Vital Capital Portfolio

Portfolio Financials

Price $66,146,170  AVG Occupancy 98%
NOI $4,453,565  Cap rate 6.73%
Min. investment $33,000 Max. investment $66,146,170
Start date 25 Aug, 2020 Deadline 25 Jan, 2021
Soft Cap $6,000,000 Hard Cap $66,146,170

Vital Capital Properties offers investors an opportunity to invest in healthcare real estate and receive regular dividends, based on their equity ownership and portfolio performance.

The healthcare sector behaves differently in challenging times than most other areas. It is more resistant to recessions, making it a relatively safe investment. This is especially true for urgent care centers that are present in this portfolio and can be profitable even when people choose to postpone preventive care.

The properties we selected include ER, urgent and residential care facilities,outpatient clinics, medical office parks and more. Most of them are fully occupied, with the lowest occupancy at 93%. The tenants have long-term leases and are unlikely to move due to the nature of healthcare real estate.

Portfolio

This is a level II freestanding emergency center providing emergency services and treatments for an array of major medical issues such as heart attack and stroke, fractures, severe bleeding and burns, and much more. It is the official EC of Texas Tech Athletics. The center provides CT imaging, digital X-ray, ultrasound and lab panels, and a level 2 emergency department designation that accepts EMS transport. South Loop 289 provides seamless access for Lubbock’s 1.3 million area residents in West Texas and Eastern New Mexico.

This property is licensed as a residential care facility (RCF) and offers 30 residential care units with a licensed capacity of 39 residents. It has a secured memory care wing for persons with Alzheimer’s disease and related dementias. All resident rooms include a half-bath (toilet and wash basin) and each wing has a common shower room. Twenty-six of the 30 rooms have private half-baths and four rooms (two sets of rooms) have shared / adjoining half-baths.

This medical office building is leased in its entirety to the United States Department of Veterans Affairs ("VA"), which operates the facility as a community-based outpatient clinic. The Property is expected to serve more than 2,500 patients and the new facility better accommodates parking and accessibility. The additional space also allows the VA to add physical therapy to the services the clinic offers. There are fixed annual increases to both the shell rent and operating expense reimbursements - a rarity in federal leased assets.

This is a multi-tenant, on-campus medical office park. This medical park consists of four buildings and sits at the base of Bon Secours Southside Regional Medical Center (300 beds).​Bon Secours accounts for approximately 51% of the tenant mix that includes specialties such as internal medicine, urology, cardiology, bariatrics, endocrinology,dermatology,dentistry, paediatrics, chiropractic, and diagnostics.

This building is home to 6 strong medical practices; most of them have been there since 2006. Over 50% of the space is occupied by Baptist Hospitals of Southeast Texas. Each of the other tenants support Baptist Hospital offering a synergistic and destination-oriented investment. This property features extremely expensive build-out including linear accelerator &vault. Trade area covers more than 80,000 people in the immediate area growing to over 140,000 within the surrounding area.

This property is anchored by the Department of Veterans Affairs which occupies approximately 62% of the property under a 10-year lease which commenced in early 2017. In addition to the VA, the property has a diverse mix of healthcare providers. Over $1 million in capital improvements has been invested in the property, including a new roof with Warranty,elevator cab and common area remodel, sprinkler system, heat pumps, seal coated and restriped parking lot, security cameras, and fire alarm system.

There are three centers, each with an absolute triple net (NNN)lease. They are a part of the Articularis Healthcare Group, Inc., which is 4th largest private rheumatology group in the nation. The first building is a 16,706 SF facility located in Sarasota. The second center is a 1,795 SF building in Venice. The third one is a 3,264 SF building in Englewood.

This is a multi-tenant property. Fresenius Kidney Care occupies 52.5% of the facility; seven years of the lease remain. Fresenius has occupied the building since 2007 and has invested $672,750 +/-into the space. Other tenants include Lourdes Sleep Lab and UHS Nephrology. Lourdes has occupied the building since 2007 and has invested $480,000 +/-into the space. UHS has occupied the building since 2016 and recently executed a new 3-year lease.The property has additional 8,000 SF approved for medical space. It is centred in Broome County medical hub, 1.2 miles away from Binghamton University of 17K+ students.

 

Portfolio Statistics

  Year Built Year Renovated Size, SF Occupancy
Facility 1 2016 N/A 8,500 100%
Facility 2 1965 2001 17,738 97%
Facility 3 2019 N/A 13,860 100%
Facility 4 2007 2014 48,237 93%
Facility 5 2006 N/A 25,075 100%
Facility 6 1982 2019 46,697 95.50%
Facility 7 1978,1987,2001 N/A 21,765 100%
Facility 8 2010 N/A 17,878 100%
Total/Average 1997 2011 199,750 98%

Financial Projections

 

Vital Capital Properties will own 3% of this portfolio. It will also receive a one-time 7% acquisition fee. Property management fees are calculated on a case by case basis, based on a variety of factors (location, lease type, etc).

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Market Analysis

Vital Capital Properties will own 3% of this portfolio. It will also receive a one-time 7% acquisition fee. Property management fees are calculated on a case by case basis, based on a variety of factors (location, lease type, etc).

Market Analysis According to JLL, triple-net rental growth has benefited from strong occupancy and limits on new supply. Average medical office net rents have grown steadily from $18.28 per square foot in 2012 to $21.51 in early 2020.

Medical office occupancy across approximately 1.5 billion square feet in the United States has fluctuated in a remarkably narrow band, between 91.4%and 92.6% between the depths of the Great Financial Crisis and today. With national office occupancy ranging from 82.1 percent to 85.8 percent during the same time frame, the appeal of medical office to investors seeking stable occupancy is easily understood.

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Interest in medical office has continued at a rapid pace ever since the Great Financial Crisis put a spotlight on the durable investment qualities of this property class. As investor awareness grew, typical sales volume per year more than doubled, from $6.8 billion in 2012 to $14.7 billion by 2017.

The two groups driving care demand—millennial heads of households and the growing 65+ demographic—value preventive and personalized care to take advantage of the ever-increasing possibility of a long, healthy lifetime.

Millennials in particular desire a full complement of lifestyle components to mutually reinforce the concept of the wellness-centric lifestyle. Additionally, COVID-19 has rendered preexisting condition seven more dangerous, further enhancing the value of wellness and preventive care.

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Dividends and Ownership

 

Vital Capital Properties is offering fractional ownership of medical real estate in the US in the form of digital shares (tokens). Dividends are distributed to token holders every quarter in USD. Investors can also choose to receive dividends in stablecoins. The company offers a pure equity portfolio of stabilized income-producing real estate in the USA. This way investors can individually decide if they want to leverage their tokens for debt and higher ROI or keep it as is for lower risk.

The properties included in this portfolio represent the assets that Vital Capital Properties intends to buy upon successful capital raise. In case one or more of the properties become unavailable during the raise, Vital Capital Properties is responsible for finding an asset with comparable parameters (size, income,location, return, etc).

 

Team and Partners

Vital Capital Properties is facilitating the deal by sourcing and acquiring the properties, finding an appropriate management company for each individual asset and managing cap tables.

Bravo Capital Advisors is a New York based asset management company that partnered with Vital Capital Properties to deliver top portfolio performance to our investors. Persistent personal commitment to daily project work and a focus on the long-term success of clients are the key principals of their business. Their team has over 12 years of experience in real estate.

Vital Capital Properties is using a leading escrow provider. Having an escrow account allows us to ensure that an independent mediator oversees the transaction and keeps investors’ money safe until the sufficient amount of capital is raised. Please refer to the Purchase Agreement for more details.

REINNO is the digital share issuer (tokenization provider). It takes care of the technical part of this offering, including token (digital shares) issuance and distribution. REINNO also provides a marketplace where investors can buy digital shares of Vital Capital Properties. They are exclusively available at app.reinno.io

 

DISCLAIMER

This presentation has been prepared by Vital Capital Properties Series, a designated series of Reinno Series, LLC (the Company). This Presentation is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete.

The contents herein are not to be construed as legal, business, or tax advice, and each prospective investor should consult its own attorney, business advisor, and tax advisor as to legal, business and tax advice. Investors should consult their investment advisors before participating in the offering. In considering any performance information contained herein, prospective investors should bare in mind that past and projected performance is not necessarily indicative of future results, and there can be no assurance that the Company will achieve comparable results or that target returns, if any, will be met. This Presentation contains projections and other forward‐looking statements that involve risks and uncertainties. Although we believe such projections and forward‐looking statements are based on reasonable assumptions, there can be no assurance that these expectations will prove correct and the actual results the Company achieves may differ materially from such projections and forward‐looking statements. These projections and forward‐looking statements are based on current assumptions, and the Company assumes no obligation to update this information. These assumptions may be affected by a number of risk factors, many of which are beyond the Company’s control, and, accordingly, there can be no assurance that any of these assumptions will be realized. This presentation and the information contained herein is confidential. By acceptance hereof, you (and your employees, agents, and affiliates) agree not to release or reveal it (or any of the information contained herein) to any third party and, upon request from the Company, will return or destroy such information and all copies thereof.Any reproduction or re‐transmission of this information, in whole or in part,without specific prior written consent of the Company is prohibited.

 

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Tokenization is a process of representing real-life assets as tokens (digital shares).
A token is digital representation of ownership rights in regards to a particular asset.
First, you can hold your tokenized real estate and enjoy the income it generates, just like you would with traditional real estate. Second, you can raise money by selling any number of tokens on our partners’ platforms. Last but not least, if the token is eligible, you can take an instant loan backed by tokenized real estate with no paperwork in just a few clicks through REINNO’s proprietary platform.
You can invest in tokenized commercial real estate by buying tokens that represent fractional digital ownership of a particular property or portfolio. In order to do that, you have to register on our platform, pass the KYC (Know Your Customer) procedure and complete your investor profile. Then, select the offering you like and purchase tokens.
Permanent residents of whitelisted countries over 18 years old can open an investor account on our platform. Additional requirements may vary depending on the offering. Most offerings require investors to be accredited (in the U.S.) or qualified (in other countries).
Based on the SEC (Securities and Exchange Commission) regulations, the holding period can vary depending on the type of offering and investor’s country of residence. Usually, the holding period for our equity offerings is 12 months.
Users can invest in equity tokens. Equity tokens represent digital ownership of real estate assets. Investors in most equity tokens are eligible for regular dividend payments.
Investors in tokenized commercial real estate can expect regular dividend payments* since all the properties listed on our platform are income-producing. Equity investors can also benefit from capital gains when the value of the property goes up or when selling on the secondary market.
* Some equity offerings might not provide dividend payments and offer higher capital gains instead. Please check the offerings to understand their respective terms.
At the moment, we only list income-producing commercial real estate located in the U.S. and tokenized by REINNO. That being said, we are not limited to a particular type of real estate; it can be anything from multifamily and mobile home parks to retail and office buildings.
Yes, once your investor profile is complete and verified, you can invest in as many properties as you want. In fact, investing in multiple offerings can help you diversify.
Once your payment is processed and confirmed, the transaction will be reflected in the Bought Tokens tab in your REINNO account. Please refer to the legal documentation to see when the Purchase Agreement will be executed for each offering.
All real estate listed on our platform is appraised by an independent party. REINNO always reviews the appraisal documents and consults with our advisor with over 30 years of experience in the commercial real estate space to ensure that our investors are getting a fair price and maximum returns.
The properties are managed by a designated real estate management company.
REINNO conducts thorough checks of all real estate listed on its platform to make sure our investors get the best deals. We want to make sure that all the properties have stable tenants with long-term rental contracts. However, you should review supporting documentation yourself or with your investment advisor to make sure our offerings fit your investment objectives.
Commercial real estate listed on our platform is owned by SPVs (Special Purpose Vehicles). Each offering has its own SPV so that it is independent from both REINNO and SPVs established for other properties. This way, if something happens to REINNO, it will not affect any SPV or your tokens – your ownership is recorded on blockchain and is legally binding, as per the U.S. Securities and Exchange Commission.
Commercial real estate listed on our platform as an offering is owned by Special Purpose Vehicles (SPVs). The sole purpose of an SPV is to buy a property (or multiple properties in the case of a portfolio). During the tokenization process, we transfer the real estate ownership from the initial owner to the SPV. Based on the SEC regulations that allow digital asset ownership, we issue tokens. These tokens are digital shares of the SPV that holds real estate.
Expenses inquired by the properties should be covered by a portion of the revenue they generate, which means investors are not expected to provide additional capital. In many cases, tenants are responsible for maintenance expenses, leaving more income available to investors.
After the holding period, tokens can be sold on secondary markets.
REINNO does not charge investors any fees. Opening an account and keeping it active is absolutely free. However, when you buy tokens or receive dividends, you might inquire a fee from the money transfer service you are using.
REINNO is compliant with the U.S. Securities and Exchange Commissions and the U.S. laws regarding KYC and AML procedures. Asset ownership in the form of tokens is made possible and recognized in the U.S. by the SEC. We are following the rules for investing in securities in the U.S. and abroad.
Yes. Before a particular amount of money is raised (depending on the offering), your funds are safely stored in an escrow account. In case an offering does not reach its soft cap, the money committed up to that point is returned to investors from the escrow account.

Offering Memorandum

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Pitch Deck

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