WHY REAL ESTATE AS A SOCIAL INVESTMENT 

Peter Slaugh & Gino Borges host a lively dialogue discussing how multifamily real estate can be an ideal open path investment vehicle for generating tangible social & environmental returns, alongside impressive financial returns. The conversation will draw from recent property investment acquisitions, community building projects, renovations and closings.
Topics include:  

• Status of Multi-Family Real Estate Industry
• Acquisition Criteria & Diligence Process
• Community building benefits flowing through and to investors
• OpenPath’s Financial and Impact Highlights (and challenges)

Listen to the full interview:

TRANSFORMING APARTMENT COMPLEXES INTO THRIVING COMMUNITIES

Sara Mossman and Gino Borges introduce OpenPath’s “Urban Village” program. Urban Village is a community-building program that transforms ordinary apartment complexes into thriving communities were residents enjoy the benefits of a greener, healthier lifestyle, along with greater connections with neighbors. Sara and Gino reminisce on the early days of starting Urban Village — why it was started, and how the team and residents build community from the ground up. They discuss how Urban Village adapts to different communities and locations, and they’ll share what they have learned and seen — from green renovations to resident leadership. Lastly, Gino and Sara share the vision for Urban Village’s future, and building blocks for getting there.

Listen to the full interview:

Experts see rising rents, low vacancies, and decades of strong demand

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The single best investment you can make for 2016

At the end of every year I like to do a deep dive into the performance of my portfolio and understand what’s working and what’s not.

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OpenPath Investments acquires Las Vegas senior housing complex Lake Tonopah Apartments with successful online capital raise

OpenPath Investments acquires Las Vegas senior housing complex Lake Tonopah Apartments with successful online capital raise

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My Next Google – People. Planet. Profit.

On February 14, 2000, Omid Kordestani hired me as Google’s first ad executive.

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Private Wealth – Good & Green

In 2009, OpenPath Investments, a social impact real estate company based in San Rafael, Calif., took a unique approach to improving one of its portfolio properties, a 60-unit apartment complex in Provo, Utah.

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OpenPath Investments acquires Phoenix apartment complex Ventana Palms for $8.5M; launches online investor portal

All accredited investors can now join in OpenPath’s socially responsible investment model
Sept. 4, 2015 – PHOENIX, ARIZONA – OpenPath Investments has purchased Ventana Palms Apartments, located in west Phoenix, for $8.5 million, kickstarting an effort to bring a socially responsible investing and property management model to the working-class housing complex in the Maryvale neighborhood.

OpenPath’s acquisition includes approximately $3.6 million in equity financing from socially conscious investors who support the firm’s Urban Village community concept and its environmentally friendly investment model. The Urban Village concept calls for investments in community-building efforts for apartment residents, including tools, inspiration and ideas to enrich their community life — from community gardens, to educational classes and leadership development.

OpenPath also intends to invest approximately $1.5 million in interior and exterior upgrades at Ventana Palms. The 10-building, two-story, garden-style apartment property is located at 7021 W. McDowell Road. Built in 1989, the property includes 160 units with an average size of 857 square feet.

The Ventana Palms announcement accompanies the launch of OpenPath’s new online investor portal, which enables the San Rafael, California-based asset manager to attract, engage and manage its investor base with more efficiency and transparency. The portal allows accredited investors to review and make direct investments in real estate projects online. Investors are able to access tax documents, financials and deal documents throughout the life of their investments via a login protected secure online dashboard.

“We cultivate healthy and thriving communities through social stewardship, open feedback loops, and respect for all parties and viewpoints. When OpenPath’s residents and employees are thriving, so are OpenPath’s investors,” OpenPath Managing Director Peter Slaugh says. “As we move forward, we’re excited to offer both new and existing accredited investors the opportunity to take part in our investing model with transparency and accessibility through our new online investor portal.”

The new investor portal was built by Investor Management Services LLC, a QuietStream Financial portfolio company.

OpenPath’s new investor portal and details on the firm’s strategy and portfolio are accessible at investments.openpathinvestments.com.

About OpenPath Investments
OpenPath Investments is a triple bottom-line company with more than a decade of experience creating value for its investors, its tenants and its communities. OPI specializes in multi-family acquisitions totaling more than 2,100 apartment units with a current portfolio value exceeding $260 million and a historical investor rate of return of 18%+. The company strategy is to continue generating above-market investment returns alongside measurable social and environmental impact. OPI works with accredited investors and has options for investments at various capital levels. Visit OPI’s website, www.openpathinvestments.com, for more information.

About QuietStream Financial
QuietStream Financial is an innovative portfolio of businesses serving commercial real estate owners, investors, borrowers and related professionals. The company operates a portfolio of businesses that provide a host of services, including investor management, fundraising, CMBS research and underwriting, defeasance, crowdfunding, marketing and other alternative asset management services. QuietStream Financial has more than $10 billion in assets under management. The firm is based in Charlotte, N.C. To learn more visit www.quietstreamfinancial.com.

Media Contact:
Adam O’Daniel
QuietStream Financial
aodaniel@qsfllc.com
(704) 940-9754

OpenPath Investments Acquires Colorado Spring’s Cheyenne Crossing for $25 Million

Impact Investment Company to Enhance New Property; Impact Residential Life, Environment and Community
SAN FRANCISCO, CA–(Marketwired – May 7, 2015) – OP Cheyenne, LLC acquired Cheyenne Crossing for $25 million ($113,636/unit); a 220-unit Class B+ apartment community in Colorado Springs on April 30, 2015. The deal was organized and sponsored by OpenPath Investments, LLC (OPI).

OPI identifies existing rental apartment properties with “value-add/operational upside” in the Western States with 100+ units that provide “workforce” housing. Cheyenne Crossing is a Class “B+” asset in an “A” location. OPI will cure minor exterior capex, close the gap between in-place rents, conduct light 41-unit interior renovations, and add washer/dryers inside units to further push rents.

“All of OPI properties cultivate healthy and thriving communities through social stewardship, open feedback loops, and respect for all parties and viewpoints. We measure returns not only financially but also socially and environmentally. OPI strives to create a sense of ‘place’ at each of our properties whereby residents and employees are supported and communities ultimately thrive,” said Founder and Managing Partner, Peter Slaugh of OPI.

He added that each OPI property incorporates the Urban Village program based on the simple premise that residents operate stronger as a collective community rather than as individuals. Core to OPI’s mission, the program attempts to unlock the unlimited potential that community and healthy living spaces can achieve.

OPI has been investing in multi-family acquisitions for more than a decade trading in and out of over 2,100 apartment units with a total acquisition value exceeding $200 million and a historical IRR of 17%-20%+. The company strategy is to continue generating above-market investment returns alongside measurable social and environmental impact. OPI works with accredited investors and has options for investments starting from $50,000+. Visit OPI’s website: www.openpathinvestments.com or contact Bridget Argana: (480) 231-3582/barganaconsulting@gmail.com.

CONTACT:
Bridget Argana
West/Coast Consultants
480.231.3582

Making Real Estate a Socially Responsible Investment

Article originally appeared in the April 2015 edition of the Western Real Estate Business

Combine investors, investments and goodwill, and what results are socially responsible investments (SRI). When a company’s operations directly affect social and environmental factors in its micro- and/or macro-communities where it operates, the product is known as social impact.

Impact investments, socially responsible investing (SRI), triple-bottom-line investments (TBLI) or people planet profit (PPP) are investment phrases and ongoing trends that will continue to have an impact on our market throughout 2015 and beyond. They have become a popular way to fund social programs via academia, as well as the private and public sectors. Financial firm Goldman Sachs has created financial products for these types of investors. Its website offers an info graph that shows the of investing in its “social impact bond,” which is an innovative and emerging financial instrument that leverages private investment to support high-impact social programs.

The trend is not only prevalent in social programs initiated through bonds and other private investment modes, but there has also been an emergence in the real estate industry. OpenPath Investments (OPI) has been acquiring value-add Class A, B and C apartment complexes for more than a decade in Utah, Texas, Arizona, Oregon and now Colorado, and has had a vision for socially responsible investing. OPI’s vision was realized when it created the Urban Village concept and implemented the programs at each of its apartment complexes, which became a platform for its current approach to real estate investment and asset management.

Urban Village adds value and empowers all residents at the apartment communities by providing opportunities to engage in social activities, take on leadership roles, live in newly redesigned spaces, congregate in community rooms and participate in ecological initiatives. It also encourages intra-communications and shared consumption behavior that ultimately reduces residents’ cost of living. This has created a successful long-term income stream in each of our 11 apartment complexes, which has resulted in lower resident turnover, and invites collaboration between residents and on-site management. The benefits reach all stakeholders, from residents to management to investors.

The direct environmental impact on these Urban Village communities has been measured by the following: about 30 residents participate in the gardening program (increasing to 60+ in 2015); recycling at all complexes, with nearly 500 apartment households of about 2,000 actively recycling; recycling awareness events to improve this rate; and 10 green-friendly events last year, including Earth Day, a swap meet, Harvest Days, recycling awareness events, garden demonstrations and recycling contests.

The social impact created by the Urban Village has fostered about 2,000 social connections in 2014, which includes the number of residents participating or attending events each month, with an average of three events at each property. This is estimated to be 3,000 connections by the end of 2015, with an average of 30 residents in leadership positions like Resident Council and Ambassador positions. Ambassadors in each community are responsible for meeting one-on-one with five households a month to welcome new residents and to learn about existing tenants’ needs and offerings.

Although one of the newer investment styles, socially responsible investments or impact investments does not mean the investors compromise goodwill for investments that have a low ROI. On the contrary, OPI has had a historical IRR of 17 percent to more than 20 percent, while targeting 14 percent to 16 percent for future acquisitions. The company is continuing to generate above-market investment returns along with measurable social and environmental impacts in its communities.

OPI is one of the many businesses making SRI a priority. There have been some challenges implementing socially responsible practices into a real estate business that revolve around forming the initial community at properties where none existed prior to the Urban Village program. OPI has now developed an 18-month rollout strategy that steps through the process of gathering residents, establishing guiding principles, and developing self-governance and participation from the residents themselves. The Urban Village program forms Resident Councils, recruits Ambassadors at the properties work closely with on-site management to support participation and communication amongst the residents. This is all facilitated by the Urban Village Director who oversees all aspects of implementation and scale of the program across the OPI portfolio of properties.

The trend of impact investments is becoming more mainstream in many business sectors today, including real estate. The value of socially responsible investing can be measured directly through the ROI and social initiatives that the funding establishes. The impact these investments have on the people in these communities is immeasurable.

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