DIVERSIFIED REAL ESTATE FUND
Mariano & Co Real Estate Fund
DISCLAIMER
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This presentation does not purport to be all inclusive or to contain all of the information that a recipient may require to make an investment decision and is qualified in its entirety by the private placement memorandum, subscription agreement, and company agreement or similar offering documents (collectively the “Offering Documents”). Offers and sales of equity securities will be made only in accordance with applicable securities laws and pursuant to the Offering Documents and/or other definitive documentation. This presentation, by itself, is not an offer for the sale of securities. The Offering Documents will supersede this presentation in its entirety.
There is no guarantee that any of the estimates or projections contained herein will be achieved. The recipient should not rely on any information contained herein as no investment, divestment, or other financial decisions or actions should be based solely on the information in this presentation. Actual results will vary from the projections and such variations may be material, including the possibility that an investor may lose some or all of its invested capital. Prior performance of the Sponsors is not necessarily indicative of future results.
This presentation may be confidential, and the offering referenced herein is intended to be a private placement, even if generally advertised. By acceptance hereof, you agree that (i) the information must not be used, reproduced, or distributed to others without the prior written consent of the Company; (ii) you will maintain the confidentiality of this information not already in the public domain; and (iii) you will only use the information contained herein for informational purposes and no other purpose, including to compete with the principals herein. If you do not agree with these terms, please return or destroy this presentation immediately.
Mariano & Co Real Estate Fund
LEADING RESIDENTIAL REMODELING & CUSTOM HOME BUILDING COMPANY IN PHOENIX, AZ
About Us
*3-Year Avg
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Mariano & Co: Your Contractor for Life™
Mariano & Co is committed to delivering 5-star custom home building and remodeling services across the Phoenix Valley, from Scottsdale to Gilbert. We emphasize elegant design, high-quality materials, and professional, tech-savvy construction techniques. Our projects are completed on time with a focus on quality and precision. As we near completion, we ensure every detail is perfect, providing a white-glove experience until our clients are fully satisfied.
With over 290 “5 Star” reviews for delivering extreme quality and customer service.
Gross Margin for Construction
28%
US Average
~45%
Mariano & Co*
The company's growth and success are attributed to:
Unwavering commitment to team culture.
Commitment to training staff to become future leaders.
Adherence to processes and procedures.
Mariano & Co Real Estate Fund
FUND SPONSOR
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Victor Mariano Jr. is the Founder and President of Mariano & Co., LLC established in 2009. The company started in the construction industry as a remodeling contractor. Over the 15 years in business the company has grown to become a respected General Contractor, Luxury Remodeler and Home Builder.
The company is in year four of a ten-year plan to generate $50M per year.
To support this effort, the company has added talented resources nationwide, including:
A Leader’s Vision for the Company
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
FUND ADVISORS
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BRAD BLAZAR
Capital Consultant
DAVID O’BRIEN, CPA, CGMA�Partner & Director of Construction Services
ADNAN MERCHANT
Managing Partner, Legal Counsel
Mariano & Co Real Estate Fund
DEVELOPMENT TEAM
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STEVE PECK
National Director of Land Development, EPCON Communities��
ROB KROHN
Vice President,�Marketing��
AMY MCCORMICK
National Sales�Manager��
JOSH KLINGER
Corporate Purchasing�Manager��
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
WHY THIS FUND
Recession-Resistant Strategy
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Proven Expertise and�Efficient Operations
Strategic Focus on�High-Demand Markets
Diverse Investment Strategies
Demographic Trends and Economic Impact
Market-Driven Financial Strategy
Commitment to Market Trends and Opportunities
Mariano & Co Real Estate Fund
WHY PHOENIX
Sources: investinphoenix.com, kpi1031.com
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Mariano & Co Real Estate Fund
$103K
Average household income
35.1
Median age�
~23%
Can afford a single family house
22%
Of population�are aged 55+
5th
Largest US City (Phoenix Metro)
7th
Best performing city in 2021 (Phoenix Metro)
Major employers
Phoenix is a vibrant, rapidly growing market that attracts global businesses and talent. Between 2010 and 2021, employment increased by an average of 37%. The city's diverse talent pool has drawn companies like:
With affordable operational costs and a strong regional collaboration, Phoenix continues to offer abundant opportunities with no signs of slowing down.
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
MEANWHILE IN GREATER PHOENIX
Next Update: June 20, 2024 (3rd Thursday each month)
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April Employment Report
Arizona saw robust growth, adding 12,900 jobs
Unemployment Rate
April 2024 - Not Seasonally Adjusted
Labor Force
April 2024 - Not Seasonally Adjusted
Nonfarm Employment
April 2024 - Not Seasonally Adjusted
2.9%
-0.8% Year-over-Year
3.9% US
+0.5% Year-over-Year
75.2K
Total Nonfarm Employment
1.6K
Numeric
Y-o-Y Change
+2.1
Percentage
Y-o-Y Change
206.9K
Labor Force Level
+2.5%
Year-over-Year Change
2.3%
-0.7% Year-over-Year
3.9% US
+0.5% Year-over-Year
2.4M
Total Nonfarm Employment
47.6K
Numeric
Y-o-Y Change
+2.0
Percentage
Y-o-Y Change
2.5M
Labor Force Level
+2.4%
Year-over-Year Change
Labor: Maricopa County
Labor: Pinal Country
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
LAND DEVELOPMENT
Three Target Areas
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EPCON 55+
Clayton CrossMod
EPCON Condo
Mariano & Co Real Estate Fund
EPCON
EPCON Franchise
***The financial projections herein are 1) merely projections, 2) “forward looking statements”, and 3) not guaranteed in any way. End results may differ materially. Prospective investors should not rely solely on the numbers and projections presented and should conduct their own due diligence regarding the same.
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EPCON Communities (Highend 55+) | |
Number of Units | 155 |
Total Sale Price | $124,229,865.00 |
Land Aq/Development | $32,428,325.00 |
Vertical Construction Cost | $72,064,770.00 |
Option Construction Cost | $6,836,275.00 |
Vertical Construction Carry Cost | $1,507,840.00 |
Cost of Sales | $8,074,415.00 |
Margin | $3,318,240.00 |
Average Equity Invested (5yrs) | $3,392,709.00 |
Project ROI/5yrs | 98% |
Project ROI/yr | 20% |
55+ Communities - Discretionary Spending
Support schools without adding students
Don't add to road congestion
Support local establishments (Grocery, Restaurants, Shopping Centers)
Not as likely to be affected by interest rates (50% pay cash!)
~11k Baby Boomers are retiring per day!
Mariano & Co Real Estate Fund
THE 55+ DEMOGRAPHICS
Data: National Association of Realtors
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Largest segment of new home buyers.
2023 Home Buyers and Sellers Generational Trends Report
Underserved in the housing market.
Many businesses focuses on catering to the demands of younger demographics.
EPCON
Less competition in the active-adult niche.
Builders have not yet taken advantage of�the opportunities available in the 55+�housing market.
EPCON
Home Spending of the 55+ Demographics
50%
Pay cash for their homes
20%
Use reverse mortgage
30%
Make large�deposits
58
49
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55+ buyers purchase new homes at a higher percentage than any other age group.*
*202 Home Buyers and Sellers Generational Trends Report. National Association of Realtors®
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
WHY 55+ HOME BUILDING WITH EPCON
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High net worth buyers: The 55+ market has the highest net worth in history, with many deals happening in cash. They are less likely to be adversely affected by fluctuations in interest rates, providing stability in housing markets and local economies.
Special financing: These buyers can receive special financing options, like a Home Equity Conversion Mortgage (HECM) loan.
Tailored amenities: EPCON community amenities (Clubhouse, Pool, Pickleball, Health Club, etc.) and homeowner association (HOA) services are tailored to meet the demands of the 55+ buyer.
Ideal land opportunities: EPCON helps conduct research on each property to understand demographic trends to help you identify opportunities better suited for 55+ communities.
Thoroughly researched: EPCON stays at the forefront of this ever-changing audience segment by continuing to research and analyze trends, needs and behaviors in the home building space.
Enhance School Funding Without Increasing Enrollment: These communities contribute to local school systems financially without adding to student populations, ensuring schools receive support without overcrowding.
Minimize Road Congestion: EPCON communities are designed to reduce the impact on local traffic, helping to maintain smoother road conditions.
Bolster Local Economy: Residents actively support nearby businesses, including grocery stores, gas stations, restaurants, and shopping centers, stimulating economic growth in the area.
Mariano & Co Real Estate Fund
TOP 10 MOST ATTRACTIVE US CITIES�FOR RESIDENTS OVER 60
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Top 10 States That Gained the Most Retirees
Top 10 Cities That Gained the Most Retirees
Rank | State |
1 | Florida |
2 | Arizona |
3 | South Carolina |
4 | Texas |
5 | North Carolina |
6 | Georgia |
7 | Alabama |
8 | Tennessee |
9 | Nevada |
10 | Kentucky |
Rank | City |
1 | Mesa, Arizona |
2 | San Antonio, Texas |
3 | Henderson, Nevada |
4 | St. Petersburg, Florida |
5 | Murfreesboro, Tennessee |
6 | Chattanooga, Tennessee |
7 | Houston, Texas |
8 | Fort Worth, Texas |
9 | Atlanta, Georgia |
10 | Clearwater, Florida |
#1
Mesa, Arizona
#2
Arizona
61.7K
38.2K
23.5K
1.8M
25.0%
Retirees moved in
Retirees moved out
Net movement
Population�aged 60+
% of population aged 60+
7.0K
2.5K
4.5K
118K
23.0%
Retirees moved in
Retirees moved out
Net movement
Population�aged 60+
% of population aged 60+
Mariano & Co Real Estate Fund
AFFORDABLE HOUSING
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Mariano & Co Real Estate Fund
Clayton Homes (CrossMod®)
CrossMod homes are offered at an accessible price-point that makes homeownership attainable for more people. They are especially suitable for first-time home buyers and families looking to downsize as they invest in their futures. They also provide an opportunity to build equity and wealth overtime.
Clayton’s CrossMod homes are required to be appraise like site-built homes for the Fannie Mae’s MH Advantage program and Freddie Mac’s CHOICEHome program. Mariano & Co. Investments LLC will be partnering with Guild Mortgage on the financing of the homes to ensure proper procedures are followed during the mortgage process
Clayton Homes uses a trademarked program called eBuilt to ensure energy-efficient standards are met during the build process - features such as LED lighting, low-E windows w/argon gas, ecobee programmable thermostats, ENERGY STAR appliances, sealed duct system and whole house ventilation system.
Homeownership�Within Reach
Financing�and Appraisals
Energy Efficient�Features
Mariano & Co Real Estate Fund
CLAYTON�HOMES
***The financial projections herein are 1) merely projections, 2) “forward looking statements”, and 3) not guaranteed in any way. End results may differ materially. Prospective investors should not rely solely on the numbers and projections presented and should conduct their own due diligence regarding the same.
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Clayton Homes (Affordable Housing) | |
Number of Units | 120 |
Total Sale Price | $51,340,800.00 |
Land Aq/Development | $12,959,640.00 |
Vertical Construction Cost | $30,376,680.00 |
Option Construction Cost | $- |
Vertical Construction Carry Cost | $1,009,680.00 |
Cost of Sales, includes 18k mortgage buydown | $4,710,360.00 |
Gross Margin | $2,284,440.00 |
Average Equity Invested (5yrs) | $2,099,625.00 |
Project ROI/5yrs | 109% |
Project ROI/yr | 22% |
Mariano & Co Real Estate Fund
INVESTMENT STRATEGY
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Our team anticipates finding land to acquire in order to develop subdivisions ready for vertical construction for our EPCON Community Products (55+ homes and Condo Projects) as well as our entry level affordable home products by Clayton Homes (CrossMod technology). While we are pursuing the land deals, we will mitigate risk to the ROI of the FUND by investing in products that we currently have active in our portfolio.
The FUND will be evaluating and investing in single family homes for our Home Rebuilding Program and purchasing additional “build-ready” lots for our Custom Home products. Our evaluation process scrutinizes each opportunity with the upmost care to ensure each asset will generate strong returns for our investment team members. This disciplined approach allows Mariano & Co Investments, LLC the opportunity to generate the maximum returns possible for the FUND.
Land Acquisition: Our team anticipates finding land deals and home purchases at/or below fair market
Strategic Markets: Targeting growth centers in the Phoenix Metro Area
Due Diligence: Perform underwriting at the property level allowing for optimal capital allocation to achieve maximum ROI
Land Development: Maintain Strategic Partnerships with subcontractors and Vendors. Establish and monitor project KPI’s
Sales Force Training: Engage with EPCON Sales & Training to implement hiring and training of new home sales program for team members
Vertical Construction: Continually improve on our existing processes and procedures to ensure peak construction performance
Quality Control: Monitor and provide feedback to the team – ensure that homeowners are receiving the “5 Star Customer Experience”
Exit Strategy: Ensure timely selling off�of all assets within the FUND by end of year FIVE
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Mariano & Co Investments, LLC is a diversified FUND with a�multi-tier investment strategy. The priority is on land acquisition and development due to the length of time the process takes.
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Mariano & Co Real Estate Fund
CUSTOM BUILDS
***The financial projections herein are 1) merely projections, 2) “forward looking statements”, and 3) not guaranteed in any way. End results may differ materially. Prospective investors should not rely solely on the numbers and projections presented and should conduct their own due diligence regarding the same.
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Target Areas
High price per square foot resale areas
Target Sales Price
$1,500,000 - $2,500,000
Property Size
Lots of ½ acre+
Quality
High-end finishes
Target Buyers
Executive level
Operational Capacity
Manage 4-6 properties simultaneously
Mariano & Co Real Estate Fund
CUSTOM BUILDS
***The financial projections herein are 1) merely projections, 2) “forward looking statements”, and 3) not guaranteed in any way. End results may differ materially. Prospective investors should not rely solely on the numbers and projections presented and should conduct their own due diligence regarding the same.
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Custom Homes | |
Number of Units | 16 |
Total Sales Price | $40,320,000.00 |
Land Aq/Architect | $8,000,000.00 |
Vertical Construction Cost | $21,600,000.00 |
Landscape Construction Cost | $4,000,000.00 |
Vertical Construction Carry Cost | $1,411,200.00 |
Cost of Sales | $1,942,000.00 |
Gross Margin | $4,601,600.00 |
Average Equity Invested (5yrs) | $5,066,666.00 |
Project ROI/5yrs | 91% |
Project ROI/yr | 18% |
Mariano & Co Real Estate Fund
RE-BUILD / REMODEL�
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After
Target Areas
High price per square foot resale areas
Target Properties
Smaller homes on large lots in older neighborhoods
Expansion Plans
Add 600-1500 square feet; include ADUs�when possible
Comprehensive Remodel
Full home renovation along with the addition
Target Buyers
Multi-generational families, VRBO,�ADU rental market
Operational Capacity
Manage 6-10 properties simultaneously
After
Before
Before
Mariano & Co Real Estate Fund
FUND DETAILS
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$15M
Total�Raise
10-18%
Target�ROI
7%
Preferred Return
75 / 25%
LP / GP�Split
$50K
Minimum Investment
5 years
Term
Mariano & Co Investments, LLC - Real Estate Fund
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
INVESTMENT PROCESS
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Mariano & Co Real Estate Fund
Investor Accreditation
Accreditation questionnaire completed by prospective investor.
Investor Due Diligence
Detailed offering documents and fund prospectus provided.
Investor Onboarding
Completion of subscription documents, investment allocated, and onboarding into investor portal.
Capital Deployment
Funds allocated to property acquisitions.
Ongoing Reporting
Regular updates, financial statements, and performance reports shared with investors.
Mariano & Co Real Estate Fund
Mariano & Co Real Estate Fund
TIMELINE
Expected Units
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Activity
Capital Raise
Capital Deployment
Rebuild & Remodel
Custom Homes
Land Development
Clayton Homes - Affordable Housing
55+ Community Buildout
12 | 24 | 36 | 48 | 60 |
Months to Complete
$15M
Over 48 month period
Projected (30)
Projected (16)
Projected - 2 subdivisions
Projected - 60 to 120 units
Projected - 150 to 180 units
Mariano & Co Real Estate Fund
***The financial projections herein are 1) merely projections, 2) “forward looking statements”, and 3) not guaranteed in any way. End results may differ materially. Prospective investors should not rely solely on the numbers and projections presented and should conduct their own due diligence regarding the same.
Mariano & Co Real Estate Fund
LOG-IN TO THE INVESTOR PORTAL
Next Steps
Contact Victor for any Questions
VICTOR MARIANO, JR.
Owner & President
Mariano & Co., LLC
Mariano & Co Real Estate Fund