Wealth & Finance International - March 2017

Wealth & Finance International 36 Structured Equity Solutions e focus on opportunities where value can be created and enhanced through repositioning, renovation or creative re- capitalisation strategies. DVO’s equity is uniquely structured to work in lock-step with senior financing and specifically tailored to meet the needs of the transaction and sponsor resulting in the company’s well-earned reputation as a reliable provider of inno- vative and flexible equity for investment in value-added and core-plus multifamily opportunities. Our strategy is highly selective investment in multifamily opportunities that generate equity level returns while taking less than equity level risk. Risk is mitigated primarily via deal structure, deal selection, market knowledge, utilising stringent & supportable underwriting assumptions and employing a comprehensive owner/operator driven due diligence and asset management approach. We are currently planning the first closing of our Gap Equity Fund, LP in March, ultimately seeking to raise $100 - $150 million to continue the company’s growth trajectory. Since its start in 2012, DVO has invested in 21 properties totalling 4,822 units with a total capitalisation of nearly $840 million. Our goal for this portfolio was to generate a 14-16% net IRR for our investors. Thus far, we have sold or entered in to a binding agreement to sell 5 of the 11 LP assets, representing 47% of our equity contributions, including two dispositions in 2016 and one planned February of 2017. These dispositions have generated an average net investor IRR and cash flow multiple of 28.3% and 1.64x respectively. Mr. Valger founded DVO Real Estate and is responsible for the overall management, operations and investing activities of the firm. Mr. Valger is a seasoned industry veteran with extensive experience in all aspects of real estate investing and finance, including originating, structuring, underwriting and managing real estate and corporate private equity transactions valued at more than $5 billion. Previously, Mr. Valger was a partner with RCG Longview Debt Funds, a New York-based real estate firm offering structured equity and debt products. At RCG, he specialised in multifamily properties and was responsible for originating, structuring and underwriting a variety of real estate mezzanine and preferred equity investments, including more than 25,000 multifamily units. While there, he developed and led the firm’s exclusive Fannie Mae part- nership. Prior to RCG Longview, Mr. Valger founded Genesys Holdings, a start-up technology company and was the head of sales & marketing for a multi-national packaged goods marketing firm called NutriPlus. Mr. Valger is a member of the board of directors and a former member of the Executive Committee of the UJA/Federation of New York and a member of the board of directors of the JCRC in New York. Mr. Valger received a B.A. from Binghamton University with a Major in Art History and a Minor in Biology and an M.B.A in Real Estate & Entrepreneurial Management from the Wharton School of the University of Pennsylvania. The DVO team The DVO team brings almost 100 years if business experience to the table and help distinguish DVO from its peers. The team, blends deep experience and knowledge base complete the following key company missions: • Serve as a trusted fiduciary for its investors capital; • Identify unique investment opportunities; • Structure bespoke transactions to increase returns and mitigate risks; • Build deep relationships with local partners and; • Provide stellar asset management and excellent reporting for its investors. While DVO does not have customers in the conventional sense, we have investors and local partners. We pride on ourselves on building and maintaining strong local partner relationships, which distinguish DVO’s investment products from those of its peers. We work hard to generate appropriate risk-adjusted returns for our investors and do so every day. Future opportunities We are currently planning the first closing of our Gap Equity Fund, LP in March, ultimately seeking to raise $100 - $150 million to continue the company’s growth trajectory. As we set our sights on the initial closing, we are simultaneously working on a robust pipeline of opportunities which is in excess of $50 million. A lack of capital available for middle-market investments results in signif- icant inefficiencies and robust demand for gap equity of $2 - $15 million. Sustainable demand for multifamily rental units and rent growth is expect- ed to continue due to favourable demographic trends, sluggish single-fami- ly housing, expansion of labour markets and wage growth and inflation. Our industry is coming off a 5+ year expansion cycle, in terms of rents, demand, values and availability of both debt and equity. As we face the prospect of additional inflation on the horizon, and monetary policy tightening, we must stay vigilant about our underwriting assumptions and the quality of local partners with whom we make investments. Company: DVO Real Estate, LLC Name: Sarah-Jayne Johnston Email: [email protected] Web Address: www.dvorellc.com Address: Seven Penn Plaza, Suite 1400, New York, NY 10001 Telephone: +1 (212) 391 0902 DVO Real Estate is a private real estate investment firm focused exclusively on providing structured equity solutions for middle market, multifamily investments across the United States. W 1703WF22