St. Clair Commercial Real Estate | 818.943.3794 1 Passionate ‐ about the business of real estate Professional – always seeking excellence in all that we do Collaborative – by working together as a team to achieve our goals Personal – in understanding the importance of strong relationships Conservative – depth of experience through multiple markets cycles Thorough – as the devil is often in the details Entrepreneurial – in seeking new ideas and creative input Accountable –accepting responsibility for our recommendations, decisions, and results Attributes of a Working Relationship with St. Clair Commercial Real Estate Greg St. Clair brings over 30 years of commercial real estate experience, having spent the past 21 years building the income property portfolio for the KFG Investment Company. KFG is a conservative family office with significant real estate investment experience. Through his efforts, the KFG portfolio of industrial and multi‐family investments has achieved a market value in excess of $206 Million and proudly boasts the following return metrics: $3 million per year in distributable cash flow to ownership An estimated unrealized internal rate of return of 18% on assets held for long term investment A 15% internal rate of return for properties sold 2015 acquisitions of 9 properties totaling $57,500,000 with projected leveraged cash yield on equity of 10%, while deferring in excess of $19 million in income taxes. St. Clair Dossier Mission Statement Our mission is to… Build a significant portfolio of industrial and flex assets, located in growth markets throughout the Western United States. Provide our investment partners with competitive investment returns, clear and transparent communication, and the ability to grow and protect their wealth through investments. Direct a dedicated team of professionals to establish a plan for each acquired asset, and allocate the resources necessary to achieve property specific metrics. Create a fun, enriching, and positive working environment for our investors, team members, and operating partners . Professional Accomplishments
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St. Clair Commercial Real Estate | 818.943.3794 1
Passionate ‐ about the business of real estate
Professional – always seeking excellence in all that we do
Collaborative – by working together as a team to achieve our goals
Personal – in understanding the importance of strong relationships
Conservative – depth of experience through multiple markets cycles
Thorough – as the devil is often in the details
Entrepreneurial – in seeking new ideas and creative input
Accountable –accepting responsibility for our recommendations, decisions,
and results
Attributes of a Working Relationship with St. Clair Commercial Real Estate
Greg St. Clair brings over 30 years of commercial real estate experience, having spent
the past 21 years building the income property portfolio for the KFG Investment
Company. KFG is a conservative family office with significant real estate investment
experience. Through his efforts, the KFG portfolio of industrial and multi‐family
investments has achieved a market value in excess of $206 Million and proudly boasts
the following return metrics:
$3 million per year in distributable cash flow to ownership
An estimated unrealized internal rate of return of 18% on assets held for
long term investment
A 15% internal rate of return for properties sold
2015 acquisitions of 9 properties totaling $57,500,000 with projected
leveraged cash yield on equity of 10%, while deferring in excess of $19
million in income taxes.
St. Clair Dossier
Mission Statement
Our mission is to…
Build a significant portfolio of
industrial and flex assets, located
in growth markets throughout the
Western United States.
Provide our investment partners
with competitive investment
returns, clear and transparent
communication, and the ability to
grow and protect their wealth
through investments.
Direct a dedicated team of
professionals to establish a plan
for each acquired asset, and
allocate the resources necessary
to achieve property specific
metrics.
Create a fun, enriching, and
positive working environment for
our investors, team members,
and operating partners .
Professional Accomplishments
St. Clair Commercial Real Estate | 818.943.3794 2
St. Clair Commercial Real Estate is not limited by the typical definitions prevalent in
the industry today. For each property we pursue, we will be looking for a “Story” – a
reason why the property makes sense to purchase, and a niche that will allow us to
provide a successful investment. Our typical transaction size and product type will also
provide a competitive advantage in today’s aggressive acquisition environment, where
the majority of capital is chasing larger transactions.
Multi‐Tenant Industrial Warehouse/manufacturing buildings with units that are improved with + 25% office. Includes shallow bay industrial with smaller units, and larger bay properties with average unit sizes of + 10,000 SF
Multi‐Tenant Flex Industrial properties that are improved with 25‐80% office space, with the balance having conditioned work research/development areas
Single‐Tenant Industrial Warehouse/manufacturing buildings leased to a single tenant, which can be divided in the future or repositioned to provide a higher use including creative office
Acquisition Methodology
Property Types
Key Considerations
Target infill areas of growing markets
Emphasis on owning well located,
functional real estate at a price per
square foot that is competitive with
replacement cost
Targeting properties that are
underutilized, poorly managed or have
below market rents. Will consider
vacancy and willing to accept lease‐up
risk and construction upgrades
Active property management and
leasing will be in place in all
submarkets to assist during due
diligence and provide an efficient and
aggressive takeover upon closing
Investment opportunities will be
available for brokers, managers and
principals
Ability to close on an “All‐Cash” basis if
needed and finance “Post Closing”
Target Markets
California Infill Los Angeles Submarkets, Orange County, San
Gabriel Valley, Inland Empire, Ventura County, San Diego Texas Austin, Dallas, Houston and San Antonio Arizona Phoenix and Tempe
Colorado Denver and Surrounding Suburbs
+10,000 SF Units+ 25% office Large Bays
+ 25% ‐ 80% office
Single‐Tenant Industrial
Over three decades of proven, success in commercial real estate services.
Expanding your portfolio by building capital relationships with experience, dedication and trust.
St. Clair Commercial Real Estate | 818.943.3794
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RETURN PARAMETERS
Leveraged Cash Yield 2016 13%
Current Appraised Value +$26,000,000
(approximates projected value in year 8 of the hold period)
Unrealized IRR 45%
Equity Multiple 3.38x
JOINT VENTURE
ACQUISITION
Property: TechRidge 3.2, 3.3,3.4, Address: 400, 500 & 600 Center Ridge Drive Austin, Texas Square Feet: 204,000 SF Location: Part of a 250 acre master planned
business park in North Austin, with direct
access to I‐35 from Parmer and Howard
Lanes. Tech Ridge has both Triple Freeport
and Foreign Trade Zone status and is home
to some of the nation’s most established
manufacturing, distribution, and high tech
tenants.
Key Team Members
Scott Flack, President
Live Oak Gottesman (Operating Partner)
Mona Carlton, Partner
HFF (Debt and Equity Source)
The property was acquired on 8/7/2012 in a joint venture with Sandy Gottesman of Live
Oak‐Gottesman ‐ one the most noted developers in Texas and the master developer of
the Business Center@ TechRidge in Austin, Texas. The purchase price of $19,400,000 (+/‐
$95/SF) represented a 7.8% going‐in capitalization rate. The acquisition targeted a 16%
leveraged IRR and an average cash yield of 11% assuming a 10 year hold.
Key Asset Management Accomplishments
Renewed and expanded a credit tenant involved in high‐tech manufacturing
that occupies over 20% of the space achieving a 3% rent bump, and annual 4%
escalations
Expanded and extended a second high tech manufacturer for a new 5 year
term, doubling the rentable area, and achieved a 7% rental increase and 3%
annual escalations
Procured a new lease with a global credit tenant for 16,000 square feet at a
rental rate that is 45% higher than the rent in place for that same space at
acquisition
Refinanced the 3.2 and 3.3 buildings to return over $1 million to the equity
partners, and increase the distributable cash flow by 65%
Have increased the Net Operating Income before debt service by 25%
ACQUISITION SUMMARY
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INDUSTRIAL PROPERTY
HELD AND SOLD
(1031 EXCHANGE)
Property: Toyota Building Address: 12907 Imperial Highway Santa Fe Springs, CA Square Feet: 101,080 SF Location: Located in Santa Fe Springs, the
largest submarket within the “Mid
Counties” area bordering Los Angeles and
Orange Counties. Considered one of the top
industrial sub‐markets in Southern
California, distribution, data center and flex
tenants.
Key Team Members
Ryan Martin & Anthony Brent
HFF (Investment Sales Team)
The property was acquired on 6/1/98 as a direct acquisition from the developer,
Proficiency Capital. The building was new construction upon acquisition. The purchase
price of $6,494,000 (+/‐$62/SF) represented a 7.5% going‐in capitalization rate which at
the time was considered aggressive. The building had a 10 year lease in place with Toyota
Lift of Los Angeles fully guaranteed by Toyota.
Key Asset Management Accomplishments
The tremendous growth potential in Santa Fe Springs made this a key
acquisition for the portfolio. The property was located across from a refinery
that was going to be redeveloped into what is now the Golden Springs
Development. The building featured 30’ clear heights, ESFR sprinklers and a
concrete truck court right in the path of development.
In 2008 the property was refinanced returning 125% of the acquisition equity
and locking interest rates that are still considered competitive in today’s rate
environment.
The property has never had a day of vacancy.
Refinanced the 3.2 and 3.3 buildings to return over $1 million to the equity
partners, and increase the distributable cash flow by 65%.
Have increased the Net Operating Income before debt service by 25%
ACQUISITION SUMMARY
RETURN PARAMETERS
Sales Price $12,180,000
Cap Rate 4.7%
Sales Date 01/15/15
Realized IRR 15.73%
Equity Multiple 4.72x
St. Clair Commercial Real Estate | 818.943.3794
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PORTFOLIO AQUISITION
(1031 EXCHANGE)
Property: 4 Buildings ‐ Americo Address: Dallas Metroplex Square Feet: 243,427 SF Location: The buildings are located in
The property was sourced on an off‐market basis through HFF, with coordination between
the Los Angeles and Dallas offices. KFG was able to move quickly and procure the buildings
on an all‐cash basis to complete a 1031 exchange requirement, with a close of escrow in
February 2015. In May 2015 the assets were refinanced locking long term debt at 3.81%. The
purchase price of $20,950,000 (+/‐$86/SF) represented a 7.67% going‐in capitalization rate.
The property breakdown in as follows:
Beltline Road $4,200,000 39,559 SF 3‐tenant Flex industrial Tristar Tech Center $8,159,180 80,791 SF Multi‐tenant flex/industrial Carrier Center $4,918,258 83,896 SF Shallow bay industrial 10th Street Plano $3,672,562 39,181 SF 2‐tenant flex industrial $20,950,000 243,427 SF Key Asset Management Accomplishments
The properties are infill locations which, coupled with a follow‐up acquisition in
Plano, is designed to provide a critical mass of infill assets in Dallas.
Holt Lunsford Commercial in Dallas was involved in the due diligence and handles
the leasing and management, and was willing to co‐invest with KFG. Holt Lunsford
has a strong presence in Dallas with over 46 million square feet under
management, and provides the relationship necessary to continue to expand in the
Dallas market.
The initial year of operations were projected to generate an 8% cash yield after
reserves for leasing costs. The properties are exceeding projection in leasing and
cash flow.
ACQUISITION SUMMARY
Top: 10th Street, Plano Top: 1517 W. North Carrier Pkwy, Grand Prairie; Bottom: Tristar Tech Center, Irving Bottom: 8080 Beltline Road, Irving
RETURN PARAMETERS
Leveraged Cash Yield 2016 10%
Unrealized IRR 18%
Equity Multiple 2.2x
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INDUSTRIAL PROPERTY
HELD AND SOLD
(1031 EXCHANGE)
Property: Business Drive Address: 10509 Business Drive Fontana, CA Square Feet: 139,879 SF Location: Located in Western Inland Empire
in direct proximity to the intersection of the
I‐10 and I‐15 freeways, within 10 minutes of
Ontario Airport, in the Sierra Gateway
Business Park.
Key Team Members
Eric Burney, Principal Daum Commercial Real Estate (Leasing Agent)
The property was acquired on 3/22/05 as a direct acquisition. The property had formerly
been a distribution center for Staples, and was repositioned to a 2‐tenant building. The
purchase price of $7,001,013 (+/‐$52.68/SF) was a good price for a functional second
generation building in the Western Inland Empire.
Key Asset Management Accomplishments
The Inland Empire was hard hit in the great recession. In 2007/2008 tenants
were under significant financial pressure, and at one point there were 63
available spaces between the 40‐60,000 square foot range. Despite this, we kept
the building fully occupied and never lost a tenant or experienced significant
downtime.
In 2007 one of our tenants occupying 60% of the space was under stress, needed
to downsize, and was prepared to vacate. Working with an excellent local broker,
we were able to procure a tenant for the other portion of the building that was
coming available. This tenant was looking for 20,000 more square feet than we
had available – allowing us to reduce our existing tenant and keep them in
occupancy. In order to do this quickly to compete for the new tenant (And
minimize the costs) we actually disconnected the demising wall, moved it over 2
bays, and re‐attached the wall. The move was accomplished over a weekend, and
we were able to successfully compete for the tenant who backfilled the space
almost immediately upon it becoming vacant, and retain our existing tenant.
In 2015 we packaged this property with 2 others and sold to a local REIT for a
significant profit, redeploying the funds into higher yielding assets in Texas.
