KI Florida Fund II, LLC Company & Fund Overview 2901 W. BUSCH - - PowerPoint PPT Presentation

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KI Florida Fund II, LLC Company & Fund Overview 2901 W. BUSCH - - PowerPoint PPT Presentation

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KI Florida Fund II, LLC Company & Fund Overview 2901 W. BUSCH BOULEVARD, SUITE 901 TAMPA, FLORIDA 33618 PH: (813) 554-1200 KENNEDYINVESTMENTS.COM Disclaimer This presentation has been prepared by Kennedy Investments, Inc. for

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KI Florida Fund II, LLC

Company & Fund Overview

2901 W. BUSCH BOULEVARD, SUITE 901 TAMPA, FLORIDA 33618 PH: (813) 554-1200 KENNEDYINVESTMENTS.COM

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Disclaimer

This presentation has been prepared by Kennedy Investments, Inc. for informational purposes only and is being furnished solely for its recipients in consideration of investments or transactions involving Kennedy

  • Investments. Although this information has been compiled with considerable care to ensure its accuracy as
  • f the date of publication, Kennedy Investments and its agents make no representation or warranty,

expressed or implied, with regard to the accuracy or completeness of the data or information presented. By reading and reviewing the information contained in this presentation, the recipient acknowledges and agrees that Kennedy Investments and/or its agents assume no liability to any party for any loss or damage caused by the use of the information presented, or by errors or omissions in the information contained herein, in making any investment decision, whether such errors or omissions result from negligence,

  • versight or any other cause.

In no event will Kennedy Investments and/or its agents be liable to any party for any direct, indirect, special, incidental or consequential damages of any kind arising out of the use of this presentation or any information contained herein. Kennedy Investments and/or its agents specifically disclaim any guarantees, including but not limited to, stated or implied potential profits, rates of return, or investment timelines discussed or referred to herein. Investors should conduct their own investment analyses and due diligence and draw their own conclusions regarding investment decisions. Questions about taxes or specific legal and technical matters must be referred to lawyers, accountants, brokers and other professionals licensed and qualified to render such advice. By accepting this presentation, each recipient agrees that it will not copy, reproduce or distribute it in whole

  • r in part at any time without the express prior written consent of Kennedy Investments.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Contents/Overview

  • About Kennedy Investments
  • Market Opportunity & Investment Strategy
  • Highlights of KI Florida Fund I (launched January 2017)
  • Overview of KI Florida Fund II (launched July 2019)
  • Q&A

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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About Kennedy Investments

  • Regional Experience: Active owner, manager & syndicator of commercial real

estate investments in Florida since 1970

  • Diversity: Experienced owner and manager of retail, office, industrial, multi-

family, self-storage, and other commercial property types.

  • Value-Added Strategy: Decades of proven success in different types of value-

added real estate investments

  • Vertically Integrated: Dedicated in-house financial, administrative, property

management and maintenance personnel

  • Focus on Relationships: Strong ties to the community and longstanding

relationships in regional banking, legal and real estate circles

  • Proven Performance: Estimated investor IRR of +22% on KI Florida Fund I

(realized and unrealized gains)

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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SLIDE 5

Current Investment Portfolio

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

Approximately $100M in assets & 1MM sq. ft. under management (as of Q3 2019)

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Principals

  • Jay Kennedy, President
  • 24 years of investment, brokerage, leasing, development and

construction management experience.

  • Graduate of Miami University with BA in Business.
  • Joined Kennedy Investments in 2001.
  • Darren A. Wilson, Vice President
  • 20+ years of management and entrepreneurial experience in

technology, legal and real estate businesses.

  • Earned a BA from the University of Virginia and MBA from the

University of Texas.

  • Joined Kennedy Investments in 2011.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Management Team

  • Cristina Paredes, Controller
  • 17 years of commercial real estate accounting experience; started with Holsten

Real Estate Development Corporation in Chicago

  • Joined Kennedy Investments in 2014
  • Victor Pietropaoli, Director of Facilities & Construction
  • 37 years of direct construction industry & property management experience
  • 24 years with Kennedy Investments (joined the company in 1995)
  • Tammy Roque, Director of Property Management
  • 25 years of commercial property management experience with Opus South,

Cushman & Wakefield, RMC Property Group, and CLW in Florida

  • Joined Kennedy Investments in 2018
  • Ryan Hutkowski, Director of Leasing & Brokerage
  • 8 years of commercial real estate experience as a research analyst & broker
  • Joined Kennedy Investments in 2015

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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SLIDE 8

Investment Strategy & Market Opportunity

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Value-Added Investing

Value-added real estate investments require the efforts of an experienced

  • perator to increase an asset’s income and market value. Kennedy Investments

has decades of experience identifying undervalued, underperforming properties and working to enhance their value.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Acquisition Strategy

  • Regular consultation with area brokers, executives, and banks to identify

potential on- and off-market acquisitions.

  • All types and classes of commercial real estate investments are evaluated

for potential value enhancement through rehabilitation, re-purpose, lease- up or superior management.

  • Packaged or bundled transactions are evaluated to obtain desirable assets

at a discount.

  • Note purchases are evaluated with the option of loan restructuring or

foreclosing on the underlying asset.

  • Local relationships and the perspective of 50 years in the region create an

edge in performing due diligence and executing value-added strategy.

  • Kennedy Investments performs due diligence and deploys capital quickly,

cultivating its reputation as a credible, knowledgeable buyer in the market.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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  • From 2010 to 2018 Florida’s population grew by 15%,

surpassing New York to become the 3rd most populous state at nearly 22 million and an annual growth rate over 1.6%

  • Florida is the 4th largest economy in the US (19th in the

world)

  • Florida is ranked the 3rd best recession-proof retirement

destination by Forbes, and is a top relocation state for the 75 million Baby Boomers reaching retirement age

  • No personal income tax and the 4th best business tax

climate in the U.S. (Tax Foundation BTC Index)

  • Strong growth projections for population and economy

in the coming decade

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

Why Florida?

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Why Tampa Bay?

  • Tampa Bay’s population grew to over 3.1M in 2018, an increase of 13% since 2010,

becoming the nation’s 18th largest metropolitan area

  • Tampa Bay scores 89.7 on the national cost-of-living index, making it one of the most

affordable large metros in the U.S. (C2ER)

  • The region is home to championship NFL, NHL and MLB teams, amusement parks,

tourist destinations and top-rated beaches

  • More than $6.5B in large-scale commercial developments are underway in Tampa
  • Tampa is home to Florida’s largest, most diversified deepwater port, serving a

population of over 8 million within 100 miles

  • The University of South Florida is the 4th largest in the state and a major research &

medical center (and one of 50 colleges and universities in Tampa Bay)

  • Tampa International Airport is booming and consistently ranked among the best

airports in the U.S. by business travelers

  • US Central Command (CENTCOM) at Mac Dill Air Force Base in Tampa boasts an

economic impact of over $3B in the region

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund I Highlights

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund I Summary

  • Kennedy Investments launched its first fund, KI Florida Fund I, in

January 2017 with $10.6M in equity commitments.

  • Fund I’s capital was deployed into ten diversified investments

including office, industrial, self-storage, retail, debt and special purpose properties.

  • Fund I issued its 4th and final capital call in August 2018, attracting

an additional $5.7M in co-investment from 2017-2018.

  • Successfully exited two Fund I investments totaling over $7M,

earning an ROI in excess of 40% on both transactions.

  • At YE 2018, third-party mark-to-market valuations of Fund I assets

estimated investor IRR at over 22% on realized and unrealized gains.

  • Distributions through Q2 2019 equal to 12.5% of invested capital.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund I Current Asset Summary

KI Bayview Office Building:

  • Purchased April 2017 for $8.7M
  • Invested in capital improvements
  • Currently +95% Leased
  • Allocation of Fund Capital: 16%
  • 2018 EOY Valuation: +1%

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM 72,751 Sq. Ft. Office Building New Construction – 700 Units Self Storage

Celebration Self-Storage Development:

  • 690-unit climate-controlled facility near

Disney World in Orlando

  • Opened in January 2019
  • Currently more than 50% leased
  • Allocation of Fund Capital: 16%
  • 2018 EOY Valuation: +71%
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KI Florida Fund I Current Asset Summary

KI Hanna Warehouse II:

  • Purchased May 2017 for $2.45M
  • Currently 67% leased
  • $185K in distributions to date
  • Allocation of Fund Capital: 5.8%
  • 2018 EOY Valuation: $4.2 to $4.5M

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

Tyrone Tower Office:

  • Purchased at auction for $2.85M in

December 2018

  • Undergoing extensive renovation
  • Currently 30% Leased
  • Allocation of Fund Capital: 12.1%
  • Value currently estimated at $5M

70,000 Sq. Ft. Warehouse 70,000 Sq. Ft. Warehouse 72,000 Sq. ft. Office 72,000 Sq. ft. Office

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KI Florida Fund I Current Asset Summary

Hamner Outparcel:

  • Purchased vacant outparcel for $380,000

November 2018

  • Signed ground lease with Take 5 Oil

Change commencing Dec 2019 for $80,000/yr. (construction in process)

  • Allocation of Fund Capital: 3.9%
  • Value estimated at over $1M

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

Laurel Run Professional Center

  • Purchased at foreclosure auction for

$1.6M in Q2 2019

  • Currently 25% leased
  • Improvements & lease-up underway
  • Percentage of Fund Capital: 16%
  • Estimated Current Value $2.5M

½ acre Retail Outparcel 50,000 Sq. Ft. Office Park 50,000 Sq. Ft. Office Park

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KI Florida Fund I - SOLD NFLA Office

NFLA Office (Tampa)

  • Purchased bank-owned, distressed
  • ffice building in May 2018
  • Size: 28K sq. ft. single-tenant

building on 4.8 acres

  • Acquired for $1.25M and invested

~$300K in improvements

  • Sold in September 2018 for $2.38M
  • Deal IRR just under 200%

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund I - SOLD Ocala Logistics Center

Ocala Logistics Center

  • Purchased distressed industrial park in

Ocala, FL for $2.5M in November 2018

  • Comprised of 11 buildings totaling 254K
  • sq. ft. on 28 acres along I-75
  • Approximately 90% vacant at purchase
  • Sold in March 2019 for $4.7M
  • Fund ROI of 45% and IRR over 118%

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KIFF Development Partners

Reliant 5G, LLC - Cell Tower Development

  • In Q2 of 2019, KI Fund I partnered with a cell tower developer with a

proven track record and 20+ years of cell tower construction experience

  • Capitalizing on emerging telecom technologies (5G) and growing

consumer and commercial demand for high-speed wireless data

  • Committed to development and ownership of up to 10 new cell towers
  • ver 24 months at an estimated cost of $3.25M
  • Fund I is supplying more than 50% of the committed equity for the

initial 10 towers; KI has secured additional tower development

  • pportunities for Fund II
  • Estimated hold period 2-3 years per tower, with a projected deal IRR
  • ver 25%

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KIFF Development Partners

Avenida Suites – Corporate Housing Partnership

  • In 2019, KI Florida Fund I will partner with Avenida Suites, an

established corporate housing / short-term rental operator in the Tampa Bay area.

  • Avenida has operated furnished apartments for 12+ years, earning a

number of industry accolades for the quality of their services

  • Demand for short term rentals in Tampa Bay is strong, driven by

corporate relocations, traveling healthcare professionals, government & military personnel, and tourism

  • KI Florida Fund I will invest in the real estate and operations with

additional investment opportunities for Fund II in the future.

  • Estimated hold period 3-5 years with a projected deal IRR over 15%

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund II Overview

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund II

KI Florida Fund II was launched on July 15th, 2019. Like our first fund, KI Florida Fund II will offer accredited investors access to diversified commercial real estate investments in Florida, targeting investment opportunities with the potential for income generation, capital appreciation, or value enhancement through renovation or repositioning.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Investment Strategy

  • Seek out on- and off-market value-added investment
  • pportunities within our area of market expertise
  • Pursue investment transactions ranging in size from $1M to
  • ver $10M within Florida
  • Conduct rigorous financial, legal and physical due diligence to

screen out undesirable transactions and identify risks

  • Ensure sufficient capital for investment in deferred

maintenance, capital improvements and competitive rents

  • Conservative use of leverage on stabilized assets to recapture

capital and enhance investor returns

  • Target holding period of 3-7 years for most assets
  • Pursue investments with a minimum projected deal IRR of 10%
  • ver the holding period

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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KI Florida Fund II

Fund II will employ a diversified asset acquisition strategy in Florida, targeting real estate investments which are projected to meet or exceed the Fund’s financial performance objectives. These investments may include office, retail, industrial, self-storage, single and multi-family residential, land, note purchases, debt

  • r special-use properties.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Manager Compensation

KI FLORIDA FUND II - MANAGER COMPENSATION:

  • Annual asset management fee of 2% of the total invested capital
  • After 100% of invested capital has been returned to Investors, remaining cash flow

is split 80/20 between Investors and Manager

  • Property management and leasing fees at prevailing market rates

FEES NOT CHARGED BY MANAGER INCLUDE:

  • Acquisition Fees
  • Construction Management Fees
  • Financing Fees
  • Disposition Fees

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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Summary

  • Kennedy Investments has long provided investors superior returns on

commercial real estate investments in Florida.

  • Kennedy Investments has successfully capitalized on market opportunities

in all economic cycles across a variety of asset types.

  • Florida and Tampa Bay offer excellent long-term growth prospects relative

to other regions, enhancing asset values and returns.

  • Kennedy Investments’ intense regional focus and extensive relationships

within local business, banking and real estate communities are key strengths in identifying and capitalizing on opportunities.

  • We offer a proven track record, a solid reputation and strong references in

the investor community.

  • Fund I has produced strong returns through our diverse “asset agnostic”

value-added investment strategy.

2901 W. BUSCH BLVD. | SUITE 901 | TAMPA, FLORIDA 33618 | PH: (813) 554-1200 | KENNEDYINVESTMENTS.COM

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For more information, please visit our website or contact:

Jay Kennedy Darren A. Wilson President Vice President

Jay@KennedyInvestments.com Darren@KennedyInvestments.com

O: (813) 554-1203 O: (813) 554-1206 C: (813) 220-3349 C: (813) 391-2939