Introduction to Monarch Realty Advisors

Introduction to Monarch Realty Advisors

Table of Contents Monarch Realty Advisors Overview Investment Strategy Services Transaction Services Asset Management Services Summary 3 7 12 17 21

Monarch Realty Advisors Overview

Marshall S. Woodward Senior Executive of US s largest advisory firm, Lend Lease Real Estate Investment Management. Served on firms Management and Investment Committees. Led Lend Lease s Portfolio Management unit overseeing the activities of $10.9 billion of client investments. Led Lend Lease s Real Estate Operations unit overseeing all the firms asset management, acquisitions, dispositions and financing activities. Led Lend Lease s International Advisors Group. Extensive experience directly managing investment activities of Middle Eastern, European and Japanese client accounts. Client portfolio performance consistently above benchmark returns. Directly acquired, sold or financed over $2.7 billion of office, retail, industrial and multifamily residential assets. Responsible for opening Lend Lease s office in Bahrain. 4

Monarch Realty Advisors Mission is to serve institutional and high net worth investors in US real estate by providing a cost effective solution to obtaining astute, independent, well executed and highly personalized investment advice in the following areas of expertise: Asset level strategies Transaction activities Overall investment strategy and portfolio construction 5

Monarch Realty Advisors Vision is to continue to develop a limited client base of investors who entrust Monarch to advise them and execute their US real estate investment strategies. To serve these clients with three to four high value add senior partners with broad transaction, asset management and portfolio management skills. These partners will leverage their skills to the clients benefit with a small staff of professionals who share the partner s client-oriented vision. The firm will remain small enough so that the partners can be intimately involved in working with their client s capital and providing a high level of personalized attention. 6

Investment Strategy Development

INVESTMENT STRATEGY DEVELOPMENT Investment Goal Development Investment Strategy Development Rebalancing Strategies Financing Strategies Manager Selection Strategy Implementation and Monitoring 8

INVESTMENT STRATEGY DEVELOPMENT Relevant Experience Firm-wide Investment Strategy: Head of Portfolio Management Initiated research driven portfolio strategy throughout Portfolio Management area at Lend Lease. Portfolio Rebalancing and Growth: Portfolio Manager for US Institutional Investor Assumed leadership of a 20 property, $600 million portfolio. Rebalanced asset and location mix by selling 6 assets and investing an additional $500 million in nine assets building the portfolio to $1.1 billion while achieving returns substantially in excess of clients benchmarks. Portfolio Rebalancing and Liquidation: Portfolio Manager for Offshore Client 12 property, $110 million portfolio liquidated & reinvested in funds over a 7 year period. Portfolio Rebalancing and Growth: Portfolio Manager for Offshore Investor Assumed leadership of a 12 property, $200 million portfolio and rebalanced asset and location mix by selling eight assets and acquiring or developing six higher quality assets. Built portfolio to a value of $700 million while achieving returns substantially in excess of clients benchmarks. 9

Transaction Services

TRANSACTION SERVICES Fund Investments Detailed or Desktop Review Investment Team: Qualifications, Resources and Alignment of Interest through Compensation Past Performance Record Investment Strategy Fee Structure Analysis Fund Governance and Investment Process Return Projections Analysis Suitability of Co-Investors / Partners 13

TRANSACTION SERVICES Direct Investments Underwriting and Due Diligence Market Assessment Property Assessment (lease terms, physical condition etc.) Cash Flow Projections, Assumption and Sensitivity Analysis Investment Structure & Recommendation Contract Negotiation / Owner s Real Estate Counsel Purchase and Sale Agreements Partnership Agreements Financing Agreements Closing Documentation 14

TRANSACTION SERVICES Monarch Centre Arranged for a domestic pension fund to acquire Monarch Plaza and the land for Monarch Centre. Oversaw the full development and lease up of the 523,000 square foot Monarch Tower building. Project on time and on budget. Leasing ahead of schedule at above pro forma rental rates. Arranged for a offshore client to acquire a 50% interest in both buildings from our existing client and responsible for partnership formation. Arranged favorable long-term financing of both assets on behalf of both partners. Investment returns exceeded both client s expectations and met each portfolio investment strategy. 15

TRANSACTION SERVICES Relevant Transaction Experience Acquisition: One Atlantic Center, Atlanta, GA 1.1 million sq. ft. office building on behalf of an offshore investor - $292 million. Partnership Acquisition: 50% of U.S. Bank Center, Seattle, WA 863,000 sq. ft office building on behalf of an offshore investor - $126 million. Partial Disposition, Partnership Formation: Eastridge Mall, San Jose CA. 1.15 million sq.ft Shopping Center on behalf of an offshore investor - $63 million. Development and Partnership Formation, The St. James, Philadelphia, PA 307 unit high rise residential tower on behalf of an offshore investor - $96 million. 16

Asset Management Services

ASSET MANAGEMENT SERVICES Asset Management Realistic Asset Valuations and Return Projections Hold / Sell Analysis & Recommendations Value Added Alternatives / Asset Enhancement Strategies Ongoing Asset Management / Strategy Execution Developmental Services Project Feasibility & Underwriting / Developer Selection Owner s Representative / Project Oversight Partnership Management & Resolution 18

ASSET MANAGEMENT SERVICES Union Bank Plaza Clients desired to sell asset with significant operating and capital issues. Thoroughly evaluated each option and created road map recommendation delivering the highest expected return based upon certain outcomes. Undertook a $7.5 million cosmetic renovation and a $3.2 operating system upgrade / asbestos removal program. Early renewal of major tenant lease. Stabilized building occupancy. Result: Achieve a 17% return on new capital invested and clients were able to realize goal of selling asset. 19

ASSET MANAGEMENT SERVICES Relevant Asset/Development Management Experience Workout, Value Improvement and Disposition: The Grand, Atlanta GA 473,000 sq. ft. hotel, office and residential Tower on behalf of an offshore investor Gut Renovation and Leasing: Hamilton Square, Washington D.C. 282,000 office building on behalf of an offshore investor Partnership Development: Metropolitan Tower, Seattle Washington 318 unit high rise project on behalf of an offshore investor Workout and Partnership Restructuring: Texas Commerce Tower, Dallas Texas 1,091,000 office building on behalf of a US institution and an offshore investor 20

Summary

MONARCH REALTY ADVISORS Bridging Investors To Their Goals by: Experienced and Astute Advice of Senior Executives Given In A Manner that Meets their Specific Needs With a High Degree of Personalized Service On a Cost Effective Basis In the Areas of Investment Strategy, Transactions and Asset Management 22