| A Message from Jonathan Kieswetter
President, Grace Capital Group
We are pleased to announce that Grace Capital Group
is now a direct investor. Take a look at two projects under
"Noteworthy Closings" that we invested in this year.
We also now have access to several "investor pools"
for preferred equity. Our primary focus continues to be with
small to medium size commercial and residential developers with
projects located in the West; primarily California, Arizona,
Nevada, and possibly other major metropolitan cities in the
sunbelt and Northeast.
Our
private investor pools have a broad range of characteristics
such as; rates of returns, terms, location and property types
so it's difficult to summarize all the various investment strategies
other than to provide the following summary of a couple pools;
1. Private fund based in Texas and California that invests with
a guaranteed target IRR in the low twenty percent range. Obviously,
this is a very favorable IRR but it must be guaranteed by the
project. So if the project doesn't achieve its goals, the investor
gets their return before the partnership. However, if it's a
homerun, then the partnership enjoys higher returns. This is
a flexible fund that does not require monthly preferred interest
payments so the capital load is less strenuous on the project.
This fund is primarily focused in the Southwest and West. They
prefer both development and re-position income properties as
well as possible land development and residential projects in
very strong markets.
2. Private fund in Newport Beach California that has been around
for 20 plus years primarily investing in residential land and
single family housing projects. They require IRR yields in the
thirty percent range and require monthly payments for preferred
interest. This is a "typical" fund in pricing terms.
Their advantage is they are quick and because of their private
ownership, can make decisions on markets that the big guys might
struggle with.
Grace Capital
as a direct investor will invest in only one or two projects
a year and we're looking for those rare opportunities that a
"fund" wouldn't do but the returns are so attractive
and the business plan so sound that it warrants an investment
even though it may be a little off the beaten path.
Inspiration
"When
we build, let us think that we build forever. Let it not be
for present delight nor for present use alone. Let it be such
work as our descendants will thank us for; and let us think,
as we lay stone on stone that a time is to come when these stones
will be held sacred because our hands have touched them, and
that will say, as they look upon the labor and wrought substance
of them, See this our father did for us."
-John
Ruskin
Author 1819-1900
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| Note Worthy Closings of 2006
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Private
Investment
Central California
Private
equity invested by Grace Capital Group and an investor
pool to capitalize the partnership to entitlement of
nearly 12,000 acres located in Central California. Land
to be developed into Destination Entertainment, Mixed
Use and Residential Community.
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Private Investment
Goodyear Land Reclamation
Private equity investment by
Grace Capital Group and
debt financing arranged
for the purchase of an existing
30 acre, 65 foot deep "Borrow Pit" located
in Goodyear, Arizona; to be filled with clean dirt
with an "engineered" fill. Once the pit
is capped it will be sold to a home builder.
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