Clear Valley Properties

Who We Are

Focus

What We Offer

Goal

History

Examples

Who We Are

Clear Valley Properties has been operating as a private property investment and management company since 2001. Bentley Richards, CEO founded the company, with only one apartment building in Los Angeles. Since then, the parent company Nottinghill Gate LLC has grown into a successful boutique investment company with almost 1700 units under management in 4 States throughout the Southwest. A key to our success has been our ability to consistently identify underperforming assets and implement carefully designed organizational structures and practices geared toward optimizing a property's performance and maximizing returns.

Focus

Our focus is to apply our expertise in the acquisition, management and the disposition of multi-family apartment complexes in order to achieve the highest returns for our investors while preserving and growing capital. We bring the flexibility of a small hands on organization that is nimble enough to adapt to diverse market conditions based on 15 years of business experiences in the apartment market. Our growth and success stems from the ability to marry our investment experience with our property management company. Our objectives in property management are correlated to the investment strategy. We are always looking to implement plans that will achieve the greatest appreciation and returns at sale.

What We Offer

There are three aspects to our company that are of tremendous value to our investors.

Identify assets that fit into our investment criteria:
1. Look for added value underperforming C class multi-family properties
2. Continue to focus on opportunities in the Midwest and Southwest where the prior and current economic conditions are optimal
3. Self representation on all purchase and sales, including in house analysis of ROI (Return on Investment), promotion, due diligence and closing. This ensures a special level of care and knowledge at every turn of the transactions. This eliminates the need for intermediaries that lack intimate knowledge of the project, while focusing solely on the main objective which is maximizing the investors return.

Identify areas of a property that are underperforming, and implement a strategy to achieve the goal of repositioning the asset, thereby adding significant value. We have done this through hiring and training a loyal staff that use our methods of management:
1. Reducing maintenance costs by performing all work in house
2. Eliminating wasteful spending through economies of scale
3. Identifying essential capital improvements that add value, such as improving the look of exterior and common areas. ie… painting, landscaping, interior renovations
4. Eradicating crime
5. Evicting undesirable tenants
6. Reducing vacancy through tenant referrals by creating a community environment where people want to live and bring friends and family
7. Create a plan where we fix a portion of the units and lease them up at higher rental rates to show potential buyers that our pro-forma numbers are actually achievable. This gives us a huge advantage when we go to sell. It demonstrates that the property is a performing asset and will recoup more of its investment at sale

Sale of the property:
1. Preparation of the property for sale through the implementation of strategies 1 and 2 geared towards maximum R.O.I.
2. Preparation of the financials for sale
3. Listing of the asset
4. Handling of 1031 Exchange funds into new investment. Profits from a prior or future sale can be rolled into a new purchase to avoid paying capital gains taxes

Goal

Our goal is to invest for individuals and corporations who are seeking to diversify their portfolios and take advantage of the opportunities in the multi-family market throughout the Mid and Southwest. Our focus is to maximize returns while preserving capital and offer the benefits of real estate ownership. We balance achieving higher returns with prudent investments. Our experience along with current economic data show that the multi-family market is and has been a safe place to invest and is fairly well insulated from the existing economic environment. We are small enough to adapt to market conditions and creative enough to avoid the pitfalls that beset larger companies.

History

Over the past seven years, ending in 2008, our method has netted us approximately $8.8 million in cash, for a total return of 77.58%, and an annualized return of 40%, on properties that were bought and sold during that time period. For properties that we continue to hold our average annual return has been 13%.

Examples

Harbor House Tucson, Arizona:

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Hobart Apartments Koreatown, California:

Results: Liquidated asset based on proforma rents achieved on 10% of units. Sold in 15 months for a total return of 67.11%
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Moana Apartments Reno, Nevada:

Results: Liquidated asset based on increased cash flow and booming Reno real estate market. Sold in 24 months for a total return of 97.95%
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Woodland Village Apartments Tucson, Arizona:

Results: Property sold at $6,030,000 for a total return of 100.36% over an 20 month period. Annualized cash on cash return of 60.22%
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La Quinta Gardens Houston, Texas:

Results: Annualized cash on cash return of 20.73%
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Hillside Apartments Dallas, Texas:

Results: Annualized cash on cash return of 15%
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CAUTION AGAINST UNDUE RELIANCE ON PERFORMANCE RECORD

The following historical information is accurate but may not be indicative of future performance. You should consider the following possible factors in evaluating our performance record: changes in external market factors; changes in our business or growth strategy or an inability to execute our strategy due to changes in our industry or the economy generally; the emergence of new or growing competitors; and various competitive factors. In light of these risks and uncertainties, it is not certain that the performance record below will prove a useful indicator of future results.