Formed in August 2001, S-J Management LLC ("S-J") is the successor company to Jones & Murphy Incorporated ("JM"), a real estate investment, property management and brokerage company founded in 1972 by Winson Jones.
S-J is a privately held real estate investment company based in Seattle, Washington with an office also in Phoenix, Arizona. S-J is engaged in the business of acquiring, managing and selling larger multifamily properties. S-J conducts its business by forming and serving as one of the managing members for each of the separate limited liability companies that directly own the real estate acquired with funds of third party investors. Through formation of these various companies (comprised of accredited investors, certain profit sharing trusts, pension funds, and individual retirement accounts), S-J coordinates acquisitions and dispositions of large, upscale apartment projects ranging in size from 100-750 units located throughout Washington and Arizona. S-J also engages in property management and real estate brokerage services for the properties acquired and sold.
The objectives of each investment program are to:
(1) realize cash flow from rental operations that will permit quarterly cash distributions to Investor Members; and
(2) invest in multifamily rental properties that will provide year-to-year incremental gain in value to permit profitable resale within a four-year to six-year cycle.
Michael J. Sauter, S-J's chief executive officer, remains as vice president of JM and was instrumental in its rapid growth.
TRACK RECORD INFORMATION
During Mr. Sauter's association with Jones & Murphy and S J Management (1992 through the present), 45 programs have been formed to acquire 43 apartment projects and one office property. 34 programs have closed (the properties have been sold and entities subsequently dissolved), and 11 are ongoing. Of the 34 programs closed, the average return on investment has been 47% per year. Of the 7 programs closed in Arizona, the average return on investment has been 68%, or 57% per year. Properties have been acquired at an average cap rate of 7.65%, and sold at an average cap rate of 4.85%.
Recent acquisitions of properties in the Phoenix, Arizona area include the following:
Ventura Vista Apartments (170 units, acquired Jul '03)
Purchase Price: $14,300,000 Sales Price: $ 16,700,000
(Note: Sale completed May 16, 2005. Investor Profit = 40%)
Belaflora Apartments (180 units, acquired Apr '04)
Purchase Price: $16,100,000 Sales Price: $ 21,275,000
(Note: Sale completed February 28, 2006. Investor Profit = 86%)
Mandarina Apartments (180 units, acquired Feb '04)
Purchase Price: $15,475,000 Sales Price: $ 20,500,000
(Note: Sale completed April 10, 2006. Investor Profit = 60%)
Biltmore Lakes Office Project (22,749 square feet, acquired Aug '04)
Purchase Price: $4,200,000 Sales Price: $ 4,950,000
(Note: Sale completed August 20, 2005. Investor Profit = 30%)
Monterra Apartments (258 units, acquired Nov '04)
Purchase Price: $18,130,000 Sales Price: $ 22,075,000
(Note: Sale completed April 25, 2006. Investor Profit = 52%)
MonteViejo Apartments (480 units, acquired Sept '05)
Purchase Price: $50,500,000 Sales Price: $ 59,391,243
(Note: Sale completed February 2007. Investor Profit = 55%)
MonteVerde Apartments (435 units, acquired Dec '05)
Purchase Price: $47,000,000
Villas at Camelback Crossing Apartments (504 units, acquired Dec '05)
Purchase Price: $45,500,000 Sales Price: $ 62,750,000
(Note: Sale completed December 2006. Investor Profit = 185%)
San Ventura Apartments (272 units, acquired May '06)
Purchase Price: $33,000,000 Sales Price: $ 40,000,000
(Note: Sale completed May 2007. Investor Profit = 50%)
The Canyons Apartments (629 units, acquired June '06)
Purchase Price: $80,800,000
The Montana Apartments (134 units, acquired August '06)
Purchase Price: $15,710,000
Desert Mirage Apartments (258 units, acquired August '06)
Purchase Price: $34,382,245
The Springs at Alta Mesa Apartments (200 units, acquired September '06)
Purchase Price: $26,300,000
The Springs at Continental Ranch Apartments (196 units, acquired September '06)
Purchase Price: $21,864,000
Augusta Apartments (272 units, acquired November '06)
Purchase Price: $38,956,378
Sienna at Riverview Apartments (340 units, acquired February '07)
Purchase Price: $46,405,628
La Reserve Apartments (240 units, acquired April '07)
Purchase Price: $28,650,000
Bear Canyon Apartments (238 units, acquired June '07)
Purchase Price: $30,000,000
Retreat at Speedway Apartments (304 units, acquired July '07)
Purchase Price: $34,650,000
S-J Management LLC has over 3,500 apartment units under ownership and management, and has been involved in the management of apartment properties for over 35 years (including 28 years through its predecessor in interest, Jones & Murphy Incorporated). Additional Track Record information is available upon request.
MANAGEMENT PROFILE
Michael J. Sauter RPA
Chief Executive Officer
Michael J. Sauter, RPA
Michael J. Sauter, chief executive officer of S-J, formed the company in August 2001. As CEO, Mr. Sauter's duties include (a) formation of new real estate investment programs; (b) securing investment capital for said programs; (c) securing financing for those programs; (d) investor relations; (e) supervising corporate staff and field personnel; and (f) serving as S-J?s designated real estate broker.
Since 1992, Mr. Sauter has been instrumental in securing approximately $750 million in equity capital to complete the formation of multiple investment programs and subsequent acquisition of forty-one multifamily properties and one office building located throughout Washington and Arizona. From 1992 to February 2007, thirty-six properties have been sold resulting in the close-out of thirty-four investment programs.
Prior to his affiliation with JM, and subsequent formation of S-J in August 2001, Mr. Sauter was engaged for three years as an asset manager in the multifamily division of a large real estate investment firm based in Portland, Oregon. During that period, his activities centered on the acquisition and management of large, high-rise apartment buildings located in Seattle. Prior to this association, Mr. Sauter was employed in the asset management division of the Corporation of the Catholic Archdiocese of Seattle from the period from 1979 to 1989. His primary responsibilities included the acquisition and management of approximately two million square feet of non-profit, ?special-purpose? type real estate assets.
Mr. Sauter is a graduate of Seattle University, Institute of Real Estate Management (IREM), and Building Owners and Managers Institute (BOMI), having earned the Real Property Administrator (RPA) designation from BOMI in May 1992. He is a member of Seattle-King County Association of Realtors, National Multi Housing Council (NMHC), Arizona Multihousing Association (AMA), Seattle Chamber of Commerce, Phoenix Chamber of Commerce, Washington Multi-Housing Association (WMHA), Master Builders Association of King and Snohomish County (MBA), Rental Housing Association of Puget Sound (RHAPS), and Commercial Brokers Association (CBA). Mr. Sauter is also a featured speaker at various multi-housing conferences held each year throughout the country.
Mr. Sauter is a licensed real estate broker in Washington and Arizona, and serves as the designated broker for S-J. Mr. Sauter is also a frequent contributor to certain market research data compiled and analyzed by Dupre + Scott and Real Data, Inc., publishers of apartment industry market data in Washington and Arizona, respectively.
Steven R. De La Vergne, CPA
Chief Financial Officer
Steven R. De La Vergne
Steven R. De La Vergne joined S-J in May of 2007 as Chief Financial Officer. His duties include (a) financial reporting to investors; (b) implementation and control of accounting and computer systems; (c) annual budget modeling and reporting; and (d) pro forma forecasting and analysis of prospective projects.
Mr. De La Vergne earned his certification as a Certified Public Accountant in 1986. His 15 years in public accounting includes several in the Seattle office of Ernst & Young International, LLP, a global public accounting firm. During his tenure in public accounting, Mr. De La Vergne was assigned to work on a variety of audit, tax, and consulting engagements the most notable of which, was serving as a Supervisory Senior Accountant in the tax department of Ernst & Young's Entrepreneurial Services Group (ESG). For several years Mr. De La Vergne also owned his own local CPA firm in the Pacific Northwest. His clients included the largest cedar sawmill operations on the west coast of the USA and large property holders in Whatcom County, Washington.
In the private business sector he has years of experience operating his own businesses which include manufacturing, wholesaling, and retailing industries where customer service was of primary importance. Prior to joining S-J he served as Chief Administrative Officer of a global technology software company based in Redmond, WA.
Mr. De La Vergne is a 1981 graduate of Central Washington University obtaining a B.S. degree in Accounting with an emphasis in Information Services. Graduate studies were at Golden Gate University - Seattle, where he completed the Masters in Taxation program, with additional non-degreed tax classes. He is a member of the American Institute of Certified Public Accountants, and is a licensed real estate salesperson in Washington State.
