5 Stone Green Capital – Bainbridge Real Estate Fund

United States of America

Last updated 12 May 2020, by Impactyield.

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Stone Green Capital [“5SGC”] is led by Managing Principals Lewis Jones and Douglas Lawrence who have worked in tandem for 10 years on two successful green building / institutional real estate funds totaling approximately $500 million in equity. Together they have more than 45 years experience in real estate equity investment, asset management, lending, asset re-positioning/redevelopment, and new development projects across multiple property types.

5SGC believes high-performance [“green”] real estate assets have financial traits that can provide a superior risk-adjusted investment profile. 5SGC concentrates on property-level operating performance through the use of energy efficient technologies and operating procedures to achieve cash flow improvements and risk reduction attributes at the portfolio level. The Fund’s works to create higher investor returns by emphasizing superior operations, energy/water efficiency, and sustainable design.

The Fund seeks to invest in 1) multifamily rental, 2) non-discretionary retail, 3) green light industrial and other real estate-related assets in the U.S through a combination of equity/debt related investments in asset retrofit/redevelopment opportunities.

5SGC believes the Fund’s green value-add strategy can 1) generate 15-17% net returns for investors, 2) improve the portfolio's overall environmental impact, and 3) maintain a risk profile less subject to technological / functional / physical obsolescence.



Financial description

5SCG believes a 100% green real estate portfolio will result in a 4%-8% greater annual net operating income advantage when compared to a non-green market portfolio. 5SCG's extensive operating and capital markets experience, coupled with our established green building expertise, will give the Fund a significant advantage when acquiring a green real estate investment portfolio that can experience (1) higher cash flows, (2) lower income volatility, (3) higher income returns, (4) greater tenant demand, (5) lower future capital expenditures, and (6) better control over fees [among other advantages] over a non-green portfolio.
5SGC expects that high-performance green real estate assets can have financial traits that are likely to provide a superior risk-adjusted portfolio investment profile. 5SGC also believes capital market trends will continue to evolve wherein the cost of debt capital for green buildings may be lower, or there may be ancillary profit opportunities such as the capture and sale of carbon credits, or the aggregation and pooling of energy savings into new revenue streams.
5SGC’s investment strategy anticipates the emergence of a two-tier market in which green buildings are likely to outperform traditional buildings; non-compliant buildings run a significant risk of accelerated physical, functional and economic obsolescence. Thus, 5SGC believes the market will reward Fund investors with higher asset and/or portfolio values upon asset or portfolio sale.

10 years

of track record

2013

the year funded

160,000,000 USD

AUM

SDG goals

SDG targets

Encourage companies to adopt sustainable practices and sustainability reporting

Expand and upgrade energy services for developing countries

Full employment and decent work with equal pay

Key performance indicators

Fund overview

Asset manager: 5 Stone Green Capital – Bainbridge

Product track record: Fund has 10 years of track record

Target IRR: 15%

Committed Capital: 7,500,000 USD (US Dollar)

Target return category: Risk-adjusted market-rate of return

Fund domicile:

Product status:

Style/Stage: ,

Inception year: 2013

Vintage year: 2013

Target region: , , ,

Target close date: 01/08/2015

Product term: 10 year term

Assets under management: 160,000,000 USD (US Dollar)

Investment size: Min: 2,500,000; Max: 100,000,000; Avg: 16,000,000

Co-investment policy: ,

Currency of investments:

Currency for fund / product figures:

Fund investments to date: 0

Fund investments to date exited or repaid: 0

Management fee: 1.75%

Carried interest: 20%

Hurdle rate: 8%%

GIIN Investors' Council Investment: No

Limited Partners / Investors: n.a.

Limited Partner / Investor Type: Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors

Contact

E-mail: info@5sgc.com

Website: http://www.5sgc.com

Phone number: (917) 523-2004

If you wish to have your details removed from this database please email gdpr@impactyield.com


Douglas Lawrence

Managing Principal and Asset Manager

Impact Performance

n.a.

Impact thesis

5SGC has incorporated impact as a central element in of its investment and operational model in several ways:
1. Sustainability: We believe that energy efficiency, water efficiency, resource efficiency, and renewable energy production are key factors in achieving the long-term profitability and risk-mitigation of a real estate portfolio’s cash flows. Further, we believe (and the data supports) that a focus on utility efficiency provides a direct and measurable bottom-line return, as well as a clearly identifiable positive social impact. We have targeted, at the portfolio level achieving at least an Energy Star score of 75 and LEED Silver (or equivalent) certification.
2. Focus on Metro Underserved Markets and Food Deserts: Our Managing Principals have helped pioneer the use of Income Density Modeling to prove the viability of investments in typically underserved metro urban markets and food deserts. We believe that this type of analysis, refined over two decades, provides key insights into community-benefiting investments that create jobs, improve quality of life, and have demonstrable positive impacts on a host of community-level health and achievement measures.

Impact Management

n.a.

Financial benchmark

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