	Kinship Capital	Other Equity Sources
Fundraising	None	Yes
Return Targets	Flexible	Typically Fixed
Hold Periods	Up to 50 Years	Typically less than 7 Years
Cash Needs	None	Varied

Generational Investment Horizon

Kinship’s real estate investment mandate is simple: generate significant capital appreciation over 50+ years. While many investors focus on hold periods less than 5 years and often manage to return “optics”, fundraising cycles, and liquidity, Kinship invests without structural or funding constraints. Investments are only realized when project value has been maximized, thus mitigating inherent cyclical risk in the real estate sector.

Real Estate Values $$$ $

0 YearsYrs

5 YearsYrs

10 YearsYrs

35+ YearsYrs

84% of Investors: Limited to 10 years or less

Kinship Capital: No limit on hold period

Acquisition
Cost Basis

PRIVATE EQUITY FUND: GAIN

3 years after acquiring a property at the an opportune time in the real estate cycle, the fund has leased the vacancy and sells in good market conditions for a small gain in anticipation of their next fundraising cycle.

KINSHIP: GAIN

5 years after acquiring a property, Kinship has leased the vacancy and recognizes that core buyers are paying record prices for stabilized assets and elects to sell for a substantial gain.

PRIVATE EQUITY FUND: LOSS

6 years after acquiring a property, the fund’s investment period has expired following a major market downturn. Disincentivized or unable to wait for recovery, the Fund sells at a loss.

PENSION FUND: LOSS

8 years after acquiring a property, the Pension Fund’s CIO resigns after 3 years of poor portfolio performance. The new CIO alters the real estate strategy and forces a sale at a loss.

REIT: LOSS

10 years after acquiring a property, the REIT has suffered 4 years of poor returns reflected by a low share price. A new management team’s restructuring efforts force a sale at a loss, even as fundamentals are improving.

KINSHIP: GAIN

15 years after acquiring a property, Kinship has acquired additional surrounding parcels and obtained entitlements for the assemblage to build at a higher density. The property is sold to a developer for a substantial gain.

KINSHIP: GAIN

18 years after acquiring a property, Kinship has enjoyed significant cash flow and refinanced the property 3 times. While market conditions are soft, Kinship sells at a gain to refocus on opportunistic acquisitions.

KINSHIP: GAIN

23 years after acquiring a property, Kinship has held through multiple cycles. Recognizing improving market conditions, Kinship contributes the property into a new JV at a gain. The new JV will redevelop the asset for an even bigger gain.

KINSHIP: GAIN

50 years after acquiring a property, Kinship has enjoyed significant cash flow and refinanced the property 8 times, redeploying the loan proceeds into dozens of other properties alongside its original JV partner.

This illustration depicts a single hypothetical real estate investment made simultaneously by a variety of different equity investors (the green bar). The gray bars represent disposition values for other investors, while the orange bars represent disposition values for Kinship.

Silicon Valley R&D Campus

In 2013, Kinship acquired a 16-acre, 350,000+ square foot campus in Santa Clara, California. A single tenant with good credit leases 100% of the property, and was paying a below-market rental rate. The lease runs through 2016, at which time the lease offers the tenant the first of a series of fair-market value options to extend the lease at then market rate. Prior to Kinship’s acquisition, the investment sales brokers struggled to find buyers; typical equity investors such as private equity funds were turned off by the lease. The uncertainty surrounding the tenant’s plans and the lease’s option periods limited buyer interest due to the extended timeframe required to ensure full project stabilization, thus keeping the acquisition pricing attractive. Kinship’s long duration investment horizon provides an excellent platform to unlock the full value of this property over time either through a restructured lease, re-tenanting, redevelopment, or sale to a user. Kinship’s long investment horizon proved to be a substantial competitive advantage in the acquisition of this asset.

Financial Strength & Sophistication

Kinship Capital has leveraged its institutional-scale financial strength, resources, and sophistication to build a nationwide portfolio of real estate across a range of markets. The team’s focus is on Multifamily, Office, Life Science, and Industrial assets. Retail and Hospitality opportunities are considered on a selective basis.

The Pioneer Building

In early 2012, Kinship acquired a 37,000 square foot office building at 3180 18th Street, also known as The Pioneer Trunk Building, in the Mission District of San Francisco, CA. The neighborhood was experiencing gentrification, with new housing and retail investment, but institutional investors largely ignored office opportunities in the submarket. Meanwhile, San Francisco was rapidly attracting a concentration of the Bay Area technology workforce, had a limited supply of existing office space, and is extremely development constrained. Kinship’s deep knowledge of the local submarket paved the way for an investment when the opportunity to partner with Harvest Properties to acquire an existing property at an attractive cost basis presented itself. Following near-term lease expirations, the partnership substantially upgraded the property’s image and functionality, and re-leased the space at considerably higher market-rate rents to a selection of high-quality tenants. The property was sold in 2014 for a gain.

Entrepreneurial Approach

Kinship Capital brings an entrepreneurial approach and contrarian perspective to its investment strategies, which has generated robust risk-adjusted performance through cycles. Partnerships with Kinship offer flexible and tailored investment and joint venture structures to maximize project returns.

Commercial Property Price Index

130

120

110

100

‘06

‘08

‘10

‘12

‘14

‘16

‘18

‘20

2010

Kinship Capital began significant acquisition efforts at the bottom of the market when most investors were unable or unwilling to invest.

225 W Washington

While financial turmoil wreaked havoc on real estate markets, Kinship began a significant acquisitions effort in 2010. In October of 2010, Kinship partnered with Golub & Co. to acquire the debt on 225 West Washington, a 484,000 square foot prime West Loop building in Chicago. Designed by Skidmore, Owings & Merrill and completed in 1987, the property is strategically located in the heart of the West Loop and offers excellent walking access to all mass transit. Its high quality finishes, premier location, and 18,000 square foot column-free floor plates cater to a wide range of small and medium-sized professional firms. Favorable market conditions offered an attractive opportunity to add this property to the Kinship Capital portfolio.

Kinship Capital

The Kinship Advantage

No outside investors. No single investment hurdle. No limit on hold period.

The Kinship Advantage

No outside investors. No single investment hurdle. No limit on hold period.

Generational Investment Horizon

PRIVATE EQUITY FUND: GAIN

KINSHIP: GAIN

PRIVATE EQUITY FUND: LOSS

PENSION FUND: LOSS

REIT: LOSS

KINSHIP: GAIN

KINSHIP: GAIN

KINSHIP: GAIN

KINSHIP: GAIN

Financial Strength & Sophistication

Entrepreneurial Approach

2010