Strategy & Plan

Why AlphaX RE PIE FUND Portfolio I

All in house

Data-Driven Investing
Using Proprietary Market
Insights

High liquidity

A Strategy Built for a
Shifting Market

Risk adjusted return

Investment Decisions
Influenced by Social and
Demographic Trends

How we manage our properties

Objective

Primary objective of generating capital appreciation with a secondary objective of generating income by investing in direct value-add and opportunistic equity investments in private commercial real estate strategies
Target projects with attractive risk-adjusted returns spread across a range of sponsors, asset types, and major cities to reduce portfolio risk.

Term

Targeted liquidation 5-7 years after Initial Closing with each project term anticipated to be ~3-5 years
As each project cycles and distributes to the Fund, the Fund in turn distributes proceeds to investors
As a closed-ended fund, the fund will continue until all projects have completed their life cycles

Competitive Advantages

An experienced team of industry experts will hand-select each investment opportunity from the significant volume submitted to Pie Properties Inc., parent of the Investment Advisor, through a review and voting process
Investing decisions will be driven by Pie Properties’ extensive proprietary data, which provides real-time insights into market trends and enables timely identification of attractive investment opportunities
Capitalizing on Pie properties‘ extensive sponsor network and high-volume of deal flow, the Investment Manager will have the capability to select what it believes to be great opportunities in attractive sectors and markets to construct the Fund’s portfolio. Given the range of sponsor expertise, the Investment Manager will also be able to pivot in order to take advantage of new opportunities in a shifting market environment

Fund Allocation

Fund Ratio Breakdown

The Project Timeline

The Investment Manager seeks to identify and allocate the Fund’s assets to high quality investments by leveraging the resources and advantages provided by Pie Properties’s platform and related services to help achieve its investment objectives.

Phase 1: Buy

Purchase Price: $100,000
Market Value: $150,000

All investment opportunities undergo a rigorous screening and review process by Pie Properties’ Investments Team.

Phase 2: Rehab

Cash in: $42,000

All investment opportunities undergo a rigorous screening and review process by Pie Properties’ Investments Team.

Phase 3: Rent

Rent Gross: $1,800

All investment opportunities undergo a rigorous screening and review process by Pie Properties’ Investments Team.

Phase 4: Refinance

Appraised Value: $250,000
Cash Out: $ 40,000

All investment opportunities undergo a rigorous screening and review process by Pie Properties’ Investments Team.

The Project Process

Step 1: Sponsor and Asset Due Diligence

All investment opportunities undergo a rigorous screening and review process by Pie Properties’ Investments Team. Approval requires due diligence including, but not limited to, Sponsor executive team background checks, track record review, review of asset financials, business plans, partnership agreements, loan agreements, title reports, and more, as applicable.

Step 2: CIO Deal Approval

Investment Team Pods, groups that specialize in their respective commercial real estate sectors and geographies, conduct detailed reviews and analyses, presenting each investment in a multi-stage approval process that culminates in final approval by the Chief Investment Officer (CIO).

Step 3: 2nd Approval Review

The Investment Manager’s dedicated team of over 15 professionals, along with the five senior professionals of the Pie Properties Funds Investment Committee, conduct a separate evaluation of all potential investments approved by the CIO. All investment and allocation decisions are made via a secondary review and vote by the Pie Properties Funds Investment Committee.

Strategy & Plan

Return Metrics

Projected ROI

39%

Annual Return

8.0%

Target IRR

15-18%

Total Purchase Price

$9,300,000

Funded Loan Numbers

$12,990,000

Estimated Sale/Rent Price

$28,800,000

Estimated Net Profit

$6,840,000

How to Minimize Risks

Diversified Fund to
Mitigate the Risk
&
Boost Your Growth

With Entitlement
&
Permitting Secured

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