Retail Presentation 2016_11

Strategic Holdings Investment Opportunities

“The Potential for Profit is in the Acquisition and Management; The Possibility of Appreciation is Only a Bonus”

Commercial Real Estate Secured Fund

• Strategic Diversified Real Estate Holdings LLC

Investors are buying shares in a Non Publicly Traded Fund

No Load -No surrender charge/ 1.5% Asset Management Fee

Fund owns all Commercial Assets and Notes

8.5%, 10%, and 12% Targeted Preferred fixed Return Plus

Series 1D

SEC Filed under Regulation D 506 (C)

Accredited Investors only

This is not an Offer to Purchase or Sell Securities. This overview is for informational purposes and is not an offer to sell or a solicitation of an offer to buy any securities in the Private Placement Memorandum (PPM) of Strategic Diversified Real Estate Holdings, LLC. and may not be relied upon in connection with the purchase or sale of any security. Interests in the PPM, if offered, will only be available to parties who are “accredited investors” (as defined in Rule 501 promulgated pursuant to the Securities Act of 1933, as amended) and who are interested in investing in the PPM on their own behalf. Any offering or solicitation will be made only to qualified prospective investors pursuant to a confidential offering memorandum, and the subscription documents, all of which should be read in their entirety. Please discuss this, and all financial matters, with your CPA or investment advisor.

Performance data is for the period 2010-2013 is net of fees and represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data presented. If you want current performance data call us at 805-764-5128, or visit www.StrategicHoldings.com.

We are not required by law to follow any standard methodology when calculating and representing performance data. The performance of the performance of the fund may not be directly comparable to the performance of other private or registered funds. Fund Interests (Interests) are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act.

The Securities and Exchange Commission has not passed upon the merits of or given its approval to the Interests, the terms of the offering, or the accuracy or completeness of any offering materials. Interests are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their Interests. Investing in Interests involves risk, and investors should be able to bear the loss of their investment. The securities offered are not subject to the protections of the Investment Company Act. All performance advertised is inclusive of all fees and expenses. Securities offered through Emerson Equity LLC, member FINRA/SIPC. Strategic Holdings and Emerson Equity are not affiliated.


SpeakersReal Estate Cycle, Economic Context, Commercial Real Estate Note and Property Investments

Derrick B Grüner, Esq, Executive Vice President

Sample Investment Properties in the Portfolio Jackie Trojanowsky, Chief Investment Officer

Q&A Panel Derrick B Grüner, Raul Gamino, and Patty Franklin, Jackie

Trojanowsky

Patty Franklin, EVP Investor Relations

• FINRA Securities License 6, 7,63, & 65 for 15 years

• Currently Registered with Emerson Equity

• Independent Registered Investment Advisor for UBS, LPL, Cambridge, and TD Ameritrade

• BS, UCLA in 1995

• Financial Planning Designation (PFP), UCLA

• MBA, CLU with emphasis in Financial Planning

Types of Risk

Systematic • Market• Interest Rate • Inflation• Reinvestment• Exchange Rate**** Cannot be eliminated by diversification

Unsystematic• Business • Financial• Default• Liquidity• Marketability***Reduced or eliminated by diversification

Traditional Asset Types

• CD’s • Safe, FDIC insured• Low rates = low yield

• Stocks• Liquid, can hedge against inflation• Can make money• Can lose money

• Bonds• Set coupon, fixed rate• Price goes down when interest rate goes up

Risk and Diversification

Potential for Monthly Income

• Historically uncorrelated to the general stock market

• Potential Cash Flow opportunities

• High Yield Fund

• Provides Diversification by having Commercial Real Estate Exposure across the US and Alternative Investment exposure


Derrick B. Grüner, Esq.Executive Vice President / General Counsel

• 24 year veteran of the real estate finance industry.

• General Counsel & Chief Legal Officer at Genesis Capital, Counsel at Anchor Loans, and before that partner at a large east coast law firm

• Nearly 10yrs of real estate finance experience prior to the practice of law in mortgage banking, business development, underwriting, and secondary markets.

• Recognized leader in the field, frequently asked to moderate and present at industry conferences throughout the United States; published, quoted, and featured in a variety of publications and trade journals.

• Leadership Los Angeles Class of 2014; Greater Miami Chamber Board Member 2010-2012; Leadership Miami Class of 2009; Leadership Jacksonville Class of 2005.

• Member of the Florida Bar, is admitted to the United States District Court, Middle District of Florida, and admitted to practice in California as Registered In-House Counsel.

Real Estate Cycle

Targeted Purchase Point

Economic Context

• Population growth (Millennial Generation)

• Household formation/pent-up demand

• Construction below demand

• Job and Wage growth

• Interest rates are at historic lows

Why Multi-family?Residential• Historically More

Competition• No Rental Income• Less Potential for Profit

Multi-family• Historically Less

Competition• Immediate Potential for

Rental Income• Larger Potential for Profit

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.123rf.com/clipart-vector/suburb_house.html&ei=48rjVL6fEtimyASOtIKAAQ&bvm=bv.85970519,d.aWw&psig=AFQjCNEUTP0TtxlE-IlsmXMXETwKDgW2ow&ust=1424301134504836

Targeted Investment Strategy

• Buy Value Add Real Estate Targeted Investment Opportunities

• Maximize Value and Cash Flow through Proactive Management

• Maximize Profitability ( i.e. through Prudent Financing)

Why We Have Historically Been Successful

• Acquire What We Believe to Be Undervalued Real Estate & Notes• Historically mismanaged assets• Distressed Price Does Not Necessarily Mean Distressed

Property• Less than 5% of Properties Analyzed are Purchased

• Our goal is to efficiently reposition the property

• Our goal is to achieve market occupancy

Risk Mitigation

• Currently income producing assets

• Target cap rates of 7.5 to 9

• Target low levels of debt at low rates

Jackie Trojanowsky

Chief Investment Officer • 17 years experience in

commercial mortgage-backed securities

• CMBS experience including sourcing, underwriting, special servicing, and asset management

• Originated CMBS loans for GE Capital Real Estate

• University of Texas at Austin

4801 Marshall AvenueNewport News, VA -- 400 Units

Stabilized Market Value $21,428,571 (7% cap rate, 400 units)

Acquisition Price: $4,313,077

Reposition Costs: $13,100,000

All in Cost Basis: $17,413,077

Estimated Profit: $4,015,494

Condition When Purchased

Stabilized NOI: $1,500,000(400 units)

* Stabilized Market value based on internal pro-forma valuation

4801 Marshall AvenueNewport News, VA -- 650 Units

235 James Harrison ParkwayTuscaloosa, AL

Stabilized Market Value*: $13,000,000(7% Cap Rate)Acquisition Price: $4,850,000


All in cost basis: $10,550,000



Stabilized NOI: $900,000


235 James Harrison ParkwayTuscaloosa, AL

2318 Cecil RoadRichmond, Virginia – 98 Unit




Estimated Profit: $550,000




2318 Cecil RoadRichmond, Virginia – 98 Unit

1940 Atlanta Rd SESmyrna GA– 192 Unit


Reposition Costs: $950,000






1940 Atlanta Rd SESmyrna GA– 192 Unit

How Do You Mitigate MY Risk?• Diversified

• Over $5 million equity cushion

• Historical acquisition prices typically 60–70% of realizable value

• Audited financials by a top accounting firm

• A+ rating from the Better Business Bureau

How do I Participate• LLC Fund

• 4 Equity Tranches

• Series 1A (8.5% targeted) – open

• Series 1B (10 % targeted) – Closed

• Series 1C (12% targeted) – Closed

• Series 1D (10% targeted) plus 25% profit participation - Closed

• Targeted monthly dividend payments

• Liquidity

• IRA Eligible

Who Gets Paid First?

Cash From Rental Income & Property Sales

STRATEGIC DIVERSIFIED REAL ESTATE HOLDINGS, LLC

Creditors & Investors Paid First

STRATEGIC DIVERSIFIED MANAGEMENT, INC

Office Space, Employee Salaries Paid Second

Estimated Income Fund 1 Equity

Fund Equity $95,500,000

Third Party Debt $41,500,000

Estimated Value $54,000,000

Members Invested Capital $52,000,000

Equity Cushion $2,000,000

As of 9/1/2016

Fund Equity: $95,000,000 (Market Value) plus $2,000,000 (cash) = $97,500,000Third Party Debt: $41,500,000Estimated Value: $54,000,000

Q & A Session Panel

Derrick B. Gruner, Esq., Executive Vice

President / General Counsel

Jackie Trojanowsky, Chief Investment

Officer

Patty Franklin, EVP Investor Relations

Retail Presentation 2016_11

Real Estate

Transcript of Retail Presentation 2016_11