The Benefits of Direct Private Real Estate Investment:

• Direct investment offers investors the opportunity to capture the systematic behavior of the asset class while providing diversification to their overall investment portfolio.
• Core strategies seek high current income, modest appreciation, and principal preservation with relatively low volatility.
• Value-added strategies seek increased total return with performance contributions from both income and appreciation with a moderate to high risk level.
• Value-added investments include development, redevelopment, and repositioning, among others.

Crimson Capital Investment Responsibilities:
Using our risk-adjusted approach, Crimson Capital offers investors a complete investment process including deal origination, initial underwriting, negotiation, financing, and closing of investment opportunities. Once acquired, Crimson Capital manages the asset and maximizes property value in light of changing market conditions. Monthly cash distributions are made directly to our investors, while quarterly and annual reports keep our investors in touch with their investments.

General Investment Criteria: Excellent locations, with dominant competitive market positions Strong demographics and dominant market positioning (assuring future marketability and appreciation) Core: Stable cash returns with tax benefits resulting from component depreciation Combining lease terms and financing so that future refinancing increases cash flow despite the likelihood of increased future interest rates Value Add: Distressed Assets with advantageous pricing where our expertise can unlock value

Investment Targets (including but not limited to):

CORE:

• Type: Single / Multi Tenant Retail Properties, Multi Family, Office and Industrial.
• Location: Stable markets with strong demographics that offer strong current returns, appreciation potential, and market liquidity.
• Price per square foot: In-line with current replacement cost, decreasing the chance for unanticipated depreciation.
• Lease: Types that are NN and/or NNN limiting non-reimbursable expenses.
• Initial Lease Terms: Seven years or more containing rental bumps and average or below average rents.
• Credit Tenants: Those with strong corporate guarantors (minimizing leasing risk).

VALUE ADD:

• Residential and Commercial Lending

  • Hard money secured shared equity mortgage
  • Short term (12 months) collateralized line, co-funded with business plan
  • First position mortgage/line of credit for asset repositioning
  • Light construction with shared equity
  • Mezzanine
  • Balance sheet contribution
  
  

• Acquisition

  • Opportunistic time sensitive acquisitions
  • Residential/Commercial repositioning
  • Capitalization rate market discounts
  • Partially constructed discounted properties
  • Land worth banking with as-of-right or approvals in place
  
  

• Financial Instrument Acquisition

  • Recorded 1st mortgages (individual or bulk) for resale/own underlying asset
  • Synthetic B-notes
  • Hypothecated interests
  • Personal/Corporate guarantee interests
  • Secured residential 2nd mortgages (profile intensive)
  • Tax liens
  • Stock and bond certificates