passco exchange

THE JULY ISSUE

EXCHANGEBABY BOOMERS

VS.

MILLENNIALS

Are Baby Boomers and Millennials really

that different?

2 | THE EXCHANGE - JULY 2015 PASSCO COMPANIES, LLC

EXECUTIVE TALKWITH OGAL CLASPELL Senior Vice President, Realty Investments

Passco strongly believes in the importance of utilizing market research in making investment decisions. We apply this discipline at the macro-level such as the data supporting this article, as well as at the micro-level when underwriting specific transactions. During 2014, approximately $112 billion of multifamily transactions traded in the United States according to Multifamily Executive, which was 9% higher than 2013. This volume represents a continuance of the high transaction trend seen for several years in the multifamily sector. Capitalization rates in 2014 for apartments remain below corresponding rates of the other real estate sectors (i.e. office, retail, etc.). The proverbial question is, why? Why does there continue to be strong capital demand for apartments after so many years? The answer to this question can be found with a little market research and is connected directly to renter demand for apartments.

It is widely accepted that the prime renter age range is 18 to 34. Home ownership rates for this age group have always been low, relative to older age groups, and are currently at the lowest levels in the last 30 years. If these people do not own their home, then they likely are either renting or living at home with their parents. Either way, the renter pool is now higher than at any time during the preceding 30 years because of the lower home ownership rates.

The Millennial population is 80 million strong, which is larger than the Baby Boom generation at 75 million. The oldest of the Millennials is 35 and the youngest are not yet adults. In other words, the Millennials are at or still coming into the primary renter ages. The peak ages of the Millennials are currently 24 to 25. Thus, the largest generation (Millennials) the nation has ever seen has a peak age (24-25) that still has 10+ years before it ages-out of the prime renter age years.

The latest estimates suggest that nearly 23 million adults under the age of 35 live with their parents. The long-term average is closer to 19 million. Even after accounting for the larger population-base (Millennials), the gap between the long-term norm and the current reality is still a 7-digit figure. If the current figure of 23 million reverts to the long-term norm, millions of young adults currently living with their parents will likely begin renting at some point in the not-to-distant future.

The Great Recession was hard on all age groups, especially young adults (ages 20 to 34). Despite the fact young adults have experienced five consecutive years of positive job growth, this age group remains underemployed. Long-term, Millennials normally experience a 75% labor force participation rate, but is currently at a participation rate of 71.9%. If the current labor participation rate of 71.9% returns to the long-term norm, there is a potential increase of 2 million employed people in the prime renter age group. This may be the means enabling those still living with their parents to begin renting.

One effect of the national economic and employment recovery is increased immigration. Rising employment will fuel steady immigration and household formations. The data strongly suggests that immigrants have a large propensity to rent.

One research report suggests that “there continues to be a great deal of talk that attitudes toward homeownership have changed in a way that will skew more households toward the rental market for years to come.” A recent Wall Street Journal article says that “long-term demographic trend and changing attitudes have diminished the appeal of the traditional American dream of homeownership.”

For those who track such things, there are a lot of published reports and articles on the significant increase in development of new apartment communities across the nation. In fact, 2015 may end up having the highest number of new apartment units constructed in nearly 20 years. And forecasts for subsequent years still suggest strong new development, albeit a lower levels than 2015. The obvious impact will be downward pressure on occupancy and rental rates over the near-term. However, most forecasts project that despite the anticipated significant new development over the next few years, demand for apartment units will be sufficiently strong enough to (1) keep the average occupancy rates at or higher than long-term norms and (2) continue positive effective rent growth.

Data or reports from the following firms were utilized for this brief article: REIS, U.S. Census Bureau, Pew Research Center, Marcus Millichap, American Community Survey, U.S. Bureau of Labor Statistics, Moody’s Analytics, CoStar, Witten Advisors, National Multifamily Housing Council, Wells Fargo Securities, and Wall Street Journal.

PASSCO COMPANIES, LLC THE EXCHANGE - JULY 2015 | 3

EVENTS CALENDARADISA Due Diligence ForumJULY 14-15, 2015EDEN ROC HOTELMIAMI, FLORIDA

Real Share Orange CountyAUGUST 18, 2015HOTEL IRVINEIRVINE, CALIFORNIA

ICSC Western Division ConferenceSEPTEMBER 16-18, 2015SAN DIEGO CONVENTION CENTERSAN DIEGO, CALIFORNIA

ADISA Annual ConferenceOCTOBER 12-14, 2015THE COSMOPOLITAN OF LAS VEGASLAS VEGAS, NEVADA

Real Share Apartments 2015OCTOBER 21-22, 2015THE WESTIN BONAVENTURE LOS ANGELESLOS ANGELES, CALIFORNIA

ICSC New York National ConferenceDECEMBER 7-8, 2015JACOB K. JAVITS CONVENTION CENTER OF NEW YORKNEW YORK, NEW YORK

NMHC Annual MeetingJANUARY 19-21, 2016HILTON ORLANDO BONNET CREEK/WALDORF ASTORIAORLANDO, FL

THE EXCHANGE - JULY 2015 | 3

NEWSLETTER WATCH

Your next newsletter will arrive electronically on August 3, 2015.

ORANGE COUNTY’S BEST PLACES TO WORK

Passco is pleased to have been recognized as one of Orange County’s Best Places to Work by the

Orange County Business Journal for a 3rd consecutive year!

2050 MAIN STREET BUILDING PICTURED ABOVE IS NOT OWNED BY PASSCO COMPANIES, LLC


FROM DIRT TO DEVELOPMENTThere is no arguing with the fact that Orange County, CA has seen a tremendous amount of growth over the past 50 years. Those native to Southern California can remember a time when the land was covered with orange groves and bedroom communities as far as the eye can see. It has evolved into a vibrant and thriving economic center, with developers clamoring for any unoccupied patch of land they can find. What will Orange County look like 50 years from now? Will we still have land to build upon or will 2065 be a time of tear downs and rebuilds?

1968IRVINE, CA – NEWPORT BEACH, CA

Commercial Buildings: 1,149Total square footage: 11.9M

Average Building Size: 10,343 sfTotal Apartment Units: 6,000

2015IRVINE, CA – NEWPORT BEACH, CA

Commercial Buildings: 3,552Total square footage: 85.3M

Average Building Size: 30,545 sfTotal Apartment Units: 28,000

DID YOU KNOW...In 1916, the orange groves were so bountiful on the Irvine Ranch that a 48,000 square foot packing house was built to process the fruit. The facility was located on the Santa Fe Railroad’s Venta Spur at Shop Road ( now Yale Ave.) The prize-winning Valencia oranges of the Irvine Ranch were cleaned and labeled at the Frances Packing House and then shipped around the world. In 1923, the California Fruit Grower’s Exchange became the Sunkist Growers, Inc. The Frances Packing House was added to the National Register of Historic Places in 1977.

DATA PROVIDED BY COSTAR AND AERIALS TAKEN BY FRED EMMERT OF AIR VIEWS


THERE’S SOMETHING FOR EVERYONE IN MULTIFAMILYCARRIE ROSSENFELD GlobeSt.com interviewed Gary Goodman, Vice President, Acquisitions

Enough variety exists in multifamily investment to satisfy foreign investors, value-add seekers and those looking for long-term yield, Passco Cos.’ SVP acquisitions Gary Goodman tells GlobeSt.com exclusively. We spoke with Goodman prior to NMHC’s Apartment Strategies Outlook Conference in Palm Springs in January to get his take on what investors are seeking and anticipated changes for the coming year.

GlobeSt.com: What are investors looking for in multifamily properties?

Goodman: There’s such broad interest in multifamily right now because of the environment. There’s something for everyone. There are a number of investors who will only work for value-add because of better long-term yield, and there

are those of us who want better quality long term. Others seek secondary and tertiary markets for higher yield, and there are those who stay in gateway cities because the performance may be better. You can hardly imagine doing wrong with any of these strategies because there’s such a tailwind in the industry.

GlobeSt.com: What changes do you anticipate for this sector in the coming year?

Goodman: I don’t know that there will be as much of a change as a continuing trend. It’s hard to imagine anything is going to derail this frothy environment for multifamily. There’s so much working in favor of it. There’s a disciplined supply pipeline and a huge demand of Millennials in the renter pool, plus the Baby-Boomer population has become a part of it. They were dismissed in the last several years for multifamily, but the overall trend is so strong, and people have to live somewhere. Many residents including Baby-Boomers and Millennials are getting priced out of the urban cores because rents have gotten so high and apartments are so small. What we’re starting to see is a lot of them moving out into the exurbs, where there are movie theaters and their favorite chain restaurant and they can walk to work. It’s a lot bigger apartment for the money.

The full article was originally published on GlobeSt.com on February 16, 2015.

PASSCO COMPANIES SELLS REPOSITIONED PROMENADE AT HOWARD HUGHES CENTER FOR $111 MILLION

Passco Companies, LLC announced on June 5, 2015 that it has closed the $111 million sale of The Promenade at Howard Hughes Center. This 248,841-square-foot retail center, located in West Los Angeles, was built in 2001 and acquired by Passco in 2005. Passco brought in national tenants such as Dave & Busters and Buffalo Wild Wings, keeping in line with the entertainment center repositioning.

“During our 10-year investment period on the property, we were able to reposition and transform The Promenade at Howard Hughes into the Westside’s premier entertainment-focused destination center, capitalizing on the desires of today’s large demographic of millennial consumers,” said Todd Siegel, Passco Companies’ Vice President of Retail. “With the repositioning and leasing strategy we executed, Passco was able to maintain the asset value throughout one of the worst recessions in retail history.”

THE EXCHANGE - JULY 2015 | 5

BABY BOOMERS Scott Allen • Gary Goodman • Julie Kasper • Donna Ray • Marlene Lees

VS.

MILLENNIALSBrad McCord • Kendall Parisi • Marco Vitulli • Anthony Challenger • Jill Roy

Passco recently held a focus group among our team to find out the answer to a burning question: Are Baby Boomers and Millennials really that different? To determine the answer, our Baby Boomers (1946-1964) and

Millennials (1980 – 2000) provided insightful responses to a series of questions. There were five participants from each group, and the results are quite interesting. Take a look:

Do you prefer to shop in a super center, brick & mortar shop, or online?

Baby Boomers (BB): In many cases, the husbands do the grocery shopping and will travel

less than 1.5 miles from home. Most visit the grocery store daily to pick

up what they need. Power Centers are popular among this group, and participants indicated that they still prefer to visit a brick and mortar store for clothing and

furniture. Online shopping is conducted primarily for items such as electronics and facial products. Amazon

emerged as the leading online site for most of the Baby Boomers interviewed.

Millennials (M): This group prefers to shop at a center that

is within walking distance of their home for both groceries and household

items. Most Millennials will shop once a week if not once every two weeks to stock their kitchen

with the necessities. Those who rent (which, incidentally, are four out of the five

Millennials in this focus group), say that they purposefully select a residence that is in close proximity to a shopping center with a grocery store, coffee shop, and other services to meet

their needs. The Millennial group prefers online shopping because they would rather avoid physically going to a store. Like the Baby Boomers, this group likes Amazon because “it has everything.” That said, several of the Millennials confirmed that they prefer to shop via online counterparts to brick and mortar shops based on the ease of returning items if needed.

How much time a day do you spend on social media, and which platforms do you use?

BB: The popular sites for Baby Boomers are Facebook and LinkedIn, while one respondent noted that he uses Twitter to stay current on events, though he does not tweet. Spending less than an hour a day on social media, the Baby Boomers primarily peruse their feed for updates on family and friends, occasionally posting themselves. Often only one spouse has an account, and the other uses that account to log in and review the activities of friends and family. Most hadn’t visited their LinkedIn page in over a year.

”The reason people are getting into Snapchat, and now Periscope, is because there’s that immediate

interaction with people not only all over the country, but all over the world, where you have to view

something within 24 hours or it’s gone.[ KENDALL PARISI Millennial ]

M: Snapchat and Instagram are the two front runners for the Millennials. Spending an average of four hours a day on social media, this group loves the idea of “live interaction,” and is enamored with the concept of posts that are removed within a matter of seconds

after viewing (i.e. Snapchat). The majority of the Millennials have an active LinkedIn account that they update regularly and use for business networking. Let’s not forget Facebook – while each Millennial interviewed has an account, they view Facebook as “old news,” based primarily on their constant need to stay ahead of the trends. One major factor affecting the popularity of Facebook among this group is the fact that their parents - the Baby Boomers - are now on the platform. On Facebook, Millennials don’t want to post anything that their parents will see or worse yet, comment on.

Do you prefer to live in an urban or suburban setting?

BB: The outcome of this question is particularly interesting. Even though all of the Baby Boomers who participated in this focus group are currently living in suburban homes, the majority say that they wouldn’t mind downsizing once they approach retirement and are “empty nesters.” They agree that living in an apartment with stylish amenities would be a welcome change, as they would no longer need to worry about the constant upkeep required when owning a home. Many said it would provide them the freedom to travel more, freeing them from worrying about their home while they are away.

M: The Millennials’ responses were exactly opposite. Four of the five Millennials interviewed confirmed that they would love to live in a house in the suburbs in the next few years. It’s important to note that the Millennials interviewed live in Orange County, which is primarily suburban. That said, most in this group currently live in apartments and/or townhomes in close proximity to local “hot spots and shopping,” and, unlike the Baby Boomers, are hoping for a house in the future. Ultimately, however, each Millennial participant confirmed that owning a home, especially in California, seems to be an unattainable goal in the current market.

”Homeowning seems so far out of reach that I’m just going to rent forever and have fun in the meantime.

[ ANTHONY CHALLENGER Millennial ]

Do you eat out or cook at home?

BB: Baby Boomers typically go out for dinner approximately three to four times per week. When they do cook at home, it is often for a larger group, and typically, it is unexpected. Since the Baby Boomers cover such a wide range of birth years, they have become parents to both Gen X and Millennials. Our respondents told us that their children love the idea of a “free home-cooked meal,” and generally show up unannounced. This explains why Baby Boomers shop more frequently - they have become accustomed to cooking impromptu dinners for multiple people.

M: The majority of our Millennials eat dinner at home more than they dine out. This is largely because of spending throughout the day. Typically, by dinner time, Millennials have already spent $5.00 on coffee or a juice drink for breakfast and $10.00 to $12.00 on lunch. Based on this spending this group prefers to go home and prepare a simple meal for themselves at dinner. Participants confirmed that

they generally save the dining out experience for the weekends and/or social events with friends.

Did you get an allowance growing up?

BB: The average allowance earned per week was around $5.00 for Baby Boomers, and most in this group started doing chores around the age of eight, continuing all the way through high school. Typical chores included doing the dishes, vacuuming, taking out the trash, mowing the lawn, cooking dinner and doing laundry, all of which helped the entire household.

M: The majority of our Millennials earned a decent amount of money (approximately $100/month) for making sure their room was picked up and bed was made, with the occasional “Will you take out the trash?”

There were two potential reasons that emerged as drivers of this generational difference. First, it is possible that Baby Boomer parents reflected on their own childhood, filled with responsibility, and simply didn’t want to put this on their own children. As a result, they refrained from assigning household chores to their children. Second, the demands on Millennials as children have proven to be much greater than many prior generations. Most Millennials were in two to three sports at a time, learning to play the piano, sing, dance, and participating in various other activities needed to advance in society. Most often, this group was so busy studying and practicing that there simply wasn’t enough time for chores.

Interpret this quote: “You can love your job, but your job won’t love you back”

BB: Your entire life shouldn’t revolve around your job. There needs to be a healthy work/life balance.

M: Job security and career growth is more important than loving your job. In today’s competitive job market, when you secure a position, you should give it 150% at all times. While being passionate about work is the ideal, everyone is a commodity, and it’s important to stay focused on your future goals in order to stay employed and get ahead.

”Your entire life shouldn’t revolve around your job. There needs to be a healthy work/life balance.

[ SCOTT ALLEN Baby Boomer ]


RETAIL CRITERIA• Purchase Price: $5 million to $50 million• Core and Value-Add Assets• Neighborhood Centers; NNN Single Tenant• Ability to close all cash with no financing

contingencies.• Target Markets: California, Seattle, Phoenix,

Las Vegas, Denver, Portland, Texas.

INDUSTRIAL CRITERIA• Purchase Price: $5 million to $50 million• Core and Value-Add Assets• Single and multi-tenant

PASSCO IS LOOKING FOR RETAIL AND INDUSTRIAL INVESTMENTSINTERESTING SYNERGY BETWEEN THESE TWO ASSET CLASSESBOB PETERSON Vice President, Investments and RYAN EICHORST Acquisition Analyst

PAST: Dating back to the late 1990’s and early 2000’s, Passco originally built the organization by investing in retail and industrial properties. At that time, the focus was on grocery-anchored centers, power centers, malls and smaller industrial buildings. By 2005, Passco had acquired $1.1 billion in retail and industrial properties. Around this time, the Passco executive team began to see a shift in market trends and made a conscious decision to aggressively pursue multi-family assets. Since 2005 Passco has acquired over 12,000 multi-family units throughout the United States. Passco has now decided to leverage off our outstanding infrastructure and today is pursuing stabilized and value add multi-family, retail and industrial assets on behalf of a variety of capital sources. Throughout Passco’s history, we have kept as our top priority to deliver the best risk adjusted returns possible for our investors.

PRESENT: There is an interesting convergence occurring between the retail and industrial sectors as more consumers are looking to the internet in lieu of having to go to the store. Two thirds of gross domestic product in the U.S. is driven by consumer spending. Much of the product comes in through the ports from overseas markets and is then held in huge distribution centers (DC’s) before heading out on truck to the bricks and mortar store locations. On line sales are usually handled out of these DC’s. On line retailing currently represents about 6% of retail sales and is expected to move to 10% in the near future. This shift changes the roles of industrial vs. retail projects which will ultimately impact the size and design of these buildings. Having a pulse on these changes effects the investment strategy we employ.

We believe that certain industrial product in infill markets will play a greater role in distribution of consumer goods. We also feel that the focus in retail must be on necessity products that are somewhat resistant to the threat of on line purchases. For example, it should be quite some time before you can get a latte’, your nails done, or a haircut via the internet. Passco recognizes and embraces this synergy created through the new consumer buying trends between traditional brick and mortar stores and on-line retail. It sees a continued demand for strong retail locations and the need for retailers to keep both their store shelves and their warehouses full to meet the needs of the multi-faceted consumer of today.

The combination of rising land prices within infill, primary markets and the demand created by ever increasing populations of consumers, makes industrial investment in the right markets very attractive. Often time you will find older obsolete industrial product converted to higher and better use such as retail or multi-family which is actually shrinking the overall base of industrial product in these infill markets. On the retail side, Passco understands that the consumer is looking for an “experience” when shopping which often includes some form of entertainment. We are striving to find centers that accommodate this need and offer the consumer a healthy mix of service based tenants that are fairly resistant to the increasing demand seen from on line shopping.

FUTURE: The present is already predicting what the future holds. It is important that Passco stay in tune with these trends and continue to mold their investment strategies to invest in both retail and industrial properties that accommodate the consumers of tomorrow. Millennials are looking for a very different retail experience than their baby boomer parents and this must be factored into our strategy as well. The internet will continue to grow as an avenue to purchase commodity type products. Passco’s diverse investment history has taught us to embrace change, not run from it. After seeing what has happened over the past 25 years in the retail and industrial markets, Passco understands the importance of remaining flexible and aware of future trends as we pursue investments on behalf of our investors.


TAKING RETAIL INTO THE FUTUREPASSCO WRAPS UP ICSC RECon 2015

WHY THE DELOREAN?

The time traveling DeLorean featured in the iconic “Back to the Future” movies travels 30 years into the future and arrives in our current year - 2015.

But wait - there’s more.

Passco Companies actually acquired the Puente Hills Mall, which was featured in “Back to the Future” as the movie’s fictional “Twin Pines Mall.” This was an important acquisition for our firm. We purchased the property for $148 million in 2003, and sold the asset in 2005 for $171 million - a price that, at the time, marked the largest Tenant in Common (TIC) transaction to date.

HOW IS PASSCO TAKING RETAIL INTO THE FUTURE?

When Passco was founded in 1998, we focused on acquiring quality retail product. In fact, our very first purchase was a retail center.

Based on our rich heritage in this product type, we are now re-dedicated to retail investment, and our team is focused on identifying quality retail assets throughout the U.S. that reflect the future of this evolving business.

WHAT IS THE SIGNIFICANCE OF THE TIMELINE FROM THE 1980s - 2015?

The timeline in our RECon booth follows the 30-year span of the “Back to the Future” movie, which was filmed in 1985, and took its characters into the future to October 21, 2015.

The timeline demonstrates how products, retail terminology, and our shopping habits have changed throughout the years, and reminds us all just how much this industry will continue to change as we forge ahead into the future of retail.



MARCH 2015 Name: Chris RodriguezCurrent Title: IT ManagerTime with Passco: 3 years

What first attracted you to the field of information technology (IT)?When I was in 4th grade, my school setup a shiny new Apple IIe computer in our classroom. I was hooked the first day I got my hands on it. Whenever I had the chance I would sneak back and tinker

around for a few minutes. Since then I’ve always loved playing with any kind of technology. If someone told me back then the things I’d be able to do now with computers I wouldn’t have believe it.

If I weren’t working in information technology (IT), I would be…The only thing that I love as much as technology is art and design, so I’d say marketing. With the amount of information we get from our mobile devices, I think there’s a strong connection between technology and marketing and how we use both to communicate messages to each other.

I wish I knew how to……be a carpenter. In a world where you can get everything you need from a store, there’s something cool about being able to take some wood and tools and build something with your own hands.

APRIL 2015 Name: Ronnie HarrellCurrent Title: Analyst, Realty InvestmentsTime with Passco: 8 1/2 years

Name three essential attributes an individual needs to excel in your field?The 3 P’s. Passion, Patience and Prioritization. You must have a passion for Real Estate. Patience to work through all of the expected and unexpected challenges of an acquisition from start to finish. And

lastly prioritization. There are times when you may have multiple transactions under contract and the ability to prioritize the needs and requests both internal and external is very important to the success of each transaction.

Who inspires you?My dad; he’s inspired me to become successful. From a very young age, my dad has always been my mentor, career advisor, and role model, but most importantly, my friend. He has advised me from day one to take responsibility for my actions, give everything my all, set goals, and above all else never quit. My dad inspires me not only in his words but also through his actions. He has such a positive outlook on life that is so contagious. He instilled in me to see every challenge as an opportunity and every opportunity as a call to action. I have seen many examples through both my childhood and adult life, on how my dad converted challenges he encountered into opportunities.

TV show you wish was still on the air?Miami Vice. Growing up the child of a father who was in law enforcement, I was enamored with this show about being a police detective in the city of Miami.

I remember telling my dad that we should move to Miami so he could be a police over there because it seemed so much more exhilarating.

MAY 2015 Name: Howard WongCurrent Title: Director of Retail LeasingTime with Passco: 6 years

What first attracted you to the field of leasing?Growing up, my family owned real estate where we would rehab homes and duplexes, and my mother was a real estate agent, so I’ve always been surrounded by real estate and enjoyed the industry. Being in this position, you get to wear the

hat of multiple aspects of the business: sales, contracts, finance, marketing, statistics, legal, entrepreneurial and deal making! It makes every day different and exciting.

If I weren’t working in real estate investments, I would be…...in Acquisitions. I’ve always been involved in real estate by creating opportunities after a shopping center is acquired, from new developments to leasing up an existing asset. I think it would be interesting to come in at the beginning and acquire the real estate with the knowledge and wisdom that I have acquired in leasing, and to see the fruits of success from the acquisition in the beginning, to selling the asset in the end.

TV show you wish was still on the air?Taxi. I love all the characters on the show, as they depict characters in real life. I miss Louie De Palma, Alex Rieger, Elaine Nardo, Banta, Latka, Wheeler and Jim Ignatowski. Good news is that I get to live the life of Taxi at Passco with the same characters!

I would have picked Seinfeld, but it’s on weeknights at 10:00 p.m. and 10:30 p.m.

JUNE 2015 Name: Nicole FullertonCurrent Title: Manager, Investor CommunicationsTime with Passco: 13 years

Name three essential attributes an individual needs to excel in your field?Attention to detail, the ability to multi-task and a positive attitude.

If you could go to lunch with anyone, who would it be and what would you order? My grandpa. He passed away before I was three so I don’t have any memories of him. We would go to a cute little coffee shop and have a slice of rhubarb pie – his favorite.

Best moment in your career thus far? Graduating from CSULB in 2007. I had been working part time for Passco in the Investor Services department prior to graduation and was given full time status at the time of my graduation. I really feel as though that was when my career truly began.

2015 EMPLOYEE SPOTLIGHT RECAP


GIVING BACKCHILD ABUSE PREVENTION CENTERAdriana Olsen participated with family and friends in the Ragnar Relay So Cal on April 10-11, 2015 to support the Child Abuse Prevention Center. The 200 mile race from Huntington Beach to San Diego over the course of 2 days and 1 night, supports

every single child and family that comes to them for help, making the ultimate difference in their lives.

KIDWORKSOn April 27, 2015, Bill Passo, Jack Fitzgibbon, Scott Allen and Alan Clifton participated in the KidWorks Golf Classic, to support their mission to transform challenged neighborhoods in central Santa Ana, by building on the strengths

and potential in the community through education, character formation, and personal development.

WORLD VISIONAndy Wang participated in the OC Half Marathon on May 3, 2015, teaming up with World Vision to help bring awareness to the need for water in developing nations, specifically Africa. They activate partnerships and community engagement to bring clean water to people around the

world, helping create fullness of life for children in need.

AMGEN BREAKAWAY FROM CANCEROn May 17, 2015, Gail Jones and her family participated in the Breakaway Mile to honor and celebrate cancer survivors, and increase awareness of important resources available to people affected by

cancer – from prevention through survivorship.

CATHOLIC CHARITIESJack Fitzgibbon participated in the Catholic Charities Fundraiser Picnic on May 17, 2015 to support their mission to serve people in need, strengthen family and community, support parish ministries, and to extend God’s love to all.

GERMAN SHEPHERD RESCUE OF ORANGE COUNTY (GSROC)Alina Clougherty has been volunteering with the German Shepherd Rescue of Orange County for about 5 years, participating in events such as, weekly

adoptions, fundraisers, the 4th of July Lake Forest Parade, comedy night and many others. She is currently fostering an 11 month old puppy with a heart condition.

HUMAN OPTIONSScott Allen currently serves on the Board of Directors for Human Options, who provides a safe haven and life changing programs to help abused women, their children and families rebuild their lives – and works with the community to break the cycle of domestic violence.

OTHER CHARITIES SUPPORTED BY PASSCO EMPLOYEES

The Arthritis FoundationChildren’s Foundation

Children’s Hospital of Orange County (CHOC)DAWG

Families ForwardFreedom Alliance

Grants WishesHarvest Craft

Juvenile DiabetesMariners Church

Orange County Fire AssociationOrange County Police Association

Orangewood

Pediatric Brain TumorPediatric Cancer Research Foundation

Red Nose FoundationRett Syndrome Foundation

Salvation ArmySegerstrom Center for the Performing Arts

Olive CrestShare Our Selves Adopt a Family

Special OlympicsSusan G. Komen

Trails 4 AllVietnam Veterans of America

PROMOTIONSOGAL CLASPELL Senior Vice President, Realty Investments

JEFF OLSHAN Vice President, Asset ManagementBRIAN ODELL Director of Asset Management

CHUN YUN Senior Real Estate Accountant

NEW HIRESBOB PETERSON Vice President, Investments

SHELLI CUSACK Director of Asset Management COLIN GILLIS Director of Acquisitions

MACE RAPSEY Portfolio Analyst


PASSCO COMPANIES, LLC | 2050 MAIN STREET, SUITE 650 | IRVINE, CA 92614 | P: 949.442.1000 | WWW.PASSCO.COMIRVINE CA | DENVER, CO | AUSTIN, TX | DALLAS, TX | ATLANTA, GA

This brochure is neither an offer to sell nor the solicitation of an offer to buy any security, which can be made only by the applicable prospectus filed or registered with appropriate state and federal regulatory agencies, and sold by broker-dealers authorized to do so. For those considering an investment in any Passco program, this brochure must be read in conjunction with the applicable prospectus in order to fully understand all the implications and risks of the respective offering of the securities to which it relates.

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