1- 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). Secured by ownership in the entity holding the Deed.
     Expected yearly return 4% to 7%. Size $300,000 to $2,000,000

     b. 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 $1,000,000 to $6,000,000

     c. 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 $200,000 to $500,000

2. DEBT investment:

     a. Acquisition/Construction 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.
Size $1,000,000 to $25,000,000

     b. Promissory Notes to Sage Investco:
     Guaranteed by Sage Investco. Funding multiple Projects pre-development costs and operating expenses.
     Short-term investment (6-12 months).
     12% yearly interest, no fee.
Size $200,000 to $500,000


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