T2 ACCESS FUND LLC

  • Summary

    Summary

  • Strategy

    Strategy

  • Market

    Market

  • Team

    Team

  • Record

    Track Record

  • Terms

    Terms

  • Documents

    Documents

  • Closed

T2 Access Fund LLC

Investment Overview

  • Summary

    Summary

    T2 Overview

  • Strategy

    Strategy

    Investing in Multifamily + Commercial Assets

  • Market

    Market

    Mobile Homes, Self-Storage, Student Housing and Healthcare Facilities

  • Our Team

    Team

    Real estate professionals with 100+ years of experience

  • Track Record

    Track Record

    Preferred return 8%

  • Terms

    Terms

    Summary of Investment Terms

  • Documents

    Documents

    Executive Summary, Presentation, PPM ...

Investment Summary

Fund Type

fund

Multi-Family Assets

Fund Size

$100,000,000

Amount Closed

$0

Asset Profile

Value Add

Min. Investment

$25,000

Life of Fund

5 Years

15% Net Annual Return Track Record Since Inception

Limited spots available to invest

Fund Description

T2 Access Fund LLC (the “Fund”) will invest substantially all of its assets in T2 Opportunity Fund V, LP (“T2”). T2 is raising $100 million to invest in mid-western multi family and other commercial real estate in off market and opportunistic transactions. Building upon a track record of delivering 15%+ net annual returns since inception, T2 will pay 8% annualized Preferred Return. T2 manages $225 million and has consumated over 100 real estate acquisitions.

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Key Considerations

  • Access to an Institutional Fund - The Fund provides individual investors with access to a $100 million institutional real estate fund named T2 Opportunity Fund V, LP.
  • 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 high minimum investment amount of T2 and obtain a discounted management fee if the Fund invests over $3 million into T2.
  • Proven Track Record - delivering 15%+ net annual returns
  • Attractive Investment Markets - T2’s Investment Locations: Missouri, Michigan, Illinois, Ohio, Georgia, Minnesota, Tennesee.
  • Unique Investment Strategy - In spite of the current landscape, T2 continues to find compelling investment opportunities. The opportunities generally emanate from (i) existing relationships that provide true off-market opportunities, (ii) idiosyncratic situations that other prospective investors shy away from, and/or (iii) T2’s widespread reputation for executing on the “smaller” end of the market.
  • High Preferred Return - T2 pays a 8% Preferred Return.

T2 Service Providers

  • Custodians

  • Auditor & Tax Advisor

  • Third Party Administrator

  • Fund Counsel

T2 Investment Objectives

Maximizing Returns through Value-Creation Strategies

  • T2 employs an opportunistic investment strategy focused on exploiting idiosyncratic price dislocations among commercial real estate assets.
  • T2 will seek to acquire real estate properties that have a clear value-add component and also originate, invest in, or acquire first, junior or participation interests in loans, debt instruments and other financings secured by a broad range of commercial real properties or interests in commercial real properties.
  • Financings will be structured as senior debt, mezzanine debt, preferred equity investments or hybrid investments.
  • T2 will focus primarily on properties that are undervalued or poised for recovery, including assets that may be overlooked by other institutional investors.
  • T2 expects to seek Investments in turnaround situations, repositioning opportunities, recapitalizations, partner buyouts, and value-added situations.
  • T2 will seek properties that provide opportunistic discounts to present market value, as well as non-institutional assets, often in out-of-favor categories, where yields may be more attractive and debt coverage is higher.
  • T2 will also offer bridge-financing to real estate developers and mortgage brokers. Both debt and preferred equity financing may be provided for borrowers seeking an opportunity that may require a rapid closing or loans discounted by conventional lenders due to special situations relating to the property or borrower.

Why Now May Be a Good Time to Invest

Investors in the T2 Fund can benefit from investing in opportunistic and value-add Multifamily Assets from:

  • Returns

    On a risk adjusted basis, multifamily assets are historically more favorable than other real estate sectors. A typically non-correlated asset, apartments rarely experience the volatility of other property types.

  • NOI Growth

    According to AXIOMetrics, multifamily was the only asset class demonstrating NOI growth over the past two years. At year-end 2015, NOI Growth in apartments exceeded 10% and was still growing while other asset classes were in decline (office 4.5%, industrial 3.9%, and retail 2.5%).

  • Increasing Demand

    The number of renters by choice and renters by necessity is increasing. Enrollment at colleges and universities throughout the country has remained strong resulting in record occupancy levels in both on- and off-campus student housing facilities.

  • Occupancy

    Over the next four years, occupancy is projected to hover around 94.5% and 96.0% respectively in market rate multifamily and student housing.

  • Rent Growth

    Nationwide, rents continue to grow as a result of higher occupancy levels, constrained supply and fewer alternatives to renting.

  • Supply

    New supply is projected to average approximately 325,000 units per year over the next four years with absorption being at or near that number.

  • Favorable Financing

    Apartment communities continue to enjoy the most favorable financing terms of any of the commercial real estate sectors.

T2 Key Market Attributes


In spite of the current landscape, T2 continues to find compelling investment opportunities. The opportunities generally emanate from (i) existing relationships that provide true off-market opportunities, (ii) idiosyncratic situations that other prospective investors shy away from, and/or (iii) T2’s widespread reputation for executing on the “smaller” end of the market. Please see Important Disclosure Statement.

Outside of T2’s typical sourcing, several macro themes appear to be emerging that are expected to lead to other opportunities. Such themes include:

  • Perceived over-building of high-end multi-family properties
  • Record-setting pace of brick and mortar retail store closures and related bankruptcies
  • Relatively low YTD CMBS issuance ($12 billion in Q1 2017 vs $17 billion in Q1 2016 vs $26 billion in Q1 2015)
  • Increasing pressure on pension funds and other institutional investors for greater returns as well as liquidity

T2 Property Case Study

770 N. Halsted – Chicago, IL - Generated a 34% net IRR

fund

Investment Overview

January 2013 acquisition of 4 adjoining, multi-tenant, loft office buildings totaling ±170,000 SF in the River West neighborhood of Chicago. The seller was a fatigued owner that was increasingly unwilling to contribute capital in order to drive occupancy beyond the 70% that existed at the time of T2’s acquisition. T2 and its Chicago-based operating partner opted to spend the funds necessary to improve common areas, tenant spaces, and broadly accentuate the creative loft office space. Ultimately, one of the four buildings (±22,000 SF) was sold to its 100% occupant, and the remaining property (±148,000 SF) sold to a New York-based family office (2015). The sale led to T2 realizing a 34% gross IRR and 2.79x gross MOIC.

Actual financial results may vary significantly from what is provided in this presentation. Information and targeted returns are for illustrative purposes only. All returns are based on equity invested by T2.

Investment Summary

Property Type

Office

Location

Chicago, IL

Total Capitalization

$13,700,000

T2 Equity

$3,500,000

Purchase Date

1/2013

Sales Date

9/2016

Realized net IRR

34%

Realized MOIC

28x


T2 Fund Management Team

T2 has assembled a team of motivated real estate professionals with a combined 150+ years of industry experience. T2 executes 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.

  • Jeff Brown

    Jeff Brown

    Co-Founder | CEO | CIO

  • JOHN W. SOUTHARD

    JOHN W. SOUTHARD

    Co-Founder

  • LINDA  SEARCY

    LINDA SEARCY

    Chief Operating Officer

  • JOHN FELKER

    JOHN FELKER

    VP | Portfolio Management

Co-Founder | CEO | CIO

As CEO, Mr. Brown works closely with the principals of the firm in providing broad corporate initiatives, specific investment strategies, and operational oversight. As CIO, he oversees the origination, underwriting, and day-to-day management of T2’s investments. Mr. Brown began his career in real estate in the mid-1990s when working with a national consumer finance company that was later acquired by Wells Fargo. That was followed by his tenure at a Michigan-based family office that doubled as a multi-hundred million dollar hedge fund-of-funds. Mr. Brown received his MBA from the University of Chicago Booth School of Business and his Bachelor’s degree from Wheaton College (Wheaton, IL). While at Wheaton, Mr. Brown was captain of the football team and a 1st Team GTE Academic All-American quarterback.

Co-Founder

Mr. Southard co-founded T2 with Mr. Brown and aids in the strategic direction of the firm. Prior to T2, Mr. Southard co-founded PowerShares Capital Management, LLC, an exchange traded fund (ETF) company established in 2002. Mr. Southard oversaw all research initiatives, portfolio management and trading operations of the company. Mr. Southard has been quoted in the Wall Street Journal, Crain’s, Investment News, TheStreet.com and others. He is a CFA charter holder, has a Bachelorʼs degree from Wheaton College and a MBA from DePaul University.

Chief Operating Officer

With over 20 years of experience, Ms. Searcy oversees fund administration, compliance, and operations for the firm. Prior to T2, Ms. Searcy was a director at a privately-held commercial real estate company in the Chicago suburbs and oversaw the management of its $300 million portfolio. Prior to this, Ms. Searcy was Vice President of the Specialty Finance division of a $13 billion publicly traded finance company based in Scottsdale, Arizona. Ms. Searcy has a Master’s degree in Accounting from DePaul University and a Bachelor’s degree in Finance and Economics from Western Illinois University. Ms. Searcy is a CPA candidate.

VP | Portfolio Management

Mr. Felker evaluates prospective investments and manages existing investments. Prior to joining T2, Mr. Felker was a Senior Analyst at a private equity real estate firm based in Colorado with approximately $500 million under management. He joined the firm in 2010 after working as an intern within the research department at Invesco PowerShares. Mr. Felker is a CFA charterholder and graduated summa cum laude from Wheaton College (Wheaton, Illinois) where he received his Bachelor’s degrees in Economics and Mathematics. He is a member of the CFA Society of Chicago and the CFA Institute.

  • DENNIS JACOBS

    DENNIS JACOBS

    VP | Portfolio Management

  • BRIEN WLOCH

    BRIEN WLOCH

    Exclusive Consultant

  • JEFF BAXTER

    JEFF BAXTER

    VP | Investor Relations

  • NATE SERENIUS

    NATE SERENIUS

    Associate

VP | Portfolio Management

With over 35 years of banking and real estate experience, Mr. Jacobs works among T2’s investment team in sourcing, underwriting, and managing investments for the firm. Prior to T2, he was part of J.P. Morgan’s Real Estate Banking platform and was responsible for loan originations including construction, bridge, term-loans and loans originated for CMBS execution. He brings experience in buy-side advisory, real estate investment strategies, commercial loan asset management and real estate asset valuations. He holds an MBA and Bachelor of Science in Finance from Wayne State University in Detroit, Michigan.

Exclusive Consultant

Mr. Wloch sources investments and provides preliminarily investment underwriting for T2. He has been involved with commercial real estate financing for over 30 years and has been responsible for closing over $13B in commercial real estate loans while heading up the Midwest and National CMBS offices for J.P. Morgan and originating for Barclays and Deutsche Bank. Mr. Wloch has bought and owned extensive commercial real estate projects including condominium and apartment projects, retail centers, manufactured housing parks, office buildings and industrial properties. He holds a Bachelor of Science in Finance from Wayne State University in Detroit, Michigan.

VP | Investor Relations

Mr. Baxter spearheads the investor relations and fund raising efforts for T2. Prior to T2, Mr. Baxter served his alma mater, Wheaton College, as the Director of Principal Gifts. During his time there, Jeff assisted in securing leadership level planned and outright gifts as part of the $260 million Promise of Wheaton campaign. Prior to working at Wheaton College, Mr. Baxter worked in Private Client Services for UBS Financial Services, Inc. Mr. Baxter graduated from Wheaton College (Wheaton, Illinois) with his Bachelor’s degree in Business/Economics. While at Wheaton, Mr. Baxter was a member of the baseball, lacrosse, and debate teams.

Associate

Mr. Serenius evaluates prospective investments, conducts due diligence, manages existing investments and assists with various fund administration activities. Prior to joining T2, Mr. Serenius was a credit analyst at MB Financial where he served as an underwriter focusing on various loan structures including revolving credit lines, commercial mortgage refinances as well as acquisition loans and leveraged buyouts. Mr. Serenius graduated from Wheaton College (Wheaton, Illinois) where he received his Bachelor’s degree in Business/Economics and a minor in Mathematics.



T2 Prior Fund Track Record

T2's prior funds incorporates 86 properties in a nationwide real estate footprint. T2 has invested nearly $183 million achieving a 15.5% net IRR to date. Please see Important Disclosure Statement.

T2 Opportunity Fund V, LP Documents

The following Fund Documents are available to view:

  • Executive Summary

    The executive summary provides an overview of DVO.

  • PPM

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

T2 Access Fund LLC Terms

Investment Summary

Fund

T2 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 $50,000 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

$500,000

T2 Opportunity Fund V, LP Terms

Investment Summary

Target Size

$100,000,000 Maximum Offering

Minimum Commitment

$250,000

Term

5 years

GP Investment

Minimum $1 million

Investment Period

2 years from initial closing

Preferred Annual Return

8% Compounded Quarterly

Management Fee

1.0% on committed capital; 1.5% on invested capital

Management Fee Catch Up

1.25% on less than $3 million, 1% on amounts greater than $3 million 20/80...

Carried Interest

80% to LPs - 20% to GP

Distributions

Calculated on a portfolio basis. All distributions go towards the repayment of capital first, then to the Preferred Return, then the Catch-up, and finally to the Carried Interest

Important Disclosure Statement for T2 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 T2 Real Estate, LLC (“T2”). 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 T2. Acceptance of this presentation by you constitutes an agreement to be bound by the foregoing terms. In allowing you to view the Information, T2 undertakes no obligation to provide any additional information or to update, or correct any inaccuracies that may exist in, any of the Information. T2 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 T2, 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. T2 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 T2 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 T2’s calculations, estimates and projections, based on the strategy executed by T2 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 T2 in the future may differ materially from those shown in the case studies.

Any investment in funds managed by T2 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 T2. 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 T2. T2 and the logo T2 are trademarks of T2 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 T2 or any relevant third party owner.

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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