hilary provinse evp – march 2017 berkadia · the berkadia difference. involved in every facet of...

a Berkshire Hathaway and Leucadia National company

Hilary ProvinseEVP – Head of Mortgage Banking

Berkadia

March 2017Monarch Annual Investor Meeting

What’s Driving the Economy

Interest Rate Outlook

Multifamily Capital Markets

2018: The Baton IsPassed, the Handoff IsShaky

With the enactment of tax reform, 2018 will bemarked by the passing of the baton frommonetary policy to fiscal policy as the primarysource of economic stimulus, as Jerome Powellassumes the mantle of leadership for monetarypolicy normalization.

Consumer spending will be boosted by continued job growth,increased wealth, rising disposable income and increasedconfidence.

Many, but not all households will benefit from tax cuts andincreased disposable income.

The cumulative effects of business deregulation and corporate taxrelief will foster a more business friendly environment.

Rebuilding housing stock in regions devastated by naturaldisasters will boost construction activity in a market that isalready struggling with a shortage of construction workers.

With 6 million job openings, tightening labor markets and risingvoluntary separations wages will accelerate in a more meaningfulway.

1) Economy: In a Good Place,Growth Profile Will Continue to Improve

MONARCH ANNUAL INVESTOR MEETING BERKADIA 5

2) Inflation: Acceleration Ahead The supply shock in housing caused by the natural

disasters will accelerate the upward trend in theshelter component of the CPI.

Rising prices for imported goods will get passed on toa stronger consumer sector that is able to absorb priceincreases.

Inflation measures will also be boosted by supportivebase effects.


New Fed Chairman JeromePowell will continue a monetarypolicy of gradual rate andbalance sheet normalization.

3) Monetary Policy:Three to Four Rate Hikes


4) Fiscal Policy:Tax Reform Benefits andUnfortunate UnintendedConsequences

Real estate industry won tax bill. The “Tax Cuts & Jobs Act”

(TCJA) corporate tax reform willcreate a more business friendlyenvironment and boost long-termgrowth in the US.

The perpetually poisonous political environment inWashington will continue to generate uncertainty, frustration, a surplus of investigations and a shortageof progress on important issues.

The evolution of protectionist policies could threaten globaltrade and adversely affect both growth and inflation.

Geopolitical risks and tensions will continue to provide anuneasy backdrop to a US economy that is otherwise in ahappy place.

Risks: Usual Suspects


WE OFFER

Industry-leading real estate company

Comprehensive debt and equity capital solutions, investment sales advisory and research services for multifamily and commercial propertiesLargest, highest-rated and most respected primary, master and special servicer in the industry

Full range of servicesAll commercial property types

Special focus on multifamily

Deep relationships with Fannie Mae, Freddie Mac, HUD and life companies

Market expertise, access to diverse sources of capital

Flexible, customized lending and servicing solutions

WHO WE ARE


T HE BERKADIA DIFFERENCE

Involved in every facet of real estate serviceSeasoned professionals with an average of 25 years of experience

A full range of services for the life of your property

Financing options for all property types: multifamily, hotel & hospitality, retail, office, industrial, affordable housing, seniors housing, student housing and manufactured housing communities

Non-bank-regulated, closely held company

Flexible, customized lending and servicing solutions

Ability to respond to the shifting market conditions

Customizable, non-recourse loans for all needs and circumstances

Providing the financial stability and certainty of consistent capital for all market conditions


NAT IONAL REACH, LOCAL EXPERT ISE

No matter where you sell, buy or finance – orwhere you’d like to do so in the future – we’rethere to help you make it happen.


THE NUMBERS

TOPAgency partners ranked Berkadia 1st with HUD, 2nd with Freddie Mac and 2nd with Fannie Mae in terms of delivered loan volume in 2017.

$32billionBerkadia’s 2017 loan origination volume was over $24 billion, while investment sales totaled nearly $8 billion.

3rd

Ranked as the 3rd largest commercial mortgage servicer in the country*, and for the 3rd year in a row, we’ve been named the BPO Organization of the Year.

$30 billionSince 2013, our Investment Sales division has closed over 2,200 transactions, totaling $30 billion.

#1#1 originating HUD lender marking the fourth consecutive year earning that distinction. For HUD’s fiscal year 2017, our volume totaled more than $1.7 billion.

$7 billionWe closed over $7 billion of loans with both Freddie Mac and Fannie Mae in 2017.

18,000Over 18,000 transactions financed throughout our history.


Thank You

hilary provinse evp – march 2017 berkadia · the berkadia difference. involved in every facet of...

Documents