origin fund iii · lee park tower i & ii dallas 120,878 sf closed aug. 2016 $14.0 value-add...

ORIGIN FUND III

Disclaimer: This Investment Summary is being furnished on a confidential basis to investors. By its acceptance hereof, each recipient agrees that this Investment Summary shall not be reproduced or distributed to others, at any time, without the prior written consent of Manager III, LLC and that the recipient will keep permanently confidential all information herein not already in the public domain.

This Investment Summary is not an offer to sell, or the solicitation of an offer to purchase, the Fund’s securities. Any such offer or solicitation will be made only by means of a Confidential Private Placement Memorandum (the “PPM”). This Investment Summary excludes material information contained in the PPM, including, but not limited to, risk factors. Investors should make a decision to invest solely on the information provided in the PPM.

This Investment Summary includes financial projections and other forward-looking statements that relate to future events and circumstances. Sentences or phrases that use words such as “expects,” “anticipates,” “hopes,” “plans,” “may,” “can,” “will,” “projects,” and others, are often used in forward-looking statements, but their absence does not mean a statement is not forward-looking. Such statements reflect Origin’s current opinion and are designed to help readers understand Origin’s thinking. By their very nature, however, such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Investors are cautioned not to place undue reliance on these forward-looking statements, which are specific to the date hereof.

Results of prior funds may not be indicative of returns from the Fund being formed and do not reflect the returns through the full life of the such prior funds.

Table of Contents Origin Fund III

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Our Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Our Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Our Track Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

5

6

17

21

4

Fund III Executive Summary

About Origin Investments

• Founded in 2007 and based in Chicago with regional offices in Dallas, Denver and Charlotte

• Experienced team of 16 professionals with more than $5 billion in commercial real estate transactions executed

• Significant personal commitment from the firm’s principals with over $42 million invested alongside capital partners since inception

Strategy

• Acquire and manage multi-family and office real estate opportunities that exhibit a core-plus risk profile with value-added return potential

• Target eight major U.S. markets that exhibit high population and job growth

• Focus on smaller transactions (between $10 million to $40 million) to limit competition from larger institutional players

• Acquire assets below replacement cost and leverage asset management expertise to enhance value

Track Record

• $146.8 million of equity* deployed across two top performing prior funds, representing $485 million in total transaction value

• Fund I (2011), totaling 11 assets, is generating gross returns of a 34.5% IRR and a 2.6x multiple as of September 30, 2016

• Fund II (2013), totaling 17 assets, is generating gross returns of a 31.7% IRR and a 1.7x multiple as of September 30, 2016

* Includes fund equity, sidecar equity, institutional equity and non-institutional equity deployed across Origin’s two funds

5

Experienced and Cohesive Team Our Team

Michael EpiscopePrincipal16+ yrs. of CRE exp. 8+ yrs. at Origin

David SchererPrincipal17+ yrs. of CRE exp. 8+ yrs. at Origin

Marc Turner

Managing Director of Investment Management

20+ yrs. of CRE exp.

Dave WelkManaging Director of

Acquisitions12+ yrs. of CRE exp.

Matt OzeeVP of Acquisitions

– Texas7+ yrs. of CRE exp.

Michael McVickar

General Counsel


Priya Venkataraman

Controller9+ yrs. of CRE exp.

Nick TannCreative Lead

15+ yrs. of design exp.

Benjamin HarrisSenior Associate

3+ yrs. of CRE exp.

Kyle VerhasseltAssociate

3+ yrs. of CRE exp.

Ashley FoghtSales Assistant

10+ yrs. of management exp.

Tom Briney


VP of Acquisitions — Denver and Chicago

Grace LiAccounting Associate

3+ yrs. of accounting exp.

James GrassoAssociate

3+ yrs. of CRE exp.

6

Geographic Focus Our Strategy

• Focused on eight major U.S. markets with strong population growth

and employment centers

• Personnel in Charlotte, Chicago, Dallas and Denver serving as hubs for the region and further improving deal sourcing and asset management

6

7

Submarkets Our Strategy

We focus on transit and money corridors in all eight target markets

7

8

Market Opportunity Our Strategy

TARGET: ASSETS VALUED BETWEEN $10 MILLION AND $40 MILLION

Source:. NCREIF

• Often Overlooked: Require too much equity

for smaller, regional players but sit well

below the minimum equity requirements of

larger institutions

• Often Under-managed: Well-positioned but

lag due to the following: o Larger Owners: $10 million to $40

million assets are often ignored o Less Sophisticated Owners: Don’t realize

upside potential in rents and occupancy

• Capital-Starved Assets: Reluctant or unable

to fund revenue-generating capital for

tenant improvements, leasing commissions

and maintenance/repairs

Distribution of Market Values, Q1 2015

(Rolling 4–Qtr Avg)

< 55–10

10–15

15–20

20–25

25–30

30–35

35–40

40–45

45–50

50–55

55–60

60–65

65–70

70–75

75–80

80–85

85–90

90–95

95–100> 100

100

200

300

400

500

600

700

800

900

1000

Median

P r o p e r t y V a l u e i n M i l l i o n s

Nu

mb

er

of

Pro

pe

rtie

s

9

Investment Management Our Strategy

• Understand acceptable ranges of controlled expenses

• Improve efficiency

• Utilize economies of scale • Pursue real estate tax appeals

Investment management team formulates business plans for each property, ensuring optimal ownership and exit strategies are integrated prior to delivery of letters of intent on new investments.

Cost Reductions

Revenue Enhancements

• Position the asset to meet market demand

• Determine physical enhancement needs

• Identify rebranding opportunities • Develop tactical marketing plan

• Cultivate ancillary revenue streams

10

2016 Deal Funnel Our Strategy

DEAL SOURCING1007 opportunities received

DEAL REVIEW249 opportunities evaluated / 77 investment committee memos compiled

DUE DILIGENCE135 site visits and market tours completed

ACQUISITIONS8 assets acquired for $234 million total / 2 assets pending

for $26 million total

INVESTMENT COMMITTEE APPROVAL58 investment committee memos presented / 42 LOI & terms

sheets submitted

Through December 31, 2016

11

Transaction Pipeline Our Strategy

MSA Size Status Price (M) Risk Profile Comments

Fund III Acquisitions

Trinity Place Raleigh 114,541 SF Closed July 2016 $22.5 Value-addOffice acquisition located in the

Research Triangle Park

AMLI at the Medical Center Houston 334 units Closed Aug. 2016 $53.6 Value-addMulti-family acquisition located in the

Medical Center of Houston

Lee Park Tower I & II Dallas 120,878 SF Closed Aug. 2016 $14.0 Value-addOff-market office acquisition located

in the Uptown/Turtle Creek submarket

Cherry Creek I & II Denver 314,000 SF Closed Sep. 2016 $31.4 Value-addOff-market office acquisition located

in the heart of the Cherry Creek submarket

Village Park of Palatine Chicago 448 units Closed Dec. 2016 $48.3 Value-addMulti-family acquisition located in the

Chicago suburb of Palatine

Puritan Mill Atlanta 110,000 SF Awarded $18.8 Value-addCreative office acquisition located in

the West Mid-town submarket of Atlanta

Walnut at Meeting Charleston 221 units Land Purchased $59.5 DevelopmentMulti-family development in the

Central submarket

Keystone 100 Durham 62,354 SF Awarded $7.6 Value-addOffice acquisition located in the

Research Triangle Park

Note: The above summary highlights pending transactions in Origin’s acquisition/disposition pipeline. There is no certainty that any of the above-described deals will close, and all pricing may be subject to change.

Dispositions

2015 2016# of Assets Total Value # of Assets Total Value

3 $73.8M 6 $146.7M

12

Fund III Acquisitions Our Strategy

Trinity Place

Property Description

Property Type: Office

Property Class: A

City/State: Raleigh, NC

Vintage: 2000

Total SF: 114,547

Floors: 4

Projected Investment Return Metrics

Hold Period: 6 Years

Gross Multiple: 2.10x

Gross IRR: 17%

Avg. Equity Yield 10%

Key Deal Points

• Trinity Place is a direct acquisition of a best-in-class asset in what has historically been one of the strongest and most stable submarkets in the Triangle. Above standard tenant finishes, and overall asset quality will result in exceptional tenant retention during the investment period. Given the asset quality and desirable location, the asset competes well with new office product, but is offered at a rental rate which is at least 15% discount to the competition.

• The acquisition pricing will allow for a strong double-digit initial yield and we project cash flow to account for over 50% of the total investment return.

• The property is optimally located in the West Raleigh submarket, the most centrally located submarket to decision makers, amenities and the Raleigh Durham International Airport. The Triangle created over 55,000 new jobs between 2014 & 2015, and over 16,000 new jobs since the start of 2016.

13


AMLI at the Medical Center


Property Type: Multi-family

Property Class: B

City/State: Houston, TX

Vintage: 2000

Total Units / SF: 334 / 320,454

Floors: 4




Gross IRR: 17%


Key Deal Points

• The asset has been owned and operated by AMLI for the past 15 years. The current uncertainty in Houston's economy predicated on oil has presented an opportunity to purchase the asset for 70 bps in cap rate expansion from where the asset would have traded 18 months ago at a 4.5% cap rate.

• The purchase price of $160,000 per unit and an all-in cost basis of $180,000 per unit after renovations is a substantial discount (22%) to current replacement cost.

• The asset is located in Houston's TMC which is the world's largest medical complex spanning over 1,345 acres and is home to 106,000 employees and 50,000 students. The area is currently undergoing over $3.25 billion in expansions and renovations, and is a large demand driver for the asset.

7009 Almeda Road

14


Lee Park Towers I & II



Property Class: B

City/State: Dallas, TX

Vintage: 1964 / 1972

Total SF: 120,878

Floors: 5 / 9




Gross IRR: 17%


Key Deal Points

• Attractive off-market basis of $117 PSF relative to recent sales comps in the marketplace between $180 – $218 PSF. The previous ownership group was a partnership of oil and gas investors that desired to exit the investment to improve their liquidity.

• The opportunity exists to lease-up 41% of the building to achieve the average submarket occupancy of 90%. There is also upside in marking rents to market as in-place rents are $19.00 PSF while comparable properties are achieving rents between $26.00 – $28.00 PSF.

• Located in the premier Uptown/Turtle Creek submarket featuring best-in-class office, retail and multifamily projects with high-end dining, nightlife and hotels.

15


Cherry Creek Plaza I & II



Property Class: A

City/State: Glendale, CO

Vintage: 1974/1979

Total SF: 313,959

Floors: 13




Gross IRR: 17%


Key Deal Points

• Attractive off-market basis of just under $100 PSF relative to recent sales comps in the marketplace between $117 – $145 PSF and substantially below replacement cost of $330 PSF.

• Located 1.5 miles from the heart of Cherry Creek, one of Denver’s premier submarkets. The property is located adjacent to the Cherry Creek Athletic Club, Cherry Creek Trail and Creekside Park.

• With average in-place rents of $20.39 PSF and an in-place occupancy of 80%, there exists a compelling opportunity to complete a substantial renovation to the property common areas and amenities in an effort to close the rent and occupancy gap in a market that achieves average rents of $25.00 PSF and an average occupancy of 90%.

16


Village Park of Palatine


Property Type: Multi-family

Property Class: B

City/State: Palatine, IL

Vintage: 1977

Total Units / SF: 448 / 414,026

Floors: 3




Gross IRR: 20%


Key Deal Points

• The asset has not been adequately maintained despite being institutionally owned for 18 years. As a result, third party property management has been unable to market the asset successfully as evidence in effective rents and occupancy. This presents the opportunity for the partnership to invest significant capital in common areas, amenities, and units to reposition the asset among it’s competitive set and drive higher rental rates.

• The acquisition pricing will allow for a strong double-digit initial yield and we project cash flow to account for over 65% of the total investment return.

• The purchase price of $107,000 per unit and an all-in cost basis of $130,000 per unit after renovations is a substantial discount (41% and 28%, respectively) to current replacement cost.

860 W Panorama Dr

17

Resume of Success Our Track Record

We’ve established a track record of high-performing investments by buying right, managing risk and enhancing revenue.

As of September 30, 2016

Avg. Initial Projected

Return 17%

12. Naper Place13. Lux 2414. Collins Square15. Cambridge Corporate Center16. Woodlands Business Park17. The Olmsted18. Austin Air Cargo19. Centrum at Glenridge20. Arium North Point*21. Kingwood Medical Arts*22. Three South Executive

23. Orlando Industrial24. 2605 Meridian25. Iroquois Club26. One University Place27. Denver Corporate Center I28. Mission Hills

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

1. Arbor on Richmond 2. Giordano’s 3. Food 4 Less 4. Marquis Trace 5. Arium North Point*6. Bay Club Apartments7. Arium Edgewater8. Kingwood Medical Arts*9. Residences at 329510. Legacy Suites11. Marquis Crest

Fund IIFund I

56%

37%

28% 27% 27%

55%

40%

25%23%

26% 26%

58%

18%

25%

18%

32%

50%

27%

37%

20%21%19% 20%

16% 15%

9%

35%

16%

REALIZE

D

REALIZE

D

REALIZE

D

REALIZE

D

REALIZE

D

REALIZE

D

PROJE

CTE

D

REALIZE

D

REALIZE

D

REALIZE

D

PROJE

CTE

D

REALIZE

D

REALIZE

D

PROJE

CTE

D PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

REALIZE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

PROJE

CTE

D

* Properties in both Funds

18

Fund I Performance Summary Our Track Record

Fund I Transactions

Total Returns as of 9/30/2016 Forecasted Total Return

Investment Date of Investment Date of Liquidation MSA Invested Capital Gross IRR Gross Multiple Gross IRR Gross Multiple

Realized Investments

Food 4 Less Center Feb-11 Jan-14 Chicago $2,000,000 37.1% 2.5x 37.1% 2.5x

Residences at 3295 Apr-12 Jun-14 Seattle $1,900,000 26.4% 1.7x 26.4% 1.7x

Legacy Suites Jun-12 Jan-14 Tallahassee $1,900,000 8.5% 1.1x 8.5% 1.1x

Arium Edgewater Oct-12 Mar-15 Houston $842,000 25.9% 1.6x 25.9% 1.6x

Giordano’s Portfolio Nov-11 Apr-15 Chicago $1,925,000 56.1% 4.6x 56.1% 4.6x

Marquis Crest Jan-12 Aug-15 Atlanta $1,900,000 27.0% 2.3x 27.0% 2.3x

Arbor on Richmond Jul-11 May-16 Houston $550,000 26.9% 2.3x 28.4% 2.3x

Arium North Point Dec-12 May-16 Atlanta $1,900,000 40.6% 2.6x 40.6% 2.6x

Marquis Trace Dec-12 Aug-16 Atlanta $1,900,000 56.2% 4.3x 56.2% 4.3x

Total Realized 9 $14,817,000 35.1% 2.6x 35.2% 2.6x

Unrealized Investments

Bay Club Apartments Feb-12 Dec-17 Seattle $1,900,000 25.5% 2.4x 24.1% 2.6x

Kingwood Medical Arts Oct-12 Oct-16 Houston $1,900,000 25.7% 2.5x 25.2% 2.5x

Total Unrealized 2 $3,800,000 25.6% 2.5x 24.7% 2.6x

Capitalized Formation Fees $383,000

Total Portfolio 11 $19,000,000 34.5% 2.6x 34.2% 2.6x

Note: Past performance is not indicative of future results. The above summary reflects the current performance of Origin’s fund assets as if sold on September 30, 2016.

Origin Capital Opportunity Fund, LLC Investment Performance As of September 30, 2016

Initial Closing Date 2/28/2011 Reported Value Est. Residual

Total Equity Commitments $19,000,000 Gross IRR 34.5% 34.2%Investments Acquired 11 Gross Multiple 2.6x 2.6xInvestments Realized 9 Net IRR 27.9% 27.5%% of Capital Returned 182.9% Net Multiple 2.2x 2.2x

19

Fund II Performance Summary Our Track Record

Fund II TransactionsTotal Returns as of 9/30/2016 Forecasted Total Return

Investment Date of Investment Date of Liquidation MSA Invested Capital Gross IRR(3) Gross Multiple(2) Gross IRR(3) Gross Multiple(2)

Realized InvestmentsLux 24 Jun-13 Feb-16 Chicago $3,750,000 57.4% 3.1x 57.4% 3.1x

Arium North Point Jun-13 May-16 Atlanta $950,701 50.4% 2.6x 50.4% 2.6xTotal Realized 2 $4,700,701 56.0% 3.0x 56.0% 3.0xUnrealized InvestmentsNaper Place Jun-13 Sep-18 Chicago $1,541,470 34.1% 2.5x 27.0% 3.3xKingwood Medical Arts Jun-13 Oct-16 Houston $890,000 32.6% 2.5x 31.7% 2.5xCentrum at Glenridge Feb-14 Feb-19 Atlanta $1,000,000 17.4% 1.5x 17.7% 2.0xAustin Air Cargo May-14 Jun-17 Austin $2,067,280 39.1% 2.0x 34.7% 2.1xThe Olmsted May-15 May-18 Atlanta $3,000,000 27.4% 1.4x 24.5% 2.0xWoodlands Bus. Park Jun-14 Jun-17 Dallas $1,460,000 16.0% 1.4x 15.7% 1.5xCambridge Corporate Aug-14 Jun-17 Charlotte $1,705,000 20.3% 1.5x 27.1% 2.4xCollins Square Nov-14 Sep-19 Dallas $1,175,000 17.1% 1.4x 18.4% 2.0x2605 Meridian Feb-15 Dec-19 Raleigh $2,400,000 14.1% 1.2x 18.7% 2.2xOrlando Industrial Feb-15 Jun-17 Orlando $546,712 51.5% 1.9x 37.2% 2.0xThree South Executive Feb-15 Dec-19 Charlotte $2,100,000 26.5% 1.4x 20.9% 2.2xIroquois Club Sep-15 Aug-20 Chicago $3,300,000 n/a[1] 1.0x 20.2% 2.3xOne University Place Nov-15 Nov-20 Charlotte $2,645,000 n/a[1] 1.0x 19.1% 2.3x Denver Corporate Center I Jan-16 Jan-21 Denver $3,160,000 n/a[1] 1.0x 15.6% 2.0x Mission Hills Mar-16 Feb-21 Austin $3,160,000 n/a[1] 1.0x 14.9% 1.9xTotal Unrealized 15 $30,150,462 n/a[1] 1.4x 21.4% 2.2xTotal Portfolio 17 $34,851,163 31.7% 1.7x 26.0% 2.4x

(1) Gross distributions to date include $3,251,163 if reinvested capital. (2) Multiple is calculated on $31.6 million of total commitments. Numerator is adjusted to exclude $3.25 million of reinvested capital. (3) Properties are transitioning through a value-add business plan. Liquidation value assumed to be equal to purchase price. Note: Past performance is not indicative of future results. The above summary reflects the current performance of Origin’s fund assets as if sold on September 30, 2016.

Origin Capital Fund II, LLC Investment Performance As of September 30, 2016

Initial Closing Date 6/5/2013Total Equity Commitments $31,600,000Reinvestment of Distributions $3,251,163 Reported Value Est. Residual

$34,851,163 Gross IRR 31.7% 26.0%Investments Acquired 17 Gross Multiple 1.7x 2.4xInvestments Realized 2 Net IRR 22.9% 20.9%% of Capital Returned 30.9% Net Multiple 1.5x 2.1x

20

Terms of the Offering Our Track Record

The Fund Origin Fund III, LLC (Delaware LLC)

Investment StrategyAcquire and manage multi-family and office real estate opportunities that exhibit a core plus risk profile with value-added return potential. Asset size target between $10mm and $40mm. Emphasis on high quality, urban infill assets in 8 target growth markets.

Target Returns 17–19% gross IRR and 2.0x gross multiple

Target Fund Size $150 million

Capital Call Period 3 years from final closing

Term 5 years following capital call period with two consecutive one-year extensions at GP discretion

Management FeeThe greater of (i) 1.5% of total capital commitments less distributions paid to investors that represent a return of capital, or (ii) 0.75% of total capital commitments

Formation Fee One-time, upfront 1.5% fee

Administrative Fee One-time, upfront 1.5% fee on commitments less than $500,000

Performance Fee 20%; subject to 9% preferred return and 100% GP catch-up*

Recycling Permitted during Capital Call Period

Origin Co-investment $10 million

Minimum Investment $100,000

Fund Administrator Liccar Certified Public Accountants

Restrictions on Investment Size No single investment can be larger than the greater of 10% of the Fund or $15 million

Leverage Not to exceed 70% loan-to-value at portfolio level

* The “catch-up” accelerates the performance fee so that the manager receives 20% of total profits. The performance fee catch-up occurs only after all capital is returned to investors and the 9% preferred return is paid.

Appendix

Team Bios

Case Studies

Benefits of Private Real Estate Investing

FAQ

Contact Information

21

22

Team Bios Appendix

David formed Origin Investments in 2007, along with cofounder Michael Episcope. He has more than 20 years of experience in real estate investing, finance, development and asset management.

As Principal, David co-chairs the Investment Committee and oversees the analysis, acquisition and asset-management teams at Origin. He also assembles and leads Origin’s team of investment professionals, who share more than $5 billion of transactional experience.

Prior to forming Origin, David spent eight years at a privately financed hedge fund, where he opened and managed offices in New York and London and served as company president from 1999 to 2003.

In 2006, David co-founded One Million Degrees, which has raised $10 million to help low-income community college students graduate and successfully enter the workforce. He currently serves as the organization’s Board Chair. He also serves as the president of the Harvard Club of Chicago and is on the Advisory Board of Invest For Kids.

David received his undergraduate degree from Harvard University and MBA from University of Chicago’s Booth School of Business. He is married, has two children, is a youth flag football coach and has an interest in languages.

Michael cofounded Origin Investments to create access to real estate investments and management expertise that previously were available only to institutions. His investment philosophy is rooted in risk management and value creation, and he’s been an active real estate investor for more than 15 years.

As Principal, Michael co-chairs the Investment Committee and oversees marketing and sales efforts for the company. He has purchased and executed more than $650 million of commercial real estate and debt collateralized by commercial real estate.

Prior to forming Origin, Michael founded SCP Capital, where he developed and implemented proprietary risk management and trading strategies. He was named one of the top 100 traders in the world by Trader Monthly Magazine in 2003, and again in 2005.

Michael is the former president of the DePaul Real Estate Alumni Alliance, an official mentor to DePaul graduate students and a sustaining sponsor of the DePaul Real Estate Center. He received his undergraduate degree in finance and his Master of Science in Real Estate from DePaul University.

Michael is married with three children and lives on the North Side of Chicago. He’s been coaching youth baseball since 2011 and is an avid runner, snowboarder and traveler.

David Scherer Principal

Michael EpiscopePrincipal

23

Team Bios Appendix

Michael serves as Origin Investments’ in-house general counsel.

Prior to joining Origin Investments, Michael was the Vice President and Senior Associate General Counsel at General Growth Properties, a $3 billion publicly-traded REIT. Earlier in his career, he worked the Associate General Counsel and Assistant Secretary at APAC Customer Services. Michael also worked at Corporate Express as their Assistant General Counsel.

He received his Bachelor degree in Chemistry from Hope College and his JD from Valparaiso University School of Law. Michael is admitted to the Illinois Bar and the Northern District of Illinois. He is an accomplished French horn player, contemporary art collector and competitive recreational cyclist. Michael and his husband have been residents of the city of Chicago for over twenty-five years.

Michael McVickarGeneral Counsel

Marc is a senior commercial real estate investment professional with 20 years of experience in asset management, acquisition, disposition, underwriting and valuation, leasing, and due diligence. As Managing Director of Investment Management at Origin, Marc is responsible for overseeing the company’s real estate portfolio and executing Fund and property-level business plans.

Before Origin Investments, Marc served as Vice President of Asset Management at Lightstone, a New York investment firm with $2 billion of assets under management. Prior to Lightstone, he was involved in the HSBC Amanah Global Properties Income Fund (“GPIF”). As Head of Asset Management for the U.S. portfolio, he held responsibility for the investment performance of a 36 building national office, R&D, and an industrial portfolio containing 7 million square feet. Earlier in his career, Marc performed in various asset management and acquisition roles at Equity Office Properties Trust, previously the nation’s largest publicly traded office building owner and REIT. During his decade long tenure at Equity Office, Marc was involved in the underwriting and valuation analysis on corporate acquisitions with a total value in excess of $15 billion and conceived investment strategy for assets with an aggregate value over $2 billion.

He holds a Bachelor of Science in Business from the Kelley School of Business at Indiana University. Marc lives with his wife and two daughters in a north suburb of Chicago. He is a faithful Cubs fan who also enjoys travel, the beach, and history.

Marc TurnerManaging Director of

Investment Management

24

Team Bios Appendix

Dave is directly responsible for investment activities across the firm’s target markets and collaborating with the Investment Committee to shape the firm’s investment strategy.

Over the past 13 years, Dave has been involved with the sourcing, closing and execution of more than $1.1 billion of commercial real estate acquisitions, dispositions and development. During his five-year tenure with Origin, Dave has completed nearly $300 million of direct and joint-venture investments including acquisitions, ground-up development, physical and operational repositioning of multifamily and office assets throughout Chicago and the Southeast U.S.

Prior to joining Origin Investments, Dave spent six years at Deutsche Bank’s global commercial real estate investment and advisory division known as RREEF. During his tenure, he was involved with the acquisition of more than $500 million of multifamily, office, industrial and retail assets throughout the U.S. on behalf of the firm’s pension fund clients.

Dave is married, has two sons and lives in the Cotswold neighborhood of Charlotte. He enjoys trying to keep up with the ever-changing restaurant scene, travel, a round of golf, an occasional bird hunt, Iowa Hawkeyes athletics and Blackhawks hockey.

Tom joined Origin Investments in early 2011 and is responsible for sourcing office investments across Chicago and Denver. Before his current role, he served as Vice President of Asset Management for Origin Investments, overseeing the firm’s portfolio assets. Tom has worked with the Origin team for over five years and has ten years experience in the commercial real estate sector.

Prior to joining Origin Investments, he performed underwriting commercial real estate investments at Equity Office Properties. Before Equity Office Properties, Tom worked as a commercial credit analyst at JP Morgan Chase.

He received his Bachelor degree in Finance from The University of Connecticut. Recently, Tom relocated to Denver with his wife and children. He is a competitive cyclist and loves to travel.

Matt is responsible for acquisitions across Austin, Dallas and Houston. He has over six years of experience sourcing, evaluating and executing investments on behalf of Dallas-area real estate firms.

Prior to joining Origin, Matt served as the Vice President of Acquisitions at Behringer Harvard. Earlier in his career, he was an Analyst for Goldman Sachs & Co. Matt holds a Bachelor of Science in Business Administration in Finance from the University of Arkansas. In 2014, he was selected as one of "Tomorrow’s Leaders: Texas’" on behalf of Real Estate Forum Magazine.

He holds an active Real Estate License in the State of Texas and is an active member of the Real Estate Council. Matt is married and he and his wife live in Dallas. He enjoys all things outdoors and the Arkansas Razorbacks.

Dave WelkManaging Director of

Acquisitions

Tom BrineyVP of Acquisitions

– Chicago and Denver

Matt OzeeVP of Acquisitions

– Texas

25

Team Bios Appendix

Priya Venkataraman

Controller

Priya is the Controller at Origin Investments. She manages the accounting and financial operations of the company. She has worked with the Origin team for over 6 years, and during this period has managed the consolidations and reporting for the company.

Prior to joining Origin, Priya was responsible for the financial operations of a national real estate development company with a portfolio of assets totaling to over $200mm. Priya is a licensed CPA and a Certified Internal Auditor. She is also a Chartered Accountant, affiliated with the Institute of Chartered Accountants of India.

Priya is married and lives with her husband and son in Hinsdale. Travel, music, spending time with her family & friends, and tirelessly competing with her 6 year old in geography are some of the things she enjoys the most.

Nick joined Origin late 2015 after spending two years as presentation editor for the Chicago Tribune's business innovation section, Blue Sky. Covering startup culture, entrepreneurship and tech-focused companies in the Chicagoland area quickly introduced him to the diverse technological landscape surrounding Origin's Chicago headquarters.

An Iowa native, Nick's design foundations were laid at Iowa State University, where he majored in graphic design. While in Iowa, he produced and co-hosted a podcast and led the web design team for an anime company for six years.

Nick's love for journalism evolved after joining the Baltimore Sun's interactive media team as the design and technology manager for the in 2012. In addition to data visualization, Nick's love of photography led him to design, build and report on The Sun's most successful blog to date, The Darkroom.

Nick Tann Creative Lead

Benjamin Harris is a Senior Capital Markets Associate who is responsible for raising investment capital and servicing the firm’s investor base. Mr. Harris joined Origin Investments in early 2015 as an Acquisitions Associate and underwrote $1.25 billion of office and multi-family assets.

Before joining Origin, he served as a Financial Analyst for Starwood Retail Partners, a division of Starwood Capital Group. Earlier in his career, Ben was a summer analyst at two of Chicago’s leading commercial real estate firms, MB Financial and Baum Realty Group.

He received a Bachelor of Business Administration with a major in Real Estate and Urban Land Economics from the University of Wisconsin-Madison. Ben lives in the River North neighborhood of Chicago. He regularly participates in local recreational sports leagues, is an avid traveler, and loves to see live music.

Benjamin HarrisSenior Associate

26

Team Bios Appendix

Kyle Verhasselt Associate

Kyle is responsible for underwriting commercial real estate investments, executing property-level business plans and conducting quarterly valuations for portfolio assets at Origin Investments.

Prior to Origin Investments, he completed the Risk Management Leadership Program at GE Capital. In this role, he was a part of GE Antares Capital where he managed a $460mm portfolio of distressed senior secured loans. Kyle began his career as an intern at GE Capital Real Estate where he completed valuation models for all assets.

He received a Bachelor of Business Administration with a major in Real Estate and Urban Land Economics from the University of Wisconsin, Madison. Kyle lives in the West Loop neighborhood of Chicago. Originally from the Wisconsin, he is an avid Green Bay Packers and Wisconsin Badgers fan.

Originally from China, Grace came to the U.S. in 2011 to pursue a Master of Science in Accounting degree, which she received in 2013 from the University of Illinois at Chicago. Previously she studied accounting as a undergrad at Capital University of Economic and Business in China.

After graduating from UIC, Grace worked as a staff accountant at the food industry consulting firm Technomic, Inc. (now part of Winsight), in downtown Chicago. Two years later, she took a role as a Property Accountant at SLM Realty, LLC., where she was first exposed to the real estate industry. Then in April 2016, she joined the Origin family.

Grace enjoys cooking, singing, painting and traveling. During the summer, Grace enjoys biking along Lakeshore Drive and makes the most of the big city by exploring new places, museums, parks, restaurants and festivals. During the unpredictable Chicago winters, she tries to stay active and has found skiing and skating in the park to be her favorite wintertime activities.

Grace LiAccounting Associate

James Grasso Associate

James is responsible for underwriting commercial real estate investments, executing property-level business plans and conducting quarterly valuations for portfolio assets at Origin Investments.

Prior to Origin Investments, James served as a Financial Analyst for Pearlmark Real Estate, a Chicago-based Real Estate Private Equity Group. In this role he underwrote equity and mezzanine investments in addition to providing asset and portfolio management support. He began his career as an Analyst for Wells Fargo’s Real Estate Managed Assets Group, supporting a team that restructured the bank’s distressed debt.

James received a Bachelor of Business Administration from Washington and Lee University where he captained the school’s Cross Country and Track teams. Originally from Connecticut, he currently lives in the Old Town neighborhood of Chicago. He is an avid runner, skier and New York Jets fan.

27

Team Bios Appendix

John Barrett is Executive Director of ISSA, the worldwide association for the cleaning industry. Previously, he was the board director of Eurest Services, a division of the Compass Group, one of the largest publicly-traded food and facility services company worldwide.

John served as the Vice Chairman of SMS Assist, a Eurest Services equity holding company. He was also CEO of Kimco Corp., one of the largest U.S. privately-held BSCs that was acquired by Eurest in 2008.

Prior to Kimco, He held executive positions at York Management, Unicco Service Co., Ogden Services Corp. and the Xerox Co.

John served on the ISSA Board of Directors as BSC director (2010-12), and on its executive committee (2013-2015). He is a frequent speaker at ISSA/INTERCLEAN North America. He has served on the boards of several other organizations, including Gemini Industries and the Building Service Contractors Association International (BSCAI), as well as serving on the boards of Digital Innovations and SDI (Systems Development Integration). He also was recently named to the board of trustees for Dominican University and a director for Power Quality International.

John H. Barrett Board of Advisors

Don McNeill is a Chicago-based entrepreneur who has started a number of businesses in the technology, marketing and entertainment industries. With over 20 years of experience, Don has worked with blue chip clients and other major brands including HBO, AT&T, Netflix, X-Box, Coca-Cola, FX, Boeing, McDonald’s and Nike.

Don currently serves as Executive Chairman of the creative agency Digital Kitchen (DK) which was voted Chicago’s Agency of the Year in 2016. In 2014, DK joined the select handful of U.S. companies that have won the Cannes Grand Prix for Design, one of the world’s most prestigious awards for creativity.

On top of his professional accomplishments, Don is proud to have served as a media delegate to the United Nations since 2014. He is also a member of the Economic Club of Chicago where he serves on both the Technology Committee and Young Leaders Committee. He is actively involved with the Association of Independent Commercial Producers (AICP) where he has served as Chairman as well as the AICP Midwest Chapter President. Don also serves on the board of directors for Favary.com, a startup social shopping company, and as an advisory board member of Digital Hollywood.

Don McNeillBoard of Advisors

Prior to joining Origin, Ashley was a Personal Assistant/Office Manager for Jessica Abernathy, who owns Professional Pet Sitters, Chicagoland Cat Sitters, and Chicago Canine Concierge. There she managed all client care, employee performance, and social media marketing. Before working as an office manager, Ashley worked as a manager at Nordstrom, where she specialized in employee sales development, client relationships, and merchandising.

Ashley received her degree in Apparel and Textile Merchandising from Eastern Michigan University. There she was active as a member of Delta Zeta Sorority and the Fashion Forum club. Originally from Ohio, Ashley currently lives in the Lincoln Park area of Chicago where she enjoys running, yoga, and rooting for the Ohio State Buckeyes.

Ashley FoghtSales Assistant

28

Case Study: Cash Flow of Fund I Appendix

Timing of cash flows of a $250,000 investment in Fund 1

-200,000

-100,000

100,000

200,000

300,000

400,000

$500,000

2011 2012 2013 2014 2015 2016(projected)

Total

Invested Capital Distributed Capital

TotalDistribution

$300,000

TotalInvested

$250,000

29

Case Study: Lux24 Our Track Record

[1] Source: REIS* Includes $16.75 million purchase price plus repositioning costs

Lux24 CHICAGO – MULTIFAMILY

Acquisition Date: 6/5/2013

Total Acquisition Cost: $19.2mm*

Total Price Per Unit: $251k

Gross Realized IRR: 57.4%

Gross Realized Multiple: 3.1x

Investment Thesis:

• Acquired a 67-unit failed condominium project directly from the lender

• 51% occupied with 25 unfinished units

• Significant value-added opportunity to complete build-out, lease up unfinished units and mark rents to market

Market Fundamentals:

• West Loop submarket has experienced some of the strongest absorption and market rent growth1 in the Chicago MSA

• Google’s relocation less than five blocks from the property will further strengthen demand from the target renter: well-educated, young professionals

Value Enhancement / Results:

• Converted larger floorplans to create 5 additional units, $1 million in value creation

• Relocation of fitness center added one unit, $400k in value creation

• Signed a 10 year lease at $25 per square foot triple net, 40% above pro forma

• Repurchased condo units (averaged $270k per unit) achieving fee simple title

• During the 33-month investment hold period, Origin grew top-line and NOI by 12.5% and 23.4% per year, respectively

• Executed a disposition of the asset for $34.8 million to a buyer seeking a tax deferred exchange strategy, a doubling of the $16.75 million acquisition purchase price

30

Case Study: Cambridge Corporate Center Our Track Record

Cambridge Corporate Center CHARLOTTE – OFFICE

Acquisition Date: 8/14/2014

Total Acquisition Cost: $46.2mm

Total Price Per Square Foot: $136

Gross Projected IRR: 27.1%

Gross Projected Multiple: 2.4x

Investment Thesis:

• Opportunity to acquire a three-wing, Class A, multi-tenant office asset below replacement cost

• Competitive advantages in above-market parking and redundant power system

• Predictable income from well-established tenant base with good credit (GM and Duke Energy)

• Opportunity to add a 100,000 square foot user

Portfolio Fundamentals:

• Located in University Research Park, 10 miles northeast of the Charlotte City Center

• Second largest employment center in the region

Value Enhancement / Results:

• Secured 97,600 square feet, 10-year lease valued at $20 million, increasing occupancy to 96% from 81% at acquisition

• Executed 5-year renewal with Duke Energy for 31,000 square feet with 11% rent increase

• Building re-measurement increased rentable area by 24,000 square feet (7%)

• Realized $60,000 in annual expense savings by implementing security camera system

31

Benefits: Diversification Appendix

Private Real Estate

Public Real Estate Stock Bonds

Market Indices NCREIF NAREIT Russell 3000Barclays U.S.

Aggregate

NCREIF (Private Real Estate)

1.00 0.13 0.23 -0.24

NAREIT (Public Real Estate)

0.13 1.00 0.58 0.14

Russell 3000 0.23 0.58 1.00 0.03

Barclays U.S. Aggregate -0.24 0.14 0.03 1.00

Low correlation to other assets

Source: National Council on Public Employee Retirement Systems

32

Benefits: Low Volatility Appendix

Source: TIAA-CREF Fall 2014 Asset Management Report

Historically four times less volatile than publicly-traded real estate

Total Return

’93-40

-30

-20

-10

0

10

20

30

40%

’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14

NAREIT (Public Real Estate) NCREIF (Private Real Estate)

33

Benefits: Portfolio Enhancement Appendix

*PNC – The Role of Public and Private Real Estate in an Investment Portfolio

Stock & Bonds Only Add Private Real Estate

Expected Return 9.36% 9.48%

Standard Deviation 11.41% 9.58%

Sharpe Ratio 0.82 0.99

Improves the risk-adjusted returns of an investment portfolio

Real Estate

Bonds

Stocks

40%

60% 32%

20%48%

34

FAQ Appendix

What is an accredited investor?

An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D. In order to qualify as accredited, an investor must accomplish at least one of the following:

• Earn an individual income of more than $200,000 per year, or a joint spousal income of more than $300,000 per year, in each of the last two years and expect to reasonably maintain the same level of income

• Have a net worth exceeding $1 million, either individually or jointly with his or her spouse (excluding the primary residence)

• Be a bank, insurance company, registered investment company, business development company, or small business investment company

• Be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered

• Be a business in which all the equity owners are accredited investors

• Be an employee benefit plan, a trust, charitable organization, partnership, or company with total assets in excess of $5 million

Will I be asked to verify my status as an accredited investor?

Yes, once you decide to invest in a property, you will be required to show that you qualify as an accredited investor.

What if I have questions about a specific investment?

Registered users will be given an Investor Contact who is available to answer any questions. A link to their email will be available when you are logged into the portal, or feel free to contact us directly at (800) 628-8008.

Can I invest through an LLC, Trust or IRA?

Yes, investors are able to invest through an LLC or Trust; Investors are also able to invest through their traditional Self Directed IRAs. Please contact Investor Relations if you need help selecting a custodian.

35

FAQ Appendix

Is the Origin platform secure?

Origin Investments takes security of our users’ data seriously, and we consciously take steps to ensure all information remains secure. Origin Investments adheres to the following principles in concern for the security and privacy of its customers:

1. Design for Security: We believe in security throughout every level of our customer’s experience. Therefore, our development, technical, and support staff are trained to improve and maintain upon our platform with security in mind, and do so with the support of the highest levels of our organization.

2. Standardized Security Controls: All components are held to the same standards of compliance to security policies, redundancy, and resilience against attacks.

3. Continuous Monitoring and Review: By remaining vigilant on our systems through audits and regular reviews, we maintain the integrity of our system and continue to enhance our user’s experience.

Where necessary, Origin Investments works with 3rd party services in an effort to provide our customers with the most efficient and secure experience possible. In such cases, these core components of our policy still apply.

Am I able to cash out of my investment at any time?

No. By their nature, real estate investments have a longer-term time horizon than that of liquid stocks or bonds. Each investment will have a thoroughly detailed business plan outlining the timeline to realize the investment. Timelines may vary from 3 to 5+ years. Please read and understand each investment offering carefully before making an investment.

What happens to the money when I fund an investment?

Funds can be wired directly into the operating account of the underlying investment, or sent by check to an independent fund administrator. Origin uses Liccar Certified Public Accountants for its Fund Administration. Liccar, CPA will administer all equity contributions and distributions. Origin does not handle cash internally.

36

FAQ Appendix

How will I be updated on the progress of my investment?

Investors can access updated account information 24/7 by logging into the portal. Investors can opt in to receive weekly asset management updates via email. Origin also sends out detailed Investor Reports on a quarterly basis.

How often should distributions be expected?

On individual investments that are cash-flowing, an investor can expect to receive quarterly distributions. Origin also distributes capital to investors when properties are sold or refinanced. The business plan of each opportunity provides detailed projections on all sources of capital distributions.

What is a K-1? Similar to a 1099, a Form K-1 is an accounting of the tax income for the year. Each investor receives one per investment. Form K-1s are most commonly used in partnerships and in real estate ownership.

Why does Origin use Liccar?

Liccar is both an alternative fund administrator and a full-service public accounting firm located in the heart of the Chicago’s financial district. The firm is primarily comprised of CPAs and MBAs with significant experience in the alternative investments industry either from a public accounting background or actual operational experience as former CFOs or Controllers. Liccar’s business model allows them to easily scale their services to specifically meet each client's needs and their client financial reporting can be easily customized to meet specific client requirements, providing unparalleled flexibility.

37

Contact Origin Investments Appendix

CHICAGO350 N LaSalle, Suite 1000

Chicago, IL 60654 (312) 961-9800 | (800) 628-8008

Fax: (312) 337-7380

CHARLOTTE201 South Tryon St, Suite 950B

Charlotte, NC 28202 (800) 628-8008

DALLAS4514 Cole Avenue, Suite 600

Dallas, TX 75205 (800) 628-8008

o r i g i n i n v e s t m e n t s . c o m20170110r

DENVER999 18th Street, Suite 3000

Denver, CO 80202 (800) 628-8008

http://origininvestments.com

origin fund iii · lee park tower i & ii dallas 120,878 sf closed aug. 2016 $14.0 value-add...

Documents