signature/drs fund i private equity fund i real estate

SIGNATURE/DRS FUND IPRIVATE EQUITY FUND IREAL ESTATE

Presented by:

Ward Katz & Jerry Miller Co- Managing Members

Signature/DRS Fund I7171 W. 95th St. Suite 220Overland Park, KS 66212

Phone: 913-563-4500Email: [email protected]

www.signaturedrsfunds.comWard Katz

Phone: 913-955-2904Email: [email protected]

Jerry MillerPhone: 913-563-4518

Email: [email protected]

Real Estate Multifamily Rental Investment Opportunity Fund


mailto:[email protected]

http://www.signaturedrsfunds.com/

SIGNATURE /DRS FUND IPRIVATE EQUITY FUND I REAL ESTATE

Signature/DRS Fund I is a joint venture between two experienced and successful real estate firms, DRS Management & Signature Property Management, to develop and manage Signature/DRS FUND I. The Fund will focus on acquiring, repositioning, managing and selling multifamily properties in Kansas City, Dallas, Denver, St. Louis & Phoenix.

Management has over 60 years of Real Estate Investment and Management Experience.

DRS Management & Signature Property Management have developed, acquired and syndicated over $175 Million in more than 25 separate real estate transactions

DRS Management & Signature Property Management have overseen the management of 65 apartment communities and over 9,000 units, and currently manage 15 property communities and over 3,000 units

The existing combined portfolio of DRS Management & Signature Property Management consists of apartment communities, condominiums and home associations in three states

SIGNATURE / DRS FUND ICOMPANY OVERVIEW


1) Signature/DRS Fund I was formed to: Offer accredited investors the opportunity to participate with the sponsor of

the Fund by combining resources for the acquisition, management and sale of a portfolio of a diverse apartment properties.

2) The offering’s goal is to provide: An investment structure with low font-end costs where the sponsor is

compensated only after a preferred return is distributed to investors.

3) To add value to the investment: Sponsors will utilize their professional management staffs to reposition the

properties through refinancing, better marketing and management or cost–effective physical upgrades.

SIGNATURE / DRS FUND IFUND OBJECTIVE


The Fund will invest 100% of the equity required in a project to own a 100% interest in the project. The Fund will deploy a percentage of its capital in joint ventures where the Fund can control a

disproportionately larger ownership interest than the percentage share of equity invested in a particular project.

Utilizing a combination of these two investment platforms, the Fund believes that it will be able to greatly leverage its investments and acquire between $35MM and $45MM in assets, thus providing diversification, reducing risk and enhancing overall returns to the Fund.

SIGNATURE / DRS FUND IFUND BUSINESS MODEL


SIGNATURE / DRS FUND IINVESTMENT PARAMETERS

To Provide Real Estate Investors with a quality, proven real estate investment & management company with a compelling vision.

Company Philosophy

Asset Type

Company Objective

Fund Target Return

Asset Size in Dollars

Asset Size in Units

Assets Location

To Acquire 3 properties over the next 2 years.

100 – 250 Units per property

$7.5MM - $15MM

30% IRR (before fund expenses and splits)

Kansas City, Denver, Dallas, St. Louis, Phoenix

Leverage Per Asset

Apartment BuildingsClass B & C Properties

70%-75%


5 Year AnalysisInvestment Amount $ 100,000

Percentage Equity Interest 1.43%

Cash Flow Category 1/1/2015 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 TOTALS

Capital Contribution $ (100,000)

Preferred Return $ - $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 40,000

Return of Capital $ - $ - $ - $ - $ - $ 100,000 $ 100,000

LP/Sponsor Split $ - $ 7,236 $ 8,227 $ 9,259 $ 10,336 $ 6,398 $ 41,4568

Capital Event Distribution $ - $ - $ - $ - $ 82,241 $ 82,241

Total $ (100,000) 15,236 16,227 $ 17,259 $ 18,336 $ 196,639 $ 263,697

Cumulative Cash Returned $ (100,000) $ 15,236 $ 31,463 $ 48,723 $ 67,059 $ 263,697 $ 263,697

IRR 26.0%Annual Return(Capital &

Income) 15.2% 16.2% 17.3% 18.3% 14.4%

Multiple 254%

* Past performance is not indicative of future results.** This is a sample return and actual results may vary. See PPM for risks of Investment.

SIGNATURE / DRS FUND ISAMPLE INVESTMENT SCENERIO


APARTMENT CYCLES AND FUND STRATEGYTHE FUND TARGET


Much has been written and spoken about the upswing in renters who no longer view home ownership as an investment, who want the flexibility of renting and/or cannot obtain financing for a home purchase. It is commonly believed that rental demand for mid-market apartment product will not keep pace with supply.

With rental demand for apartments continuing to firm up, institutional investors are purchasing and developers are building Class A apartments at a record pace. Management believes that the apartment cycle is rapidly approaching hyper supply and that the time to purchase well located Class B/C apartments at a reasonable price is on the horizon. Our criteria are those Class B/C properties that are ripe for repositioning through management, financing and/ or rehabilitation

The financing of many transactions, particularly 5-7-10 year deals will be facing maturity resulting in buying opportunities. Sellers and commercial brokers are looking to buyers who have ample funds and borrowing capacity to move quickly and close. The motivation for raising funds for purchase of undesignated projects but meeting specific investment criteria is to demonstrate to the sellers and brokers that the fund can move rapidly to contract and close and thus assure an early look at all opportunities.

APARTMENT CYCLES AND FUND STRATEGYCONTINUED DEMAND and OVERSUPPLY


U.S. Constructionof New Apartments

• 2001-2007 average 301,000 units/year• 2009 163,000 units• 2012 104,500 units• 2013 195,000 units• 2014 300,000 units• 2015 (projected) 413,000 units


Kansas City Constructionof New Apartments

• Existing inventory 132,500 units• Under construction and pipeline 8,000 units• Average annual absorption 1,500 units• Projected years supply 5.3 years


5 Year AnalysisInvestment Amount $ 100,000

Percentage Equity Interest 1.43%

Cash Flow Category 1/1/2015 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 TOTALS

Capital Contribution $ (100,000)

Preferred Return $ - $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 40,000

Return of Capital $ - $ - $ - $ - $ - $ 100,000 $ 100,000

LP/Sponsor Split $ - $ 7,236 $ 8,227 $ 9,259 $ 10,336 $ 6,398 $ 41,4568

Capital Event Distribution $ - $ - $ - $ - $ 82,241 $ 82,241

Total $ (100,000) 15,236 16,227 $ 17,259 $ 18,336 $ 196,639 $ 263,697

Cumulative Cash Returned $ (100,000) $ 15,236 $ 31,463 $ 48,723 $ 67,059 $ 263,697 $ 263,697

IRR 26.0%Annual Return(Capital &

Income) 15.2% 16.2% 17.3% 18.3% 14.4%

Multiple 254%

* Past performance is not indicative of future results.** This is a sample return and actual results may vary. See PPM for risks of Investment.

SIGNATURE / DRS FUND ISAMPLE INVESTMENT SCENERIO

SIGNATURE /DRS FUND IPRIVATE EQUITY FUND I REAL ESTATEQuestions

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