adapt presenter

Commercial Real Estate Innovators

© 2009 RIISnet, LLC

Access InnovationLiquidityAccuracy

ADAPT

AND

Distressed Asset Platform Technology Solution



MARKET SEGMENTS SERVED

Distressed Income Assets Non-performing assets or troubled re-financings (estimated at $535 billion, 2010-2014).

Confidential Income Assets Stable, investment-grade ($10 million+) assets that do not always trade publicly (estimated at $805 billion, 2010-2014).

Public Assets (all types) The vast commercial real estate market and all its constituents, including smaller, stable assets (estimated at $8.5 trillion, 2010-2014).

Total Estimated Market Size (2010-2014) $9.8 Trillion



Past, Current & Future CRE Market Activity

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

$50

$100

$150

$200

$250

$300

$350

$400

$450

Stable CRE Market Sales: 2003 - 2018(Historical Data: Real Capital Analytics)

$ Stable Sales, bn

Sal

es,

Bil

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ns

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

$25

$50

$75

$100

$125

$150

$175

$200

$225

Distressed CRE Market Sales: 2003-2018(Historical Data: Real Capital Analytics

$ Distressed Sales, bn

Sal

es,

Bil

lio

ns

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

$50

$100

$150

$200

$250

$300

$350

$400

$450

Combined CRE Market Sales: 2003 - 2018

Stable Distressed

Sal

es,

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More, Consistent Data from More Sources Greater Consistency, Transparency and Efficiency Resources to Enable Better, Faster, more Informed

Decisions Real-time Pricing Availability Determined by

Market Driven Supply and Demand Data A Connected, Centralized Marketplace A Transaction Platform that Combines Uniform

Data and Processes with Global Access Anonymous and Secure Site

WHAT ADAPT DELIVERS



A NEW CENTRALIZED MARKETPLACE

MarketMarketDemographicsDemographics

PeoplePeople

PhysicalPhysical PortfolioPortfolio

FinancialFinancial

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



THE PLATFORM

Collaboration ZoneAsset

Management& Advice

Integrated Solution

Global Access

Fully Transparent

Consistent Reporting

Ability to Price

Faster Transactions

Full Broker Participation

Real time pricing capability

Consistent, High- quality, Marketing Information

Knowledgeable Asset Management Services

Multiple Sales Strategies



COMPLETE ASSET SOLUTION

PLANNING INFORMATION DISPOSITION

Collaboration Zone

AssetManagement and

Title Services on request

Asset Management and Title Services are available to aid in the initial decision making process for every asset

All information is housed in the Collaboration Zone where real time and forward looking analytics aid in the decision making and valuation process

As soon as a disposition decision is made, the property and all the data is instantly delivered to the Transaction Zone where buyer alignment occurs.



ARGUS COLLABORATION ZONEInformation Management and Connectivity

Password-protected electronic access to asset-specific folders



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

ARGUS COLLABORATION ZONEInformation Management and Connectivity



Transactions

Work out recommendations

TreasuryFDICGSA

ReceiversREITs

REOCsLendersInvestors

DD

D

BrokersInvestors

FundsAdvisors

REITsREOCs

Supply and Demand

ElectronicInter-Connectivity

Collaboration Zone

Disposition

NationalAsset

Management Team

ADAPT Integration and Flow

Special Assets and

REO



Current Participation

Customer Composition:

(% of 2007 Dollar Volume)

Apartment: 30.4%

Office: 35.5%

Retail: 52.2%

Weighted Avg: 36.3%

Acqn. Value: $196.1 bn

Number of Assets: 5,095

Estimated Value: $205 bn

Customer Composition:

(Number Of Companies By Type)

Fund Advisors: 17

Brokerages: 26

Corps/Inst.: 15

Developers: 21

R.E. Op. Cos: 118

Pvt. Equity: 36

REIT (Private): 10

REIT (Public): 27

TOTAL: 270

RIISnet’s registered users accounted for 36% of the value of all commercial real estate transactions with values over $5 million in 2007



Loans, distressed and stable assets, excess inventory

Asset Management Servicesavailable on request

Loans, distressed and stable assets, excess inventory

Transactions

Collaboration Zone

Supply and DemandTALFTARPFDICGSA

LendersLawyersInvestors

1031SWFREITsFunds

AdvisorsREOCsBrokers

Title Servicesavailable on request

Alternate Process



Real Time and Forward Looking Analytics



Benefits of Argus Request FC

“On-Demand” consolidation of Argus DCF data

Transparency into underlying financial, market, tenant, and valuation data

Flexibility for portfolio and property reporting

User defined visual representation of key drivers and metrics

Highlights areas of portfolio performance and risk

Empowers decision makers to proactively manage their portfolios

Streamline business processes

Eliminates the dependency on spreadsheets



ON-DEMAND PORTFOLIO INFORMATION

Welcome, User



ON-DEMAND PERFORMANCE INFORMATION

Office RetailIndustrial Multi-FamilyOther

2010

2012

2014

2016

2018

2020

0%

20%

40%

60%

80%

100%

Contract Revenue

Speculative Revenue

2010

2012

2014

2016

2018

2020

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

5%

10%

15%

20%

25%

30%

Debt Maturity

% Debt Maturing

2010

2012

2014

2016

2018

2020

-

200,000,000

400,000,000

600,000,000

800,000,000

0%

20%

40%

60%

80%

100%

Net Present Value

Outstanding Debt

LTV Ratio

2010

2012

2014

2016

2018

2020

- 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000

0.5

0.7

0.9

1.1

1.3

1.5

NOI 2010

2013

2016

2019

- 5,000,000

10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Interest PaymentsPrincipal Payments



Real Time and Forward Looking Analytics



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

Registered users with active searches

matching property

# of competing properties

currently for sale

Matching properties to become available in the

next 12 months

# of new buyers looking for this

property in the next 12 months

HOLD BOX Functionality

Owners Point of View

Each property aligns to demand specific to that property



INTERESTED BUYER VIEW

Buyer list defaults by best match of property criteria

Pricing information without going to market



PORTFOLIO MATCHING

6 Properties in Hold Box

MY PROPERTIES

MY PROPERTIES

ADD PROPERTY

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

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

My Properties (Page Help)

6 Properties in Hold Box



Transactions

Manufacturing Transactions

BrokersInvestorsLenders

ReceiversSWFREITsFunds

AdvisorsREOCs

BrokersInvestors

SWFREITsFunds

AdvisorsREOCsPrivate

Sellers Buyers



BUYER AND SELLER ALIGNMENT

PULL MARKETING

AUCTION

TRADITIONAL BROKERAGE

PUSH MARKETING TO 90,000 ARGUS USERS

ON-LINE AUCTION(DATE CERTAIN SALE,

AS DESIRED)

DISPOSITION PROCESS



ASSET MANAGEMENT

Seamlessly Connect with Proven Asset Management Firms

Services Asset Management Firms Can Provide

Asset Review, Evaluation and Strategy

Value-add, Property Turnaround

Loan Restructure and Workout

Foreclosure Process

REO Management

Sales of Foreclosed Assets



smartVIEW ONLINE

Electronic Title ServicesUpfront ,when you need them.

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25

smartVIEW ONLINE Summary

• Order transaction management application – from order entry to final document repository

• Web-Based application: fully secure and accessible 24/7 via the internet from any computer

• Seamless interaction with the RIISnet platform

• Electronic repository currently storing 20 million documents



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smartVIEW ONLINE

Password Protected



27

smartVIEW ONLINE

Virtual files collaborate with the RIISnet site

1

2

3

Viewing Documents



TRANSACTION MANAGEMENT SUPPORT

Take advantage of the alliance of proven service providers & solutions, including:

Title Services

Virtual Deal Rooms and Transaction Management

Marketing Services

Data Modeling and Information Management

PARTNERS



VALUE PROPOSITION

There are no up-front fees for the following Benefits of ARGUS Transaction Zone Participation

Automated Instant Alignment of Buyers, Sellers and Capital Anonymous Access to Real-time Market Pricing and Analytics

Unavailable Elsewhere Transparent Process with Uniform Data Enabling Faster, More

Efficient Transactions Improved Portfolio and Asset Management Capabilities Secure Platform with Global Communication and Market Reach Upfront Title Services Integrated Access to Asset Management and Transaction Support

Services

Nominal Fees of 5-30 bps Paid Only Upon Completion of a Transaction



STATUS UPDATE

Under Development (Coming Soon)

Ability to Trade Debt Instruments Ability to Match Capital Providers with

Buyers Tenant Default Insurance Demand Curve Analysis



Contact Information

Lawrence GruttemeyerLicensed Real Estate Broker

168 West Lake DriveLindenhurst, NY 11757

(516) 662-1323

[email protected]

www.lgruttemeyer.com

http://www.lgruttemeyer.com/



Contact Us

RIISnet, LLC

7530 Parker Road, Suite 200Fairhope, Alabama 36532

(888) 748-7447

[email protected]

www.riisnet.com

Argus Software

3050 Post Oak Road, Suite 900Houston, Texas 77056

(888) 692-7487 (“MyArgus”)

[email protected]

www.argussoftware.com

mailto:[email protected]

http://www.riisnet.com/

mailto:[email protected]

http://www.argussoftware.com/