21
Investing Strategy
§ An innovative
management team
responsive to changing
market dynamics with the
ability to source and
structure unique
opportunities within the
multifamily space
§ Disciplined underwriting,
rigorous analysis, and total
return driven
First multifamily REIT to create a fund business (raises $250 million
of equity for Fund I).
Monetizes Fund I at a +40% IRR. Creates Fund II with $265 million of
equity.
Acquires $106 million of multifamily REIT unsecured bonds yielding
10.3% near the bottom of the market.
Acquires early in the recovery. First acquisition was a foreclosed
condo at 55% of cost. Acquires over $1 billion of properties over the
next 24 months.
Early entrant in preferred equity investment and achieves 13%
annual rate on a $12 million investment.
Establishes Wesco I joint venture partnership with $200 million of
equity. Fully invested by year-end 2011.
Establishes Wesco II for a $175 million Preferred Equity Investment
in Park Merced at a 10.1% annual return for 7-years.
2001
2004
2009
2010
2011
Acquires joint venture partner’s interest in the co-investment Essex
Skyline and receives $2.3 million promote income. Issued 320,000
fewer shares of ESS common stock by initially acquiring with a
partner.
2012
Core Competencies
Began developing early in the recovery. Delivers first project post
recession 6 months ahead of schedule and $5 million below budget.
