Sie sind auf Seite 1von 24

Vertically-integrated real estate investor and developer,

targeting income producing assets in markets that


exhibit solid growth and positive fundamentals.
The Right Time. Our approach is flexible and innovative,
providing a clear vision to maximize the value
The Right Strategy. of each investment. Using strong leadership
The Right Manager. coupled with an entrepreneurial strategy,
we consistently uncover quality assets in
compelling locations to target attractive risk-
adjusted returns for our global partners.
Welcome.
Reliable Investments –
Diversified Portfolio.

WealthStone provides our growing global investor base of accredited high net worth
individuals, family offices, business organizations, endowments, foundations and wealth
advisors access to a diverse portfolio of quality commercial real estate assets.

By nature, commercial real estate is capital intensive and requires expertise to navigate
its complexity. Necessitating extensive due diligence and underwriting to develop
creative and effective business plans to extract value through physical, operational and
financial solutions. Our cycle-tested management team has successfully navigated 20
years of business cycles and has thrived completing over $2 billion of direct real estate
transaction and development experience across all major real estate classes.

Commercial real estate is an important and growing asset class allocation within our
investors’ portfolios, having a proven ability to generate wealth and attractive returns
with relatively low volatility. It’s proven to be an effective hedge against inflation since
private market real estate investments have historically exhibited low correlation to
publicly traded stocks. Commercial real estate also provides the potential for both
income/current yield from tenant rental income and capital appreciation form
increased property value over time. Investing across geographic markets and property
types is the key to diversification and mitigating concentration risk.

WealthStone is experienced in working with foreign investors and can accommodate


their unique tax structuring requirements.
Table Our Name. Our Mark . . . . . . . . . . . . . . . . . . . . . . . 05

of Contents. Who we are . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06

About Us . . . . . . . . . . . . . . . . . . . . . . . . . 07

Our Team . . . . . . . . . . . . . . . . . . . . . . . . . 08

Why WealthStone . . . . . . . . . . . . . . . . . . . 09

What we do . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Investment Strategy . . . . . . . . . . . . . . . . . 11

Acquisition Criteria . . . . . . . . . . . . . . . . . 13

Target Returns . . . . . . . . . . . . . . . . . . . . . 14

Our approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Partnerships & Joint Ventures . . . . . . . . . . 17

Management / Sponsor . . . . . . . . . . . . . . 18

Asset Management . . . . . . . . . . . . . . . . . . 19

Development . . . . . . . . . . . . . . . . . . . . . . . 21

Legal Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Wealth & Stone,
long-lasting, descriptive words
that come up to testify to the
ancient relationship humans
have with these elements.
Wealth is the state of attaining material prosperity.
Stones have been treasured by people for many
reasons throughout history. Stones symbolize a
variety of aspects that include solidity, stability
and gravity.

In Chinese symbolism, stones are connected


with ying-yang energy. Precious stones have been
used as investments through centuries. Moreover,
stones from ancient times to nowadays, became
foundation of great architectural structures, the
oldest construction material known to mankind.

Together, the two concepts symbolize, material


integrity, strength and longevity.
“A single person doesn’t
change an organization,
but culture and good people
do. One finds limits by
pushing them.

– Herbert Simon

Who we are About Us

Our Team

Why WealthStone
7

About Us
Innovative Thinking –
Legacy Expertise.

WealthStone is an innovative real estate investment Our cycle-tested professionals have over $2 billion in
organization, tactically investing in income real estate transaction and development experience.
producing commercial real estate primarily across With over 20 years of legacy expertise, the firm can
the United States. execute complex transactions through hands-on
repositioning, restructuring, redevelopment and
We pursue a broad array of investment intensive post-acquisition asset management.
opportunities including the development and
acquisition of both for-lease and for-sale residential WealthStone aims to allocate approximately $300
properties. These include specialized multi-family million of equity capital for an estimated $700
properties such as senior living, student housing, million of total capitalization in a variety of real
office buildings, retail centers, industrial properties, estate ventures during its current deployment phase.
hotels and self-storage facilities.

Who we are / About us


8

Our Team
Experienced Management –
Diligent Experts.

The right management team brings more value We realize the experience of a team and its third-
to real estate investing than simply locating party service providers are paramount in achieving
investment opportunities. WealthStone’s team strong financial performance. The following must
of experts boasts a unique and diverse mix of be taken into account:
individuals with over 40 years of entrepreneurial,
executive, technical and professional experience. • Can the team uncover unique opportunities
Our team collectively encompasses all aspects of to secure investments before they are subject
real estate investment, management, financing to hyper-competitive bidding?
and construction.
• Does the team’s outside service providers
WealthStone has decades of cycle-tested real estate have the expertise to adequately identify
investment and transaction experience in the areas potential physical or operational issues
of acquisition, development, leasing, repositioning, during the due diligence process, ensuring the
asset management and capital markets. With over transaction price and business plan conform
$2 billion of direct experience across an array to key data points?
of investment opportunities and our commercial
relationship network, WealthStone’s team expertly • Do the property and asset managers provide
sources quality opportunities through both off- timely reports? Are they utilizing the data to
market transactions and broker networks before spot concerns or opportunities and adjusting
the assets are broadly marketed. the initial business plan to address them?

Our in-house and outside experts perform in- At WealthStone, our investment process and
depth financial analyses, extensive due diligence experienced internal and external team work
for prudent investment approach, all while striving together to ensure any investor concerns are
to achieve and exceed target returns. We take a thoroughly addressed.
proactive role and believe in a hands-on attitude
to generate cash flow growth and increased value
for investors.

Who we are / Our Team


9

Why
WealthStone
Hands-on Management –
Proactive Role.

WealthStone takes a proactive role to asset combined with extensive due diligence and
management. We develop close relationships with underwriting capabilities. Our management team
investors and partners by providing immediate has a proven track record of providing large-
access and constant feedback. By taking a hands- scale acquisitions, dispositions and development
on approach, we ensure strict cost control and services that encompass design, project planning
operational excellence of every asset. and vertical construction.

Our strategy is designed to mitigate any The entrepreneurial spirit is a gift that inspires others
concentration of risk. WealthStone clients enjoy a to become the best they can be. To “do things right”
diversified portfolio of real estate assets so they can carries the meaning of efficiency, effectiveness,
invest across a variety of top geographic markets expertise and the like. From passion and positivity to
and property types. leadership and ambition, this spirit embodies all key
components of the WealthStone culture.
Maintaining a strong, established network of
industry contacts ensures proprietary deal flow

Who we are / Why WealthStone


10


To be successful, you have
to have your heart in your
business, and your business
in your heart.

– Sr. Thomas Watson

What we do Investment Strategy

Acquisition Criteria

Target Returns
11

Investment
Strategy
Attractive Basis –
Prudent Investment Management.

WealthStone’s focus is primarily on markets residential properties. These include specialized


in the U.S. We target areas with metropolitan multifamily such as senior living, student housing,
populations greater than one million, particularly office buildings, retail centers, industrial properties,
those with low unemployment rates, which hotels and self-storage. Assets that are located in
demonstrate strong and durable employment markets that exhibit attractive demographics and
growth driven by technology, healthcare, financial fundamentals, and which can generate a current
services, education and energy sectors. or near-term cash flow component.

We pursue a broad array of investment


opportunities that meet the needs of our
global investors seeking current income, capital
appreciation or a balance of the two. WealthStone
invests in and develops both for-lease for for-sale

What we do / Investment Strategy


12

When considering the fundamentals of a real We concentrate on metrics that are less skewed
estate investment, our team looks at several key using financing such as unlevered cash flow
factors and asks: yields and comparable sales. If financing is used
to acquire a property, conservative leverage is
•• Is this property priced below comparable sales
considered, at levels expected to protect the asset
prices in the market or below the replacement
in the case of an economic slowdown and to
cost of the building?
maintain prudent investment management.
•• Are the risks inherent to the operation of
commercial real estate (loss of occupancy, Target investment opportunities generally range from
need for capital, maintenance, etc.) well $5 million to $40 million of equity capital and $10
mitigated by the circumstances with respect million to over $100 million of total capitalization
to a specific property? per project. We see larger projects as an opportunity
to co-invest with our global capital partners.
•• How do these risks and expected return in
the investment stack up to other available
WealthStone believes in flexible joint venture
opportunities?
arrangements that allow us to uncover value in
real estate assets while ensuring an alignment of
Our approach is consistent. WealthStone focuses
interests with our partners.
on preservation of capital, even with investments
that have a projected substantial upside.

What we do / Investment Strategy


13

Acquisition
Criteria
Opportunistic –
Cash Flow Component.

WealthStone pursues a broad array of investment


opportunities that meet the needs of its various
global investors seeking current income, capital
appreciation or a balance between the two. The
organization invests in and develops both for-
lease for for-sale residential properties, including
specialized multifamily such as senior living,
student housing, office buildings, retail centers,
industrial properties, hotels and self-storage
facilities. These assets are located in markets
with greater than 1 million in metropolitan area
population. The typical investment requires
between $10 million to over $100 million in total
capitalization per project.

What we do / Acquisition Criteria


14

Target
Returns
Knowledge is key.

WealthStone invests in a broad variety of real between these strategies is a balancing act between
estate assets that are expected to provide a total taking on more or less risk, and in theory, being
annualized investment return of 10% to 12%, compensated for that risk with a higher or lower
including an annual cash dividend of 5% to 8% return.
to the equity invested in its projects.
Risk management factors to take into consideration
Often investors who are unfamiliar with real estate in the risk-return profile feature a variety of
investing place all of their attention on investments aspects including:
offering the highest rates of return. At first glance,
•• Geography: Location has a significant impact
this makes sense; however, we focus on a slightly
on risk. Investing in the largest markets over
different metric — risk-adjusted returns — or our
smaller, secondary markets where there is less
investments.
transaction activity impacts both the level
of liquidity and the depth of product type
A risk-adjusted return is a measure that puts returns
available. Larger markets play a critical role
into context based on the amount of risk involved
in mitigating risk, since they dramatically
in a specific investment. Balancing risk and return
improve the desire for tenants, buyers, and
is the key to any real estate transaction. While a
sellers to transact.
return is often measured quantitatively, it’s the
qualitative aspect of risk that makes evaluating an •• Debt: Increasing debt levels typically increases
investment’s true return profile more difficult, and risk. Moderate debt at prudent interest rates
therefore an experienced real estate investment usually furthers investors returns, yet it can be
team is required. detrimental when a property cannot service
its mortgage payments. An opportunity with
Targeting a desired return is typically easy: the a high return that is loaded with high debt
bigger the better. Quantifying and understanding can present the investor with an unreasonable
the associated risk of producing that return is much risk in order to achieve that higher return.
more difficult and this is where WealthStone’s
•• Asset Class: The type of real estate property
professionals aim to excel.
has a significant impact on the risk profile.
Multifamily for-lease, including specialized
Real estate assets are typically grouped into
multifamily such as senior living and student
four primary strategy categories based on
housing, as well as industrial properties
investment strategy and inherent risk. Those
and necessity retail such as grocery stores
four categories are: core, core-plus, value-added
and pharmacies typically involve lower risk
and opportunistic. The key differentiator among
than other asset classes. Properties such as
these categories is the risk-return profile. Moving

What we do / Target Returns


15

office buildings and shopping centers with development and financing options can
discretionary retail are usually considered significantly mitigate the inherent risk in real
moderate risk. Finally, properties which are estate investing.
heavily dependent on active operations to
•• Due Diligence: Knowledge is key. Information
produce income, such as hotels, generally
about a major new tenant looking for space, an
feature a higher risk profile. However,
airport expansion, a major employer moving
when bought correctly, a hotel’s value can
into the area, new highway access, convenient
increase substantially through operational
new zoning regulations, etc. can be used to
improvement and produce higher returns.
gain a competitive advantage when pursuing
•• Simplicity: Risk often has an immediate real estate opportunities. Real estate is local
correlation with the number of moving parts and professional investors take advantage of
to an investment opportunity. Buying a long- a thorough due diligence processes to obtain
term, fully leased office building that requires information that can reduce risk and provide
minimal renovations carries less risk than a improved returns, or to disengage from a
ground-up development of the same office potential opportunity when appropriate.
building, hence there is a spectrum of returns Each incremental step further out on the risk
among different investment opportunities. curve — moving to core-plus, value-add and
opportunistic investments — may be partly
•• Management: Partnering with a team that driven by less definitive information being
has substantial experience with specific available in the diligence process, and therefore
asset classes, markets, demographic should produce a corresponding increase in
trends, property operations, renovation/ return.

What we do / Target Returns


16


Everything should be made
as simple as possible, but not
simpler.

– Albert Einstein

Our approach Partnerships & Joint Ventures

Management / Sponsor

Asset Management

Development
17

Partnerships &
Joint Ventures
Collaboration –
Lasting Partnerships.

WealthStone believes in the power of cooperation wealth managers looking for real estate solutions
and collaboration, aiming for a synergy where for their clients, foreign organizations seeking a
each party provides specialized experience and well-connected local partner to oversee business
resources to achieve a common success for all. We plan execution, capital managers in search of
pride ourselves in our ability to build value in real an expert team, or specialized capital and bond
estate by creating strategic alliances, teamwork, placement firms seeking to join forces on specific
joint ventures and lasting partnerships with projects.
companies and individuals.
WealthStone welcomes new ideas and innovative
Partnerships may include land owners in need of approaches. We are always open to exploring new
a development partner, fund managers seeking a endeavors.
closer relationship with their capital deployment,

Our approach / Partnerships & Joint Ventures


18

Management / Sponsor
Rigorous Process –
In-depth Analysis.

WealthStone, as the sponsor of its projects, oversees we focus on maximizing a property’s value for
finding, acquiring, financing and administration of investment purposes. This differs from real estate
the real estate assets on behalf of the partnerships. property managers who handle a property’s day-
We manage each investment to achieve its financial to-day activities related to operations and physical
objectives. We undertake in-depth analyses as well maintenance. Capital management provides a
as physical and operational due diligence. Our detailed analysis of assets, liabilities, opportunities
rigorous evaluation process assesses risks in sector and risks to maximize earnings.
allocations, market diversifications and financing
structures. WeatlhStone works on behalf of our The financial performance of a property can
global partners in their journey towards wealth be improved by cutting unnecessary expenses or
creation. implementing a new business strategy to drive
revenue. WealthStone aims to mitigate downside
The purpose of capital management strategy is risks while creating value through a variety of
to enhance market value, so the partnerships can financial, operational or physical improvements.
increase their returns. As a real estate sponsor,

Our approach / Management/Sponsor


19

Asset
Management
Maximum Efficiency –
Increased Competitiveness.

WealthStone’s asset managers specialize in


particular types of property, regions, or operations.
They conduct market research, data analysis,
revenue and expense forecasting. Proper asset
management increases a property’s competitiveness
with similarly positioned properties, unless it’s
already operating at maximum efficiency, which
is rarely the case. At WealthStone, we push our
asset managers to focus on key areas of operations
and reduce redundancies and inefficiencies. These
unnecessary expenses are corrected to avoid any
material, negative impact on profitability.

Asset managers direct property managers to


increase efficiencies by:

•• Reviewing labor utilization and personnel


management to minimize wasted hours and
excessive overtime

•• Selecting third party providers and negotiating


contracts necessary for operations

•• Developing marketing plans and initiatives


to help increase revenue opportunities and
effectively promote the property

•• Leading the development of annual


proformas and engaging with property
management to drive performance in
alignment with budgetary goals

•• Providing assistance to the investment


team to facilitate transaction closing during
acquisition and disposition

Our approach / Asset Management


20

•• Managing relationships with lender Proper asset management is imperative. The


representatives to ensure the adhere to loan correct financial oversight and day-to-day
covenants and reporting guidelines adherence to the business plan are always key
components to successful investment management.
•• Working closely with property managers and
leasing agents
WealthStone’s asset management responsibilities
•• Managing cash flow also include special attention to capital
expenditures (“CapEx”), the physical aspects of
•• Developing, analyzing and distributing asset
a real estate project. CapEX are larger scope
management reports
maintenance initiatives and property upgrades
•• Modeling a full lifecycle financial analysis for items that periodically need to be replaced.
This may include roofs, elevator systems, HVAC
equipment, driveways, plumbing systems, or any
large item with age or performance issues detected
during the initial property condition report and/
or subsequent CapEx review programs.

Our approach / Asset Management


21

Development
Expertise –
Vision to Reality.

WealthStone’s real estate development expertise attorneys, environmental consultants, surveyors,


encompasses everything from the renovation title companies, lenders, architects, general
and release of existing buildings to the purchase contractors, subcontractors and municipalities,
of entitled land for project development. We plus a variety of others.
assemble all of the required consultants, design
firms, contractors, and vendors. From start to WealthStone navigates complex transactions,
finish, WealthStone coordinates and effectively secures financial partners and seeks to overcome
communicates to the team members throughout design or construction challenges. We work as one
a project’s life-cycle while simultaneously paying team with our third-party experts to identify the
close attention to budgets and schedules. right solutions, so projects successfully achieve the
intended vision and business plan needs.
Real estate development differs from construction.
Development involves participation from a wide Whether it’s a renovation or a new build project,
variety of professionals, including architects, WealthStone coordinates all activities converting
landscape architects, civil engineers, site planners, ideas on paper to completion as real property.

Our approach / Management/Sponsor


22

Legal
Disclaimer
part 1

This brochure contains preliminary information regarding lose their entire investment. Any Securities acquired will be
various real estate projects, properties and investments, illiquid, as there is no secondary market for the Securities and
existing and proposed, (each a “Project” and collectively the none is expected to develop. In addition, the sale, transfer
“Projects”) of WealthStone LLC (“WealthStone”). All such or other disposition of the Securities will be restricted by
information (the “Project Information”) is the confidential applicable Federal and State Securities laws, and there will be
and proprietary information of WealthStone, and no additional restrictions on transfer of the Securities contained
excerpts or summaries thereof may be copied, distributed, in the Project governing documents. Further, investments
reproduced, or included in any media or documents without may be leveraged, and their performance may be volatile.
the express written consent of WealthStone. By continuing Before deciding to invest in a Project, prospective investors
to view this Website, you acknowledge and agree that (i) must read the entire Offering Memorandum and pay
the Project Information constitutes the confidential and particular attention to the “Risk Factors” contained therein.
proprietary information of WealthStone; (ii) you will not
copy or reproduce the Project Information in whole or in In considering any performance data contained herein,
part; and (iii) you will not use the Project Information for any one should bear in mind that past or targeted portfolio
purpose other than evaluating the Projects. characteristics are not indicative of future portfolio
characteristics, and there can be no assurance that the
The Project Information contained herein is provided Projects will have comparable portfolio characteristics or that
for informational and discussion purposes only and is not target portfolio characteristics will be achieved. Information
and may not be relied on in any manner as, legal, tax or about WealthStone, its managers and employees, and any of
investment advice or as an offer to sell or a solicitation of its affiliates’ prior investment programs (“Prior Programs”)
an offer to buy an interest in WealthStone LLC or any of contained herein has been provided for illustrative purposes
the Projects. A private offering (an “Offering”) of interests only; and it has not been audited or reviewed by any third
in a Project (“Securities”) will only be made pursuant party. The recipient should understand that the performance
to a confidential private placement memorandum (an of Prior Programs may have been achieved in different
“Offering Memorandum”) and the appropriate subscription economic cycles; WealthStone’s, its managers’, employees’,
documents, which will be furnished to qualified investors on a and any of its affiliates’ participation and/or management
confidential basis at their request and for their consideration responsibility likely varied in the Prior Programs; and Prior
in connection with the Offering. The information contained Programs may have been based upon and utilized investment
herein is qualified in its entirety by reference to the Offering strategies and capital resources that differ considerably from
Memorandum, which contains additional information about those the Projects are based upon and will use. Therefore,
the Offering and the Project investment objectives, terms the recipient should not assume that the Projects will be able
and conditions of investment, governing documents, tax to replicate any Prior Program’s performance, even though
information and risk disclosures, that are important to any there are overlaps in the Projects’ projected strategies and the
investment decision regarding an investment in a Project. strategies that may have been utilized for any Prior Program.
No person has been authorized to make any statement
concerning WealthStone or any of the Projects other than Except where otherwise indicated herein, the Project
as set forth in the Offering Memorandum, and any such Information is based on matters as they exist as of the date
statements, if made, may not be relied upon. of preparation and not as of any future date. The Project
Information will not be updated or otherwise revised to
Any investment in a Project is highly speculative and will reflect information that subsequently becomes available, or
involve significant risks, including the potential loss of circumstances existing or changes occurring after the date
the entire investment. Accordingly, an investment in the hereof. Accordingly, there can be no assurance that such
Securities is only suitable for persons who can afford to information will still be correct as of any subsequent date.
23

Legal
Disclaimer
part 2

Certain information contained herein is not based on redevelopment, operation, and disposition of the property, as
historical facts and is deemed to be “forward-looking” applicable, and may be projected, as noted when applicable.
within the meaning of the private securities litigation Unless otherwise noted, the IRRs and equity multiples
reform act of 1995. “Forward-looking statements” can be presented on a “net” basis incorporate all applicable asset-
identified by the use of forward-looking terminology such level fees and costs and are after management fees, general
as “may,” “will,” “should,” “expect,” “anticipate,” “target,” partner’s carried interest, taxes, and allocable projects
“project,” “estimate,” “intend,” “continue” or “believe,” expenses (but do not take into account taxes resulting from
or the negatives thereof or other variations thereon or “feeder” structures through which certain investors will
comparable terminology. Forward-looking statements reflect invest in the projects). All fees, costs, and carried interest
WealthStone’s current expectations and predictions, based amounts are estimates based on projections; actual amounts
upon documents, information, data, analysis, industry and may vary in a materially positive or negative manner. All
general economic outlook and information, as well as facts IRRs presented are annualized and calculated on the basis
and circumstances currently available to WealthStone. Much of annual investment inflows and outflows and incorporate
of such information has been obtained from sources outside any financing incurred at the asset level.
of WealthStone and its affiliates. While such information is
believed to be reliable for the purposes used herein, neither While projections about either the Projects’ performance
WealthStone, nor any of its affiliates or partners, members, or the performance of any of the Prior Programs are based
or employees, assume any responsibility for the accuracy of on WealthStone’s, its managers’, employees’, and affiliates’
such information. experience and good faith judgments, the recipient should
understand that projections are forward looking statements,
Although WealthStone believes that the expectations reflected based on numerous assumptions, including, but not limited to,
in the forward-looking statements are reasonable, it cannot that existing asset performance trends will continue to track
guarantee future results, levels of activity, performance, or business plans, that historical behavior of owned property
achievements, and actual results will most certainly differ types will not change fundamentally, that perceptions of
significantly from projections herein. Accordingly, forward market opportunities for acquisition and disposition will hold
looking statements are inherently uncertain and cannot be true, and that the competitive landscape within which each
relied upon. Neither WealthStone nor any other person asset operates will not change fundamentally. Any number
assumes responsibility for the accuracy and completeness of of factors could contribute to results that are materially
any forward-looking statements; and WealthStone is under different.
no duty to update any of the forward-looking statements
to conform them to actual results or to changes in its The opinions offered by WealthStone of competing
expectations. Accordingly, prospective investors should not investment option types have not been independently verified
rely on these forward-looking statements in deciding whether but instead reflect WealthStone’s general comparison of
to invest in a Project. various investment options. With respect to performance
metrics presented herein, the recipient should consider
Unless otherwise noted, the IRRs and equity multiples the following: all investments carry risk, and the project’s
presented on a “gross” basis do not incorporate any proposed strategies may experience losses. Prospective
management fees, general partner’s carried interest, taxes investors should make their own independent investigations
(including by virtue of “feeder” structures through which and evaluations of the information contained herein. Each
certain investors will invest in the projects), or allocable prospective investor should consult its own attorney, business
projects expenses borne by investors, which in the aggregate adviser, and tax adviser as to legal, business, tax and related
may be substantial. However, they do incorporate all asset- matters concerning the information contained herein and
level fees and costs associated with the acquisition, financing, such Offering.
Always available. +1 323 406 8505 / main
+1 323 201 7598 / fax
Always approachable.
Talk to us. Hello@WealthStoneLLC.com

1880 Century Park East, Suite 1014


Los Angeles, CA 90016, USA


Every accomplishment starts
with a decision to try.
– Unknown