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Overview of Investment Opportunity in Athena Real Estate Fund I

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Investor Presentation

  1. 1. Investment Overview Athena Real Estate Fund I Managed by Pantheon Capital, LLC Contact Management For Further Information, And Full Offering Memorandum Dan Farris (949) 903-6419 [email_address] Arthur Havener, Jr (314) 852-6999 [email_address]
  2. 2. Team <ul><li>Dan Farris - Founder, Principal </li></ul><ul><ul><li>Vast Acquisition/Underwriting Experience </li></ul></ul><ul><ul><ul><li>Lead acquisitions team in over $125 million of investment in the last 2 years </li></ul></ul></ul><ul><ul><ul><li>Underwritten over $1.5 billion in corporate property assets </li></ul></ul></ul><ul><ul><li>10 years of Real Estate Valuation Experience </li></ul></ul><ul><li>Arthur Havener Jr. - Founder, Principal </li></ul><ul><ul><li>Over 20 Years Real Estate Valuation Experience </li></ul></ul><ul><ul><li>Board Of Director Positions </li></ul></ul><ul><ul><ul><li>Boardwalk REIT (BEI-TSX) - Largest Canadian Apartment Owner </li></ul></ul></ul><ul><ul><ul><li>MDC North American Real Estate Fund - Private Equity Investment Fund </li></ul></ul></ul><ul><ul><li>Real Estate Consultant to Public REITs and Institutional Investors </li></ul></ul><ul><ul><li>Private Equity Placement Agent </li></ul></ul>Confidential
  3. 3. Introduction <ul><li>Summary Investment Offering </li></ul><ul><ul><li>Student Housing Acquisition, Re-development and New Development In Midwest “College Towns” </li></ul></ul><ul><ul><li>All Locations Within ¼ Mile Of College Campus </li></ul></ul><ul><ul><li>Midwestern Student Housing Market Ripe For Consolidation / Redevelopment </li></ul></ul><ul><ul><li>50+ Bed Properties/Portfolios, Gain Economies of Scale </li></ul></ul><ul><ul><li>All new Construction To Be LEED Certified (“Green Buildings”) </li></ul></ul><ul><li>Seeking $10 - $25 Million From Equity Partners </li></ul>Confidential
  4. 4. Investor Returns <ul><li>Seeking $10 - $25 Million Equity Investment </li></ul><ul><ul><li>5 Year Lock Up Period, Limited Redemption </li></ul></ul><ul><ul><li>Investor Hurdle Return of 10% Annualized </li></ul></ul><ul><ul><li>Potential Ongoing Property Ownership and Cash Flow </li></ul></ul><ul><li>Minimal Management Fees </li></ul><ul><ul><li>Upfront, Ongoing Fees Well Below Industry </li></ul></ul><ul><ul><li>Management Returns Aligned With Investor Returns </li></ul></ul>Confidential
  5. 5. Fee Structure vs Industry Confidential
  6. 6. Market Attributes <ul><li>Midwestern College Towns </li></ul><ul><ul><li>Under 200,000 population </li></ul></ul><ul><ul><li>Over 15,000 full time students </li></ul></ul><ul><ul><li>On Campus Housing For Less Than 40% of Students </li></ul></ul><ul><li>Reasoning For Target Markets </li></ul><ul><ul><li>Lack of Investment Focus </li></ul></ul><ul><ul><li>Highly Fragmented Ownership </li></ul></ul><ul><ul><li>Less Cumbersome Redevelopment Process </li></ul></ul><ul><ul><li>Imbedded But Overlooked Renter Base </li></ul></ul>Confidential
  7. 7. Demographic Trends <ul><li>Baby Boom Echo to peak in 2015 </li></ul><ul><li>College enrollment of high school graduates at all time high </li></ul><ul><ul><li>1990 = 59.9% </li></ul></ul><ul><ul><li>2008 = 68.3% </li></ul></ul><ul><li>Full time enrollment of Freshman at all time high </li></ul><ul><ul><li>1995 = 76% </li></ul></ul><ul><ul><li>2008 = 82% </li></ul></ul>Confidential
  8. 8. Market List Confidential
  9. 9. Properties <ul><li>Location, Location, Location </li></ul><ul><ul><li>¼ Mile From Campuses </li></ul></ul><ul><ul><li>Functional Obsolescent </li></ul></ul><ul><ul><li>Under Managed </li></ul></ul><ul><li>Redevelopment, Turnaround </li></ul><ul><ul><li>LEED Certified Construction, When Applicable </li></ul></ul><ul><ul><li>High Tech, Modern Amenities </li></ul></ul><ul><ul><li>Hands-On Management Approach </li></ul></ul>Confidential
  10. 10. Property Operation <ul><li>Student housing leased per student, not unit </li></ul><ul><li>Parents guarantee rent payments, damage costs </li></ul><ul><li>Higher yields/rental rates with leased beds </li></ul><ul><li>Quarterly unit inspections, lower capex, decrease legal issues </li></ul>Confidential <ul><li>2 Bedroom Unit (Leased By Unit) </li></ul><ul><li>800 Square Feet </li></ul><ul><li>1 Lease ($850 Per Month) </li></ul><ul><ul><li>$425 Per Student </li></ul></ul><ul><ul><li>$1.06 Per Square Foot </li></ul></ul><ul><li>No individual renter legal recourse </li></ul><ul><li>2 Bedroom Unit (Leased By Bed) </li></ul><ul><li>800 Square Feet </li></ul><ul><li>2 Leases ($1,000 Per Month) </li></ul><ul><ul><li>$500 Per Student </li></ul></ul><ul><ul><li>$1.25 Per Square Foot </li></ul></ul><ul><li>Legal contract with all individuals </li></ul>
  11. 11. Competition <ul><li>Local or Absentee Owners </li></ul><ul><ul><li>Older, Outdated Product </li></ul></ul><ul><ul><li>Lack of Sophistication </li></ul></ul><ul><ul><li>No On-Site Management </li></ul></ul><ul><li>Institutional/Large Scale Owners </li></ul><ul><ul><li>Less Focused On Midwest </li></ul></ul><ul><ul><li>Rawland Development Miles From Campus </li></ul></ul><ul><ul><li>Not LEED Certified </li></ul></ul>Confidential
  12. 12. Why Invest In Athena <ul><li>Alternative Investment Return Expectations Decreasing </li></ul><ul><li>US Treasury Money Supply Rapidly Increasing, Inflation Risk Increasing </li></ul><ul><li>Equity Market Volatility At 30 Year Highs </li></ul><ul><li>Stable Cash Flows, Fundamentally Sound Renter Base </li></ul><ul><li>Real Estate Cycle Bottoming, Favorable Pricing for Equity Buyers </li></ul><ul><li>Own A Piece Of Your University </li></ul>Confidential
  13. 13. Timeline <ul><li>Targeted Fund Closing </li></ul><ul><ul><li>March 31, 2009 </li></ul></ul><ul><li>Property Acquisition / Redevelopment </li></ul><ul><ul><li>Q1 2009 – 2011 </li></ul></ul><ul><li>Property Operations / Cash Flow </li></ul><ul><ul><li>2010+ </li></ul></ul><ul><li>Investor Payout </li></ul><ul><ul><li>2013 </li></ul></ul>Confidential