AGENDA ITEM #6 Bridge Investment Group Prepar ared ed for r Sant nta a Clara ra Valley ey Transpo ansportatio rtation n Auth thority rity April ril 2, 2019 Private & Confidential – Not For Distribution
Executive Summary Capital Appreciation, Current Income and Tax Efficiency • Strong absolute and risk-adjusted returns driven by solid real estate fundamentals and asset level alpha • High and steady quarterly distributions • Tax efficient relative to other asset classes Why Real Diversification and Inflation Protection Estate? • Low correlation to both traditional assets and other illiquid alternatives • Hard, income-producing assets that typically preserve value during periods of inflation • Lower loss rates and fewer defaults via real estate debt investing relative to corporate credit Hedge Against Rising Rates • Rent escalators and floating rate exposures provide protection Healthy Real Estate Fundamentals Why • Favorable supply / demand dynamics • High occupancy rates Now? • Strong employment growth • Rising rents • Tailwinds created by demographic trends (e.g., growth in millennial population, aging of baby boomers, transition to a knowledge economy) Key Differentiators • Long-tenured senior management who are owner operators with a 28-year history Why • Specialization across Real Estate Debt, Multifamily, Office and Seniors Housing • Keen focus on portfolio construction and risk management Bridge? • Disciplined market selection driven by fundamental research and local teams embedded in Bridge Target Markets across the U.S. • Large operating platform creates value at the asset level through high-touch property management 2 Private & Confidential – Not For Distribution
We live and breathe our assets. That’s how we find value where others don’t. Bridge seeks to be a globally-trusted investment manager offering exceptional returns to our investors, pursued with uncompromising principles. We are a high-touch, detail-oriented investor in the commercial real estate and fixed income sectors. We are a people business. It is a privilege to serve as steward of our Investors’ capital. Our residents and tenants are the lifeblood of our assets. We strive to create vibrant communities wh ere people are excited to live and work. We hire the best people and provide them with unparalleled opportunity to succeed and advance. Core Values T E A M W O R K We emphasize teamwork in everything we do. We thrive on collaboration, hard work and open and honest communication. We forge strong and inclusive relationships, trust each other, and win as a team. E X C E L L E N C E We strive to be the best performing firm in our industry. We take pride in our performance and celebrate our achievements. We do what is right- for the right reasons. A C C O U N T A B I L I T Y We stand behind our word and strive for continuous improvement in all that we do. We face facts and realities, and we embrace challenges. E M P O W E R M E N T We empower our people to reach their full potential. We cultivate a diverse and inclusive culture of disciplined analysis and action. We believe that diversity is the only path to superior performance. S P E C I A L I Z A T I O N We develop specialized investment and operating teams which have deep sectoral knowledge of the areas in which we invest. We use data, carefully analyzed and fully vetted, to complement decades of experience, in guiding our investment decisions. C R E A T I V I T Y & I N N O V A T I O N We consistently reexamine how we operate and seek innovative solutions to improve our performance, at the asset level, at the Fund level and at the corporate level. New ideas are carefully examined and adopted if appropriate. 3 Private & Confidential – Not For Distribution
Bridge Investment Group Overview Private & Confidential – Not For Distribution
National Reach With Local Expertise S e n i o r s F i x e d $15+ billion in AUM M u l t i f a m i l y W o r k f o r c e O f f i c e H o u s i n g I n c o m e Private real estate investment management firm B r i d g e O f f i c e s started by Bridge principals in 1991 Fully vertically integrated operating company with 2,600+ employees New York, NY San Francisco, CA Salt Lake, UT 12 Sponsored closed-end strategies across equity and debt Atlanta, GA 5 Dedicated, specialized and synergistic Orlando, FL investment teams B R I D G E F O O T P R I N T Over $169 million of voluntary GP commitments across Bridge strategies 5 Private & Confidential – Not For Distribution
Bridge Investment Group History 2018 • Bridge moves to #27 in PERE 2016 Top 50 Real Estate Private 2009 1991 • Bridge breaks into Private Equity firms Launch of Bridge principals Equity Real Estate (”PERE”) • Launch of Bridge Debt III discretionary establish Top 50 Real Estate Private 2012 fund business predecessor as real 2014 Equity firms Launch of • Launch of Bridge Multifamily IV with Bridge estate Launch of commercial real estate • Launch of Bridge Debt II Bridge Multifamily I owner/operator (CRE) backed fixed-income • Bridge acquires Fairlead Multifamily II strategy with Bridge Debt I Commercial Real Estate and launches dedicated Bridge Office platform 2019 • Launch of Bridge Qualified Opportunity Zone Initiative 2000 2011 2013 2017 2015 • • Bridge’s predecessor Principals organize Bridge featured in Private Launch of Bridge Office Launch of Bridge becomes vertically Bridge as an SEC- Equity International (“PEI) as Multifamily III • integrated with the regulated Registered Top 10 Emerging Manager Launch of Bridge Seniors II addition of Investment Adviser • Launch of seniors housing and • Bridge Property medical properties strategy Launch of Bridge Workforce Management with Bridge Seniors I and Affordable Housing I 6 Private & Confidential – Not For Distribution
Specialized Bridge Platforms Workforce & Debt Multifamily Seniors Housing Office Affordable Housing • • $2.3 billion in equity $750 million • • • $2.5 billion in equity $750 million $1.8 billion in equity & joint venture targeted equity capital targeted equity & joint venture commitments commitments • 40 to 50 expected • • 134 existing 40 to 50 expected • 63 existing investments • investments investments 78 existing investments investments • 13 million square feet • • 1,400+ properties in 4,500 units in • 34,000+ units in in current portfolio • current portfolio current portfolio 10,300 units in current portfolio current portfolio • • • Bridge Debt I (2014) Bridge Multifamily I WFAH exposure Bridge Seniors I Office exposure (2009) 2 previously managed in (2014) previously managed in • Bridge Debt II (2016) Multifamily funds and Multifamily funds and • • Bridge Multifamily II Bridge Seniors II • Bridge Debt III now an exclusive now an exclusive (2012) 3 (2017) (2018) portfolio. portfolio. • Bridge Multifamily III (2014) • • Bridge Workforce Bridge Office I (2017) • Bridge Multifamily IV and Affordable (2018) Housing I (2017) 1 All figures in this slide are as of Q3, 2018. Past performance is not indicative of future results and there can be no assurance that current or future investments will achieve comparable results or that historical deal flow levels will continue. 2, Multifamily Fund I is fully realized. 3 Multifamily Fund II is fully realized. 7 Private & Confidential – Not For Distribution
Market Opportunity & Bridge Debt Platform Private & Confidential – Not For Distribution
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