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Sunstone Industrial Advisors Inc., an affiliate of Sunstone Realty Advisors, is the asset manager of PIRET.
Established in 2003 by Darren Latoski and Steve Evans, Sunstone Realty Advisors is a very successful Vancouver based sponsor and general partner of a number of direct real estate investing opportunity funds. Sunstone Realty Advisors has a history of identifying undervalued real estate investment opportunities and has generated very attractive annual returns to fund investors. The group has had considerable success in raising capital.
Sunstone Realty Advisors, through Sunstone Industrial Advisors Inc., will provide PIRET with a real estate management team that has a breadth of experience in all facets of commercial real estate, including acquisitions, asset management, property management, lease administration and finance. Sunstone Realty Advisors provides national access to industrial properties through its existing extensive brokerage network.
Management Alignment with Unitholders
Management will receive:
- no salary
- no annual performance bonus
- no inexpensive seed stock
- no office or personnel costs (except legal and audit)
- no annual management fees
- no asset acquisition fees
- no asset disposition fees
- no development fees
- no other complicated or nebulous fees, benefits or incentives
Management's only form of compensation:
- distribution payments resulting from IPO investment (at par with all other IPO investors)
Sunstone's interests are strongly aligned with the interests of all Unitholders. Sunstone will not earn the typical fees associated with third party asset management, such as annual management fees, acquisition and disposition fees, or development fees.
Instead, Sunstone will be entitled to maintain a non-dilutive 5% equity interest in PIRET with no additional capital investment until the REIT attains an equity market capitalization of $200 million or certain other events occur. At that time, Sunstone's Subordinated Units will be convertible into regular REIT units. Sunstone is restricted from selling any units for one year following conversion; thereafter the units can be sold 1/3 each year over the subsequent three years.
Before conversion, Sunstone is entitled to 5% of PIRET's economics, including 5% of distributions. Sunstone is also entitled to reimbursement of any reasonable costs and expenses (including legal and audit costs but excluding personnel costs) incurred in providing asset management services.
In the event that the IPO distribution level is not achieved, Sunstone's distributions will be subordinated and deferred while Unitholders will receive 100% of the total cash set aside for distributions.
Senior Management Team
Darren Latoski - Acting Chief Executive Officer, Trustee
- 17 years of real estate experience
- currently President and co-founder of Sunstone Realty Advisors which has raised over $135 million in equity to acquire 40 properties totaling over $320 million
- holds an MBA from Simon Fraser University
Stephen Evans - Acting Chief Financial Officer, Trustee
- 20 years of real estate experience
- currently Acting Chief Financial Officer and co-founder of Sunstone Realty Advisors
- Vice President of England Group from 1987 to 2001, a real estate investment firm, where he played a leading role in over $280 million worth of real estate transactions across North America, including Ontario, Alberta and British Columbia
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