About APPA

APEX Pacific Partners Advisors, LLC (“APPA”) is based in Los Angeles, California and Dallas, TX, and is a company established as a commercial real estate investment partnership, which operates in the western United States. The partnership is a joint venture between Pilot Capital Investments, LLC, whose principal is Rei Umekubo, and Cardinal GenPar, LLC, whose principal is Subash Kolluru.

APPA considers a property as a cash flow waterfall made up of individual cash flow streams. Our goal in valuation of an existing property is to classify those individual cash flow streams according to their characteristics and discount each stream appropriately. Some general criteria we use in classification include:

Our Values

Quality

Generally, leases have higher quality when they are: older vintage, longer tenure, negative rent spread to market rent, consistent uses (uses that don’t quickly need much more or much less space), and persistent uses (uses that see customers or vendors on a regular basis).

Elasticity

Leases are more valuable when they are rent elastic versus rent inelastic. An example would be a shorter-term lease with adjustable rent versus a long-term fixed rent. This gives management more opportunity to increase the top line in most instances.

Concentration

Less concentration is more valuable. We would prefer to have more diverse sources of rental income with more diverse lease maturities. Having this diversity enables profitability to be more consistent regardless of economic scenarios.

“Cradle-to-Grave” Investment and Management Philosophy

APPA’s success is measured directly by the effort we bring to the investment from the start of the acquisition process throughout the holding period, until the final execution of the asset’s sale disposition date. We believe in a “hands-on” approach, by going, seeing and doing ourselves, rather than merely relying on other firms’ data or reports. Whether it is an initial property inspection or serious maintenance issue or an analysis of a competitive property, we do not make judgments from third-party opinions until we go and see the asset. The two principals of APPA are involved through-out all facets of the investment process and are actively involved until the final sale of the asset to ensure optimum and maximum return to the investors.