View
5
Download
0
Category
Preview:
Citation preview
Preserving Capital while Creating Wealth
ABOUT THE BANYANTREE GROUP
BanyanTree Group is a nimble private real
estate investment company focused on
investing in well-located income producing
multi-family and commercial real estate
properties in California, Nevada, Arizona and
Texas.
The investments we pursue offer attractive in-
place cash flow and the ability to create
additional value through renovation,
repositioning and re-branding.
BanyanTree Group invests its own equity
alongside both institutional and private equity
investors who are aligned with our goal of
Preserving Capital while Creating Wealth
through carefully selected investments with
superior risk-adjusted returns
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
COMPANY VISION COMPANY CORE VALUES
Ethical Ethical and transparent business dealings
DiligentDiligence, hard work and utmost care
InnovativeInnovative and creative solutions
Committed Commitment to performance and quality
TrustworthyTrust amongst all stakeholders
Achieve the highest possible standards and be the
preferred choice for all stake holders in our business
and within our market area
Preserving Capital while Creating Wealth
COMPANY MISSION
C
BanyanTree Group’s investment philosophy is driven by its goal of Preserving Capital while Creating Wealth
achieved through disciplined investments in assets with superior risk-adjusted returns
Real Estate markets are inherently inefficient - price does not necessarily
equal value - this allows skilled and patient investors to acquire assets at
prices below inherent value and monetize assets at a prices above value
Our approach is founded on the following convictions:
INVESTMENT PHILOSOPHY
Adverse and favourable market conditions occur with increasing regularity.
Appropriate use of flexible leverage and maintaining adequate liquidity
provides the ability to withstand market shocks, and to take advantage of
associated market opportunities
A well-defined investment plan that contemplates possible courses of
action under adverse circumstances with disciplined and pro-active asset
management that evolves to reflect changing circumstances is key to
managing and mitigating risks
Risks that can result in significant loss of capital must be completely
avoided
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
COMPETITIVE ADVANTAGES
Niche Market Focus:
Late recovery markets
Markets dependent on energy
Motivated Team with no
Legacy Assets:
• Meaningful co-investment from
the team that is not burdened
by legacy assets allowing it to
fully focus on future
investments
Experienced Management
Team:
Acquired or overseen acquisition of
$2.7 billion of real estate assets
84 properties (21,471 multifamily
units, 5.0 M SFT commercial space)
On-ground Local Presence:
Offices in San Francisco, Houston
and New York
Existing Relationships & Off-market Deal
Sourcing Ability:
Extensive and deep rooted network of
relationships across the industry developed over
25 years
Enabled the team to participate in negotiated off-
market situations
Technology Savvy:
• Tech savvy team
experienced in
intelligent revenue
management, use of
social media etc
Proven Investment Credentials:
• Continuation of existing successful and
proven investment strategy
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
STRATEGY
BanyanTree Group employs a data
driven approach to understand
economic conditions, monetary & fiscal
policy, analyse forecasts, demographic
trends, rental rates,
vacancy/occupancy data, absorption
trends, replacement costs and
supply/demand conditions, to select
markets that exhibit superior growth
potential.
We combine this information with
intimate local knowledge and local
operational experience to select
carefully, underwrite realistically,
structure conservatively, and
opportunistically acquire well located
underperforming and undervalued
assets.
Upon acquisition the team implements
a well-defined investment plan with
disciplined and proactive asset
management that evolves to reflect
changing circumstances by finding
creative solutions to unforeseen or un-
anticipated challenges
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
Size $10 million +
Price significantly below today’s replacement costs
With rents that are lower than comparable properties and materially lower
than competing or better quality properties
Where rents can be increased higher than inflation in the first three years of
ownership through renovation and repositioning of the property
Dated physical plant, amenities and unit interiors that do not meet the standard
and requirements of today’s renters
Age: 10 to 30 years - Class: B- or better
INVESTMENT CRITERIA & GEOGRAPHIC FOCUS
BanyanTree Group will focus on well located garden style multi-family properties comprising more than 250 units
that provide an opportunity to increase NOI at a rate faster than the overall market in the initial two to three year
period of ownership. We will focus on markets with strong near-term demand and limited near-term supply.
More specifically we will acquire properties that meet the following criteria:
Are inferior or are of lesser quality then the overall sub-market
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
DIRECT
OVERSIGHT
8,682 UnitsMulti-Family
2.7 Million SFOffice
$1.3 BillionEquity Invested
12,799 UnitsMulti-Family
2.3 Million SFCommercial
$1.4 BillionEquity Invested
EXPERIENCE
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
Extensive real estate relationships developed over 25 years
Local presence in all markets we operate in
Deal flow pipeline that generates proprietary opportunities
Twenty-five years of disciplined and conservative underwriting tested and refined in all cycles
of the market
Integrated in-house team approach (acquisitions, management, construction and marketing)
provides the ability to expeditiously and thoroughly evaluate assets and develop and
implement value-enhancing business plans.
Maximizing potential through diligent asset oversight and control of day-to-day operations
Proven hands-on entrepreneurial operating ability
Management of risk to preserve capital remains BanyanTree Group’s guiding principal
Experienced team focused on risk management for Preserving Capital
while Creating long-term Wealth
ELEMENTS OF SUCCESS
Superior Risk
Adjusted Returns
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
TEAM
Tarak Patolia is founder and managing principal of BanyanTree Group. Tarak is responsible for the firm’s overall strategy, finances, operations and culture. Prior to starting BanyanTree Group, from 1994 to 2016, Tarak served as Chief Investment Officer at Sterling Equities, Inc., the family office of the Wilpon and Katz families the owners of the NY Mets. At Sterling, Tarak was involved in the formation, capitalization and administration of five real estate investment funds. He spearheaded the negotiation, acquisition, asset management and disposition of over $4 billion of real estate and real estate related assets. Prior to Sterling, he was a technical analyst in New York and a practicing architect and a real estate developer for companies he founded in his native India.
Tarak serves on the Board of Directors for National Multi-Housing Council and is an active member of National Association of Industrial and Office Properties serving on the Capital Markets Forum. He has been a frequent speaker at the International Management Network's Opportunity Fund Conferences, National Multi-Housing Council conferences as well as several other industry events.
Tarak received a Master in Business Administration degree in Finance from Pace University and a Bachelor of Science degree in Architecture from the Centre for Environmental Planning and Technology University in Ahmedabad, India.
Manish Shah is a partner of BanyanTree Group. Prior to joining BanyanTree, Manish served as principal and manager of numerous real estate assets including controlling equity, mezzanine and senior debt investments. His prior experience includes executing a turnaround of a publicly traded company, where he was responsible for business and real estate acquisitions and divestitures. He has executed private equity transactions for Morgan Stanley and has advised on numerous M&A and financing transactions for public and private companies while at Bear Stearns and Morgan Stanley. Manish graduated with honors from Harvard Law School, and graduated with honors and distinction in two majors from Yale University
Paula Newton is a partner of BanyanTree Group, prior to joining BanyanTree, Paula was Chief Operating Officer of Sterling’s Southwest office in Houston, Texas. She was responsible for the asset management of over 4,000 multifamily apartments for the Sterling American Funds. Prior to her affiliation with Sterling, she was the co-owner and manager of a residential and commercial real estate company and a regional vice president of a large national management company. Paula earned a Bachelor’s and Master’s degree from North-eastern Illinois University.
Tarak PatoliaFounder
Manish ShahPartner - Capital Markets
Paula NewtonPartner - Asset Management
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
P r e s e r v i n g C a p i t a l w h i l e C r e a t i n g W e a l t h
Tarak Patolia101 California Street, Ste 2710, San Francisco, CA 94111
D: 415-358-0899 | F: 415-358-0849 | C: 917-676-0655
E-mail: tarak@banyangrp.com
Website: https://www.banyangrp.com
Recommended