Cbre Group Inc · NYSE:CBRE
Cbre — CB Richard Ellis Group — Investor Day (November 2009)
17 slides from Cbre's investor day presentation, Nov 18, 2009
Slide 1: Restructuring Services
Restructuring Services Spencer G. Levy Senior Managing Director
Slide 2: Overview: Loans in Special Servicing
Overview Loans in Special Servicing % of CMBS Outstanding Source: Real Capital Analytics $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Billions 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% Un
Slide 3: Loans in Special Servicing by Property Type
Loans in Special Servicing by Property Type 3,164 Loans, $49.9 Billion Average Loan Size = $15.8 Million Source: Real Capital Analytics Office (15.4%) $7.7 B Hotel (9.5%) $4.7 B Industrial (2.4%) $1.2 B Other (16.2%) $8.1 B Retail (36.0%) $18.0 B Multi-Housing (20.5%) $10.2 B
Slide 4: CMBS Spreads
CMBS Spreads Source: Green Street Advisors
Slide 5: 10-Year Treasury vs. 30-day LIBOR
10-Year Treasury vs. 30-day LIBOR Source: Green Street Advisors
Slide 6: Loan Maturities will Continue the Deleveraging Trend
Loan Maturities will Continue the Deleveraging Trend Source: Wachovia Projected Originations1 $213.4B Shortfall $290.0B $322.8B $353.6B $397.0B $106.4B Shortfall $139.2B Shortfall $170.0B Shortfall Cumulative Shortfalls: 2009-12: $629 billion 1. Origination projections based on the average 4-year gr
Slide 7: Government Intervention Big Picture
Government Intervention Big Picture The government now recognizes that there is a problem in commercial real estate. The Intervention Direct Liquidity -TARP; PPIP; TALF -Fannie Mae/Freddie Mac Accounting Changes -FAS 157: “Unobservable Inputs” REMIC Relief -Greater flexibility has been given to the
Slide 8: Government Intervention Steps
Government Intervention Step 1 Stabilize the Banks: Balance Sheet Stability “TARP” (“Troubled Asset Relief Program”); direct injection of preferred equity into banks (October 2008). Prevented massive string of bank failures. Step 2 Buy the Troubled Assets: Increase Capacity “TARP II” or “PPIP” (“Pub
Slide 9: CBRE Restructuring Services Overview: History
CBRE Restructuring Services Overview History CBRE Restructuring Services was created in the Spring of 2008 to deal with the challenges and opportunities associated with distressed commercial real estate assets. The pursuit of FDIC outsourcing business in the Spring was the first major pursuit. Goal
Slide 10: CBRE Restructuring Services Overview: Challenges & Opportunities
CBRE Restructuring Services Overview Challenges & Opportunities New Clients Commercial Banks Special Servicers Government Agencies Bankruptcy Courts/Other Foreclosure Specialists New Products UCC/Bankruptcy Sales Total REO Outsourcing Receivership Work Buy-Side Representation for Government Pools St
Slide 11: CBRE Restructuring Services Overview
CBRE Restructuring Services Overview
Slide 12: Distressed Deals: Buy-Side M&A
Distressed Deals: Buy-Side M&A Sponsor: Deutsche Bank Underlying Pool: Primarily performing and non-performing commercial real estate & multifamily loans but also consists of residential, land, construction and FF&E loans UPB: $1.0 billion Status: On the market Bid Due Date: November 17, 2009 (pushe
Slide 13: Distressed Deals: UCC Foreclosure
Distressed Deals: UCC Foreclosure Challenge 216-unit residential condominium project in the Fashion District of downtown Los Angeles, CA Defaulted $12.75 million mezzanine loan 23% of units sold when market collapsed CBRE retained to demonstrate commercially reasonable efforts at marketing the membe
Slide 14: Distressed Deals: Fractured Condos
Distressed Deals: Fractured Condos Murano at Delray Beach Closed September 2009 Class A- Busted Condo; Sold 93 units out of 275 $9 million disposition price; $80 per SF Seller: REIT disposing of REO Buyer: Private transaction; all cash purchase 6.12% going-in cap rate Portofino at Jensen Beach Close
Slide 15: Distressed Deals: Bankruptcy Sales
Distressed Deals: Bankruptcy Sales Challenge Section 363 bankruptcy disposition of two properties 13,400 acre ultra-luxurious Yellowstone Club in Big Sky, Montana 13th Century Chateaux de Farcheville just south of Paris Solution Within 24 hours, CBRE received over 100 confidentiality agreements Sold
Slide 16: Distressed Deals: Post-Foreclosure Sale
Distressed Deals: Post-Foreclosure Sale Challenge 251 room landmark hotel in prime location in Washington, D.C Located between Georgetown and Kennedy Center Find a buyer willing to acquire the asset at the price needed from the seller (German bank) Solution CBRE put together a presentation that exhi
Slide 17: 2009 YTD Performance Highlights
2009 YTD Performance Highlights As of the end of the third quarter, CBRE is tracking over $3 billion in “distressed” transactions where one of our service lines has been engaged We are currently tracking live transactions with over 150 banks, 14 special servicers and several live RFP responses to go
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