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CRESTONE

PROGRAM

10x

Return on Equity

10 Years

5x

Return on Equity

2x

Core+ Office

Crestone Properties

Conventional Office

Micro Office

5000 sqft

1 tenant

40 tenants

Equity

Rollover

Equity Rollover

STEP I

X2

Double the Economic Rent

STEP II

REVALUATION

STEP III

Equity Take Out

Mortgage

1X

1.5X

Additional Income Streams

Additional Income Streams

Conventional Office Rent

Micro Office Rent

(2X)

(1X)

Additional Income Streams

2X+++

Part-Time Office

Coffee bar

Meeting Rooms

Event Space

Hot Desking

Internet

Telephone Answering

Cleaning

Car Wash Valet

Hourly Parking

Print Centre

Hospitality & Office Are Converging

5 Star Amenities

Lease Rates

COMPANY PROFILE

Top Level Asset Manager

Top Level Asset Manager

Asset Class

Retail

Residential

Office

Industrial

Office

12 Year Map

○ 12 Year Map

515 W Pender

970 Burrard

938 Howe

1160 Burrard

1080 Howe

2030 Marine Dr

1488 Main St

1118 Homer

1080 Mainland

6383 McKay St

32615 South Fraser Way

SHARED OFFICE INDUSTRY

Market Segments

Market Segments

Executive Office

Medical Executive Office

Coworking Office

Global Trend

LOW COST

1) Low Cost Mobile Enabling Technology

2) Distributed and Mobile Workforce

3) Lowered Cost through Shared Resources

4) Human Connection

5) Business Opportunities

Global Trend

There is a global trend towards shared office

Landlords who don't cue in, will wake up and realize they are 10 years behind

Converging Asset Classes

Asset Classes Are Converging

This Goes Far Beyond Shared Office

This Is About Users Accessing Real Estate At Higher Efficiency Rates

Landlord Intelligence

Landlord Intelligence

Conventional office landlords MUST pay attention to the Shared Office Segment for the sake of their conventional office assets

Landlords that integrate shared office usage into their conventional assets will outperform competing conventional office buildings

PROPERTY EXAMPLES

1160 BURRARD

Building Concept Repositioning

Downtown Vancouver’s Most Undervalued Strata Office Building

Redevelopment

Redevelopment

Renovation

Utilization of Common Property

28'

8'7''

14'3''

OFFICES

54'5''

LARGE SEATING AREA

OFFICES

How do we make money off of real estate we don’t own?

2030 MARINE DR

North Vancouver's Most Undervalued Strata Office Building

Micro Office Repositioning

Density Transfer

1488

MAIN ST

Conversion Outperformance

  • Shell Purchased Far Below Market
  • Shell & Renovation Cost: $1,100,000
  • Revaluation Post-Stabilization: $2,500,000
  • Term Financing Offered: $1,875,000

32615

SOUTH FRASER WAY

Abbotsford's Newest & Most Beautiful Office Building

  • AAA Commercial Artery
  • New Build Shell & Improvement Cost: < $2M

Majorly Under Serviced Market Opportunity

  • Revaluation Post-Stabilization: >$3M

$20M END VALUE

INVESTMENT

Lease Metrics

Median Lease Term

1 Year

Lease

Metrics

3 - 5 Years

Average Life of Tenancy

> 80%

Renewal Probability

Lease Renewal

Automatic

Stabilized Occupancy Rate

97%

0.5%

Effective Default Ratio

3.9% - 6.9%

Average Rental Growth

Triple Net Lease

Yes

Tenancy Profile

Diversified

Asset Metrics

Asset

Metrics

Cost to End Value

60% - 80%

Target Revaluation Multiplier

1.5X

Average Stabilization Period

18 - 24 months

10 Years+

Add-On Investment Period

< 100 sqft

Average Usable Footprint

Income Profile

Diversified

Internal Rate of Return

30% - 50%

1.7 - 2.2

Return on Equity

15% - 28%

Stabilized Cash on Cash Return

Downside Risk

There is no downside risk

2X MORE PROFITABLE

We are at the bottom of the market, our clients rent 100 sqft offices, you cannot physically downgrade

Can't afford a full-time 100 sqft office, no problem, we can provide you part-time access

2X MORE PROFITABLE

Metro Vancouver Target Areas

Metro Vancouver Target Areas

Port Moody

Delta

West Vancouver

Coquitlam

Surrey

North Vancouver

Downtown

Langley

Port Coquitlam

Vancouver

Mapleridge

Abbotsford

Burnaby

Pitt Meadows

Chilliwack

New Westminster

Mission

Richmond

Investment Terms

Asset Class

Micro Office

Titled Real Estate

Underlying Asset

Investment Terms

Annualized Return

8%

Investment Type

Preferred Equity

Portfolio Rollover

Investment Continuity

Up to 80%

Cost to End Value

Vancouver, Calgary, Toronto

Metro Markets

Preferred Note

$40M

$60M

Bank Debt

Target Raise

$100M

Sell, Refinance, Hold

Exit Options

Development Fee

5%

Management Fee

20% Gross Income

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