
BRADLEY, IL
LP DEVELOPMENT

LA MESA, CA
DEVELOPMENT

DEVELOPMENT

RIVERSIDE, CA
DEVELOPMENT

LAKE ELSINORE, CA
DEVELOPMENT
NNN JOINT VENTURES
NNN
JOINT VENTURES
Strategy
Development
Markets
National
Equity Check
$500,000 – $5 Million
Hold
Merchant Build
Equity Investment 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 (Co-GP)
- Initial GP Capital Funded 100%
- Hanover to provide lender credit enhancement, if necessary
- Hanover to provide LP equity
- 3rd Party Senior Financing
- Preferred Return + Promote Waterfall
- Merchant Build Strategy
- Predevelopment cost sharing
Preferred Equity
- Up to 95% LTC
- 10-14% PIK
- Profit Participation Subject to LTC
- Co-Terminus with Senior Lender
CASE STUDY #01
DEVELOPMENT JOINT VENTURE (GP/LP)
Everbrook Academy
Apex, NC
Investment Date: April 2018
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

CASE STUDY #02
DEVELOPMENT JOINT VENTURE (GP/LP)
Arcadia Aldi
Arcadia, CA
Investment Date: September 2014
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

CASE STUDY #03
DEVELOPMENT JOINT VENTURE (GP/LP)
Victorville Center
Victorville, CA
Investment Date: August 2014
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

CASE STUDY #04
DEVELOPMENT JOINT VENTURE (GP/LP)
6140 Lake Murray
La Mesa, CA
Investment Date: October 2016
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
