Expertise and Insight

A build-to-core fund of high‑quality, modern assets

We develop high-quality, modern assets in major U.S. urban markets to lease and hold as core investments in an open-end, core-plus fund.

  • Strive to preserve capital over time.
  • Work to realize annual cash yields and appreciation.
  • Provide geographic and property diversification.
  • Offer an evergreen core portfolio of quality projects.
  • Seek risk-adjusted returns through development and redevelopment.
  • Hedge risk by investing throughout the real estate cycle.
  • Sell assets at peak values over time.

Build-To-Core v. Aquiring Core


A properly executed build-to-core strategy offers the advantages of the prospect of core income returns from competitive, modern assets plus greater value creation potential from new projects that are constantly regenerating the portfolio.

Build-To-Core

Pros

  • Access to income producing component of portfolio
  • Modern, competitive product
    • Potential to achieve higher rents
    • Greater operating efficiencies
    • Potentially more resilient to natural disasters
  • The prospect of income returns plus appreciations from value creation
  • Potential for higher core-plus returns
  • Less competition for acquisitions and ability to band land for future development

Cons

  • Development risk
  • Higher volatility than core
  • Not all markets suitable for new construction

Build-To-Core

Pros

  • Access to income producing portfolio
  • Potential for solid income-oriented returns
  • Relatively low volatility

Cons

  • Relatively low to moderate appreciation potential
  • Established core assets are older than new product in the market – subject to faster obsolescence
  • Priced above replacement cost in many markets

Average annual gross return generated by National since 2000

National’s portfolio located in primary urban markets

Average age of National’s assets, compared to 25.0 years old NCREIP

AUM. $4.2 billion net

Number of current investments across the U.S.

As of 03/31/2022

Property-Level Gross Asset Value (GAV) is based on property-level unleveraged values for real estate investments. The reported GAV is based on the “as is” value (including properties in development) per the most recent property appraisal, and includes working capital and other adjustments such as lender and capital reserves and construction costs spent. However, the GAV for debt (senior and subordinate loans) investments is reported as the fair value of the loan, as opposed to the fair value of the underlying collateral (property). The GAV (Pro Rata) at Market is the ownership % interest of the Property-Level GAV.

  1. Fund’s Share Property-Level GAV: The Fund’s share of GAV is reported at the Fund’s economic interest in the investment, which takes into consideration any applicable preferred returns and/or promoted interests, per the partnership operating agreements (if not wholly owned).
  2. Fund-level GAV: Fund-Level GAV represents the Fund’s economic interest in real estate investments, cash, cash equivalents, and other Fund assets as defined by National. More information can be provided upon request.

Net Asset Value (NAV): Net assets under management are calculated using the Fund’s Share Property-Level NAV of investments, plus cash and other assets and liabilities. The calculation is explained further below:

  1. Property-Level NAV for Equity Investments: For equity investments, the Property-Level NAV equals the Property-Level GAV less marked-to-market debt.
  2. Property-Level NAV for Debt Investments: The NAV for mezzanine and debt (senior and subordinate loans) investments is reported as the fair value of the loan.
  3. Fund’s Market Value aka Fund’s Share Property-Level NAV: The Fund’s share of NAV is reported at the Fund’s economic interest in the investment, which takes into consideration any applicable preferred returns and/or promoted interests, per the partnership operating agreements (if not wholly owned).

Property-Level Loan-to-Value Ratio (LTV): For equity investments, the LTV reflects the aggregate of the property-level debt divided by the aggregate of the Property-Level GAV as previously defined.

Total includes employees of two distinct affiliates, National and National Development. National currently has 41 employees, and National Development has 15 employees.

National commenced operations on January 1, 2010. National’s core senior management team began working together at National’s predecessor firm, NEBF Real Estate, in 2000. National was the result of a spin-out of an internal division of the NEBF, and all senior management transitioned from NEBF Real Estate to National.

Note: Please refer to the “Important Information“, “Company End Notes”, and “Performance End Notes” pages of this presentation for further information.