Private

Good evening, Nathan.

If you could review the following and respond to:

bronson@skinnerandpartners.com

1. outlining the establishment of “Skinner Real Estate Holdings” to be managed by 

2. an LLC (which will function as the General Partner or GP: titled “Skinner Capital Management") 

3. to be supported by a pool of both accredited and non accredited investors- recorded via: "Limited Partnership Agreement" LPA or 

4. for accredited investors via "a subscription document" verifying their accreditation / financials etc.

5. With the above summarized in a "private placement memorandum" PPM so that I can effectively raise the capital to establish the funds necessary to carry out our intended commercial real estate developments projects via syndication.

Fund 1

Our first fund will establish one light industrial flex business park featuring 5-10k sf/per unit.

The other half of the site will feature dry/climate controlled storage units since the location is near to large residential developments coming in over the next few years. The sites will feature overflow parking available for rent additionally for the operators to use. For the residential storage we will spec the build for a “Public Storage” type of user so we can hold or sell.

 How?

To achieve this we will onboard reliable partners- each with decades of experience within their respective role: developer, engineer, architect, pm’s, gc’s, and a construction crew who has executed dozens of similar sites.

We will then pre lease the spaces leveraging M&D (my current commercial brokerage) with 9 associates + an entire marketing department who has leased more spaces and features more listings than any brokerage east of the DFW metroplex/associate (210+ active listing with over 190 commercial leases executed in 2023).

This is due to our proficiency listing across all commercial platforms as well as paying for google ads, facebook ads, and hosting hundreds of 4’ or 8’ road signs all across north Texas.

Each of our leasing professionals are highly incentivized to actively promote the site and qualify potential tenants for a 5-7 year lease term ensuring the site is securely and entirely leased as quickly as possible.

Our aim is to exit the project by fully leasing out the spaces at market rates as well as leasing up or selling the build to suit dry/climate controlled space component (half the site) which historically carry less than a 4% vacancy on available units. This creates for our investors a substantial liquidity event within 5-7 years as well as potential life-long cash flow projections from the remaining half of the site should we decide to hold the 5-10ksf flex buildings.

Equity Waterfall at a glance

Targeting an 8% IRR, we are confident that we can achieve an even higher return because of the talent involved at every level. Our GP’s will invest at 1-10% and our LP’s will fund 90-99% of the expense to execute the project entirely or by leveraging a 65% ltv traditional commercial loan product suitable. Proportionally our GP’s and LP’s will earn their returns until exceeding an 8% IRR.

For example, let’s say our GP invests 5% and LP’s invest remaining 95%. When distributions or an exit is achieved on an equity waterfall schedule to be determined, GP is paid 5% and LP is paid 95% of returns until an 8% IRR is achieved.

For every dollar earned beyond the 8% IRR the GP will earn his 5% stake PLUS an additional 35% coming from the LP’s pool of bonus earnings. This means for every dollar beyond an 8% IRR the total the GP earns is 40% of the proceeds and the LP earns 60%.

After successfully executing Fund 1, we will plan and execute Fund 2 by leveraging specialized talent for acquiring, developing, building, and operating mixed-use developments for the following purposes: