a perspective on current real estate investment strategies
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A Perspective on Current Real Estate Investment Strategies. January 19, 2010. State of the Union. CMBS Delinquencies Bank Failures FDIC and No RTC Debt Capital Constraints Commercial vs. Residential Leasing Demand is Weak or Negative NOI is Decreasing - PowerPoint PPT PresentationTRANSCRIPT
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A Perspective on Current Real Estate Investment Strategies
January 19, 2010
CONFIDENTIAL 2
• CMBS Delinquencies
• Bank Failures
• FDIC and No RTC
• Debt Capital Constraints
• Commercial vs. Residential
• Leasing Demand is Weak or Negative
• NOI is Decreasing
• Overall Economy is Weak (bottomed out?)
State of the Union
CONFIDENTIAL 3
• Equity – Purchase Loan(s)– Purchase Foreclosures or Distressed Assets– Purchase Portfolios of Distressed Assets– Purchase Entities– Mezz - Equity
• Mortgages– Lower LTV’s– Debt Yields– Mezz – Debt– A/B Loans or Allow Mezz behind the first mortgage– No Development or Construction Loans
Current Investment Strategies in the News
CONFIDENTIAL 4
• Historical Equity Investing – Whole vs. JV
• Historical Mortgage Investing – Permanent vs. Construction
• Other Investments – CMBS, RE Funds, Mezz
Insurance Sector – Real Estate Investing Historically
CONFIDENTIAL 5
How NOT To Invest Your Dollars…
Lotus Riverside, Shanghai
CONFIDENTIAL 6
• Mortgages – Property Types: office, retail, apartments, industrial,
full-service hotels– Loan Type: fixed (5 – 30 years) and floating (3 – 5
years)– Preferred Loan Size: $20M to $200M (per property)– Rates: U.S. Treasuries / LIBOR 30, 60 or 90 day– Terms: 20 to 30 years / up to 90 days rate lock at
application– Co-Lending: pari-passu or senior / sub
MetLife Investment Strategy - Mortgages
CONFIDENTIAL 7
MetLife Investment Strategy - Equity
• Equity – Property Types: office, retail, apartments, industrial,
full-service hotels
• Investment Criteria– Primarily Core and Core Plus– Primary domestic and international markets– Direct as well as through institutional joint ventures