TRACK RECORD
DEAL PIPELINE ODYSSEY CHEYENNE INDUSTRIAL CENTER Las Vegas, Nevada 1 Building 87,000 Square Feet Four industrial tenant units for lease or for sale Equity raise closing November of 2018 Las Vegas has seen a 28% increase in industrial rents since 2014 for smaller units (under 30k SF) that are served by truck dock. Odyssey will develop approximately 87,000 SF of industrial warehouse in a multi-tenant building which will be mapped to offer fee ownership to individual users. Odyssey forecasts delivering this product at a cost of $97/SF. Recent sales for similar units exceed $115/SF. 2
DEAL PIPELINE LONE ELM COMMERCE CENTER Olathe, Kansas 1 Building 210,000 Square Feet First phase equity closed January, 2018 Ground breaking forecast for Q2, 2018 Odyssey has partnered with Meyer Companies to deliver the first phase of Lone Elm Commerce Center, a 127 acre industrial park fronting Interstate 35. This project will deliver mid bay product along an important transportation thoroughfare that connects Dallas and Kansas City. 3
DEAL PIPELINE 167 STREET LAND Olathe, Kansas 127 acres Odyssey has partnered with Meyer Companies to master plan and develop a 127 acre Industrial park fronting Interstate 35. The industrial park has capacity for approximately 1.8 million SF. 4
DEAL PIPELINE ODYSSEY MT HOOD LAND Las Vegas, Nevada 10 acres Odyssey purchased 10 acres of land next to the Las Vegas Motor Speedway. Several million square feet of warehouse projects are under construction in the Speedway submarket, with 50% of the product leased prior to breaking ground. 5
DEAL PIPELINE ODYSSEY MILFORD Milford, Massachusetts 1 Building 377,000 Square Feet Odyssey, in partnership with New Mill Capital, has purchased the Ardagh Bottling Plant, a 377,000 square foot manufacturing facility in Milford, MA. Ardagh manufactured glass bottles for Anheuser Busch at this location but shut down the operations in 2018 due to high production costs and lower beer demand. The venture is buying the property vacant, as-is, along with the associated bottling equipment. 6
CURRENT PROJECTS ODYSSEY ROYAL Overland Park, Kansas Value add retail space, 137,505 Square Feet Purchase Date: 2016 Forecast Disposition: 2018 Odyssey acquired the vacant retail building, a former JC Penny, in early 2017.The strategy is to add value to the property through renovations, then lease up a large portion of the building as quickly as possible. As of Dec. 2017, Floor & Décor is leasing 60% of the available building space. Ownership is almost finished with a mapping process to separate the the project into three separate legal parcels so that we can sell individually. Additionally, we are under contract to sell the Floor and Décor parcel in the 1st half of 2018 for approximately $10MM. We expect to lease or sell the remaining 45,000 SF box and the remaining pad site by 4Q 2018. 7
CURRENT PROJECTS CITY CENTER WEST Las Vegas Nevada Value add Class A office building 212,000 Square Feet Capital Partner: C-III Capital Partners Purchase Date: March 2017 and September 2017 Forecast Disposition: 2022 Odyssey purchased these two Class A properties with C-III Capital Partners in separate transactions from two special servicers. Both properties had suffered for four years under ownership that was underwater and unwilling to invest capital to attract tenants. The occupancy at acquisition was 50%. Odyssey s basis is approximately $133/SF. The strategy is to remodel common areas, complete deferred maintenance, develop speculative suites, and to lease and sell the building. We forecast selling at 85% occupancy, for $240/SF in 2022. PECOS LEGACY Las Vegas, Nevada 2 Buildings 78,000 Square Feet Retail space consists of two buildings and two pad sites Purchased asset in 2016, at $13.5M Odyssey purchased this retail project in 2016 with a strategy to stabilize the current leases in place, increase rents on renewals, sell excess parcels and exit project in 2019. 8
TRACK RECORD - COMPLETED DEALS PARKWAY MEDICAL PLAZA Henderson, Nevada 1 Building 90,000 Square Feet Medical office building with surgical center, post-op recovery facility, diagnostic imaging, and lab space Capital Partner: C-III Capital Partners Project sold in 2018 Project IRR:? Equity Multiple: 2.43 x Hold period: 60 months Odyssey purchased this asset from a lender in 2013, when general office vacancies in Las Vegas were at 23%. Our vision was that medical office product occupancy and rent levels would recover ahead of the greater office market. Further, Odyssey recognized the value of the synergy of the medical tenant mix in this asset and the value of location of this asset, at the commercial hub of Las Vegas second largest master planned community, Green Valley. Our strategy was to recapitalize the asset early in the Las Vegas recovery, with sufficient equity to remodel vacant units and attract tenants that would pay premium rents for the location. In 2018, Odyssey sold Parkway Medical Plaza to after extensive capital investment in building systems and tenant unit renovations. We shored up the rent roll, renewing 30% of the occupancy in the first six months of the investment period. Subsequently, Odyssey increased occupancy from 60% to 95% over its five-year hold. The sales price of $31M exceeded original underwriting. 9
TRACK RECORD - COMPLETED DEALS LONE ELM LOGISTICS CENTER Olathe, Kansas 1 Buildings 496,150 Square Feet Development project, cross dock distribution facility Capital Partner: Artemis Capital Partners Project sold in 2017 Project IRR:? Equity Multiple: 1.21 x Hold period: 14 months Odyssey noticed a gap in the Olathe, Kansas industrial submarket market in 2015. This submarket needed modern efficient cross dock distribution product, along the Interstate 35 freeway. Odyssey purchased the land for this project in August of 2016, assembled the design and development team, completed permits and construction, and sold the property 14 months later, in October of 2017. Odyssey delivered the Lone Elm Logistic Center ahead of schedule and under budget and sold it for a value above our initial underwriting. The sale was completed with a national REIT for $23.6M 10
TRACK RECORD - COMPLETED DEALS LENEXA INDUSTRIAL PARK Lenexa, Kansas 23 Buildings 721,883 Square Feet 4 parcels of vacant land Industrial, flex and warehouse Capital Partner: Artemis Capital Partners Building sales completed in February 2018 Project IRR:? Equity Multiple: 1.51 x Hold Period: 36 months Odyssey purchased this asset in 2014 as Kansas City was emerging from the recession. Our plan included selling several of the separate land parcels and flex office assets to individual users at a premium and remodeling and leasing remaining vacant tenant units. During the hold period, Odyssey sold six individual buildings and two parcels of land for approximately $8.5M. In 2018, Odyssey sold the remaining 17 buildings of Lenexa Industrial Park to a regional investment group. The initial capital invested totaled $33M. Total proceeds from sales was $41.5M. 11
TRACK RECORD - COMPLETED DEALS SUNNY DELIGHT MANUFACTURING CENTER Littleton, Massachusetts 5 Buildings 332,000 Square Feet Mix of R&D office, refrigerated warehouse, bottling line and water processing facilities Capital Partner: Gordon Brothers / New Mill Capital Project sold in 2017 Project IRR:? Investor Equity Multiple: 1.26 x Hold period: 11.5 months Odyssey partnered with New Mill Capital and Gordon Brothers in 2016 to purchase a vacant bottling facility from Sunny Delight. The partners in this deal collaborated on the difficult question of whether individual equipment and real estate assets were worth more together or separated. Odyssey marketed the entire facility to several users while it prepared for the auction of the capital equipment and subsequent remodel and sale of separate real estate assets. This effort produced a sale to PepsiCo Beverage Company. The asset sale was completed within a year of the acquisition and returned profits that exceeded project underwriting. 12
LAS VEGAS ECONOMIC SUMMARY 2018 After a slow economic start in 2017, Las Vegas shines brightly as it leads the nation in economic development thanks, in large part, to exciting new construction and infrastructure projects and a thriving U.S. economy. Las Vegas has been late in the cycle in terms of recovery and, historically speaking, has not been known for big box developments. A recent shift in the market has raised demand for a more medium sized tenant (15,000-75,000 SF tenants) in the industrial market. While the big box developments are underway it appears now is the perfect time to develop medium sized building projects within the Las Vegas industrial market. Las Vegas is poised to experience an economic boom due to the needs of upcoming construction projects. Southern Nevada s top construction projects are currently projected to total in excess of $13 billion. Payroll for construction will increase over the next few years as demand for workers is inevitable. The top construction projects include the likes of NFL Raiders Stadium, the Resorts World hotel and casino and the Wynn Paradise Park expansion, all three major projects are scheduled to finish completion in 2020. 13
Notable construction/ infrastructure projects and their proposed budgets include: $1 billion for the Project Neon transportation project $1.4 billion of the Las Vegas Convention Center expansion and renovation $1.9 billion for the Raiders domed stadium $1.5 billion for Wynn Resorts Paradise Park $4 billion for Resorts World Las Vegas on the north Strip. Infrastructure projects in Las Vegas will aid construction efforts. Project Neon is important as it is the largest public works project in Nevada history. The proposed construction that is currently under construction will widen nearly 4 miles of Nevada s busiest highway. The vacancy in the Las Vegas industrial market is continuing its downward trend and is currently stabilized at 4.3%. This is especially impressive considering the marketplace gained 6.3 million SF of industrial inventory in 2017. In our opinion, it is clear that supply cannot keep pace with the demand even with an impressive addition experienced in the previous year. There is an estimated 4-9 million additional SF planned for construction and completion in 2018. The sales volume in 2017 totaled $309.1 million at an average asking rate of $97.10/SF. This is the highest price per square foot that Las Vegas has witnessed in nine years. Although construction is thriving in the Las Vegas, it currently only makes up 6% of the market as opposed to the previously held 11%. This is a positive sign for the city signaling a more diversified economy. 14
ODYSSEY TEAM GREGORY N. JOHNSON CEO/Managing Director Mr. Johnson has 20 years of diversified experience in the real estate investment industry including acquisitions, dispositions, underwriting, capital raising, structured financing, and portfolio management. Mr. Johnson is the CEO of Odyssey Real Estate Capital where he oversees the firm s investment strategies and financial structures. Prior to his current role, Mr. Johnson served as President and Chief Operating Officer for Centra Properties, a Las Vegas based real estate investment and development company, where he was responsible for the daily operations, finance and dispositions of the portfolio valued at over $500 million. Mr. Johnson has served as Vice President of Acquisitions for Archon Group, a wholly-owned subsidiary of Goldman Sachs, on behalf of the Whitehall Street Real Estate Funds. At Archon, Mr. Johnson underwrote more than $10 billion of both performing and non-performing loan pools and managed assets valued at over $500 million throughout the United States. In addition, Mr. Johnson established the Industrial Acquisition Group for the central region of the United States for Archon. Mr. Johnson has formerly held positions with Trammell Crow Company, Morgan Stanley & Co., and Weingarten Realty. Mr. Johnson holds an MBA from Southern Methodist University and a Bachelor s Degree from Rice University. GRAHAM NELSON Managing Director Mr. Nelson has 10 years experience in real estate underwriting, acquisitions and development. In his current position with Odyssey Real Estate Capital, Mr. Nelson is responsible for acquisitions and financing of Odyssey s portfolio of investments. Prior to co-founding Odyssey, Mr. Nelson served as Partner for Centra Properties, a Las Vegas based real estate investment & development company. At Centra, Mr. Nelson was responsible for overseeing the development of the Mosaic project and Centra Point Retail. He also participated in the acquisition and disposition of the Las Ramblas and South Tech projects which achieved a net profit of over $100 million. From 1999-2004, Mr. Nelson worked for the Archon Group, a wholly-owned subsidiary of Goldman Sachs. At Archon, Mr. Nelson managed $70 million in specially serviced loans, and underwrote and acquired distressed debt. Mr. Nelson also worked with the portfolio and asset management divisions for Real Estate Owned (REO) product. Mr. Nelson holds a Bachelor s degree from Harvard University. 15
ODYSSEY TEAM DAVE SUNDARAM Managing Director Mr. Sundaram has 10 years experience in the real estate industry, including brokerage, land acquisitions and entitlement work. In his current position with Odyssey Real Estate Capital, Mr. Sundaram is responsible for business development and real estate brokerage. Prior to cofounding Odyssey, Mr. Sundaram was a Partner with Centra Properties, a Las Vegas based real estate investment and development company. At Centra, Mr. Sundaram developed market analyses for the Las Ramblas and South Tech projects. Mr. Sundaram brokered the Mosaic land transaction with Fairfield Properties for 150% gross profit. Between 1995-1999, Mr. Sundaram was a commercial broker for the Las Vegas branch of Colliers International, where he leased and sold office space and brokered both commercial and residential land transactions. Mr. Sundaram has also worked in the medical device industry for Johnson & Johnson and Guidant Corporation. He was a member of the United States Air Force from 1987-1991. Mr. Sundaram holds a Bachelor s degree from San Diego State University. BENJAMIN RALPHS Director of Finance Benjamin Ralphs is the Chief Financial Officer for Odyssey Real Estate Capital with responsibilities including oversight of all operational aspects of Odyssey s business including all accounting functions, budgeting, contract administration and financial analysis. Prior to joining Odyssey, Mr. Ralphs served as an analyst at Applied Analysis where he actively worked on data tracking and analysis platforms as well as researched a wide range of topics, industries, and client specific projects. Additionally, Mr. Ralphs worked at UNLV s School of Environmental and Public Affairs where he helped develop and implement UNLV s Urban Data Lab aimed at providing support for an interdisciplinary research team as well as lab space where students and faculty work to build, refine, and deploy data used by academics, businesses and governments. He also lead a team of graduate students in the creation and implementation of Nevada Veterans Survey assessing the financial stability of veterans as well as worked with UNLV s Downtown Design Center, in research and development of the Southern Nevada Inventory of Sustainable Systems Project aimed at assessing resiliency and planning for the City of Las Vegas. Mr Ralphs holds a Master s degree and Bachelor s degree from University of Nevada Las Vegas. 16