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Home My WebLink About2012 02 14 Other - Document entitled, "U.S. Real Estate Investment Fund, LLC - Related to Agenda Item '602'Firm Overview 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Firm Overview 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net The Firm's History 1960s Established in 1959 with a primary focus on general contracting and engineering. Founder Petros A. Palandjian undertook large -scale public -bid construction projects that ranged from road construction, airports and hotels to churches, libraries and elderly and college housing projects. 1970s Evolved from a large -scale construction company to a regional real estate development firm with the competitive advantage of superior in -house construction capability. In this era, Intercontinental solidified its position as one of the region's premier construction companies, while embarking on an investment program that focused on complex development and value -added real estate opportunities. 1980s Vertically integrated into asset management, construction management, property management, finance, brokerage and consulting services. On its foundation of construction and development expertise, Intercontinental undertook projects for its own portfolio and for third party investors. Applied value -added skills to a diverse range of property types; office, residential, hotel and resort, industrial, leisure/ entertainment, retail and mixed -use properties. 1990s- Present Intercontinental's core business is private equity real estate investment management and advisory services. SEC Registered Investment Adviser Developed, built, managed and owned more than $6 Billion of commercial real estate Offices in Boston, Chicago and Los Angeles (79 employees) Qualified Professional Asset Manager (QPAM) $2.3 Billion in Assets Under Management 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 2 Executive Committee Peter Palandjian Chairman & ChiefExecutive Officer Investment Committee Member Peter Palandjian oversees Intercontinental's affiliated operating companies, with primary responsibility for Investment Strategy and Institutional Relationships. Mr. Palandjian earned his B.A. from Harvard College and his MBA from the Harvard Business School. Paul J. Nasser Chief Financial Officer & Chief Operating Officer Investment Committee Member Paul J. Nasser manages the firm's resources across investment and operating disciplines. As CFO and COO, he oversees Accounting, Finance, Investor Relations, Performance Reporting, Marketing, Human Resources and Administration. Mr. Nasser received his B.A. in Urban Planning from the University of Rhode Island and his MBA from Suffolk University. Thomas Taranto Director of Acquisitions, Asset and Portfolio Management Investment Committee Member Tom Taranto manages and directs all aspects of Intercontinental's acquisitions, asset and portfolio management business. He also directs Intercontinental's disposition program and oversees the property management division. Mr. Taranto received his B.S. in Business Management from Bentley College. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Key Professionals Devin Sullivan Director, Institutional Services Devin Sullivan is responsible for developing and servicing Intercontinental's client and consultant relationships with a primary focus on the Public Fund sector. B.A. in Government from Hamilton College. Joanna Keller Director, Institutional Services Joanna is responsible for developing and servicing Intercontinental's client and consultant relationships with a primary focus on the West Coast. B.A. in Communication from New York University. Thomas Mitchell Senior Officer, Institutional Services Thomas Mitchell is responsible for consultant relations and client service and is Intercontinental's main contact for the investment consultant community. B.A. in Communication from Purdue University. Series 7 and 66 securities licenses with FINRA. Nick McParland Director, Institutional Services Nick McParland is responsible for establishing and maintaining Intercontinental's client and consultant relationships with a primary focus on the Taft - Hartley sector. B.A. in Economics from St. Lawrence University. Peter Hapgood Director, Institutional Services Peter Hapgood is responsible for establishing and maintaining Intercontinental's client and consultant relations with a primary focus on the public fund sector in Florida. Mr. Hapgood earned his B.A. in Public Administration from Nichols College and his M.A. from American International College. Bart Weinstein Ofcer, Institutional Services Bart Weinstein is responsible for working with institutional clients and investment consultants. Mr. Weinstein performs financial analysis, research and due diligence on all funds. B.A. from Cornell University. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Key Professionals David Carella Director of Finance Investment Committee Member Dave Carella is responsible for producing financial statements for fund reporting, computing real estate investment fund returns, maintaining development budgets, preparing year -end work papers for third party audits and tax returns. B.S. in Accounting from Bridgewater State College. Steve Centrella Senior Director, Acquisitions Investment Committee Member Mr. Centrella is responsible for the analysis of private real estate investments. His primary responsibilities center on yield driven assets and managing both the Acquisitions and Research & Analysis personnel and functions. B.S. from Lake Forest College. Jessica Levin Director, Acquisitions Jessica Levin works in Intercontinental's West Coast Office located in Los Angeles. Ms. Levin is responsible for evaluating acquisition opportunities for Intercontinental sponsored funds with a primary focus on Western United States. B.A .from the University of Wisconsin - Madison. Judy Chien Fund Controller Judy Chien is the Controller for Intercontinental's U.S. Real Estate Investment Fund, LLC. She produces financial statements for fund reporting, oversees external audit services, and implements and maintains proper internal controls. B.B.A. in Accounting from University of Georgia. Christopher Boehm Director of Research & Chief Comphance Officer Christopher Boehm responsible for financial analysis, research and due diligence and Intercontinental's compliance with the Investment Advisers Act of 1940 and all related SEC regulations. B.A. from Northwestern University and an MBA in Real Estate and Entrepreneurship from Indiana University. Michael Keyes Directov, Acquisitions Investment Committee Member Michael Keyes is responsible for evaluating acquisition opportunities for Intercontinental sponsored funds. In this role, he is responsible for opportunity identification and transaction execution. B.A. Brown University, M.B.A. from the Tuck School at Dartmouth College. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Institutional Clients (Partial List) ■ 8a' District Electrical (CO) ■ ALA - Lithographic Industry (NY) ■ Ann Arbor Employees' (MI) ■ Barnstable County Ret. Sys. (MA) ■ Beltin Corporation (C.R.) ■ Boston Plasterers & Cement Masons Local ■ #534 (MA) ■ City of Boynton Beach Fire (FL) ■ City of Bradenton Fire (FL) ■ City of Lakeworth General (FL) ■ Brockton Contributory (MA) ■ BCIP Associates II (MA) ■ Carpenters of Illinois (IL) ■ Catholic Foreign Mission Society (NY) Chicago District Counsel of Laborers (IL) ■ Construction Industry Laborers (KS) ■ Deerfield Beach Fire (FL) ■ Deerfield Beach Police (FL) ■ East Lake Tarpon Fire (FL) Flint Employees (MI) Flint Plumbing & Piping Industry (MI) Fort Worth Employees (TX) Garden City Employees (MI) Hampshire County Ret. Sys. (MA) Haverhill Ret. Sys. (MA) Hialeah Police (FL) Hollywood Fire (FL) Holyoke Contributory (MA) Hospital and Healthcare Employees (PA) Howard University (DC) IBEW Local #25 (NY) IBEW Local #99 (RI) IBEW Local #103 (MA) IFEBP (WI) Indian River State College (FL) Inter -Local GCIU (IL) Iron Workers' Mid- America (IL) ■ Iron Workers of New England (MA) ■ Iron Workers St. Louis District Counsel (MO) ■ I.U.O.E. Eastern PA and DE (PA) ■ Kissimmee General (FL) ■ Lakeland Police (FL) ■ Lowell Ret. Sys. (MA) ■ Macomb County Employees (MI) ■ Mass. Bay Transportation Authority (MA) ■ Massachusetts Laborers (MA) ■ The Meijer Foundation (MI) ■ Middlesex Ret. Sys. (MA) ■ Minneapolis Retail Meat Cutters & Food ■ Handlers (MN) ■ Miramar Police (FL) ■ Town of Natick Contributory (MA) ■ National Elevator Industry (PA) ■ NECA -IBEW (IL) N.E. Teamsters & Trucking Industry (MA) New England Carpenters (MA) New Haven Police & Fire (CT) New Jersey Carpenters (NJ) New Orleans Firefighters (LA) New York Carpenters (NY) Norfolk County Ret. Sys. (MA) North Miami Retirement (FL) North Naples Fire (FL) Omaha Construction Industry (NE) Oregon Sheet Metal Workers (OR) Outstate Michigan Trowel Trades (MI) 0 Painters Local #35 (MA) 0 Palm Beach Gardens Fire (FL) 0 Pipefitters Local #537 (MA) Plumbers Local #12 (MA) Plumbers & Pipefitters Local #138 (NY) 0 Plymouth County Retirement System (MA) Plymouth Contributory Ret. Sys. (MA) PRIT Core Realty Holdings (MA) Public School Teachers of Chicago (IL) Punta Gorda Fire (FL) San Antonio Police & Fire (TX) South Walton Fire (FL) St. Augustine General (FL) St. Augustine Police (FL) St. Cloud General, Police & Fire (FL) St. Lucie County Fire (FL) St. Lucie County General (FL) Sterling Heights Police & Fire (MI) Taunton Contributory (MA) Taylor Police & Fire (MI) TDT Capital, Inc (MA) Teamsters Local #237 (NY) Teamsters Local #653 (MA) Teamsters Local #705 (IL) Teamsters Local #710 (IL) Temple Terrance Police & Fire (FL) Transit Employees (DC) Titusville General (FL) Titusville Police & Fire (FL) United Brotherhood of Carpenters (DC) Utility Board of the City of Key West (FL) Vero Beach Fire (FL) Waterford Township Police & Fire (MI) West Virginia Laborers (WV) West Palm Beach Police (FL) Westland Police & Fire (MI) Weymouth Ret. Brd. (MA) Wichita Falls Firemen (TX) Winter Springs General (FL) Woburn Retirement System (MA) Westland Police & Fire (MI) Worcester Retirement System (MA) 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 6 Advisory Board ■ William W. Bain, Jr. is the founder of Bain & Company, a world -wide consulting firm; the extraordinarily successful Bain Capital, a venture capital firm; and Bain, Willard Companies, a private equity firm. ■ Warren A. Henderson is the founder and CEO of Mosaic, a global equity investment advisory firm. Mr. Henderson is a former principal and head of Public Fund Services at State Street Global Advisors. ■ Thomas P. O'Neill, III is the Chairman of O'Neill & Associates, a large government relations and public affairs firm. Mr. O'Neill is the former Lieutenant Governor of Massachusetts and a member of the Board of Trustees of Boston College. ■ Ira Stepanian is the former chairman and chief executive officer of Bank of Boston Corporation and its principal subsidiary, the First National Bank of Boston, as well as a member of the Board of Trustees of Tufts University, The Museum of Science and The Massachusetts General Hospital. ■ Joseph Nolan is a Senior Vice President for NSTAR. Mr. Nolan serves on the boards of directors of the New England Council and the Massachusetts State Archives Commission. He also serves on the board of overseers at Children's Hospital and is also active in the communications and government relations committees of the Edison Electric Institute and the American Gas Association. ■ Peter Aylward is the founder of Strategic Property Advisers, Inc., an independent, registered investment advisory firm that provides real estate asset management services and financial investment advisory services to institutional clients (including 16 Taft - Hartley and Union related plans). ■ Paul Donahue is a Managing Director for Centerline Capital Group, leading the Multifamily Capital Markets team in Boston. Including his prior roles as Senior Vice President at CB Richard Ellis, Managing Director at Holiday Fenoglio Fowler and The Berkshire Group, Mr. Donahue has over 25 years of experience selling, financing and buying multifamily properties in every major market throughout the country. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 7 U.S. Real Estate Investment Fund, LLC (US REIF) 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net US REIF: Fund Summary Structure: ■ Delaware, limited liability company ■ Open -ended commingled investment vehicle Strategy: 0 Multi- disciplinary investment strategy targeting an average annual cash yield of 6 -8% and a total return of 10% • Foundation of "yield driven" property assets • North America — all major U.S. markets • All property types (office, multi - family, industrial, retail, etc.) Key Criteria: 0 Liquidity — redemption available on a quarterly basis ■ Portfolio leverage target of 50% ■ 25% of Fund's assets appraised each quarter (independent appraisal by Altus Group) ■ Debt is marked to market (Derivative Advisors, LLC) ■ No lock -out period Current Status: 0 Capital commitments (signed & unsigned): $639 million ■ Capital invested: $623 million ■ Undrawn capital (voted & unsigned): $16 million ■ 93 Investors ■ Investment by IREC employees ■ 30 Acquisitions to date Winter Springs General 0 Commitment: $ 1,300,000 Employees Investment: 0 Capital Called: $ 1,300,000 on 10/12/10 ■ Distributions Reinvested: $ 37,562 ■ Net Asset Value: $ 1,545,832 (As of 12/31/11) Winter Springs General LQ 11 Since Inception Employees Performance: Income: 1.03% 5.50% Appreciation: 3.33% 10.16% Total Return: 4.36% 16.08% 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 9 US REIF: Debt Summary Top US REIF Lenders Sovereigri embank. Bank of America - HSBC 1.► AA Citizens Bank Ca,pit Bank In Bank America's MA t Conren ienl Bank 0 MassMutual F N A P1 I AL 6 F 0 U V Debt Maturity Schedule Year Total % Maturing 2012 18.35%(') 2013 11.48%( (1) 52% of which has extension options; (2) 30% of which has extension options. Weighted Average Cost of Debt 5.6% Weighted Average Cost of Fixed -Rate Debt 5.7% Weighted Average Cost of Floating -Rate Debt 3.7% 99% of all debt in U.S. REIF is fixed rate; PRELIM Leverage as of 12/31/11: 52.7% 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 10 US REIF: Portfolio Research Lease Expiration Schedule Year Total % ExpiringTf) 2012 12.7% 2013 11.5% Note: Multi family, Assisted Living, Hotel, and Operating Center assets are not included in the above figures. The above percentages are weighted by market value. Weighted Average Portfolio Occupancy Property Ty % Occupied Office 82.2% Healthcare 100.0% Retail 86.5% Industrial 91.9% Multi - Family 96.4% Student Housing 98.7% Senior Living 88.0% Total 88.6% Note: The above percentages are weighted by market value. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 11 US REIF: Fund Performance 4Q11 US REIF NCREIF Income 2Q1 1 US REIF 1.66% ODCE Appreciation- RE 3.38% Income 1.03% 1.32% Appreciation - RE N/A 3.69% N/A Appreciation- Debt 3.23% -0.40% N/A Appreciation- Total 4.62% 3.29% 1.64% Total 4.31% 2.97% Income 2Q1 1 US REIF 1.66% NCREIF ODCE 1.37% Appreciation- RE 3.38% N/A Appreciation- Debt -1.86% N/A Appreciation- Total 1.52% 3.23% Total Total 3.18% 4.62% 3Q1 1 US REIF NCREIF 1Q11 ODCE 1.31% N/A Income 1.26% Appreciation- RE 2.47% Appreciation- Debt -0.61% N/A Appreciation- Total Total 1.86% 3.12% 2.20% 3.52% 1Q11 US REIF NCREIF ODCE Income 1.37% 1.37% Appreciation- RE 1.86% N/A Appreciation- Debt 1.17% N/A Appreciation- Total 3.03% 2.63% Total 4.40% 4.01% US REIF returns are leveraged gross of fees. The above returns are calculated at the Fund level and may not be reflective of the actual performance returns experienced by anyone investor. Past performance is not a guarantee of future results and it is important to understand that investments of the type made by the Fund pose the potential for loss of capital over anytime period. According to the Fund's valuation policy, prior to its first appraisal, all acquired investments will be valued at cost plus capital expenditures and will join the annual valuation cycle following the first anniversary of the acquisition date. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 r , Tel: 617.782.2600 Fax: 617.782.9442 CORP REAL L STATE ORATTON www.intercontinental.net 12 The Firm's History 1960s Established in 1959 with a primary focus on general contracting and engineering. Founder Petros A. Palandjian undertook large -scale public -bid construction projects that ranged from road construction, airports and hotels to churches, libraries and elderly and college housing projects. 1970s Evolved from a large -scale construction company to a regional real estate development firm with the competitive advantage of superior in -house construction capability. In this era, Intercontinental solidified its position as one of the region's premier construction companies, while embarking on an investment program that focused on complex development and value -added real estate opportunities. 1980s Vertically integrated into asset management, construction management, property management, finance, brokerage and consulting services. On its foundation of construction and development expertise, Intercontinental undertook projects for its own portfolio and for third party investors. Applied value -added skills to a diverse range of property types; office, residential, hotel and resort, industrial, leisure/ entertainment, retail and mixed -use properties. 1990s- Present Intercontinental's core business is private equity real estate investment management and advisory services. SEC Registered Investment Adviser Developed, built, managed and owned more than $6 Billion of commercial real estate Offices in Boston, Chicago and Los Angeles (79 employees) Qualified Professional Asset Manager (QPAM) $2.3 Billion in Assets Under Management 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 2 Executive Committee Peter Palandjian Chairman & ChiefExecutive Officer Investment Committee Member Peter Palandjian oversees Intercontinental's affiliated operating companies, with primary responsibility for Investment Strategy and Institutional Relationships. Mr. Palandjian earned his B.A. from Harvard College and his MBA from the Harvard Business School. Paul J. Nasser Chief Financial Officer & Chief Operating Officer Investment Committee Member Paul J. Nasser manages the firm's resources across investment and operating disciplines. As CFO and COO, he oversees Accounting, Finance, Investor Relations, Performance Reporting, Marketing, Human Resources and Administration. Mr. Nasser received his B.A. in Urban Planning from the University of Rhode Island and his MBA from Suffolk University. Thomas Taranto Director of Acquisitions, Asset and Portfolio Management Investment Committee Member Tom Taranto manages and directs all aspects of Intercontinental's acquisitions, asset and portfolio management business. He also directs Intercontinental's disposition program and oversees the property management division. Mr. Taranto received his B.S. in Business Management from Bentley College. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Key Professionals Devin Sullivan Director, Institutional Services Devin Sullivan is responsible for developing and servicing Intercontinental's client and consultant relationships with a primary focus on the Public Fund sector. B.A. in Government from Hamilton College. Joanna Keller Director, Institutional Services Joanna is responsible for developing and servicing Intercontinental's client and consultant relationships with a primary focus on the West Coast. B.A. in Communication from New York University. Thomas Mitchell Senior Officer, Institutional Services Thomas Mitchell is responsible for consultant relations and client service and is Intercontinental's main contact for the investment consultant community. B.A. in Communication from Purdue University. Series 7 and 66 securities licenses with FINRA. Nick McParland Director, Institutional Services Nick McParland is responsible for establishing and maintaining Intercontinental's client and consultant relationships with a primary focus on the Taft - Hartley sector. B.A. in Economics from St. Lawrence University. Peter Hapgood Director, Institutional Services Peter Hapgood is responsible for establishing and maintaining Intercontinental's client and consultant relations with a primary focus on the public fund sector in Florida. Mr. Hapgood earned his B.A. in Public Administration from Nichols College and his M.A. from American International College. Bart Weinstein Ofcer, Institutional Services Bart Weinstein is responsible for working with institutional clients and investment consultants. Mr. Weinstein performs financial analysis, research and due diligence on all funds. B.A. from Cornell University. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Key Professionals David Carella Director of Finance Investment Committee Member Dave Carella is responsible for producing financial statements for fund reporting, computing real estate investment fund returns, maintaining development budgets, preparing year -end work papers for third party audits and tax returns. B.S. in Accounting from Bridgewater State College. Steve Centrella Senior Director, Acquisitions Investment Committee Member Mr. Centrella is responsible for the analysis of private real estate investments. His primary responsibilities center on yield driven assets and managing both the Acquisitions and Research & Analysis personnel and functions. B.S. from Lake Forest College. Jessica Levin Director, Acquisitions Jessica Levin works in Intercontinental's West Coast Office located in Los Angeles. Ms. Levin is responsible for evaluating acquisition opportunities for Intercontinental sponsored funds with a primary focus on Western United States. B.A .from the University of Wisconsin - Madison. Judy Chien Fund Controller Judy Chien is the Controller for Intercontinental's U.S. Real Estate Investment Fund, LLC. She produces financial statements for fund reporting, oversees external audit services, and implements and maintains proper internal controls. B.B.A. in Accounting from University of Georgia. Christopher Boehm Director of Research & Chief Comphance Officer Christopher Boehm responsible for financial analysis, research and due diligence and Intercontinental's compliance with the Investment Advisers Act of 1940 and all related SEC regulations. B.A. from Northwestern University and an MBA in Real Estate and Entrepreneurship from Indiana University. Michael Keyes Directov, Acquisitions Investment Committee Member Michael Keyes is responsible for evaluating acquisition opportunities for Intercontinental sponsored funds. In this role, he is responsible for opportunity identification and transaction execution. B.A. Brown University, M.B.A. from the Tuck School at Dartmouth College. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net Institutional Clients (Partial List) ■ 8a' District Electrical (CO) ■ ALA - Lithographic Industry (NY) ■ Ann Arbor Employees' (MI) ■ Barnstable County Ret. Sys. (MA) ■ Beltin Corporation (C.R.) ■ Boston Plasterers & Cement Masons Local ■ #534 (MA) ■ City of Boynton Beach Fire (FL) ■ City of Bradenton Fire (FL) ■ City of Lakeworth General (FL) ■ Brockton Contributory (MA) ■ BCIP Associates II (MA) ■ Carpenters of Illinois (IL) ■ Catholic Foreign Mission Society (NY) Chicago District Counsel of Laborers (IL) ■ Construction Industry Laborers (KS) ■ Deerfield Beach Fire (FL) ■ Deerfield Beach Police (FL) ■ East Lake Tarpon Fire (FL) Flint Employees (MI) Flint Plumbing & Piping Industry (MI) Fort Worth Employees (TX) Garden City Employees (MI) Hampshire County Ret. Sys. (MA) Haverhill Ret. Sys. (MA) Hialeah Police (FL) Hollywood Fire (FL) Holyoke Contributory (MA) Hospital and Healthcare Employees (PA) Howard University (DC) IBEW Local #25 (NY) IBEW Local #99 (RI) IBEW Local #103 (MA) IFEBP (WI) Indian River State College (FL) Inter -Local GCIU (IL) Iron Workers' Mid- America (IL) ■ Iron Workers of New England (MA) ■ Iron Workers St. Louis District Counsel (MO) ■ I.U.O.E. Eastern PA and DE (PA) ■ Kissimmee General (FL) ■ Lakeland Police (FL) ■ Lowell Ret. Sys. (MA) ■ Macomb County Employees (MI) ■ Mass. Bay Transportation Authority (MA) ■ Massachusetts Laborers (MA) ■ The Meijer Foundation (MI) ■ Middlesex Ret. Sys. (MA) ■ Minneapolis Retail Meat Cutters & Food ■ Handlers (MN) ■ Miramar Police (FL) ■ Town of Natick Contributory (MA) ■ National Elevator Industry (PA) ■ NECA -IBEW (IL) N.E. Teamsters & Trucking Industry (MA) New England Carpenters (MA) New Haven Police & Fire (CT) New Jersey Carpenters (NJ) New Orleans Firefighters (LA) New York Carpenters (NY) Norfolk County Ret. Sys. (MA) North Miami Retirement (FL) North Naples Fire (FL) Omaha Construction Industry (NE) Oregon Sheet Metal Workers (OR) Outstate Michigan Trowel Trades (MI) 0 Painters Local #35 (MA) 0 Palm Beach Gardens Fire (FL) 0 Pipefitters Local #537 (MA) Plumbers Local #12 (MA) Plumbers & Pipefitters Local #138 (NY) 0 Plymouth County Retirement System (MA) Plymouth Contributory Ret. Sys. (MA) PRIT Core Realty Holdings (MA) Public School Teachers of Chicago (IL) Punta Gorda Fire (FL) San Antonio Police & Fire (TX) South Walton Fire (FL) St. Augustine General (FL) St. Augustine Police (FL) St. Cloud General, Police & Fire (FL) St. Lucie County Fire (FL) St. Lucie County General (FL) Sterling Heights Police & Fire (MI) Taunton Contributory (MA) Taylor Police & Fire (MI) TDT Capital, Inc (MA) Teamsters Local #237 (NY) Teamsters Local #653 (MA) Teamsters Local #705 (IL) Teamsters Local #710 (IL) Temple Terrance Police & Fire (FL) Transit Employees (DC) Titusville General (FL) Titusville Police & Fire (FL) United Brotherhood of Carpenters (DC) Utility Board of the City of Key West (FL) Vero Beach Fire (FL) Waterford Township Police & Fire (MI) West Virginia Laborers (WV) West Palm Beach Police (FL) Westland Police & Fire (MI) Weymouth Ret. Brd. (MA) Wichita Falls Firemen (TX) Winter Springs General (FL) Woburn Retirement System (MA) Westland Police & Fire (MI) Worcester Retirement System (MA) 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 6 Advisory Board ■ William W. Bain, Jr. is the founder of Bain & Company, a world -wide consulting firm; the extraordinarily successful Bain Capital, a venture capital firm; and Bain, Willard Companies, a private equity firm. ■ Warren A. Henderson is the founder and CEO of Mosaic, a global equity investment advisory firm. Mr. Henderson is a former principal and head of Public Fund Services at State Street Global Advisors. ■ Thomas P. O'Neill, III is the Chairman of O'Neill & Associates, a large government relations and public affairs firm. Mr. O'Neill is the former Lieutenant Governor of Massachusetts and a member of the Board of Trustees of Boston College. ■ Ira Stepanian is the former chairman and chief executive officer of Bank of Boston Corporation and its principal subsidiary, the First National Bank of Boston, as well as a member of the Board of Trustees of Tufts University, The Museum of Science and The Massachusetts General Hospital. ■ Joseph Nolan is a Senior Vice President for NSTAR. Mr. Nolan serves on the boards of directors of the New England Council and the Massachusetts State Archives Commission. He also serves on the board of overseers at Children's Hospital and is also active in the communications and government relations committees of the Edison Electric Institute and the American Gas Association. ■ Peter Aylward is the founder of Strategic Property Advisers, Inc., an independent, registered investment advisory firm that provides real estate asset management services and financial investment advisory services to institutional clients (including 16 Taft - Hartley and Union related plans). ■ Paul Donahue is a Managing Director for Centerline Capital Group, leading the Multifamily Capital Markets team in Boston. Including his prior roles as Senior Vice President at CB Richard Ellis, Managing Director at Holiday Fenoglio Fowler and The Berkshire Group, Mr. Donahue has over 25 years of experience selling, financing and buying multifamily properties in every major market throughout the country. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 7 U.S. Real Estate Investment Fund, LLC (US REIF) 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net US REIF: Fund Summary Structure: ■ Delaware, limited liability company ■ Open -ended commingled investment vehicle Strategy: 0 Multi- disciplinary investment strategy targeting an average annual cash yield of 6 -8% and a total return of 10% • Foundation of "yield driven" property assets • North America — all major U.S. markets • All property types (office, multi - family, industrial, retail, etc.) Key Criteria: 0 Liquidity — redemption available on a quarterly basis ■ Portfolio leverage target of 50% ■ 25% of Fund's assets appraised each quarter (independent appraisal by Altus Group) ■ Debt is marked to market (Derivative Advisors, LLC) ■ No lock -out period Current Status: 0 Capital commitments (signed & unsigned): $639 million ■ Capital invested: $623 million ■ Undrawn capital (voted & unsigned): $16 million ■ 93 Investors ■ Investment by IREC employees ■ 30 Acquisitions to date Winter Springs General 0 Commitment: $ 1,300,000 Employees Investment: 0 Capital Called: $ 1,300,000 on 10/12/10 ■ Distributions Reinvested: $ 37,562 ■ Net Asset Value: $ 1,545,832 (As of 12/31/11) Winter Springs General LQ 11 Since Inception Employees Performance: Income: 1.03% 5.50% Appreciation: 3.33% 10.16% Total Return: 4.36% 16.08% 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 9 US REIF: Debt Summary Top US REIF Lenders Sovereigri embank. Bank of America - HSBC 1.► AA Citizens Bank Ca,pit Bank In Bank America's MA t Conren ienl Bank 0 MassMutual F N A P1 I AL 6 F 0 U V Debt Maturity Schedule Year Total % Maturing 2012 18.35%(') 2013 11.48%( (1) 52% of which has extension options; (2) 30% of which has extension options. Weighted Average Cost of Debt 5.6% Weighted Average Cost of Fixed -Rate Debt 5.7% Weighted Average Cost of Floating -Rate Debt 3.7% 99% of all debt in U.S. REIF is fixed rate; PRELIM Leverage as of 12/31/11: 52.7% 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 10 US REIF: Portfolio Research Lease Expiration Schedule Year Total % ExpiringTf) 2012 12.7% 2013 11.5% Note: Multi family, Assisted Living, Hotel, and Operating Center assets are not included in the above figures. The above percentages are weighted by market value. Weighted Average Portfolio Occupancy Property Ty % Occupied Office 82.2% Healthcare 100.0% Retail 86.5% Industrial 91.9% Multi - Family 96.4% Student Housing 98.7% Senior Living 88.0% Total 88.6% Note: The above percentages are weighted by market value. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 11 US REIF: Fund Performance 4Q11 US REIF NCREIF Income 2Q1 1 US REIF 1.66% ODCE Appreciation- RE 3.38% Income 1.03% 1.32% Appreciation - RE N/A 3.69% N/A Appreciation- Debt 3.23% -0.40% N/A Appreciation- Total 4.62% 3.29% 1.64% Total 4.31% 2.97% Income 2Q1 1 US REIF 1.66% NCREIF ODCE 1.37% Appreciation- RE 3.38% N/A Appreciation- Debt -1.86% N/A Appreciation- Total 1.52% 3.23% Total Total 3.18% 4.62% 3Q1 1 US REIF NCREIF 1Q11 ODCE 1.31% N/A Income 1.26% Appreciation- RE 2.47% Appreciation- Debt -0.61% N/A Appreciation- Total Total 1.86% 3.12% 2.20% 3.52% 1Q11 US REIF NCREIF ODCE Income 1.37% 1.37% Appreciation- RE 1.86% N/A Appreciation- Debt 1.17% N/A Appreciation- Total 3.03% 2.63% Total 4.40% 4.01% US REIF returns are leveraged gross of fees. The above returns are calculated at the Fund level and may not be reflective of the actual performance returns experienced by anyone investor. Past performance is not a guarantee of future results and it is important to understand that investments of the type made by the Fund pose the potential for loss of capital over anytime period. According to the Fund's valuation policy, prior to its first appraisal, all acquired investments will be valued at cost plus capital expenditures and will join the annual valuation cycle following the first anniversary of the acquisition date. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 r , Tel: 617.782.2600 Fax: 617.782.9442 CORP REAL L STATE ORATTON www.intercontinental.net 12 US REIF: Fund Performance 1 Year As of 12/31/11) US REIF NCREIF ODCE Income 5.43% 5.48% Inco 2 Year As of 12/31/11 US REIF NCREIF ODCE 6.13% 6.06% Appreciation- RE 11.89% N/A Appreciation - RE 8.53% N/A Appreciation- Debt -1.71% N/A Appreciation- Debt -3.90% N/A Appreciation- Total 10.05% 10.05% Appreciation- Total 4.36% 9.64% Total 15.87% 15.99% Total 10.72% 16.18% 3 Year As of 12/31/11 Since Inception US REIF NCREIF US REIF NCREIF ODCE ODCE Income 6.44% 6.08% Income 5.64% 5.69% Appreciation- RE - 11.61% N/A Appreciation - RE -8.82% N/A Appreciation- Debt -0.83% N/A Appreciation- Debt 0.39% N/A Appreciation- Total - 12.11% -7.49% Appreciation- Total -8.33% -5.67% Total -6.31% -1.77% Total -3.06% -0.24% L US REIF returns are leveraged gross of fees. The above returns are calculated at the Fund level and may not be reflective of the actual performance returns experienced by anyone investor. Past performance is not a guarantee of future results and it is important to understand that investments of the type made by the Fund pose the potential for loss of capital over anytime period. According to the Fund's valuation policy, prior to its first appraisal, all acquired investments will be valued at cost plus capital expenditures and will join the annual valuation cycle following the first anniversary of the acquisition date. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 13 US REIF: Diversification Property Sector Diversification (1,2) US REIF — Gross Real Estate Market Value Office 35.4 Health 6.6` 11.7% Senior Living 9.9% Student Housing 4.6% 4otel 2.0% vial �/o Geographic Diversification (1,2) US REIF — Gross Real Estate Market Value Office 37.6% ODCE Other 2.7% 23.3% ODCE Hotel 2.4% Industrial 16.4% Midwest 9.8% West 23 South 9.6% Midwest 33.4% West 37.5% East 33.9% East 33.3% South 18.8% 1. Calculated using US REIF's proportionate share of gross assets' market value as of quarter end. 2. To provide a more meaningful basis for comparison, property sector and geographic diversification does not include Operating Company investments. 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 INTE Tel: 617.782.2600 Fax: 617.782.9442 REAL LSTATE C ORPORATTO N www.intercontinental.net 14 R or—a I/, n 17.6% 0 325 North Old Woodward 1300 Franklin Ave. Birmingham, MI Garden City, NY Silicon Valley Industrial Portfolio Silicon Valley, CA Lake Forest Village Lake Forest, CA K ��. at Upper Landing Paul, MN International Village Bloomington, MN LL Park Place YONRINB Palatine, IL Cordia Senior Residence Westmont IL Golden Town Center Golden, CO 1 No -qq MEN Santa Barbara Portfolio Santa Barbara, CA W Tucson Tech & Industrial Parker Ranch Center Tucson, AZ Waimea, HI Northpoint Centre Austin, TX Louis Joliet Pointe Joliet, IL Oak Park City Oak Park, IL Central Plaza bridge, MA 1 Somerset Court Parkway Shopping Center Bloomington, IL One Lane Centre Waltham, MA Northbrook, IL Locke Drive Tech Center Marlborough, MA — ' 800 Scudders Ll East Village Place Plainsboro, NJ E. Longmeadow, MA Blue Bell Place Blue Bell, PA _ kEN .. Rose Tree Plac Media, PA :NNESS« Sc ALA6AJA GEORGIA Lakeside Commons Atlanta, GA Marine Lumber Nantucket, MA 400 Capital Boulevard Rocky Hill, CT e Rockland Place Wilmington, DE Virginia Crossings Hotel & Conference Center Glen Allen, VA 4700 Falls Raleigh, NC Capitol Center Columbia, SC Independence Corporate Park Greenville, SC INTERCCINTINENTA REAL ESTATE CORPORATION US REIF: Portfolio Highlights Locke Drive Tech Center, Marlborough, MA Virginia Crossings Hotel Conference Center, Glen Allen, VA Lakeside Commons, Atlanta, GA Size: 517,326 sf Closed: February 21, 2008 Purchase Price: $102,800,000 International Village, Blooynington, MN Closed: August 5, 2008 Purchase Price: $30,100,000 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 16 Type: Office / Flex Size: 295,700 sf Closed: February 1, 2008 Purchase Price: $28,975,000 Type: Office Type: Hotel Size: 183 rooms Closed: May 6, 2008 Purchase Price: $18,000,000 Type: Apartments Size: 353 Units US REIF: Portfolio Highlights Marine Lumber Company, Nantucket, AL4 Lake Forest Village , Lake Forest, CA Capitol Center, Columbia, SC Type: Senior Living Size: 500 units Closed: IL: May 19, 2008; DE, MA, PA: August 26, 2008 Purchase Price: $114,500,000 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 17 Type: Diversified Retail Closed: August 22, 2008 Purchase Price: $43,000,000 Type: Office Size: 460,000 sf Closed: September 3, 2008 Purchase Price: $47,500,000 Bay North Senior Living Portfolio, Type: Retail Size: 119,741 sf Closed: October 20, 2008 Purchase Price: $38,456,000 US REIF: Portfolio Highlights Central Pla .Za , Cambridge, MA Silicon Valley Industrial Portfolio, Silicon Valley, CA Tucson Technolo & Industrial Portfolio, wson, - t.:. J� 5 Independence Corporate Park, Greenville, SC 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 18 Type: Office Size: 166,458 sf Closed: October 30, 2008 Purchase Price: $31,635,000 Type: Industrial Size: 606,027 sf Closed: November 10, 2008 Purchase Price: $46,212,548 Type: Industrial Size: 796,329 sf Closed: November 19, 2008 Purchase Price: $ 67,888,000 Type: Office Size: 296,246 sf Closed: January 22, 2009 Purchase Price: $ 34,846,050 US REIF: Portfolio Highlights Riverview at Up er Landing, St. Paul Closed: March 2, 2009 Acq Exit Cap: 8% Purchase Price: $43,500,000 1 300 Franklin Avenue Garden City, NY Purchase Price: $62,575,000 Santa Barbara Port olio, Santa Barbara, Closed: May 17, 2010 Acq Exit Cap: 7% Purchase Price: $42,500,000 800 Scudders Mill Road, Plainsboro, NJ Total Development Cost: $ 214,700,000 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 19 Type: Apartments Size: 344 units Type: Apartments — Student Housing Size: 151 units Size: 125,495 SF Closed: October 1, 2010 Acq Exit Cap: 6.5% Size: 774, 718 sf Closed: July 18, 2011 Purchase Price: $35,000,000 Additional Inserts 1270 Soldiers Field Road • Boston • Massachusetts • 02135 -1003 Tel: 617.782.2600 Fax: 617.782.9442 www.intercontinental.net 20 US REIF: D ebt Appr Sensitivity Analysis (Quarterly) Interest Rate Basis Point Change 25 50 75 100 125 150 175 200 225 250 275 300 Debt Valuation Change 6,038,498 10,607,667 15,176,835 19,746,003 25,559,309 30,148,527 34,687,055 39,324,361 45,077,321 49,689,147 54,328,133 58,996,572 Fund NAV as of 9/30/11 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 521,547,783 Debt Appreciation 1.16% 2.03% 2.91% 3.79% 4.90% 5.78% 6.65% 7.54% 8.64% 9.53% 10.42% 11.31% The returns above show the effects on debt appreciation as part of total appreciation calculation. For example, if rates were to rise 25 basis points, the total debt appreciation would be 1.16% for a quarter. Total return is calculated by adding income, property appreciation and debt appreciation. The returns above are calculated on the Fund's NAV as of 9/30/11. This analysis does not project in any way the Fund's debt appreciation or total returns. s oao ' m e e me e �m e e e oe �� m om mm Nye e �eeeeev eve ��eeeeeeeeeeee;eeeeeeveM T w - T w moo omm oao 0000m0000m000mo�oomm000000 oao N o egg O b 6-- b N N m O n m omm O V n h m t7 m N m V V m m m m O m m m 7 n m V 1� co y V o � _ _ _ _ O V� O O g o O Q o rn h a �i N V �i n rn 0 ,6 1 Ti w N zg; zg; glA gZ � .6 g 6 g 6 6 Z j Q b 1 . 7 1 N Q O o c o o g tN O N O o W m m o N V N g O N V w N m N O m �l O N N m aa�aaaamm °aa °aaaaaaa�aaaa°aaa eevo8oeeeevevoe aeeevogme eeeveo8o° aS� I Ng - __ U U U o o = O K 0 0 000 0 a' O x .°- = w@ o O- O r le h m 0 0 0 I a a a x 5 =ZZ E m U - 2 o S r U w° > 22 o m - p h U Y m U U U a U a Q o o . 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