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Juniper Investment Group, Ltd. was founded by J. Douglas Rippeto, Jr. to purchase class B and C multi-family properties throughout the Sunbelt area of the country that present a value-added investment opportunity.
The objectives of Juniper Investment Group are to provide investors with superior returns by achieving significant cash flow and capital appreciation and to do so with low risk relative to other real estate and equity investments.
Juniper targets multi-family investments, which are expected to produce at least an 18% internal rate of return to the investors.
Thank you for your interest in Juniper Investment Group, Ltd. I invite you to review our experience and performance history contained herin and to contact us with any questions you may have.
Juniper Investment Group was founded by J. Douglas Rippeto, Jr. in April 2000 to purchase class B and C multi-family properties in Houston, Texas and other Sunbelt areas that present a value-added investment opportunity. Since forming Juniper, Mr. Rippeto has closed 11 multi-family acquisitions totaling 3,401 units and approximately $83.5 million in total cost.
Mr. Rippeto is a seasoned professional with 10 years of industry experience in commercial real estate debt and equity investments. From 1997 to 1999, Mr. Rippeto was a senior member of the real estate acquisition, underwriting, and asset management team at Fortress Investment Group, a New York based real estate investment firm with approximately $1 billion in assets under management at the time. Mr. Rippeto possesses expertise in financial structuring and analysis, as well as in property underwriting and asset management.
Mr. Rippeto formed the firm to take advantage of the opportunities that still exist in the non-institutional grade class B and C multi-family investment market. Currently, the majority of multi-family markets have softened after a prolonged period of occupancy and rental rate growth. In this climate, Mr. Rippeto believes that to achieve returns of 18% or greater (the targeted return), investors must truly rely on their investment manager's ability to outperform the market. This offers investors the ability to capitalize on Mr. Rippeto's formula for success in this environment: an excellent transaction origination network; a disciplined and consistent underwriting process; sophisticated structured finance and capital markets skills; and an excellent long-term relationship with an outstanding property management firm.
Mr. Rippeto believes that this investment opportunity consists of both structural and non-structural factors. Structural factors include rental rates well below those necessary to justify new construction, favorable demographic growth in the blue-collar sector of several regional economies, and lower cash flow volatility than other major commercial real estate asset classes. Non-structural elements include a lack of consistent high quality property management and limited availability of capital. Mr. Rippeto believes that the immediate availability of equity capital will afford Juniper the flexibility and resources to exploit these structural and non-structural elements.
Juniper's business plan was inspired and derived from the success of The Compass Group ("Compass"), a Hilton Head, South Carolina based real estate investment firm owned by J. Douglas Rippeto, Mr. Rippeto's father. Mr. Rippeto's father started Compass in 1971, and from 1971 to 1986 was engaged primarily in structuring transactions to purchase garden style apartments to provide tax shelters to high net worth individuals. During that time, Compass organized and syndicated over 40 limited partnerships owning 7,000 units in Texas, Indiana, Oklahoma, Arkansas, Alabama and Florida. Since 1992, Compass has focused on acquiring class B and C multi-family properties utilizing its own capital. Currently, Compass controls approximately 4,000 units, primarily in Texas. Juniper Investment Group is now Mr. Rippeto's father's primary multi-family real estate investment vehicle, with Compass' future multi-family activity mostly limited to tax driven exchange transactions.
Juniper's multi-family assets are managed by First Choice Management Group, Inc. headquartered in San Antonio, Texas, with a regional office in Houston. Susan Choice, the founder of First Choice, has been the exclusive property manager for Compass for over 16 years. First Choice currently manages approximately 8,700 units in Texas, Oklahoma, Indiana, and Alabama, of which either Juniper or Compass controls approximately 80%, and will provide both on-site property and construction management services for investments made by Juniper. In addition, the senior managers of First Choice have completed numerous renovations and repositionings in their 25 years as apartment managers. Mr. Rippeto believes effective property management and the ability to execute business plans, as First Choice has done in the past, will continue to be key elements in the Fund's success. First Choice has consistently outperformed its peers by aggressively managing both income and expenses, and providing institutional quality service to both their owner clients and their tenant customers.
Juniper Investment Group, Ltd., is owned by J. Douglas Rippeto, Jr. Mr. Rippeto is responsible for all asset management decisions; he directs First Choice and other real estate professionals in the implementation of the companies disciplined investment process.
Below is a biography of Mr. Rippeto, along with a summary of specific transaction experience.
President of Juniper Investment Group, Inc
J. Douglas Rippeto, Jr. is the President of Juniper Investment Group, Ltd. Mr. Rippeto co-founded Juniper with a previous partner in April 2000. Previously, Mr. Rippeto was a Vice President and Co-Head of Real Estate Asset Management and Underwriting for Fortress Investment Group, a New York based real estate investment firm with approximately $1 billion in assets under management at that time. Fortress was founded in 1998 by the former principals of the Global Principal Finance Group at the Union Bank of Switzerland, who had also sponsored Black Rock Asset Investors ("BAI"), a real estate and mortgage debt opportunity fund, founded in 1995. Mr. Rippeto's role with both Fortress and UBS was to manage and perform the commercial real estate due diligence for potential new investments and to asset manage per the agreed upon business plan following acquisition. Mr. Rippeto also supervised numerous outside professionals in the negotiating, acquiring, disposing, and foreclosing of assets. During his time at Fortress, commercial real estate assets averaged approximately $1 billion, as Fortress also managed the liquidation of the BAI fund. The commercial assets ranged from direct property investments to performing and distressed mortgages, real estate owned through foreclosure, and commercial mortgage-backed securities.
Prior to joining UBS, Mr. Rippeto was a Vice President and the lead real estate underwriter at Cheslock, Bakker & Associates ("CBA"), a Stamford, Connecticut based real estate merchant bank specializing in both commercial mortgage-backed securities and direct equity investments. Mr. Rippeto has also worked for the Chase Manhattan Bank as an Associate in their Commercial Real Estate Department, specializing in distressed loan workouts, and for JMB Properties Company as a Property Manager in their office building property management division.
Additionally, from 1997 until founding Juniper, Mr. Rippeto was been an Acquisitions Consultant for Compass. In this role, he developed an extensive origination network and presented numerous investment opportunities to Compass. During this period, Mr. Rippeto and his father acquired four properties totaling $18.25 million in total cost.
Mr. Rippeto received a B.A. with a double major in History and Political Science from Vanderbilt University in 1989, and an M.B.A. from Cornell University's Johnson Graduate School of Management in 1993. Mr. Rippeto is married with four children and resides in Houston, Texas.
Selected Transactions:
2003 The Pointe Apartments is a 517 unit property in Pasadena, Texas that was acquired by a Juniper sponsored partnership in May 2003. Having been under contract and under First Choice's management since the summer of 2002, occupancy increased from the mid 60% range to 86% when the transaction was completed. Juniper believes that with First Choice's management expertise, a planned rehabilitation, and the success of two nearby Juniper properties (Parkside Place and Park on Vista), will result in a successful investment for Juniper and its investors.
2003 Fountain Oaks Apartments is a 265 unit property in southwest Houston, Texas that was acquired by a Juniper sponsored partnership in February 2003. Juniper believes that with moderate and readily attainable rent increases and the implementation of tenant water expense reimbursement, the property will deliver an excellent IRR to investors over the anticipated seven year hold period. In addition, investors will benefit during the first two years of ownership from the approximately $394,000 of low income tax credits associated with the property.
2003 Cedar Bluff is a 105 unit property in Pasadena, TX that was acquired by a Juniper sponsored investor group in June 2003. This property was in poor physical condition and only 70% occupied when acquired, but presented an extremely attractive investment opportunity through increased occupancy and rent increases after a planned $350,000 renovation project.
2003 Stone Oak Place is a 252 unit property in San Antonio, TX that was acquired by a Juniper sponsored partnership in July 2002. This investment presented a value-add opportunity through implementing a RUBS program and increased rents after interior and exterior upgrades. This property represents Juniper’s first investment in San Antonio; however, First Choice is based in San Antonio and Compass has had investments in San Antonio for over 30 years.
2002 Timber Ridge Apartments is a 704 unit east Houston, Texas property that was acquired by a Juniper sponsored entity in April 2002. The property was well occupied, but presented a value-add opportunity by increasing rents after completing an exterior refurbishment. The refurbishment was completed in early 2003, the property was refinanced resulting in a return of approximately 75% of the initial equity capital.
2002 Park on Vista Apartments is a 108 unit property located in the Pasadena section of southeastern Houston that was acquired by a Juniper sponsored partnership. At the time of the purchase, the property was well occupied, but in poor physical condition. The in-place rents averaged $.55 per square foot per month. Juniper and First Choice completed an interior and exterior renovation, and the property now has average rents of approximately $.62 per square foot per month. In June 2003, the property was refinanced resulting in a return of 100% of the initial equity capital.
2001 Parkside Place Apartments is a 319 unit Pasadena/southeast Houston property that was acquired by a Juniper sponsored partnership in December 2001. The property was approximately 80% occupied at closing with average rents of $0.545 per square foot per month. The unit interiors were in poor condition and the exterior and building systems required substantial work, as well. Juniper and First Choice have completed a substantial renovation in 2002. The property currently has average rents of $0.572 per square foot per month. In March 2003, the property was refinanced resulting in a return of approximately 55% of the initial equity capital.
2000 Huntington Glen Apartments is a 364 unit apartment complex in Houston acquired by a Juniper sponsored investor group in August 2000. Juniper and First Choice has completed an exterior renovation of the property in 2000. The property has generated a cash-on-cash return of approximately 9% since acquisition. The property was sold in February 2003. The sale resulted in an internal rate of return in excess of 30% over the investment term. The projected return on the investment after the sale is 30%.
2000 Cedar Forest Apartments is a 184 unit apartment complex acquired by a Juniper sponsored investor group in May 2000. Juniper and First Choice completed a major renovation of the property in 2000 and early 2001. In November 2001, Juniper refinanced the property, this transaction provided the investors a full return of their original equity investment.
1999 Braes Hollow Apartments is a 254-unit apartment complex in Houston acquired by a Compass sponsored partnership in September 1999. At the time of the purchase, the property was 91% occupied, with current rent of $0.50 per square foot per month. On behalf of the partnership, First Choice has completed a $1 million interior and exterior renovation. The current rents are $0.66 per square foot per month. In May 2002, the partnership refinanced the property. The refinance provided a full return of the original equity investment.
1998 Stoneriver Apartments is a 324-unit apartment complex in Houston, Texas that was acquired by a Compass sponsored partnership in January 1998. At that time, the property was approximately 72% occupied, offered rents of approximately $0.41 per square foot per month. First Choice completed an approximately $1.75 million interior and exterior renovation of the property. In September 1999, the partnership refinanced the property. This transaction resulted in a full return of the partnership initial investment and an additional proceeds of approximately $1.5 million.
1997 Briar Pointe Apartments is a 259-unit apartment complex in Wharton, Texas that Compass acquired in November 1997. At the time of the acquisition by Compass partnership, the property was approximately 70% occupied, offered rents of approximately $0.48 per square foot per month. In 1998, First Choice completed a $750,000 interior and exterior renovation of the property. In July 2002, the property was sold. The net sale proceeds combined with operating cash flow since deal inception provided the Compass partnership with a total return of approximately 35%.
1997 Town Square Apartments is a $19 million development of a 192-unit luxury mid-rise apartment complex in Bellevue, Washington. Mr. Rippeto, on behalf of a CBA-led investment group, negotiated a pre-sale of the property to a Los Angeles based owner of corporate housing for $24.6 million.
1996 In the Pines Apartments is a 264-unit class B apartment complex in Augusta, Georgia that was acquired by a CBA sponsored investor group for $7.8 million. The property was sold in July 1998, after Mr. Rippeto's departure from CBA, for $8.8 million.
1999 Impac Commercial Holdings: Acquisition of the external manager and a $10 million preferred stock investment in this distressed mortgage REIT. Managed the subsequent liquidation of their performing and non-performing commercial loan portfolio and real estate owned.
1997-99 Government Leased Property Acquisition Program: Acquisition of fourteen (14) office buildings and one distribution facility in individual transactions totaling approximately $500 million over a two year period. All the properties were leased to the General Services Administration on behalf of various departments of the United States federal government.
1999 Chrysler REO Portfolio Liquidation: Conducted a $10 million sale of the 25 small balance assets remaining in a real estate owned portfolio originally acquired by the BAI fund.
1998 Performing Loan Portfolio Sale: Conducted a $55 million performing loan sale on behalf of Fortress.
1996 Allright Parking: $271.7 million leveraged buyout and acquisition of the largest parking company in North America (at the time) by CBA and two institutional partners. The company was sold to Central Parking in an all-stock transaction valued at $585 million in April 1999.
1995 Securitization of Multi-Family Mortgage Portfolio: $40 million mortgage loan origination secured by 10 Low Income Housing Tax Credit properties located throughout the southeast United States. This mortgage portfolio was combined with another lender's portfolio and securitized in a $78 million commercial mortgage-backed security ("CMBS") issuance. CBA originated the loans, issued the senior bonds, and purchased the junior bonds. Senior bond distribution was done by CS First Boston. Later CBA sold an additional $17 million, three property, mortgage portfolio to a major credit company.
Here is a list of our most frequently asked questions:
"What does it mean to be an Accredited Investor?"
What does it mean to be an Accredited Investor?
To invest with Juniper, it is required that you are an Accredited Investor. Accredited Investor is a term defined under Rule 501(a) of Regulation D by virtue of coming within any of the following categories:
(1) Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000;
(2) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;
(3) Any bank as defined in Section 3(a)(2) of the Act or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity;
(4) Any broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;
(5) Any insurance company as defined in Section 2(13) of the Act;
(6) Any investment company registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), or a business development company as defined in Section 2(a)(48) of the Investment Company Act;
(7) Any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;
(8) Any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
(9) Any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (“ERISA”) if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
(10) Any private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;
(11) Any organization described in Section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, partnership or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;
(12) Any director, executive officer, or general partner of the Partnership, or any director, executive officer or general partner of a general partner of the Partnership;
(13) Any trust, with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment; or
(14) Any entity in which all of the equity owners are accredited investors.
First Choice Management Group, Inc. is the exclusive property manager for all of our multi-family investments. First Choice was founded in April 1992, by Susan Choice, combining the talents of property management and accounting personnel who had worked together previously for over seven years. Establishing a reputation of responsive and high quality service to a number of long-term clients, the company has key management personnel who have worked together for over 16 years. Excluding on-site personnel, First Choice employs 16 people, including 6 Property Managers and 3 accounting. Additionally, Ms. Choice's son, William, is the Vice President of Operations and manager of the Houston regional office, as well as the Property Manager for four assets. First Choice Management Group's dedication to the service of its tenants and owner/clients has earned it the designation as an AMO™, ACCREDITED MANAGEMENT ORGANIZATION™, by the Institute of Real Estate Management ("IREM").
The client base of First Choice is comprised of real estate investors who depend heavily on the comprehensive, personal and consistent service provided by highly trained professionals including Certified Property Managers and Accredited Residential Managers, as designated by IREM. Client experience includes institutions, private and public syndicators and individual owners with portfolios in a variety of markets.
Susan Choice, is the President, CEO, and sole owner of First Choice Management Group. Prior to forming First Choice, Ms. Choice was Vice President and head of the multi-family division of Compass Property Management. That firm is a San Antonio based management company originally owned by Compass, but was sold to the senior managers of that company in 1983. Her responsibilities during the seven years she held this position included supervision of up to six property managers, as well as the marketing director and the corporate administrative staff. She and her staff supervised over 9,000 multi-family units in five states. Ms. Choice's primary role was coordinating procedures and serving as liaison between owners and the department. Having overall responsibility for owner relations, property operations, property marketing and new business development, Ms. Choice formulated and monitored policies and procedures for both corporate and on-site employees and was an integral part of the corporate executive committee. Prior to becoming the department head, Ms. Choice was a Senior Property Manager with Compass Property Management.
Prior to joining Compass Property Management, Ms. Choice worked for a small owner operated management organization and with the management company of a savings and loan funded development company as a property manager. Ms. Choice began her real estate career in 1978 with a growing Austin, Texas based management company, initially responsible for supervising 100 houses and duplexes owned by multiple clients. She later became a senior property manager, supervising over 2,000 units in multiple locations in 1981. These projects included older, distressed assets with extensive rehabilitation programs, as well as new construction developments requiring initial planning, marketing, and lease-up.
Ms. Choice holds a Bachelor of Arts degree with honors from the University of Texas, Austin, with majors in English and History. She is a licensed Texas and Oklahoma real estate broker and CCIM (Certified Commercial Investment Manager) designee, a Certified Property Manager™(CPM™), and is a Past President of the San Antonio Chapter of IREM and a recipient of the CPM™ of the Year award by San Antonio Chapter 48. She serves on three national IREM committees, the Board of Directors of Texas, the National Apartment Association and San Antonio Apartment Associations, of which she is a Past President.
The following is a list of properties currently managed by First Choice:
Property Name Units Location Owner/Sponsor
Cedar Bluff 105 Pasadena, TX Juniper Investment Group, Ltd.
Cedar Forest 184 Houston, TX Juniper Investment Group, Ltd.
Fountain Oaks 265 Houston, TX Juniper Investment Group, Ltd.
St. Andrews Place 313 Houston, TX Juniper Investment Group, Ltd.
Parkside Place 316 Pasadena, TX Juniper Investment Group, Ltd.
Park on Vista 108 Pasadena, TX Juniper Investment Group, Ltd.
The Pointe 517 Pasadena, TX Juniper Investment Group, Ltd.
Stone Oak Place 352 San Antonio, TX Juniper Investment Group, Ltd.
Timber Ridge 704 Houston, TX Juniper Investment Group, Ltd.
Williamstown 272 Houston, TX Juniper Investment Group, Ltd.
Braes Hollow 254 Houston, TX The Compass Group, Inc
Country Place 212 Bryan, TX The Compass Group, Inc.
Edgewood 386 Houston, TX The Compass Group, Inc.
Grandon Manor 144 Killeen, TX The Compass Group, Inc.
Gruenwood Villa 80 New Braunfels, TX The Compass Group, Inc.
Lands End 194 Portland, TX The Compass Group, Inc.
Plaza Square 193 San Angelo, TX The Compass Group, Inc.
Raintree Meadows 216 Midwest City, OK The Compass Group, Inc.
Riverchase 252 Oklahoma City, OK The Compass Group, Inc.
Royal Palms 48 Portland, TX The Compass Group, Inc.
Sands Point 495 Houston, TX The Compass Group, Inc.
Southern Oaks 224 Mobile, AL The Compass Group, Inc.
Stoneriver 324 Houston, TX The Compass Group, Inc.
Summerview 244 San Antonio, TX The Compass Group, Inc.
Summit Oaks 152 San Antonio, TX The Compass Group, Inc.
Sunset I & II 256 San Angelo, TX The Compass Group, Inc.
The Village 120 Temple, TX The Compass Group, Inc.
Village Square 204 Lafayette, IN The Compass Group, Inc.
Sub-Total 7,035
Other properties managed by 1st Choice on behalf of other ownners.
Property Name Units Location Owner/Sponsor
Bellaire 200 San Antonio, TX Mid-Continental Inc.
Cenzio Flats 150 San Antonio, TX local investor group
Hammerly Villa 174 Houston, TX Newport Asset Management
Highland Hills 275 San Antonio, TX Mid-Continental Inc.
Hunter's Ridge 81 San Antonio, TX Mid-Continental Inc.
Meadowcrest 178 San Antonio, TX local investor group
Parkview Village 224 Houston, TX Newport Asset Management
Pollyanna 176 San Antonio, TX Mid-Continental Inc.
Sycamore Creek 200 San Antonio, TX Mid-Continental Inc.
Sub-Total 1,658
TOTAL 9,017 units under management
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