Project Details: As a team you are responsible for creating an investment portfolio with $$5,000,000\mathrm{.}00($Five Million USD$)$ committed investment capital $($i$.$e$.$ equity$).$ You are to choose one of the main investment risk preferences $($aggressive$),$ and are to choose at least two $(2)$ properties that can fit into your portfolio$$s risk preference.

In a $1-$page memo, you must outline the following:

The goal of your investment portfolio: The strategy of the portfolio, including ideas such as the $\%$ annual operating return $($Cap Rate on Yr$-1$ Operations$)$ during the $1$st year of operating the property, timeline of the investment hold period $($also called the investment horizon$),$ strategies $($whichever is appliable$)$ to impact long term value of the property through things like

A$)$ repositioning the property through capital improvements.

B$)$ raising under$-$market rents to market level.

C$)$ incorporating new management or operating practices to increase occupancy or lower costs.

D$)$ Or any other ideas or opportunities you find and believe can increase the value of the investment.

Please include your excel file as backup exhibit in the submission. Your slides are not necessary to be submitted online.

A summary of the financial structure and money invested into the properties: The financial structure of the portfolio $($$$5$ Million max equity$),$ including the amount invested in each property, and amount to be allocated to improvements or for future operating cash flows. This can be provided in a table format.

A short summary of the $(2)$ two or more assets $($properties$)$ you have picked, and the reason for having picked these investments.

The return measures: The annual NOI and net cash flows you project to generate on the equity invested in the project.

Generally, the below risk preferences are associated with different sets of investment attributes such as:

Aggressive investment risk $/$ return: Possibly unpredictable cash flows associated with the asset, given its market location and desirability of the asset. The property may have some vacancy in general, or a group of local mom$-$and$-$pop type tenant$($s$)$ in the town$/$market with varying degrees of long$-$term prospects for stability. The asset may be located in a market that has historically has not been resistant to economic cycles in the past, and may not offer the highest degree of demand volume $($given the asset $/$ use type$)$ when compared to other markets. The annual return on investment on such portfolio may be from $7\%$ and up$.$