The value of certainty
We re invested in advancing investors. At Berkadia, we view every market action through an entrepreneurial lens. We constantly seek out new opportunities on our clients behalf and move decisively to seize those moments. Our capital strength, market knowledge, breadth of experience and deep industry relationships ensure that we can deliver the certainty of execution that our clients depend on. BERKADIA THE VALUE OF CERTAINTY 3
ABOUT BERKADIA OUR HISTORY OUR OWNERSHIP Berkadia is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Powered by deep relationships and industrychanging technology, our people sell, finance, and service commercial real estate, providing support for the entire life cycle of our clients assets. Our unique ownership structure allows us to put the client s interests first and creates a marketplace that delivers a superior experience. In December 2009, Berkadia was formed when Berkshire Hathaway and Jefferies Financial Group acquired Capmark s (formerly GMAC Commercial Mortgage) North American loan origination and servicing business. In 2013, we acquired an investment sales platform to create one of the market s most robust commercial real estate companies. NATIONWIDE REACH, LOCAL EXPERTISE Berkadia is a joint venture of Berkshire Hathaway and Jefferies Financial Group, both of which are renowned for their capital strength and sophisticated investment strategies. Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B) is a holding company owning subsidiaries engaged in a number of diverse business activities including property and casualty insurance and reinsurance, utilities and energy, retailing and services. Jefferies Financial Group (NYSE: JEF) is a diversified holding company. Jefferies, formerly known as Leucadia National Corporation, is a global, full-service investment banking firm. Jefferies also owns and holds investments in a range of other businesses, including manufacturing, beef processing, telecommunications, real estate and energy. OUR OFFERING Our offering spans the full range of services and includes all commercial property types, with a special focus on multifamily thanks to deep relationships with Fannie Mae, Freddie Mac and HUD. Our market expertise, access to diverse sources of capital and ability to deliver flexible, customized lending and servicing solutions positions Berkadia as the ideal partner for multifamily and commercial property owners and developers. MORTGAGE BANKING P. 16 INVESTMENT SALES P. 18 SERVICING P. 20 No matter where you sell, buy or finance or where you d like to do so in the future we re there to help you make it happen. 4 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 5
The Berkadia difference. Berkadia is known for our ability to navigate the complexity of working with government-sponsored entities and noted for our excellence in the multifamily space. What many people don t realize, however, is that we re deeply involved in virtually every facet of the industry, with broad experience working with all income property types. WE ARE UNIQUELY ABLE TO FOCUS ON YOUR LONG-TERM PERFORMANCE AND STABILITY. WE HAVE ACCESS TO EXCLUSIVE ASSETS ACROSS THE COUNTRY TO HELP YOU FIND THE BEST DEALS. Because we are privately held, we are able to take a long-term view, allowing us to focus on what s best for our clients and not just what s best for quarterly earnings. As a non-bank-regulated company with unique access to a broad range of resources, we have the flexibility to respond to market changes and make non-recourse loans that can be customized to each client s unique needs and circumstances, providing the financial stability owners need in any and all conditions. Our coverage is broad, and our knowledge is deep. From acquisition to disposition, we service all commercial property types including multifamily, retail, office, industrial, affordable housing, seniors housing, student housing, manufactured housing communities and hotels and hospitality. WE COMBINE EXPERTISE AND EXECUTION TO ENSURE YOU HAVE THE BEST TRANSACTION EXPERIENCE. Powered by seasoned professionals with an average of 25 years of industry experience, Berkadia offers a full-suite investment sales advisory, an expansive mortgage banking platform and a flexible loan servicing team, making us your onestop shop for the life cycle of your asset. 6 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 7
MARK MCCOOL President, Berkadia Commercial Real Estate Services Largest Berkadia ranks as the largest non-bank commercial mortgage servicer in the nation. Honoring your commitments and doing the right thing that s how you build a business. 8 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 9
18,000 We have financed 18,000 transactions throughout our history. We use our entire financial toolbox to deliver the best possible execution. $ 15 B ADRIENNE BARR Managing Director We arranged over $7 billion of loans with both Freddie Mac and Fannie Mae in 2017, ranking us as the second largest lender with each organization. 10 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 11
Because we can advise, finance and service, we can give clients a totally seamless experience. $ 30 B MITCH SINBERG Senior Managing Director Since 2012, our Investment Sales division has closed more than 2,200 transactions, totaling $30 billion. 12 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 13
HILARY PROVINSE Executive Vice President, Head of Mortgage Banking 270+ Berkadia has over 270 dedicated investment sales and mortgage banking experts working together to ensure you benefit from their collective market and industry experience. A fantastic team, an incredible balance sheet and strong leadership. That s a recipe for success. $ 32 B Berkadia s 2017 loan origination volume was $24.6 billion, while our advisory volume was $7.8 billion. 14 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 15
BERKADIA / MORTGAGE BANKING 2017 PRODUCTION EXPERTISE Expertise for every engagement. 31 % FANNIE MAE 1 AGENCY SOLUTIONS / $16.8 B Freddie Mac Program Plus Fannie Mae DUS Seller/Servicer HUD MAP and Lean Originator With a deep bench of experienced mortgage banking professionals across the country, Berkadia has the capability to provide debt and equity solutions for commercial real estate encompassing all sizes and geographies. Our capital sources enable short, intermediate and long-term solutions to meet your needs in the acquisition, refinance, rehabilitation and repositioning of your asset(s). THAT S WHY 75% OF OUR BUSINESS CONSISTS OF REPEAT CLIENTS. BY INVESTOR TYPE 31% FREDDIE MAC 31% FANNIE MAE 14% LIFE COMPANY 7% CONDUIT 31 % FREDDIE MAC 6% HUD 6% BANK 3% OTHER 2% PROPRIETARY 2 CORRESPONDENT RELATIONSHIPS / $3.3 B 40+ Life Company Relationships Variable-Term Fixed-Rate Loans Tenured Relationships 3 HEALTHCARE SENIORS HOUSING / $1.9 B Fannie, Freddie, HUD Execution RANKED AMONG THE BEST Industry-Leading Team with Over 20 Years Experience # 1 HUD LOAN ORIGINATION 1 74 % INCREASE IN YEAR-OVER-YEAR FANNIE MAE LOANS CLOSED 74 % MULTIFAMILY 4 CONDUIT EXECUTION / $1.7 B Relationships with Leading Conduit Lenders Existing Servicing Agreements 44 5 PROPRIETARY LENDING / $587 M LIFE INSURANCE COMPANY LENDERS WITH WHOM WE CLOSED LOANS 1 HUD ranking based upon originated loans FYE 9/30/17 Customized Solutions Fixed and Floating BY PROPERTY TYPE 74% MULTIFAMILY 4% RETAIL 8% HEALTHCARE 3% OFFICE 5% OTHER 2% HOSPITALITY 2% STUDENT HOUSING 2% INDUSTRIAL/ WAREHOUSE Recapitalized and Repositioning Assets Facilitate Permanent Financing 16 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 17
BERKADIA / INVESTMENT SALES INTEGRATION Where the entrepreneurial spirit thrives. Integrated banking and capital markets platform Provides multifamily sales, capital and market expertise Full suite of services including sales, debt, equity and advisory Access to a wide array of multifamily capital products SALES EQUITY DEBT ADVISORY SUITE OF SERVICES Berkadia s comprehensive investment sales platform combines industry-leading market research and advanced technology with an elite team of skilled investment advisors. In addition to a successful focus on multifamily owners, properties and markets, our investment sales expertise also extends to the hotels and hospitality, land services, seniors housing and healthcare, and student housing sectors. NO MATTER WHAT YOUR INVESTMENT SALES GOAL, WE CAN HELP YOU WORK TOWARD REALIZING IT. Seamless collaboration with Berkadia s mortgage banking professionals DATABASE National database powered by the leading apartment research provider 350K When you equip the right people with the right tools, the result is better investment outcomes. It is the power to make more informed investment decisions based on local real estate expertise, superior capital markets knowledge, and dialed-in research that uncovers opportunities and results for our clients. Track owners, sales and assets in real time Access both institutional and private capital Brokers share active buyer information across markets 350,000 OWNERS AND INVESTORS TO DRIVE VALUE LEADERSHIP SUPPORT Leadership from locally based apartment advisors Coordinated effort by elite group of advisors $ 7.8B State-of-the-art national support platform Integrated technology and workflow platform 15 Average advisor has 20 years in each local market IN 2017 SALES TRANSACTIONS Best-in-class execution and accountability Provides complete transparency every step of the way 15 DEDICATED APARTMENT SUPPORT DIVISIONS 18 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 19
BERKADIA / SERVICING 2017 SERVICING PORTFOLIO COMPOSITION Unparalleled quality, flexibility and customer service. Berkadia is widely recognized as an industry leader in customer service and client satisfaction. Our servicing platform supports all products and market sectors including commercial mortgagebacked securities, balance sheet lending, life company portfolios, agency programs and institutional investments. AND THAT HELPS OUR CLIENTS MANAGE THEIR GREATEST ECONOMIC AND OPERATIONAL CHALLENGES. BY LOCATION 40 % OTHER BY PROPERTY TYPE 46 % MULTIFAMILY Our multi-cycle industry knowledge and experience in managing diverse portfolios enables us to deliver seamless service and customized solutions. 15% CALIFORNIA 10% NEW YORK 9% TEXAS 7% FLORIDA 4% ILLINOIS 4% MARYLAND 4% VIRGINIA 3% PENNSYLVANIA 2% GEORGIA 2% MICHIGAN 40% OTHER 46% MULTIFAMILY 16% RETAIL 16% OFFICE 8% OTHER 4% INDUSTRIAL 3% HOSPITALITY 3% HEALTHCARE 2% MIXED USE 2% MOBILE HOME 1% SELF-STORAGE RATINGS EXPERTISE Fitch Ratings Morningstar Primary CPS1 Primary MOR CS1 Master CMS2 Standard & Poor s Primary Strong Master Strong Special Above Average Master MOR CS1 Special MOR CS3 CLIENT SERVICES Investor Relations Borrower-Initiated Requests Research Projects Due Diligence Data Services Compliance Private Label Services Construction Loan Administration Document Workflow Client Web Portal LOAN ADMINISTRATION Loan Boarding Tax and Insurance Administration Escrow Analysis Reserve Administration Adjustable Rate Administration Letter of Credit Monitoring UCC Administration Payoff Administration CASH MANAGEMENT Payment Processing Bank Reconciliations Cash Management Investor Reporting Budget Monitoring Trigger Monitoring Waterfall Administration Advance Facility Defeasance Administration COLLATERAL & ASSET MANAGEMENT Financial Statement Analysis Rent Roll Analysis Property Inspections Administration Surveillance Watchlist Administration Market Research Asset Management Covenant Monitoring Default Management Customized IT Development 20 THE VALUE OF CERTAINTY BERKADIA BERKADIA THE VALUE OF CERTAINTY 21
Execution is just the end of the beginning. We re in this for the long haul. To us, every deal is the start of a new relationship or the continuation of one built on the trust that comes with certainty of execution. We see our clients as partners, investors for whom maximizing the value of their real estate assets isn t just the most important thing, it s the only thing. That s why we ve built the business we ve built. We re fanatical about commercial and multifamily real estate sales and finance, backed by an unrivaled servicing portfolio. Our commitment, breadth and scale enable us to drive value and deliver the capital and executional certainty you need to advance your investments to their full potential. 22 THE VALUE OF CERTAINTY BERKADIA
B E R K A D I A.C O M / 8 0 0. 4 4 6. 2 2 2 6 Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit: http://www.berkadia.com/legal/licensing.aspx 2018 Berkadia Proprietary Holding LLC. Berkadia is a registered trademark of Berkadia Proprietary Holding LLC.