Company Introduction — History and Operations
American Life Inc., established in 1996, began by assembling contiguous and near-by properties in SODO within the Duwamish industrial area, a section bordering the south end of downtown Seattle, extending south to Spokane Street. Management believes SODO will grow significantly in importance and value in the mid to long-term. In particular, due to Seattle's geography that severely limits available land near-downtown, management sees that Seattle's historically steady growth will force SODO, presently Seattle's only centrally located industrial area, to transform to a district serving Seattle's growth and changing needs.
The management of American Life Inc. began investing in the Seattle area in 1974. Since its formation in 1996, the Company and its affiliates purchased over 30 prime warehouse properties in or nearby SODO and added significant value by converting what were low yielding warehouses into higher return, flexible office, hi-tech, shop and storage space. The Company and its principals now control approximately 40 acres within SODO. This makes American Life Inc. one of the largest private holders of SODO real estate.
Initially, American Life Inc. and its principals relied on their own capital, borrowed funds, and earnings to make acquisitions and property improvements. Soon thereafter they began seeking U.S. and international investment, developing in the process a standard limited partnership format. Under this format, American Life Inc. acts as general partner with investors entering as legally protected limited partners. Investors earn regular monthly income from their partnership's rent roll as well as future appreciation.
For the safety and security of the investors, American Life Inc. does not attempt to increase yield to investors by maintaining debt. To the contrary, American Life Inc. strives to reduce existing mortgage balances to zero. American Life Inc. applies the proceeds of sales of limited partnership interests to investors to pay down debt on the related property. American Life Inc. closes off further investment in a partnership once the debt on that property had been fully repaid and a reasonable reserve fund established.
American Life Inc. pays the mortgage on each property from its own funds until the mortgage is paid in full. The Company guarantees all debt and no debt is cross-collateralized among the properties and partnerships.
The Company runs a lean operation to minimize any direct expenses charged against the partnerships' earnings. To produce a stable income stream, all tenant leases are on a triple-net basis. American Life Inc. does not charge separate asset management fees to the limited partnerships.
American Life Inc. formed American Life Ventures LLC in 2006 to implement the SODO business model in USCIS designated Regional Centers encompassing downtown Everett, Washington and downtown Tacoma, Washington. The Regional Centers were approved by the USCIS in June of 2008 and are manageed by American Life Inc.
