INVESTORS

FIRST

OUR BUSINESS Tandem Assets 1 LP was created to provide Canadians with the opportunity to participate in the time tested investment of commercial real estate which has proven to be a profitable, long term investment vehicle. We focus on acquiring existing, income producing niche size assets that are too large for individuals but too small for larger players - creating less competition, better pricing, and potentially stronger returns for investors.

THE PLAN The Tandem Management team will focus on sourcing and purchasing properties that are undervalued and/or undermanaged in markets located in municipal centres within North America. These properties must have a sufficient asset value to allow for profitable operations over a 5 year term, show promise for potential growth and be able to provide for continued financing of additional properties in the process. By using building blocks of proper research, due diligence, and professional management, a superior real estate investment program can be developed. Capitalizing on over 60 years of combined real estate investment experience provides the Tandem Management team with the foresight needed to evaluate and determine the next offering.
KEY FACTORS

INVESTMENT
PHILOSOPHY
Capital Preservation
Through Acquisition Of Existing Income Producing Assets in Resilient Markets

Mismanaged, undervalued or underutilized Potential to increase in current value, and improve in marketability Alignment with current market trends for refinancing Foreseeable future value The Tandem Management team have proven through past transactions that with proper management, a property investment can increase in value. Incorporating a series of systematic techniques in the right measure have been the backbone to success. Repositioning in the marketplace Capital improvements Re-negotiating leases Restructuring & Refinancing Strategic renovations Re-branding Change of use Re-leasing

Dened Terms
Fixed Monthly Income Fixed Time Frame

Alignment
Investors Are Paid First Upon Exit Investors Are First To Receive Return Of Capital

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

Under $2M

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

[ ]
Between $2M-$10M

TANDEM Assets 1 LP

Over $10M

Significantly less competition for real estate assets

3 MAJOR PROFIT CENTRES

MORTGAGE PAY DOWN Each month significant dollars are contributed to reduce the principal of the mortgage

MONTHLY INCOME Acquire assets that are currently returning 8-9% per annum in income

MARKET APPRECIATION Through diligent management and proven market appreciation, niche commercial assets often increase 5-7% per annum

n atio reci p p A ket Mar Down ge Pay Mortga Monthly Income

POTENTIAL PROFIT

T TIIM ME EH HO OR RIIZ ZO ON N

PARTICIPATE IN AN ASSET CLASS THAT HAS A PROVEN HISTORY

Why OMERS is changing gears from public to private market assets.
The principal reason it was done was to reduce our exposure to the volatility of the capital markets, especially public equity. The second reason was to acquire assets that would give us a predictable as possible long-term cash returns to fund the pension plan.
- Michael Nobrega, President and CEO of OMERS (Ontario Municipal Employees Retirement System)

INVESTORS

F IRST

Better fit for the long view and relatively risk-averse tastes.
Private equity, real estate and infrastructure are a better fit for the long view and relatively risk-averse tastes of CPPIB. We believe that private equity assets can produce risk-weighted returns that will outperform public equities in the long run.
- Mark Wiseman CEO of CPPIB (Canada Pension Plan Investment Board)

Targeted 12%*Annualized Return

R Investors Are Paid First R Investors Receive Return Of Capital First R Investment Is Asset Backed R RRSP & TFSA Eligible R 5 Year Term R $10,000 Minimum

70
*Until

OF THE PROFITS

Monthly Cashflow 5 Year Term Asset Backed

then 50% of the profits until partnership is exited.

a 12% annualized return is realized

ASSET MIX
COMMERCIAL CENTRES Essential Services Tenants Reputable Anchor Tenants Longer Term Leases With Rental Increases Established Triple Net Leases (NNN) SHORT TERM LENDING Capitalize On Short Term Professional Lending Opportunities Secure The Partnership In A Mortgage Position Create Liquidity Within The Partnership
PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

RISK MITIGATION
TRIPLE NET LEASES

NNN means that tenants pay property taxes, property management, insurance, repairs and utilities
MULTIPLE EXIT STRATEGIES

To create liquidity within the offering, management is able to position assets for sale or refinance in a variety of ways to maximize returns for investors
ROBUST DUE DILIGENCE

100s of hours are invested in researching each asset to ensure the acquisition is a fit for the portfolio
MULTIPLE TENANTS

VALUE IMPLEMENTATION PROCESS

When assessing a potential property for purchase, our management team looks for ways to add value to the acquisition. Some of the most common value adds include: Repositioning In The Marketplace Capital Improvements Re-Negotiating Leases Restructuring & Refinancing Finding Efficiencies And Reducing Expenses Strategic Renovations Re-Branding Change Of Use Re-Leasing

This ensures assets to consistently perform regardless if fluctuations in vacancy levels occur
EXPERIENCED MANAGEMENT TEAM

Over 60 Years of Combined Experience Over $100M Dollars in Real Estate Transactions Proven Management Track Record
EXISTING INCOME PRODUCTION

BUSINESS PLAN
Monetize & Maximize Assets Throughout Term Acquire Performing Niche Sized Assets Year 1

4 3
Liquidation & Exit Years 4-5

Assets purchased have strong existing income substantially reducing risk

SIZE OF OFFERING

Implement Value Creation Process Years 1-3

As the assets under management will likely not exceed $30M, management can move much faster to capitalize on opportunities or liquidate a position to reduce risk while maintaining operational size efficiencies of larger offerings

IDENTIFYING OPPORTUNITY
Due diligence on a micro-economic and macro-economic level are key in determining a property of interest. M I C R O - E C O N O M I C S
APPRAISAL

MACRO-ECONOMICS
NET MIGRATION

n Propertys worth? n How has it been assessed?

n Areas population trends? n Are there more people arriving

(Direct comparison, Income or Cost Approach )

or departing?

INDUSTRY

ZONING

n How is the property being used? n Is it the best use? n Are there limitations against future

n Areas major industries? n Who are the major employers

and how much of the job market do they represent? current major employers?

improvements/additions?

n What are the future prospects for n What other businesses are

FINANCING

n How is this property going to be

purchased? purchase?

locating/relocating in the area?

n How will lenders view this

ENVIRONMENTAL REPORT

n Are there any current

Tandem Assets 1 LP understands what economic forces are driving the areas that we invest in.
We need look no further than Detroit and the automotive industry as an unfortunate example of rapidly changing economic circumstances. In contrast, various cities throughout North America have clearly led the way in growth with new or renewed industry activity.

environmental concerns?

n What is the history of the property?

ENGINEERING REPORT

n What is the condition of the

existing building or buildings?

n What is the structural integrity?

SITE SURVEY/ REAL PROPERTY REPORT

n Are there any easements

TRANSPORTATION

registered on the property? Tandem appraises the asset to determine its current value, and evaluates where it could be in the future.

n How accessible is the area? n Are there any infrastructure

expansion plans pending?

GOVERNMENT

n How easy/difficult is it to do

business?

n How do taxes for businesses

compare to other areas?

MOVING IN TANDEM
WITH INVESTORS
INVESTORS FIRST Investors are paid first throughout the whole term of the offering. Investors are also first to receive 100% of their capital back upon exit. TRUE ALIGNMENT Management compensation is heavily based on success of investors.

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.

Funds Institute of C M A N G EMENT MONEY an ad a;A th n. e am ount in exchan e-t FIRST IN, LA S T Og U T raded ozen domestic In addition to managing the inancial Corp., ETF players combined $ 61-billio In ve partnership, st o rs Group itself the Tandem he country. and other firmn as of a Management team will also s be owned her out of igno investing in the same ownership nce or inertia, ate itemized b ra its cu structure (Class A st Units) om as investors. ill s. To me, th is is like stickiners seem content Although management will hold g wit h th e horse identical shares to investors, the industry to them they will not exit until all the asid ds with just on brush e. La st w eeks Canadian e to ke n aw ar d going to unny, weve ne investors exit first. Sco ver seen an award for com tia iTrade and mission-less hange in consu mer attitudes to fees and the dramatic w about them , the more Can miliar with ETFs ad . But once they ians learn about ETFs, the % would use th learn about th em. eir benefits m about fees in the past six m adian dividend mutual funds onths than in the past 20 with 2.7% MER s, they omers arent ir ate about the first 1%, Chilto n ASSET BAC K sa E ys D . They ealth creation. Investors collectively own the limited This lack of pri orld, according ce sensi tivity the was income owns to a study by which exploited ion to lower fe partnership Harvard Universassets. es as itys Peter producing a result. real estate

Tandem Assets 1 LP expects to ultimately hold a $25-30m dollar portfolio of income producing real estate assets for a select few investors. This is an ideal size for an offering as it allows management to focus closely on the assets it has under management and be exible enough to acquire, sell or reposition assets in a changing marketplace.
STEVE FROESE, VP ACQUISITIONS TANDEM ASSETS 1 LP

MANAGEMENT TEAM

K E V I N

Z I O L K O S K I

DIRECTOR & CHIEF EXECUTIVE OFFICER

From overseeing $345M worth of contractual spending, or raising over several million dollars in capital for private real estate opportunities across North America, Mr. Ziolkoski understands money and how it can

The founders of Tandem Assets 1 LP collectively have over 60 years of combined experience, catalyzing well over $100M dollars in real estate transactions, developments, financings, and best use restorations.

best be used. In 2010, Mr. Ziolkoski became a managing partner of Blueprint Global Partners.

M A R C I N
PRESIDENT

D R O Z D Z

Mr. Drozdz is a consistent top performer in the Exempt Market space and a respected advocate for investor and advisor education in the field of Alternative Investments. He is a Mentor, a Board Member with CREIC (Canada Real Estate Investors Club), a Director and a Board member with the National Exempt Market Association (NEMA) and is also the Chief Strategic Officer for Blueprint Global Partners.

S T E V E

F R O E S E

DIRECTOR & VICE-PRESIDENT, ACQUISITIONS

Mr. Froese has over 20 years of experience in residential and commercial real estate. He is a co-founder and partner in Alta Pacific Mortgage Investment Corp., a company that administers a $25M mortgage portfolio, and Dominion Properties; a company that owns and manages a real estate portfolio of over 500,000 sq. ft. of mixed retail and office space.

R O Y
Mr.

W I E B E
has extensive experience in development and

VICE-PRESIDENT, OPERATIONS

Wiebe

management, along with owning and co-owning of commercial and residential real estate in Western Canada and the United States. He has successfully built and exited several multimillion dollar businesses ranging from agriculture to the oil service industry making him a key resource in evaluating market potential.

B R A D

U N R A U

VICE-PRESIDENT, BUSINESS DEVELOPMENT

Mr. Unrau has been a CREA licensed Realtor in British Columbia since 1994. He is also a licensed mortgage broker and can be found among the top 2% of licensed mortgage brokers in Dominion Lending Centres. His extensive experience in the acquisition, financing and management of residential and commercial real estate in British Columbia and Alberta guides him towards seeking new opportunities.

Management of Tandem Assets has over 60 years of combined experience. Members of the management team own over 500,000 sq. ft. of commercial real estate and are personally invested in every offering brought forth. Each member of the team offers unique traits and skill sets. Utilizing this collective knowledge, the management team is able to source key opportunities within the North American marketplace.

The portfolio of real estate properties may include: multiplexes, apartment buildings, mixed use commercial/ residential buildings and undeveloped parcels of land located in municipal centres within North America. The current focus is Western Canada and South Western United States where can be found some of todays greatest, stable growth potential.

INVESTORS FIRST

THIS IS NOT A SOLICITATION TO SELL SECURITIES. THIS ADVERTISEMENT IS QUALIFIED BY THE INFORMATION CONTAINED IN THE APPLICABLE OFFERING MEMORANDUM OF TANDEM ASSETS 1 LP. THERE ARE RISKS ASSOCIATED WITH THIS INVESTMENT. ACTUAL RESULTS MAY VARY SIGNIFICANTLY FROM PROJECTED RESULTS. CONSULT YOUR OWN TAX AND INVESTMENT ADVISORS.

www.TandemAssets.com

PICTURES USED ARE FOR ILLUSTRATIVE PURPOSES ONLY AND DO NOT REPRESENT AN ACTUAL INVESTMENT WITHIN TANDEM ASSETS 1 LIMITED PARTNERSHIP.