4830 W. Kennedy Suite 445
Tampa, FL. 33609
Tel: 813-902-9038
Fax: 813-832-6406
gries@griesinvfund.com
Tampa Bay
A Message from the Founder.
The Gries Investment Funds, based in Tampa, Florida, continue
to be an active and important part of the area’s economic
growth by financing real estate projects, corporations and
professional sports franchises. The Funds have directly or
indirectly financed over $150 million, benefiting Tampa Bay
companies.
Warren Buffet, considered by many to be the world’s greatest investor, maintains a simple but basic philosophy that
forms the foundation of his investment success - “Don’t lose
money!” While we wouldn’t begin to suggest that we
possess any of his extraordinary investment acumen, we
do share that same simple philosophy. Those three
words ring in our ears each time we consider an
investment opportunity.
Our success stems from selecting the right deals and the
right people. We say “no” far more often than we say “yes.”
We believe our track record indicates we understand how
to evaluate risk. Protecting one’s capital and maintaining a
viable exit strategy should always come before sizing up
one’s potential profits. Most investors get it backwards and
end up “paying the price”.
We believe now, more than ever, is the time to exercise prudence, selectivity and caution. Grand parties inevitably
produce hangovers for many revelers, and that might be
an apt description of the current investment climate.
However, with uncertainty comes opportunity, especially
for funds, which like ours, have liquidity and patience.
Presently, many investors are recognizing that they seriously
underestimated and mispriced risk the last few years and
have significant losses to show for it. We, on the other hand,
are proud that we weren’t swept up into the recent mania
and, as a result, have experienced significantly positive
returns.
Robert Gries
Manager, Gries Investment Funds
KNOWLEDGE. EXPERIENCE. SUCCESS.
Our Goal is Simple, but Effective!
Simply put, our objective is to identify viable transactions
with responsible and experienced borrowers, protect our
downside risk and generate superior risk-adjusted returns
to our investors. For a decade, this method has been the
core of our investment philosophy and it has generated
excellent results.
In today’s ever changing and often turbulent marketplace,
access to capital is critical. We firmly believe that “Our partner’s success is our success.” Not all investments fit our criteria. If that’s the case, we use our capital markets expertise to help. In fact, last year we assisted in arranging $300
million of financing for developers on a variety of real
estate projects.
Specific Areas of Expertise Include:
• Senior, mezzanine debt and joint venture equity
(all real estate product types)
• Acquisitions of bank notes and REOs
• Corporate financing for acquisitions, buyouts
and recapitalizations
• Financing for professional sports franchises
• Bankruptcy transactions
Casa Del Mar
St. Augustine is Florida’s oldest community. The Fund provided
a mezzanine loan for a condo-hotel conversion. Although the
market experienced a significant downturn and the conversion
was not implemented, the property was sold and the Fund, due
to conservative underwriting achieved its targeted return.
KNOWLEDGE. EXPERIENCE. SUCCESS.
Experts at Evaluating Risk.
Marinas
An emerging trend in the marine industry is the conversion of
previously rented boat slips and dry storage racks to
dockaminiums or owned boat slips and racks. The Fund was
able to use its capital market expertise to assist in arranging
financing for one of the largest marina transactions of 2006.
Being a successful lender and investor requires a deep
understanding of the financial markets in order to navigate
them safely. As diligent investors, we quickly and
carefully evaluate the downside of a par ticular
investment, and mitigate that risk through a very thorough
and rigorous due diligence and underwriting process. Our
focus on risk is a result of our long-time experience,
coupled with reliable instincts. This allows us to seize
opportunities not readily observed by others, as well as
avoid potentially troublesome transactions. All too often
investors are seduced by the upside of a potential
investment, but they overlook the downside - failing to
protect themselves. We strive to uncover all of the risks
associated with a potential investment and eliminate or
provide safeguards against those risks. Careful due
diligence allows us to pay particular attention to the details
of a transaction and properly document the investment.
Our management team includes a diverse combination
of financial, management, real estate, transactional and
investment professionals. This unique mix of diverse and
experienced backgrounds enables us to carefully
evaluate both the positive and the negative aspects of
a particular transaction. The experience and capabilities
of our professional team has consistently protected our
investments from downside risk.
Hitting Singles Scores Long Term Success.
While others swing for the fences, our goal is to simply and
repeatedly hit singles. This philosophy has become the way
to ensure the long-term success and viability of our Fund’s
objectives. Often singles can turn into doubles, triples or
home runs, and the investments we’ve made earn higher
returns than initially forecasted. Investing patiently and
cautiously allows us to be highly selective and fund only
transactions that meet our investment objectives.
Our approach is to make sound investments for the
long-term benefit of our partners. We also strive to develop
long-lasting relationships with our borrowers and be
instrumental in their growth.
KNOWLEDGE. EXPERIENCE. SUCCESS.
Assisted Living Facilities
The Fund has made several investments in assisted living
facilities. The New Bern, North Carolina project was an underforming
asset. The Fund provided mezzanine financing to a highly
experienced owner and operator that acquired the property
and implemented a successful turnaround.
Collateral. A Creative Approach.
We view ourselves as being an entrepreneur in banker’s
clothes. We strive to structure creative financial transactions
like an entrepreneur yet underwrite and protect our
investment like a banker. This process permits us to further
solidify our competitive advantage within the marketplace.
We seek to obtain personal guarantees and other collateral
to hedge our investments from downside risks.
The type and amount of collateral is reviewed on a case-bycase basis, as deemed necessary by the management
team. We use a structured approach to understand the risk
profile of the transaction and evaluate whether the collateral
being offered is sufficient to safeguard our investments.
A Market Leader in a Niche Marketplace.
Our strength and competitive advantage comes from the
fact that there are very few sources of capital available to
borrowers seeking $5 million or less. Typically, transactions of
this size fail to register on the “radar screen” of larger
institutional lenders, hedge funds and private equity funds.
It’s a niche market that affords us the opportunity to source
viable investments with minimal competition. Through
extensive market knowledge and relationships that
we have fostered over the years, we have positioned
ourselves to become a market leader to many smaller but
creditworthy borrowers.
The bureaucracy of dealing with banking institutions can be
extraordinarily frustrating and time consuming for many
borrowers. We generally finance borrowers who need
funding in relatively short periods of time and, therefore, are
generally less interest rate sensitive. We seek strong borrowers,
who, due to temporary illiquidity, have capital needs that
traditional sources often can’t meet. Ultimately, we strive to
truly learn about our borrowers’ lending needs and establish
relationships that contribute to the continual success
of those relationships. The close bond and trust that
develops with our investors and borrowers has allowed
us to consistently achieve our investment objectives.
KNOWLEDGE. EXPERIENCE. SUCCESS.
Tampa Bay Lightning
Bridge financing was provided to facilitate the sale of the franchise from its original ownership group. The team has since
gone on to be a perennial contender and captured the
Stanley Cup in 2004.
Opportunistic Investing.
We believe the next few years will present many excellent
investment opportunities. Some sectors of the real estate
market have fallen on tough times, which present great
opportunities for those with liquidity and patience. History
has repeatedly proven that the greatest profits are often
made during times of uncertainty and turmoil. Our ability
to assess risk and think “outside of the box” allows us to act
on opportunities that others may have overlooked.
Our Golden Rule, however, is to protect our capital. All
potential investments are screened and evaluated from
the extensive relationships established with lenders, real
estate brokers, equity investors, investment banks,
management teams, wealth managers, law firms, fund
sponsors and consultants. These relationships enable us
to filter a substantial and diverse number of opportunistic
transactions and continue to produce superior risk-adjusted
returns to our investors.
KNOWLEDGE. EXPERIENCE. SUCCESS.
Founded on Trust.
Redington Shores
The Redington Shores Yacht and Tennis Club is a luxurious
124 unit condominium development on Florida’s Gulf
beaches. Prior to the establishment of the fund, a private
group led by Robert Gries provided the original bridge
financing, enabling the development group to secure over
$65M in construction financing.
Trust. It forms the cornerstone for all successful business
relationships. Our investors, borrowers and members of the
investment, brokerage and banking community know and
trust that we will honor our obligations and act professionally
and ethically at all times. It is an honor to be entrusted with
investors’ capital, and we take our fiduciary responsibilities
very seriously.
KNOWLEDGE. EXPERIENCE. SUCCESS.
NOTES
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KNOWLEDGE. EXPERIENCE. SUCCESS.