Fellus Equity Share, LLC Investor Portal

Fellus Equity Share, LLC

Multi Family Family Real Estate Investments in San Diego, California, Los Angeles, California, San Francisco, California, Colorado, and Arizona

▼  scroll down to learn more  ▼

Fellus Equity Share, LLC
506(c) Offering Platform

INTRODUCTION TO OUR COMPANY

Fellus Equity Share, LLC (The “Company” or the “Fund”) was formed for acquiring and managing real estate assets, primarily but not limited to multi-family and apartment class real estate assets. The Company will seek to acquire and manage high quality real estate assets with the intention of providing participating investors with a real estate focused investment opportunity that combines the potential for income, principal investment growth, and elements of capital preservation. The Fund is managed by Fellus Group Realty Advisers LLC (“FGRA”, “Manager” or the “Fund Manager”). FGRA is managed by a highly experienced real estate professional with over 40 years of experience in the California real estate market.

The Fund will pursue investments by utilizing the expertise of the Fund Manager in acquiring, developing and managing compelling multi-family and apartment assets that meet the Fund’s asset acquisition criteria. The Fund also will target certain value add offmarket, bank owned non-performing, and distressed multi-family assets to potentially achieve attractive risk-adjusted returns. The Fund will target investment opportunities in the primary California based target markets of San Diego, Los Angeles, San Francisco, and may also deploy investment capital into certain Arizona and Colorado markets that the Fund Manager deems compelling (the “Target Markets”).

The Fund intends to operate as a hybrid real estate investment fund with a certain portion of allocated capital being utilized for shorter term opportunities and the balance for acquisitions that will mature over a five-year period. The collective experience of the Fund Management team lends itself to evaluating these opportunities and executing on a short and long term investment plan that involves assets purchased in trending urban markets with strong core fundamentals. Furthermore, the primary principal of the Fund Manager entity has established core long term relationships with real estate sector professionals in the target markets that may provide the Fund with the capability to source and acquire off-market that would be difficult for competing real estate investment funds and real estate investors to source for acquisition. The distinct potential advantage of aggregated investment capital deployed through the Fund, combined with an asset sourcing methodology that is relationship based, provides the Fund the capability to acquire properties with high return potential.

The city [Phoenix] also recognizes the need for affordable housing, and they allow people to build and rent out ADUs as affordable housing, especially if the property is within walking distance of public transit. Buy a house, rehab it and build a granny flat, and you have two rental properties for not much more than the price of one.

Marco Santarelli, "Phoenix Real Estate Market Predictions 2019", http://www.noradarealestate.com

Fellus Equity Share, LLC
506(c) Offering Platform

summary of operations

The Fund intends to operate as a hybrid real estate investment fund with a certain portion of allocated capital being utilized for shorter term opportunities and the balance for acquisitions that will mature over a five-year period. The Fund’s execution strategy for those opportunities is detailed below:

Short Term Investments (24-36 months):

The Fund Manager anticipates that thirty percent (30%) of capital from the Offering will be allocated towards opportunities that involve acquisition, re-position and/or rehabilitation, and asset disposition in 24-36 months or less. Many of these opportunities will be sourced from distressed sellers or “special circumstance” type acquisitions wherein a significant amount of equity and value is present from the time of acquisition and additional equity and profit is realized through the re-position, rebranding, and rehabilitation process. Properties in this category are anticipated to require more re-positioning and rehabilitation work and would be reflected in the distressed level acquisition costs. The construction and rehabilitation experience of the Fund Manager is a critical part of this process as that expertise will allow the Fund to fully assess expected costs, timeframes, and other important metrics to maximize net profit and minimize risks related to unexpected rehabilitation costs and re-position expenses.

Long Term Investments (3-5 years)

The Fund Manager intends to allocate approximately seventy percent (70%) of invested capital towards acquisitions that will require a longer duration of time to mature prior to disposition. The Fund Manager expects that these assets will still be sourced at attractive acquisition rates, however the properties may not require as much rehabilitation or may be located in areas that demand a higher acquisition premium and thus the Fund Manager expects less initial equity immediately postacquisition. The Fund Manager still intends to deploy elements of rehabilitation and re-positioning to maximize value and allow for maximum rental or sale rates per square foot. Assets in this category will typically be held in the Fund’s portfolio for five, and or seven years prior to disposition.

The metro markets of Los Angeles, Orange County, San Diego, San Jose, San Francisco and Sacramento are bursting at the seams with an overall price growth rate of 10% annually since 2012.

— https://managecasa.com, "Califonia Housing Maket Report and Predictions 2018 2019"

Fellus Equity Share, LLC
506(c) Offering Platform

Company Management Team

The Company is managed by a seasoned business professional with extensive business and real estate sector experience. The Fund Manager is dedicated to the success of the Company and to maximizing the investment performance of the real estate assets to be acquired and managed.

Shlomo Fellus

Shlomo Fellus

CEO of the Fellus Group

Shlomo Fellus has over 30 years of experience in the real estate industry. Mr. Fellus was formerly the California Regional Manager for Crescent Heights Inc. (“CHI”) one of the nations most respected real estate developers. On behalf of CHI, Mr. Fellus was involved in managing asset acquisitions, real estate development, construction, and renovations. He also engaged in overall management of over $600,000,000 of real estate located in San Diego, Los Angeles, San Francisco, Oakland, and Oklahoma. His focus was mainly existing multifamily buildings suitable for condo conversions as well as ground-up construction of luxury high rise buildings in urban locations.

Mr. Fellus was personally involved in sourcing a $250,000,000 Commercial Building referred to as “The Vintners” located in London UK, for CHI in 2015.

When it comes to identifying opportunities, Mr. Fellus will be directly engaged in sourcing and executing long-term and short-term investments for the Fund. Mr. Fellus has experience in many aspects of real estate investment projects, from new acquisitions execution, asset due diligence, financing, operations, management, sales and marketing. As a manager he emphasizes a thorough and extensive due diligence process for assets and is conservative on project budgeting and financial projections.

Mr. Fellus is familiar with the best practices and strategies of real estate investing and conducts his business with the philosophy that moral and professional integrity are paramount. Mr. Fellus currently resides with his wife in San Diego, California.

Board of Advisors

The Company has established a Board of Advisors, which includes highly qualified business and industry professionals. The Board of Advisors will assist the Management team in making appropriate decisions and taking effective action; however, the Board of Advisors will not be responsible for Management decisions and has no legal or fiduciary responsibility to the Company. There are currently three members on the Board:

Asher Abehsera

Asher Abehsera

Board Member Advisor

CEO & Founder of Livwrk . Asher sources and executes new acquisitions, guides ongoing development activities and constructs the company’s creative & strategic vision. Prior to founding LIVWRK, Asher was the General Manager of Two Trees Management Company where for eight years he oversaw residential asset management, acquisitions, sales, and marketing for more than $2 billion in class-A, mixed-use real estate. Asher’s tenure with Two Trees Management was marked by high-level wins including the 1.1 million square foot mixed-use project Mercedes House and the acquisition of the Domino Sugar Refinery, a historic game-changer that will emerge a 3.2 million square foot, mixed-use waterfront development.

Lee Rubinoff

Lee Rubinoff

Financial Analysis

Lee is a founder and partner at Urban Stearns, a real estate development firm focused on the ground up construction of multifamily and mixed-use buildings in the Los Angeles metro. Prior to starting Urban Stearns in early 2018, Lee was responsible for asset management and acquisition activities at James Investment Partners. Lee managed the firm’s quarter billion-dollar portfolio and assisted in the acquisition of over $100 million of value-add real estate.

Lee previously worked as a Senior Consultant for Deloitte’s advisory practice. While at Deloitte he supported a large real estate developer, AECOM, manage capital expenditures on a $6 billion building program which constructed more than sixty new structures and, in the process, modernized Los Angeles area colleges. He additionally consulted for businesses in the financial services, entertainment and technology sectors. Lee received a BA in Business Economics with a minor in Accounting, cum laude and with College Honors, from the University of California, Los Angeles.

Daniel Fellus

Daniel Fellus

Properties Manager

Daniel Fellus has 18 years of experience in real estate on both the West and East coasts of the United States. Daniel Fellus got his start in real estate working with Crescent Heights, Inc., managing the operations and finance departments for assets worth over $500 Million Dollars. These included assets in San Diego (City Front Terrace), Los Angeles (The Grand and The Remington) and San Francisco (The Metropolitan).

After finishing a Condo Conversion in Los Angeles as a Principal, Daniel Fellus relocated to NYC to manage the Sales Team for 70 Washington Street in Brooklyn, NY (Two Trees Management Co.). Daniel Fellus also successfully helped lease and manage “Mercedes House” a building located in Manhattan, NY with 30,000 sq. feet of amenity space and 702 luxurious apartments in total. After that Daniel Fellus worked for Crescent Heights, Inc. to manage and operate Hanley New York, a $300 million 5-star luxury apartment building located in the Upper East Side, NY and also the property located at 360 Broadway (a beautiful $60 million loft projects located in the heart of Tribeca, NY).

Longer term, Denver’s strong demographic trends bode well for absorption of any oversupply and the continued growth of the multifamily market. However, only moderate amounts of new supply will be needed given the recent aggressive expansion in new apartments.

- Fannie Mae

Fellus Equity Share, LLC
506(c) Offering Platform

terms of the offering

$25,000,000

Minimum Offering: $2,500,000

Minimum Subscription: $25,000 (25 Units)

Fellus Equity Share, LLC (the “Company” or “Fellus Investment Group”), a Texas Company, is offering a minimum of 2,500 and a maximum of 25,000 Class A Membership Units for $1,000 per unit.

From time to time, but not less than quarterly, the Managers shall determine in its reasonable judgment to what extent (if any) the Company’s cash on hand exceeds its current and anticipated needs, including, without limitation, for operating expenses, debt service, acquisitions, and a reasonable contingency reserve. Except as otherwise provided in Articles VI and XII of the Operating Agreement, if such an excess exists, the Managers may in their sole discretion cause the Company to distribute to the Members as follows:

  • (i) a non-compounding Preferred Return of eight percent (8%) per annum to the Class A Members on their invested capital and;
  • (ii) next, seventy percent (70%) to the Class A Members and thirty (30%) percent to the Class B Members according to their respective aggregate Sharing Ratios. See “Exhibit B - Operating Agreement - Sections 5.2 and 5.3”.

In summary, Net distributable proceeds from the winding up of Fund activities and the subsequent liquidation of real estate assets shall be distributed on the following schedule and terms;

  • First, the Company shall pay all closing costs, fees, and expenses incurred in connection with the Threshold Event from proceeds realized by such event;
  • Second, a non-compounding preferred return of eight percent (8%) per annum to the Class A Members on their invested or adjusted capital;
  • Third, with respect to any further excesses, payment of an amount equal to the “Unrecovered Capital Contribution” of each Class A Member; provided, that if not enough cash is available to return the Unrecovered Capital Contribution of each Class A Member, then such excess shall be distributed in proportion to each Class A Member’s Sharing Ratio Class A. “Unrecovered Capital Contribution” shall be calculated as a Member’s Capital Contribution less any prior distributions of capital; and then
  • Fourth, with respect to any further excesses, such excesses shall be distributed seventy percent (70%) to Class A Members in proportion to the respective Sharing Ratio Class A, and thirty percent (30%) to Class B Members in proportion to the respective Sharing Ratio.

CONTACT US

Please complete the contact form and we will get back to you about any questions you have about our offering.

Fellus Equity Share, LLC - 500 W. Harbor Drive #1404 - San Diego 92101, US — invest@thefellusgroup.com — (858) 220-5669

Fellus Equity Share, LLC
506(c) Offering Platform

so much more than what you see

prospect dashboard

The Fellus Equity Share, LLC 506(c) Investor Portal provides the opportunity to learn about our investment opportunity. Once registered, you will have:

  • Access to the Private Placement Memorandum, which outlines our company and gives greater detail about our offering;
  • Access to our SEC filing;
  • View real time offering metrics of how far along we are in the offering process;
  • View a timeline of your progress in the investment process;
  • View company contact information and send email directly to the administrator;
  • Easily upgrade your account with the click of a button.

Once your account is upgraded you will have additional access including:

  • The ability to complete the subscription documents via download or online;
  • Upload of subscription and accredidation documents as applicable;
  • Specific process information for investing and instructions on transfer of investment funds;
  • Access to company shared quarterly / annual reports, Financial documents and Supporting Documents;
  • Access to the Asset Portfolio as applicable;
  • Access to News articles written by the company;
  • Access to documents associated with your account.

READY TO LEARN MORE ABOUT OUR INVESTMENT OPPORTUNITY?

REQUEST ACCESS NOW!