EXECUTIVE SUMMARY
GROBMAR Real Estate INVESTMENTS, LLC- REAL ESTATE FUND I
Core Discipline-Acquisition of Value Added Shopping Centers:
Management Team:
GROBMAR Investments, LLC was formed in 2005 by Kenneth Marino. The principal of GROBMAR Real Estate Investments, LLC has years of real estate experience in management, development, acquisitions, and ownership. Using the "team approach" the principal of GROBMAR Investments, LLC has helped facilitate the development and acquisition of over 5,000,000 square feet of Retail properties.Market Overview and Opportunity:
The principals of GROBMAR Real Estate Investments, LLC believe that there is currently a unique opportunity for well capitalized buyers to purchase retail real estate assets at historically high yields and low per square foot pricing as it compare to replacement cost. Over the next 12-48 months trillions of dollars of real estate will become available for sale. This opportunity is the result of distress caused by reckless purchasing that was done over the previous 5 years.
Core Investments/ Mission:
Buying the property at a Cap Rate that is Substantially Discounted to allow Positive Cash Flow to flow from the Date of Purchase- North of a 10 % Cap Rate. This happens through creatively underwriting and structuring of the value added opportunity. The goal of the fund will be to reduce risk and provide a steady income stream from stabilized purchased, and create value and increase returns by purchasing buildings with vacancy by bringing them to stabilization.Investment Size:
(100,000 to 300,000 square feet) Vacancy Rate 15-25 % Range- $10-30 million in dollar amount size amount per deal.Strategy/ Niche:
Opportunity to Add Value through leasing/re-tenanting, upgrades to the property, financial engineering, environmental remediation, GLA additions for those assets located in strong retail locations, provided that the asset is located in strong retail location.Areas of Focus/ Location:
Top 20 Major Metropolitan Areas and Money Centers with MSA Population of 500,000 people or greater with the Dominant Market Position. Better Located Centers in the Business Hub of the market located near the Dominant Mall or the Dominant Super-Walmart. Focused on properties throughout the United States.Type of Centers:
Primarily medium box shadow anchored A income producing properties with outlot opportunities. Also looking at grocery anchored income producing centers with adjacent inline space with outlot opportunities. Both types of centers will feature necessity-retail-anchored tenants.Economic Overview:
Within this fund GROBMAR Real Estate Investments, LLC will acquire, cash flowing, functional well located retail real estate throughout the United States. Using a conservative loan to value ratio of 60 % GROBMAR Investments, LLC will target assets that are between 75% -95 % occupied. Over the life of the fund GROBMAR Investments, LLC will target a leveraged annual return rate of between 15% and 25 % after fees.
Total Capital Commitment/ Closing:
$100,000,000 to be raised for Fund I- Five Separate Tranches of capital will be raised of $20,000,000 each based on timing of Real Estate purchased. We have an exceptionally high closing rate, based on these key elements of our acquisition process: all cash, no financing contingencies, close within 30 to 45 days, ability to overcome complex issues, such as environmental concerns, high vacancy, redevelopment issues, tenant lease issues, and deferred maintenance. We have flexibility to meet the Seller's needs.Investment Strategy/ Hold Time:
Over the past 30 years the principals have demonstrated their ability to source, negotiate, close and manage real estate investments for their own account. The principals will leverage their relationships throughout the United States to find high yield assets that meet the investment criteria. The disposition of properties/ hold time will be evaluated on a single asset basis. Properties will be sold with the intention of maximizing the sale value and be sold individually or packaged together- A usual hold time will be within 5 Years from date of purchase to Value Creation and the Final Sale.
