Dear Investors & Friends of OpenPath — Hope you are enjoying summer. I wanted to share quick OpenPath Q2 update that you will appreciate.
Big News: OpenPath Announces Milestone Portfolio Sale
I’m incredibly pleased to report that OpenPath successfully closed on the sale of 7 properties to a private REIT last month with an 8th property to follow in Q3. This is no small event for OpenPath’s platform as well as for you, our investors! While these sales only impact those who have invested with OpenPath prior to August 2015 they do validate the strength of our model. We aggressively priced each asset and nonetheless were able to realize the full asking price across the board. As a result, we expect OpenPath’s track record since inception (in 2005), to increase from our to-date average IRR of 33%*. We now have acquired a total of 26 properties and successfully exited 16.
What’s more, we retained the rights to continue to run our social impact program, Urban Village, for the first year so we can maintain continuity at each community and hopefully demonstrate UV’s value to the new owner. This disposition marks a significant milestone for OpenPath. For more details including a list of the properties sold read OpenPath Managing Director, Peter Slaugh’s letter to these investors.
Impacting People & The Planet: New 2017 Impact Report
Speaking of Urban Village and social impact, we are proud to share our updated impact report which quantifies the results from all of our community building and environmental initiatives. Highlights include 360 Tons of Waste Diverted from Landfills!. If you’d like to learn more, I invite you to read the report and join OpenPath Partner & Director of Impact Gino Borges and UV Program Director, Sara Mossman as they host a teleconference “Creating Community: A Deeper Look at OPI’s Impact Report” July 20th at 10am PDT. To Join simply Dial in: 415–906–6950 (no PIN needed). Note the financial returns in the new impact report do not reflect the June sale of the 8 properties noted above. We be updating this again shortly.
Timing is everything. Is the Secret out on Sacramento/Davis, CA?
In Q2 we offered two new opportunities: The 1100 in Sacramento and Mace Ranch in neighboring Davis, CA. OpenPath has been working on opportunities in this market for a couple of years now and the effort finally paid off as we were able to get two projects that met our criteria and at the right price. We raised about $32M in equity on these two combined, with a large number of OpenPath investors participating in at least one of these new opportunities. So it was exciting to see, just shortly after we secured these two projects, that the word is getting out to the masses on the strength of this market. If you missed it, check out The WSJ article: “Sacramento is California’s Newest Real Estate Hot-Spot”.
We continue to look for new opportunities and, as always, remain disciplined buyers. We hope to have our next opportunity in the next month. I will be sure to let you know when we have this secured.
Lastly, on a personal level, I am currently:
- Recovering from family trip to Korea & Japan
- Reading “Thank You for Being Late” (I’m a little stuck)
- Thinking about road-tripping to see the total solar eclipse in August
- Writing (short posts): “Grand Slams, Strike-outs & What I’ve learned About Angel Investing”
Looking forward to catching up with you soon. Don’t hesitate to reach out if you have questions or want to discuss anything.
David at OpenPathInvestments.com | People. Planet. Profits.
Note: OpenPath investment opportunities are for accredited investors. Like all investments, OpenPath’s investments bear risks which are detailed in each investor brief. *Please read these before investing and do not expect the 35%+% IRRs we have achieved to date. Focus on the targets returns for each project. I am not a CPA or professional financial/ tax advisor. All views are my own.