Strategy

Development

Markets

National

Equity Check

$500,000 – $5 Million

Hold

Merchant Build

Joint Venture Strategies

Limited Partner (LP)

  • Initial LP Equity Funded 100%
  • 3rd Party Senior Financing
  • Preferred Return + Promote Waterfall
  • Merchant Build Strategy
  • Predevelopment cost sharing

General Partner (GP)

  • Initial GP Capital Funded 100%
  • Hanover to provide LP equity
  • 3rd Party Senior Financing
  • Preferred Return + Promote Waterfall
  • Hanover to provide credit enhancement, if necessary
  • Merchant Build Strategy
  • Predevelopment cost sharing

CASE STUDY #01

DEVELOPMENT JOINT VENTURE (GP/LP)

Everbrook Academy

Apex, NC

Investment Date: April 2018
Expected Realized Date: February 2019

Business Plan

Part of a programmatic JV for a for an Everbrook Academy build-to-suit with 3rd party construction financing in-place at close.

Structure:

  • $4,600,000 total project capitalization
  • 11,127 RSF
  • HREI funded 100% of required equity
  • HREI provided 70% of pursuit costs and 100% of deposits
  • 80% LTC construction loan
  • HREI provided repayment guaranty to lender
  • Build and sell exit
Everbrook Academy | Apex, NC

CASE STUDY #02

DEVELOPMENT JOINT VENTURE (GP/LP)

Arcadia Aldi

Arcadia, CA

Investment Date: September 2014
Expected Realized Date: December 2015

Business Plan

Form JV for a shopping center redevelopment to construct an ALDI grocery store.

Structure:

  • $6,800,000 total project capitalization
  • 25,600 RSF
  • HREI funded 100% of required equity
  • 77% LTC construction loan
  • Build and sell exit
Arcadia Aldi | Arcadia, CA

CASE STUDY #03

DEVELOPMENT JOINT VENTURE (GP/LP)

Victorville Center

Victorville, CA

Investment Date: August 2014
Expected Realized Date: March 2016

Business Plan

Form vertical development JV for a three tenant build-to-suit for Michael’s, Staples, and Dollar Tree with 3rd party GMAX and 3rd party construction financing in-place at close.

Structure:

  • $9,400,000 total project capitalization
  • 45,110 RSF
  • HREI funded 100% of required equity
  • 70% LTC construction loan
  • Build and sell exit
Victorville Center | Victorville, CA

CASE STUDY #04

DEVELOPMENT JOINT VENTURE (GP/LP)

6140 Lake Murray

La Mesa, CA

Investment Date: October 2016
Expected Realized Date: March 2018

Business Plan

Part of a programmatic JV to construct a Starbucks build-to-suit.

Structure:

  • $3,000,000 total project capitalization
  • 1,600 RSF
  • HREI funded 100% of required equity
  • HREI provided 70% of pursuit costs and 100% of deposits
  • 65% LTC construction loan
  • HREI provided repayment guaranty to lender
  • Build and sell exit
Starbucks | La Mesa, CA

Hanover Financial Real Estate Investors, LLC