Compass Capital Overview

Compass Capital, LLC is a full-service real estate investment, management, and development company. Our proven strategy is to purchase under-performing assets at prices below replacement cost where we can utilize our development and operating expertise to add value. We seek to renovate and upgrade building facilities and systems, increase tenant occupancy and rental rates, provide property management and leasing services, and divest or hold these assets.

Proven Execution

Since 1997, our broad market knowledge, ability to recognize the right opportunities, financial wherewithal and expertise and years of experience make us experts at managing real estate development risk. Our team is seasoned at every phase of a real estate development project – site selection and acquisition, zoning and entitlement, environmental due diligence and remediation, development, financing, leasing, construction, and asset management. Most importantly, we understand how each phase can ultimately impact the success of a project and maximize our returns.

Investment Approach

Compass Capital’s investment approach is based upon senior management’s collective experience of acquiring, developing, owning and operating real estate assets. Our “hands-on” experience and owner/operator perspective provide the foundation for an investment strategy that has been tested through the highs and lows of multiple real estate cycles. This in-house expertise supports nimble and swift transaction execution, which provides Compass Capital with a competitive advantage over institutions and more financially oriented

investors. Compass Capital’s management team possesses an entrepreneurial spirit and a broad understanding of how to maximize value in real estate and make insightful judgments about market dynamics.

We seek opportunities to purchase both stabilized and seemingly troubled, high vacancy properties. We pursue stabilized properties that we believe are underperforming, but that would benefit from improved management/leasing, minor capital improvements, major renovations, or recapitalization. We also pursue seemingly troubled, high vacancy properties that offer significant upside through aggressive leasing/management, repositioning, conversion to alternative use, or complete redevelopment.

The ability to apply a disciplined approach to real estate differentiates Compass Capital as witnessed by the show of restraint during the recent overheated commercial market period.

Value Add Redevelopment

Redevelopment is often the best cure for underperforming real estate assets and can provide several advantages to the owner, the tenants and community. Through redevelopment, an owner can provide renewed energy to a shopping center. That revitalization can attract new tenants and provide leasing agents with a new and beautified property to lease. With that comes the ability to attract quality national and local tenants that other retailers want to locate near. The process goes full circle.

Redevelopment is often considered a safer alternative to new development. As opposed to moving into uncharted territory with an untested product type a developer knows the market and understands the potential for what could be successful.

Location

Purchasing a property that is in the right location is the first step in a successful redevelopment project. This requires unwavering attention to detail and extensive knowledge of real estate markets gained through experience and due diligence.

Purchase Value

Good redevelopment projects are purchased under replacement value with recognized potential and turned into a good long-term investment. The return on investment is most often higher with redevelopment than on new development and the construction can usually be completed faster than new development.

Compass Capital Historical Performance

 Property                                                                                            Cost                   Improvement                 Valuation

Tampa Palms Shopping Shopping Center                             $4.1M                         $1.2M                        $8.0M**

Lexington Green Shopping Center*                                        $8.0M                         $2.0M                        $20.0M

Regency Road Flex Space                                                        $1.7M                         $0.3M                        $2.4M**

Valley Commons Kroger Retail                                               $2.0M                          $0                               $2.4M

South Elkhorn Village Retail                                                    $7.2M                          $0.3M                        $9.0M

Kincaid Towers Office Tower                                                 $18.0M                         $4.5M                        $46.0M

Executive Place Office Bldg                                                    $2.8M                           $1.0M                        $4.6M**

Meadowthorpe Shopping Center                                           $4.0M                           $1.7M                        $8.4M**

Colby Station Shopping Center                                              $2.1M                           $1.7M                        $5.9M

University Shopping Center                                                    $9.1M                           $1.3M                        $13.1M

*In Partnership     **Actual Sales Price of the Property

 

Investment Criteria

As a fiduciary and co-investor, Compass Capital, LLC employs a disciplined approach in selecting appropriate investment opportunities for the Fund.

 

Property Types:

* Retail Shopping Centers, Office, R&D/flex properties

* Existing assets or redevelopment and conversion opportunities

* Development for Retail or Industrial uses

* CBD infill, or suburban locations with superior access

Investment Characteristics

* Attractive pricing relative to replacement cost

* Core, value-add or deeply discounted properties

* High barrier to entry and contrarian markets

* Single assets or portfolios

* Advantageous Location

* Preferred minimum size: $4 to $12 million

Investment Situations

* Releasing/Repositioning

* Redevelopment/Expansions

* Conversion/Adaptive Reuse

* Partner Buyouts/Partnership Interests

* Financial Receivership Properties

* Distressed Debt with prime locations

Repositioning

As the purchaser of many high-profile real estate assets, Compass Capital, LLC has a well-earned reputation for quality and performance. Leveraging the capital resources of its principals and investors, Compass Capital, LLC has purchased, renovated, and developed premier office, and retail projects in many South East United Sates markets.

In most cases, the buildings have been in some state of distress when they were acquired. In each case, we added value to the property by renovating, refurbishing, redeveloping, and repositioning the assets, stabilizing and increasing occupancy and achievable rent, and professionally managing the day-to-day operation of the building.

Asset Management

Our process treats each asset as an individual operating company with specific revenue and expense objectives. Under the direction of senior management, our asset managers develop and implement strategies to enhance the value of each asset in our portfolio. The goal is to make each property-level decision improve the value of the portfolio.

* Prepare and monitor an annual strategic performance plan that identifies short- and long-term asset objectives, focusing on market conditions, projected rents, and capital requirements.

* Prepare annual tactical plans that include detailed projections for leasing, operating expenses, and capital improvements, as well as providing quarterly reports on achievement.

* Oversee marketing, leasing, and capital expenditures as detailed in the annual strategic performance plan.

* Try to spread lease expirations, and establish a strong rent roll with credit tenants, while avoiding a concentration of tenants in any single economic sector.

* Conduct on-site inspections and tenant surveys, and maintain contact with other market participants to determine an asset's competitive position in the market.

Leasing

Compass Capital, LLC contracts leasing professionals who work closely with acquisition, property management, and administrative professionals to ensure that an investment's objectives can be met and/or exceeded. Utilizing extensive experience Compass Capital, LLC develops strategies that truly enhance property value by maximizing lease rate, and at the same time reducing the cost of operations. The company's proactive approach has yielded significant financial returns– including reduced operating expenses, cost controls in flexibility and responsiveness, optimization and increased profits, resulting in greater returns to investors.

Compass Capital, LLC understands the importance of tenant retention, and enthusiastically markets the property to prospective tenants using a variety of traditional and non-traditional marketing strategies. Tenant retention ratio has generally exceeded the industry average for the buildings purchased with existing tenants. One of the ways in which we retain tenants is the use of surveys, to better understand what tenants like and want to see in their buildings. Tenants can contact the company directly and process specific service requests and property management holds tenant appreciation events regularly.

Disposition

When the time is optimum to sell an asset, Compass Capital, LLC prepares comprehensive investment offering packages, identifies the spectrum of prospective purchasers, and seeks to negotiate the most advantageous deal for our investors.

Whether the transaction involves an all-cash sale or a complicated financial structure with conventional, securitized, participating, or convertible debt, Compass Capital, LLC professionals have the relevant experience. Compass Capital, LLC accesses third–party purchasers both directly and through participating brokerages.

The Team

In 1994, Tom Jameson began investing in commercial real estate and formed Compass Capital LLC to invest in distressed real estate opportunities created during the early 1990s.

Compass Capital’s management team includes Mark Burton with Wyatt Tarrant & Combs LLC, Due Diligence and Legal and Mike Shepard with Dean Dorton PSC, Accounting and Tax. These individuals bring an impressive history of experience, entrepreneurial spirit, integrity, and professional capabilities. Senior executives average over 17 years of experience in real estate acquisition and lead a dedicated team of experienced property managers. Their expertise, enthusiasm and passion for excellence provide the foundation for Compass Capital’s success.

The Team

In 1994, Tom Jameson began investing in commercial real estate and formed Compass Capital LLC to invest in distressed real estate opportunities created during the early 1990s.

Compass Capital’s management team includes Mark Burton with Wyatt Tarrant & Combs LLC, Due Diligence and Legal and Mike Shepard with Dean Dorton PSC, Accounting and Tax. These individuals bring an impressive history of experience, entrepreneurial spirit, integrity, and professional capabilities. Senior executives average over 17 years of experience in real estate acquisition and lead a dedicated team of experienced property managers. Their expertise, enthusiasm and passion for excellence provide the foundation for Compass Capital’s success.

Tom Jameson

Founder & CEO

Thomas E. Jameson has substantial and varied experience in the acquisition, development, and asset management of commercial real estate throughout the South East United States. Prior to founding Compass Capital, LLC, Mr. Jameson acquired Business Systems, Inc. and built a successful material handling company that integrated automated storage and retrieval systems nationwide. In addition to providing private equity for venture funding Mr. Jameson also serves on the Bluegrass Venture Fund Board which invests primarily in Kentucky based technology companies.

During his acquisition and private investment career, Mr. Jameson’s responsibilities included managing deal teams through the comprehensive underwriting, due diligence, negotiation, and closing of commercial real estate, and entity acquisitions totaling over $60 million all which have involved investing his own capital along side other investors. His experience includes numerous complex transactions involving convertible debt, preferred equity, and direct investments in operating companies.

Kyle Jameson

Property Management & Leasing

Patrick Kyle Jameson is the principle of Compass Capital Property Management LLC. Core expertise includes property operations, tenant improvements, capital improvements, lease and contract administration and budgeting.

Kyle received his advanced commercial property management certification from the Institute of Real Estate Management and earned the coveted Certified Property Management CPM designation after 3 years of study and experience in the field. Kyle has not been working in Property Management & Leasing fields for over 6 years.