Oaktree Real Estate Opportunities Fund VII, L.P.
Purchases
OAKTREE REAL ESTATE OPPORTUNITIES FUND VII, L.P.
Appendix II: Evolution of Six Areas of Focus (Commercial)
Liquidations and
Refinancings
($ in millions)
$1,200
1,000
800
600
400
200
0
(200)
(400)
(600)
(800)
HYPER-
LIQUIDITY
2006 2007
GLOBAL FINANCIAL
CRISIS
2008 2009 2010
+
Aggressive Seller
Private
Market
Frozen
2011
2012
RECOVERY
2013
Rescue Capital
Distress for Control
2014
+
2015
Opportunistic
SAMPLE DEAL: BASCOM PLATFORM
Investment date: June 24, 2014
ROF VI investment: $77 million
ā
Confidential
INVESTMENT PROFILE
A joint venture with The Bascom Group to acquire distressed and
mismanaged properties that are underperforming their respective submarkets
due to a lack of recent renovations, deferred maintenance issues, distressed
ownership or poor management
ā
The portfolio consists of seven properties totaling 2,500 apartments
throughout the United States in markets such as Corona, California;
Henderson, Nevada; Tallahassee, Florida; Glendale, Arizona; and Atlanta,
Georgia
INVESTMENT THESIS
The total purchase price of $194.0 million represents an average discount
from replacement cost of 30%
Through active asset management and injecting new capital to fund
renovations, the portfolio's net operating income is trending higher than our
budget, with all properties performing at or above our business plan
Bascom is a very reputable Orange County-based real estate investment firm
that invests exclusively in value-add multifamily properties, having acquired
approximately 240 multifamily projects totaling over 65,000 units and nearly
$9 billion in transaction value since its founding in 1996
(1,000)
As of June 30, 2015
Note: Reflects purchase and liquidation/refinancing activity for vehicles in the Real Estate Opportunities, Real Estate Debt and Distressed Debt strategies, as well as other certain Oaktree-managed funds and
accounts. Capital deployed includes $3.4 billion of equity for investments in Real Estate team-led transactions across all Oaktree-managed funds. Realizations include $1.9 billion of liquidations and
an additional $771 million of refinancing proceeds.
This investment highlight represents the largest investment within the Commercial area of focus within the Oaktree Real Estate Opportunities Fund VI, L.P. See "Legal Information and Marketing
Disclosures" section of the Appendix for important information regarding case studies.
34View entire presentation