1. WaveCrest Capital Partners LLC
Two investment and development executives with a combined 40 years of real estate industry experience, Douglas Kotelly
and Mark Baranski, have formed Boston-based WaveCrest Capital Partners LLC, a real estate investment company and fund
manager specializing in equity investments in opportunistic apartment acquisitions throughout the U.S. Having worked
together for the past several years, the Managing Principals of WaveCrest raise, deploy and manage Limited Partner
investments through one-off transactions and via the firm’s formal investment platform, WaveCrest Opportunity Fund.
WaveCrest originates and closes investments in a diversified portfolio of “Class A-/B+/B” rental apartment properties
located in 15 targeted metropolitan areas shown on the following page. WaveCrest co-invests in the equity capital required
to purchase income-producing properties at significant discounts to replacement cost and normalized pricing levels.
Through its property-level sponsors (each of which acts as a General Partner), WaveCrest will sell its assets 3 to 4 years
after acquisition, at a time of greater stability and liquidity in the U.S. property and capital markets. WaveCrest provides
accredited investors with geographic diversification, in-place cash flow and near-term value creation potential. In order
to further enhance returns, WaveCrest may selectively invest in lower-priced deals that require moderate lease-up,
repositioning or capital improvements.
WaveCrest will generate superior risk-adjusted returns via a combination of demographic
and economic trends, coupled with its proprietary, off-market deal flow. These factors
will lead to the success of individual investments and include, but are not limited to, the following:
A. WaveCrest’s Managing Principals have an established track record of having deployed capital for a private equity
real estate fund, recently evidenced by their contribution to a 25% IRR on exited investments with a predecessor
firm.
B. Apartment properties are currently available at well below replacement cost.
C. WaveCrest takes advantage of owner-based (not asset-based) distress prevalent in today’s real estate capital
marketplace, primarily caused by capital markets illiquidity.
D. Rental apartment ownership provides an inflation hedge, insofar as shorter multifamily lease terms allow for
revenues and net operating income to rise – along with property values – faster than other property types.
E. The “echo boomers” are entering the prime rental-age cohort – which adds to the demand for multifamily
housing.
F. A severe decline in multifamily housing starts, combined with a lower homeownership rate, will cause an
undersupply of apartments relative to demand. Market rents in many cities will increase significantly beginning in
2012 (or sooner).
G. WaveCrest implements an investment strategy that does not require precise market timing, but rather follows a
“mechanical” approach to soliciting property owners and lenders to alert WaveCrest to possible off-market, high-
yielding transactions via the Managing Principals’ proprietary relationships and contacts.
H. WaveCrest invests in “middle market” deals requiring $2MM to $8MM of Limited Partner equity. The now-
fractured equity capital marketplace has broadened the need for capital in middle market property investments,
as institutional capital retreats to low-risk investments and entrepreneurial capital vanishes.
I. U.S. apartments have received recognition from institutional investors worldwide as a low-beta, high-return
investment vehicle; this increasingly positive investor sentiment is supported by 30 years of NCREIF data.
J. WaveCrest’s Managing Principals have acquired, developed, managed, and sold apartments and other asset types
in virtually every major U.S. metropolitan area over their collective 40 years of professional experience.
Disclosure: This summary is exclusively for your confidential use. This is not an offer to sell an interest in WaveCrest Opportunity Fund (the “Fund”) and is
intended for informational purposes only. This summary is qualified in its entirety by information contained in a Private Placement Memorandum. It does
not contain all relevant or material information relating to the creation of WaveCrest, and the preliminary concepts and terms and conditions relating to
WaveCrest set forth herein are subject to change. Final Fund terms will be contained in a Private Placement Memorandum, with accompanying
subscription documents to be delivered to each investor for their review prior to investing in WaveCrest. Delivery of this summary to any other person is
unauthorized. Any reproduction of this summary, or any divulgence of its contents, to any person other than you and your professional advisors without
our prior written consent is prohibited and may subject you and us to securities or other legal liability.

2. WaveCrest Capital Partners LLC Executive Summary
WaveCrest Opportunity Fund is anticipated to raise $50,000,000, which will be placed in a diverse portfolio of off-market
Limited Partner equity real estate investments. WaveCrest’s investments are projected to require an average of $5,000,000
in equity capital at time of project-level closing. Based on 65% leverage and an equity co-investment by WaveCrest of 80%
of the remaining equity requirement, this equates to an average capitalization of ~$18,000,000.
At time of closing, WaveCrest earns reasonable and customary fees, including property-level underwriting fees. WaveCrest
Opportunity Fund may be “seeded” with one to four deals, negotiated prior to fund closing by WaveCrest, but the presence
of such deals is contingent on prevailing capital market conditions.
WaveCrest may invest in any of the 43 U.S. consolidated metropolitan areas having a population of over 1,000,000.
However, WaveCrest targets its investments in the cities shown below, each of which has a diversified economy, serves as a
transportation hub, has a high rental-age population (e.g., “echo boomers”), and/or has abundant opportunities to
purchase apartment properties at well below replacement cost.
WaveCrest will most aggressively pursue investments in the following target markets:
Boston Washington Miami Denver San Francisco
New York Raleigh-Durham Chicago Phoenix Los Angeles
Philadelphia Atlanta Austin Seattle San Diego
The above target markets were chosen based on the following characteristics, which WaveCrest’s Managing Principals
believe will promote and enhance returns:
Flight of Intellectual Capital to Cities with Historically High Job
Vibrant Urban Coastal Cities Growth that have Exceptional High-Tech Hubs
Current Purchase Opportunities
Boston, New York, Philadelphia, Raleigh-Durham, Austin and
Washington, Chicago, Seattle, San Atlanta, Miami and Phoenix have Denver feature diversified,
Francisco, Los Angeles and San vibrant, growing economies and technology-oriented economies.
Diego are generally supply- generate job growth during These regions enjoy in-migration of
constrained. These metropolitan normalized economic conditions, well-educated residents, including
areas have significant geographic but have suffered due to recent those in the technology and health
and municipal barriers to entry, an residential overbuilding, and thus care fields. Young professionals in
affluent and educated workforce, a have exceptional buying these cities will be able to respond
marked decline in future supply, opportunities, including to movements in prevailing market
and a projected earlier recovery in multifamily properties built to rents.
demand. condominium specifications.
In all of these regions, many owners of apartment properties are bereft of refinancing options and unable to make principal
pay-down payments. Thus, these beleaguered owners will be forced to sell at well below replacement cost (and lenders –
having foreclosed or via a short sale – may need to sell such properties at below original par value), allowing a newly
capitalized owner to receive relatively high in-place cash flow. This will create enormous value creation potential once the
capital markets improve and the supply-demand housing imbalance is remedied (in many markets, the housing imbalance
will have reversed by 2012).
WaveCrest will place a particular emphasis on locations that possess superior access to private and public transportation,
proximity to nodes of white-collar employment, existing or planned on-site resident amenities (particularly “smart” and/or
LEED-certified buildings) and nearby cultural attractions.
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3. WaveCrest Capital Partners LLC Executive Summary
As an asset class, apartments have outperformed other property types over the past 31 years, as measured by the National
Council of Real Estate Investment Fiduciaries (“NCREIF”). Institutionally owned apartments also outperformed the S&P 500
Index over the same time frame. Additionally, apartments had less variable returns during this time frame. WaveCrest
offers its investors the opportunity to participate in this preferred asset type, while at the same time benefiting from
economic and demographic dynamics that are extremely favorable for near-term apartment buyers. Due to the presence
of the GSE’s, the crushing illiquidity that plagued the real estate capital marketplace in late 2008 and early 2009 has abated
considerably – for the apartment sector – in the latter half of 2009.
WaveCrest benefits from a combination of greater
purchasing power (via lower pricing and higher cap rates),
There also are trends in the U.S. real estate more reasonable liquidity throughout all real estate
property markets, and an improving U.S. economy. Attractive
and capital markets that favor apartments: investment opportunities will continue to emerge – albeit
with continued moderate sales velocity – and WaveCrest
1. Construction starts have declined to multi- will use its experience and contacts to generate deals with
year lows in 2009. Through 2012 (and entrepreneurial business plans and reliable near-term
perhaps longer), construction starts will upside potential.
remain at a level well below that of the past
20 years.
2. Over the past 31 years, NCREIF’s apartment There are meaningful long-term drivers of demand for
investment returns have averaged over 10% the U.S. apartment market:
per year - more than any other property
type, and more than the S&P 500.  Population Growth: There will be 94 million more
3. Despite today’s high vacancy rates, people in the U.S. by 2030.
apartments have featured the lowest long-  Echo Boomers: From 2009 to 2015, the
term vacancy trends (just over 5%) versus population aged 20-34 years of age will increase
other property types (e.g., office: 13%; by 5 million, to 67 million.
industrial: 8%; retail: 7%).  Ongoing Immigration: 10 million new immigrants
4. Partly owing to apartments’ short-term will arrive in the U.S. in the next 10 years.
leases allowing for “real time” adjustments  Changes in Household Composition: By 2020,
to market rents, apartments have featured singles and unrelated individuals will comprise 1
the highest long-term effective rent growth out of every 3 households.
(3%) versus the other three major property  Own vs. Rent: The downturn in the home
types (all below 2%). ownership rate since 2005 has caused a further
increase in renter households.
Shown below is a list of representative joint-venture equity deals closed by the Managing Principals of WaveCrest:
 Austin, Texas: 250 units; Ground-Up Construction; $12.79MM Limited Partner (“LP”) equity; Realized 43.4% IRR
 Boston, Massachusetts: 5 units; Acquisition and Conversion – Historic Residence; $1.87MM LP equity; Realized
76.3% IRR
 Denver, Colorado: 219 units; Ground-Up Construction; $7.19MM LP equity; Projected 15.3% IRR
 Phoenix, Arizona: 268 units; Acquisition and Conversion; $8.40MM equity; Realized 35.8% IRR
 Boston, Massachusetts: 82 units; Ground-Up Construction; $4.50MM LP equity; Realized 25.7% IRR
 Los Angeles, California: 223 units; Ground-Up Construction; $9.22MM LP equity; Projected 13.6% IRR
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4. WaveCrest Capital Partners LLC Executive Summary
Douglas G. Kotelly is Managing Principal of WaveCrest Capital Partners LLC. Mr. Kotelly is
responsible for deal originations and the overall activities of WaveCrest.
Prior to co-founding WaveCrest, Mr. Kotelly was Managing Director of Overland Realty
Capital LLC from 2004 to 2009. As head of the real estate equity production team, Mr.
Kotelly originated equity and mezzanine investments in real estate projects nationwide, and
orchestrated the activities of Overland's producers and analysts. Mr. Kotelly has over 20
years of experience in the U.S. real estate industry in virtually all property and capital
markets, including more than a decade as a producer of institutional real estate equity and
mezzanine investments. Prior to Overland, Mr. Kotelly originated equity, mezzanine and
direct investments for KeyBank’s Private Equity Group, South Charles Investment Corporation (now TriSail Capital
Corporation, a division of Bank of America), SunLife Financial and PaineWebber Properties (now a division of UBS). Mr.
Kotelly has originated over $200 Million of private equity real estate investments during his career, representing over $1
Billion in total real estate capitalization. Mr. Kotelly holds a B.S., Finance, summa cum laude, from the Carroll School of
Management of Boston College, where he ran Varsity Track and Field. He also holds an M.B.A., magna cum laude, from the
F.W. Olin Graduate School of Business of Babson College.
Mark S. Baranski is Managing Principal of WaveCrest Capital Partners LLC. Mr. Baranski is
responsible for fund-raising, direct acquisitions and manages WaveCrest’s investor relations.
Prior to co-founding WaveCrest, Mr. Baranski was Managing Director of Overland
Development Group LLC from 2005 to 2009. Mr. Baranski has over 20 years of experience in
the real estate industry, in both the institutional and construction sectors. He has owned,
developed and managed projects on his own account and in conjunction with institutional
equity providers. Prior to joining Overland, Mr. Baranski was a developer focusing on larger-
scale urban in-fill projects. He completed 424 Massachusetts Avenue, an 18,000-square-foot
residential project located in Boston’s historic and heavily urbanized South End. In addition,
Mr. Baranski was Director of Marketing for Shawmut Design and Construction. Mr. Baranski
holds a B.A. from Boston University and an M.S., Real Estate Development, from
Massachusetts Institute of Technology. He is a Licensed Construction Superintendent in Massachusetts. Mr. Baranski’s
graduate thesis at MIT, entitled, “100 Years of Commercial Real Estate Prices in Manhattan,” was published in the Spring
2009 edition of Real Estate Economics. He is an Adjunct Professor at the Northeastern University School of Architecture.
In terms of governance, WaveCrest has reached agreements with Mintz, Levin, Cohn, Ferris, Glovsky and Popeo for legal
services, DiCicco, Gulman & Company for accounting and tax services, KPMG for audit services, and Tremont Realty Capital
for asset management services. Furthermore, the Managing Principals of WaveCrest have received commitments from a
Professor at Harvard Business School and a Lecturer at MIT Center for Real Estate to join as members of WaveCrest’s Board
of Advisors.
Kindly contact the Managing Principals of WaveCrest Capital Partners with any questions you may have, or to receive an
accredited investor’s questionnaire:
Douglas G. Kotelly Mark S. Baranski
Managing Principal Managing Principal
617 470 9748 617 733 7055
dkotelly@wavecrestllc.com www.wavecrestllc.com mbaranski@wavecrestllc.com
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