In this webinar, Tess Young presents a mission-driven investment opportunity in Globe, Arizona.

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Webinar Highlights

• Monte Dei’s vision of a mission-driven investment opportunity in Globe, Arizona.
• A three-fold development plan including both revitalization and ground up construction.
• Overview of Globe, located about 90 minutes from Phoenix.
• Monte Dei’s fundraising strategy and project timing.
• Monte Dei’s fund structure, target returns, and waterfall.
• Overview of a ground up construction project, Marigold Village.
• Live Q&A with OZ Pitch Day attendees.

Industry Spotlight: Monte Dei

Monte Dei Globe is a rural Opportunity Zone development project that will be a luxury, sustainable retirement mountain top village where a portion of the profits are tithed to build co-located free housing for retired religious clergy.

Learn More About Monte Dei

• Visit MonteDeiGlobe.com
• Monte Dei Globe YouTube videos

Webinar Transcript

Jimmy: We have a new entrant now, coming up next, in Monte Dei Globe. They have a mixed-use real estate master-planned community in Globe, Arizona, so I’m gonna bring their two presenters up on stage.

Tess: Thank you, Jimmy, and good morning to everyone. It’s truly an honor and a privilege to be part of today’s distinguished panel of Opportunity Zone speakers. My name is Tess Young, and I’m the CEO of Monte Dei Globe Operations, LLC, or just Monte Dei Globe. And with me is my cofounder, business partner, and chief operating officer of Monte Dei Globe, Brian England.

So, today, we are very excited to share with you an exciting, mission-driven investment within Opportunity Zone in Globe, Arizona. And keeping with Jimmy’s Irish theme this morning, I, as we delve into our presentation, and our vision and strategy, I’d like to leave this quote with you for something to think about. A famous Irish playwright, Oscar Wilde, once said that “Everybody knows the price of everything, but the value of nothing.” So, as we listen, as you listen to our presentation, if you’re an investor that’s really looking for passive fixed income, or just regular distributions, then I don’t think this investment is for you. But if you are an investor that we want to consider as a partner, that will simultaneously create wealth, with your values and faith, to build generational wealth by prioritizing long-term impact over short term income, then this fund is probably for you. Someone who’s looking to leave a legacy for their children, and their children’s children, and creating an impact, so that you leave the world better than you found it.

So, what is our vision? For Monte Dei Globe, the number that sticks out to us, as we’ve done our research, is 270,000. Why 270,000? Two-hundred-seventy thousand is the number of housing units that’s desperately needed just in the state of Arizona. And Arizona is not alone. We’re finding that a lot of people just aren’t able to find attainable and affordable housing, despite the efforts of local government to pass bills, we all know that government really isn’t the most efficient when it comes to doing what the market does best. And so, as Jimmy had mentioned earlier, Opportunity Zones really is this dynamic engine of growth, that harnesses the ability to match patient capital with development investors, in areas where a lot of times, investors have often overlooked, and in this case, in rural America.

And so, here, with Monte Dei Globe, our vision is threefold. The first one, in Globe Arizona, is to revitalize and rehabilitate three properties that are in desperate need of rehabilitation, and being able to lease that out and generate cash flow. The second strategy that we have in our vision is to build ground-up construction. Why? Because although we’re not able to fill the 270,000 gap, there is a desperate need for the City of Globe. And like most rural towns, they happen to take the brunt of this shortage. A lot of times, businesses and employers aren’t able to find housing. That limits their ability to recruit talent, and retain talent, and a lot of times, that impacts the growth of the city to be able to grow and provide programs for their citizens. So, what we’ve done is that we’ve actually taken the concept and the spirit of the Opportunity Zone, and we’ve added an extra layer. And what we’ve done is that, by tithing a portion of our profits, we plan to create and build free housing for the retired religious clergy, religious priests, and religious nuns. By partnering with our nonprofit, we hope to tithe a portion of our profits, and actually leave an impact for this underserved market.

So, just quickly, why Globe? Globe is such a beautiful and charming town. It’s about an hour and a half away from Metropolitan Phoenix. It’s got some beautiful outdoors hiking, night sky, charming community, small-town living. But most importantly, I think what helps us the most as developers is finding the leadership within local government that’s more than willing and able to help us as developers, to, in essence, to create this community, to be able to build and generate wealth, by helping create jobs with what we’re trying to do. With Marigold Village, we’re looking at a 58-acre parcel of land, where we plan to develop a master-planned community, with over 700 housing units, to build a hotel and event space that will be open to the city, and for our neighboring cities as well. And finally, we’ll talk a little bit more about the beautiful Marigold Village, historic downtown, and also giving back. So, next slide please.

How do we plan to do this? At this point in time, we are looking to raise $10 million in equity. So, what we plan to do is, of the $10 million, we plan to use it as seed money for our entire vision. And as we mentioned before, we’re looking to acquire two out of the three buildings. One we’ve already acquired. At it’s actually a beautiful building. It’s called the Hitchcock Building. And you’ll see that later on. We’ll show you just some of the ideas that we’ve had. The second is, obviously, over time, we plan to reinvest profits, as we build Marigold Village, and eventually create that hotel and event space. So, what we’re trying to do is, really, with this development, with the concept of a money multiplier effect, we plan to really help generate and grow small mom-and-pop businesses, and to be able to create a lot of jobs with our investment. And of course, this will occur in stages, but at every stage, even in this first round, we will obviously preserve and keep in mind that investors will continue to have ownership stakes in future capital raises, as all money will be raised within the same QOF. So, speaking of QOF, next slide please.

Here’s a picture of our QOF structure. So, our fund, Monte Dei Globe Holdings, is structured similar to most multi-asset QOFs. We plan to invest all proceeds into our development company, where we’ll be purchasing, rehabbing and building other Opportunity Zone properties. As the general partners of the fund, we will not receive any proceeds until all investor capital has been paid back. And you will notice that there is a distribution structure. It’s a tiered distribution structure, based on the multiple of returns to the investor. So, our next slide.

In essence, as we had mentioned before, as partners, we’re looking to emphasize impact over income. And, as you can see right there, we’re looking to prioritize patient capital, and at the end of a minimum of 10-year anniversary, the income in essence becomes eligible for tax-free liquidation. And we’re looking at an expected internal rate of return of 10.2%, with a multiple of 2.8. Next slide please.

So, the next few slides, you’ll see our building, 286 North Broad Street, in Globe, Arizona. It was known historically as the Hitchcock Building. It was built in 1880, by Mr. Hitchcock himself. He had actually used this as a pharmacy, and as you notice, with the renderings from our amazing architects, Harrison Design, out of the Washington, D.C. office, just a shout out to Nick Charbonneau, John Parker Wilmeth, and his amazing team, they were able to dig through historical picture archives, and what they found was, because this is a turn-of-the-century Victorian building, what they found is that there were these beautiful cornices and decorative mouldings, and with their help and imagination and creativity, they were able to take what our building looks like, the one on the left, to what we plan to do on the right. And you’ll notice that old, this building, back, built in the turn of the 19th century, was built of brick, and it has these beautiful Victorian cornishes, and the top, we plan to put the logo of Monte Dei.

The next slide is is that what’s gonna make this very profitable for us is that we are going to use the over 60% of the building for commercial retail, and about 40% will be used towards residential. We know that this is part of the City of Globe’s plan for revitalization. Historic Downtown Globe is part of the Opportunity Zone area, and so we are excited because the city has definitely been very supportive and enthusiastic about our plans for this development. We’re looking at the next rendering, which is very exciting, and this is our ground-up development, called Marigold Village. It’s 58 acres of beautiful land, backing one of the most popular open space areas. It’s a type of hiking that allows people to really get majestic views of the Pinal Mountains and the surrounding mountains. Round Mountain Park, it has, actually, a connector trail to our property, and so that’s one of the amenities that residents and citizens alike will be able to enjoy. But most importantly, what’s beautiful about this development, as we envision it, is that it will beautify the skyline of Globe. Its going to incorporate, as you notice in the next slide, you’ll be able to see that we are going to incorporate solar panels, eventually put in megapacks, and even EV charging stations as well.

What you’re seeing here, as you enter the development, are six beautiful buildings. These are multifamily, and they will have commercial retail on the bottom and residential on top. What’s beautiful about this is that it, in essence, because Globe is landlocked, it allows us to build up, but also, at the same time, retain the charm of a small village-like setting. This particular land is built up on a hilltop, and what’s beautiful about this is that not only do you get to see the beautiful mountains during the day, but at night, the sky, the night sky watching is gorgeous. Further down, in the next slide, where you’ll see another street view, you’ll be able to…it’s almost being transported, as if you’re in kind of a very urban area, but you’re minutes to downtown historic Globe. And one of the things that you’ll notice also, as you walk through these streets, is that there’ll be a chapel, and building seven will be a building for free housing for the retired clergy, and religious. Next slide, please.

Ah. So, this right here is a lower-density development that we have, for single-family residential homes. We’re planning to offer three different types of products, single-family residential, and townhomes as well. We also have amenities, a pool, and a community center, that’ll have the ability for gatherings. So, in essence, with your investment, you’ll be creating value, by helping families have shelter, and a place for them to break bread with their families, with their friends, and with their community. Next slide, please.

So, what we plan to do with our profits, and tithing a portion of our profits, is to really give back. We’re looking at not just 270,000 homes that need to be built, but there’s also another crisis, that we know of. Unfortunately, a lot of people don’t realize that a lot of the religious priests and clergy usually live a life of, and take a vow of, poverty, and as a result, what we’re finding is that there is an underserved market, that aren’t able to have housing once they reach the twilight years. There was a recent study by the Catholic bishops. What they found was that only 6% of their religious orders were able to take care of their members as they reach their retirement age. And it’s unfortunate because, as you’ll find, part of the reason is is that there are, for every three retiring priests or religious, there’s only one new postulant for entrance, and unfortunately those numbers, it’s just not sustainable. So, there has been a call and a need to fill the gap for this housing need, and with Opportunity Zones, and with our enlightened capitalism, we’ve been able to answer that call, and to be able to fill the gap, and create, in this case, we’re starting with 70 units of free housing for the retired religious clergy. We also will partner with our nonprofit, or 501(c)(3), so that they’ll be able to also raise funds and donations, and be able to help with the upkeep, the furnishing of this building for the retired religious clergy. So, we’d like to definitely view you as a partner in this journey. Next slide, please.

We feel that, at the end of the day, when you look at your investment portfolio, you’re always wanting to look at how do you diversify your risk. We believe that Monte Dei Globe, and our fund, will give you that diversification. Because we’re looking at not just solid investment, where you do get a return, but we’re looking to grow that investment. So, maybe the best way to think about our fund is to look at us as a 10-year IRA or 401(k), where we plan to appreciate and grow the assets, not necessarily take out any distributions, but be able to grow this asset, so that at the end of the day, that you are making an impact, and creating generational wealth, and building a legacy, so that, in essence, you become the change that you want to see in others, and you become the ripple that makes this world a better place.

If you’re interested, and this is something that resonates with you, we’d love to take this journey with you, and take the next step. So, we’d like, we’d love for you to reach us, through either email, give us a call. We’d love to set up a time where we can go over more of the details of our offering, and our fund, and answer any questions that you may have. And, as you know, next slide please, as with any investment, there’s always risk. And so, here’s our legal disclosure. We will be sharing our slide deck with OpportunityDb, with Jimmy. And so if you’d like to definitely get a copy, please read our legal disclosure as well. And with that, that ends our presentation. And if you needed to reach us, please definitely do so. Our information is there, for me, for Tess Young, and for Brian England.

Jimmy: Perfect. Well, thank you, Tess. There’s that contact information. Yeah. Please do reach out to Tess and/or Brian if you’re interested in learning more about Project Marigold, or everything else that Monte Dei Globe has going on in Globe, Arizona. I got you started a little bit late. We got a couple minutes for some questions, and then we’re gonna move on to our next presenter. We did have one question. Water rights on Marigold? Quick answer, yes. So, congrats there. What is the timeline for each of the three projects? I had that question come in.

Tess: Excellent question, Jimmy. So, where we are right now is we’re looking to get final approval, actually next month, for our site plan. And we’re hoping by, in about 120 days, to get approval for permitting. If all goes well, and we anticipate we do, because we have the full backing and support of the city, the town council, we’re looking at breaking ground possibly this December, of 2024. Now, that’s for the ground-up development. With regards to our historic downtown, it’s an existing building, so we’re looking at being able to stabilize rents within 18 months.

Jimmy: Fantastic. We had one more question just come in through the Q&A module. Julia asks, “Has Monte Dei Globe done master community development before, or have you, maybe you’ve partnered with somebody who has. And if yes, how many, and where?” What’s your experience, essentially?

Tess: Yes, excellent question. So, my background has been in development, especially with regards to building from ground up, specifically medical buildings, and also partnering with a hospital in Arizona, where what we did was we had a senior living community that was right next to, located to a hospital. So, with regards to development, in this case, that has been our experience. With master-planned community, we have an amazing team, and that’s the type of talent that we’ll be leaning on to be able to create this master-planned community.

Jimmy: Fantastic. Well, with that, we are at time. Tess, Brian, really appreciate you joining us today. And both of you are OZ Insiders members as well, so we appreciate your membership in our OZ Insiders community. A lot of our presenters today are members of that new mastermind group, OZ Insiders. Please do reach out to Tess and Brian. Their contact information is up on the screen. Or you can head to montedeiglobe.com to learn more. I’ve linked to that in the chat as well. Thank you both so much. I’m gonna put you back down to attendee role now. Really appreciate your time today. Thank you.

Tess: Thank you, Jimmy.