Real Estate
UPNIN Real Estate Series is a real estate investment company focused on acquiring and developing properties throughout Texas, but will consider properties in other states. UPNIN’s business model focuses on accredited investors who are interested in investing in institutional quality assets. To learn more about our Real Estate Development Division click here!
We believe our unique co-investment strategy provides our clients a better risk adjusted return when compared to other investment options such as mutual funds or REITS where the investment manager’s compensation is based less on performance and more on asset accumulation.
We seek to identify investment opportunities in commercial real estate markets where rental market, capital supply or demand factors have created strong prospects for superior risk adjusted returns. UPNIN will invest in value-add commercial real estate transactions, targeting office, industrial, multi-family, and retail properties. UPNIN will target investments in commercial real estate assets that are underperforming, in need of recapitalization, experiencing financial difficulties or owned by institutions constrained by regulatory requirements.
UPNIN’s investments may take a variety of forms, including direct investments, investments in partnerships or distressed note purchases. UPNIN intends to form partnerships with other third-party investors to make some or all of the investments. UPNIN may act as either managing member or limited member of these co-investment partnerships.
The Company will not accept capital commitments of less than fifty thousand dollars ($50,000). The managing member of UPNIN will make a capital commitment equal to one percent (1%) of the aggregate capital commitments of the other investors up to a maximum of two hundred fifty thousand dollars ($250,000).
Investment Highlights
Opportunity to Invest in Distressed Assets: UPNIN believes this is an ideal time to invest in well-located commercial real estate. Real estate values have declined nationwide due to the recent recession and the ongoing deleveraging of commercial real estate. UPNIN believes many of these assets have yet to have their problems resolved providing an opportunity to recapitalize them and achieve very attractive risk-adjusted returns.
Diversification. UPNIN will seek to invest in a diversified portfolio of commercial real estate assets. UPNIN intends to co-invest with institutional investors to stretch UPNIN's equity capital and provide greater diversification.
Investment Opportunity
UPNIN expects transaction activity, including financings, for CRE will show continued improvement, over the 24 to 36 months. Since job creation is such a critical factor in the operating fundamentals for real estate, UPNIN will focus primarily on the following markets, which have historically generated new jobs at twice the national average: Atlanta, Georgia; Austin, Texas; Dallas, Texas; Denver, Colorado; Houston, Texas; Miami, Florida; Phoenix, Arizona; and San Antonio, Texas. UPNIN expects to have the opportunity to acquire CRE at 40% to 50% discounts to replacement value.
UPNIN is already seeing attractive opportunities to invest in well-located CRE projects that require new equity, new energy, more creativity, and better sponsorship. UPNIN will selectively focus on CRE transactions, which we believe will translate into a higher internal without undue risk.
UPNIN believes that the commercial real estate business is first and foremost a local business that requires local expertise and a hands-on approach to maintaining and enhancing value.
Summary
In conclusion, the current distressed CRE market offers an attractive investment opportunity for the following reasons:
Shortage of CRE Debt Capital: There is a severe shortage of new debt capital for CRE investment. Property owners will be forced to sell or recapitalize CRE projects in order to refinance existing CRE debt at maturity.
Distressed Debt Markets: CRE lenders will struggle with large numbers of foreclosures and restructurings as CRE property owners fail to repay CRE loans at maturity. The REO inventory is significant and CRE lenders will be compelled to dispose of REO property, offering CRE investors the opportunity to acquire CRE at the bottom of the market cycle.
Attractive Risk Adjusted Returns: UPNIN believes that it will be able to acquire quality, well-located CRE at substantial discounts to replacement cost. Due to the shortage of equity capital for new CRE investment, UPNIN expects the risk-adjusted returns on new CRE investments to be very attractive. UPNIN expects market fundamentals and CRE prices to improve as the economy slowly recovers and expects capitalization rates return to more normal levels in three to five years.
We believe our unique co-investment strategy provides our clients a better risk adjusted return when compared to other investment options such as mutual funds or REITS where the investment manager’s compensation is based less on performance and more on asset accumulation.
We seek to identify investment opportunities in commercial real estate markets where rental market, capital supply or demand factors have created strong prospects for superior risk adjusted returns. UPNIN will invest in value-add commercial real estate transactions, targeting office, industrial, multi-family, and retail properties. UPNIN will target investments in commercial real estate assets that are underperforming, in need of recapitalization, experiencing financial difficulties or owned by institutions constrained by regulatory requirements.
UPNIN’s investments may take a variety of forms, including direct investments, investments in partnerships or distressed note purchases. UPNIN intends to form partnerships with other third-party investors to make some or all of the investments. UPNIN may act as either managing member or limited member of these co-investment partnerships.
The Company will not accept capital commitments of less than fifty thousand dollars ($50,000). The managing member of UPNIN will make a capital commitment equal to one percent (1%) of the aggregate capital commitments of the other investors up to a maximum of two hundred fifty thousand dollars ($250,000).
Investment Highlights
Opportunity to Invest in Distressed Assets: UPNIN believes this is an ideal time to invest in well-located commercial real estate. Real estate values have declined nationwide due to the recent recession and the ongoing deleveraging of commercial real estate. UPNIN believes many of these assets have yet to have their problems resolved providing an opportunity to recapitalize them and achieve very attractive risk-adjusted returns.
Diversification. UPNIN will seek to invest in a diversified portfolio of commercial real estate assets. UPNIN intends to co-invest with institutional investors to stretch UPNIN's equity capital and provide greater diversification.
Investment Opportunity
UPNIN expects transaction activity, including financings, for CRE will show continued improvement, over the 24 to 36 months. Since job creation is such a critical factor in the operating fundamentals for real estate, UPNIN will focus primarily on the following markets, which have historically generated new jobs at twice the national average: Atlanta, Georgia; Austin, Texas; Dallas, Texas; Denver, Colorado; Houston, Texas; Miami, Florida; Phoenix, Arizona; and San Antonio, Texas. UPNIN expects to have the opportunity to acquire CRE at 40% to 50% discounts to replacement value.
UPNIN is already seeing attractive opportunities to invest in well-located CRE projects that require new equity, new energy, more creativity, and better sponsorship. UPNIN will selectively focus on CRE transactions, which we believe will translate into a higher internal without undue risk.
UPNIN believes that the commercial real estate business is first and foremost a local business that requires local expertise and a hands-on approach to maintaining and enhancing value.
Summary
In conclusion, the current distressed CRE market offers an attractive investment opportunity for the following reasons:
Shortage of CRE Debt Capital: There is a severe shortage of new debt capital for CRE investment. Property owners will be forced to sell or recapitalize CRE projects in order to refinance existing CRE debt at maturity.
Distressed Debt Markets: CRE lenders will struggle with large numbers of foreclosures and restructurings as CRE property owners fail to repay CRE loans at maturity. The REO inventory is significant and CRE lenders will be compelled to dispose of REO property, offering CRE investors the opportunity to acquire CRE at the bottom of the market cycle.
Attractive Risk Adjusted Returns: UPNIN believes that it will be able to acquire quality, well-located CRE at substantial discounts to replacement cost. Due to the shortage of equity capital for new CRE investment, UPNIN expects the risk-adjusted returns on new CRE investments to be very attractive. UPNIN expects market fundamentals and CRE prices to improve as the economy slowly recovers and expects capitalization rates return to more normal levels in three to five years.
