5 Stone Green Capital – Bainbridge Real Estate Fund

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.