In this webinar, Ryan Tobias highlights three different OZ projects with 2023 start dates.

Webinar Highlights

• The history of Jackson Dearborn, and their prior ten OZ projects;
• Details on the current assets in the portfolio and pipeline;
• Review of the Jackson Dearborn management team;
• Summary of a $109 million mixed use project in Chandler, AZ;
• Summary of a $63 million mixed use project in Denver, CO;
• Summary of a $44 million mixed use project in Scottsdale, AZ;
• Live Q&A with webinar attendees.

Industry Spotlight: Jackson Dearborn Partners

Jackson Dearborn Partners is a real estate investment and development company with a particular focus on multi-family and student housing. One of the early movers in the Opportunity Zone space, JDP has four OZ projects currently underway to add to its existing portfolio of assets.

Learn More About Jackson Dearborn Partners

• Visit JacksonDearborn.com

Webinar Transcript

Jimmy: Next up is Jackson Dearborn Partners. And so I’m gonna bring Ryan Tobias up on stage. Ryan, I can see you. Whenever you’re ready, go ahead and dive in. It’s great to see you here today too, by the way. How are you doing?

Ryan: I am great. Thanks for having me again, Jimmy. I was enjoying that last pitch actually. It’s good to see a good group in Austin doing a good project as well, so. But since we’ve only got 10 minutes here and I actually have 3 projects to pitch, I’d love to just get going.

Jimmy: Let’s go. Giddy up.

Ryan: Good deal. So again, I’m Ryan Tobias, one of the managing partners here at Jackson Dearborn Partners. It’s actually my second time doing the OZ Pitch Day. We’ve been one of the first movers in this space and have been really active over the last, now four years or so in predominantly multi-family and student housing Opportunity Zone projects. I give you a little bit of background about us, and then I’ve got three projects that are all 2023 starts for us here. I believe this is our 11th, 12th, and 13th Opportunity Zone projects, so I’m excited to share those with you. We cover them pretty quickly today, but after this pitch, we get you a full deck, full model, any information you need on each one of these because we’re gonna cover it relatively quickly.

Just a little bit about us, we’ve been around since 2014. We’re based in Chicago. I actually live and work out of Michigan. And then we have construction development offices in Arizona and Colorado, which are where the projects are today. That’s kind of where we started here in the Midwest in Illinois predominantly and have been growing outward into more demographically favorable markets, predominantly Colorado and Arizona for the last four years now. And the Opportunity Zone has been a big catalyst of that.

We have an existing portfolio of just over 1600 multifamily units, a little over 4,000 student housing beds, value that’s around $634 million or so. Maybe a little less with interest rates where they’re at today. We’ve got a number of projects under construction, just over $300 million worth, the bulk of which are Opportunity Zone. And I’m gonna go through some of those today. And we’ve got a pipeline that’s approaching $1 billion here for 2023 and 2024. Again, the bulk of which is Opportunity Zone and several, which we’re gonna highlight here.

Just a short look at our kinda key principles and staff here. You can see my beautiful face in the top left there. Chris Saunders is my partner and the other managing partner here at JDP. He also owns Sub4 Development which is our kind of in-house affiliated construction company. So, we build and do construction management of every project that we do. Josh Stroot in the middle of the screen runs that company. So, they only build for us. And it’s a really fully integrated kind of development and construction team here that you see on the screen.

Just a little bit of a map view of kind of where we’re based, you can see kind of that basis there in the Midwest, where we’ve historically been located and the portfolio exists today. But Colorado and Arizona are the two markets that we love for all the reasons that everybody does. Great outdoor lifestyle, great quality of life, low taxes, great population, and job growth. And that’s what we’re looking for, particularly, for OZ projects that are long-term holds. And you know, we wanna be in these areas for a long period of time. Couple of projects in the track record I have highlighted. There’s three here and three on the next slide that are all Opportunity Zone. See a couple of deals here in the Midwest. A student housing deal called Icon that we opened at the University of Illinois 2 years ago now, 276 beds, a 100% occupied. I think about 80-something percent pre-lease for next year.

NOVA is a multi-family project in Lafayette, Indiana. And then our first project in suburban Phoenix, which is 211 units down in Goodyear. That is opening up next year in 2023. On this slide, you’ll see a couple more projects too here in Colorado, one of which I actually pitched in spring of 2021 on this OZ Pitch Day. Solace at Cimarron Hills, a total of 346 units, 234 of those units are under construction right now. You can see the mass timber that we’re using for the clubhouse that’s under construction right now. That’s OZ, of course. AVIAN on the left side of the screen is a podium project that we’re building in downtown Colorado Springs, 169 units, we’ll be opening in 2024.

And then I highlighted Revolve at Ballpark Village. This isn’t one that we’re doing in partnership with Origin Investments, which I believe pitched a couple of pitches ago, maybe 30, 40 minutes ago. I think the best, you know, blind pool, larger, national Opportunity Zone fund in the business. So, if you’re looking for that type of investment, I have nothing but great things to say about Origin. If you’re looking to make direct investments in individual projects I hope that I’ve got a couple here that you can take a look at. The first project here is a project we’re calling ONE Chandler. This is in Downtown Chandler, Arizona. It is an amazing site, Downtown Chandler. If you don’t know Chandler, it’s Southeast Valley. Scottsdale’s, sort of the most well-known suburb of Phoenix. Chandler’s right behind that in terms of affluence, community, and home values.

It’s got a beautiful downtown and it’s also home to kind of this Price Road Corridor of technology and financial services companies, which is anchored by Intel, which is currently undergoing a $30 billion expansion. So, it’s just a great market, and the Downtown of Chandler is beautiful. This will be a real legacy project for Downtown Chandler and for us. As I mentioned, this is our 11th OZ project, 291 units, and ground-floor retail. A small second-floor office as well. Structured parking, really a project that we’re super excited about. You can see right here in the heart of Downtown Chandler. We call it, you know, Main and Main gets thrown around a little bit. This is literally Main and Main for Chandler, Chandler Boulevard in Arizona Avenue. It is 1 East, Chandler Boulevard is the address.

Lots of restaurants, shops, bars, right in walking distance here. It’s a great little scene. Kinda showing you this. We have the bulk of the block here. We bought the north portion from a private seller last year, at the end of last year. And the city actually approached us to buy the south portion of the block. And it is at their behest that we’ve done so and are proceeding through with our entitlement. Little more information here on Chandler. Intel’s the big story there. It says $20 billion here. That’s actually a $30 billion project, 3000 jobs just to the southwest here. Obviously, Phoenix has got tremendous job stories around semiconductors, chips, EVs, etc. A couple of images of this building that we’re unbelievably excited about. We think it’s gonna be the best project we’ve ever done. It happens to be OZ.

Quick on the timeline here, we are in the submission stage right now for rezoning and development plan. This was at the behest of the city. We’ve had tremendous support. So, we look forward to getting those approvals and this is something that we hope to break ground on in the summer of next year opening in 2025. Again, I’m gonna cover this all quickly, but that’s just that project there.

The next project, excuse me, is in suburban Denver, Aurora, Colorado, out in the gateway submarket near DIA. It’s part of the master plant community known as Windler, about 850 acres master plant community. Our general thesis on OZ projects is finding infill kinda sites that probably shouldn’t be OZ, that are incredible locations or a real path of progress. This is, you know, the latter. The previous project was really more that infill type and the next one is as well. But this is a 200-unit multifamily project, part of a master-planned development out in Aurora, east of Denver. Hard to see on this slide perhaps as I’m going quickly here and the font is a little small, but you can just see the massive, massive amount of development that’s happening out in this corridor.

Logistics, multi-family, single-family, retail, everything under the sun. This is the true kind of growth area for Denver. Now going to the west and up into the mountains, the north and the south are getting pretty far away from city center. And it’s a real path of this project for us. Very excited to be a part of Windler development, which is done by Alberta. Great master-planned community developer. Very early here, this area’s from a little bit ago too, just to kind of give you a little feel for what’s going on here in this area. Single-family, multi-mixed use. There’s a massive park in the middle.

As I mentioned, this is in the DIA Gateway airport area, which has just added a ton of housing and jobs. A couple of renderings here of what we think is a really high-design, beautiful project. All our projects, given that we’re gonna hold these long term, we’re hoping to be very high design and really be successful long-run. This is also slated for a submission this month. This is by-right, so, you know, it does need site plan approval, but as a by-right project. And we’re hoping to break ground on this in October of 2023 for a 2025 opening.

The last project is a real kind of trophy project for us. It’s in the heart of Old Town Scottsdale. It’s a project called “The Artisan.” We’ve been working on this project for two and a half years. It’s probably taken at least that many years off my life to get it to this point. This is an A-plus location, the heart of Old Town Scottsdale. This is the most walkable arts and entertainment area in all of Arizona. Very well-known spot. This is where you go when you visit Phoenix. This is where you stay. This is gonna be a high-design building, really high-design building, rooftop pool, short-term rental potential.

Just a beautiful project that we’ve been working on now for some time. To kinda show you where this sits. This is Old Town Scottsdale. This is kind of Main and Main. We’re at Indian School and Marshall Way, right in the heart of it all. Every direction you’re gonna walk here, you’re gonna find shops, restaurants, bars, everything you’re looking for from an entertainment perspective. It’s a real premium location and we’re super excited about it. Here you can see kind of the aerial view land. We’ve owned this for some time. As I mentioned, and have just been working through a very, very, very difficult entitlement process to get to where we are today.

A little quick highlights on Scottsdale. I don’t know that it even needs a whole lot of introduction here. This is a market that’s well-known. One of the top places to live and visit in the country. And again, we’re right in the heart of it all. It’s a beautiful project designed by Swaback, great architecture team based there in Scottsdale. It had two buildings, again rooftop pool, ground-floor retail, underground parking. This is a similar timeline, slated. We are through just, you know, through the political process and just in an administrative process from here on out. And the construction permits here are also starting in September or October and finishing in 2025 for a stabilization refinance in 2026.

So, that’s kind of our synopsis today on three different projects that we’re working on. We’re super excited to have open for investment and breaking ground in 2023. As I mentioned many times, I know I spoke fast here, just wanted to cover as much ground as possible. And I hope that you guys can follow up with us. My email is [email protected]. I’m sure Jimmy will provide more contact information as well. And I can let him carry on and try to make up some ground here on the rest of the OZ Pitch Day.

Jimmy: Yeah. Fantastic. Thank you, Ryan. I’ve just linked your email in the chat for everybody. If anybody has questions for you. We do have time for one…well, we are a little bit over time, but we’ve got time…I’ll give you one question here that we got in that I want the answer to. You mentioned briefly an in-house construction company. Is that a subsidiary or a related party?

Ryan: Really more of a related party. Well, it’s not owned by Jackson Dearborn Partners, but it is 100% owned by Chris Saunders, who is the primary partner here at JDP. So, we call it an affiliate and like I said, they build everything that we do. They have a construction office in Colorado Springs and a construction office in Scottsdale, Arizona, and they only build for us. So, it’s a joint-at-the-hip affiliated agreement. And yeah, I dunno where we’d be without them. They’ve been a tremendous resource.

Jimmy: And then we did have one more question coming from Sanford just now. Sanford asks, “What is your fee and deal structure?”

Ryan: Yeah. So, a standard deal structure for us and all these fit that template 90/10 deal with us committing 10% of the equity, investors coming in for 90. Eight percent preferred return, 70/30 above an 8. The predominant fee structure is a 1% of capital asset management fee on an annual basis. The developer fee is 4% of project cost minus land and fees. And those are really the primary fees. And like I said, please reach out on any one of these. There’s a full deck available with all the fee terms, etc., all the nuances that you’re gonna look for if you’re gonna consider an investment.

Jimmy: Terrific. Thanks, Ryan. That does it for our time today with this segment. But yeah, please do reach out. Visit jacksondearborn.com or email Ryan, [email protected]. Ryan, thank you so much for your participation today. I really appreciate it.

Ryan: Thanks so much, Jimmy. Thanks, everyone, for joining us.