Case Study - Laguna Village

Laguna Village

Property Type	Retail
Property Location	Phoenix, AZ

Capitalization ($mm)	$15.1mm
Investment Status	Partially Realized

Background

131,117 square foot community shopping center.
Located at the fully signalized interchange of Ray Road and Kyrene Road in the affluent and densely-populated Chandler neighborhood of Phoenix, AZ.
Acquired in January 2016 for $14.8mm.
62% leased at acquisition; vacancy included former anchor movie theater and former junior anchor Fresh & Easy grocery store.
Business plan to complete cosmetic upgrades to lease up the anchor and inline vacancies, and selectively sell individual retail parcels.

Investment Highlights

Sold the Walgreens parcel within three months of taking ownership.
Leased the former Fresh & Easy junior anchor space to Natural Grocers, and sold within six months of ownership.
Increased occupancy to 89%, including leasing the former anchor movie theater to one of the largest and most creditworthy churches in the U.S.
Actively marketing the remaining property for sale.

Property investment was completed by an affiliate of the Sponsor of 1st stREIT Office, Inc. as part of one of its prior programs, and is not included in the current offering of 1st stREIT Office, Inc. For more information, please refer to to the offering circular at streitwise.com/oc. All information as of 9/30/18.

SW Manager, LLC, dba “stREITwise,” (“Manager”) is a wholly-owned subsidiary of and controlled by Tryperion Partners, LLC (our “Sponsor”). Manager is the external manager and advisor of 1st stREIT Office Inc. (“1st stREIT Office”) and 1st stREIT Office Operating Partnership LP (our “Operating Partnership” and, together with 1st stREIT Office, “Our Current Offering”). 1st stREIT Office is the sole general partner of our Operating Partnership, through which all of our assets will be owned and substantially all of our operations will be conducted. All references herein to “stREITwise” refer, as applicable, to Manager, 1st stREIT Office, the Operating Partnership, or any of their affiliates (collectively, the “stREITwise Entities”). Unless explicitly stated to the contrary, all references to “we,” “us,” and/or “our” shall refer to the stREITwise Entities. stREITwise is not affiliated with nor related to NAREIT or its annual REITwise conference.

An offering statement regarding this offering has been filed with the SEC. The SEC has qualified that offering statement which only means that 1st stREIT Office Inc. may make sales of the securities described by that offering statement. It does not mean that the SEC has approved, passed upon the merits or passed upon the accuracy or completeness of the information in the offering statement. You may obtain a copy of the offering circular that is part of that offering statement HERE. You should read the offering circular before making any investment. Our current offering is structured as a non-traded real estate investment trust, or “REIT,” under Regulation A+ of the JOBs Act.

¹ Since inception annualized dividend includes all dividends from commencement of operations of Our Current Offering through the quarter ending September 30, 2018.
² Source: FTSE NAREIT All Equity REITs vs S&P 500. Real estate has outperformed the S&P 500 with more than double the gains since 1990.
³ #1 Overall Fund Fees and Experience as rated by The Real-Estate Crowdfunding Review.
⁴ Related to investments by Sponsor as part of one of its prior programs, and not of any of the stREITwise Entities.
⁵ We will seek to invest in real properties and other real estate-related assets that we believe can produce a 10% return. Based on our Sponsor’s prior experience, we believe that we can acquire a portfolio of assets that has the ability to achieve this return for investors. However, we cannot guarantee that we will reach this target return for our investors.

Laguna Village

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