DRGinvest Fund VII LLC One Hundred Eighty- Seven Units One ...

DRGinvest Fund VII LLC

Offering Presentation

One Hundred Eighty-Seven Units One Apartment Complex Oklahoma City, OK



DRGinvest Fund VII LLC

Acquisition of one Oklahoma City apartment complex

DRGinvest Fund VII LLC ("Fund VII") is pleased to offer ownership interests to limited partners ("Investors") in one apartment complex located in Oklahoma City, OK. Significant market research has triggered our interest in Oklahoma City, and we believe investing in this property at our contracted acquisition price represents an exceptional opportunity for investors.

Investor commitment

Fund VII is seeking to raise approximately $2,250,000 of equity in connection with this investment. Fund VII is seeking Investors able to quickly commit capital on a longterm basis to take advantage of this offering. Investors will be paid monthly distributions (subject to operating requirements of the property) and Investors will benefit from a 7.5% preferred return prior to any performance fee payments. Investor subscriptions require a minimum commitment of $25,000, with a cap of 20% of overall equity raised.

DENVER REALTY GROUP, LLC

5925 E Evans Avenue, Ste #300 Denver, CO 80222

Tel: 303.502.7333 Fax: 888.274.7626 Email: Investors@

INVESTMENT TEAM

Jacob D. Chase 303.941.5289 JChase@

Zack Kobilca 303.828.7091 Zack@

Offer Solicitation Overview

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Legal

THIS PRESENTATION IS AN EXHIBIT TO OFFERING MATERIALS DESCRIBING AN OFFERING BEING MADE IN RELIANCE ON THE SECURITIES OFFERING EXEMPTION SET FORTH IN RULE 506(C) OF REGULATION D AS ADOPTED PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED. AS SUCH, THIS OFFERING WILL NOT BE REGISTERED WITH THE SEC UNDER THE SECURITIES ACT OR WITH THE SECURITIES AGENCY OF ANY STATE. RULE 506(C) REQUIRES THAT ALL INVESTORS IN THE OFFERING BE "ACCREDITED INVESTORS" (AS THAT TERM IS DEFINED BY RULE 501(A) OF REGULATION D) AND THAT THE FUND MUST TAKE REASONABLE STEPS TO VERIFY EACH INVESTORS STATUS AS AN "ACCREDITED INVESTOR". WILL ASSIST THE FUND IN CONFIRMING THE INVESTOR STATUS OF EACH INVESTOR. EACH PROSPECTIVE INVESTOR MUST REVIEW AND ACCEPT THE TERMS SET FORTH IN THE FULL OFFERING MATERIALS AND MEET THE QUALIFICATION REQUIREMENTS TO PARTICIPATE IN THE OFFERING.

IT IS CRITICAL TO THE FUND'S RELIANCE ON THE 506(C) EXEMPTION THAT ALL INVESTORS PARTICIPATING IN THE OFFERING MEET ARE ACCREDITED INVESTORS AND OTHERWISE MEET THE INVESTOR SUITABILITY REQUIREMENTS SET FORTH IN THE OFFERING DOCUMENTS. IF THE MANAGING PARTNER OR THE FUND, AS APPLICABLE, SHOULD FAIL TO COMPLY WITH THE REQUIREMENTS OF THE 506(C) EXEMPTION, THE FUND MAY BE SUBJECT TO SIGNIFICANT CIVIL AND/OR CRIMINAL FINES AND PENALTIES, THE EXTENT OF WHICH COULD FORCE THE FUND TO CEASE OPERATIONS. FURTHER, INVESTORS MAY HAVE THE RIGHT TO RESCIND THEIR PURCHASED INTERESTS. IT IS POSSIBLE THAT ONE OR MORE SUCH PERSONS OR ENTITIES SEEKING RESCISSION WOULD SUCCEED. THIS MIGHT ALSO OCCUR UNDER THE APPLICABLE STATE SECURITIES OR "BLUE SKY" LAWS AND REGULATIONS IN STATES WHERE THE OFFERING WILL BE MADE WITHOUT REGISTRATION OR QUALIFICATION PURSUANT TO A SECURITIES OFFERING EXEMPTION. IF A NUMBER OF INVESTORS WERE SUCCESSFUL IN SEEKING RESCISSION, THE FUND AND MANAGING PARTNER WOULD FACE SEVERE FINANCIAL DEMANDS THAT WOULD ADVERSELY AFFECT THEM AS A WHOLE AND, THUS, THE INVESTMENT OF ANY PROSPECTIVE INVESTOR.

THIS OFFERING PRESENTATION CONTAINS FORWARD-LOOKING STATEMENTS THAT INVOLVE FUTURE EVENTS, THE FUND'S FUTURE PERFORMANCE AND THE ITS EXPECTED FUTURE INVESTMENTS, OPERATIONS, AND ACTIONS. IN SOME CASES YOU CAN IDENTIFY FORWARD-LOOKING STATEMENTS BY THE USE OF WORDS SUCH AS "MAY," "SHOULD," "ANTICIPATE," "BELIEVE," "EXPECT," "PLAN," "FUTURE," "INTEND," "COULD," "ESTIMATE," "PREDICT," "HOPE," "POTENTIAL," "CONTINUE," OR THE NEGATIVE OF THESE TERMS OR OTHER SIMILAR EXPRESSIONS. THESE FORWARD-LOOKING STATEMENTS ARE ONLY THE FUND'S PREDICTIONS AND INVOLVE NUMEROUS ASSUMPTIONS, RISKS AND UNCERTAINTIES. OUR ACTUAL RESULTS OR ACTIONS MAY DIFFER MATERIALLY FROM THESE FORWARD-LOOKING STATEMENTS FOR MANY REASONS, INCLUDING THE UNPREDICTABLE MOVEMENTS OF THE REAL ESTATE MARKETS IN WHICH THE FUND AND ITS INVESTMENTS OPERATES, THE ACUMEN OF THE FUND'S MANAGEMENT AND SERVICE PROVIDERS, REGIONAL, NATIONAL AND GLOBAL ECONOMIC TRENDS AND EVENTS, AND CHANGES IN THE LAWS AND REGULATIONS UNDER WHICH THE FUND AND ITS AFFILIATES OPERATE.

THE FUND'S ACTUAL RESULTS OR ACTIONS COULD AND LIKELY WILL DIFFER MATERIALLY FROM THOSE ANTICIPATED IN THE FORWARD-LOOKING STATEMENTS FOR MANY REASONS, INCLUDING THE REASONS DESCRIBED IN THE FULL OFFERING MATERIAL OF WHICH THIS PRESENTATION IS ONLY A PART. THE FUND IS NOT UNDER ANY DUTY TO UPDATE THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS OFFERING PRESENTATION OR THE OFFERING MATERIALS. THE FUND CANNOT GUARANTEE FUTURE RESULTS, LEVELS OF ACTIVITY, PERFORMANCE OR ACHIEVEMENTS. THE FUND CAUTIONS YOU NOT TO PUT UNDUE RELIANCE ON ANY FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE OF THIS OFFERING PRESENTATION. YOU SHOULD READ THIS OFFERING PRESENTATION AND THE DOCUMENTS REFERENCED IN THIS OFFERING PRESENTATION WITH THE UNDERSTANDING THAT THE FUND'S ACTUAL FUTURE RESULTS MAY BE MATERIALLY DIFFERENT FROM WHAT WE CURRENTLY EXPECT. THE FUND QUALIFIES ALL OF OUR FORWARD-LOOKING STATEMENTS BY THESE CAUTIONARY STATEMENTS.

Offer Solicitation Overview

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Denver Realty Group, LLC ("DRG")

Business Description, Principal Bios, and Investment History

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Business Description

Denver Realty Group Structure

Founded in 2008, DRG is wholly owned and operated by Zack Kobilca and Jacob Chase (the "DRG Principals"). DRG is a Denver-based full service real estate business, comprised of three main operating businesses: Property Management, Investing and Brokerage.

Property Management

DRG operates a full-service property management business, serving both affiliated and third-party owners of properties ranging from single family homes through large apartment complexes. The property management business currently has nearly 2,000 units in its portfolio. The property management business employs a full team of leasing agents, in-house maintenance and cleaning staff, and office staff designed to handle the demands of property operations. While the property management business has grown through acquisitions, it also actively solicits third party management projects.

Investing

The DRG Principals serve as anchor investors, investment advisors, and property managers to nine investment partnerships which collectively own over 28 apartment buildings comprising nearly 1,000 apartment units, ranging in size from 8 to 126 units. These investing partnerships have a solid track record of attractive purchase prices, and through DRG property management services, have achieved excellent operational results from selective value-added renovations, and efficient leasing management. A tenth partnership also owns a portfolio of single family homes, also managed by DRG. Total asset value owned and managed by the DRG Principals is over $100 million.

Real Estate Brokerage

DRG also operates as an independent brokerage business, with agents primarily transacting single family homes. The brokerage business currently comprises over 20 real estate agents and is actively recruiting new agents to feed the synergies between all three operating business units. The brokerage business has transacted over $100 million of property value in each of the last five years and has nearly $1 billion since inception.

Denver Realty Group, LLC

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Executive Summary

Principal Bios

Jacob D. Chase ? Managing Partner

Jacob D. Chase is co-owner and Managing Partner of DRG and has had a relationship with Mr. Kobilca for over 15 years. Mr. Chase currently serves in a financial and operational role at DRG, overseeing and refining the property management operations and customer relationships of the business.

Previously, Mr. Chase has spent most of his career as an investor, hedge fund analyst, and investment banker. Mr. Chase's career includes seven years with Angelo, Gordon & Co. in New York City and in London. As a Director in the Distressed Debt group at Angelo, Gordon & Co., Mr. Chase has led investments of over $750 million in distressed credit opportunities that generated over $100 million in gains.

Prior to his more recent roles, during the height of the financial crisis Mr. Chase worked for two years in Chicago as a restructuring advisor for Lazard Fr?res & Co. Mr. Chase graduated in 2007 from the Daniels College of Business at the University of Denver with a BA in Finance and a minor in Marketing.

Denver Realty Group, LLC

Zack Kobilca ? Founder, Managing Partner

Zack Kobilca is a co-founder, co-owner, and current Managing Broker of DRG. From its founding in 2008, DRG has grown into a thriving property management business, brokerage house, and real estate investment manager. Under Mr. Kobilca's leadership, DRG has grown rapidly and employs approximately seventy full-time property managers, leasing agents, real estate agents, construction and maintenance personnel, and operational staff. DRG serves as the property management platform for numerous property investment vehicles and individual investors, provides a robust sourcing pipeline for investment purposes, and has consistently delivered excellent service at competitive rates.

Prior to co-founding DRG, Mr. Kobilca was a part of a top sales team at Keller Williams Realty in a Denver office consisting of over 400 agents. Mr. Kobilca individually has brokered over $500 million in real estate transactions. Prior to his time at Keller Williams Realty, Mr. Kobilca worked for a senior housing acquisition and development company. Mr. Kobilca graduated from the Burns School of Real Estate at the University of Denver in 2006, majoring in Real Estate/Finance with a minor in Marketing.

Jacob D. Chase ? Managing Partner

Zack Kobilca ? Founder, Managing Partner

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DRGinvest

Investment History

The Denver Fund, LLC ("TDF")

Established in 2014, TDF deployed approximately $1.65m of equity capital to acquire a net share of 140.5 units across 8 buildings in Aurora and Colorado Springs. Through a series of recapitalizations and the sale of a duplex, TDF has returned over 100% of initial capital to investors, while retaining full ownership in the portfolio. Current valuation marks suggest a total return on capital of 4.25x, or IRR to date of approximately 67%.

DRGinvest Fund II LLC ("Fund II")

Fund II acquired two properties comprising of 78 total units in March of 2018. The first, a 48 unit property in North Aurora was acquired at favorable pricing and has operated well under DRG management. The second property, a 30 unit building comprised entirely of twobedroom units located just north of downtown Colorado Springs, had recently been renovated by the seller and was acquired in an off-market deal at below market rates.

DRGinvest Fund V LLC ("Fund V")

Fund V closed in December 2018 on a 60-unit apartment complex in Oklahoma City. This property was purchased below market value as Fund V assumed the seller's loan as part of the transaction. The property is in excellent condition as the seller made large investments in new railings, roofs, walk ways, and stairs, covered parking and unit upgrades. The property was fully occupied upon takeover and Fund V plans to raise rents immediately.

DRG Investment Group, LLC ("DRGIG")

DRGIG began investing in 2016, acquiring 211 net units in Aurora and Colorado Springs. Starting with initial capital of $4.4m, investors have received dividends of 44% of initial contributions, while still maintaining ownership of 190 net units. Current portfolio valuations imply remaining pre-tax equity value is approximately 3.0x of initial capital contribution amounts. DRGIG continues to opportunistically recapitalize existing investments and evaluate new investment opportunities.

DRGinvest Fund III LLC ("Fund III")

Belle Isle Terrace LLC

Fund III closed on a 35-unit apartment in the very desirable western submarket of Colorado Springs. The acquisition was off-market property sourced from a seller whom DRG had previously acquired properties. An excellent location and purchase price drove the acquisition along with the favorable unit mix of all 2bedroom and 3-bedroom units with washer and dryers. With professional management now in place, the asset is expected to hit double-digit cash flow returns throughout the remaining holding period.

Belle Isle Terrace, a 97-unit apartment complex in Oklahoma City, was acquired in February 2019. The unit mix consists of thirty-nine 1-bed and fifty-eight 2-bed units with 70% of units fully remodeled. All exterior upgrading has been completed throughout the property, including all balconies repaired, new landscaping and a new sprinkler system installed. The gated community features maintained grounds, a pool and club room, and ample parking.

DRGinvest Fund I, LLC ("Fund I")

Fund I closed on January 31, 2018 acquiring an excellent 126-unit property located in a quiet part of North Aurora. The deal was sourced as an off-market transaction, was acquired well below market prices and has met or exceeded underwriting expectations since take-over. We expect this property to continue to produce double digit cash-on-cash returns, with significant capital appreciation gains to be crystalized upon property sale.

DRGinvest Fund IV LLC ("Fund IV")

Fund IV closed in December 2018 on a 121-unit apartment complex in western Oklahoma City for a fantastic acquisition price. The property has great frontage on a main thoroughfare, has been very well maintained, and requires no substantial renovation work or management upgrading. Operations since takeover have been smooth, new unit rents have met or exceeded underwriting expectations, and the property is expected to perform exceptionally over the holding period.

DRGinvest Fund VI LLC ("Fund VI")

Fund VI is pursuing a 358-unit apartment complex in an excellent northern submarket of Oklahoma City. The property has an attractive unit mix with over 60% two-bedroom units. Community amenities include onsite laundry facility, swimming pool, fitness center, and more. The property is located in the OKC Public School district, and is close to new retail and commercial developments.

Denver Realty Group, LLC

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Subject Property Chelsea Manor Apartments

Subject Property

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