EQUITY investment:
a.Lower-risk/Lower-reward (“stabilized co-invest”):
Investment after completion of the stabilized Project, at “Market rate”, tenants are paying rent.
Long-term investment (2-10+ years).
Expected yearly return 4% to 7%. Size $300K to $2M
Medium-risk/ Medium-reward (“gap-equity”):
Investment at acquisition of the project fully Leased and entitled. Prior to construction and delivery.
Short-term investment (9-18 months).
Expected yearly return 12% to 20%. Size $1M to $6M
Higher-risk/Higher-reward (“pre-development”):
Investment during development of the project prior to acquisition, leasing and entitlements for deposits, A&E and legal costs. Repaid at acquisition with gap-equity (1-b) and Loan (2-a).
Very short-term investment (4-12 months).
Expected yearly return 20% to 100%. Size $200K to $500K
DEBT investment:
a.Construction/acquisition loans to Projects:
First Trust Deed loans secured by the corresponding acquisition. 70-100% Loan-to-Costs.
Short-term investment (9-18 months).
7% to 10% interests and 1 to 2 points fee.
Promissory Notes to Sage Investco:
Guaranteed by Sage Investco. Funding multiple Projects pre-development costs and operating expenses.
Short-term investment (6-24 months).
12% yearly interest, no fee.