About AWP | RE
What is AWP | RE?
What is unique about AWP | RE’s approach to real estate investing?
Why choose to invest with AWP | RE over other real estate investment options?
Our long-standing relationships combined with our experience, paired with strategic industry alliances with successful, competent local RE management and development companies provides for an unparalleled ability to source, execute and capitalize on high-quality deals with efficiency. We present our investors with opportunities that would otherwise be out of the reach of an individual investor by removing the need for a large up-front investment.
We handle all of the burden that comes with RE investments and conduct extensive due diligence on all potential opportunities. All closings are contingent on AWP’s satisfaction with its due diligence investigation (including 3rd party reviews) prior to closing.
How can I join AWP | RE as an investor?
Why invest in real estate?
Some of the benefits of investing in real estate include:
- Opportunity for stable, consistent cash flow
- Hedge against inflation
- Low-interest leverage currently +/- 3%
- Leverage – tenants are paying down the mortgage
- Tax Benefits – Depreciation
- Additional upside potential upon sale
What assets does AWP | RE acquire?
The assets we focus on possess the following characteristics: Multi-family sector, Class “A” and “B+” asset type, located nationwide, size of ~200+ units, price range of $20-$80 Million, an equity requirement of $4-$16.0 Million OR Grocery Anchored Shopping Centers Class “A” and “B”, located primarily in the Southeast and Florida, price range of $10-40 Million, an equity requirement of $2-8 Million.
However, from time to time we will consider the acquisition of the following very select Unanchored Shopping Centers, STNL Retail, Office, Industrial and Hospitality assets:
- Highly visible urban street retail with stable tenants, a 10 to 30 year lease term and percentage sales clauses. Minor renovations or re-tenanting may be necessary.
- Unanchored shopping centers (typically 85-95% occupied) in densely populated, high-income demographic markets with strong historical occupancy track records
- Select “best in class” CBD mid-rise or boutique office assets with high-quality tenants in primary and secondary markets
- We will also consider new development opportunities when our desired yields can be achieved utilizing similar strategies as those outlined herein.
What determines which assets will be acquired?
a. Double the initial cost of the asset at the time of acquisition by repositioning and enhancing asset value within a 1-3 year time period and subsequently disposing of the asset for a substantial gain. Assets may be from the Multifamily, Office, Retail, Industrial or Hotel sectors and are typically distressed, under-performing, and undervalued assets, with strong fundamentals; orb. Return our invested capital in less than 5 years and distribute cash flow over a long term hold period with capital no longer at risk; orc. Generate 12%+ annual cash-on-cash returns within 3 years.
Assets are typically between $10-50 Million in price and require between $2 – 15 Million in equity per transaction.
What information will investors have access to?
We provide complete transparency and allow for daily monitoring of all operating accounts and access to our online data storage room with updated leases, financials, and other property-level operating information. The Investor Portal provides 24/7 access to all relevant information — from performance metrics, ownership percentages, distribution history, and key investment documents and everything in-between.
Who should invest?
Our investors typically meet most, if not all of the following traits:
- Have cash or marketable securities in excess of $1.5 Million
- Are comfortable deploying $50k to $5 Million per investment
- Are able and willing to review transactions and make an informed investment decision within 5 business days from the time an opportunity is presented.
- Are looking for long term cash flow to live off (retirement income) or wish to place asset ownership in trusts for the benefit of children or grandchildren.
- Are looking for a bond / fixed-income alternative in the low interest rate environment we are currently in.
- Are looking to grow their capital in real assets that offer a hedge over inflation, have a more predictable income stream – at higher rates than the current fixed-income environment and more controllable opportunity for growth as opposed to traditional stocks/bonds.
- Are interested in leveraging their existing portfolio of securities into real estate transactions without liquidating their holdings to substantially increase their overall returns (you can typically do this at a cost of 100-200 bps over 30-Day LIBOR which is around .16% as of 9/15/2020).
- Want to build a long term relationship with an operator they can count on and trust.
How will deals be structured?
Relationships are our foundation. We never put our interests before yours. Our compensation relies largely on the performance of the investments we undertake, with an incentive for us to maximize the value for you. We utilize non-recourse debt with relationship-oriented lenders. Terms and rates vary by deal. LTV’s typically range from 65-80% LTC. We occasionally utilize mezzanine debt, when appropriate, to enhance returns and LTC’s up to 90%.
The total equity typically required for a transaction is between $1.5 Million and $15 Million Dollars. This equity will be typically raised from two to twenty investors.
Preferred returns to investors and promote structures will be determined on a deal by deal basis depending on the amount of effort required by AWP | RE given the underlying business plan for the real estate asset that is being developed or acquired.
How will AWP | RE be compensated?
AWP | RE and its principals receive no capital management fees, asset management fees or real estate brokerage commissions. We do not collect investment advisory fees on the capital we are managing for clients in this vehicle. AWP | RE receives a 2.5% acquisition fee calculated on the gross purchase price, at the time each asset is acquired (this fee is typically reinvested alongside you) and a carried interest tied to the performance of the individual underlying real estate asset that is acquired (only after investors have been paid first!).
How do I get started as an investor with AWP | RE?
When do I get access to opportunities?
How do I invest in an opportunity?
How can I perform due diligence before investing?
Do I need to be an accredited investor to participate?
How do I know if I am an accredited investor?
According to the SEC, an accredited investor includes anyone who:
- Earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year,
- OR has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence),
- OR holds in good standing a Series 7, 65 or 82 license.
The Investor Portal
How do I create an account?
How will I know when a new opportunity is available?
What will I have access to from the Investor Portal?
How secure is the Investor Portal?
The Investor Portal is built on the IMS Platform, which uses banking and military-level encryption. All information is encrypted during transfer using 256-bit Secure Socket Layer (SSL) and storage using AES 256-bit. The IMS platform has a dedicated operations team to monitor security of the platform and ensure all security patches, virus protection, and malware is up to date. Any suspected security issues are immediately triaged to investigate and rule out any breaches.
The platform is hosted in Amazon Web Services: the largest cloud infrastructure provided and used by other financial services companies such as Capital One, Pacific Life, and Intuit.
Is everything handled within the Investor Portal?
I forgot my login credentials. How can I access my account?
Wealth & Asset Management
How does AWP | RE integrate traditional wealth management with RE investment?
What is the benefit of a comprehensive approach?
How much of the asset management does AWP | RE handle?
We do all of the heavy lifting:
- Source and identify assets
- Underwrite and discover hidden value
- Pursue, negotiate and win deals
- Develop asset business plans
- Negotiate purchase & sale agreements
- Conduct thorough due diligence
- Secure financing
- Close deals
- Manage assets
- Lease to new tenants and renew leases with existing tenants
- Perform & manage capital expenditure projects
- Execute asset business plans
- Dispose of assets
- Deliver investment returns