A Perspective on Current Real Estate Investment Strategies
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Transcript of A Perspective on Current Real Estate Investment Strategies
©UFS
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