01
About
Varden Capital Advisors
The Firm’s managing principal, Jim Kasim, retains over thirty (30) years of experience in primarily all facets of commercial real estate, including providing advisory and capital markets services to some of the largest real estate companies in the nation. The Firm is focused on providing the maximum amount of value to its clients through a cost-efficient service deployment model, including strategically performing a majority of the technical and administrative services required in a Roll-Up at a low-discounted hourly rate relative to other professional service providers while ensuring that its commission-based compensation for capital markets services is charged at a rate well below its competitors.
02
About
The Roll-Up Process
A Roll-Up can be defined as a series of related transactions that serves to consolidate ownership of properties under a newly formed Delaware limited partnership (the “Operating Partnership”). Existing holders of interests in the existing entities that participate in the Roll-Up receive limited partnership interests issued by the Operating Partnership (“OP Units”) in exchange for their interests in the relevant existing entities. The general partner of the Operating Partnership is a newly formed entity initially controlled by the sponsor. Optimally, either concurrently with, or following completion of the Roll-Up, it is beneficial to all stakeholders that the Operating Partnership and/or the general partner enter into certain capital markets transactions, including but not limited to entering into a revolving credit facility or procuring an institutional capital investment.
03
About
Benefits of the roll-up to stakeholders
- “Crystallizes” the promoted interests of the sponsor
- Improves Liquidity:
- Improves treasury management across the organization
- Improves ability to procure a revolving corporate credit facility
- Improves the ability to procure institutional equity or debenture capital
- Increases diversification for investors among varying properties
- Enhances the collateral from the perspective of lenders
- Tax-free transaction to investors
- Increases acquisition opportunities by enabling the operating partnership to issue OP Units as consideration in tax-deferred like-kind exchange transactions.
