Creating value. Development and Asset Strategy (DAS) Practice

Transcription

1 Creating value Development and Asset Strategy (DAS) Practice

2 Land and development brokerage Specialized skills - National coverage Developing value Clients Properties Owners and Investors Residential, Retail, Office and Industrial Corporate Owners Raw Land Funds, Banks and other Institutions Urban Infill Sites Higher and Better Use Property Private Equity Mixed/Multiple Use Property Properties sold 378 Team members nationwide 30 ATL BOS CHI LA JLL-DAS.com Average annual sales $250M Combined years of experience 220 Development assets require special skills... Income and expenses relating to development assets differ substantially from market to market and property to property - more so than traditional income producing assets - we have the market knowledge, experience and modeling tools to understand real value The pool of buyers for development assets is much wider and deeper than the traditional institutional marketplace - we have access to the expanded market Environmental issues and entitlements greatly affect value - we have the experience and knowledge to understand how to navigate the complicated landscape...we have these tools.

3 Redevelopment Roswell East Roswell GA Under Contract Brokerage Services Acquisition Disposition Urban Revitalization Inman Park Atlanta, GA $16M Corporate Relocation or Expansion Specific Investment Criteria for Land or Development Assets Excess or Underutilized Assets Higher and Better Use Assets Industrial-to-Retail Ryerson Steel Chicago, IL $15.3M Underwriting, Analysis, Due Diligence and Closing Support Merger, Acquisition or Foreclosure Assets Confidential or Special Purpose Assemblage Sale for Capital Release or Reinvestment Urban Infill Santa Monica Los Angeles, CA $59M How we create value for land and development assets Disposition Complicated assets with current or future higher and better use potential Assets where mixed or multiple uses require experts that understand them all Acquisition Site selection, negotiation and purchase execution Due diligence services Advisory Identification and classification of assets by strategy Higher and better use/valuation advisory Development and Asset Strategy Practice

4 Development advisory and consulting Providing opportunities from complexity Contributing knowledge Complex Situation No Clarity Advisory assignments 163 Hours of advisory work 13k JLL-DAS.com Aggregate advisory asset value $3B Post graduate education years 56 Knowledge produces value... Complexity and lack of information prevent effective and efficient decision making introducing risk and limiting opportunity We have the tools, experience and understanding of the market to enable clients with actionable guidance We take into account short, mid-term and long-term positioning...we give you access to both.

5 Corporate Campus Highest and Best Use KBR, Inc. Houston, Texas Data, Underwriting and Modeling Produce Actionable Advice and Guidance - Clarity History Potential Uses Portfolio Review National Asset Management Agency (Ireland) Nationwide Entitlements Ownership Market Environmental Strengths Opportunities Value Hospital Site Highest and Best Use United Regional Healthcare System Wichita Falls, TX Weaknesses Threats Position Development Analysis Capital One Washington, DC How we advise clients Advisory services Highest and best use analysis Valuation reconciliation and Opinions of Value Portfolio, notes and real estate underwriting Development feasibility Proforma creation and review including sensitivity analysis Due diligence Cash flow waterfall analysis Note sale versus foreclosure consulting Development and Asset Strategy Practice

6 Resort development expertise Jones Lang LaSalle global resources Providing guidance in resort locations Americas 68 offices 7 countries 12,500 employees Asia Pacific 55 offices 13 countries 17,200 employees 68 offices 27 countries 4,500 employees Europe, Middle East and Africa Average transaction size $19M Total entitled units sold 7,000 JLL-DAS.com Total proceeds $196M Feet of coastline sold 150k Property in a resort location is complicated... Local municipalities and/or foreign governments view and treat resort assets as a special class of property with special scrutiny and extraordinary demands The market for resort property is much broader and more difficult to access than markets for traditional commercial real estate Underwriting a resort development requires special tools, experience and knowledge...this is where our group excels.

7 Resort locations require special considerations Resort Hotel and Development Maui Prince Resort Makena, Hawaii $575M Government Property Considerations Taxes Foreign Ownership Permits and Visas Title Entitlements Politics Utilities Access Environmental Topography Distance to Services Adjacent Ownership Construction Costs Disaster Risk Operating Expenses Labor Market External Factors Debt Availability Equity Liquidity Competing Supply End-product Demand Trends in Tourism/Second Home Market Market Dynamics Second Home Ranch Development Victory Ranch Park City, Utah $17M Example Offering Memorandum, 2012 south beaches southampton bermuda confidential offering memorandum Resort Development Laguna del Mar Puerto Penasco, Mexico $70M Master Planned Development- Joint Venture Benton Harbor, Michigan How we create value for resort land Disposition Development or redevelopment properties with scale to draw international interest Excess land or redevelopment opportunities associated with operating assets Recapitalization through partnership or joint venture Acquisition Site selection, due diligence and purchase execution Advisory Financial modeling and feasibility analysis Higher and better use/valuation advisory Development and Asset Strategy Practice

8 Rural and transitional land specialty Engaging the market Resource: TIMOs REITs Corporates Paper/Pulp Private Endowments Jones Lang LaSalle DAS Group Position Building value in every acre Traditional Real Estate: Insurance and Pensions HNW/Private Equity Endowments Developers/Subdividers 1031 and TIC buyers Traditional REITs Rural properties sold 3,000 Total proceeds from rural sales $600M JLL-DAS.com Number of acres sold 350k Range of acreage 10-10K The world outside cities is changing... Owners and investors are attributing value to more than just resource production - development potential, conservation and recreation may add value above the industrial production of rural property New ownership structures such as TIMOs and REITs require new focus on risk, returns and investment horizons Rural and transitional areas are attracting interest from new and traditional real estate investors such as private equity, traditional REITs and other organized equity funds...this is where we offer unique solutions for our clients.

9 WA Non-Strategic Holdings Opportunities for disposition Higher and Better Use Nationwide land sales program 13 States 8 years of experience OR NV CA ID AZ UT MT WY CO NM ND SD NE KS OK TX MN WI IA IL MO AR MS LA ME VT NH NY MA MI CT RI PA N J IN OH NJ WV DE VA MD KY NC TN SC AL GA FL Core Holdings Merger and Acquisition Excess 1031/ Investment Capitalization Rural HBU Triumph Silver Mine Sun Valley, ID Balance Sheet Reduction Jones Lang LaSalle landing page on major listing service Ranch Sale Fuller Ranch Missoula, MT 1,200 acres Advisory Balls Ranch Sierra County, CA 7,700 acres How we create value for your land Disposition Large complicated assets with current or future higher and better use potential Programmatic disposition of geographically diverse assets Acquisition Site selection and purchase execution Due diligence services Advisory Opportunity identification, asset classification and disposition advisory Higher and better use/valuation advisory Development and Asset Strategy Practice

10 Portfolio disposition program management Moving Parts in a Traditional Organization Asset Management Brokers Listing Agreements Marketing Management Compliance Pricing Uncertainty Vendors Contracting Appraisals BOVs/BPOs Negotiations Closing Budgets Creating leverage for large portfolios Uncertainty Inefficiency Redundancy Lack of Scalability Total portfolio assets transacted 3,100 Average portfolio size 200 JLL-DAS.com Total proceeds from portfolio sales $600M Properties on the market 740 Managing a portfolio requires experience and specialized tools... Organizations require up-to-date market and property data, access to it from anywhere in the world, 24-7, and expert analysis with actionable advice Up-front pricing analysis and outsourced brokerage and property management networks enable asset managers to efficiently manage larger portfolios with less dedicated corporate resources Technology solutions need to be custom and provide information readily to groups inside and outside the organization...we give organizations instant access to the best-in-class.

11 WA Process and Technology Supported Program REIT land sales program 13 States $500M OR NV CA ID AZ UT MT WY CO NM ND SD NE KS OK TX MN WI IA IL MO AR MS LA ME VT NH NY MA MI CT RI PA N J IN OH NJ WV DE VA MD KY NC TN SC AL GA FL Value Understanding Appraisal BOV reconciliation Pre-approved pricing brackets Marketing Broker procurement and agreement execution Management of distributed broker network REO Dispositions National Bank of America $30M Negotiations Decision support Documentation and history management Contract-to- Closing Documentation Closing management REO Program National BMO Harris Bank $50M Reporting Real-time management dashboard Budgeting tools Single point of contact for asset managers Scalable without additional resource commitment from client Enable client to spend more time making decisions - automate and delegate other functions 363 Bankruptcy Sale Southeast Wells Fargo $37M How we provide value to portfolio owners Disposition Programmatic disposition of geographically diverse assets Office, Retail, Residential, Land, REO and Excess Assets Acquisition Strategic assemblage Programmatic acquisition and management for investment or other business goal Advisory Portfolio optimization and opportunity identification Development and Asset Strategy Practice

12 Development and Asset Strategy Practice Recent Transactions Urban Infi ll Development Spire Chicago, IL 2.18 Acres Retail Land Sales Program Confi dential Timberland Client Various US 300,000+ Acres Resort Development South Beaches Southampton, Bermuda 32 Acres Conservation Easement Boy Scouts Staten Island, NY 115 Acres Second Home Ranch Development Victory Ranch Park City, UT 6,444 Acres Mixed Use Redevelopment Roswell East Roswell, GA 103 Acres Brownfi eld Redevelopment General Motors Sleepy Hollow, NY 64.5 Acres Mixed Use Development Campus El Segundo El Segundo, CA Acres National contacts Tom Kirschbraun DAS National Practice Lead 200 East Randolph Drive Chicago, Illinois thomas.kirschbraun@am.jll.com Boston Scott Miller Midwest Offi ce Managing Director scott.miller@am.jll.com Jeff Adkison West Coast Offi ce Executive Vice President jeff.adkison@am.jll.com Los Angeles Chicago Web Bingham East Coast Offi ce Senior Vice President william.bingham@am.jll.com Scott Cullen Southeast Offi ce Senior Vice President scott.cullen@am.jll.com DAS Offices Atlanta Jones Lang LaSalle Corporate Offices JLL-DAS.com