Commercial Real Estate Innovators

INDUSTRY - CHANGING ANALYTICS AND

CONNECTIVITY AT YOUR FINGERTIPS

Access Accuracy Liquidity Innovation

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

RIISnet - CREX Business Model

Increases Transaction
Efficiency Multiplier Commercial
Supply Real Estate
Exchange

Builder TDI Exclusive Patent

Tenant Default Insurance

Increases:
Increases:
Value
Demand
Liquidity

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

RIISnet Business Summary

nRIISnet is a patented electronic internet based

technology that has created a new marketplace for the
What is it?
acquisition and disposition of commercial real estate
assets and notes

nRIISnet simplifies the process of matching buyers and

What are the sellers, expands the market for stable and distressed
advantages? assets and notes, increases transaction velocity, and
reduces transaction costs

How does it nRIISnet earns a fee upon successful completion of

generate
transactions initiated in the RIISnet MarketPlace™
revenue?

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

Market Innovations
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
Bridge Plaza R-CC NY $46M 8.6 121 31 140 360 850

Gilroy Landing R-PC NY $86M 7.8 153 56 93 137 725

River Chase R-SC GA $6.9M 8.0 92 111 180 295 525
Sandhill Square R-PC NY $95M 7.2 136 57 87 185 615
Town Center R-NC FL $16.7M 7.0 152 33 105 123 552
Valley River R-SRC GA $136M 8.5 96 55 122 110 914

New Pricing Analytics Real-time and forward looking

supply and demand information

New Planning Analytics Alignment of Acquisition and Disposition

Plans of most prolific buyers and sellers
of CRE

New Communication Instant connectivity available to both

Technology seller and buyer
© 2009 RIISnet, LLC
 Commercial Real Estate Innovators

Manufacturing Transactions

Brokers Brokers
Investors Investors
Lenders SWF
Receivers REITs
Govt Agencies Sellers Buyers Funds
REITs Advisors
Funds REOCs
Advisors Private
REOCs

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

Matching Buyers and Sellers

Property Descriptors Search Criteria

Property Type
Property Type
Location Location
Price Price
Cap Rate Cap Rate
% Occupancy % Occupancy
% National Tenants % National Tenants
MSA Market Size MSA Market Size
Average Remaining Lease Term Average Remaining Lease Term
Total Square Feet Total Square Feet
Acres Acres
Number of Parking Spaces Number of Parking Spaces
Year Last Renovation Year Last Renovation
Year Built Year Built
Traffic Count Traffic Count
Demographics Demographics

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

Registered User Companies

Dollar Volume of Purchases by RIISnet Participants in 2007 by Property

Type - $121 Billion
Apartments $23 Billion
Retail $21 Billion
Office $77 Billion

Dollar Volume of Purchases by RIISnet Participants in 2007 by Entity

Type
Advisors and Funds $12 Billion
Corps and Institutions $ 8 Billion
REITs $58 Billion
REOCs $43 Billion

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

HOLD BOX Functionality

Owners Point of View Matching properties to become #available
of new buyers
in the next
looking
12 months
for this property in the
# of competing properties currently for sale
h property aligns to demand specific to that property

Registered users with active searches matching 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
Bridge Plaza R-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

The Hold Box is where buyers and sellers are aligned and transactions are
manufactured by providing a combination of real time and forward looking
analytics combined with instant connectivity. All blue underlined cells link to
additional information and functionality.

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

demo.riisnet.com

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

ARGUS COLLABORATION ZONE

Information Management and Connectivity
Password-protected electronic access to asset-specific folders

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

ARGUS COLLABORATION ZONE

Information Management and Connectivity
Password-protected electronic access to
information-specific folders within each asset

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

Market Capture Priorities

q Notes
q
q Distressed Assets
q
q Stable Assets

q
q

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

AND
ADAPT
Distressed Asset Platform Technology Solution

Access Accuracy Liquidity Innovation

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

ADAPT

Key Business Partners

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

THE PLATFORM

qIntegrated Solution qReal time pricing

qGlobal Access capability
qFully Transparent Asset
qConsistent, High-
qConsistent Reporting Management quality, Marketing
qAbility to Price Collaboration Zone
Information
qFaster Transactions PORTFOLIO ANALYTICS

qKnowledgeable
qFull Broker Participation Asset
Management
Services
qMultiple Sales
Strategies
q

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

A NEW CENTRALIZED MARKETPLACE

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

Financial People

Demographics Market

Physical Portfolio

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

ADAPT Integration and Flow

Brokers Supply and Demand

Investors
DDD

Funds
Advisors Electronic
REITs
REOCs Inter-Connectivity

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

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

Alternate Process

Supply and Demand

TALF
TARP
FDIC Asset Management Services
GSA Lenders available on request
Lawyers
Investors
1031 Loans,
Loans, distressed
distressed and
and stable
stable assets,
assets, excess
excess inventory
inventory
SWF
REITs
Funds
Advisors
REOCs Title Services Collaboration Zone
Brokers available on request

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

HOLD BOX Functionality

Owners Point of View Matching properties to become #available

of new buyers
in the next
looking
12 months
for this property in the
# of competing properties currently for sale
h property aligns to demand specific to that property

Registered users with active searches matching 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
Bridge Plaza R-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

INTERESTED BUYER VIEW

Pricing information without going to market Buyer list defaults by best match of property criteria

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

DISPOSITION PROCESS

AUCTION

BUYER AND SELLER TRADITIONAL ON-LINE AUCTION

ALIGNMENT BROKERAGE (DATE CERTAIN SALE,
PULL MARKETING PUSH MARKETING TO AS DESIRED)
90,000 ARGUS USERS

© 2009 RIISnet, LLC

 Commercial Real Estate Innovators

Access Accuracy Liquidity Innovation

Transforming the CRE Market

© 2009 RIISnet, LLC