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From YouTube: Collateral Onboarding Call #38: REIF DROP: Commercial Real Estate Assets | Wednesday, September 29
Description
REIF intends to establish relationships with a number of trusted and reliable asset originators across North America with the intent of supplying risk capital to finance and obtain loan assets backed by commercial real estate. These assets are expected to yield above-market risk-adjusted returns and bear material collateral coverage to protect the assets from downside risk.
The REIF Pool will help finance value-add commercial real estate projects with an average loan amount of $10,000,000 (ten million) for the 1st position product and $500,000 (five hundred thousand) for the 2nd position product. The 1st position product is for acquisition, equity takeout, and refinancing of commercial real estate loans. The 2nd position product is for renovations, development, or leasehold improvements of the properties.
A
Hello,
everyone
welcome
to
another
collateral,
onboarding
call
from
maker
dao.
My
name
is
juan
I'm
the
facilitator
from
the
ses
core
unit,
and
today
we
have
the
reef
drop,
so
commercial,
real
estate
assets.
We
have
the
team
that
are
going
to
be
presenting
and
telling
us
everything
about
about
this
token,
so
ben.
If
you
want
to
take
it
away.
B
Yeah
for
sure,
thank
you,
juan
so
hello
and
welcome
collateral,
onboarding
call
for
for
reefs.
I
am
excited
to
to
present
to
you
today.
I
feel,
like
we've
got
a
tremendous
opportunity
here
for
for
a
growing
market
and
a
real
opportunity
to
take
considerable
market
share
away
from
kind
of
existing
banks,
both
kind
of
tier
two
credit
unions,
as
well
as
some
class
a
stuff,
and
so
it's
quite
a
bit
of
an
opportunity,
some
good
products.
B
Looking
forward
to
sharing
that
information
with
you
today,
I
also
have
our
first
asset
originator
on
the
call
fortune
foster
so
joined
by
ceo
and
partner,
joe
accardi,
as
well
as
partner
and
chairman
of
the
advisory
board,
bensel
hoberg.
So,
gentlemen,
if
you
just
say
hello,
just
to
introduce
yourself.
B
Awesome
so
we
will
we'll
hear
from
them
a
little
later
in
the
presentation,
but
I
just
I'll
start
things
off
and
just
talk
a
little
more
about
the
wreath
side.
So
reef
financial
is
a
newly
formed
entity,
we're
facilitating
the
kind
of
issuance
of
commercial,
real
estate
loans
to
mid-market
private,
real
estate
investment
managers
in
north
america,
starting
in
canadian
markets.
B
B
B
To
talk
a
little
bit
more
about
the
reef
pool,
it's
essentially
made
up
of
two
products,
a
first
and
second
position
product
which
I'll
talk
about
in
the
next
couple
of
slides.
The
structure,
as
I
had
mentioned,
ninety
percent
being
the
drop
ten
percent
being
kind
of
tin
tokens,
and
then
there
is
kind
of
further
alignment
in
the
reef
pool
where,
whereby
reef
will
provide
10
of
the
capital
through
the
pool
and
then
on
the
the
asset
originator
side
on
forge
and
foster
side
with
every
asset
that
they
own.
B
So,
to
talk
a
little
bit
more
about
the
products,
two
products
like
I
mentioned,
there's
a
first
position
product
and
it's
used
for
acquisition,
refinance
of
existing
assets
either
for
equity
takeout
or
for
cost
savings.
On
that
first
position,
capital-
and
then
I
do
want
to
stress
kind
of
with
both
products-
is
that
this
is
kind
of
more
like
growth
capital.
B
The
rates
for
this
product
be
somewhere
between
the
four
to
six
percent
and
then
the
second
position
product
is
used
for
renovations,
development
or
leasehold
and
tenant
improvements,
essentially
all
used
for
construction
for
value-add
activities
to
the
existing
asset.
A
lot
of
the
time
with
the
construction.
There's,
there's
draw
schedules
involved,
and
so
it
won't
be.
The
entire
amount
will
be
provided
for
that
construction.
B
So
the
collateral
for
the
reef
pool,
essentially
what
reef
is
acquiring
in
terms
of
the
asset
are
are
those
two
are
those
two
products?
Are
charges
against
the
property
so
similar
to
a
mortgage
we'll
have
that
that
priority
charge
on
value-add
commercial,
real
estate
projects
for
the
type
of
properties
that
we're
looking
for
they're
all
income,
producing
commercial
and
industrial
properties?
So
there
is
existing
income
coming
in
that
can
that
can
handle
the
the
payments
of
those
those
mortgages?
B
I
touched
on
it
briefly
at
the
beginning,
but
there
is
some
kind
of
co-investment
as
a
part
of
this
pool,
so,
as
I
mentioned,
reef
committing
to
ten
percent
of
the
capital
as
part
of
the
pool,
we
have
two
million
of
dye
ready
to
to
kind
of
feed
the
pool.
I
do
wanna
stress
that
kind
of
the
existing
structure,
with
the
asset,
originator,
forge
and
foster,
has
been
ongoing
for
kind
of
a
long
period
of
time,
and
so
it's
not
a
entirely
new.
B
B
To
talk
a
little
bit
about
kind
of
mitigating
risk
as
a
reef
both
kind
of
now
and
into
the
future,
as
as
we
we
do
scale,
we
are
using
a
kind
of
a
third-party
verification
of
property
values
for
for
assessing
the
value
of
each
asset.
Obviously
there'll
be
some
underwriting
on
reef's
side,
but
we'll
want
to
rely
on
a
a
third-party
verification.
B
I
talked
a
little
bit
about
the
loan
to
values
already,
but
then
being
70
for
the
first
position,
product
and
80
for
the
second
position
product
and
then
the
use
of
funds
is
interesting.
The
use
of
funds
I
mentioned
kind
of
briefly
at
the
beginning
as
well,
but
so
definitely
for
the
second
position.
Product
being
kind
of
the
value
add
loan.
B
It's
only
used
for
activities,
kind
of
directly
increasing
the
value
of
the
property,
whether
that
be
tenant,
incentives,
construction
or
just
kind
of
build
outs
of
the
kind
of
on
the
existing
building,
so
definitely
kind
of
value-add.
With
that
second
position,
product
we'll
also
do
checks
both
on
the
entity,
borrowing
as
well
as
the
property
to
ensure
there's
no
leads
and
that
all
current
obligations
are
in
good
standing.
B
Finally,
under
underwriting,
so
we
do
have
kind
of
14,
plus
years
experience
and
underwriting
commercial
industrial
real
estate,
the
issuer
being
reef
will
underwrite
kind
of
all
the
owners.
Financials
and
the
income
projections
for
the
property
to
ensure
that
there
is
one
opportunity
to
grow
the
value
of
the
asset,
but
two
kind
of
sufficient
income
to
to
be
able
to
handle
the
the
interest
payment.
B
And
so
with
that,
I
do
want
to
hand
it
over
to
to
joe
icardi,
but
just
before
I
do
I'll
give
a
kind
of
a
brief
high
level
of
fortune
foster
the
initial
asset
originator
through
the
reef
pool
as
a
14
plus
year
track
record
of
successfully
investing
in
commercial
and
residential
real
estate.
Currently
does
just
change
quite
quite
frequently
does
grow
quite
fast
in
terms
of
aum,
but
currently
there's
250
million,
canadian,
canadian
and
assets
under
management.
B
D
Thank
you
ben,
and
thank
you
for
the
opportunity
to
speak
today.
One
thing
that's
for
sure
in
the
past
couple
years,
especially
is
the
world,
is
changing
fast
and
that's
no
different
than
our
business
and
we've
seen
quite
a
bit
of
of
change,
and
this
is
something
that
we're
excited
about
to
be
part
of.
D
So
for
the
past
few
years
you
see
that
we
have
our
track
record
up
here
in
front
of
us.
Overall
we've
we've
gotten
to
a
33
ir
over
the
past
five
years.
If
you
notice
the
exit
date
column,
you
can
see
that
the
earliest
one
was
2016
or
2015
there.
So
these
are
closed
investments
that
we've
done
in
the
region,
primarily
in
the
hamilton
area,
just
to
go
through
some
themes
and
some
strategies
that
have
worked
for
us
here.
D
We've
done
the
brick
and
beam
post
mixed
use,
communities,
including
retail
and
apartments,
and
also
some
some
retail,
traditional
retail
and,
more
more
recently,
we've
been
getting
into
some
flex
space
industrial.
If
you
go
into
the
the
next
slide
you
can
see.
This
is
what
hasn't
closed.
Yet
this
is
currently
on
our
books
right
now,
part
of
the
250
million
assets
under
management.
D
We
take
go
into
growth
assets
which
we're
finding
here
are
some
of
the
main
targets
that
we're
going
after
right,
now,
value-add
flex,
industrial,
really
good
asset
class,
simply
because
almost
any
tenant
can
locate
in
there
and
more
and
more
office
space
or
flex
users
are
starting
to
take
over
these
one-story
plans
rather
than
being
in
traditional
offices.
So
it's
been
a
really
successful
as
a
class
for
us
when
we
see
growth
in
that
next,
five
years,
tech
and
medical
office.
D
This
is
one
that
we're
in
we're
near
mcmaster,
university
and
so
there's
a
lot
of
research
and
a
lot
of
educated
companies
that
are
coming
into
the
area
are
growing
out
of
this
area.
So
we've
invested
in
in
the
mcmaster
immigration
park
area.
Another
area
we
see
growth
in
his
film,
that's
one
where
you
know
we've
been
able
to
see.
This
is
with
eon,
studio
group-
and
this
is
a
district.
That's
close
to
the
to
toronto
and
hamilton
has
a
go
train
station
there.
D
Plus
film
is
one
of
the
fastest
growing
industries
in
hamilton.
Right
now
we
saw
that
early,
we're
invested
in
eon,
studio
group.
We're
also
part
of
the
hamilton
film
studios,
which
is
another
group
that
is,
that
is
investing
in
film
so
with
netflix
and
disney,
and
everything
else
that's
happening.
Hamilton
has
some
tax
credits
that
are
beneficial
towards
toronto
and
toronto.
Has
the
toronto
film
festival
so
we've
been
investing
in
that
successfully.
D
That
has
continued,
but
it's
continued
so
much
so
that
you
know
prices
are
getting
into
the
millions,
so
it's
kind
of
not
approachable
by
most
by
most,
I
guess
middle
class
middle
upper
class
individuals,
so
we've
invested
in
in
these
resorts,
which
are
typically
rv
resorts,
which
really
haven't
been
repurposed
since
the
50s
or
60s.
So
we've
been
investing
in
those
successfully
and
the
demand
has
been
incredible.
D
Another
thing
that
we've
been
doing
is
tiny
home
manufacturing.
I
personally
believe
that
the
the
the
housing
crisis
affordability
problem
can
be
solved
through
manufacturing
housing.
I
think
there's
67
acres
per
canadian
in
canada
right
now,
there's
no
really
land
issue.
It's
really
just
about
constructing
these
units
in
canada.
You
can
only
have
construction
season
about
eight
months
a
year,
but
in
a
factory
covered
you
can
you
can
build
365
24
hours
a
day,
don't
worry
about
being
too
hot
or
being
rainy.
D
This
is
something
that's
really
interesting.
I
mentioned
the
the
fast
positive
change
in
the
past
two
years
in
our
business
we've
gotten
into
some
interesting
sorts
of
capital
front
funder
by
properly
and
addie
we're
currently
addie's
biggest
biggest
partner.
I
think
they're,
the
biggest
alternative
digital
capital
raiser
in
canada
right
now,
and
we've
done
a
handful
of
successful
deals
with
them.
So
we
see
huge
growth
over
there
and
then
another
big
thing
that
foreign
foster
has
been
a
leader
in.
Is
this
alternative
income?
D
So
I
mean:
there's
always
the
monthly
tenant
paying
your
rent
but
we're
finding
through
airbnb
and
through
you
know,
some
creative
uses
with
made
in
millworks
and
and
the
film
district
we've
been
able
to
add
quite
a
bit
of
gross
income,
and
we
think
that's
just
the
start
of
these
alternative
incomes
in
digital
capital.
So
we're
happy
to
be
the
leaders
in
both
an
intervention.
B
Awesome,
thank
you
joe.
Definitely,
it's
always
kind
of
know
when
you're
on
the
inside
kind
of
the
exciting
things
that
are
happening,
but
anytime,
we
explain
it
to
the
people
outside
of
the
of
the
business.
It's
it's
certainly
kind
of
quite
a
bit
going
on
and
definitely
on
on
trend
and
capitalizing
on
lots
of
value.
B
B
B
The
point
do
want
to
stress
here:
is
that
definitely
significant
income
in
the
property
on
acquisition?
There
was
a
going
in
cap
rate
of
5.7,
and
then
there
were
some
existing
vacancies,
but
all
the
tenants
were
on
month-to-month
tenancies,
and
so,
as
you
can
see,
just
kind
of
from
the
overview
here
like
this
type
of
product
is,
is
not
really
looked
on,
favorably
from
kind
of
in
a
class
lender,
especially
if
not
the
the
lack
of
leases,
and
so
that's
kind
of
where
the
the
opportunity
lies
for
reef.
B
B
This
is
what
it
would
look
like
and
so
acquisition
price,
like
I
mentioned
nine,
and
a
half
million-
closing
costs
at
about
five
hundred
thousand
construction
costs,
estimated
around
eight
hundred
thousand
and
with
carrying
costs
of
around
a
hundred
thousand.
So
the
total
capital
required
be
ten
point.
Nine
million
the
structure
would
be
followed
as
such
there'd
be
a
first
position,
financing
of
seven
and
a
half
million.
B
In
this
case,
this
would
be
a
a
great
opportunity
for
a
reef
type
first
position
product,
as
I've
mentioned
before,
is
the
lack
of
leases
and
the
general
state
of
the
building
would
not
let
a
first
position
a
typical
class,
a
bank
type
first
position
lender
lend
on
it,
and
so
in
this
case
the
deal
was
structured
with
a
vendor.
Take
back
mortgage
being
that
the
seller
provided
the
first
position
financing
to
help
facilitate
the
deal.
B
There's
a
second
position:
loan
of
about
900
000
fortune,
foster
investor
capital,
made
up
of
2
million
and
forging
foster
capital
of
of
500
000,
with
total
capital
being
kind
of
around
that
10.9
million
number,
so
that'd
be
kind
of
the
the
going
in
structure.
The
the
initial
kind
of
assessment
that
fortune
foster
would
would
kind
of
go
to
market
for
the
capital
raise
as
I'll
share
later
on.
It
did
change
a
little
bit.
There
was
a
second
position
loan
that
was
increased.
B
The
investor
equity
cash
equity
checks
were
a
little
bit
different,
but
this
kind
of
just
kind
of
the
going
in
type
sample
structure,
and
so
this
is
where
the
kind
of
the
distributions
in
the
waterfall,
as
I
touched
on
earlier
kind
of,
get
outlined
in
the
event
of
the
exit.
There'd
be
a
repayment
of
the
first
position.
Loan,
definitely
the
first
position
security
and
then,
secondly,
be
paying
out
that
second
position.
B
Loan
there'd
be
return
of
the
investor
capital,
not
the
forge
and
foster
capital,
as
well
as
a
ten
percent
hurdle
hurdle
rate
to
those
investors
and
then
from
there
fortune
foster
catches
up
to
that
return
of
investor
capital,
as
well
as
the
10
hurdle.
And
then
the
remaining
amount
is
split.
50
50
between
forge
and
foster
investors
and
forge
and
foster.
B
I've
never
really
put
in
too
much
work
into
the
building,
there's,
probably
not
too
much
debt
on
the
property
and
so
whatever
rent
they.
They
cash
is
all
kind
of
bonus
to
them.
They're,
not
really
looking
at
maximizing
value
and
that's
kind
of
the
the
bread
and
butter
type
property
that
we
would
look
to
acquire
being
forged
and
foster,
and
so
this
is
the
kind
of
the
after.
So
this
is
the
work
that
fortune
foster
would
do
to
the
property
to
kind
of
increase.
B
That
value,
first
and
foremost,
is
kind
of
a
real
undertaking
in
the
first
kind
of
90
to
120
days.
There's
a
rebrand
of
the
of
the
property
to
the
the
peak
there,
commercial
cul-de-sac,
there's
a
upgrades
to
the
exterior,
including
kind
of
any
kind
of
roof
work
or
mechanical
engineering
that
needs
done,
but
definitely
kind
of
adding
to
the
or
giving
the
the
property
a
bit
of
a
face
lift
through
for
a
paint
there's.
B
Some
murals
there
outlined
as
well
to
the
kind
of
local
birds
in
the
air
paying
homage
to
to
that,
and
but
just
really
kind
of
showing
pride
and
ownership
and
making
a
big
impact
in
the
first
kind
of
90
to
120
days.
Just
helps
with
kind
of
keeping
the
momentum
of
the
asset
rolling.
It
helps
with
getting
new
tenants
in
that
kind
of
thing,
and
then
you
can
see
kind
of
an
example
of
the
kind
of
the
space
in
the
end
state.
It's
not
doesn't
really
take
too
much.
B
B
And
then,
like
I
mentioned,
this
is
kind
of
like
a
sample
distribution.
So,
as
I've
mentioned
before,
like
the
specific
figures
haven't
been
finalized
yet
they're
still,
the
sale
was
pretty
recent.
So
there's
some
some
figures
to
still
update,
but
we're
expecting
a
2.13
x,
investor
equity,
multiple
on
the
investment
and
then
the
the
breakdown
of
the
waterfall
be
kind
of
repaying.
That
first
position
in
this
case
first
position
btb
to
the
to
the
owner.
B
The
second
position,
payout
return
of
investor
capital,
ten
percent
hurdle
to
investors
per
annum,
and
then
the
fortune
foster
catch
up.
The
remaining
amount,
split,
50
50
between
forge
and
foster
investors
and
forge
and
foster.
So
this
was
actually
a
quite
a
successful
investment.
It
was
originally
underwritten
as
a
four-year
equity.
Investment
ended
up
being
a
one-year
bought
out
early.
I
do
want
to
stress
like-
and
this
is
the
equity
type
structure.
B
So,
to
talk
a
little
bit
more
and
kind
of
expand
upon
upon
reef's
growth
plan,
we
are
starting
with
our
initial
astrologer
being
forging
foster
that's
about
250
million
in
aum,
with
forge
and
foster.
So
there's
quite
a
bit
of
existing
aum
that
could
be
could
be
financed
through
the
pool,
and
so
that's
definitely.
The
kind
of
first
stage
is
just
working
with
that
initial
asset
originator.
B
But
from
there
we
definitely
see
this
type
of
product
being
readily
accepted
by
the
canadian
markets
and
definitely
kind
of
falls
under
similar
types
of
first
position.
Lender
requirements
across
canada,
and
just
with
our
experience
in
the
canadian
markets,
we'll
be
able
to
see
kind
of
where
there's
a
lot
of
kind
of
value
to
be
derived,
and
we
can
definitely
scale
this
product
quite
efficiently
across
canada
and
really
get
a
lot
of
security
under
management
quite
quickly
and
efficiently.
B
B
It
needs
to
be
kind
of
the
typical
groups
that
we'd
look
to
to
go
out
and
and
and
bring
on
as
additional
asset
originators,
and
I
wanted
to
highlight
there
are
more,
but
I
wanted
to
highlight
kind
of
the
different
types
of
asset
originators
that
we
we
have
in
our
stable,
the
first
being
kind
of
similar
to
forging
foster
being
kind
of
your
your
typical
renovator
to
provide
value.
Add
being
mallium
so
they're.
An
asset
manager
based
here
in
hamilton,
with
kind
of
significant
holdings.
B
Be
someone
that
we'd
look
to
kind
of
bring
into
this
pool
in
addition,
harmony
resorts,
so
this
is
actually
also
a
kind
of
a
new
venture
that
fortune
foster
is
undertaking.
It's
co-owned,
though
fifty
percent
by
fortune
foster
and
fifty
percent
by
wavecom
capital,
a
group
out
of
toronto.
But
this
is
the
the
kind
of
the
the
entity
or
the
originator.
That's
going
to
be
tackling
the
kind
of
the
cottage
land
type
investments
that
joe
had
outlined.
B
So
with
that
and
to
talk
more
about
the
the
kind
of
the
expansion
plans
and
just
to
go
over
the
the
canadian
market
and
the
in
the
north
american
market.
I
I'll
hand
it
over
now
to
vince
holberg
who's
partner,
like
I
mentioned
partner
and
chairman
of
the
advisory
board
at
forge
and
foster.
But,
as
you
can
see,
has
quite
an
impressive
resume
and
very
lucky
to
have
him
as
a
part
of
the
forge
and
foster
partnership.
And
so
that's
all
I'll.
C
C
Investment
board
in
london
and
I've
also
been
involved
in
in
retail
and
a
global
investing
job
in
germany
fund
in
the
past,
and
I
really
want
to
take
the
time
because
I
know
it's
a
global
audience
to
say
to
explain
to
you
why
why
investment
in
canada
or
in
ontario
is
is
relevant
on
a
global
perspective,
why
this
is
an
attractive
region
and
ben?
If
you
can
hit
the
slide,
I
mean
what
you
see
here
is
the
fastest
growing
cities
in
north
america.
C
I
think
given
given
the
politics
and
the
immigration
policy
of
the
two
countries.
What
you
see
here
is
that
four
out
of
ten
you
know,
cities
in
north
america
are
canadian
with
the
top
growing
absolute
numbers
of
population.
You
know,
obviously,
some
of
these
canadian
cities
here
are
smaller
than
toronto.
So,
on
a
percentage
level,
they're
growing
even
faster,
but
you
know
toronto.
C
The
gateway
cities
like
toronto-
montreal
vancouver,
as
you
can
see
here,
are
the
net
the
beneficiaries
of
an
incredible
international
immigration,
and
you
know
maybe
a
lot
of
it.
You
know
which
would
have
geared
in
the
last
couple
decades
towards
the
us
a
lot
of
those
people
from
all
over
the
world,
including
myself,
you
know,
are
immigrating
to
canada
because
of
you
know
pos.
You
know
positive
migration
policies
and
you
know
where
are
they
going?
I
mean
basically
they're
going
to
toronto,
montreal
and
vancouver
and
the
europeans
maybe
more
to
toronto.
C
You
know
and
then
in
montreal
and
then
the
the
asian
population
more
towards
vancouver-
and
you
see,
there's
an
incredible
population
inflow,
and
you
know,
when
you
add
up
these
numbers
here,
there's
there's
probably
four
to
five
million
international
immigration
coming
to
canadian
cities
and
the
population
is
only
38
million
people,
so
you're
looking
at
you
know,
12
percent
over
four
years
or
three
percent
of
growth.
You
know
per
annum
in
the
cities,
and
you
know
this
is
a
g7
country
with
lots
of
stability.
C
You
know
much
faster
than
the
national
average
is
because
the
the
cities
are
such
magnets
for
intercultural
immigration
and
and
the
liberal
lifestyle.
So
next
one
from
a
real
estate
perspective.
You
can
see
this
reflected
here
where
you
know
the
gateway.
Cities
have
the
best
parameters
and
the
best
real
estate
environment.
You
know
compared
to
the
more
prairie
and
and
rural
areas
of
canada,
and
and
so
you
can
see
that
both
from
investor
demand
capital
available
development
opportunity.
C
Next,
one
is
more:
you
know
what
we
call
the
asset
classes
or
food
groups.
You
you
see
here
both
you
know
what
we
do
a
lot
as
as
asset
classes,
if
you
want
is,
is
warehousing
medical,
you
know
flex
offers
you
know.
All
of
these.
You
know
mentioned
here
in
the
green
investment
prospects,
and
you
also
see
that
you
know
kind
of
our
research
development.
You
know
low
income
oriented,
you
know
rb
living,
you
know
all
these.
You
know
new
asset
classes
that
provide
good
income.
C
Metrics
good
cash
flow
are
actually
quite
successful.
You
know
here
in
canada
and
in
our
region
and
and
then
there's
this-
you
know
incredible
demand.
We
had
on
that
on
the
slide
before
for
fulfillment
center
and
logistics,
and
we
are
not
primarily
in
this
we're
in
warehouse
space,
but
not
in
logistics
space.
But
when
you
just
look
at
the
logistics
market
that
has
taken
off
globally,
where
you
know,
there's
really.
No,
no
new,
you
know
no
place
to
be
found.
C
C
The
cap
rates
are
going
down
globally
and
also
here
and
and
therefore
you
know,
this
market
is
growing
so
aggressively
that
our
space,
which
is
often
kind
of
warehousing,
is
that
is
existing
and
below
replacement
cost
is
attracting
a
lot
of
users
and
you
know
it
pushes
our
rents
up
and
then
pushes
our
returns
up.
And
you
know
our
property
is
really
you
know.
Well
cash
flowing
and
the
cap
rates.
You
know
we're
buying
between
five
and
six
cap
rates.
C
You
know
these
assets
and
if
you
look
at
you
know
how
the
cap
rates
have
compressed
in
in
in
the
united
states
or
in
europe
on
this
asset
class.
You
know
down
to
you,
know
three
and
a
half,
for
you
know
across
the
regions
with
much
higher
rents,
I
think
you're
getting
in
at
a
very
attractive
price,
both
on
a
you
know,
return
level
but
also
an
absolute
level
per
square
foot.
So
so
we
we
think
it's
an
attractive
region.
It's
basically
growth
market.
C
B
A
E
B
Yeah,
for
sure
I
mean
it's,
it's
it's
a
separate
two
separate
entities
forge
and
foster
will
be
the
first
asset
originator
into
the
reef
pool,
but
obviously
there's
relationship
there
and
and
myself
being
a
partner
with
fortune
foster
as
well
as
oh
as
part
of
reef.
So
there's
there's
a
there's,
a
kind
of
a
a
relationship
there,
but
they'll
be
structured
as
two
different
entities.
B
Fortune
foster
is
the
asset
originator,
so
they
have
they'll
be
purchasing.
The
asset
reef
would
provide
capital
to
to
forge
and
foster
for
the
acquisition
refinancing
of
the
assets
or
as
well
as
the
value-add
loans,
and
so
they
would,
they
would
manage
the
asset.
They
would
use
that
capital
to
grow
the
value
and
then
be
paying
an
interest
rate
similar
to
like
a
mortgage
back
to
back
to
wreath.
E
Yeah
all
right,
yeah,
second
question:
I
don't
know
if
I'm
perhaps
anyone
else
want
to
say
something
more,
it
has
to
do
with
the
the
time
horizon
horizon
for
the
lending.
I
saw
briefly
on
your
chart.
It
varied
from
two
months
to
four
years.
Could
you
talk
a
little
bit
about
what
you?
What
are
you
aiming
at
here.
B
Yeah
for
sure
I
realized
that
I
probably
made
it
a
little
more
confusing
than
I
needed
to
be
in
in
terms
of
the
presentation
afterwards,
but
the
information
that
was
provided
under
the
kind
of
the
example
deal
structure
that
was
kind
of
forge
and
foster
investor
timelines.
And
so
that's
on
the
equity
investment
side
through
their
existing
existing
pool
of
investors
for
reef.
Specifically,
the
loans
will
be
structured
on
12-month
terms
with
the
option
to
renew
for
an
additional
12
months.
F
B
Yeah,
basically,
for
the
the
structuring
of
the
special
purpose,
vehicle
coral's
kind
of
handling
that
side,
as
well
as
the
the
relationship
with
centrifuge
and
kind
of
building
the
product.
But
reef
itself
will
be
a
stand-alone
entity
and
and
will
handle
the
the
day-to-day
and
the
the
management
of
the
fund.
B
F
I
think
one
thing
I
did
want
to
ask:
if,
god
forbid,
there
became
some
kind
of
financial
distress
in
an
investment.
You
could
wind
up
in
two
different
seats.
One
is
an
equity
investor,
the
other
is
a
debt
investor
where
in
a
sense,
how
would
you
manage
that?
Because
you
have
two
sets
of
interests:
they're,
not
always
aligned.
B
Yeah,
for
sure
I
mean
the
the
way
that
the
charges
would
work
on
the
reef
side.
Kind
of
the
charges
tied
to
the
asset
means
that
it'll
always
be
first
lost
capital
in
the
event
of
that,
there's,
there's
kind
of
there's
a
default
or
some
something
that
that
that
happens
to
the
to
the
the
the
funding
that
makes
reef
have
to
kind
of
work
out
a
default
agreement.
F
B
Yeah
I
mean
for
for
on
forge
and
foster's
side
like
we.
We've
never
had
a
an
instance
where
there
would
be
a
default
in
terms
of
a
mortgage.
We've
had
investments
that
maybe
didn't
go
as
well
as
we
had
hoped,
but
it
only
affected
what
like
our
fortune,
foster
the
equity
on
that
side,
but
no
defaults
to
date,
and
so
definitely
us
as
an
as
as
forge
and
foster.
B
We
have
we're
getting
to
a
size
and
a
scale
now
where
there
there'd
be
no
reason
for
us
to
kind
of
not
pay
out
that
first
position
charge
and
take
the
hit
as
a
as
a
corporate
entity
for
that
individual
property
versus
versus
kind
of
the
the
portfolio
as
a
whole.
Right,
and
so
I
mean,
I
think,
both
products
are
aligned
in
terms
of
the
kind
of
on
the
success
of
the
investment
and
we'll
definitely
ensure
in
the
structuring
of
the
investment
that
this
is
treated
like
any
other.
B
C
B
F
C
Maybe
I
can
hear
I'm
only
speaking
for
forza
first
as
a
product
provider,
but
you
know
the
nice
thing
you
have
is.
Is
you
know,
first
of
all,
ben
is
a
minority
partner
in
fortune
foster?
So
it's
not.
You
know
it's
not
like
he's
he's
the
biggest
shareholder
here,
but
but
also,
of
course,
you'll
have
the
comfort
that
in
his
underwriting
he'll
always
look
for
you
know,
as
a
cio
of
fortune
foster
he'll
always
look
for
deals
where
his
equity
is
covered
right.
C
So
you
know,
since
you
are
senior
to
him,
you'll
be
more
protected
and
he'll
look
out
for
you,
so
there's
probably
a
benefit
in
the
underwriting
in
the
case
of
dispute.
You
know
a
lot
of
it
because
this
is
registered.
That
you
know
is
really
in
a
more
court
procedural
way.
He'll
have
to
do.
You
know
everything
he
has
to
do
as
ceo
of
the
of
the
lender
and
and
make
sure
that
he's
getting
getting
his
money
back.
C
F
D
For
sure
yeah,
so
typically
we
buy
income
with
upside,
and
that
means
for
us
is
we're
usually
buying,
as
vinson
pointed
out,
between
five
and
seven
percent
cap
rates
on
closing,
with
existing
tenants
and
our
goal
as
asset
managers
and
adding
value
is
to
make
those
five
and
seven
caps,
seven
to
ten
caps.
Add
the
value
to
the
property
through
some
of
the
initiatives.
Ben
was
talking
about
to
improve
the
property
and
then,
at
that
time,
that's
where
the
property
value
increase
comes
from.
D
I
know
we
do.
We
do
work
with
banks,
so,
as
ben
pointed
out
earlier,
our
typical
an
acquisition
would
probably
be
a
credit
union
which
is
known
as
a
b
lender,
but
a
lenders
schedule.
A
banks
are
also
involved
as
well,
depending
on
the
season
and
the
mood
sometimes
they're,
more
aggressive,
sometimes
they're,
less
aggressive,
but
in
general,
credit
unions
are
always
in
the
game
which
I
I
believe
ben
was
pointing
out,
was
trying
to
be
replaced
at
this
time.
B
B
F
C
C
So
there
are
certain
elements
where,
if
you
want
an
a
lender
from
both
sides
and
from
how
the
leases
and
the
asset
is
structured,
where
they
just
need
a
bit
more
comfort
and
time
where,
basically,
after
our
you
know
initial
work
of
a
year,
you
have
stabilized
the
asset
to
a
level
where
you
have
now
longer
leases
a
more
secure.
You
know
kind
of
tenant
base,
you
have
the
operating
cost
singled
out.
So
it's
it's
a
much
more
easy
to
understand
than
product
four
for
an
a
bank.
F
D
Yeah
for
sure
and
yeah
keeping
updated
research
is
really
important
to
us.
I
think
that's
huge
in
our
play
into
the
rv
resorts
and
the
manufactured
homes
right
now
is
you
know
with
being
able
to
work
from
anywhere.
We
find
a
lot
of
opportunity
in
some
of
these
beautiful
ontario
locations
all
across
ontario.
F
B
So
so
that,
like
I
mentioned
the
initial
asset,
originator
being
being
forged,
foster
and
so
there'll
be
a
number
of
different
financing
products
that
are
provided
to
supporting
foster.
But
then
we
definitely
are
interested
in
scaling
the
the
pool
up
to
include
other
asset
originators
across
canada
and
go
from
there.
But
yeah
fortune
foster
being
the
initial
asset
originator,
obviously
having
the
relationship
there
and
the
comfort
around
the
the
kind
of
the
initial
assets
to
be
bringing
into
the
pool
and
and
certainly
quite
a
bit
of
scale.
F
B
Yeah
there
will
be
for
sure
I
think,
kind
of
how
we
define
it
is
it's
it's
based
on
the
asset
class,
and
so
I
would
say
that
they'll
be
similar
to
other
kind
of
mortgage
funds.
There'll
be
a
percentage
allocated
towards
kind
of
our
our
our
standard,
offering,
which
should
be
more
on
the
commercial
industrial
being
made
up
of
like
the
induct,
the
flex,
industrial
type
products,
the
office,
medical
type
products
and
then
they'll
be
they'll,
be
kind
of
the
the
growth
areas
being
the
the
trailer
parks.
B
F
Let
me
ask
one
other
question:
if
I
may
sorry
in
terms
this
is
probably
a
fortune
boston
question,
have
you
had
what
experience
have
you
guys
had,
since
I
guess
your
beginning,
around
workouts
financial
distress,
and
how
do
you
typically
manage
those
if
you've
had
any
of
those
situations?
How
do
you
manage
them,
and
I
guess
the
related
question
is
how
do
you
typically
structure
a
deal?
You
know
with
covenants
and
triggers
to
get
yourselves
at
the
table.
You
know
in
a
timely
manner
to
try
to
work
your
way
out.
B
F
The
underlying
risk
is
really
the
tenants
yeah
I
mean,
but
you
get.
Hopefully
the
collateral
backs
it
up,
but
yeah.
How
do
you
deal
with
tenants?
You
know
in
financial
distress
and
what's
the
typical
approach
and
your
experience,
that's
what
I
really
want
to
hear,
because
at
the
end
of
the
day,
these
assets
are
only
valuable.
If
you
have
tenants
there
that
want,
want
the
space
and
want
to
pay
rent
and
are
able
to
pay
rent.
B
B
So
the
upfront
investment
on
our
side
is
is
capped
at
a
at
a
at
a
certain
amount,
whether
if
it's
through
like
attendance
and
a
program
or
a
build
out
we'll
we'll
only
go
up
to
we're
typically
somewhere
between
10
to
15
of
the
the
rental
amount
received
over
the
duration
of
the
contract,
and
as
part
of
that,
we
do
want
to
see
them.
Providing
investment
into
the
into
the
unit.
B
So
there'll
be
a
kind
of
a
work
attendant
incentive
or
a
renovation
plan
for
the
unit
and
it'll
be
kind
of
expressed
on
both
sides
who
is
responsible
for
each.
They
want
to
see
that
there's
at
least
some
capital
committed
from
investment
into
the
space
from
the
tenants
side
and
then
and
then
in
terms
of
the
ones
where
we
we've
kind
of
run
into
issues
and,
and
certainly
it's
a
it's
a
pressing
topic.
B
It
was
a
pressing
topic,
probably
kind
of
12
months
or
so
ago,
and
covet
hit
and
and
a
lot
of
the
small
businesses
were
were
shut
out
I
mean,
fortunately,
the
federal
government
was
quick
to
provide
kind
of
covert
relief
loans
towards
rent,
but
that
was,
but
that
was
definitely
a
trying
time
for
a
lot
of
businesses.
We
we
generally
do
it
on
a
kind
of
a
couple
of
ways.
B
B
But
yeah
there's
some
security
there
on
the
individual
or
the
corporation,
depending
on
the
credit
there
and
and
in
some
cases
we
just
say
no
to
tenants
that
don't
have
sufficient
credit
or
maybe
have
some
kind
of
through
some
research
of
looking
at
historical
information.
They've
had
some
issues
like
this
in
the
past,
I
will
say
no
to
those
that
are
a
bit
of
a
kind
of
a
risk
in
terms
of
that
that
side,
but.
F
D
Less
than
ten
percent
less
than
ten
percent
yeah
in
the
manufactured
home
situations
pretty
much
zero
percent
because
they
don't
pay,
you
can
take
away
their
trailer,
so
you
even
have
that
kind
of
like
wow,
like
ben's
kind
of
alluding
to
we
often
have
mechanisms
where
it's
in
everyone's
best
interest.
That
is
pay,
including,
including
the
federal
government
supporting
in
this
recent
crisis.
D
So
I've
been
really
impressed
by
the
resiliency
of
of
payments
on
that
basis
and
the
other
thing
about
hamilton's,
the
most
diversified
economy
in
canada,
so
we
do
have
one
thing
I've
noticed
is:
when
tenants
have
quit
our
units,
it's
also
it's
often
a
knowledge
economy
or
like
a
new
industry.
That's
just
moves
in.
So
it's
really
resilient.
In
that
way,.
F
D
Yeah,
it's
typically
like
somebody
was
throwing
drums
or
like
boats
and
then
like
now,
it's
like
a
it's
like
a
a
drone
company.
You
know
what
I
mean
like
it's
it's
been
because
the
the
area
is
growing
fast
and
the
knowledge
economy
is
definitely
in
the
veins
of
hamilton
now
and
the
region
and
the
reflections
we've
been
doing.
They've
been
really
easy.
Conversations
like
hey.
I
can't
pay.
Okay,
no
problem.
I
got.
I
got
this
drone
company,
it's
gonna,
take
your
space.
Can
you
leave
tomorrow
and
could
you
pull
the
rent?