements for a 215-unit project with 3,850 sf of ground floor retail in San Francisco’s SOMA neighborhood.

Structure:

  • $4,000,000 total predevelopment capitalization
  • 75/25 initial equity
  • Upon obtaining entitlements JV will either market for the site for sale, or form vertical venture to construct the project.
Folsom
Folsom
Folsom

Hanover Financial Real Estate Investors, LLC