ATLAS CRE FUND, LP
800 West Sam Houston Parkway South, Suite 135, Houston, TX 77042
CONFIDENTIALITY DISCLAIMER
The information within has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.
V I S I O N S T A T E M E N T
To deliver consistent, long-term value to our investors while contributing to the well-being and prosperity of society as a whole.
EXECUTIVE SUMMARY
Atlas CRE Fund, LP (ACRE) is pleased to present a unique investment opportunity to both accredited and non-accredited investors, in the form of a diversified fund. The fund will target investments in value added multi-family projects, with a focus on the thriving Texas commercial real estate market. Through the diversification of investments across multiple commercial projects, investors have the opportunity to minimize their risk exposure while realizing exceptional returns, even with limited funds.
Advantages of investing with ACRE
- Investors can expect an attractive IRR of 15%-20% and a preferred return of 6-8%, with a total return on investment of 50% to 60%
- With a $20 million fund size and a 5 year investment horizon, ACRE Investors presents a compelling opportunity for investors seeking to maximize returns while minimizing risk.
- Substantial cost savings on development, deal brokering, and accounting fees. With a single setup and annual filing, investors gain access to first-choice deal flows
- The ability to commit and deploy capital quickly for competitive and smaller projects
- The firm's deep knowledge of the Texas real estate market, built over two decades of local investing, further enhances its value proposition
*Based on historical returns.
MISSION STATEMENT
Our mission is to create exceptional value for our investors by identifying and investing in high-quality real estate multi-family assets, while adhering o a disciplined approach to acquisition, rehabilitation, and management. We strive to generate superior risk-adjusted returns while maintaining transparency, accountability, and integrity in all our dealings. As responsible stewards of the environment, we aim to contribute to long-term sustainability and community building, positively impacting the economic growth of the communities in which we operate.
COMPANY BACKGROUND
ACRE was founded by a team of five accomplished professionals whose diverse backgrounds complement each other, creating a formidable real estate development team. The team's vision is to create an investment fund that capitalizes on market opportunities in a dynamic and opportunistic way.
With a clear investment strategy, access to pre-determined capital, and a rapidly growing market filled with opportunities, ACRE is well-positioned to create significant value for its investors and partners. The fund's focus on taking quick market action and leveraging its expertise and network in the industry further strengthens its ability to deliver superior returns to its stakeholders.
- 60+ Years of combined commercial real estate development experience.
- 30+ Years of commercial construction experience.
- 25+ Years of commercial design experience
- 25+ Years of financing & investment experience
- 10+ Years of deal flow and property sourcing experience
FADI JOHEIR
CO-FOUNDER & CHIEF EXECUTIVE OFFICER
Mr. Joheir brings over 26 years of experience in real estate development and urban land economics, with a strong focus in hospitality. He has worked with top organizations such as Accor NA, IBC Hospitality Investments, and Midway Development, and he is known for his operational expertise, attention to detail, and his ability to execute projects efficiently and effectively. With a Bachelor of Accounting from the University of St. Thomas, Mr. Joheir’s extensive knowledge of the field reinforces his ability to create value for investors in the Company.
IMRAN QAMAR
CO-FOUNDER, CHIEF DEVELOPMENT OFFICER
Mr. Qamar is a seasoned real estate developer with 28+ years of international leadership experience in design, construction, and real estate development, specializing in commercial, hospitality, multi-family, medical, institutional, and education projects. He is a big-picture leader with a strong design sense and has managed multi-disciplined teams across diverse locations while maintaining budgets and schedules. Mr. Qamar holds a Bachelor's and Master's in Architecture and an ABD PhD in Urban Design from the University of Southern California.
AAMIR MANIAR
CO-FOUNDER, CHIEF FINANCIAL OFFICER
Mr. Maniar brings over 20 years of accounting and finance experience having worked with Fortune 500 companies, Big Four accounting firms, including KPMG and Ernst & Young, as well as regional firms. He has provided valuable advice to both public and private real estate clients on various issues related to financial reporting, SEC filings, compliance, auditing, M&A due diligence, business strategies, capital raising, and debt structuring. Mr. Maniar holds a BBA in accounting from the University of Houston and an MBA in finance from Rice University. He is also a certified public accountant.
ASH NOORANI
CO-FOUNDER, CHIEF INVESTMENT STRATEGIST
Mr. Noorani is an experienced commercial real estate agent with a proven track record of success in brokering deals for various asset classes, including C-stores, retail shopping centers, multifamily, and land acquisition. With a deep knowledge of the local market and expertise in using financial strategies such as 1031 exchanges to generate passive and active income, he has developed long-term relationships with clients across a range of industries. In addition to his work in commercial real estate, Ash also has over 20 years of experience as an entrepreneur in the retail industry.
SHEHBAZ ALWANI
CO-FOUNDER, CHIEF OPERATING OFFICER
Mr. Alwani has over 15 years of experience in the real estate and hospitality industries. His background as a former JP Morgan Chase commercial banker provides a deep level of financial analysis, enabling him to effectively manage projects from start to finish. With a keen eye for detail and a reputation for ensuring projects run efficiently, his expertise in project management and operations has contributed to the success of numerous real estate and hospitality ventures.
Team
Our Great Team
FADI JOHEIR
CO-FOUNDER, CHIEF EXECUTIVE OFFICERIMRAN QAMAR
CO-FOUNDER, CHIEF DEVELOPMENT OFFICERAAMIR MANIAR
CO-FOUNDER, CHIEF FINANCIAL OFFICERASH NOORANI
CO-FOUNDER, CHIEF INVESTMENT STRATEGISTSHEHBAZ ALWANI
CO-FOUNDER, CHIEF OPERATING OFFICER
ACRE EXPERIENCE
- 14 Million SF Designed, Built and/or Managed.
- $1.95 Billion Tangible Assets Built.
- Across 6 Countries and 26 US States.
- 100 + years of combined team experience.
Our team's extensive track record of successfully completed projects showcases our expertise and validates our ability to deliver exceptional results
FUND STRUCTURE
| Fund Structure | General Partner and Limited Partner |
|---|---|
| Target Fund Size | $20,000,000 |
| Min Capital Commitment | $50,000 / share (400 shares available) |
| Preferred Return | 6-8% - LP (Class A, Class B and Class C shares) |
| Waterfall ROI | 75 (LP) / 25 (GP) upon exit |
| Closing period | 12 months |
| Fund Term | 5 Years from the closing of the offering period |
| Minimum raise | $5,000,000 |
| Min. Commitment Period | 5 years |
| Exit Strategies | Portfolio Sales to Institution / Public REIT Sale of Properties. Disposition during peak market cycle. Refinance & Hold |
| INVESTOR TYPE | RAISE | PREFERRED RETURN | |
|---|---|---|---|
| 1 | Class A (round 1) | $5MM raised | 8% |
| 2 | Class B (round 2) | $5MM raised | 7% |
| 3 | Class C (round 3) | $10MM raised | 6% |
TARGET MARKETS
Given the thriving real estate development market in Texas, ACRE has ample target markets and intends to primarily pursue projects in the Houston metro area, while remaining open to exceptional opportunities in the DFW, Austin, and San Antonio metro markets.
ACRE aims to leverage our network and contacts to pursue unlisted, off-market opportunities, which typically offer below-market rates, with a focus on cash-producing assets in the initial stages and a gradual transition to traditional development projects, in line with our investment strategy.
Our focus will be on income-producing assets in the multi-family sector that require minor improvements, repositioning, or other adjustments to enhance performance, enabling ACRE to generate immediate cash flow and income, and deliver prompt returns to our investors.
Following the acquisition of these assets, ACRE will expand its focus to pursue land and development opportunities within conventional multi-family sector.
| ACQUISITION CRITERIA * | |
|---|---|
| 1 | Properties in high growth markets in Texas |
| 2 | Strong underperforming, value-added properties |
*As market conditions warrant, Atls may modify these strategies, including the acquisition criteria, or undertake new strategies
INVESTMENT STRATEGY
ACRE’s value-add multi-family strategy involves purchasing properties which are undervalued or underperforming and making improvements to increase its value and cash flow. This can involve renovations, upgrades, or repositioning the property.
Value-add multifamily investing can be a great way to generate high returns for investors. However, it is important to carefully select the right property and implement the right improvements in order to be successful.
There are five key elements to a successful value-add multifamily investment strategy:
- Market selection: The first step is to select a market that is growing and has a strong demand for multifamily housing. This will ensure that the property you purchase will be able to command higher rents and attract high-quality tenants.
- Property selection:: Once you have selected a market, you need to find the right property. The property should be undervalued or underperforming, and it should have the potential to generate significant returns after the improvements are made.
- Improvements:The next step is to identify the necessary improvements that need to be made to the property. These improvements should be designed to increase the value and cash flow of the property.
- Management: It is important to have a good property management team in place to manage the property after the improvements are made. The property management team should be experienced in managing multifamily properties and should be able to maximize the income from the property.
- Exit strategy: Finally, you need to have an exit strategy in place. This means knowing when you will sell the property and how you will generate a return on your investment.
INVESTMENT STRATEGY (CONT.)
| Purchase Price | Time Frame | Strategy | Preferred Returns | IRR | Exit Goal | Waterfall ROI | |
|---|---|---|---|---|---|---|---|
| PROJECT 1 | |||||||
| Value Added Multi-Family | $3-5 MM | 1 - 3 Years | Operating Efficiency | 6-8% | 18% - 20% | 6 - 7 CAP | 75/25 - LP/GP |
| PROJECT 2 | |||||||
| Value Added Multi-Family | $3-5 MM | 1 - 3 Years | Operating Efficiency | 6-8% | 18% - 20% | 6 - 7 CAP | 75/25 - LP/GP |
| Mark | |||||||
| Ground Up Multi-Family Dev | $8-10 MM | 3 - 5 Years | Develop/Optimize | 6-8% | 14% - 16% | 5 - 6 CAP | 75/25 - LP/GP |
EXIT STRATEGY
ACRE is operating with four exit strategies for each individual project:
Portfolio sales to Institution / public REIT
In this strategy, Atlas will present the assets to large institutional buys, REITs and public companies to purchase individually or as a portfolio. Recent market transactions has shown an appetite by such buyers to acquire assets in the Texas market – especially in the multi-family space. This may be the highest return exit strategy for Atlas assets.
Disposition during peak market cycleIn this strategy, ACRE may consider offloading a project / asset at an opportune time whether the project / asset is complete or not. This may be done between phases or stages of the project (such as after completing platting, at the time building permit is ready etc.) This can result in quicker profit taking
Refinance & HoldAnother attractive exit strategy may be to refinance the asset at the end of the development cycle and hold it for continued cash flow. Some investors may cash out at this time while others may choose to stay on with the project.
States with the most population growth, 2021 to 2022
Estimated chanp 2021 to 2022
Texas
Florida
North Carolina
Georgia
Arizona
South Carolina
Tennessee
Washington
Utah
Idaho
BENEFITS OF INVESTING IN A FUND
-
Potential for high returns:
Value-add multifamily investing can be a very profitable investment. The potential returns are higher than those of traditional real estate investments, such as core or core-plus funds.
-
Diversification:
Investing in a value-add multifamily fund can help to diversify your real estate portfolio. This is because the fund invests in a variety of properties in different locations.
-
Professional management:
The fund's managers are responsible for selecting the properties, making the improvements, and managing the properties after the improvements are made. This frees up your time and allows you to focus on other aspects of your investment portfolio.
-
Foreign Investor Benefits:
This investor type will be investing in a stabilized American currency, as well as reaping the rewards of taking advantage of visa opportunities.
-
Tax benefits:
Value-add multifamily investments can offer a number of tax benefits, such as depreciation deductions, 1031 Exchange, and passive income.
DISCLAIMER
Risk Factors
Investing in the concepts discussed herein involves a high degree of risk, including the possible partial or complete loss of your investment. Real estate, in addition to being an illiquid investment with an uncertain liquidity date, may have other risks. These investments may have other risks involving:
- Uncertainties in the financial markets which may result in increased debt service costs or failure to obtain financing.
- Uncertainties in the real estate entitlement process, which may result in increased costs, delays, and risks of ownership of the property.
- Uncertain or weak general market conditions relating to the future disposition of properties.
- Possible unforeseen costs or liability associated with the properties.
- Competitive pressures on rental rates and selling prices.
- Possible conflicts of interest.
- Uncertainty of legal and regulatory environment.
- Uncertainty regarding future property taxes and income taxes in jurisdictions where the individual or several properties may be located.
- Uncertainty of the value of the currencies of the countries where the individual or several properties may be located and denominated currencies of the investments.
The past performance of any of Atlas CRE Fund, L.P. or its affiliate’s investments is no guarantee of future results.
Not An Offer Of Legal And Tax Counsel
Atlas CRE Fund, L.P. does not offer tax or legal advice, and highly encourages potential partners and investors to seek the counsel of an attorney regarding any partnership, joint venture or investment, as well as seek the counsel of a tax professional or Certified Public Accountant (CPA) or similar tax professional in your jurisdiction to determine if there are any potential tax liabilities or consequences as a result of partnering with us on transactions and acquisitions
No Guarantee
All potential investors should understand there are NO GUARANTEES of any success, outcome or profitability of any transaction or undertaking, expressed or implied by Atlas Capital Fund, LP and/or any of its members, shareholders, officers or affiliates or authors of this Investor Presentation and will NOT be liable for any financial or other losses or damages incurred as a result of any undertaking.
Contact
Contact Us
Location:
800 West Sam Houston Parkway South, Suite 135, Houston, TX 77042
Email:
fjoheir@atlas-investing.com
iqamar@atlas-investing.com
amaniar@atlasinvesting.com
anoorani@atlas-investing.com
salwani@atlas-investing.com
Call:
+1 (713) 894-2703
+1 (832) 420-9491
+1 (713) 562-3849
+1 (832) 455-6486
+1 (713) 261-8565