CRYSTAL VIEW

  • Summary

    Summary

  • Strategy

    Strategy

  • Market

    Market

  • Team

    Team

  • Record

    Track Record

  • Terms

    Terms

  • Documents

    Documents

  • Closed

Crystal View Access Fund LLC

Investment Overview

  • Summary

    Summary

    Crystal View Overview

  • Strategy

    Strategy

    Investing in Storage & Mobile Home Parks

  • Market

    Market

    Value-Add, Real Estate

  • Our Team

    Team

    Real estate professionals

  • Track Record

    Track Record

    Preferred return 8%

  • Terms

    Terms

    Summary of Investment Terms

  • Documents

    Documents

    Executive Summary, Presentation, PPM ...

Investment Summary

Fund Type

fund

Storage & Mobile HomeParks

Fund Size

$35,000,000

Amount Closed

$4,650,000

Asset Profile

Value Add

Min. Investment

$50,000

Life of Fund

5 Years

Targeted Return

12% to 15%

Limited spots available to invest

Fund Description

Crystal View Access Fund LLC (the “Fund”) will invest substantially all of its assets in Crystal View Capital Fund II, LLC (“Crystal View”) which is seeking to raise up to $35 million in capital, Crystal View offers a unique investment strategy as it seeks to generate a net annual return of 12% to 15% in a unique, proven strategy targeting value-add and real estate acquisitions of specialized storage and mobile home park real estate primarily throughout the Western and Midwest U.S.

Crystal View Overview

As of March 31st, 2018

  • Performance

    70% Historical IRR
    2.36x Equity Multiple

  • Experience

    $3 Billion of Transactions
    30 Years of Experience

  • Award

    Ranked #1 Value Add Real Estate Fund by Preqin

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Key Considerations

  • Access to an Institutional Fund - The Fund provides individual investors with access to a $35 million institutional real estate fund named Crystal View Capital Fund II, LLC.
  • Low Minimum Investment - The Fund has a low minimum investment amount per investor. The Fund will aggregate the capital raised with other investors allowing it to meet the $1 million minimum investment amount of Crystal View.
  • Proven Track Record - 70.4% net IRR and 2.36x net multiple of investment capital.
  • Unique Investment Strategy - Crystal View continues to find compelling investment opportunities. The opportunities generally emanate from value-add specialized storage and mobile home park assets.
  • High Preferred Return - Crystal View pays a 8% Preferred Return to the Fund.
  • Principal Commitment - The principals and their affiliates, of Crystal View, will invest approximately $3 million into Crystal View.
  • Institutional Service Provider - Crystal View uses a third party administrator named Wes Financial.

Why Real Estate?

  • Diversification

    Real estate investments are considered a non-correlated alternative asset class.

  • Cash Flow & Appreciation

    Stabilized real estate generally benefits from regular and predictable cash flow.

  • Low Interest Rate

    Historically low interest rates may allow real estate to generate higher cash flows.

  • Income Tax Treatment

    Ordinary income can be minimized through the use of an accelerated depreciation strategy that may generate passive losses.

  • Hedge Against Inflation

    Rents, land values and replacement costs typically move upward with inflation.

  • Multiple Exit Strategies

    Real estate assets can be disposed of through individual or portfolio liquidations, asset refinancing, mergers, or a “roll up” through a portfolio capitalization.

Crystal View Investment Objectives

Attractive Returns with Downside Protection

  • Investment Strategy

    Value add investment strategy whereby Crystal View can acquire properties at fair to discounted value and improve net operating income through strict cost controls and operational oversight.

  • Diversification

    Not more than 20% of the aggregate commitments will be invested in a single portfolio property.

  • Incentive Allocation

    20%-40% of the net portfolio profits attributable to the disposition of investments in real estate assets.

  • Preferred Return

    Crystal View pays the Fund an 8% preferred return which is paid quarterly to investors.

  • Principal Commitment

    The Principals and their affiliates will invest approximately $3 million in commitments.

Investment Highlights

Superior Returns. Controls & Optimization. Strong Off Market Deal Flow. Strict Underwriting & Industry Knowledge.

  • Strong Off Market Deal Flow & Acquisitions Team

    • Dedicated sourcing professionals with 30+ years of combined experience
    • 150-200 calls per day per individual
    • 92% of all transactions are sourced off market
    • Hard driving and enthusiastic team
    • Work directly with owners through proprietary software
    • Screening Criteria
      • +200 Units Storage / +100 lots for MH
      • Deal Size $2 - $10 million
      • Geographically located within the continental US
  • Strict Underwriting & Industry Knowledge

    • All transactions are strictly underwritten to help mitigate risks and maximize returns
    • All offers are supported by a detailed financial analysis to help determine the anticipated risk adjusted return on capital before the fund executes on a transaction
    • Financial analysis is supported by sales comparables and market data to help justify assumptions
    • Economic research reports are reviewed for a macro perspective on market conditions
  • Controls & Optimization

    Crystal View has made property management and asset management one of its top priorities to optimize cash flow and ultimately drive portfolio performance. Crystal View is located at our corporate offices in Las Vegas, NV with a team that has over 30 years of combined “hands on” property management and asset management experience. Optimization tools and controls include:

    • Facility and asset management including staffing, safety, security, maintenance, signage, budgeting, rental market surveys, trend analysis, optimizing cash flow
    • Monthly reports prepared by our fully automated property management systems which provide flexible and comprehensive computerized reports to track performance
    • Aggressive rental collection program
    • Centralized tenant invoicing, procurement of supplies and services, and invoicing
    • 4-8 site visits per property per year by Crystal View
    • Daily communication with on-site staff to meet daily, weekly, monthly and at year end to review income/expense goals
    • Preventative maintenance program

Crystal View Key Market Attributes


Crystal View Capital Fund II (“Fund II”) is a private equity real estate fund formed in 2017. Fund II is seeking to raise $35M in equity capital from high net wealth and institutional investors. Fund II was created to invest in Western and Mid-West-based US real estate assets with the following anticipated metrics:

  • Fair price
  • Strong income potential
  • Motivated seller
  • Rents under-market
  • Vacancy rates lower than market
  • Expenses likely subject to reduction by better management strategies
  • "Un-sexy" assets such as mobile home parks and self-storage facilities are an exceptional source of cash flow in all market cycles.
  • Property values below $10 million are targeted to limit competition from “deep pocket”institutional investors.

Crystal View Fund I Markets

Sage Road Mini-Storage

1933 Sage Rd, Medford, OR 97501

Crystal View Capital Fund II, LLC acquired a 31,524 net rentable sq. ft. self-storage facility consisting of 256 self-storage units. This property was purchased at a very fair 8.3% cap rate on existing net operating income. At acquisition, this property was 98.4% occupied. There is a considerable supply – demand imbalance in the Medford OR market which will allow us to consistently raise rents and drive returns at this property. Based on our rental market survey, this property is roughly 12-16% below market for each unit size. Naturally our plan is to bring rents to a market level and capture that increase which will bring this property to a 9.6% cap rate and add $20,952 to our Net Operating Income.

Deal Highlights:

  • Off Market Purchase
  • All Cash Deal
  • Purchased well below replacement cost at $50 per sq ft.
  • Prime Southern Oregon location with limited supply and strong demand
  • Huge upside potential through raising rents to market
fund

American Self Storage

1202 Duke Ave, Sutherlin, OR 97479

Crystal View Capital Fund II, LLC acquired a 31,500 sq ft self storage facility consisting of 268 self-storage units built in 2005. This property was purchased at a very fair 8.8% cap rate on existing net operating income. At acquisition, this property was fully occupied with a waiting list for units. The plan is to bring rents to market and add approx. 100 new units to our inventory. Once the addition is complete and leased up the property will have a net operating income of approx. $220,000 and a valuation of approximately $3,100,000 at a 7% cap rate.

Deal Highlights

  • Off Market Purchase.
  • Purchased well below replacement cost at $53 per sq ft.
  • Prime central Oregon location with limited supply and strong demand.
  • Huge upside potential through raising rents to market.
fund

Mid Cities Self Storage

2102 S 3rd St, Mabank, TX 75147

Crystal View Capital Fund I, LLC is pleased to announce the acquisition of a 75,095 sq ft self storage facility consisting of 539 self-storage units located in Mabank Texas. “This property was purchased for $26 per sq building foot and at a very fair 8.75% cap rate on existing net operating income. We’ve identified significant upside potential on this property i.e. rents are 20% below market and market demand is rising at a decent rate. The plan is to stabilize the asset with new management, bring rents to market, and build 100+ more units. Once complete, the property will have an estimated net operating income of approx $250,000, free cash flow of $178,000, and an estimated valuation of approx . $3,200,000. We are very pleased to add this asset to the Crystal View Capital Portfolio.”

Investment Overview

  • Current occupancy of 95%.
  • Purchased well below replacement cost at $26 per sq ft.
  • Current cash on cash return of 25%.
  • Huge upside potential through raising rents to a market level.
fund

La Mesa Industrial Property

7575 University Ave La Mesa, CA

Crystal View Capital Fund II, LLC acquired a 12,215 sq ft mixed use retail/industrial building built in 1993. At $163 per sq ft., this property is being purchased well below replacement cost. Due to the industrial demand in the greater San Diego Metro area, we are highly confident in our ability to lease this property to a regional/national credit tenant in the $1.25 NNN psf range. In my opinion, this purchase represents a unique opportunity to acquire well located, newer product, in a dense infill market with significant supply constraints.

Deal Highlights

  • Off Market Purchase.
  • All cash purchase.
  • Purchased well below replacement cost at $163 per sq ft.
  • Dense San Diego infill location.
  • Huge upside potential through leasing the space at a market rate.
fund

Crystal View Executive Team

Crystal View has assembled a team of real estate professionals with a combined 150+ years and $2B of industry experience. We execute a disciplined approach at all times, but remain agile with the ability to capitalize on opportunities as they arise. The company culture fosters teamwork and encourages innovation. We are relentless in our pursuit of performance excellence.

  • Matthew Ricciardella

    Matthew Ricciardella

    Principal, Managing Partner

  • Sheri Meyer

    Sheri Meyer

    Vice President Of Operations

  • Nancy Yager

    Nancy Yager

    Controller

  • Andrew Sclater-Booth

    Andrew Sclater-Booth

    Chief Financial Officer

Principal, Managing Partner

Matthew Ricciardella is the Founder and Chief Executive Officer. Mr. Ricciardella is responsible for the management and oversight of Fund II, including investment strategy, fundraising, asset management, and operations. He is a member of Fund II’s Investment Committee and Management Committee. With over 16 years of experience in the real estate industry, he has personally been a principal in over $350 Million in real estate transactions. Prior to forming Fund II, Mr. Ricciardella has successfully managed Crystal View Capital Fund I to over $47 Million in assets under management. Matthew thinks like an owner because he is an owner. With a personal investment of $1,950,000 in Fund I or approximately 20% of the shareholder equity, Matthew has created a very strong alignment of interest, and a personal bond with his shareholders. Under Mr. Ricciardella’s leadership, Fund I’s investors have realized an average internal rate of return of 85% since Fund I’s inception. Matthew has earned a reputation for dealing fairly, honestly and with integrity with his shareholders and sellers which he believes is his most valuable asset.

Vice President Of Operations

Sheri brings over 18 years of executive management experience with extensive knowledge in real estate, property management, construction, and administration. Sheri has been instrumental in the development and implementation of the administrative and reporting procedures, as well as the financial controls and systems. Sheri is responsible for directing the property-level financial operations, leasing, property management, and the construction teams that are critical to the success of real estate investments. Her proven leadership and dedication has ensured the operational excellence of CVC.

Controller

Nancy has 32 years of extensive financial and reporting experience in various industries. Before joining Crystal View Capital, she worked at Focus Property Group for 12 years, providing accounting for land development, commercial projects and master plan communities. Nancy has managed all aspects of accounting, including financial reporting, general ledger, budgeting, cash management, payroll, Accounts Receivable and Accounts Payable. As Controller, she is responsible for the supervision of the day-by-day accounting operations. She has earned a bachelor’s degree in Accounting from Cal State Northridge. In her spare time, she supports several local charities in town, and volunteers with ProCare Hospice of Nevada.

Chief Financial Officer

Mr. Sclater-Booth is the Chief Financial Officer of Crystal View Capital and has over 15 years of private equity and investment banking experience.Andrew previously worked for a family owned private equity groupas Director of Mergers and Acquisitions focusing on opportunistic hospitality acquisitions in destination markets throughout the US and was a Vice President of Acquisitions at Spirit Finance Corporation, a publicly traded REIT sold for $3.5 billion to a consortium of investors led by Macquarie Capital. Andrew started his career in investment banking focusing on mergers and acquisitions and leveraged acquisitions having spent time in the investment banking groups at Société Generale – Mergers & Acquisitions Division, JP Morgan, and Salomon Smith Barney. Andrew graduated from the Johns Hopkins University and is a member of the Turnaround Management Association and the Association for Corporate Growth.

  • James Saas

    James Saas

    Vice President of Acquisitions

  • John Sammarco

    John Sammarco

    Acquisitions Officer

Vice President of Acquisitions

1. 22 years of experience in the real estate industry
2. Joined Crystal View Capital in August 2015
3. BS, University of Southern California

Acquisitions Officer

1. 20 years of experience in sales and business development
2. Joined Crystal View Capital in June 2017
3. BS, State University of New York -Buffalo

Crystal View Capital Fund I Track Record

Crystal View Capital Management, LLC is leveraging the success of Fund I by offering LP commitments in Fund II Project Level Returns for Fund I: 3.2x MOIC / 151.9% IRR

Net to LP investors, CVC Fund I has a 2.36x MOIC or 70.4% IRR

Crystal View Fund Track Record

Notes

1. Management Estimates as of 3/31/2018

Crystal View Capital Fund II, LLC Documents

The following Fund Documents are available to view:

  • Presentation

    The Presentation provides an overview of Crystal View and investing in student housing and multifamily communities.

  • PPM

    The Private Placement Memorandum (PPM) for prospective investors for the Crystal View Fund.

  • Subscription Agreement

    Download the following PDF to view the Subscription Agreement.

Crystal View Access Fund LLC Terms

Investment Summary

Fund

Crystal View Access Fund LLC

Fund Managing Member

CV Manager LLC

Technology Fee

0.75% of the investment amount will be paid to CV Marketplace LLC ("CV Marketplace") for use of the website.

Administrative Expenses

The Fund will pay CV Manager $75,000 per annum for arranging for the audit, tax preparation, income distributions and certain other expenses.

Organizational Expenses

The Fund will pay CV Manager a one time fee of $75,000 for organizational expenses (which may include legal, travel, accounting, filing, and other expenses) incurred in connection with the formation of the Fund.

Initial Closing Amount

$1 million to get Class-A unit status.

Term

3 Years (50% in year 3 and 50% in year 4)

Amount Raised by CityVest

$0 million

Expected Offering Closing

December 31, 2019

Crystal View Capital Fund II, LLC Terms

Investment Summary

Target Size

$35,000,000 Maximum Offering

GP Investment

$3 million

Target IRR

12% - 15% Net IRR to investors

Preferred Annual Return

8% (payable quarterly)

Management Fee

1% on invested capital

Carried Interest

80% to Investor - 20% to Manager

Important Disclosure Statement for the Fund:

This presentation and the information contained herein (the “Information”) is for your internal use only and shall be kept confidential, restricted and proprietary to Crystal View Capital Fund, LLC (“Crystal View”). You confirm that you will treat all of the Information as confidential and will take all necessary precautions to maintain the confidentiality of the Information.

No portion of this presentation may be reproduced or used by or distributed to others, at any time, in whole or in part, for any other purpose without the prior written consent of Crystal View. Acceptance of this presentation by you constitutes an agreement to be bound by the foregoing terms. In allowing you to view the Information, Crystal View undertakes no obligation to provide any additional information or to update, or correct any inaccuracies that may exist in, any of the Information. Crystal View shall not have any liability to you or any other person resulting, directly or indirectly, from the disclosure of the Information to you. The Information is not to be distributed directly or indirectly to any person or entity who does not meet certain legal and professional criteria as an Accredited Investor. This Information is not intended to be distributed, and does not constitute an offer or solicitation in a jurisdiction to any person or entity to which it is unlawful to receive such documentation.

Nothing in this document shall constitute an offer of securities for sale in the United States or any other jurisdiction, or form the basis for any contract or commitment. If there should commence an offering of securities by Crystal View, any decision to invest in any such offer and to subscribe for or acquire such securities must be based wholly on the information contained in a Confidential Private Placement Memorandum (the “PPM”) issued in connection with any such offer, and not on the contents of this presentation. The PPM will contain material information that is not contained in this presentation, including a discussion of material risk factors that may cause you to lose all or a portion of your investment. If there is any inconsistency between the Information contained herein and the PPM, the PPM will prevail. Some Information contained in this presentation constitute “forward-looking statements”, and are based upon estimates, assumptions and expectations about future events or conditions.

Such forward-looking statements are intended only to illustrate hypothetical results under such assumptions, not all of which are described herein. Actual events or conditions may differ materially from those assumed in developing such forward-looking statements, including due to the risk factors described in the PPM. In addition, not all relevant events or conditions may have been considered in developing such assumptions. Accordingly, actual results will vary and the variations may be material. You should understand such assumptions and evaluate whether they are appropriate for your purposes. Crystal View undertakes no obligation to revise any forward-looking statements to reflect subsequent events or circumstances, and you should not place undue reliance on forward-looking statements. Furthermore, past performance of Crystal View or the real estate market generally (whether described in this presentation or otherwise) is not a guide to future performance of real estate investments.

This presentation contains case studies and refers to Crystal View’s calculations, estimates and projections, based on the strategy executed by Crystal View since 2012. Calculations and projections are based on assumptions in the model and include all fees and carried interest, which have been prepared for illustrative purposes only and are not a guide to future performance. Numerous assumptions were used in preparing the case studies, some of which may not be reflected herein. As such, no assurance can be given as to the accuracy, appropriateness or completeness of any particular case study, or whether they reflect current market conditions or future market performance. The case studies should not be construed as either projections or predictions of financial performance, or as legal, tax, financial or accounting advice. The specific characteristics of investments selected by Crystal View in the future may differ materially from those shown in the case studies.

Any investment in funds managed by Crystal View will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold, directly or indirectly, in or within the United States or to, or for the account or benefit of, any U.S. person, except pursuant to an exemption from or in a transaction not subject to the Securities Act and applicable U.S. state securities laws.

The Information and all information and opinions in it are the property of Crystal View. You may not use any portion of this Information except for your personal use, and you may not otherwise distribute any portion of this Information to a third party without the prior written authorization of Crystal View. Crystal View and the logo Crystal View are trademarks of Crystal View and you may not use any of the service mark, copyright or other notices (whether or not in this Information for any purpose, or alter, remove or otherwise obscure any of them without the written permission of Crystal View or any relevant third party owner.

Copyrights © 2018 All Rights Reserved by CityVest Capital Inc
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Value Add

Risk of Loss
Medium 1
Leverage
60-75% 2
Occupancy Rate
Less than 80% 2
Strategy
Heavy Renovations​/Major Retenanting 2
Stable Tenants
Few​/None 2
Hold Period
1-3 Years 2

1 The Risk of Loss is relative to other investment profiles. There is always a risk of total loss.

2 These are typical attributes for this profile of investment and may or may not represent this particular investment.

Multi-Family

Multi-family investments are apartment communities with more than four units. So long as there are people, there will be a need for housing. As the population grows, demand for housing will increase as well.

Target Return (IRR)

The estimated annual return which includes both the annual cashflow and the sale proceeds.

Target Annual Cash

The estimated average percentage annual cash return from the investment.

Estimated Hold

Estimated hold period from investment to realization.

Preferred Return

The preferred return or “pref” is a percentage cumulative return on initial investment that investors must attain prior to the investment manager’s participation in the profits.

Fund Size

ApexOne Fund is raising a maximum of $100,000,000