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Current Strategy
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Investment Opportunities

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Investment Opportunities

Investment Program. Triad Properties Corporation has an ongoing program of acquisition and development opportunities in various metropolitan areas. To capitalize these projects, Triad aranges the debt financing and is seeking co-investment partners to provide a portion of the required equity.

Investment Environment. Economic malaise in the global economic markets, the US housing crisis, Wall Street failures and Wall Street Bailouts, forced investment bank consolidations, The Big 3 Auto giants request for billions for bailout, the government's $800 billion bailout plan, historic decreases in the DOW, high unemployment and an unprecedented credit-induced recession were topics not discussed but just a few short months ago.

CBRE's "The Current State of Global Real Estate, dated October 30, 2008", stated the world economy and commercial real estate markets have been roiled by events unimaginable 90 days ago."

Impact on Commercial Real Estate?

• Debt and Equity capital is severely constrained
• Property fundamentals are weakening
• Property values are plummeting
• Transaction volume is limited due to the difference between the bid and the ask
• Lenders are not always renewing loans as they come due
• Some owners will be forced to sell at a discount-to-replacement price
• Serious dislocations will exist in certain markets
• Certain sectors will prove to be recession resilient and will fair better than others

Further, the CBRE article stated, "On the equity side, substantial capital is still looking for opportunities, but not at today's asking prices." In general, there is a difference in the bid/ask price. In specific, buyer's are looking for distressed sales opportunities.

Triad's Opportunistic Approach. From Texas to Florida to Georgia to Tennessee to Oklahoma, Triad Properties acquired 14 office buildings representing 1,755,269 square feet, at a significant discount-to-replacement value, when the government's Resolution Trust Corporation (RTC) bailed out the Savings and Loan industry. The RTC bailout pales in comparison to the amount of current dollars already committed by Congress in 2008.

So where does Triad Properties plan to capitalize on this current disconnect/dislocation and how can you participate?

Triad Properties is going to raise equity to allocate capital for the acquisition and development of two recession resilient property sectors at locations throughout the Southeast United States: Self Storage: a recession resilient asset class and Medical Office: a recession resilient asset class. Also, see Current Strategy.

SELF STORAGE INVESTMENT

• According to Ernst & Young's recent "Riding Out the Storm" report observed in the US markets: "Given the continuing slowdown in the residential housing market, the multi-family and self-storage sectors had the strongest performance.
• According to the National Association of Real Estate Investment Trusts, during 2008, the self-storage REITs have been the best performer of any commercial real estate sector.
• Through September 30, 2008, Self Storage REITs were up 33.79% in 2008. Source: FTSE Group and NAREI Investment Performance by Property Sector and Subsector as of September 30, 2008.

National Real Estate Investor: "Self-Storage Stacks Up Well" Thangavelu 08/08-Excerpts:

• "While Wall Street continues to punish several property sectors due to a stubbornly persistent credit crunch and fears of an eroding economy, the self storage sector is proving to be quite resilient."
• "Despite fears about the housing market, demand for self storage has remained robust."
• A JP Morgan Securities REIT analyst "expects the sector to perform better than any other property types as a defensive play against recessionary conditions."

Wall Street Journal: "Repositories for Rich Returns" Marino 4/27/08-Excerpts:

• "Some investors believe that (self-storage REITS) will benefit from the housing crisis."
• "Industry analysts agree that the sector is likely to hold up well through these economic woes."
• In the article, a senior analyst at Green Street Advisors stated, "More economic distress causes people to rent more."
  

• As the population continues to age, the demand for medical services is experiencing a rapid rate of growth.
• According to The Atlanta Business Journal, dated July 25, 2008, "In an otherwise decidedly dark market, the health-care sector is a beacon of optimism.
• In addition to the aging baby boomers, the articles notes that the sector's expansion is fueled by retiree migration to the Southeast and evolving technology that's transplanting medical care into suburban medical office buildings from expensive hospital settings.
  
  
  

TO DISCUSS OPPORTUNITIES THAT MEET THE ABOVE CRITERIA, PLEASE CONTACT:

Tom Daniel in Atlanta at 770-754-7848

William Stroud or Gerry Shannon in Huntsville 256-551-1000

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Triad Properties Corporation ("TPC") is an Alabama corporation based in Huntsville, Alabama. TPC generally acts as asset manager and/or property manager for affiliated partnerships and joint ventures (which operate as separate legal entities in the states where they conduct business), and TPC in general does not own real estate. As used in this website, the terms "Triad" and "Triad Properties" do not refer exclusively to TPC, but, according to the context used, may refer instead to the partnerships and joint ventures that own the particular property being described, and/or to affiliated management or service companies. For more information, please contact Gerry Shannon at 256-551-1000.