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Commercial Real Estate Innovators

AND

Transforming the CRE Market

Access Accuracy Liquidity Innovation

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Argus Transaction Zone Powered by RIISNET

ATZ User

********

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

A New Centralized MarketPlace™

Asset and Transaction Management team members can focus on the


property throughout its life cycle via on-line access to the Argus Zone and
our Transaction Platform.

Financial People

Demographics Market

Physical Portfolio

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Problems in the U.S./Global CRE Market

• Supply
S l is
i fragmented
f t d

• Supply data is not uniform or qualified

• Demand cannot align to total supply

• Demand data is not uniform or qualified

•Historic price-to-yield values no longer apply

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Solutions to Transform the Market

Design a transaction platform that


combines uniform data with global access

Align supply & demand in real time

Support decisions with real-time analytics


and communications

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

RIISnet Hold Box

Matching properties to # of new buyers


#o
of co
competing
pet g become available in looking for this
properties the next 12 months property in the next
currently for sale 12 months

Registered users
with active searches
Hold Box (Section Help) matching property

Property Variables Current Activity Annual A&D Plans Industry Assets


Property Name Type Loc Price Cap IB # For Sale Disposition Acquisition

Bridge Plaza R-CC


CC NY $
$46M 6.6 121 31 140 360 850

Gilroy Landing R-PC NY $86M 5.8 153 56 93 137 725


River Chase R-SC GA $6.9M 8.0 92 111 180 295 525
Sandhill Square R-PC NY $95M 6.4 136 57 87 185 615
Town Center R-NC FL $16.7M 6.8 152 33 105 123 552
Valley River R-SRC GA $136M 5.8 96 55 122 110 914

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Portfolio Matching

MY PROPERTIES

MY PROPERTIES ADD PROPERTY

My Properties (Page Help)

Add New Property

Hold Box (Section Help)


Property Variables Current Activity Annual A&D Plans Industry Assets
Property Name Type Loc Price Cap IB # For Sale Disposition Acquisition

B id Plaza
Bridge Pl R CC
R-CC NY $46M 66
6.6 121 31 140 360 850

Gilroy Landing R-PC NY $86M 5.8 153 56 93 137 725


River Chase R-SC GA $6.9M 8.0 92 111 180 295 525
Sandhill Square R-PC NY $95M 6.4 136 57 87 185 615
Town Center R-NC FL $
$16.7M 6.8 152 33 105 123 552
Valley River R-SRC GA $136M 5.8 96 55 122 110 914
6 PropertiesininHold
6 Properties Hold Box
Box

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Portfolio to Demand Alignment

Entire portfolios poised for disposition are


matched to industry acquisition plans

Industry
$1billion Portfolio Acquisition Plans

IInvestors
t
SWF
REITs
matching Funds
Ad i
Advisors
REOCs
Brokers

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

RIISnet Transaction Flow Chart

Stable Assets
Brokers Brokers
Investors Investors
1031 1031
SWF SWF
REITs
Supply Demand REITs
Funds Funds
Advisors Advisors
REOCs REOCs
Transactions

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Market Transformation

Inefficient Efficient

Historical Real-Time

Push Pull

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Push Marketing

Seller/Broker

Historical Historical Historical Historical


Buyer
Historical Buyer
Historical
Buyer Historical Buyer
Historical Historical Historical
Historical Historical y
Buyer
Buyer Buyer Buyer
B
Buyer Buyer
Buyer Buyer
Historical Historical Historical Historical Historical Historical Historical Historical Historical
Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
© 2009 RIISnet, LLC
Commercial Real Estate Innovators

Pull Marketing

Seller/Broker

Interested Interested

Historical Historical Interested Historical Buyer Historical


Buyer
Buyer Buyer
Historical Buyer
Historical
Buyer Historical Buyer
Historical Historical Historical
Historical Historical y
Buyer
Buyer Buyer Buyer
B
Buyer Buyer
Buyer Buyer
Historical Interested Historical Interested Historical Interested Historical Interested Historical
Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer Buyer
© 2009 RIISnet, LLC
Commercial Real Estate Innovators

Pull Marketing

VDR – Argus Collaboration Zone

Seller/Broker

Interested Interested

Historical Buyer Historical Historical Buyer Historical


Buyer Interested
Historical Buyer
Historical
Buyer Historical Buyer
HistoricalBuyer Historical Historical
Historical Historical uye
Buyer
Buyer Buyer B
Buyer
Buyer Buyer
Buyer Buyer
storical Historical
Interested Historical Historical
Interested Historical Interested
Historical Historical HistoricalInterested
Historical
Buyer Buyer
Buyer Buyer Buyer
Buyer Buyer BuyerBuyer Buyer Buyer Buyer Buyer
© 2009 RIISnet, LLC
Commercial Real Estate Innovators

Live Site
Demonstration

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Service Model

Acquisition and Command


Disposition Center
Decisions
Specific
Properties
Immediate
P
Property
t Data
D t And A
Access
Market Data to
Demographics Interested People
Buyers
Supply and Information
Demand Services

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Status of Activity
Status of Business Development: 5/31/09
Customer Composition: Customer Composition:
(NUMBER OF COMPANIES BY OWNING TYPE) (% of 2007 Dollar Volume, by Category)

Apartment: 29.9%
Fund
F d Advisors:
Ad i 12
Office: 32.0%
Corporations: 9
Retail: 27.6%
Developers: 30
Institutions: 6
Weighted Avg: 30.7%
Private Firms: 110
Acqn. Value: $111.3 bn
Pvt. Fund/Equity: 35
REIT (Private) 9 Number of Assets: 5,095
REIT (Public): 27 Estimated Value: $205 bn
TOTAL: 238

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Market Segments Served


Total Estimated Market Size $6 Trillion
Distressed Assets
Non-performing assets or troubled re-financings
(estimated at $340 billion, 2009-2012).

Confidential Assets
Stable, investment-grade ($10 million+) assets that do
not always trade publicly
(estimated at $720 billion, 2009-2012).

Public Assets
The vast commercial real estate market and all its
constituents including smaller,
constituents, smaller stable assets
(estimated at $5.2 trillion, 2009-2012).
© 2009 RIISnet, LLC
Commercial Real Estate Innovators

&
Complete Distressed Assets Solution

Access Accuracy Liquidity Innovation

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Past, Current & Future CRE Market Activity


$800 Combined CRE Market Sales: 2003 - 2018
Stable CRE CRE
Distressed Market MarketSales: Sales:
2003 2003-2018
(Historical Data: Real Capital Analytics
- 2018
(Historical Data: Real Capital Analytics)

$700
$800
$400

$600
$350
$700

$300
$600
$500
Billions
s

$250
$500
Billions

$400
Sales,Sales,
Sales,, Billions

$200
$400
$300

$150
$300
$200
$100
$200
$100
$50
$100

$0
$0
$0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ Sales, bn
Stable
$ Sales,Distressed
bn

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Complete Distressed Asset Solution

‰ Integrated Solution
‰ Global Access
‰ Fully Transparent Asset
Management
‰ Maximally Efficient & Advice Collaboration Zone

‰ Consistent Reporting
‰ Better Prices
‰ Faster Transactions
‰ Full Broker Participation

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Complete Distressed Asset Solution

‰ Efficient Internet
based transaction
system
‰ C
Consistent,
i t t high-
hi h Asset
Asset
Management
Management
quality, marketing &&Advice
Advice Collaboration Zone

information
‰ Knowledgeable
asset management
services
‰ Multiple sales
strategies
t t i

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Complete Distressed Asset Solution

Asset
Management
& Advice C ll b
Collaboration
ti Zone
Z

WORK-OUT INFORMATION DISPOSITION


Analysis, evaluation, All property Instantly match assets to
and restructuring.
restructuring information is active qualified buyer
password protected searches.
Determine whether to and available on line
work-out, reposition, in standard data Structure deals by
or dispose of the asset
asset. formats including inviting the most
property, market, site, qualified buyers into the
and financial data. Collaboration Zone.

Global access to all


CRE brokerage service
providers.

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Complete Distressed Asset Solution

Brokers Supply and Demand


I
Investors
t
DDD

Funds
Advisors Electronic
REITs
REOC
REOCs Inter-Connectivity

Disposition
Work out recommendations Collaboration Zone
Treasury
FDIC
GSA National
Receivers Special
Assets and Asset
REITss REO Management
REOCs Team
Lenders
Investors Transactions

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Any Asset Sales Solution

TALF Supply and Demand


DDDD
DDD

TARP
FDIC
DDD
DDD

GSA
Asset
Lenders Management
Lawyers & Advice
Investors
1031
SWF Loans,
Loans, distressed
distressed and
and stable
stable assets,
assets, excess
excess inventory
inventory
REITs
Funds
Advisors
REOCs Collaboration Zone Transactions
Brokers

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Disposition Process

Collaboration Zone

ELECTRONIC BROKERAGE AUCTION


ALIGNMENT
All properties are If the initial matching If brokerage company
initially uploaded to off qualified
lifi d buyers
b to
t i nott successful
is f l in
i
the Transaction Zone asset does not move marketing the asset,
and aligned with forward in a timely the asset will be
fashion, the property delivered to a national
current q qualified
i delivered
is d li d to
t a web b based
b d auction
ti
demand. Buyers are
qualified broker to company.
alerted to the push information out
availability of the asset to a larger pool of
and are invited into the b
buyers.
Collaboration Zone to
view property data.
© 2009 RIISnet, LLC
Commercial Real Estate Innovators

Asset Management

Open Alliance of Proven


National Asset Management Firms

Providing Argus Zone Customers with:

Professional Asset Management Services

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Management & Consultation

Distressed Asset Solution


Partners Provide:

‰ VALUE-ADD, PROPERTY TURNAROUND


‰ ASSET REVIEW AND EVALUATION
‰ PRE-FORECLOSURE WORKOUT
‰ FORECLOSURE PROCESS
‰ POST-FORECLOSURE WORKOUT
‰ SALES
S S OF
O FORECLOSED
O C OS ASSETS
SS S

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Transaction Management

Asset
Management
Collaboration
& Advice
Zone

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

A New Centralized Marketplace™

All parties to the transaction can focus on the property throughout its life cycle via
password protected on-line access to the Argus Collaboration Zone

Financial People

Demographics Market

Physical Portfolio

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Argus Collaboration Zone

Password-protected electronic access to asset-specific folders

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Argus Collaboration Zone


Password-protected electronic access to
information-specific folders within each asset

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

Complete Distressed Asset Solution

‰ Efficient Internet
based transaction
system
‰ C
Consistent,
i t t high-
hi h Asset
Management
quality, marketing & Advice
Collaboration
Zone
information
‰ Knowledgeable
asset management
services
‰ Multiple sales
strategies
t t i

© 2009 RIISnet, LLC


Commercial Real Estate Innovators

AND

Transforming the CRE Market

Access Accuracy Liquidity Innovation

© 2009 RIISnet, LLC

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