Gateway Garage Partners — Reg A Offering (November 2020)
42 slides from Gateway Garage Partners's offering presentation, Nov 20, 2020
Slide 1: Gateway Garage Testing-the-Waters Presentation
181 High Street Portland, Maine PAGE 1 GATEWAY GARAGE 181 High Street, Portland, Maine TESTING - THE - WATERS PRESENTATION December 2020 Anticipated Initial Property Offering Date November 2020 EXHIBIT NO. 13.1 4,000 Maximum Units Offered To Public $250 Expected Price Per Unit Reg A+ Planned Offerin
Slide 2: Important Disclosure Information
181 High Street Portland, Maine PAGE 2 IMPORTANT DISCLOSURE INFORMATION THIS PRESENTATION CONSTITUTES “TESTING THE WATERS” COMMUNICATION. Gateway Garage Partners, LLC (the “Company”) intends to sponsor a commercial real estate offering pursuant to Regulation A of th e Securities Act of 1933 (the “Se
Slide 3: Relevant Securities Rules
181 High Street Portland, Maine PAGE 3 This offering will be made pursuant to Tier 2 of Regulation A (“Reg A+”), as amended by the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) . Reg A+ is an exemption from the registration requirements under the Securities Act of 1933 (the “Securities Ac
Slide 4: LEX Markets: The Commercial Real Estate Securities Marketplace
181 High Street Portland, Maine PAGE 4 The Commercial Real Estate Securities Marketplace LEX MARKETS Connecting commercial real estate owners with investors Expanding investment opportunities in single asset real estate securities Providing a proprietary trading platform to create a liquid marketpla
Slide 5: Table of Contents
181 High Street Portland, Maine PAGE 5 TABLE OF CONTENTS OVERVIEW 6 PROPERTY SUMMARY 9 MANAGEMENT 14 OPERATING STRATEGY 19 MAJOR LEASED SPACES 23 MARKET ANALYSIS 27 FINANCIAL SUMMARY 34 APPENDIX 39
Slide 6: Overview
181 High Street Portland, Maine PAGE 6 OVERVIEW
Slide 7: Executive Summary
181 High Street Portland, Maine PAGE 7 EXECUTIVE SUMMARY Projected Gross Cash Yields 1 2021 6.2% 2022 5.7% 2023 6.7% 2024 7.8% 2025 8.9% OVERVIEW ● Above - ground parking garage ● Located in the Arts District of Portland, Maine ● Constructed in 1987 ● Five stories with approximately 600 parking spac
Slide 8: Gateway Parking Garage fundamentals and demand drivers
181 High Street Portland, Maine PAGE 8 Gateway Parking Garage is well - located with strong underlying fundamentals, exceptional management, and diversified local driver s providing an opportunity to maximize revenue while controlling costs. The Property is located in Portland’s vibrant Downtown Art
Slide 9: Property Summary
181 High Street Portland, Maine PAGE 9 PROPERTY SUMMARY
Slide 10: Property Data
181 High Street Portland, Maine PAGE 10 Property Data Name Gateway Parking Garage Address 181 High Street Portland, Maine 04101 County Cumberland Property type Parking Garage Tax ID 037 E0006 - 009 Land area 1.50 acres; 69,798 sf Gross building area 208,375 sf Floor area ratio (GBA/land area) 2.99 N
Slide 11: Accessible and Secure Property
181 High Street Portland, Maine PAGE 11 The Property is open 24 hours a day, seven days a week and 52 weeks a year . There are multiple security cameras on - site, and multiple daily live patrols are conducted by a third - party security vendor. ACCESSIBLE AND SECURE Building Improvements Site Impro
Slide 12: Located in Dense Urban Area
181 High Street Portland, Maine PAGE 12 LOCATED IN DENSE URBAN AREA STREET VIEW PROPERTY SUMMARY AERIAL VIEW
Slide 13: Arts District neighborhood amenities
181 High Street Portland, Maine PAGE 13 Arts & Culture 1 Maine College of Art 2 Children's Museum & Theatre of Maine 3 Theater for Kids at Portland Stage 4 Salt Institute - Documentary 5 Portland Museum of Art 6 State Theatre 7 Congress Square Park 8 Cross Insurance Arena 9 Maine Historical Society
Slide 14: Management
181 High Street Portland, Maine PAGE 14 MANAGEMENT
Slide 15: Organizational Chart
181 High Street Portland, Maine PAGE 15 1 The organizational chart, and all projected numbers, yields, and forward - looking statements assume the maximum offering amount is reached. 2 The proportionate share of the profits and losses is derived from the concluded Property value. The breakdown of th
Slide 16: Noyack, the Manager
181 High Street Portland, Maine PAGE 16 Noyack is a leading alternative real estate investment and operating company. Noyack operates nationally in the acquisition, development, financing, leasing and management of structured parking facilities, healthcare, food - handling warehouses, and entertainm
Slide 17: Mr. Follini biography
181 High Street Portland, Maine PAGE 17 Mr. Follini has more than 30 years of experience in the acquisition, development, and management of professional real estate across numerous asset classes. These include: healthcare facilities, medical office space, urban parking, media infrastructure, industr
Slide 18: SP Plus: Nationwide Leader in Parking Management
181 High Street Portland, Maine PAGE 18 ● Real - time pricing modifications based on demand ● Prices increase during times when the garage is near capacity ● Off - peak hours discounts maximizes revenue Dynamic Pricing ● Automated workforce scheduling minimizing labor costs ● Purchasing through vend
Slide 19: Operating Strategy
181 High Street Portland, Maine PAGE 19 OPERATING STRATEGY
Slide 20: Operating strategy and license overbooking
181 High Street Portland, Maine PAGE 20 1 The numbers used are not Property - specific and are only for explanatory purposes of how SP Plus manages the Property on a day - to - day basis. 2 A more detailed breakdown of the lease agreements is explained and available to investors in the Offering Circ
Slide 21: New corporate leases and monthly licenses in 2021
181 High Street Portland, Maine PAGE 21 OPCO INTENDS TO SIGN NEW CORPORATE LEASE AGREEMENTS OR OFFER ADDITIONAL MONTHLY LICENSES IN 2021 ● Per the lease agreement with Maine Medical Center (“MMC”), the company has the right to reduce its number of spaces guarantee d t o 300 starting in February 2021
Slide 22: Façade replacements and long-term outlook
181 High Street Portland, Maine PAGE 22 OPCO PLANS TO FINISH FAÇADE REPLACEMENTS OpCo has recently started work to replace the brick façade of the Property with metal sidings. The remaining sides of the Property are expected to be completed in early 2021. Approximately $300,000 of planned capital ex
Slide 23: Major Leased Spaces
181 High Street Portland, Maine PAGE 23 MAJOR LEASED SPACES
Slide 24: Maine Medical Center license agreement
181 High Street Portland, Maine PAGE 24 Awards & Recognition 2 1 Source: “We Are MMC.” About Us | Maine Medical Center | Portland, ME , Maine Medical Center, mainehealth.org/maine - medical - center/about. 2 Source: “MMC Awards Recognition.” Maine Medical Center | Portland, ME, MMC, mainehealth.org/
Slide 25: The Westin Portland Harborview
181 High Street Portland, Maine PAGE 25 The current parking agreement between OpCo and the Eastland Park Hotel was entered into on April 19, 2011 and expires on March 31, 2061. Long - Term Parking Agreement Designed by local architect Herbert Rhodes, The Eastland Hotel, now the Westin, celebrated it
Slide 26: The Via Agency
181 High Street Portland, Maine PAGE 26 Via Is One Of The Largest Independent Advertising Agencies In The Country. The firm is a mainstay in the advertising landscape for the past 25 years with clients that include major consumer products companies such as Samsung, L.L. Bean, Arm & Hammer, Klondike,
Slide 27: Market Analysis
181 High Street Portland, Maine PAGE 27 MARKET ANALYSIS
Slide 28: Portland Market Accolades
181 High Street Portland, Maine PAGE 28 1 Source: “Awards & Recognition .” Portland Downtown, 20 June 2017, portlandmaine.com/explore - downtown/awards - recognition 2 Source: “https://www.visittheusa.com/destination/portland - maine” PORTLAND MARKET ACCOLADES 1 MARKET ANALYSIS 2
Slide 29: Demographics and Diversified Economy
181 High Street Portland, Maine PAGE 29 1 Source: US Census Bureau, Census 2010 Summary. Esri forecasts for 2019 - 2024, Esri, 2020, doc.arcgis.com/en/esri - demographics/dat a/. 2 Source: Rector, Amanda, and Angela Hallowell. Maine Economic Indicators. Office of the State Economist, Sept. 2020, www
Slide 30: Stability in Downtown Portland Office Market
181 High Street Portland, Maine PAGE 30 Stability in Downtown Portland Office Market Maine has been a stable market, insulated from the volatility experienced in the wider national market. Recent years have bro ugh t re - urbanization and transformation to the downtown Portland landscape. The Proper
Slide 31: Portland downtown parking market
181 High Street Portland, Maine PAGE 31 The market for parking in the downtown submarket has kept pace with the strengthening office and medical markets. Per the market survey conducted by the City of Portland in September 2020, there are 16 parking garages in the downtown submarket comprising 7,623
Slide 32: Parking Garage Market Map
181 High Street Portland, Maine PAGE 32 The competitive landscape includes facilities in the immediate neighborhood of Gateway Garage as well as others scattered thr oug hout Portland’s downtown whose location, amenities, and user base parallels that of the subject. PARKING GARAGE MARKET MAP VIEW MA
Slide 33: COVID-19 impact and long-term leases
181 High Street Portland, Maine PAGE 33 1 Source: COVID - 19 Outbreak: Impact on CRE, REIS.com/covid - 19. October 2020. 2 Source: Maine Office of the State Economist, Economic Indicator September 2020. Lasting Impact Of Workplace Changes Workplace changes such as working from home may continue beyo
Slide 34: Financial Summary
181 High Street Portland, Maine PAGE 34 FINANCIAL SUMMARY
Slide 35: General Assumptions
181 High Street Portland, Maine PAGE 35 General Assumptions Closing Date (Anticipated) December 2020 Property NOI Unaudited non - GAAP financial measurement 1 OpCo Net Income (Loss) Unaudited non - GAAP financial measurement 1 Debt Payments Includes approximate principal and interest expenses as exp
Slide 36: Historical Operating Performance
181 High Street Portland, Maine PAGE 36 1 OpCo uses Property NOI as a key performance indicator in evaluating operations. Given the nature of its business as a real es tat e owner, OpCo considers this measurement as a key supplemental measurement of its operating performance that is not specifically
Slide 37: Five-Year Pro Forma Financial Summary
181 High Street Portland, Maine PAGE 37 1 Gross Cash Yield is a non - GAAP financial measurement used to project estimated proceeds distributed to the Company before fees. Gross Cash Yield is calculated by taking the OpCo Net Income multiplied by the percent equity interest of the Company before fee
Slide 38: Offering Expenses and Company Fees
181 High Street Portland, Maine PAGE 38 The Company will receive 100% of the proceeds from this offering. LEX Markets has agreed to pay the expenses of this offering, other than the placement fee. As a result, this is a “no load” offering, and the investors will not be required to pay any organizati
Slide 39: Appendix
181 High Street Portland, Maine PAGE 39 APPENDIX
Slide 40: LEX Markets: Structure, Service, Placement
181 High Street Portland, Maine PAGE 40 The Commercial Real Estate Securities Marketplace LEX MARKETS Solving for today’s liquidity challenges and limited investment opportunities by offering publicly tradable single - asset securities Structure Service Placement The LEX investment banking team work
Slide 41: Property Valuation
181 High Street Portland, Maine PAGE 41 PROPERTY VALUATION The OpCo Manager has determined that the value of the Property is $24.0M (Property Valuation). The OpCo Manager is basing the Pr operty Valuation on an independent third - party appraisal prepared by Archstone Group that valued the Property
Slide 42: Formulas Used Above
181 High Street Portland, Maine PAGE 42 FORMULAS USED ABOVE Equity Value The proposed offering amount is determined based on the implied equity value (Equity Value) of the real estate asset. This am oun t is calculated as follows: Property Valuation – Principal Debt = Equity Value The Property Valua
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