URBAN REAL ESTATE ADVISORY GROUP

Transcription

1 URBAN REAL ESTATE ADVISORY GROUP Mixed-Use Development Acquisition Support Repositioning Product Innovation Portfolio Optimization Anchor Institutions Downtown Revitalization Public Private Partnerships AUSTIN LOS ANGELES ORLANDO WASHINGTON, D.C.

2 OVERVIEW For over 45 years, RCLCO (Robert Charles Lesser & Co., LLC) has been the first call for real estate developers, financial institutions, public sector entities, private investors, anchor institutions, and Fortune 500 companies seeking strategic and tactical advice regarding property investment, planning, and development. As the leading independent real estate advisory firm in the nation with experience in international markets we provide end-to-end advisory and implementation solutions at an entity, portfolio, or project level. The Best Minds in Real Estate Year Opened 1967 Office Locations Washington, D.C. Austin, TX Los Angeles, CA Orlando, FL RCLCO has expertise in five major areas: Urban Development, Community and Resort Development, Management Consulting and Litigation, Public Strategies, and Institutional Real Estate Advisory. Our multidisciplinary team combines real world experience with the analytical underpinnings of the firm s thousands of consulting engagements to develop and implement strategic plans that strengthen our client s position in a market or sector, add value to a property or portfolio, mitigate price erosion, and strengthen a client s position in the case of an acquisition, disposition, or legal case. Staff 50+ Advisory Groups Community & Resort Institutional Urban Real Estate Strategic Planning & Litigation Support Public Strategies Each day, our consultants apply the knowledge gained from our body of work along with the insights from our proprietary research which includes trends analysis, consumer research, project/portfolio performance metrics, real estate forecasts, etc. Our foremost goal is to add value to our clients real estate activities at every point in the market cycle. We constantly refine our concepts and methods in order to identify the best means for helping our clients gain a competitive advantage in the marketplace. Furthermore, our extensive network of clients, colleagues, professionals, and public officials, in the United States and abroad, provide us with a unique and comprehensive outlook on the industry not to mention unmatched access to the best minds in real estate. Since we opened our doors in 1967, RCLCO has been governed by our core values. We believe that excellence, integrity, honesty, respect, exceeding expectations, and quality are great goals that all firms must possess. These goals and values shape the culture and define the character of our firm. They guide how we behave and make decisions. Affiliations Urban Land Institute Pension Real Estate Association International Economic Development Council National Multifamily Housing Council Society for College and University Planning American Planning Association Association of Florida Community Developers Core Values Adding Value to Our Clients Achieving Excellence and Innovation Enjoying Our Work Promote Greater Sustainability Mission Our mission is to help our clients make strategic, effective, and enduring decisions about real estate.

3 URBAN REAL ESTATE In 1967, Bob Lesser, then an architect and developer, was asked to evaluate the potential uses for the center of the new town of Thousand Oaks, California. He found that the creativity and financial imagination required for the study was extremely stimulating so much so that he founded Robert Charles Lesser & Co. (now RCLCO) to provide research, analysis, and development recommendations. Today RCLCO provides advisory services for all forms of real estate across a wide spectrum of geographic settings. Understanding the unique forces that create the conditions for the urban form, and modeling the direction, pace, and character of that growth, have been driving passions of the firm since its founding. RCLCO brings a unique mix of services and perspectives to the nation s leading developers and investors in the urban and suburban marketplace. The hallmark of our urban development practice is a sophisticated understanding of the trends driving the consumer s rediscovery and embrace of American downtowns, and the forces leading to the densification of its most vibrant established suburbs. Our approach to helping our clients understand urban development opportunities begins with our MetroLogic tool, and relies heavily on our proprietary quantitative demand models to understand the pace of new development uptake. We also bring sophisticated modeling and scenario testing to bear in helping our clients solve for a financially optimized mixed- or multi-use program within the marketing and cost feasible constraints of the relevant market. We undertake leading edge consumer research to pinpoint demand drivers, create segmentation models, understand synergy among uses and their premium creating potential, and to identify breakthrough branding strategies. Expertise Apartments, Condominiums Townhomes & Dense Single-Family Office Retail and Town Center R&D/Industrial Mixed-Use Lifestyle/Entertainment Centers University/Medical Campus-Related Development Services Metropolitan Growth Trends Analysis MetroLogic Market, Economic, & Financial Analysis Project Segmentation, Positioning, & Pricing Builder Program Strategies Consumer Research Fiscal & Economic Impact Analysis Acquisition Support Repositioning Strategies Strategic Planning Portfolio Analysis Valuation Services Performance Audit Litigation Support Services Implementation Services RCLCO s Urban Development group is also called upon by the nation s leading institutional investors, REITs, pension fund advisors, and private owners to set acquisition strategies, help inform portfolio optimization, underwrite acquisitions, and model growth and income potential. We are unique among firms operating in the space in that our understanding of high-density residential development and investment, and the trends driving who lives in America s urban places and why, are as sophisticated as our understanding of commercial asset classes.

4 RCLCO METROLOGIC TM More than ever, private investors, developers, and public officials need clear optics on how metropolitan areas are likely to grow and evolve over time as context for critical decisions. Metropolitan area evolution has implications for the viability of the land uses within a master-planned community, including whether or not the property has the potential to become a central place in the region what RCLCO has deemed a Metro Core. MetroLogic TM Analysis Simulation MetroLogic provides a unique framework for thinking about real estate investment and development decisions: Trend Spotting RCLCO MetroLogic Real Estate Economics Developers and investors use this knowledge to guide acquisition and investment decisions, as a property s position relative to a Metro Core has a substantial bearing on future land use, demand, and underlying value. In those instances where assets have already been acquired, the same principles apply, as an asset s value trajectory will be influenced by its position inside, near, or at the periphery of a Metro Core. By understanding how particular Metro Cores are likely to evolve over time, jurisdictions can better plan for that evolution. MetroLogic helps to anticipate where new Metro Cores are needed and/or likely to emerge. Once it s known that a key job center is likely to emerge in a location, the level of services, shopping, support, and residential development to sustain it can be projected. Understanding the spatial influence of Metro Core evolution can help identify where economic development dollars should be focused to gain the most leverage and metro region benefits. Market Analytics RCLCO s MetroLogic provides a much improved framework for making real estate investment and development decisions, relative to conventional market research methods. Metro Cores, the key regional centers of influence, impact real estate investment opportunities. This includes the degree to which a property has the potential to become a central place in the region. RCLCO s MetroLogic technology allows for full compatibility with existing GIS platforms and combines RCLCO s best-inclass consumer research and trendspotting knowledge base with sophisticated market analytics and real estate economics. To evaluate the outcome of an investment or large scale development effort, RCLCO s Dynamic Real Estate Scenario Impact Modeling (DR. SIM) allows users to simulate the impact of catalytic investments on their projects as well as upon metropolitan development patterns.

5 MIXED-USE Development solutions in compelling locations often call for a mix of real estate products which may either be vertically integrated in denser urban nodes or horizontally integrated in suburban nodes that possess central place-making qualities. Typically, the set of real products which comprise mixed-use developments include at least two or more of the following products: retail, office, hotel, residential condominiums, and apartments. The challenge with mixed-use development is in understanding how the component parts build up to a whole that is greater than the sum of its parts. A further challenge is presented in the complexity of execution, and the limited flexibility that developers or buyers of existing assets have in morphing these assets to respond to emerging market realities. RCLCO understands the market feasibility complexities of mixeduse developments and has the unique capability to evaluate each component and test its market worthiness with a goal of identifying a financially optimized product program, or understanding the potential performance challenges when underwriting an acquisition. Our market research services look at market depth and the competitive environment to arrive at the appropriate market positioning for each product, together with supportable development scale, pricing, and programming which at a minimum examines unit mix and size. We have the financial feasibility expertise to determine overall returns on investment from the collective real estate products, and equally as important, to isolate the returns by product and measure profit contributions. Because the combination of uses is synergistic and thereby enhances place-making, our financial models incorporate premiums reflecting this distinctive quality. RCLCO is uniquely positioned to unlock the market and financial questions and opportunities relating to successful mixed-use developments. Selected Project Experience Landmark Mall, Alexandria, VA Working with the Howard Hughes Company, the owner of this aging enclosed mall in a strategic urbanizing location, on understanding the demand forces governing redevelopment opportunities and to develop a financially optimal mix of uses for the asset including a retail, office, and housing strategy. Major U.S. Private Equity Fund Provided due diligence and market potential underwriting for acquisition of a stalled largescale mixed-use project in Las Vegas, Nevada. Regent Square, Houston, TX Conducted a market feasibility study for Regent Square, an infill, mix-use development in Houston. The twenty-four acre garden apartment site is now planned for redevelopment into a mixed-use community with plans for over 1,000 residential units and 500,000 square feet of retail and office space. Assembly Square, Somerville, MA Supported Federal Realty in identifying an optimal mixed-use development program for this complicated infill site taking account of political and market realities, as well as the firms unique track record in placemaking. The Braevern, Bellevue, WA Worked closely with management of Schnitzer West to optimize the development plan and identify the highest and best mix of office, retail, and residential for this prime redevelopment opportunity, as well as to evaluate and assess the economic impact of several branding strategies.

6 TRANSIT-ORIENTED DEVELOPMENT More than 15 years ago, RCLCO crafted premium analyses for emerging transit cores for private developers, estimating potential future values that took into account demographic shifts, lifestyles, and real estate trends. Today, RCLCO s thought leadership and applied consulting has helped give public and private stakeholders the land use and economic forecasts needed to accurately program land use, zoning, and real estate decisions around newly-developed and yet-to-be developed transit nodes, creating value for private sector developers and allowing public-sector actors to appropriately harness market forces with good policy decisions. We have programmed countless TOD planning areas and underwritten TOD projects from New York to California, and authored some of the nation s leading research on the economic, financial, and fiscal ROI of transit investments. In Washington, D.C., we innovated private financing models that are being used to offset the capital expense of a 37-mile streetcar system. In Charlotte, NC, our work gave public and private stakeholders the land use and economic forecasts needed to accurately program land use, zoning, and real estate decisions around a new light rail system. Selected Project Experience Washington, D.C. Streetcar System Produced capital financing plan and publicprivate partnership funding structure for the Washington, D.C. Streetcar System. Houston, TX Intermodal Station Created development forecast and implementation strategy for the Houston Metro Intermodal Station in Downtown Houston. Charlotte, NC Transit System Constructed system-wide development forecast and implementation strategy for Charlotte LRT, BRT, and commuter rail station areas. Loudoun County, VA MetroRail Extension Conducted development potential modeling and fiscal impact analyses to evaluate potential public funding for the proposed Metro extension from Dulles Airport through Loudoun County. In Cincinnati, OH, we placed fixed-rail transit as a key element of the city s Economic Development Strategy, resulting in a successful TIGER grant for downtown streetcar development. Currently, RCLCO is developing innovative methodologies to structure capital financing via structured partnerships and value capture, in effect finding ways for private sector land owners to pay for the capital and operating expense of transit while continuing to reap significant returns on their investment both transit and otherwise.

7 APARTMENT DEVELOPMENT Powerful demographic trends and changing urban preferences combine to create compelling apartment development opportunities over the next five to ten years. The highly influential demographic group, Generation Y (those born between 1979 and 1996) totals about 80 million and this wave of young households will be entering the housing market as renters during this decade. RCLCO s consumer research demonstrates that these young households prefer urban living. Additionally, vacancy rates in many U.S. metropolitan areas have held up very well during this decade in response to the younger households entering the market and a shift from ownership to rentals resulting from the recent severe economic downturn. Simultaneously empty nesters and mature households are driving opportunities for new and targeted rental apartment and serviced living solutions both in urban centers, the suburbs, and mature resort locations. All these factors taken together suggest a busy decade for this nation s apartment developers and operators. RCLCO has been serving the apartment industry for more than four decades and evolving its services as a thought leader and marker expert. RCLCO s hallmark in this space is bringing a sophisticated understanding of evolving renter psychographics and product wants and needs, and a methodology for thinking about market segmentation, to help the nation s leading developers and investors identify and create projects that outperform the broader markets and minimize exposure to the economic cycles. We have evolved our demand-side analyses to reflect a wide range of socioeconomic factors all key to niche existing markets and uncovering new ones. We see opportunities for greater market segmentation and help our clients anticipate and respond to major trends including urban preferences and public transit growth, facilitating new development that targets selective market segments. Selected Project Experience The Bozzuto Group RCLCO assists this leading multidisciplinary multifamily housing company revise and refine its corporate strategy with a major strategy overhaul every five years and strategy audits annually. Archstone RCLCO is on call to Archstone s development group to understand renter dynamics and depth of demand when projects require innovative or untested product solutions, in new or unproven markets, or when rental apartments are integrated into mixed-use projects. Lowe Enterprises Assisted Lowe in developing a project concept and devising a business plan for a residential/ hospitality hybrid concept that would serve as a high-service short-term housing solution in prime urban locations. Crescent Resources RCLCO is working with the new student housing group of Crescent on understanding customer demand characteristics, developing innovative projects, and confirming the feasibility of housing oriented to colleges and universities throughout the United States. RCLCO also brings our process for strategic planning to assist players in the rental housing space address concerns of geographic deployment, enterprise level performance optimization, and portfolio optimization and risk management.

8 CONDOMINIUM DEVELOPMENT During the last decade, condominiums evolved into a multisegmented residential product as demographics, together with the rise and greater appreciation of urban place-making, combined to encourage new high-density for-sale development across the country. Condominiums represent a highly flexible product enabling developers to offer varying prices that reflect differing sizes and finishes, and have applications in city centers, emerging neighborhoods, and in suburban energy centers. While condominium sales prices fell similar to other forms of homeownership during the recent economic downturn, we view the condominium product as a market-viable development form in this nation s urban areas. The macro trends provide powerful tailwinds younger households that our consumer research shows favor urban areas, particularly encompassing 24/7 qualities; growing public transit systems in our cities that will promote transit-oriented development and create a rich setting for condominiums; and baby boomers that covet the lock and leave quality and the lifestyle changes created by condominium living. RCLCO is an industry leader in evaluating condominium market opportunities we have the capability and experience to market position a condominium concept, provide the programming (unit types and sizes), and price every unit. Our demand analyses are extensive and permit the full understanding of market segmentation enabled by this product type. Our pricing models build on our experience and set to maximize total revenues from various pricing premiums that reflect our recommended product programming and the physical characteristics of the concept itself. We assist developers and their investment partners in helping scale and phase projects, develop high impact amenity and service programs, and creatively finance innovative urban forsale projects. Through the balance of the downcycle, RCLCO is assisting opportunistic investors in identifying acquisition opportunities and forecasting revenue levels and timing, as well as interim operating strategies. Selected Project Experience Equity Office Properties Market feasibility analysis for development of new condominiums in greater Los Angeles, and estimated rate of price growth through the early years of the recovery. Wells Fargo Real Estate Strategic market analysis in support of a mixed-use building in downtown Santa Monica, California, including both low-income rentals and market rate for sale condominiums; this project will be among the first new condominium projects delivered in Southern California in this cycle. Client Name Withheld To support one of the first new condominium investments of the cycle, RCLCO helped a major developer forecast how much of the recent and last cycle rental apartment delivery in a key Washington, D.C. submarket might be converted to condominimums and the impact on market conditions. Acquisition of Failed Condo Building For a major national investor RCLCO developed supply and demand projections for the Miami Beach market that forecast the time to market stabilization and also achievable price for the remaining units, by quarter, over the balance of the projected sell-out period. Major Unsecured Creditor to Land and Multifamily Portfolio Estimate of current and future land and asset value associated with a portfolio of development sites and partially completed condominium properties in New York and Florida.

9 AFFORDABLE/WORKFORCE HOUSING RCLCO s consulting team offers a wealth of experience in the affordable and workforce housing space having assisted a wide variety of organizations and municipalities throughout the United States in understanding how to address gaps in provision of highquality yet affordable housing product. RCLCO has particular experience working in highly desirable and supply-constrained markets to examine the availability of for-sale and rental housing near major employment cores. For this type of engagement RCLCO employs its market research expertise to quantify any existing workforce housing gaps, projects future demand, analyzes the cost of producing rental housing in a variety of different formats, and finally provides strategies for alleviating the shortage. In recent years RCLCO has determined that despite the recession, workforce housing proximate to jobs remains unattainable for a large portion of the population in desirable metropolitan areas and select resort-driven markets. Additionally, RCLCO has intimate knowledge of the types of creative partnerships and financing structures that are required to address the affordable housing gap. From long term land leases, to inclusionary zoning, to innovative public-private partnerships, RCLCO works with each individual client to identify and implement a range of tools aimed at strategically addressing the shortage of affordable housing. Selected Project Experience ULI Terwilliger Center For Workforce Housing Studied regional workforce housing needs and housing supply and demand dynamics in several high cost markets including Washington, D.C., Boston, and San Francisco. Yampa Valley Housing Authority Completed a demand analysis for workforce housing in the City of Steamboat Springs, CO. Boulevard Group, Inc Market analysis for the redevelopment of Loveman Village as a mixed-income community; Birmingham, Alabama. Unidev Hawaii, LLC Residential market analysis for workforce housing in Waikoloa, Hawaii.

10 DOWNTOWN REVITALIZATION RCLCO professionals have played leading roles in some of the nation s most remarkable downtown turnarounds. We are passionate about cities and their downtowns, and have proven methods for infusing downtowns with new life, catalyzing employment growth, and energizing downtown entertainment and retail environs. All within a framework designed to maximize the economic and fiscal impact to the city and to the metropolitan region. Of course, RCLCO professionals go beyond simply delivering great analytics. We work hand-in-hand with stakeholders and elected officials to turn analyses into strategies, and strategies into action. In Yonkers, NY, RCLCO constructed a re-branding strategy for the entire Downtown to kick-start its creative industry economy and enhance its overall market climate for retail and entertainment investment. In Baltimore, MD, we worked with the Baltimore Orioles to provide market-feasible programming for neighborhoods adjacent to Camden Yards. In Los Angeles, CA, we worked to help launch the Watts Cinema and Education Center, an anchor for the development of the Watts/Willowbrook communities in Los Angeles. RCLCO s practice is unique in helping identify strategies in which large public investments can anticipate potential barriers to private follow-on investment, and to position cities for public- private partnership. Our work in this space is informed by our understanding of the economics of market driven development, and with our quantitative approach to forecasting development opportunity and the potential for candidate public financing strategies to lay the groundwork for that activity. Selected Project Experience Washington, D.C. Provided the market and economic underpinnings for the redevelopment of the Anacostia Waterfront, including a new baseball stadium and surrounding mixed-use neighborhoods. Gwinnett County, GA Commercial district revitalization strategy for a variety of urban districts, based on real estate market and fiscal impact analyses. Albuquerque, NM Conducted the vision planning, consumer research, market analysis, and stakeholder engagement. Resulted in the fastest downtown turnaround in the country s history with $300 million in new development activity to-date. Houston, TX RCLCO helped develop a livable centers plan for the 4th Ward neighborhood in central Houston. Our role was to provide the market and economic context for the long-term implementation plan, and to ensure that the final plan is grounded in market realities while fulfilling the needs of the local community. Oceanside, CA RCLCO worked closely with the city and planning consultants to develop a vision and positioning strategy for the downtown and to forecast demand potential for key land uses.

11 ANCHOR INSTITUTIONS Over the last decade RCLCO has been called upon with increasing frequency by universities, hospitals, family trusts, and other public owners of real estate to help them understand and unlock the inherent value of their non-campus property holdings, and to achieve the social, political, and other non-financial goals of the institution. RCLCO understands the unique mission and objectives of institutions of higher learning, and we are also familiar with the organizational structure and decision-making framework that exists for such entities. We have a proven ability to define an overall real estate strategy and analyze and explain specific development, liquidation, and recapitalization opportunities to an institution s administration, its stakeholders, and its financial supporters. RCLCO has also developed a significant expertise in understanding the economics of college and university towns and neighborhoods, and has proprietary in-house knowledge regarding: Student retailing and spending patterns and strategies to create college-edge retail neighborhoods. Faculty and staff housing preferences, and incentive strategies for encouraging private housing reinvestment in local communities. A process and methodology for city and institution to work together on a jointly commissioned and binding redevelopment strategy. Services Real Estate Portfolio Analysis Market Feasibility Analysis (Residential and Commercial) Highest and Best Use/Valuation Analysis Economic Development/Public Investment Strategies Fiscal and Economic Impact Analyses Retail District Revitalization Strategies Strategy Planning for Real Estate Departments and Companies Development Partnerships Selected Project Experience Florida Hospital, FL In early 2006, RCLCO conducted a market assessment and confirmed a strong opportunity for Florida Hospital to develop an urban mixeduse village incorporating residential, retail, office and hotel uses. RCLCO also drafted a preliminary program, and recommended that Florida Hospital undertake the development in partnership with a third party development firm in light of the considerable expertise required for such development. University of Minnesota, MN Since early 2008, RCLCO has worked closely with the University to understand the nature and scale of the real estate financial opportunities at UMore Park, a large-scale New Town on a former university site. RCLCO explored the time frame over which such opportunities might present themselves, and the financial returns that could be realized as a result of those opportunities. Kamehameha Schools, HI RCLCO has been an advisor to Kamehameha Schools (the Bishop Estate) on strategic portfolio issues as well as project-specific opportunities. RCLCO has provided market and financial feasibility analysis, transaction/ joint development advisory services, and consumer research for various large-scale parcels in Kamehameha s portfolio. Emory Village, GA RCLCO was retained by Peter Drey + Company to work together with a team of consultants to develop a Revitalization Plan for Emory Village under the Livable Centers Initiative (LCI).

12 RETAIL/TOWN CENTERS In the last real estate cycle there was a dramatic re-centering of retail development activity focusing driven by the rapid rediscovery of America s downtowns and a realization that many existing and high spending density suburbs were under-served for retail. We believe that this phenomenon will be accelerated in over the next decade. RCLCO s rigorously analytical approach to forecasting demand for real estate development, and strategies for repositioning or repurposing, are particularly valuable to developers and investors contemplating the opportunity for, or performance potential of new or existing retail centers, often in a mixed- or multi-use environment. Questions that we are often called upon to help answer include: The pace at which additional retail development opportunities will materialize in greenfield developments or in planning new exurban energy cores well ahead of new household critical mass. Assessing the performance potential of in-town urban retail concentrations or assets in light of ongoing neighborhood revitalization or increases in density. Strategies for optimizing the performance of existing retail assets or repositioning them for the current market and lifestyle realities. Strategies for seeding retail, or create amenity retail in markets/context where retailers have been slow to respond to opportunity or where retail is mission-driven but challenging financially. Selected Project Experience The Promenande, Charlotte, NC RCLCO was retained by owner Childress Klein to assess how the performance of this existing lifestyle center could be optimized, and to identify tenanting strategies that would boost visibility in the marketplace and expand the trade area. Summerlin Town Center, Las Vegas, NV The new owners of this storied asset are working with RCLCO to understand the post-recession development strategy for the town center, including potential strategies for preserving or repurposing the partially completed construction on the site. University Village at the University of Southern California, Los Angeles, CA RCLCO was asked by the university administration to help develop a product program for a 35-acre retail-driven town center development, and also to develop a financial model isolating the financial impact of joint venturing the property with a developer partner. Charles Pointe, Bridgeport, WV The developer of this large scale mixed-use project the first in West Virginia retained RCLCO to reprogram the town center component of the project, and to develop a tenanting strategy that takes account of local market dynamics and that could be implemented early in the economic recovery.

13 PUBLIC-PRIVATE PARTNERSHIPS Public-Private Partnerships are now more important than ever in order to accomplish planning and economic development objectives, and RCLCO has been at the forefront of this field for over two decades. RCLCO s core customers are private sector investors, developers, and builders, and our professionals are intimate with how the private sector goes about financing development. We bring this knowledge to the table in our public-private partnership and implementation strategies. We find development strategies for public projects that are attractive to private sector partners and are well-versed in communicating upside potential, as well as acting as intermediary between public and private players. Amongst our private sector developer and investor clients, RCLCO s core value-add is the ability to provide an independent and objective forecast of development potential and definition of market rate returns that all parties can be comfortable with as a basis for partnership. We are also called upon to help public and private concerns understand one another s financial and nonfinancial objectives and the unique way in which different parties process information and opportunities. We have worked with public and private actors across the nation to structure partnerships and transform visions into reality. Selected Project Experience Big Darby Town Center, Columbus, OH Structured public-private partnership to create town center development; required land owners to contribute land as equity into deal that involved creation of catalytic development entity (New Community Authority) and sought private developer involvement. Great Streets, St. Louis, MO Structured PPP to transform eight miles of suburban arterial into four village nodes. Authored intergovernmental agreement between five cities to plan towards joint development entity to manage PPP cash flows and bonding capacity as well as private land owner compensation from individual deals. Mt. Vernon Square, Washington, D.C. Strategy for PPP to manage and develop Mt. Vernon Square District, including use of New Market Tax Credits and Renewable Energy Tax Credits as well as structure of a management entity and participation strategy for private land owners.

14 OUR KNOWLEDGE Metropolitan Growth Trends Consumer Research Housing Trends Master Planned Communities Transit-Oriented Development Strategy Planning for Real Estate Companies

15 LEADERSHIP Adam Ducker Managing Director Director of Urban Real Estate Advisory Group Leonard Bogorad Managing Director Adam Ducker is a Managing Director of RCLCO with over 17 years of experience. He directs the Urban Real Estate Advisory Group and his areas of specialization include high-density housing, retail development, and hospitality uses. He has particular depth of expertise in anchor institution-related development, in high-density resort towns, and in urbanizing suburban locations. Len Bogorad is a Managing Director of RCLCO with over 25 years real estate consulting experience. He specializes in market and financial analysis and valuation of residential, retail, office, hotel, industrial, and mixeduse developments; metropolitan development trends; fiscal and economic impact analysis; and economic development strategies. RCLCO s Urban Real Estate Advisory is distinguished by sophistication in forecasting housing, retail/ commercial and hospitality demand in revitalizing cities and development corridors, in understanding the unique set of circumstances that create vibrant mixed-use environments, and in the financing mechanisms and public/private partnerships that are relied upon to achieve them. Len has directed hundreds of consulting engagements, including work on such notable projects as Johns Hopkins Science City, LifeSci Village, University of Maryland Town Center, Downtown Silver Spring, Reston Town Center, and National Harbor, as well as numerous particular residential, retail, office, hotel, and mixed-use and master-planned community developments throughout the United States. Adam has a specialized expertise in understanding the interrelation and unique marketing and operating synergies of residential, hospitality, and retail/attraction environment, in small scale urban locations. A native of the New York metropolitan area, Adam graduated from Columbia University with Bachelor s and Master s degrees. Prior to joining RCLCO, Len was Senior Vice President and Director of the Washington office of Real Estate Research Corporation (RERC). Before joining RERC, Len served as Director of Housing and Neighborhood Development for the Metropolitan Area Planning Council in Boston; Senior Staff Associate for the Connecticut Conference of Municipalities; and development consultant for a firm in New Haven, Connecticut. Adam is an active member of the Urban Land Institute (ULI) and vice-chair of the Mixed-Use Development Council (Purple), National Multi Housing Council (NMHC); Society of College and University Planners (SCUP); and other organizations. He is a frequent speaker on topics ranging from place-making to urban redevelopment to retail trends to in-town housing. His writing has been widely published and quoted in publications such as The New York Times, The Wall Street Journal, Urban Land, California Real Estate Journal, Multifamily Executive, Resort and Recreation, and National Hotel Executive. Len received his Masters in City Planning from the University of Pennsylvania and his Bachelor s Degree from Harvard University. He is a long-standing member of the Urban Land Institute (ULI). Len has spoken for organizations such as the Urban Land Institute, and has been published in The Journal of Real Estate Development, Mortgage Banker, Corridor Real Estate Journal, Industrial Development, Tax Credit Advisor, The Washington Post, Real Estate Finance Journal, Urban Land, and Washington Business Journal.

16 LEADERSHIP Robert Gardner Managing Director Charles Hewlett Managing Director Bob Gardner is a Managing Director of RCLCO with over 35 years of real estate development and consulting experience. Bob specializes in all residential commercial, economic and litigation support assignments dealing with market evaluation, market positioning, economic base assessment, financial feasibility, and fiscal implications of commercial and residential real estate projects. RCLCO is very active in urban infill development and economic development, and Bob manages those assignments, particularly in Western U.S. markets. He has headed up market analyses on virtually all the significant mid- and high-rise luxury condominiums for the Los Angeles region s most prominent developers, e.g., Forest City, Lennar, Intracorp, Gerding-Edlen, Related Companies, Fifield Realty, Kor Group, SunCal, etc. Bob is particularly involved on highest and best use engagements where market trends are given residual land value expressions. Bob s professional experience provides an outstanding match with respect to TOD corridor analysis where the results of these efforts underpin strategic planning (acquisition and disposition) and/or project planning goals (development recommendations, market positioning, etc.) for public and private clients. Charlie Hewlett is a Managing Director of RCLCO. His areas of specialization include: corporate strategic planning; multifamily housing market analysis (both rental and for-sale); metropolitan development trend analysis; economic, market, and financial feasibility analysis for single-, multiple-, and mixed-use residential and commercial real estate developments; consumer research; fiscal impact modeling; product program positioning; and market feasibility analysis. Charlie has over 25 years of experience in real estate and has consulted on a broad spectrum of commercial and residential properties in most major metropolitan regions in the country. He has particular expertise in portfolio optimization and geographic deployment strategy; which is outlined in his recent book, Strategic Planning for Real Estate Companies. Prior to joining RCLCO, he was president of Lofty Builders, Inc., a real estate service company concentrating in renovation, rehabilitation, and management of investment real estate properties in the Boston metropolitan area. Charlie graduated from Brown University in Providence, Rhode Island. Bob holds a Master Degree in City and Regional Planning from U.C. Berkeley and a Bachelor s Degree in Economics from UCLA. Bob is currently a member of ULI s Urban Development/ Mixed-Use Council and serves as a member of panel advisory sessions held at ULI s national meeting. Previously, he served on the Board of Directors of the Los Angeles Headquarters Association, NAIOP (National Association of Industrial and Office Parks)/Los Angeles Chapter and Westside Urban Forum (Los Angeles). He is active locally with ULI s Los Angeles District Council. He is a member of the Urban Land Institute and a frequent speaker at ULI as well as other industry organizations. Charlie has written articles published in the Corridor Real Estate Journal, Urban Land, and publications of the National Multi Housing Council. He is the author of Strategy Planning for Real Estate Companies, a ULI publication released in March 2008.

17 LEADERSHIP Gregg Logan Managing Director Director of Community and Resort Advisory Todd LaRue Managing Director Gregg Logan is a Managing Director of RCLCO with over 25 years real estate development and consulting experience. Gregg is the national leader of RCLCO s Communities Practice Group, which consults with land owners, developers, investors, regional planning entities, cities, counties, and others on strategic planning, economic development, market and financial feasibility, and large scale regional visioning. Gregg has conducted and supervised consulting assignments throughout the United States and abroad. Gregg is a member of the Washington, D.C.-based Urban Land Institute (ULI) and has chaired several ULI district and product councils. He is a contributing author of several ULI books, including Transforming Suburban Business Districts, Housing for Niche Markets, and Developing Active Adult Retirement Communities, and he participated as a market specialist to help create ULI s Ten Principles for Developing Successful Town Centers. He has served as a member or chair for several ULI Advisory Services Panels. Gregg has published articles and/or been quoted as an industry expert in The New York Times, San Francisco Examiner, The Washington Post, The Wall Street Journal, Real Estate Today, Urban Land, The Atlanta Constitution, Atlanta Business Chronicle, and Builder, with regard to a variety of economic development, land use, and real estate related issues. Gregg is a graduate of UCLA. He is currently teaching The Economics of Urbanism at Rollins College Hamilton Holt School in Winter Park, Florida, in the Masters of Civic Urbanism program. Todd joined RCLCO in 2004 and leads our Austin, Texas office. Todd manages and directs engagements for developers, land owners, investors, and public sector entities seeking strategic development, investment, and/ or planning advice regarding their real estate. His work is focused on providing strategic guidance for masterplanned communities, high-rise mixed-use developments, resorts, and other complex, multi-use, large-scale land use challenges. For these engagements, he conducts highest and best use analyses, market opportunity analyses, consumer research, economic development assessments, financial analyses, fiscal impact analyses, metropolitan growth trends analyses, and various other analytical tasks to help guide clients planning decisions and development strategies. Prior to joining RCLCO, Todd s professional career includes over seven years of experience in construction management with Skanska in Atlanta, GA and W. H. Bass, Inc. in Norcross, GA. Much of his work was concentrated on managing ground-up construction projects in retail, banking, education, and telecommunication as well as interior build-outs of high-rise office buildings. He received his Master of Business Administration (finance and real estate) from Emory University and a Bachelor of Science in Civil Engineering from the University of Virginia. He is an active member of the Urban Land Institute, serving on ULI Austin s Advisory Board and the Community Development Council (CDC-Silver), and has been a guest speaker/lecturer/panelist at numerous real estate industry events and universities.

18 LEADERSHIP Taylor Mammen Managing Director/Director of Institutional Advisory Taylor Mammen is a Managing Director based in RCLCO s Los Angeles office and currently serves as the firm s Director of Institutional Advisory Services. Since joining RCLCO in 2006, he has directed and managed consulting engagements in each of the firm s practice areas, across a wide range of geographies. Taylor currently manages the relationship with the firm s largest institutional investor client, including directing both investment and asset management responsibilities for its approximately $5 billion real estate portfolio. He also serves on RCLCO s Executive Committee, with responsibility for implementing firm strategy. Taylor joined RCLCO after serving as director of research for a boutique government relations consulting firm in Washington, D.C. and working with the Boston Redevelopment Authority on a public-private initiative to revitalize and re-knit downtown Boston in response to the Big Dig. He received his Masters in City Planning from the Massachusetts Institute of Technology and a Bachelor of Arts in Political Science from Brigham Young University. He is an active member of the Pension Real Estate Association (PREA) and the Urban Land Institute, serving on ULI Los Angeles Advisory Board and the Community Development Council (CDC-Blue).

19 CONTACT US Contact: ADAM DUCKER 7200 Wisconsin Avenue Suite 1110 Bethesda, MD (240) Offices: AUSTIN TODD LARUE 221 W. 6th Street Suite 2030 Austin, TX (512) LOS ANGELES ROBERT GARDNER Wilshire Boulevard Suite 1650 Los Angeles, CA (310) ORLANDO GREGG LOGAN 964 Lake Baldwin Lane Suite 100 Orlando, FL (407) WASHINGTON, D.C. ADAM DUCKER 7200 Wisconsin Avenue Suite 1110 Bethesda, MD (240)

20 WASHINGTON, D.C Wisconsin Avenue Suite 1110 Bethesda, MD Phone (240) Fax (240) AUSTIN 221 W. 6th Street Suite 2030 Austin, TX Phone (512) Fax (512) LOS ANGELES Wilshire Boulevard Suite 1650 Los Angeles, CA Phone (310) Fax (310) ORLANDO 964 Lake Baldwin Lane Suite 100 Orlando, FL Phone (407) Fax (407)