BUILDING FOR THE GREAT AMERICAN MIGRATION

In a time where most people with any level of affluence are actively seeking residence in small, rural, lifestyle-driven markets, Fortius Capital remains bullish on the ‘migration opportunity’, and the associated growth and impact on various asset classes across mountain markets.

People

People are coming to the mountains to live now, not just vacation. For the first time since 2008, local Colorado real estate is seeing multiple offers above ask at all price levels from $500,000 – $20MM+.

Economic

In 2020, we’ve witnessed economic uncertainty quickly change course to economic opportunity. Many mountain retailers in Vail Valley, for example, experienced a 30% revenue increase in Summer 2020.

Residential

The mountain residential market is white hot, with buyers coming from major metropolitan areas. Aspen School District has a record level of new enrollments for the 2020 school year, and Vail Mountain School has its longest waiting list in school history; highlighting an influx of migrators.

Commercial

Office is softening for medium to large blocks, but strengthening for small spaces in Colorado. Retail outlook is unclear, but remained surprisingly resilient through the summer. Several large entitled and un-entitled land deals show strong demand for raw, development land. Additionally, the increased owner usage from “The Great American Migration” should positively impact restaurant, retail and small office demand.

Industrial

Industrial and Flex trading are peaking with very low inventory and increased demand. With the recent two week-long closure of Glenwood Canyon in Colorado, for instance, more distributors are looking for options in the mountains given the uncertainty of road conditions and the high demand for both local companies and out-of-region suppliers.

Uncertainty to Opportunity.

As the year 2020 continues to shape our lives, businesses and investment future, we look to position ourselves and partners appropriately; becoming long term beneficiaries of massive market shifts.
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Residential

Distressed subdivisions and multi-family workforce rentals will continue to shape the core of our scalable, low-risk, high-yielding portfolio. Fortius Capital’s full-service project sales team serves as a localized resource for anything living, playing and working in mountain markets. Our team consists of experts in the neighborhoods and developments throughout the communities we serve, and we pledge to help fulfill the unique real estate needs of our top investors, clients and community members in emerging mountain markets.

Raw Land

Fortius Capital’s business model was built around an A-to-Z, vertically-integrated methodology. We source the land, structure it, design and build the real estate and related infrastructure; then hold, market and sell that real estate as it makes sense for a given investment.

Commercial

Fortius Capital’s commercial focus remains on light industrial opportunities in emerging mountain markets, but the rising residential demand may opportunistically shift planned 2021 commercial projects. Additionally, for top clients, our investment services, sales and acquisitions team actively oversees entire client portfolios, regardless of asset class or mountain geography. In fact, new partners gain access to our white-glove service to portfolio management and building ongoing synergy with our partners; maximizing near and long-term portfolio performance and doing business with them again and again.

We Target Opportunity,
not Asset Class.

Quality mountain deals in our backyard should be on your investment radar. Become a partner, and gain access to high-performing, or highly opportunistic mountain real estate.
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Pre-Fortius

The original developers broke ground in 2002, and sold approximately 100 homes through 2008. The community was purchased out of foreclosure in 2009 by an affiliated investment group, which could not make the project work.

Project Overview

Acquired in 2014 by Fortius Capital, Fortius Construction took over as builder/developer, and Fortius Realty as residential broker. We broke ground on homes in late 2014.  To date, we’ve built 140+ homes, and are in the process of building the last twelve homes in Two Rivers Village with deliveries in early 2021.

Investment Outcome

Investor Total Annualized Returns* = 15%+


*Total annualized return includes cash distributions and the estimated capital appreciation attributed to investors.

Exceeding Expectation.

Two Rivers Village was a 12-year failed, 130 acre lake and riverfront housing development with 257 residential lots and 11 acres of commercial property in Dotsero, Colorado.
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Pre-Fortius

In 2007, the first 16 homes were built by the original builder/developer. In 2008, the project was lost to the bank during economic downturn, and changed hands multiple times until Fortius Capital purchased the distressed development in 2016.

Project Overview

Following acquisition in 2016, Fortius Capital leveraged its construction, operational and marketing/sales resources to build homes more cost effectively with quicker turnarounds and faster pre-sales. In the first six months of breaking ground, eight homes went under contract in the community. The six final homes are expected for delivery in April 2021.

Investment Outcome

Investor Total Annualized Returns* = 35%+


*Total annualized return includes cash distributions and the estimated capital appreciation attributed to investors.

Driving Annualized Value.

Aspen Ridge is a residential housing sub-division with 110 residential lots, conveniently located next to the Eagle County Airport between Eagle and Gypsum, Colorado.
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Pre-Fortius

Fortius Capital handled the full lifecycle of the Minturn project, from land acquisition to construction and marketing and sales.

Project Overview

Fortius Capital acquired the land to begin building 841 Minturn in 2016 with all owners occupying residences by Q1 2020. This project showcases Fortius Capital’s vertical integration capabilities, and its inherent impact on speed-to-occupancy and risk aversion. This project served as a use-case for other, larger scale multi-family deals with future projects in 2021 and beyond in mind.

Investment Outcome

Performance information will be available in Q4 2020.

Land Acquisition to 100% Sell-Through.

841 Minturn Residences is an intimate, 4-unit multi-family community in Minturn, Colorado that offered the least expensive new construction in the Upper Valley with mountain modern design.
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Pre-Fortius

The Mountain Center of Avon needed to solve a vacancy, operational and value-add problem. Repurposing the property, service repricing and financial/operational-related audits to enhance property performance were required.

Project Overview

Within twenty-four months, the property was stabilized and performing well with strong occupancy, a well-rounded tenant mix and higher average rent per square foot. Fortius Capital handled the property management and construction management; specifically, storage and flex-space upgrades. Fortius Construction completed a major upgrade of the building, converting the basement level into a self-storage center. Our internal investment services team closed on the sale of the property in 2016 for $15.3MM.

Investment Outcome

Purchased in 2012 for $9.8MM, and sold in 2016 for $15.3MM; increased average rent from $12.56 psf to $16.02 psf; decreased vacancy from 12% to 0%.

Value-Add via Strategic Commercial Development.

Mountain Center of Avon is a 79,000 square foot Flex Office & Self-Storage Center located in Avon, CO.
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0 Homes Completed

0 2021 Projects Currently Raising Equity

0 Homes Planned for 2021

Local Livin'.

Our projects are an affordable housing solution for homebuyers in high-priced mountain areas, where the median sales price has continued to rise with additional migration-related housing demand.

To control costs and shorten build times, we deploy an alternative construction methodology, modular (system-built) homes. This keeps our construction teams building year-round, and provides the quality and finish that locals expect at a price they can afford.

841 Minturn Residences Feature

Minturn, CO

Enduring Strength & Lasting Impact.

Our goal is to build businesses, projects, and partnerships that can withstand the test of time.

A Guiding Principle.

Create lasting relationships with likeminded groups and individuals that we truly like, trust, and respect. Then, do business with those same people again and again.

Chase Deals, Not Equity.

What got us here will not take us to the next level. We are focused on beating our prior best in everything that we do. It's important our partners have a similar mentality.

Not Suitable for Everyone.

We believe in transparent alignment. Our model is not suitable for everyone, and conversely, the management and investment style of others may be unsuitable for us.

Some of Our Clients.

Go Small.

Go Niche.

Go Mountain.

The right investments in the right hands that are too small for the ``big boys`` and too sophisticated for most local firms. Join the big fish operating in many small, mountain markets.