CORPORATE OVERVIEW and repositioning of a prime off-market 98,000-square-foot retail shopping center...

C O R P O R AT E O V E R V I E W

YOU INVEST WHERE WE INVEST

The principals of Telos invest side by side with investors and are generally

the largest investors in our projects. We target discounted, value-add, or

opportunistic private real estate investments across all asset class sectors.

INVESTMENTNAME

ASSET CLASS

ASSETLOCATION

INVESTMENTDESCRIPTION

PROJECTED ANNUAL

RETURNS

Telos Capital Fund 1

Diversified Fund Various

This fund makes an investment in each of the Telos offerings and is currently diversified in RV parks, multifamily, student housing, retail, entertainment, and industrial properties.

15.0%+

TCF2 Stella Mare RV Park Galveston,

TXRedevelopment of residential infrastructure into a best-in-class, 197-site RV resort on Galveston Island in Texas. 20.3%

TCF3 Apartments at the Venue

Multi-family

Valley, AL

Investment in a deeply discounted 618-unit Class A apartment complex on approximately 54 acres in Valley, AL. 14.6%

TCF4 Stadium View Suites

Student Housing

Ames, IA

Acquisition and development of a high-end student housing project with 197 units and 518 beds located near the heart of Iowa State University in Ames, IA.

18.7%

TCF5 Monrovia Retail Monrovia,

CAAcquisition and repositioning of a prime off-market 98,000-square-foot retail shopping center in Monrovia, CA. 20.1%

TCF6 Constitution Road Studios

Special Purpose

Atlanta, GA

Acquisition and repurposing of an existing industrial warehouse property and development of over 200,000 square feet of purpose-built movie studios in Atlanta, GA.

24.5%

TCF7 Carolinas Multifamily

Multi-family

North and South Carolinas

Off-market acquisition of 15 Class B apartment communities totaling 2,272 units at a significant discount to replacement cost located in the Carolinas.

15.8%

TCF8 733 East Huntington Dr

Retail Monrovia, CA

Senior secured loan on a below-market ground lease currently tenanted by Taco Bell in Monrovia, CA. 9.0%

TCF9 Milford, MA Multifamily

Multi-family

Milford, MA

Acquisition of a Class B apartment community totaling 304 units in Milford, MA, with immediate value-add upside potential. 14.0%

Telos Capital Fund 10

Diversified Fund Various

This fund makes an investment in each of the Telos offerings, including RV parks, multifamily, student housing, retail, entertainment, and industrial properties.

15.0%+

TCF11 Kirkwood Student Housing

Student Housing

Cedar Rapids, IA

Investment in a portfolio of three value-add student housing properties totaling 740 units near Kirkwood Community College in Cedar Rapids, IA.

14.3%

TCF12 Columbus Industrial

Industrial Columbus, OH

Investment in a 1-million-square-foot industrial warehouse facility located in Columbus, OH, with 11%+ in-place annual cash flow and future re-tenanting upside potential.

15.4%

TCF13 Watermark Multifamily

Multi-family Midwest

Investment in a portfolio of Class B and Class C apartment communities at significant discount to replacement cost located across the Midwest.

16.8%

TELOS CAPITAL OFFERINGS

Projected returns are not guaranteed. Past performance is not necessarily indicative of future performance.

5-star, 197-site luxury RV resort development in Galveston, TX, with significant cash flow and future development upside potential.

INVESTMENT HIGHLIGHTS

Investment Background: Stella Mare is a rare 25-acre property

with 25-foot-wide guttered and concrete-paved streets on Galveston

Island with significant stabilized cash flow potential (20%+ cap rate).

Execution: The RV resort was opened on September 2016,

approximately 9 months following closing on the land. It offers a best-

in-class experience to guests, with permanently unobstructed gulf and

bay views, a superior infrastructure, and high-end amenities.

Results: Stella Mare is already rated #1 in Specialty Lodging on

the Island by TripAdvisor and was refinanced in March 2017,

producing nearly $3.0MM of net refinance proceeds, representing

59% of invested equity within 15 months of the land acquisition.

Current third-party broker valuations result in net investor IRRs

in excess of 20%.

PROPERTY DESCRIPTION

Status Active

Type RV Park

Location Galveston, TX

Class Type Class A

Year Built 2016

Number of Sites 197

INVESTMENT AND RETURN METRICS

Investment Date Dec 15

Telos Investment $4.9 million

Telos Principal % of Investment 7.81%

BASE-CASE PROJECTED RETURNS

Net Investor IRR 20.31%

Net Investor Multiple 1.55x

Projected Hold Period 5 years

STELLA MARE RV RESORT

High-end 518-bed student housing infill development located near the heart of Iowa State University in Ames, IA.


Investment Background: Stadium View Suites is a luxury student

housing development composed of 518 beds on the southeast side of

Iowa State University, centrally located less than a 10-minute walk

to Iowa State athletic facilities, retail, and restaurants.

Execution: The total development consists of 197 units and 518

beds, with the property’s 2nd phase construction completed as

of July 2017. The property was 99% occupied for the 2016–2017

academic year and is 99% pre-leased for the 2017–2018 academic

school year with all 12-month leases.

Results: The property is anticipated to generate a net annual cash

flow on investor equity of approximately 11% (18% including

principal amortization) for the 2017–2018 school year. The

property has been listed with HFF for sale as of August 2017.

Indications of value would result in net investor IRRs in excess of

25%, outperforming base-case IRR projections of 18.7% and upside-

case IRR projections of 23.0%.


Status Active

Type Student Housing

Location Ames, IA

Class Type Class A

Year Built 2016 & 2017

Number of Beds 518


Investment Date Oct 15

Telos Investment $3 million




STADIUM VIEW SUITES

WATERMARK MULTIFAMILY

Investment in a portfolio of Class B and Class C apartment communities at significant discount to replacement cost located across the Midwest.


Average portfolio price per unit is $32,562/unit. The fund

portfolio’s investment year-1 anticipated annual cash flow is 9%+

to investors with significant value-added upside potential. The fund

targets undermanaged Class B and Class C acquisitions in the 7–9%

cap rate range that can be stabilized in the 10–12% range with light

renovations, operating efficiencies, and enhanced management.

CAROLINAS MULTIFAMILY

Off-market acquisition of 15 Class B apartment communities totaling 2,272 units located in the Carolinas.


The portfolio was acquired at a significant discount to

replacement and market value at $51k/unit and a 7.9% cap rate.

The investment initial cash flows have been in the 8–10+% range,

with significant growth potential through renovations. Upon

execution of the business plan, value is anticipated to be extracted

through a combination of sales and refinances.

Investment in a 618-unit Class A apartment community in Valley, AL, at a significant discount to replacement cost with upside potential.


The property was acquired for $71k per unit, approximately 45%

lower than the developer’s original cost to build. Through improved

management and cost-cutting measures, net operating income has

increased 20% in under 2 years of ownership. The project is currently

earning annualized net cash flow on investor equity of 10%+ and is

being marketed for sale.

APARTMENTS AT THE VENUE

KIRKWOOD STUDENT HOUSING

COLUMBUS INDUSTRIAL

Investment in a portfolio of three value-add student housing properties totaling 740 units near Kirkwood Community College in Cedar Rapids, IA.

1-million-square-foot industrial warehouse in Columbus, OH, with 11%+ in-place annual cash flow and future re-tenanting upside potential.


The properties are projected to generate investor cash flow of

7%+ in year 1, with the ability to grow in excess of 12–15% per

year on outstanding capital after the value-add and refinance plans

are implemented. The acquisition represents significant potential

to increase rental rates through increased control of the student

housing market (55% market share). Operating synergies are

also anticipated by combining management to reduce expenses

considerably across the portfolio.


The property was purchased at less than $30 per square foot,

representing a significant discount to replacement cost of

approximately $45–50 per square foot. Year-1 investor cash

flow is in excess of 11%. Given the high demand for this type of

warehouse space, the limited available space in the Columbus

market, and the rapid year-over-year growth of the e-commerce

industry, our underwriting projects that a re-tenanting event will

be more accretive to investor annual returns than the current cash

flow from Sears’ tenancy.


Telos Investment $6.3 million






733 E HUNTINGTON DRIVE

Senior secured first mortgage on a ground lease currently tenanted by Taco Bell with rent that is significantly below market in Monrovia, CA.


Acquisition and financing of a significantly below-market ground

lease that is an outlot for the shopping center reposition of the

TCF5 Monrovia investment. Given the value-add to the shopping

center from the new national credit leases, this parcel is expected to

dramatically increase in value due to added traffic to the shopping

center. In addition, the below-market rent provides future upside to

a buyer of the shopping center and is expected to create a synergy

premium when executing the TCF5 Monrovia sale.

MONROVIA

Prime off-market southern California retail property with the ability to rapidly lease vacant spaces to national credit retailers and sell upon stabilization.


Investment Background: The project was acquired at a discount due

to low occupancy as a result of the loss of Albertsons grocery. Prior to

acquisition, letters of intent with ALDI and TJX Companies (both trade

at investment-grade cap rates) were obtained, which would bring total

national credit retailer occupancy to 75% for the shopping center.

Execution: Both ALDI and TJX leases were executed subsequent to

acquisition, and landlord improvement work and tenant improvement

work are nearing completion, with both tenants slated to take possession

in Q4 2017. We have obtained a letter of intent for the last available space

from ULTA Beauty at a premium rent given the presence of the ALDI and

TJX leases. Investment brokers have been engaged, and the property is

anticipated to be sold in early 2018.

Development of purpose-built movie studios targeting feature film and TV productions in Atlanta, GA, with significant cash flow and upside potential.


Investment Background: The investment includes 176,000

square feet of office and industrial space and the development of

nine movie studios totaling over 200,000 square feet. Despite how

Georgia is producing more feature films than any other state, there

are few purpose-built studios in Atlanta that cater to this growing

demand. Market rents for purpose-built studios are approximately

$3.00–4.00 per square foot per month. The property has been well

received due to its convenient location within 7 miles of the airport

and downtown Atlanta.

Execution: Within 20 months of our investment, the project has

completed development and has and has signed leases with major

production companies including Disney, Sony, Legendary Pictures,

and Lionsgate, with average lease rates of $3.52 per square foot per

month. See www.blackhallstudios.com.

Results: The project became 100% pre-leased in October 2017 and

has soft-holds on the available studio space for the 2018 year. The

project is anticipated to be refinanced at the end of 2017 or Q1 2018.


Status Active

Type Special Purpose

Location Atlanta, GA

Class Type Class A

Year Built/Renovated 2016–2017

Number of Movie Studios 9


Investment Date Feb 16







CONSTITUTION ROAD STUDIOS

Investment in a 304-unit Class B multifamily property in Boston MSA with immediate value-add upside potential.


Investment Highlights: Initial cash flow is projected to be in

excess of 7.0% with the potential to return substantial capital

through a refinance after execution on value-add potential:

› Revenue Growth Potential: 23% of units are $410 per month below market due to a previous state-subsidized affordability program. Bringing these units to market would generate an 11% increase to annual NOI.

› Expense Tightening: The property currently pays for all utilities, a benefit no competing property offers. We anticipate separately metering and billing residents for utilities.

› Capital Improvements: Over $1.8 million is designated for upgrades and repositioning the property to achieve its market

rent potential.

Execution: The property is performing ahead of projections, with

net operating income over 4% above budget. In May 2017, the

Milford Housing Authority agreed to bring the Enhanced Vouchers

(27% of the overall affordable units) directly to the property’s full-

market rent (an average increase of approximately 15%–20%). The

full impact of this revenue increase is expected to be felt in future

periods and represents a financial benefit to the property without

having to incur the underwritten vacancy and turnover costs.


Status Active

Type Multifamily

Location Milford, MA

Class Type Class B

Year Built 1972

Number of Units 304


Investment Date Mar 17


Telos Principal % of Investment

10.25%





MILFORD, MA, MULTIFAMILY

WARREN THOMAS, CPA MANAGING MEMBER Warren is the co-founder and president over a number of integrated wealth management and securitized real estate companies with Joshua Ungerecht and is focused on the securitization, broker dealer, and registered representative relations sides of the business. Warren has over 35 years of experience as a CPA and has been an active commercial real estate investor for the past 20 years. He maintains Series 6, 7, 22, 24, 39, 63, 66, and 79 Securities Licenses.

DAVID FISHER, CPA MANAGING MEMBER David enjoyed a successful career in banking and finance for 20 years before focusing on the management success of Telos Capital and his own investments. Over the years, David and his banking teams have executed international financings in excess of $8 billion. He has been an active real estate investor for the past 15 years and has interests in over 50 partnerships across 27 states. He earned national honors with the Elijah Watt Sells Award on the May 1993 CPA exam.

JOSHUA UNGERECHT MANAGING MEMBERJoshua is focused on the operations, investment structuring, and acquisitions aspects of Telos Capital. Concurrently, he serves as CEO and Chief Investment Officer over a number of integrated wealth management and securitized real estate companies. He developed one of the industry’s leading due diligence platforms in securitized real estate analysis. He also maintains Series 7, 22, 24, 63, 65, and 79 Securities Licenses and an active California real estate broker’s license.

TELOS CAPITAL TEAM

INVESTOR RELATIONS

CHRISTIE BURROW

EXECUTIVE ASSISTANT

JOANNA KU

ADMIN ASSISTANT

JANESSA DE LA RIVA

INVESTOR RELATIONS ASSOC

GEOFFREY D. FLAHARDY

DIR OF NATL ACCOUNTS

BETH VELOZ

SR VICE PRESIDENT

DAVID MCCURDY

SR VICE PRESIDENT

JENNIFER CHASE

DIR OF ACQUISITIONS

BRIAN SHERIFF

SR ANALYST

KIM LEHTMAN, ESQ.

GENERAL COUNSEL

ANTOINETTE BACA

ACQUISITIONS COORDINATOR

DAVE VAN STEENIS, CPA, CFA

CHIEF FINANCIAL OFFICER

SUSANA DRYDEN

CHIEF OPERATING OFFICER

KEVIN STEINES, CPA

CONTROLLER

WILLIAM PRATHER

IT MANAGER/NETWORK ADMIN

RALPH POLENDO

CREATIVE DIRECTOR

MATTHEW ANDERSON

JUNIOR DESIGNER

ASSET MANAGEMENT

MERYL MAGLAYA

ASSET MANAGER

VICTOR SANTOS

REIMBURSEMENT

COORDINATOR

CAROL YIP

ASSET MANAGER

KELLY ANN PEPIN

ASSET MANAGER

CHRIS WISE

SR ASSET MANAGER

CHARLES KIM

VP, ASSET MANAGEMENT

KATHLEEN JU

ASSET MANAGER

JULIET MELIKIAN

STAFF ACCOUNTANT

CARRIE GARCIA

SR ACCOUNTANT

JANE CAVANAUGH

SR ACCOUNTANT

ACCOUNTING

KEY MANAGEMENT BROKER DEALER RELATIONS

ACQUISITIONS AND LEGAL

COMMUNICATIONS AND TECHNOLOGY

RE V 10/17

WWW.TELOSCAPITALFUNDS.COM

200 SOUTH LOS ROBLES AVE., SUITE 210, PASADENA, CA 91101

PHONE: (855) 453-2453 | FAX: (626) 564-1024

FOCUS ON DISCOUNTED, VALUE-ADD, OR OPPORTUNISTIC PRIVATE REAL ESTATE INVESTMENTS

$1 + BILLION OF ASSETS UNDER MANAGEMENT

10+ MILLION SQUARE FEET UNDER MANAGEMENT

79 APARTMENT COMMUNITIES CONSISTING OF 7,300 UNITS

DIVERSIFIED ACROSS 28 STATES

States with Telos and affiliates AUM or under contract for future investment inventory.

Past performance is no guarantee of future results. Projected returns are not guaranteed and could be lower than anticipated. This material is not a recommendation or solicitation to buy any security, as all such offers can be made only by a private placement memorandum. Please review the private placement memorandum for any offering, especially including the risk sections, before considering an investment. All potential investors in any offering provided by Telos Capital must read the investment-specific private placement memorandum, and no person may invest in a Telos Capital Offering without first acknowledging receipt and review of the investment-specific private placement memorandum in its entirety.

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CORPORATE OVERVIEW and repositioning of a prime off-market 98,000-square-foot retail shopping center...

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