Vertex, Inc. · NASDAQ:VERX
Vertex — Pitch Deck (2024)
38 slides from Vertex's pitch deck, 2024
Slide 1: The Vertex Platform: A Rare Opportunity
THE VERTEX PLATFORM A RARE OPPORTUNITY
Slide 2: What Is Vertex?
WHAT IS VERTEX? Vertex is a new investment platform led by experienced office building developers, owners, and operators who have a singular goal — to acquire and transform under-performing commercial properties in New York City into environmentally sustainable, financially successful, modern office
Slide 3: Who Is Vertex?
WHO IS VERTEX? Co-Founders Development Partner Operating Partner Adam Arnow Hamlin Ventures Olmstead Properties Adam has over 20 years of investment and Hamlin Ventures is one of a handful of woman- Founded in 1930, Olmstead Properties development experience, throughout which he owned development co
Slide 4: Proven Track Record Spanning Four Generations
PROVEN TRACK RECORD SPANNING FOUR GENERATIONS The Arnow family has been investing in and developing real estate since the 1930s. The family has developed over 10 million square feet of real estate, including the Grace Building, 1411 Broadway, 7 Hanover Square, 711 Third Avenue, 437 Madison Avenue, a
Slide 5: State of the Market – A Perfect Storm
STATE OF THE MARKET – A PERFECT STORM New York City’s office market is undergoing significant disruption with three main contributing variables: 50% 1. Widespread adoption of hybrid work models leading to reduced demand for office space. 100 2. The sharpest interest rate hikes in four decades. Retur
Slide 6: The Office Is Not Dead
THE OFFICE IS NOT DEAD New York City has gone through numerous real estate cycles. Each time the market weakened the office sector was declared “dead.” And yet, a comeback always follows. Even with 100 million square feet of space available for lease, there are still 400 million square feet of offic
Slide 7: But This Time It's Different...
BUT THIS TIME IT’S DIFFERENT... The Status Quo is Dead The wide-scale adoption of “hybrid work from home” has fundamentally changed the way that companies use their offices and has particularly reduced demand for “commodity” office space across all sectors. Employers are struggling to get their empl
Slide 8: A Flight to Quality
A FLIGHT TO QUALITY Tenants are gravitating towards higher quality buildings, and particularly, well-amenitized buildings. Even in this weak market, 2023 was a record-setting year with the most leases signed at rents in excess of $100 per square foot. Older, well-managed buildings that have invested
Slide 9: The Time Is Now
THE TIME IS NOW The office sector is so out of favor right now that institutional investors will not go near it. The absence of competition from institutional investors makes this an ideal time for private investors like Vertex to deploy capital. Investing in an asset class while it is so incredibly
Slide 10: The Opportunity
THE OPPORTUNITY To acquire well-located under-performing office buildings at pricing that we have not seen in a generation and reposition these buildings using the Vertex Strategy to outperform competitors. (Photo: Google) INVESTOR DECK VERTEX 10 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 11: The Vertex Strategy
THE VERTEX STRATEGY Step 1: Acquire well- Step 3: Optimize our located office properties investment based on at a substantial discount, market conditions, either leveraging our expertise by refinancing with more and network to identify favorable debt terms for long- undervalued assets with term cash
Slide 12: Three Pillars of Value
THREE PILLARS OF VALUE Three pillars of value guide our investment and operating approach. 1: Create meaningful and life-enriching shared building amenities; 2: Build and support a diversified, culturally vibrant and creative tenant community; and 3: Define robust measures of sustainability to desig
Slide 13: Life-Enriching Amenities
LIFE-ENRICHING AMENITIES Tenants should be as comfortable in a Vertex building as they are in their own home. Family: Subsidized on site childcare provided by Vivvi Childcare and Early Learning. Food & Hospitality: Delicious, healthy and sustainable food and beverage offerings accessible throughout
Slide 14: Childcare
CHILDCARE Imagine being able to drop your toddler off at a childcare center in the base of your office building, visit them at lunch, and pick them up at the end of the day. Each Vertex property will offer partially subsidized on-site childcare, for newborns through pre-k, from 7am to 7pm, provided
Slide 15: A Culture of Hospitality
A CULTURE OF HOSPITALITY Our goal is for everyone to feel fully cared for. Vertex buildings will offer a range of food and beverage options for tenants and guests from morning until evening. There will be space for casual meetings or simply a relaxed afternoon cup of tea or coffee. Hospitality will
Slide 16: Communal Spaces
COMMUNAL SPACES Our Terrapin Bright Green collaborator Bill Browning puts it best. “Shared space are where friendships and community form,” Bill says. “These spaces are what sociologist Ray Oldenburg calls ‘Third Places,’ and they are incredibly important for our health and well-being.” (Photos: Mar
Slide 17: Diversified Tenancy & Leasing Strategy
DIVERSIFIED TENANCY & LEASING STRATEGY In each Vertex building, the artist studio, non-profit, and startup space will be leased at below market rents and have significantly lower lease-up costs, with little to no downtime between leases. In this way we will create a much more vibrant and creative en
Slide 18: Environmental Sustainability
ENVIRONMENTAL SUSTAINABILITY For each building, Vertex will define robust measures of sustainability to be used in its design, retrofitting, and operations, with diligent consideration of cost-effectiveness and returns on investment. The Vertex portfolio will comprise existing buildings with tenants
Slide 19: Biophilic Design
BIOPHILIC DESIGN Biophilic design takes a holistic approach to physical and mental well-being, weaving the physiological and psychological markers of nature into built space. Vertex buildings will incorporate biophilic elements throughout its common spaces. According to Terrapin Bright Green, “bioph
Slide 20: Vertex Value Creation Model
VERTEX VALUE CREATION MODEL THREE PILLARS OF VALUE INVESTOR DECK VERTEX CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 21: Anticipating Future Needs
ANTICIPATING FUTURE NEEDS Difficult times call for creative, forward-looking strategies. The Vertex approach to commercial property does just that. New York City’s next generation of decision-makers, Millennials, is multi- cultural, tech-savvy, experience-oriented, and health-focused. Vertex buildin
Slide 22: Derisking a Risky Asset Class
DERISKING A RISKY ASSET CLASS The commercial office market is facing strong headwinds. We’ve designed the Vertex Strategy to not only capture upside but also to serve as a tool to derisk our investments. (Photo: Google and Gensler) Buy Low: Acquiring assets at substantial discounts will provide a Su
Slide 23: An Urban Social Imperative
AN URBAN SOCIAL IMPERATIVE Real estate owners have a responsibility to recognize the impact their (Photo: Google and Gensler) At Vertex, we do not take this responsibility operations have lightly. on tenants and Vertex’s operations and investment philosophy communities. reflect a triple bottom line
Slide 24: The Vertex Team
THE VERTEX TEAM Co-Founders Development Partner Consultants Vertex Hamlin Ventures COOKFOX Adam Arnow Abby Hamlin Buro Happold Patrick Pavone Terrapin Bright Green Operating Partner Karen Karp & Partners Brooklyn Grange Olmstead Properties Rachel Libeskind Samuel Rosenblatt Vivvi INVESTOR DECK VERTE
Slide 25: Appendix
APPENDIX (Photo: COOKFOX Architects) INVESTOR DECK VERTEX 25 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 26: Typical Building Scenarios
TYPICAL BUILDING SCENARIOS Scenario 1 Communal/hospitality/amenity space with primary footprint located at the ground floor Scenario 2 In order to account for existing Private hospitality food concept leasing condition of target buildings with primary footprint located above ground floor and differe
Slide 27: Scenario 1: Concept Stacking Diagram
SCENARIO 1 CONCEPT STACKING DIAGRAM Hospitality focused communal & amenity spaces located at the base of the building & Ground Floor. OPTION SUMMARY • 35 STORIES + MECH. BULKHEAD • PODIUM FLOORS: ~35,000 GSF • LOWER PODIUM ENERGIZED W/ AMENITIES AND TENANT DIVERSITY • TOWER FLOORS VARY: 14,500 GSF -
Slide 28: Scenario 1: Concept Plan Diagrams
SCENARIO 1 CONCEPT PLAN DIAGRAMS 2ND FLOOR PLAN DIAGRAM NTS GROUND PLAN DIAGRAM NTS (Photos: Sjoerd Eickmans; COOKFOX Architects; Christopher Payne) INVESTOR DECK VERTEX 28 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 29: Scenario 1: Concept Plan Diagrams
SCENARIO 1 CONCEPT PLAN DIAGRAMS 4TH FLOOR PLAN DIAGRAM NTS 3RD FLOOR PLAN DIAGRAM (Photos: COOKFOX Architects; Christopher Payne; Silver NTS Arts Project) INVESTOR DECK VERTEX 29 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 30: Scenario 2: Concept Stacking Diagram
SCENARIO 2 CONCEPT STACKING DIAGRAM Private hospitality food concept with primary footprint located above ground floor OPTION SUMMARY • 35 STORIES + MECH. BULKHEAD • PODIUM FLOORS: ~35,000 GSF • LOWER PODIUM ENERGIZED W/ AMENITIES AND TENANT DIVERSITY • TOWER FLOORS VARY: 14,500 GSF - 9,500 GSF • CE
Slide 31: Scenario 2: Concept Plan Diagrams
SCENARIO 2 CONCEPT PLAN DIAGRAMS 2ND FLOOR PLAN DIAGRAM NTS GROUND PLAN DIAGRAM NTS (Photos: Eric Laignel; COOKFOX Architects; Vivvi) INVESTOR DECK VERTEX 31 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 32: Scenario 2: Concept Plan Diagrams
SCENARIO 2 CONCEPT PLAN DIAGRAMS 19TH FLOOR PLAN DIAGRAM NTS 3RD FLOOR PLAN DIAGRAM (Photos: Rachel Libeskind; Architecture + Information; NTS COOKFOX Architects) INVESTOR DECK VERTEX 32 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 33: Scenario 3: Concept Stacking Diagram
SCENARIO 3 CONCEPT STACKING DIAGRAM Designed for a smaller boutique scale building, the private hospitality food concept with primary footprint located above the Ground Floor. OPTION SUMMARY • 18 STORIES + MECH. BULKHEAD • TOWER FLOORS VARY: 6,800 RSF TO 17,000 RSF* • TOWER FLOORS ENERGIZED WITH FOO
Slide 34: Scenario 3: Concept Plan Diagrams
SCENARIO 3 CONCEPT PLAN DIAGRAMS 9TH FLOOR NTS GROUND FLOOR NTS (Photos: Rachel Libeskind; Architecture + Information; COOKFOX Architects; Bruce Damonte) INVESTOR DECK VERTEX 34 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 35: Scenario 3: Concept Plan Diagrams
SCENARIO 3 CONCEPT PLAN DIAGRAMS 15TH FLOOR NTS 14TH FLOOR NTS (Photos: Google and Gensler; Snohetta; Eric Laignel) INVESTOR DECK VERTEX 35 CONFIDENTIAL www.vertexpropertiesnyc.com
Slide 36: Patterns of Biophilic Design
15 PATTERNS OF BIOPHILIC DESIGN VISUAL CONNECTION WITH NATURE DYNAMIC & DIFFUSE LIGHT PROSPECT A view to elements of nature, living Leverages varying intensities of light and shadow that An unimpeded view over a distance, for sytems & natural processes chase over time to create conditions that occur
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Slide 38: Notice
NOTICE The information contained herein is being provided for information purposes only and does not purport to be a complete description of all material matters and considerations relating to an opportunity to invest in a special purpose investment vehicle (the “SPV”) formed by Vertex NYC LLC or it