“Someone’s sitting in the shade today because …greenbridgemgmt.com/images/greenbridge_intro_2015.pdf · “Someone’s sitting in the shade today because someone planted a tree

“Someone’s sitting in the shade today because

someone planted a tree a long time ago.”

-Warren Buffet

9355 Wilshire Boulevard • Suite 350 • Beverly Hills, California 90210 • Office (310) 273-5511 • Fax (310) 273-1177 | WWW.GREENBRIDGECORP.COM

Disclaimer

THE INFORMATION CONTAINED HEREIN IS PROVIDED TO YOU AT THE REQUEST FOR INFORMATION PURPOSES ONLY AND IS NOT, AND MAY NOT BE RELIED ON IN

ANY MANNER AS, LEGAL, TAX OR INVESTMENT ADVICE AND DOES NOT COSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY AN INTERET IN

GREENBRIDGE MANAGEMENT INC. AND GREENBRIDGE INVESTMENT PARNERS INC. (COLLECTIVELY, “GREENBRIDGE”). THE INFORMATION CONTAINED HEREIN

PROVIDES A SUMMARY ONLY AND IS SUPERSEDED BY, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO, THE OFFERING MEMORANDUM, WHICH CONTAINS

ADDITIONAL INFORMATION ABOUT THE INVESTMENT OBJECTIVE, TERMS AND CONDITIONS OF AN INVESTMENT IN THE SPECIFIC OPPORTUNITY AND ALSO

CONTAINS TAX INFORMATION AND RISK DISCLOSURES THAT ARE IMPORTANT TO ANY INVESTMENT DECISION, AND THE DETAILED PROVISIONS OF THE LIMITED

PARTNERSHIP AGREEMENT.

INVESMENT WILL INVOLVE SIGNIFICANT RISK DUE TO, AMONG OTHER THINGS, THE NATURE OF THE INVESTMENT. NO ASSURANCE CAN BE GIVEN THAT

INVESTMENT OBJECTIVES WILL BE ACHIEVED OR THAT INVESTORS WILL RECEIVE A RETURN OF THEIR CAPITAL.

CERTAIN INFORMATION CONTAINED HEREIN CONSTITUTES “FORWARD-LOOKING STATEMENTS,” WHICH CAN BE IDENTIFIED BY THE USE OF FORWARD-LOOKING

TERMINOLOGY SUCH AS “MAY,” “WILL,” “SEEK,” “SHOULD,” “EXPECT,” “ANTICIPATE,” “PROJECT,” “ESTIMATE,” “INTEND,” “CONTINUE,” OR “BELIEVE” OR THE

NEGATIVES THEREOF OR OTHER VARIATIONS THEREON OR COMPARABLE TERMINOLOGY. DUE TO THE VARIOUS RISKS AND UNCERTAINTIES, INCLUDING THOSE

SET FORTH UNDER “RISK FACTORS AND POTENTIAL CONFLICTS OF INTEREST” IN THE OFFERING MEMORANDUM, ACTUAL EVENTS OR RESULTS OR THE ACTUAL

PERFORMANCE OF INVESTMENT MAY DIFFER MATERIALLY FROM THOSE REFLECTED OR CONTEMPLATED IN SUCH FORWARD-LOOKING STATEMENTS.

GREENBRIDGE AND THEIR RESPECTIVE AFFILIATES BELIEVE THAT SUCH STATEMENTS AND INFORMATION ARE BASED UPON REASONABLE ESTIMATES AND

ASSUMPTIONS. HOWEVER, FORWARD-LOOKING STATEMENTS AND INFORMATION ARE INHERENTLY UNCERTAIN AND ACTUAL EVENTS OR RESULTS CAN AND WILL

DIFFER FROM THOSE PROJECTED. THEREFORE, UNDUE RELIANCE SHOULD NOT BE PLACED ON SUCH FORWARD-LOOKING STATEMENTS AND INFORMATION.

NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION OTHER THAN THAT WHICH IS CONTAINED HEREIN AND, IF

GIVEN OR MADE, SUCH INFORMATION OR REPRESTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED OR RELIABLE. WITHOUT THE PRIOR

WRITTEN PERMISSION OF GREENBRIDGE: (I) THE INFORMATION IN THIS DOCUMENT MAY NOT BE DISCLOSED OR OTHERWISE PROVIDED TO OTHERS; AND (II) THIS

DOCUMENT MAY NOT BE REPRODUCED OR PROVIDED TO OTHERS, IN EACH CASE WHO ARE NOT DIRECTLY CONCERNED WITH YOUR DECISION REGARDING SUCH

INVESTMENT. YOU WILL BE RESPONSIBLE FOR COMMUNICATING THE CONFIDENTIAL NATURE OF THE INFORMATION AND THIS DOCUMENT TO ALL SUCH PERSONS

AND THE COMPLIANCE BY ALL SUCH PERSONS WITH THESE RESTRICTIONS.

CERTAIN INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM PUBLISHED SOURCES AND/OR PREPARED BY THIRD PARTIES AND IN CERTAIN CASES HAS

NOT BEEN UPDATED THROUGH THE DATE HEREOF. WHILE SUCH INFORMATION IS BELIEVED TO BE RELIABLE FOR THE PURPOSES USED HEREIN, NONE OF

GREENBRIDGE OR ANY RESPECTIVE PARTNERS, SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR AFFILIATES ASSUMES ANY RESPONSIBILITY

FOR THE ACCURACY OF SUCH INFORMATION.

THE PROJECTED INTERNAL RATES OF RETURN AND EQUITY MULTIPLES INCLUDED IN THIS PRESENTATION ARE CALCULATED USING A MODEL AND ARE BASED

UPON ASSUMPTIONS DETERMINED BY THE SPECIFIC PARTNERSHIP IN EACH RESPECTIVE INVESTMENT OPPORTUNITY. THE PROJECTED RETURNS ARE SUBJECT

TO INHERENT LIMITATIONS INCLUDING THE PROJECTION OF MARKET AND ECONOMIC RISKS. THE ACTUAL RETURNS ACHIEVED ON UNREALIZED INVESTMENTS

WILL DEPEND ON, AMONG OTHER FACTORS, FUTURE OPERATING RESULTS, THE VALUE OF THE ASSETS AND MARKET CONDITIONS AT THE TIME OF DISPOSITION,

LEGAL AND CONTRACTUAL RESTRICTIONS ON TRANSFER THAT MAY LIMIT LIQUIDITY, ANY RELATED TRANSACTION COSTS AND THE TIMING AND MANNER OF SALE,

ALL OF WHICH MAY DIFFER FROM THE ASSUMPTIONS AND CIRCUMSTANCES ON WHICH THE VALUATIONS USED IN THE PRIOR PERFORMANCE DATA CONTAINED

HEREIN ARE BASED. ACCORDINGLY, THE ACTUAL REALIZED RETURNS ON UNREALIZED INVESTMENTS MAY DIFFER MATERALLY FROM THE RETURNS INDICATED

HEREIN. THE PROJECTED RETURNS SHOULD NOT BE REGUARDED AS A REPRESENTATION OR A GUARANTEE THAT A SPECIFIC INVESTMENT WILL REFLECT ANY

PARTICULAR PERFORMANCE OR THAT IT WILL ACHIEVE OR IS LIEKELY TO ACHIEVE ANY PARTICULAR RESULT OR THAT INVESTORS WILL BE ABLE TO AVOID

LOSSES, INCLUDING TOTAL LOSSES OF THEIR INVESTMENT. ALL DATA AND NUMERICAL INFORMATION HEREIN ARE APPROXIMATE, UNLESS OTHERWISE NOTED.

GREENBRIDGE CAUTIONS INVESTORS TO CAREFULLY CONSIDER THE RISKS INVOLVED WHEN INVESTING IN THE REAL ESTATE MARKETS. INVESTORS SHOULD

REVIEW THE RISK FACTORS AND MARKET COMMENTARY AS DESCRIBED IN THE OFFERING MEMORANDUM BEFORE INVESTING. ALL PERFORMANCE AND OTHER

INFORMATION CONTAINED HEREIN IS AS OF JUNE 30, 2014 UNLESS OTHERWISE INDICATED OR THE CONTEXT OTHERWISE REQUIRES.


What Makes

Greenbridge differentFrom Other Real Estate Companies?

Founded in 2012, Sean Hashem and Fareed Kanani formed Greenbridge Investment Partners, Inc. and

Greenbridge Management Company to acquire and manage value add real estate properties through

repositioning and turn around to achieve above average returns on invested capital. The principals at

Greenbridge are committed to their investors, lenders, brokers and tenants to provide success that is

mutually dependent and strictly performance driven.

The partners at Greenbridge have closed over $300 million in commercial real estate transactions in the

last three years.

The Principals of the firm have played an integral part of over $1 Billion in real estate transaction in the

last quarter century.

To provide our stakeholders steady deal flow with above average cash flow and overall

returns by acquiring class A type value added real estate. We achieve our targeted returns

through the use of customized debt and equity structures that maximize returns on equity

invested.

OUR STORY:

OUR MISSION:

GREENBRIDGE has a diverse portfolioof commercial office, medical, and retail properties.


The Greenbridge Value Add Method

How Does Greenbridge Create Value for Its Partners?


The Value Add Method

A look At The Market Through Our Lens

Attractive properties with upside potential are limited and

sometimes difficult to locate. Being the first to the race and

having a visionary approach has enabled Greenbridge to

acquire premiere real estate.

Using our vast relationships with credit tenants primarily in

California, we can quickly identify the right fit tenant and

unlock the embedded upside immediately. Simultaneously,

our firm applies creative equity structures to maximize

capital returns.

Greenbridge typically acquires real estate that is overlooked or rejected by a traditionalist mentality. Our strategy in value-added real

estate investing is designed to mitigate risk by employing a higher level of due diligence, and re-evaluating the property’s highest

and best use.

Once we acquire a problematic, underutilized, or mismanaged property we immediately begin to create value through repositioning,

and perhaps refurbishing. In time, Greenbridge can completely improve the performance and quality of the asset. Greenbridge will

then refinance or sell the enhanced property to an institution, or directly to a user at a handsome profit.

Greenbridge maintains ties with REITS and closed end funds with sizable real estate portfolios. These large corporate real estate

owners generally look at real estate holdings differently than someone who is solely in the real estate ownership business. Often

when corporations sell properties, being so large, they simply wish to remove the asset from their portfolio regardless of whether it

was profitable or not; enabling them to get on with their core business.

Since the big funds have little to no desire to reposition the properties chosen by their committee members to be sold; it presents a

great opportunity for a repositioning team to step in and maximize the value of the property for themselves.


What We See vs. What Others Do Leveraging Our Market Experience

Tenants are not performing well

Building is not producing enough revenue

Short term tenants do not match our investment

needs

Location does not conform to our requirements

Too big of a project for the limited resources that

are available

Interest rates are really low – let’s just buy

I want a Los Angeles property and am willing to

give up exceptional profits with lower cash flows

so it is “close to home”.

Purchase on a very low basis irrespective of in place cash flow;

but always looking to get a future cap rate in excess of 10% or

more.

How quickly can we reposition the asset to refinance and return

original capital to partnership?

How can we maximize our equity investment using optimal

structures?

Tenancy lacks synergies, this can be addressed to add value

Potential additional revenue can be created, such as adding a

billboard or charging for parking

Short term tenants need to be removed so a large credit tenant

that we have relationships with can be brought in

Current tenants are not appropriate for the market area and are

paying well under market rents, per our rigorous market study

The property can be repositioned to a completely new use

Is there excess land that can be entitled or developed in the

future?

Using our local market knowledge to identify a location that is up

and coming and will be demanding higher rent in the future

Provide Greenbridge’s vast network of in house real estate

professionals to add value

Greenbridge Partner’s PerspectiveTraditional Real Estate Buyer’s Perspective



Lenders

•Commercial Banks

•Insurance Companies

•Regional Banks

•Investment Banks

•CMBS – Securitized loans

Brokers

•Investment Brokers

•Investment Banks

•Tenant Representative

•Building & Leasing Brokers

Services Provided

•Property Management

•Legal & Tax Network

•Physical inspections

•Due Diligence

•Accounting/Reporting

•Compliance

•Consultation

Owners


Greenbridge

The Greenbridge Network

• Developers

• JV/Operators

• Real Estate Managers

• Institutional Capital

1. Acquisition of Property Through a

Distressed or Otherwise Unique

Opportunity

2. Improve Property Through

Professional Management and

Specific Improvement /

Turnaround Strategy

3. Lease Vacant Space & Create

Tenant Synergies to Stabilize Rent

Roll

4. Transform Property to Best-in-Class for Core

Positioning

5. Sell Property at Higher

Multiple/Refinance

Typical Property Life Cycle


A Real Life Example of a Value Add Plan For Our Latest Project



The Los Angeles Market at a Glance• Rental rates have reached the proverbial trough following the Great Recession and during the recovery period.

• It is clear by the graphs below, that we have hit the inflection point in downward pricing that existed in the market over the last

couple years from both a macro and micro geographical level.

• Over the last year and half, pricing has started to pick up strong momentum, which will help support heightened valuations.

– Los Angeles is on the brinks of the expansion phase in a business cycle with a lot of room for pricing to grow, as we are still

far away from pre-recessionary pricing levels.

• A shift has occurred in the pricing pressure paradigm, which is now in favor of owners

• There are many fatigued and inexperienced owners that have had enough over the last 7 years and are looking to sell their

assets.

• The 5-7 year investment horizon clock is coming due for many of the institutional funds, resulting in divestment of their assets.

• All of these factors, coupled with Greenbridge’s rigorous asset selection process, efficiency and forward-thinking will allow us to

thrive and reach the robust returns we seek for ourselves and investors/partners.

Office Rental Rate for Los Angeles, CA ($/SF/Year) Retail Rental Rate for Los Angeles, CA ($/SF/Year)

• Represents realized inflection points

• Source: LoopNet at Q2 2014



The Partnership Defined

What Does a Greenbridge Partnership Look Like?

11


Investment Structures

& Targeted Returns

*Past performance does not guarantee future results or returns.

General Partner (GP) Greenbridge Investment Partners

Limited Partner (LP)

Minimum Investment$500,000

Typical Equity Size $3ML - $10ML after which 60% - 80% financing is utilized depending on project

Asset ManagerGreenbridge Investment Partners will manage the property and make ownership

decisions alongside investor / partners

Ownership InterestThe majority of the investment equity shall be provided by the Limited Partners. In

return, the LPs shall receive an ownership interest and priority of cash flows

Projected Returns*

Targeted year over year overall return of 20% to 30% (IRR) to the partnership before

promote - Equity multiples of 2.5x to 3.5x

Target cash on cash returns of 10% to 15% annual returns to partnership

Target debt structure of 60% to 80% loan to cost - higher leverage will be used if

appropriate

Limited Partner Preferred Return: 5% to 8%

Anticipated holding period: Between 3-10 years depending on the scale of the project

Distriubtion Priority

Each respective deal will have a unique structure in regards to priority of cash flow.

However, typically after preferred return has been delivered, the investors will receive

all, or most, of his/her equity before the LP/GP splits begins

Please review cash flow example provided for more details

Lender Recourse

If recourse is required by lender, individual principals of Greenbridge will sign the

recourse provisions

*Risk Factors

An investment in real estate involves risk of loss. Investors should purchase assets

within a specific risk category that best suits him/her, and must have to have the ability

to absorb a loss of investment.



Investors / Partners Greenbridge Investment Partners

Initial Equity Contribution

Potential Capital Call Requirements

No such requirement needed to date

Receive tax benefits, such as depreciation

and interest deductions

Vote when necessary on major events such

as when to sell or refinance

Find potential opportunities in open market

Secure property at target price

Secure financing not available to everyday investor

and guaranteeing loans when necessary

Underwrite property and execute lengthy due

diligence on acquisition

Oversee formation of partnership

Once acquired - manage building directly in-house

Leasing and Sales

Accounting Services

Budgeting and Reporting

Construction Management

Position property to begin turnaround/repositioning

Produce plans with architect if applicable

Create plan to bring rents up to market and secure

credit tenants

Once stabilized - potentially recapitalize property in

the form of refinance through banking relationships

Continue to manage property and provide cash

flow to partnership

When appropriate, sell property and find potential

exchange properties

Each Party’s Respective Rolls


Investor 1

123 West Main Street LLC,

a Delaware limited liability company

123 West Main Street

Los Angeles, CA 90022

25% Member

Greenbridge Investment Partners Investor 2

25% Member

Property

50.0% Member(Subject to Priority of Cash

Flows)

Manager & General Partner

• Investors are listed on title and

the LLC with their capital priority

clauses in operating agreements

• Investors have access to “The

Greenbridge Online Data Room”,

an online data base with all

financial data of property.

• Income/expense report

• Rent Roll

• Year-end financials

• Investors receive their pro rata of

the tax benefits, such as

depreciation and interest

deductions

• Investment risk limited to only

capital invested by investor due to

Greenbridge Principals

guaranteeing loans from banks

and/or attaining non-recourse

debt.

The Legal Structure



Each partner will have access to our

“Data Portal” for their particular

investment. Inside they will find all

applicable information and financial

reporting on their respective

investment.

This provides our partners with the

utmost level of transparency.

The “The Greenbridge Online Data Portal”



The Greenbridge Fee Structure

The preferred return is the cash flow that is

delivered to the investor with priority before

there are any profit sharing fees with

Greenbridge. This usually ranges from 5%-8%.

At an 8% preferred return, the investor would

have priority of the first 8% of cash flows before

any profit sharing splits. This is a year over year

number and accrues if actual returns being paid

fall below the preferred return required payout.

Distribution of promote is usually carried out

quarterly.

Fee Terminology

Preferred Return

PromotePromote is the fee to Greenbridge, as a

percentage, for every dollar of value that

Greenbridge adds to project in excess to the

year over year preferred return, plus return of

capital. Typically our promote structure is

between 40%-50% depending on several

factors specific to each deal


Cash Flow Example of Preferred Return & Promote

**The above is for illustrative purposes only. Cash flows and selling price have been shown as an example to illustrate "Promote" and "Preferred Return" terms and do not represent any particular deal or particular rate of return that an investor should expect.**Risk of loss as well as gains can be expected.**Management, acquisition, & disposition fees not show.

The Greenbridge Fee Structure

1 Preferred Return 8% Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

2 Promote Split 50/50 Free Cash Flow to Partnership $0.00 $200,000.00 $225,000.00 $250,000.00 $275,000.00 $300,000.00 $325,000.00 $350,000.00

3

4 Building Price $5,000,000 Preferred Return Direct to Investors @ 8% with no split $160,000.00 $160,000.00 $160,000.00 $160,000.00 $160,000.00 $160,000.00 $160,000.00

5 Down Payment $2,000,000

6 Note: Down Payment is Equity Balance of Free Cash Flow Now Split at 50/50 $40,000.00 $65,000.00 $90,000.00 $115,000.00 $140,000.00 $165,000.00 $190,000.00

7 Contribution of Investors/Partners Investors 50% $20,000.00 $32,500.00 $45,000.00 $57,500.00 $70,000.00 $82,500.00 $95,000.00

8 Greenbridge 50% $20,000.00 $32,500.00 $45,000.00 $57,500.00 $70,000.00 $82,500.00 $95,000.00

9

10 NET CASH FLOW

11 Investor/Partner Income (Row 4+7) ($2,000,000.00) $180,000.00 $192,500.00 $205,000.00 $217,500.00 $230,000.00 $242,500.00 $255,000.00

12 Greenbridge Income (Row 8) - $20,000.00 $32,500.00 $45,000.00 $57,500.00 $70,000.00 $82,500.00 $95,000.00

13

14 Selling Price in Year 7: $10,000,000

15 Profit: $5,000,000

16

17 Investor/Partner 50% Share of Sale $2,500,000.00

18 Greenbridge 50% Share of Sale $2,500,000.00

19

20 TOTAL BLENDED RATE OF PROFIT SHARE:

21 Total Cash Flow to Investor / Partner Over Entire Period: $4,022,500.00 Investor / Partner: 58.09%

22 Total Cash Flow to Greembridge Over Entire Period: $2,902,500.00 Greenbridge: 41.91%

17

GREENBRIDGE INVESTMENT PARTNERS INC.9355 WILSHIRE BLVD, SUITE 350. BEVERLY HILLS, CA. 90210


VALUING

COMMUNITY,

SERVICE,

& RESPECT

“UNDERSTANDING AND

INTEGRITY ARE THE

CORNERSTONES

SUPPORTING A

COORDINATED &

SUCCESSFUL OUTCOME.”

www.greenbridgecorp.com

Documents

“Someone’s sitting in the shade today because …greenbridgemgmt.com/images/greenbridge_intro_2015.pdf · “Someone’s sitting in the shade today because someone planted a tree