Sentinel Opportunity Fund 1
Sentinel Net Lease, LLC is launching its latest real estate investment vehicle, Sentinel Opportunity Fund I, LLC. During this time of market uncertainty, Sentinel will leverage its capabilities and track record to take advantage of favorable industry tailwinds and the compelling risk-return profile of stabilized office, retail, and industrial properties. The target size of this Fund is $100MM and it will serve as the primary acquisition vehicle for Sentinel Net Lease transactions until the full deployment of all Fund capital.
$100,000,000 Target Fund Size
Office, Retail, and Industrial
Stabilized Assets Only
Target Net IRR: 16% to 20%
Target Year 1 Cash-on-Cash: 8% to 11%
Quarterly Distributions
About the Fund
Sentinel Opportunity Fund I, LLC (the “Fund” or “SOFI”) is a closed-end real estate investment fund. The Fund is an actively managed portfolio of privately-held commercial real estate assets.
INVESTMENT PHILOSOPHY
Objective
The Fund aims to deliver returns that stem from both ongoing income and capital appreciation, while maintaining minimal volatility and correlation with wider market trends.
Potential Benefits
Sentinel Opportunity Fund I has the potential to offer investors additional benefits beyond our traditional single-asset syndications. The fund structure is highly accretive to our strategy and operations:
Investment Diversification:
Acquiring several assets through a diversified portfolio that spreads risk across various office, retail, and industrial properties and geographic locations.
Institutional Access:
Non-institutional investors often lack the capital needed to participate in larger, more lucrative deals. These larger deals typically come with economies of scale and can potentially offer higher returns and lower relative risk.
Competitive Advantage:
By aggregating a large pool of capital, the fund may be able secure deals more efficiently and often at better prices due to the ability to offer faster closings and on an all-cash basis.
Simplified Tax Reporting and Accelerated Depreciation:
Instead of dealing with the complexities of tax reporting for multiple properties, investors receive a single Form K-1 from the fund. Sentinel will utilize cost segregation studies to accelerated depreciation when applicable for additional tax benefits.
Alignment of Interest:
As the General Partner, Sentinel will continue its best-in-class efforts to create alignment with its Limited Partners. Sentinel will commit up to $5MM of its own capital into the fund and will employ a European-style waterfall that prioritizes the return of capital to LPs before the GP starts receiving its share of profits.
Fund Acquisition Criteria
PROPERTY CRITERIA
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Office, Industrial, and Retail Properties
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Single-Tenant Preferred
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Minimum Occupancy: 85%
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Target Cap Rate Range: 8.5% to 10.5%
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Minimum Price: $5,000,000 to $40,000,000
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All Acquisitions Below Replacement Cost
REAL ESTATE & LOCATION CRITERIA
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Real Estate Use: Office (corporate & regional headquarters and mission-critical locations), industrial, retail.
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Target Markets: Top 150 Metro Areas with strong demographics and/or growth characteristics.
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Location: Suburban locations only. Easy access to highways and other major commercial services.
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Parking: Parking ratio must exceed 4.0/1,000 SF for office.
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Amenities and Services: Typically include on-site dining and fitness options, lobby/rooftop common areas, walking trails, etc.
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Property Condition: Class A & B properties with little or no deferred maintenance.
TENANT & LEASE CRITERIA
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Tenant Credit: Investment-grade and non-investment grade credit-rated tenants preferred. Large, financially stable non-rated companies also considered.
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Lease Type: Absolute or triple-net (NNN) preferred. Double-net and modified gross leases are also considered.
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Lease Term: 9+ Year Weight Avg. Lease Term target.
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Rent Escalations: Rent escalations required.
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Physical Occupancy: Must possess strong daily utility and physical occupancy characteristics.
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Leasing Track Record: Expectation of “sticky” tenant to increase probability of lease renewal or strong ability to backfill space.
About Sentinel
Assets Under Management
$280MM+
Square Feet
1.78MM
Net Cash-on Cash from Lease Income
11.9%
Avg. Net IRR on Completed Investment
35%
Fred Lewis
Co-Founder & Chief Executive Officer
Dennis Cisterna
Co-founder, Managing Partner, & Chief Investment Officer
A Brief Story About The Firm
Founded in 2019 by industry veterans, Fred Lewis and Dennis Cisterna, Sentinel Net Leaseis a real estate investment firm that is focused on opportunistically acquiring assets that produce ongoing cash-flow from long-term leases. These assets are expected to be resistant to certain market disruptions while offering potential outsized returns for investors. Our integrated business model creates a competitive edge in the marketplace that provides sustainable, long-term value to our investors.
In a post-COVID environment, we strive to understand the long-term viability of the real estate we acquire by assessing the current utility and occupancy of the building coupled with potential future demand.
Since our inception, Sentinel has made it a priority to improve the investment experience for our investors to make smarter, more informed decisions related to our current portfolio and future acquisitions. Advances in technology, applications, and data analytics have made it possible for middle-market investors like Sentinel to have access to the same tools as the largest investment firms in the world. From data analytics to investor reporting, Sentinel offers a best-in-class experience for our investors. While we take pride in the numerous industry honors we’ve been awarded, the greatest satisfaction comes from the positive feedback we receive from our investors.
Investor Eligibility & Compliance
WHO IS ABLE TO INVEST?
The Fund is a 506c offering. Investment in the Fund is limited to accredited investors. All potential investors must be verified as accredited investors through a third-party or other methods as selected by the manager. Sentinel performs due diligence on every potential investors to ascertain their eligibility and suitability including Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. Investors must certify the source of their Funds and declare that they are not involved in any activities that could harm the Fund's reputation or contravene any laws. Periodic recertification may be required based on changes in regulations or the investor's circumstances
The full definition can be found on the SEC website. In summary, for an investor to be considered accredited, they must either fit the following base criteria: Individuals with a Net Worth Exceeding $1 Million: This does not include the value of their primary residence. Individuals with an Income Over $200,000 Annually: Or $300,000 jointly with a spouse, in each of the prior two years, with the expectation of earning the same or higher income in the current year. Banks, Insurance Companies, Registered Investment Companies, Business Development Companies, and Small Business Investment Companies: These are considered accredited investors by virtue of their status. Employee Benefit Plans: If the plan has total assets in excess of $5 million. Charitable Organizations, Corporations, or Partnerships with Assets Exceeding $5 Million. Trusts with Assets in Excess of $5 Million: Operated by a sophisticated person, as defined by the SEC, to direct investment decisions. Entity Owned Entirely by Accredited Investors: Any entity in which all of the equity owners are accredited investors. Spousal Equivalents: This allows spouses to pool their finances for the purpose of qualifying as accredited investors. Knowledgeable Employees of Certain Private Funds: For private Funds, certain employees who have intimate knowledge of the Fund's operations are also considered accredited investors. Limited Liability Companies with $5 Million in Assets: LLCs meeting this criterion are included as accredited investors. Family Offices with Assets Under Management in Excess of $5 Million: And their family clients, as defined under the SEC's family office rule.
FAQ
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How can I contact the Sentinel Net Lease support team if I have questions?You can reach our team in one of two ways: By email: investors@sentinelnetlease.com By phone: +1 (410) 205-9580
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Who can invest in Sentinel Opportunity Fund I?To invest in Sentinel Opportunity Fund I, investors must meet the SEC’s criteria of being an accredited investor.
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What is an accredited investor?Generally, an individual is an accredited investor if they meet one of the following criteria: Have an individual net worth, or joint net worth with their spouse or spousal equivalent, that exceeds $1 million (excluding the value of your primary residence) Have individual income exceeding $200,000 in each of the past two financial years and a reasonable expectation of satisfying this requirement in the current year Have combined income with their spouse exceeding $300,000 in each of the past two financial years and a reasonable expectation of satisfying this requirement in the current year; or Hold a Series 7, Series 82 or Series 65 financial services license.
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I am investing through a business entity (i.e., a trust, limited liability corporation, partnership or corporation). How does an entity qualify as an “accredited investor”?An entity satisfies the SEC’s definition of an accredited investor by meeting one of the following criteria: Is wholly owned by accredited investors Has total assets in excess of $5 million and has not been formed for the purpose of investing in a specific investment.
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Why do I have to prove I am accredited for this investment?Sentinel Opportunity Fund I is offered pursuant to an SEC rule referred to as 506(c). The rule requires that Sentinel verify the accreditation status of each investor. For this reason, investors are required to provide written certification from a licensed professional (attorney, CPA, investment adviser or broker/dealer) that attests to their accreditation or verify through a third-party accreditation service used by Sentinel.
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How can I verify I am accredited?Sentinel will provide a standard accreditation letter that can be signed off on by a CPA, attorney, or financial adviser. If those options aren’t available to an investor, they can go through verifyinvestor.com. Acceptable accreditation letters will have been signed within the past 90 days prior to subscribing to Sentinel Opportunity Fund I.
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What if I don’t want to verify that I am accredited?Verifying your accreditation status through one of the approved methods above is required to invest in Sentinel Opportunity Fund I.
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I have verified my accreditation. Will I have to provide accreditation in the future?Verified investors do not need to re-submit accreditation for a period of five years after initial submission.
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How does the subscription process work?Prospective investors interested in subscribing to a Fund can do so using our investor portal. Once subscription documents have been reviewed and approved by our internal team, the next steps will be sent to investors.
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When will I need to wire my capital?Depending on our acquisitions pending, you might either be required to send capital immediately after signing the subscription documents or to wait until your capital is called by Sentinel. Depending on our acquisitions pending, you might either be required to send capital immediately after signing the subscription documents or to wait until your capital is called by Sentinel. There are a few avenues to stay up to date on the performance: the Sentinel Net Lease portal, quarterly investor reports, and webinars. Reports will be uploaded to your portal where you can read about the fund performance, find information about the assets, and see financial data. The Sentinel team is always available to discuss your investments and you can book directly using this booking link to reach our investor relations.
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Am I able to sell or withdraw my investments prior to the end of the hold period?Investments in Sentinel Opportunity Fund I are generally illiquid, and investors should anticipate holding their investment for the period specified in the Fund’s respective private placement memorandum (PPM). An investor in Sentinel Opportunity Fund I may not sell, assign, or transfer their interest in the Fund without the prior consent of the Fund manager. Please reference the private placement memorandum (PPM) for details. In the event you need to liquidate your position, we will offer it to our existing investors, but cannot guarantee the transfer, not can we guarantee a specific sales price.
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What is a private placement memorandum (PPM)?A private placement memorandum (PPM) serves as a comprehensive document outlining material details about the offering. A PPM is a securities disclosure document used by a company engaged in a private offering of securities
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What is the minimum investment in Sentinel Opportunity Fund I?The minimum investment for the Fund is $100,000.
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What tax form will I receive, and when can I expect it?You will receive a K-1 form. Although our goal is to finalize our K-1s by April 15 of each year, the Fund may be dependent upon outside reporting, or require additional time to furnish the forms, in which case you may be required to obtain one or more extensions for filing federal, state and local tax returns.
5940 S. Rainbow Blvd., Suite 400
Las Vegas, Nevada 89118
Investor Relations
Disclaimer
This presentation: (1) is solely for information purposes, (2) is confidential and may not be reproduced in whole or in part or distributed except by authorized representatives of Company described herein as Sentinel Opportunity Fund I (the “Company”); and (3) does not constitute an offer of, or an invitation to subscribe for or purchase, an interest in the Company and does not constitute investment or any other advice. The offering of interests may only be made through receipt of the Company’s definitive documentation including this presentation, the Private Placement Memorandum and Operating Agreement of the Company as well as the completion and acceptance by the Company or its manager of a subscription agreement for the purchase of an interest (the “Offering Documents”). For a discussion of the risks associated with an investment in the Company, prospective Investors should carefully review the Offering Documents, which describe the Company, including risk factors associated with the Company. Any decision to invest in the Company must be based solely upon the information set forth in the Offering Documents. Statements in this presentation that are not statements of historical fact contain forward looking information. Any such statements (“Statements”) inherently are subject to a variety of risks and uncertainties that could cause actual results or events to differ materially from those results or events predicted or anticipated by these Statements, including any results described herein. Accordingly, any potential investor in the interests should not rely on these Statements. These forward-looking Statements speak only as of the date of this presentation. The Company and its manager expressly disclaim any obligation or undertaking to update or revise any of the information provided in this presentation. Certain information contained in this presentation has been obtained from third-party sources other than the Company. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and neither the Company nor its affiliates take any responsibility for such information. No sale of interest will be made in any jurisdiction in which the offer, solicitation or sale is not authorized or to any person to whom it is unlawful to make the offer, solicitation or sale. In the case of any inconsistency between the descriptions or terms in this presentation and those contained in the Offering Documents, the descriptions or terms in the Offering Documents will control. The interests in the Company have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or any state or other securities laws, and will be offered and sold for investment only to qualifying investors pursuant to an exemption from the registration requirements of the U.S. Securities Act and in compliance with requirements of the U.S. Securities Act and in compliance with any applicable state or other securities laws. The Company will not be registered as an investment company under the U.S. Investment Company Act of 1940, as amended. The interests in the Company have not been recommended by any U.S. federal, state or non-U.S. securities commission or regulatory authority. Furthermore, the foregoing authorities have not confirmed the accuracy or determined the adequacy of this presentation. Any representation to the contrary is a criminal offense. No comment is made about the treatment for taxation purposes of payments or receipts in respect of the Company’s Class A Units. Each investor must seek such tax or other professional advice as it considers necessary. Prospective investors should inform themselves as to the legal requirements and tax consequences within the countries of their citizenship, residence, domicile and place of business with respect to the acquisition, holding or disposal of the Class A Units offered by the Offering Documents, and any foreign exchange restrictions that may be relevant thereto. Prospective investors should carefully read the Offering Documents in determining whether an investment in the Company is suitable. The Company’s investment program is speculative, and investors must be able to bear the loss of their entire investment in the Company.
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