Net Property Group Flipbook

NET PROPERTY GROUP

NPG FIRM OVERVIEWREAL ESTATE DEAL FORUM

JULY 16, 2009Tony DigganNet Property Group116 Route 22North Plainfield, NJ 07060Email: [email protected]: 908.226.0123Cell: 609.947.2732

mailto:[email protected]

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We specialize in value added/opportunistic

retail real estate investments <$25M.

NPG has self funded all deals thus far. Opportunities exist to invest in one-off deals and NPG

is sponsoring a value added/opportunistic retail real

estate fund.

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VERVIEWIntroduction to Net Property Group

Net Property Group (NPG) is an active owner/investor in retail real estate with a tradition of success. We are very adept at identifying and acquiring underperforming commercial properties and redeveloping and re-tenanting those properties into stable, profitable, income producing properties. Our in-house team includes property management, construction management, accounting, legal and finance functions.

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VERVIEWNPG Advantages

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Performance data provided in this presentation is based on internal NPG calculations as of 4/15/2009. The performance data is based on the investment history of NPG. This information is provided for illustrative purposes only. We are not recommending or soliciting any action based upon this material.

Deep Industry Experience

Proven Value Added Retail Investment

Track Record

Proven Investment

Strategy

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VERVIEWNPG’s Proven Investment Strategy

Source Acquire Execute Exit

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• Leverage Managing Partners’ Networks to locate off

market deals

• Well located properties with financial or management

issues and/or functional obsolescence

• Determine Market Viability/Tenant Interest

• Quantify Value Add Opportunity

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• Due Diligence/Confirmation of Market

Viability/Tenant Interest

• Secure Debt Financing

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• Rehabilitate

• Retenant

• Stabilize

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• Dispose

• Hold for follow on

investment

• Hold for current

income

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1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

NPG Portfolio Value (in MM)• Conservative estimate

of NPG portfolio value

is $62.3M (estimate of

partner’s collective

holdings is $150M)

• Average year over

year growth of 25%

since Year 2000


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Track Record

Proven Investment

Strategy

NPG’s investment strategy has achieved

average year over year growth of 25%

since 2000.

NPG’s Value Added Retail Investment Track Record

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VERVIEW

$5.15M

$12.86M

$31.70M

Construction Costs

Total Value Added

Purchase Price

$8.1M

$24.65M

$47.28M

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5 Year Period 11 Year Period


Total Value Added (Total Return) by Period

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VERVIEWNPG’s Value Added Retail Investment Track Record

Period Internal Rate of Return

5 Yr 43%

11 Yr 37%

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Table of NPG Portfolio Returns

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Rockaway Plaza, 295 Route 46, Rockaway, NJ

Purchase Price $4.75M

Construction Costs $3.65M

Total Value Added $7.99M

Levered IRR 93.8%

Property Description This 105,000 sf center was completely redeveloped and re-tenanted. Tenants included Kiddie Academy Daycare, Maaco Autobody, Ace Hardware, Drug Fair, Party Fair and Abby Carpets.

Investment Date April 13, 2006

Exit Date September 12, 2008

Exit Price $16.4M

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Example Investment

After

Before

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Bassett Furniture, 292 Rte 22, Green Brook, NJ


Construction Costs $480k

Total Value Added $524k

Levered IRR 17.3%

Property Description This property had a vacant 16,000 sf building that badly needed renovations. The building and site were completely redeveloped. Bassett was retained with a 16 year NNN lease.

Investment Date December 20, 2005

Exit Date NPG owns this property.

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Example Investment

After

Before

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Veronica Plaza, 1165 Route 27, Franklin, NJ




Levered IRR 47.1%

Property Description This 30,572 sf strip center is adjacent to a high volume roadway. This property exhibited signs of mismanagement and needed renovation. Vacancies were nearly 50% and rents were below market. The building façade, roof, parking lot, landscaping and pylon signs were replaced.

Investment Date January 28, 2000Exit Date NPG owns this property.

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Example Investment

After

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Raritan Crossing, 45 Route 206, Raritan, NJ




Levered IRR 39.6%

Property Description A 30% vacancy rate and buildings that needed rehabilitation, were prime indicators that this well located 61,852 sf strip center presented a prime value added opportunity. The property was acquired in three separate transactions over several years. The building façade, roof, parking lot, landscaping and pylon signs were replaced and new tenants were secured.

Initial Investment Date November 7, 2001Exit Date NPG owns this property.

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Example Investment

After

Before

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Station Center, 547 Rte 22 E., Whitehouse Station, NJ

Purchase Price $3.475M (currently Master Leased by NPG)


Total Value Added $625k

Levered IRR 42.1%

Property Description This 29,100 sf strip center is master leased by NPG until closing contingencies are satisfied. The center was redeveloped and re-tenanted by NPG.

Initial Investment Date November 1, 2003Exit Date 2010 closing anticipated.

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Example Investment

After

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Track Record

Proven Investment

Strategy

NPG’s disciplined investment strategy

has achieved average year over year growth

of 25% since 2000.

NPG has an established 11 Year

track record with yields in excess of 35%.

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VERVIEWNPG’s Deep Industry Experience

Vince Castagno

Bruce Jeffrey

Roy Pascal

William Mooney

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• Partners have 100+ years of combined experience with retail real estate.

• Collectively they have owned and managed in excess of one million sf of retail real estate.

• As retail real estate brokers, they have completed in excess of 1000 real estate transactions and they maintain a network of prospective tenants.

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VERVIEWWhy Invest in the NPG Fund?

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Track Record

Proven Investment

Strategy

NPG’s disciplined investment strategy

has achieved average year over year growth

of 25% since 2000.

NPG has an established 11 Year

track record with yields in excess of 35%.

NPG’s partners have over 100+ years of

experience with retail real estate.

NET PROPERTY GROUP

Thank You.For more information, please visit www.netpropertygroup.com or email: [email protected]

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VERVIEWBiographies

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Vincent CastagnoMr. is a 15 year real estate veteran who learned the business from the ground up. As a managing partner of NPG, Vincent's focus has been identifying underperforming retail centers and negotiating acquisitions, asset management, and redevelopment of new assets. Vincent has taken the lead on land use issues obtaining governmental approvals for ground up development projects as well as redevelopment approvals of existing centers. Working with other industry professionals, he has been able to maximize the development potential of NPG projects. He is proficient in all aspects of construction from project buyout through obtaining the Certificate of Occupancy. Mr. Castagno started his career as a retail leasing specialist at Jeffery Realty. Vincent has closed in excess of 250 sales and leasing transactions to date and has established strong relationships with both national and regional retailers. Vincent led the expansion efforts of several chains in New Jersey, notably Hollywood Video with 27 stores, Einstein Brother Bagels, and Total Wine and More. He handled all aspects of site selection, lease negotiations and store opening requirements. Vincent was awarded the "Power Broker" designation by the CoStar Group for his book of business as a retail broker. Vincent was instrumental in growing Jeffery Realty into the well respected retail brokerage leader in New Jersey. Mr. Castagno graduated from the Purdue University. Bruce JefferyMr. Jeffrey is a managing partner in NPG where his specialty is deal sourcing and acquisitions. Bruce has over 30 years experience in the commercial real estate industry. In the late 1980's, he founded Jeffery Realty. The firm, which is comprised of over 14 salesmen, specializes in the leasing and selling of retail properties in central and northern New Jersey. Jeffery Realty has emerged as one of the leading retail brokerage firms and continues to dominate the industry by amassing over 1850 closed retail transactions to date. In the late 1990's, Mr. Jeffrey formed an investment company with long time broker associate Roy Pascal to acquire value added retail properties in Central and Northern New Jersey. Those holdings, which are not part of NPG, total approximately 400,000 square feet. In 1998, Mr. Jeffery and Mr. Pascal, formed NPG with Vincent Castagno and Bill Mooney. NPG holds approximately 350,000 square feet of retail properties. The holdings of both investment companies, which total 750,000 square feet, are managed and operated by a full time in house staff of property managers, admin personnel, legal counsel and accounting personnel. On a day to day basis, Mr. Jeffrey oversees the operation of Jeffrey Realty, Inc. and Investors Holding Fund and sources new deals for NPG. Bruce has a BS in Business Administration from Lebanon College.

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VERVIEWBiographies

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William MooneyMr. Mooney is a principal in NPG and an original partner in the firm. His areas of expertise are identifying the next acquisition, handling all aspects of contract negotiations and financing. Mr. Mooney works closely with the NPG team in analyzing prospective purchases from all aspects including financing, construction, tenant mix, and marketing. Mr. Mooney has been involved in commercial real estate for over 25 years specializing in the retail sector. Prior to forming NPG, Mr. Mooney was a Vice President with Jeffery Realty, Inc., a leading retail brokerage firm in New Jersey. While at Jeffery Realty, Inc., Mr. Mooney was responsible for over $100M in transactions involving leasehold and sales transactions. Roy PascalMr. Pascal has over thirty years experience in the commercial real estate industry. Mr. Pascal is a managing partner of NPG and is involved in deal sourcing and acquisitions. He is also a managing partner of Investor Holding Fund, an investment company he founded with Bruce Jeffrey. Mr. Pascal began his real estate career in the early 1980's when he acquired his New Jersey Real Estate License and purchased his first retail property while still in college. This buying trend continued through the 1980's and expanded into larger multi-family and various types of commercial properties. By the end of the 1980's Mr. Pascal had purchased, sold, syndicated, renovated, and rehabbed over $30 Million worth of New Jersey Real Estate of all types and sizes. He was responsible for property management, commercial leasing, acquisitions and dispositions as well as all phases of general and limited partnership formation and capital structure. During this same time Mr. Pascal opened and operated, along with his father, Lincoln Agency, a full service commercial Real Estate Brokerage Company. In 1991 Lincoln Agency was merged with Jeffery Realty, Inc. which combined forces and created what was and is currently one of the largest retail real estate brokerage companies in New Jersey. Shortly after the merger, an investment property sales group was formed in order to focus on brokerage activities for same. Knowledge of the market place and product combined with long standing quality relationship fueled over forty investment property sales ranging from $1,000,000 to $25,000,000 within the mid 1990's.

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VERVIEWBiographies

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Tony DigganMr. Diggan is CFO of NPG. Mr. Diggan has over 15 years experience in the real estate finance and construction industries. He is well versed in managing commercial and residential real estate investments and has sourced debt and equity for over $150M of real estate development projects. While at Lennar, he oversaw the division finance department and was responsible for all deal underwriting, land division financing and investor/fund relationships. In this role, Mr. Diggan was responsible for the day to day management of over $50M in joint venture investments (JVs). He was responsible for all aspects of these JVs including: their formation, acquiring assets on behalf of the JVs, capital calls, monitoring JV investment performance, disbursement of JV proceeds, disposition of JV assets, investor reporting and JV partner buyouts. He also led M&A negotiations for the acquisition of a regional homebuilder, led the acquisition effort on a several hundred million dollar military base acquisition and devised a $300m land fund. Mr. Diggan’s construction and development experiences are well diversified. He has led the approvals process for residential and commercial projects, as well as approvals for dozens of roadway projects. Mr. Diggan has also overseen the architectural design effort on numerous multifamily and commercial buildings. His construction experience has ranged from the management of heavy site work to supervision of residential construction. Mr. Diggan received a BS in Environmental Engineering from Wilkes University and an MBA from Rutgers University.

Robert DavidMr. David is in-house counsel for Net Property Group and handles acquisitions, due diligence and lease-up. He is a member of the New Jersey and New York bars and the bar of the Supreme Court of the U.S. He has practiced real estate law for over 20 years in major New Jersey law firms and a major national retailer. Mr. David received his BA from Hampshire College and his JD from Georgetown University Law Center.

Documents

Net Property Group Flipbook