Kipling Capital Inc.


Disciplined Value-Add Investing

Regatta at Lake Lynn

Regatta at Lake Lynn is located in Raleigh, North Carolina. The property is in an attractive infill location close to Downtown Raleigh, Research Triangle Park, North Carolina State University and other employment drivers. Manager closed the transaction within 30 days of signing the purchase contract. The business plan calls for selective improvements including landscaping upgrades, exterior painting and amenity enhancements. The Manager is also planning a targeted interior renovation program to maximize the value of the asset.

The acquisition of a Class B apartment complex with a specific plan for value-add improvements and enhanced management.

35 Cambridge Park Drive

Identified an owner/user who was struggling to sublease a Class B office building in Cambridge and delivered a new lab building into a extremely low vacancy rate (1.5%) market with limited new supply. This off-market transaction was sourced via an unsolicited call to the corporate owner/user and the development team utilized their relationships and knowledge of zoning and entitlement procedures to expedite the entitlement process by 6 to 18 months. Met market demand by delivering Cambridge’s only new Class A Life Science building during the Fall of 2018.

The acquisition of an older, Class B, office/R&D building to develop into a 224,302 SF state-of-the art life science facility in Cambridge, MA

Holiday Inn Cherry Creek

Holiday Inn Cherry Creek is a 269-room compact full service Holiday Inn Hotel located in the top retail and business district in Denver and acquired on February 5, 2019. Investors participated in a preferred equity investment capitalizing up to 89.5% of the total cost with a business plan to renovate and convert the property to a Hilton branded Doubletree Hotel and replace and upgrade the hotel management company. Project was financed with low leverage (45%) LTC and projected to return 90%+ of equity through operating cash flow. The projected opening of the hotel is Q1 2020.

An off-market preferred equity investment in the recapitalization, renovation and rebranding of a Holiday Inn Hotel to a Double Tree by Hilton hotel.

Portofino Senior Apartments

Portofino is an institutional quality asset built in 2002 under the Section 42 Low-Income Housing Tax Credit (“LIHTC”) program. A pre-existing relationship with the developer provided a path to acquire the property at a purchase price below the outstanding debt, and approximately 43% below the cost of construction. The original developer filed for bankruptcy protection in March 2012 and sought to emerge from bankruptcy with a direct sale to as part of a confirmed Plan of Reorganization.

The acquisition of a distressed 205 unit age restricted apartment community, located in Henderson, NV

Arapahoe Club Apartments

Arapahoe Apartments was acquired In September 2012 from the original developer, who built the property in 1994 and had owned the property for 18 years. This was an off market acquisition with an elderly seller who needed to exit the business due to his age and health. While the net operating income of the property had increased by 15% since it was last offered for sale, the price has fallen by 18%, representing opportunistic timing for investors. The manager added value by curing the deferred maintenance; improving the curb appeal and completely remodeling the clubhouse, fitness center and pool area.

An opportunistic off-market acquisition and an effective value–add.

Boston Life Sciences Portfolio

A controlling investment in the acquisition of the Boston Life Sciences Portfolio, a three-building office/laboratory portfolio totaling 122,600 square feet in suburban Boston. The Portfolio was acquired off-market from a corporate seller at a favorable cost basis, below comparable trades in the market and at a significant discount to replacement cost. The business plan is to capitalize on the significant shortage of available space in the Boston life sciences market and offer prospective tenants a move-in ready, high-quality product that can house a combination of GMP manufacturing space, biology or chemical laboratory use and traditional office space.

A controlling investment in the off-market acquisition of the Boston Life Sciences Portfolio, a three-building office/laboratory portfolio.

Southeast Apartment Portfolio

Comprised of six properties totaling 2,271 units, the Southeast Portfolio properties are located in Charlotte, Atlanta, Dallas and Orlando. The properties are extremely well located and the business plan calls for exterior improvements to enhance the properties and improve their position in each sub-market. In addition, a large capital budget has been established to increase rents through interior upgrades. The acquisition was made in joint venture with a NASDAQ traded public company.

A complex transaction involving the purchase of six REITs that owned the real estate as opposed to purchasing the real estate directly.

Self Storage Portfolio

Joint ventured with an established self storage development company to develop a portfolio of self-storage properties in low supply, high-density markets including New York City, Chicago, and Milwaukee. Emphasis is on adaptive reuse and ground-up opportunities creating differentiated facilities with features such as the ability to drive through the climate controlled building and to load/unload within close proximity of an individually rented unit.

A joint venture to develop innovative institutional grade self storage properties in carefully selected underserved markets.

Note — All of the investment offerings related to the transactions listed above have been completed, are no longer available to investors and the fund and project names used are not necessarily the names used in the investment offering. Past performance is not indicative of future results. Please refer to our Statement of Qualification.