Our Mission
The mission of the association is to facilitate the
financial security of its members, associates,
and their families through provision of a full
range of highly competitive financial products
and services; in so doing, USAA seeks to be the
provider of choice for the military community.
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STRONG FOUNDATON
Founded in 1922, USAA is strong and growing with more than 10 Million members and over $200 Billion AuM.
Providing industry leading services in Insurance, Banking, Investment and Retirement, USAA remains true to
its founding core values of SERVICE, LOYALTY, HONESTY, and INTEGRITY.
USAA Credit Ratings
A.M. Best Company
A++
Moody’s Investors Services
Aaa
Standard & Poor’s
AA+
Financial stability enables USAA to stand firmly behind commitments to members as well as strategic partners. Unique in
its ability to maintain the highest possible ratings from all three
major credit agencies - USAA continues to thrive and grow
throughout all economic cycles. As the real estate investment
management arm – USAA Real Estate is well capitalized to invest in multiple strategies in order to strengthen and diversify
its portfolio and ensure alignment of interest with institutional investment partners. Financial strength and superior credit
provide a distinct competitive advantage in today’s market.
Accolades
Fortune
Best Companies to Work For #17
Computerworld
Best Places to Work in IT #2
JD Power & Associates
Customer Service Champion
Forrester Research
Highest Customer Advocacy
Investor’s Business Daily
Best Online Brokers
USAA remains focused on a deeply imbedded
culture of service, with an emphasis on deepening relationships and fostering innovation. The
resulting success is consistently being recognized
with various accolades reflecting a sense of passion and purpose. USAA Real Estate Company
shares these values as an industry leader with a
reputation for service excellence, high tenant
retention and transactional integrity.
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“Real estate is dynamic. Our strong balance sheet, conservative approach to leverage
and ability to maintain control over exit strategies are distinct competitive advantages
mitigating the uncertainty of cyclical market conditions.” Jim Hime – CFO
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DISCIPLINED INVESTMENT
Capital Alignment
Investor - Partner - Advisor
Acquiring, developing, and managing quality real
estate investments since 1982, USAA Real Estate
Company provides superior returns investing across
the risk spectrum with expertise in office, industrial,
multi-family, retail and hotel assets. Over $12 Billion
in AuM, including 87 Million + square feet, is diversified across 27 U.S. markets. Highly disciplined underwriting standards have been applied to transactions in excess of $32 Billion.
As a significant co-investor in all programs, including open and closed end funds as well as separate
accounts, USAA brings an ownership perspective to
institutional real estate investing, with an overriding
respect for the interest and success of over 70 foreign and domestic investment partners.
Headquartered in San Antonio with transactional
specialists in six regional offices throughout the U.S.
and one office in Europe, USAA Real Estate Company professionals combine market and sector
expertise while sourcing opportunities through an
extensive network of long-term relationships with
institutional owners, lenders, local partners and the
brokerage community.
USAA $4.0 Billion
Investors $8.4 Billion
* Ability to take quick action in response to
market opportunities and conditions
* Well capitalized to invest in multiple strategies
ensuring alignment of interest
* Flexible ownership structures to optimize tax
efficiency
* Multiple exit strategies to maximize values
and investor yields
Portfolio Diversification
Investment Style
Hotel
Other
Multi-Family
Retail
Debt Instruments
Industrial
Office
Core 60%
Non-Core 40%
0%
10%
20%
30%
40%
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“We know bricks and mortar as well as we know the financial markets. With expertise in all sectors and a
focus on long-term relationships, we are able to generate and execute on high quality investments across
the risk spectrum.” Len O’Donnell - President & CEO
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NATIONAL PRESENCE
Seattle
Boston
Minneapolis
New York
Chicago
Sacramento
San Francisco
Indianapolis
Denver
Las Vegas
Kansas City
Primary Markets
Washington, DC
St. Louis
Raleigh
Charlotte
Nashville
Los Angeles
San Diego
Northern
New Jersey
Philadelphia
Harrisburg
Memphis
Phoenix
Atlanta
Dallas
Secondary Markets
Regional Offices
Headquarters
Austin
San Antonio
Houston
Tampa
Orlando
South Florida
USAA Real Estate Company is headquartered in San Antonio, TX with a fully integrated team of transactional
specialists working out of regional offices located in six major markets across the U.S. and one office in Europe.
Los Angeles, San Francisco, Chicago, New York, Washington D.C., Atlanta, and Amsterdam.
Over 87 Million square feet of highly diversified assets are located in 27 primary and secondary markets
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“During the Global Financial Crisis, we did not
default on a single debt, and not one dollar of
our investors’ capital was lost. That’s a unique
track-record of capital preservation.” Jim Hime
“Real Estate doesn’t fit neatly in a box. It takes a great
deal of strategic planning to make the right decisions,
both at the property level and at the portfolio level. We
like to think that gives us a competitive edge.”
Len O’Donnell
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PERFORMANCE
USAA Real Estate Company makes a variety of disciplined investments with compelling profiles utilizing
asset management, capital markets and value creation expertise within the confines of a fundamentally sound transactional process.
Investment Return Beakdown over the past trailing
twelve months.
7.0%
6.5%
Diligently monitoring risk mitigation factors and never losing sight of fundamental real estate qualities,
USAA actively manages diversified investment portfolios to achieve consistently strong performance.
6.0%
Time-tested underwriting practices are supported by
in-house Market Research, which provides another
level of service for investment partners.
4.0%
6.9%
6.6%
5.7%
5.5%
5.1%
5.0%
4.5%
3.5%
3.0%
Income
Appreciation
USAA Real Estate Company
NCREIF - NPI
Millions
Performance Benchmark
$3.5
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Stock returns (S&P 500)
Bond returns (Barclays Capital Government Bonds)
NCREIF Total Return
NAREIT Equity REIT Index
USAA Real Estate Company
Superior risk adjusted returns –
Outperformed the NCREIF NPI benchmark in each of the past 10 years, exceeding the index by 365 basis
points on average over that period.
Outstanding stability in recession –
Outperformed the NCREIF NPI benchmark index by 963 basis points in 2008 and 776 basis points in 2009 with
no defaults, no foreclosures, and no permanent impairments.
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Approximately 70% of USAA Real Estate Company’s office portfolio is LEED Certified.
“USAA Real Estate Company has earned EPA’s highest ENERGY STAR award
– the 2014 Partner of the Year Sustained Excellence Award – because of their
unwavering commitment to helping consumers become increasingly more
energy efficient.”
- Bob Perciasepe, EPA Deputy Administrator
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SUSTAINABILITY & VALUE CREATION
FBI Chicago - The world’s first building to earn LEED EBOM Platinum Certification
A strong partnership between USAA Real Estate Company and GSA/FBI provided
an opportunity for USAA to develop a cost-effective approach to high performance sustainable strategies being replicated throughout much of its portfolio.
Integrating Sustainable Growth and Financial Performance
USAA is driving the business case for sustainable, energy-efficient operations
by saving more than spending to execute the strategy. A win-win approach
that improves efficiency and reduces environmental impact by keeping a
sharp focus on tenants (comfort/satisfaction/retention) while improving financial performance - maximizing ownership value.
*
12 -time ENERGY STAR PARTNER OF THE YEAR (2003-2014) Sustained Excellence Award
*
Improved energy efficiency by 88% (average portfolio rating) since 2000, saving 43 % cumulative = $20 Million+
*
First real estate company to create continuous commissioning within LEED – built into Yardi Preventive Maintenance platform.
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“Viewing through the eyes of the investor”
BRIAN LIIKALA - Michigan Department of the Treasury
“Unwavering Focus”
AHMED GHOUTH - Alkhabeer Capital
“We selected USAA Real Estate Company as a co-investor due to the
strength of its advisory team and in-depth market expertise. We were
also impressed by their commitment and unwavering focus to delivering
optimal investment returns for all aligned investors.”
“Trustworthy”
JINTAE KIM - WOORI Asset Management
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“USAA holds a unique place in our portfolio of managers.
A true capital partner with advisory expertise that aligns
the investor, by viewing through the eyes of the investor.”
“USAA Real Estate is the most faithful and trustworthy American
company we know. We can depend on them.”
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INVESTMENT PROGRAMS
USAA Eagle Real Estate Fund
Separate Accounts
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•
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Designed to replicate the successful
USAA investment style and performance
Core, Multi-Sector, Diversified Portfolio
Income preservation with value creation
build-to-core
Markets with strong population and job
growth, in-fill locations
US Government Building Fund
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Over $1 billion in total capitalization
Strong demand from Federal and State
Governments
High-quality core assets
Strong dividend yield
Stable tenancy / low volatility
Cobalt Industrial REIT III
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National portfolio of light industrial properties - $219M total value
Value-Add strategy
Established presence in major markets
Cobalt I and II Closed end funds $1.3B
total value
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Core, Value-Add and Opportunistic
strategies
Major high growth markets
New initiatives include development of
build-to-suit logistics, multi-family, core
office, limited service hotels, and retail
Multi-sector
Square Mile Capital Management
- Debt Strategies
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•
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Opportunistic focus on distressed and
high yielding debt
Recapitalizatons and undervalued
equity
Mezzanine Loans and Stretch First
Mortgages through Square Mile Credit
Partners
Admiral Real Estate Fund
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•
•
Value-Add multi-sector assets
Major U.S. markets with strong growth
Emerging manager / Social Initiatives
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“USAA Real Estate Company’s approach to investing is very considered and careful. There
is a conscious effort on their part to seek out the best opportunities with an eye toward
capital preservation and future exit. However, the thing that really sets them apart is the
people. At every level of the organization you will find individuals who care about what
they do, and perform their duties with the utmost integrity. They have always cared about
my success as much as their own. I would have no reservations whatsoever in recommending USAA Real Estate Company to any investor.”
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Brian Buxton – Real Estate Portfolio Manager
Deseret Mutual Benefit Administrators
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PROVEN PARTNER
Financial
Strength
foundation
Superior credit
Ability to close
Capital structuring
Brand
core values
Investment
discipline
Underwriting integrity
Risk mitigation
Active management
Alignment
equity investor
in all programs
People
serving with
passion & purpose
Strong affinity
Culture of service
Partner of choice
Investor
Partner
Advisor
Regional offices / Major markets
Diverse transactional experience
Long-term relatonships
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www.usrealco.com