stockton property opportunities fund i identifying and capitalizing on the historic and...

STOCKTON PROPERTY OPPORTUNITIES FUND I

Identifying and capitalizing on the historic and unprecedented opportunities currently existing in the U.S. property and debt markets.

Private and ConfidentialJanuary 2008

Table of Contents

Stockton Focus ………………………………….……. 1

Overview……………………………………….……… 2

Field vs. Financial Workout …………………….….… 4

Timely Investment Opportunity ………………….…… 5

Recent Subprime Bailaouts …………………………… 6

CDOs and SIVs …………………………………...…… 7

Subprime Write Offs…………………………………… 9

Stockton Investment Strategy ..………………………… 14

Management Team Experience….……………………… 19

Management Team’s Projects ….………………………. 20

Stockton Fund Summary ………………………………. 22

Key Industry Relationships ……………………………. 23

Real Estate Cycles ……………………………………… 25

Management Team’s Prior/Current Projects…………… 27

STOCKTON PROPERTY OPPORTUNITIES FUND I© 2008. Subject to Understanding of Confidentiality. Do not copy or distribute.

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Stockton Focus

Acquire undervalued property and debt investments throughout the U.S. at significant discounts to current market value, stabilize and resell assets at considerable profit.

The convergence of several unprecedented economic conditions has softened the U.S. property

and mortgage markets, presenting significant opportunities to purchase considerably discounted property and underlying debt.

Utilizing the extensive experience and vast network of its Management Team, Stockton will identify opportunities and acquire undervalued property and deeply discounted mortgage debt.

Acquired property will be stabilized and primed for resale.

Field workout teams will restructure debt and simplify property repossession. Stabilized property and debt will be repackaged and sold.

Holding period for both asset classes will not exceed 6 – 12 months, then sold at a premium.


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Overview

Management Team

Core group comprised of seasoned, distinguished professionals with widespread understanding of the U.S. property and finance markets.

Experience includes management of a publicly traded property company.

Successfully owned, operated, developed and invested in real estate projects throughout the U.S., including such major markets as Florida, Chicago, Washington, D.C. and New York.

Longstanding relationships with an array of lenders – well established network of leading figures in the property and lending markets facilitate the purchase of property and mortgage debt at significantly reduced prices.


Overview

Unprecedented growth from 2001 to 2006. Residential home prices rose and interest rates fell to 50-year lows. Mortgage lenders relaxed lending criteria thereby fueling growth in residential and debt markets.

Increase in volume of subprime loans to non-conforming borrowers and lax lending standards creates pent-up volitility.

The U.S. housing bubble led to the current residential market correction. Some borrowers with high loan-to-value ratios find themselves with property worth less than outstanding mortgage loan balance, a condition known as negative equity.

Homeowners with negative equity are unable to, or elect not to, remain current on mortgage payments. Underperforming debt and increase in the foreclosure rate has led to current mortgage crisis.

Two million Adjustable Rate Mortgages (ARMs), representing some $362 billion in value, are scheduled to reset in 2008 – many of them in a state of negative equity.

Over the past decade, Wall Street has built a market for more than $2 trillion in securities backed by loans to U.S. homeowners. This market is beginning to unravel as CDO and SIV values plummet.

Initial estimate of total losses on subprime and similar mortgages range from $150 billion to $400 billion.

Market/Economic ConditionsCauses of current decline in U.S. property and debt markets/subprime crisis:

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Field Workout vs. Financial Workout

Field workout involves the purchase of debt portfolios at significantly discounted pricing, analyzing a definitive exit strategy for each asset, and selling each asset within the given portfolio. Financial workout entails the purchase of debt portfolios at discounted pricing, undertaking nominal restructuring, repackaging and selling the portfolio at a marginally higher price. The former method incorporates a hands-on approach, managing each asset from acquisition through final disposition. Retaining control of the overall process ensures that profits are maximized to the fullest potential.

Stockton’s focus and market advantage is as a field workout company. Unlike financial buyers, field workout buyers are not sensitive to downward movements in the market. Well purchased assets will be sold at a premium to acquisition cost, regardless of potential price depreciation. Nonperforming debt will either be worked-out and converted to performing status and resold close to par value, or the mortgage will be foreclosed and property stabilized and sold at fair market value.

As a field workout company, Stockton is able to purchase a greater array and variety of debt portfolios as it maintains a hands-on approach to asset management and disposition. Working face-to-face with each debtor, Stockton’s field team will conduct a situation assessment to accomplish one of the following:

Convert nonperforming loans to performing Obtain a Deed-in-Lieu-of-Foreclosure Commence foreclosure on the subject property

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Timely Investment Opportunity

Time sensitive, unique market opportunity to purchase traditionally resilient property at temporarily reduced pricing.

The subprime crisis and decline of the U.S. property and mortgage markets have created unparalleled investment opportunities.

Capitalize upon these advantageous conditions by acquiring prime residential and commercial property and mortgage debt, at substantially discounted rates. Each asset will be stabilized and sold at a a premium.

Experts advise that U.S. is currently near low point of property market cycle and expect recovery within next 12-18 months. Select markets are entering recovery phase.

U.S. Dollar is at its lowest historical level to Euro and thirty year low to the British Pound Sterling.

Weak exchange rate for U.S. Dollars offers notable purchase advantage for foreign investors.

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Recent Bailouts Due to Subprime Exposure

Investor Recipient Investment Amount Date

Citadel Investment Group E*Trade $800 million* week of 11/19/07

Abu Dhabi Investment Authority Citigroup $7.5 billion week of 11/26/07

China Investment Corp. Morgan Stanley $5 billion ** week of 12/17/07

Government of Singapore UBS AG $11.5 billion week of 12/17/07Investment Corp. + unnamed Middle Eastern investor

Temasek Holding Pte. Ltd. Merrill Lynch & Co. $5 billion week of 12/24/07(Singaporean state-owned company)

* Portfolio valued at $3 billion, representing a discount to $.27 of par value.

** Represents a 9.9% interest in the company

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Asset-Backed Securities: CDOs & SIVs

Problems in the CDO (collateralized debt obligation) and SIV (structured investment vehicle) markets will generate additional supply of debt portfolios in 2008.

According to a recent J.P. Morgan Chase study, about $173 billion of CDOs backed primarily by U.S. subprime mortgage bonds and related derivatives were created in 2006. About 40% of CDO collateral is residential mortgage backed securities. Almost three quarters of that is in subprime and home-equity loans, with the balance in higher-quality, prime home loans.

Through December 21, 2007, Standard & Poors lowered its ratings on 1,078 CDO tranches from 353 transactions. The affected tranches represent a total of $68.16 billion.

According to Moody’s Investors Service, approximately 42% of CDOs sold in the U.S. in 2006 contained subprime securities.

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Asset-Backed Securities: CDOs & SIVs [continued]

SIVs borrow money by issuing short-term securities at low interest, reinvesting funds in long-term securities at higher interest, thereby profiting from the spread. Since SIVs rely on short-term commercial paper to finance longer term assets, there is a constant need to renew funding. As of September 2007, the SIV market has suffered from illiquidity, thereby compelling many SIVs to dispose of its assets a discounted prices.

Because many SIVs are affiliated with banks, these banks will be forced to either infuse each SIV fund with sufficient capital in order to forestall failure or unravel the SIV, thereby selling its assets. The latter option will result in the liquidation of billions of dollars of mortgage-backed securities and other assets into the current weakened market at significant discounts to par value.

Approximately $350 billion in debt issued by SIVs will be coming due before August 2008.

On September 16, 2007, representatives of financial institutions including Merrill Lynch, Bank of America, J.P. Morgan Chase, Bear Stearns, Barclay’s PLC, Citigroup and Goldman Sachs reached a consensus that large scale dumping of SIV assets was a likely outcome over the next year.

On December 14, 2007, Citigroup, the largest player in the SIV market, bailed out its seven SIV funds for $49 billion. The value of these funds was $66 billion on December 1, 2007, reduced from $100 billion in August.

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Subprime Debt Written Off by Banks

Through December 20, 2007, financial institutions have announced more than $50 billion of write-downs and losses.

Bank Amount of Write-down Type of Loss Period Covered

Citigroup $14.5-17.5 Billion Subprime Mortgages Q4 2007 UBS AG $13.7 Billion Subprime Mortgages Q4 2007 Morgan Stanley $10.3 Billion Subprime Assets/Leveraged Loans Q3 2007 Merrill Lynch $8.4 Billion CDOs/Subprime Mortgage Q3 2007 Credit Agricole $4.8 Billion CDOs Q4 2007 Freddie Mac $3.6 Billion Subprime Mortgages/CDOs Q4 2007 Bank of America $3.7 Billion Subprime Mortgages Q4 2007 HSBC $3.4 Billion Subprime Mortgages Q4 2007 Deutsche Bank $3.1 Billion Mortgage-Backed Assets Q4 2007 Barclays Capital $2.7 Billion Subprime Mortgages 2007 Royal Bank of Scotland $2.6 Billion Investment Banking 2007* Washington Mutual $2.4 Billion Subprime Mortgages Q4 2007 Goldman Sachs $2.4 Billion Leveraged Loans Q3 2007** Lehman Brothers $2.1 Billion Asset Backed Securities Q3&Q4 2007 Bear Stearns $1.9 Billion Subprime Mortgages Q42007 Credit Suisse $1.9 Billion CDOs Q4 2007 J. P Morgan Chase $1.6 Billion Leveraged Loans/ CDOs Q3 2007 Wells Fargo $1.4 Billion Mortgage Writedoens Q4 2007 LBBW $1.1. Billion Subprime Mortgages Q4 2007 Wachovia $1.1. Billion Structured Products Q3 2007 Swiss Re $1.07 Billion Mortgage-Backed Securities Q4 2007 CIBC $750 Million Subprime Mortages Q1 2008 Commerzbank $440 Million Subprime Mortgages Q3 2007*forecast**Despite such loss, GS generated nearly $4 Billion of profits betting that securities backed by risky home loans would fall in value, thereby generating overall net profits of $1.6 Billion.

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Stockton Investment Strategy

The Approach: Stockton’s management will focus on three primary areas of operation:

A. Acquisition of Distressed Residential Communities

B. “REO” Portfolio Acquisition

C. Underperforming and Non-Performing Debt


A. Acquisition of Distressed Residential Communities

The Management Team recognizes significant opportunities in acquiring multi-family communities at tremendously undervalued rates. Whether a failed residential condominium conversion or a distressed apartment complex, there exists a multitude of below-market residential communities well positioned for acquisition. The lack of liquidity in the U.S. capital markets has temporarily paralyzed many investors’ ability to take advantage of these opportunities. Moreover, larger, publicly owned development companies are looking to minimize their losses, recognize a tax benefit and remove non-performing projects from their balance sheets. This provides a further source of potential inventory for the Fund. Stockton will purchase appropriately undervalued communities and, depending upon the particular investment, either (i) stabilize the investment as a rental community, then resell at a premium, or (ii) immediately resell individual units to investors or end-users.

Stockton Advantage: Through its dynamic and extensive network of property and mortgage brokers, lenders and other property industry contacts, Stockton’s Management Team often learns of unique opportunities before they reach the general market. Importantly, the Management Team’s experience in project development and sales will enable Stockton to stabilize and sell property expeditiously.

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B. “REO” Portfolio Acquisition

Financial institutions throughout the U.S. maintain portfolios of “REO” assets. REO denotes Real Estate Owned, and is the industry term for properties that a lender has acquired from its borrowers as a result of foreclosure or otherwise. Because U.S. banking regulations limit the amount of REO property banks may maintain on their books, in an effort to avoid a repeat of the Savings & Loan debacle of the early 1990’s, lenders are constantly seeking avenues to transfer large portions of their REO portfolios off of their books, at discounted pricing. The lender’s basis in REO property is its outstanding principal loan balance, a figure typically below market value. Acquiring REO portfolios in significant bulk assures Stockton of an even greater discount from market value. Stockton will evaluate each property, undertake modest improvements when necessary, and rent and/or sell inventory, as appropriate.

Stockton Advantage: Stockton is in a unique position vis-à-vis REO properties as it is often made privy to such opportunities before introduction into the wider market. As field workout professionals, Stockton is in a better position than financial workout groups to capitalize on acquired properties, thereby increasing returns to investors.


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C. Underperforming and Non-Performing Debt

There will be significant growth and profit opportunities during 2008 by acquiring debt directly from lenders. Institutional and private lenders throughout the U.S. are currently holding trillions of dollars of debt. Because compliance with U.S. regulatory requirements creates additional expense and onerous reserve obligations on the part of these lenders, they need to foreclose non-performing loans or sell the paper.

Lenders’ portfolios of non-performing debt will increase through calendar year 2008 as, for example, millions of adjustable rate mortgages are slated for rate adjustment or borrowers walk away from devalued property. These and other events create tremendous opportunity. Stockton’s strategy is to buy large blocks of the underlying, sub-performing and non-performing debt at a significant discount, undertake the process of loan workout and other procedures adding value to the debt and create REO portfolio for resale.

Stockton Advantage: Maximizing profit in the debt market will be achieved by Stockton’s unique field work-out approach. While there are modest profit opportunities in the area of “wholesaling” or flipping well-purchased debt to third parties, Stockton’s objectives regarding debt include:

(1) Work out and restructure with borrowers, upgrading quality of debt; (2) Foreclose and sell select property; and (3) Resell select debt.

Stockton’s approach will result in the highest return on acquired debt. The Fund’s staff of highly trained mortgage professionals, former Resolution Trust Corporation (RTC) employees and closing agents are prepared to analyze and work the debt.


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Management Team Experience

The Stockton Management Team has built an outstanding investment track record that includes a multitude of residential, commercial and mixed-use property projects throughout the U.S.

Total gross sellout value of the Management Team’s combined projects exceeds $4 billion. They have owned and developed over 13,000 residential units, and a significant amount of commercial office and retail space, hotel and resort properties and skilled nursing facilities.

Building upon approximately 100 years of combined experience in the property and finance markets, the Stockton Management Team is uniquely qualified to identify hidden assets and capitalize on the current opportunities presented by the U.S. property and mortgage markets.

Experience includes property management, development, entitlement, construction and sales activity, not mere passive, sideline investment. Blending this breadth of knowledge and expertise in the property industry with a well developed understanding of the overall capital markets in conjunction with several legal backgrounds, Stockton is able to identify and pursue the most advantageous opportunities and capitalization structure for each individual investment.

The Stockton Management Team has earned a stellar reputation in the residential and commercial property industries for their ability to execute successful investment and development strategies at the most opportune phases in the market cycle. As these cycles and trends now appear to be maturing to the next phase, Stockton is focused on identifying those hidden opportunities that present themselves during a market downturn and capitalizing on the essential characteristics of these maturing cycles.


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Management Team

Elie Berdugo is a veteran real estate developer with an expertise that spans three decades in the property and home building industries. His innovative approach and ability to quickly analyze markets and specific property ventures have been directly responsible for the accelerated success of E.B. Developers, Inc., one of Florida's most respected developer/builders. His legacy of quality development has set precedent in construction of single-family homes, apartment communities, new condominium and townhome communities and condominium conversions.

Mr. Berdugo is Chairman and C.E.O. of Ofek International Real Estate, Ltd., a publicly owned real estate company traded on the Tel Aviv Stock Exchange.

In addition to the apartment, condominium and luxury home communities developed by Mr. Berdugo, he is now developing several mixed-use, new urban communities and hotel projects in Florida and New York. Mr. Berdugo is in the process of developing a new hotel adjacent to the Ground Zero site in lower Manhattan. Under Mr. Berdugo’s leadership EB Developers currently has well in of excess of $1.5 billion of sellout value under development.

Mr. Berdugo is a principal of First Fidelity Mortgage Trust, LLC, a Florida licensed mortgage brokerage firm, representing such financial institutions as Wachovia, Washington Mutual, Countrywide, HSBC and National City Bank.

Elie Berdugo is a Florida State certified general contractor. This experience and qualification has enabled Mr. Berdugo to self-perform on almost all of his company’s projects. He is a member of numerous trade associations including National Association of Home Builders.


Abraham Galbut has over thirty years experience developing and investing in residential and commercial property. Mr. Galbut is currently a principal of Hudson Capital, LLC and formerly served as the senior partner of a Miami, Florida law firm concentrating in property acquisition, financing and development matters. In addition to development, construction and conversion of property projects to condominium ownership, Mr. Galbut is a principal in a number of multi-family residential housing projects, hotels, and skilled nursing facilities in Florida, Washington, D.C. and Baltimore, Maryland.

Mr. Galbut brings over three decades of continually advancing expertise in the acquisition, financing, construction, rehabilitation and conversion of properties throughout the United States, including condominiums, condominium-hotels, office buildings, shopping centers, assisted living facilities and skilled nursing facilities. He has also served as counsel and consultant to Crescent Heights of America, one of the foremost condominium developers in the U.S.

Mr. Galbut has been an active member of many civic and charitable organizations and has led or served on many boards of directors of local, national and international organizations and charities, including being a member of the City of Miami Beach Planning Board, member of both the City of Miami Beach and the City of Miami Chamber of Commerce, Miami-Dade County Bar Probate and Guardianship Committee, and a member of the Florida Bar. Mr. Galbut received his Bachelor of Arts degree from New York University and his Juris Doctor degree from University of Miami School of Law. He is an active member of the Florida Bar and a member of the American Bar Association.

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Management Team


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Management Team

Andrew Greenbaum is the consummate, successful entrepreneur, equally adept at locating lucrative opportunities at the right time, attracting capital, purchasing and investing boldly but prudently, nurturing ventures, and selling completed projects profitably.

Mr. Greenbaum is a founder and principal of Hudson Capital, LLC, a fully integrated property company. Hudson has developed over $1 billion of residential and commercial property, and has amassed a portfolio of over 3,000 residential units and over 250,000 square feet of commercial space. Through Hudson, Mr. Greenbaum served as a Principal and Director of Washington Mortgage, a mortgage banking joint venture with Wells Fargo.

Mr. Greenbaum earned his law degree from Brooklyn Law School. He also holds NASD Series 7, 63 and 55 Licenses that he used to trade various financial products, commodities, and derivatives, utilizing customized strategies. In 2000, Greenbaum founded Spectrum Capital Partners LLC, a trading firm specializing in proprietary trading of stocks, futures and other financial products. He expanded the business to 150 employees and, in 2003, sold the company to his former employer.

In 2000, Andrew Greenbaum co-founded Foundation Source (FS), a financial services software firm that establishes and administers private charitable foundations. Clients include TD Waterhouse, Bear Stearns, Banc One and Wilmington Trust. FS develops software to facilitate the formation, administration and management of charitable foundations. Beginning with $20 million in venture capital, FS currently represents over $2.5 billion of assets under administration. Mr. Greenbaum is no longer involved in daily operations.

Mr. Greenbaum received his Bachelor of Arts from Yeshiva University and his Juris Doctor from Brooklyn Law School.


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Management Team

Neil Greenbaum’s expertise is his meticulousness in ensuring that every venture is properly analyzed, methodically monitored, prudently supported, legally documented, and efficiently developed.

Upon graduating law school, the native New Yorker joined Bankers Trust Company in Manhattan, where he worked as a private banker, responsible for the administration of over 100 private trusts, representing in excess of $1 billion in assets. At two New York City law firms, where he worked for the next decade, Mr. Greenbaum represented numerous banks and institutional investors in the purchase and sale of billions of dollars of commercial property. He also worked with property owners in leasing millions of square feet of commercial office and retail space.

In 2000, Neil Greenbaum co-founded Foundation Source (FS), a financial services software firm that establishes and administers private charitable foundations. Clients include TD Waterhouse, Bear Stearns, Banc One and Wilmington Trust. FS develops software to facilitate the formation, administration and management of charitable foundations. Beginning with $20 million in venture capital, FS currently represents over $2.5 billion of assets under administration. Greenbaum is no longer involved in daily operations.

Mr. Greenbaum is a founder and principal of Hudson Capital, LLC, a fully integrated property company. Hudson has developed over $1 billion of residential and commercial property. Between 2003 and 2007, Hudson has developed over 3,000 residential units and over 250,000 square feet of commercial space. Through Hudson, Mr. Greenbaum was a Principal and Director of Washington Mortgage, a mortgage banking joint venture with Wells Fargo.

Mr. Greenbaum graduated magma cum laude from Queens College and obtained a Juris Doctor from Fordham University School of Law.


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Management Team

Daniel A. Kaskel is Vice President and General Counsel of E.B. Developers, Inc. of Boca Raton, Florida. Mr. Kaskel is a Board Certified property lawyer by the Florida Bar. His legal practice has included property acquisition and development, condominium and homeowner association formation and operation, property and commercial lending, retail and office leasing and title insurance matters. He has represented both borrowers and lenders in permanent, construction, mezzanine and other property secured lending transactions. He has represented developers and investors on all phases of property acquisition, development, financing, leasing and sale throughout the U.S. He has also represented developers of residential, commercial and mixed-use developments in the planning, formation, document drafting and operation of these projects, and has represented cooperative associations, investors and developers in connection with condominium conversions.

Mr. Kaskel serves as U.S. legal counsel to Ofek International Real Estate, Ltd., a publicly owned real estate company traded on the Tel Aviv Stock Exchange (OFRS).

Mr. Kaskel is a principal of First Fidelity Mortgage Trust, LLC, a Florida licensed mortgage brokerage firm, representing such financial institutions as Wachovia, Washington Mutual, Countrywide, HSBC and National City Bank. He is also principal of Fidelity Title of Florida, LLC, a Florida licensed title and escrow company.

Mr. Kaskel is a member of the Florida Bar’s Property, Probate and Trust Law Section. He has lectured in the area of property contract drafting and negotiation, and has written on commercial leasing, condominium association, insurance and casualty issues. He also served as in-house counsel to one of the United States’ largest privately owned property development and management companies. Mr. Kaskel worked as a tax associate for PriceWaterhouseCoopers in New Jersey, associate with the law firm of Drinker, Biddle & Reath, LLP in New Jersey, as well as Becker & Poliakoff, P.A. in Fort Lauderdale, Florida.

Mr. Kaskel received his Bachelor of Arts in Economics from the State University of New York at Binghamton and his Juris Doctor from Western New England College School of Law.


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Management Team’s Historical Project Summary

Name Location # of Units Commercial Size Type of Project 4770 Biscayne Miami, FL 147,000 Office Antigua St. Augustine, FL 450 100,000 Mixed Use Aventine Miramar, FL 848 Condominiums Belmont Boynton Beach Palm Bch County 192 Apartments Belmont St. Lucie West St. Lucie County 444 Apartments Belmont N. Lauderdale Broward County 302 Apartments CityMark Orlando, FL 3,025 Mixed Use Dolphin Reef Jacksonville, FL 1,000 100,000 Mixed Use Eden Springs Orlando, FL 1,332 Hotel Forte International Miami, FL 750 Hotel/Office Gables Marquis City of Miami 177 5,000 Mixed Use Gardens of Bridgehampton Jacksonville, FL 352 Condominium Greenwich Street NY, NY 250 Hotel Hawthorn Estates Chicago, IL 398 Apartments Hawthorn Estates Chicago, IL 217 Condominiums Heritage Estates Orlando, FL 272 Condominiums Itopia St. Petersburg, FL 354 Condominiums


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Management Team’s Historical Project Summary (continued)

Name Location # of Units Commercial Size Type of Project

Key Royal Naples, FL 270 Condominiums Landmark at Doral City of Doral, FL 1,109 500,000 Mixed Use Mangolia Hotel Orlando, FL 200 Hotel Milano W. Palm Beach, FL 200 Condominiums Mondrian South Beach South Beach, FL 335 Condominium/Hotel Promenade Shores at Doral City of Doral, FL 240 Condominiums Promenade Lakes at Doral City of Doral, FL 531 Condominiums Sanctuary at Bay Hill Orlando, FL 304 Condominiums Riviera Palms Coconut Creek, FL 248 Condominiums Village Oaks Tampa, FL 240 Condominiums Promenade at Tampa Palms Tampa, FL 240 Condominiums Osprey Oaks Boynton Beach, FL 221 Single Family The Groves @ Palm Beach Palm Beach County, FL 2,576 Mixed Use Central Park Palm Beach Gardens, FL 180 100,000 Mixed Use


Company: Stockton Property Opportunities Fund I Structure: AIM listed Investment Manager: Stockton Management, LLC Tax: To be determined Target Fund: $300 Million Target Investments: Value opportunities in U.S. residential

and commercial properties and debt Management Fee: To be determined Performance Fee: To be determined Deployment Objective: Fully invested within 6-12 months Target Capital Return: To be determined

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Stockton Fund Summary


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Key Industry Relationships

Merrill Lynch Capital Barclays Capital EuroHypo Lehman Brothers Natixis LaSalle Bank Colonnade Properties Fortress Investment Group Principal Commercial Acceptance SunTrust Bank Bank of America Fannie Mae GMAC

Northern Trust Ohio Savings Bank Wachovia AmTrust Bank Ocean Bank Compass Bank Bank Leum. Colonial Bank Regions Bank Mutual of New York Key Bank iStar Financial, Inc. Freddie Mac Countrywide Home Mortgage

The principals of Stockton have created and maintain a broad range of long term relationships with leaders in the U.S. property and mortgage industries. Capital relationships include the following financial institutions:


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Key Industry Relationships

CB Richard EllisCushman & WakefieldMarcus & MillichapHolliday Fenoglio FowlerJones Lang LaSalleMorgan’s Hotel GroupGL HomesTOUSA HomesCentury HomesLennar

The Stockton Management Team maintains relations with many property developers and brokerages firms throughout Florida and the U.S., as well as smaller, regional firms, including:

Toll BrothersCrescent HeightsColdwell BankerM/I HomesPulte HomesCrescent ResourcesBlackrockColliers InternationalRe/MaxKeller Williams Realty


Real Estate Market Cycle

Property investment decisions are made based upon the particular phase of the real estate cycle. Issues such as geographic location, capital markets and overall economic condition factor into the mechanics of the real estate cycle. According to industry experts, the real estate cycle is comprised of four components: Expansion; Equilibrium; Decline and Absorption.

Decline (also known as Recession) results due to oversupply, negative absorption, a reduction in market rents and a cessation of job growth. Businesses begin to relocate as a cost savings measure and housing demand slumps. Prices stagnate or decline as rents and occupancy descend. Although this cycle component suggests merely a deceleration of the growth rate, those markets which had experienced an overly rapid increase will experience a pricing correction.

Absorption (also known as Recovery) results when lower prices and occupancy fall below the national averages and/or the area becomes attractive again to businesses looking to relocate. As business relocates to the area, local government facilitates these business relocations in the form of incentives and the population begins to grow again. Signs of recovery exist, including increasing sales and/or leasing volume.

Expansion creates job growth, population growth and a high demand on the infrastructure of an area. Building costs and capital markets readily accommodate new construction and/or renovation, thereby resulting in increased building, a proliferation of new businesses, infrastructure expansion and rising prices.

Equilibrium (also known as Hyper-Supply) occurs when expansion decelerates. Prices have achieved their threshold, or have pushed beyond their limit, thereby resulting in high prices. There is a reduction in new businesses and a slowing of job growth. As supply has generally met demand, property that is marginal in either quality or location begins to experience softening in occupancy or rent levels.

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Real Estate Market Cycle – Current Phase

The National Association of Realtors recently stated that the Florida property market is nearing its bottom and they expect 2008 to see an increase in pricing and sales. With developers cutting back new home inventory by 70 percent, a weak dollar bringing in new foreign buyers, rising rents, and a backlog of potential buyers, the market is expected to recover in 2008.

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According to the National Real Estate Investing Association, the consensus among U.S. experts is that the U.S. property market is in the final stages of Decline/Recession and will, within the next 12 months, enter Absorption/Recovery.


Management Team’s Prior/Current Projects

Landmark at DoralCity of Doral, Florida

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Wachovia Tower4770 Biscayne Boulevard

Miami, Florida

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Gables MarquisMiami, Florida

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Stockton Contact Information

Stockton Property Opportunities Fund I7284 West Palmetto Park Road, Suite 106

Boca Raton, Florida 33433

Contacts:Andrew Greenbaum – (561) 922-5266

[email protected]

Neil Greenbaum – (561) [email protected]

Daniel Kaskel – (561) [email protected]

stockton property opportunities fund i identifying and capitalizing on the historic and...

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