CBRE CAPITAL MARKETS DEBT & STRUCTURED FINANCE CAPABILITIES OVERVIEW ❮❮ INTERACTIVE BROCHURE | CLICK TO ENTER ❮❮ TEAM CAPABILITIES EXPERIENCE CBRE DSF OVERVIEW CBRE OVERVIEW MEET THE TEAM ❮❮ 2015 YEAR END TEAM OVERVIEW The CBRE Capital Markets Debt & Structured Finance Group is truly a production team, providing expertise across all property types and capital structures while concurrently offering clients the benefits of specialization within each property sector. Our multi- disciplined team is comprised of six highly experienced production professionals 104 with a track record of efficiently meeting clients’ debt, equity and structured finance TRANSACTIONS requirements. We view each financing opportunity as a chance to serve as a trusted capital advisor focused on maximizing the value of our clients’ real estate investments by not only achieving the best financing available in the marketplace, but also by presenting capital solutions customized specifically to meet our clients’ short-and long-term strategic goals and objectives. $1,149 MILLION As a part of CBRE, the team also has access to the vast resources of the CBRE platform, TOTAL TRANSACTIONS including investment sales, marketing, valuations, research, property management, and leasing. By leveraging our company’s national platform, we are able to expose each asset to the maximum amount of capital sources while providing those sources the best market knowledge. Our experience and access to market data and capital sources allow us to focus on meeting each client’s specific capital needs. As a result, our Debt & Structured Finance team is recognized as one of the top teams in the country. FINANCED ALL MAJOR PROPERTY TYPES OFFICE, INDUSTRIAL, RETAIL, MULTIFAMILY, MANUFACTURED HOUSING, MIXED USE AND SPECIAL PURPOSE 1 | CAPABILITIES OVERVIEW ❮❮ TEAM CAPABILITIES EXPERIENCE CBRE DSF OVERVIEW CBRE OVERVIEW MEET THE TEAM ❮❮ CASE STUDIES MESA RANCH RANCHO TEMECULA TOWN CENTER CHALLENGE CHALLENGE A major tenant at had backed out of its previously agreed upon lease at this Hispanic grocery The property was purchased at the lowest cap rate in the Inland Empire. CBRE had to anchored retail center, rendering the asset unstable at 45% occupancy. Buyer/Borrowers engineer a financing vehicle that would provide positive leverage for the Buyer/Borrower. wanted to hedge the ensuing interest rates through a permanent debt placement, with the option to upsize the loan once the property achieved stabilized tenancy. SITUATION SITUATION We maximized competition between more than 50 various Lenders (Life Companies, Com- mercial Banks and Commercial Mortgage Banks) by collaborating with CBRE’s National We successfully arranged staged funding through a life insurance company. Borrower was Retail Investment Group. able to lock long-term interest rates based on initial tenancy for the first stage of funding, with the option for additional fixed-rate, long-term financing upon the stabilization of tenancy. RESULTS RESULTS Leveraging CBRE’s deep-rooted access to capital, we successfully arranged $28 Million The Borrower was able to hedge interest rates with an initial funding, while the subject in fixed-rate financing through a Life Company correspondent. We achieved the most property achieved leasing stabilization and the Borrower was then able to obtain the second competitive financing structure available with interest only payments for the entire 12 year part of the staged funding so that the subject had the proper leverage balance. Both loans loan term. GEMSA Loan Services, a CBRE affiliate, will service the loan and we will remain have long term fixed interest rates with co-terminus maturities. involved as needed throughout the term of the loan. 2 | CAPABILITIES OVERVIEW ❮❮ TEAM CAPABILITIES EXPERIENCE CBRE DSF OVERVIEW CBRE OVERVIEW MEET THE TEAM ❮❮ CASE STUDIES ASM BUILDING WILLOW OAK ESTATES CHALLENGE CHALLENGE Our client needed to solve for the upcoming maturation of a loan tied to their ownership of In 2013, CBRE was tapped to arrange long-term, fixed interest rate financing for the this large, single-tenant industrial building, with a specialized build-out. The client (Owner/ acquisition of “Willow Oak Estates.” Constructed in 1988 but expanded in 2007, the 4-star Borrower) needed to determine whether to sell the building or refinance the loan. The family community had yet to achieve stabilized tenancy. building’s tenant was Investment Grade and had approximately 10 years left on its lease. SITUATION SITUATION We took strategic steps to get Lenders comfortable with the asset’s in-place income and We brought CBRE Capital Markets’ Investment Sales Group and, by integrating our two the Buyer/Borrower’s strength, real estate knowledge and experience. Our comprehensive, perspectives CBRE collectively determined it would be best to sell the asset as a 1031 intelligence-driven approach allowed us to structure a competitive, 25-year-term financing exchange, directing the proceeds into several NNN replacement properties. To this successful solution with 10-year rate adjustments through a life insurance company. end, we provided three separate loans on the three NNN exchange properties. RESULTS RESULTS Our client was able to leverage a competitive market interest rate at acquisition, as well as We eliminated our client’s exposure to risk and maximized his ownership return with a afforded the opportunity to refinance the property – without penalty – every 10 years. successful exchange disposition of the ASM building; all the result of our firm’s collaborative capitalization on market/tenant realities. 3 | CAPABILITIES OVERVIEW ❮❮ TEAM CAPABILITIES EXPERIENCE CBRE DSF OVERVIEW CBRE OVERVIEW MEET THE TEAM ❮❮ DEALS LIST PROPERTY NAME PROPERTY TYPE LOCATION SIZE LENDER TYPE LOAN TYPE TERM AMORTIZATION LOAN AMOUNT $40 MILLION + CLOSED LOANS 10 years Alameda Towne Centre Retail Alameda, CA 595,352 SF Life Company Permanent 30 years $111,375,000 2 years I/O Arizona Portfolio Office & Retail Phoenix, AZ 200,000 SF Pension Fund Equity 10 years N/A $100,000,000 University of Phoenix Office Phoenix, AZ 599,663 SF CMBS Permanent 5 years Full term I/O $91,500,000 Headquarters ANC District Retail Henderson, NV 212,593 SF CMBS Permanent 10 years 30 years $70,000,000 Phoenix Gateway Office Phoenix, AZ 427,603 SF Debt Fund Bridge 3 years Full term I/O $60,000,000 Flynn Gallagher Office Las Vegas, NV 321,041 SF CMBS Permanent 10 years 30 years $57,750,000 Corporate Centre Pavillions Retail Scottsdale, AZ 1,060,950 SF CMBS Permanent 10 years 30 years $57,000,000 Wal-Mart Distribution Industrial Riverside, CA 507,000 SF Pension Fund Permanent 7 years Full term I/O $55,000,000 Esplanade III Office Phoenix, AZ 218,266 SF Life Company Permanent 7 years Full term I/O $52,500,000 Petsmart World Office Phoenix, AZ 365,672 SF Life Company Permanent 10 years Full term I/O $51,250,000 Headquarters 10 years Skysong Office Scottsdale, AZ 289,645 SF CMBS Permanent 30 years $46,250,000 5 years I/O Kierland Office Building Office Scottsdale, AZ 258,312 SF Bank Floating 5 years Full term I/O $43,450,000 4 | CAPABILITIES OVERVIEW ❮❮ TEAM CAPABILITIES EXPERIENCE CBRE DSF OVERVIEW CBRE OVERVIEW MEET THE TEAM ❮❮ DEALS LIST (CON’T) PROPERTY NAME PROPERTY TYPE LOCATION SIZE LENDER TYPE LOAN TYPE TERM AMORTIZATION LOAN AMOUNT $10 MILLION TO $40 MILLION DHL Office Scottsdale, AZ 215,126 SF CMBS Permanent 10 years 30 years $32,000,000 Credit Shutterfly Industrial Tempe, AZ 237,000 SF Permanent 10 years 25 years $30,000,000 Company Papago Arroyo Office Tempe, AZ 219,503 SF CMBS Permanent 10 years 30 years $29,250,000 Camelback Square Office & Retail Scottsdale, AZ 174,917 SF Bank Floating 3 years Full term I/O $26,568,000 Copper Creek Apartments Multifamily Las Vegas, NV 368 units CMBS Permanent 10 years 30 years $24,000,000 Pageantry West Office Las Vegas, NV 105,583 SF CMBS Permanent 10 years 30 years $16,400,000 FedEx Virginia Industrial Hampton, VA 198,839 SF Life Company Permanent 20 years 20 years $16,000,000 Diamond Creek Retail Diamond Bar, CA 121,788 SF Bank Permanent 10 years 25 years $15,000,000 Tuscany at McCormick Multifamily Scottsdale, AZ 73 units CMBS Permanent 10 years 30 years $14,000,000 Ranch GE Engine Facility Industrial Batesville, MS 300,000 SF Life Company Permanent 10 years 10 years $12,000,000 Ford Motor Credit Office Henderson, NV 111,630 SF Life Company Permanent 10 years 25 years $11,600,000 Centinela Medical Office Inglewood, CA 103,338 SF Life Company Permanent 15 years 15 years $11,000,000 Copper Palms Multifamily Phoenix, AZ 206 units CMBS Permanent 10 years 30 years $10,425,000 Ridgeview Shopping Retail Mesa, AZ 130,717 SF Life Company Permanent 10 years 25 years $10,000,000 Center Alicia Office Park Office Laguna Hills, CA 86,412 SF Debt Fund Bridge 4 years Full term I/O $10,000,000 5 | CAPABILITIES OVERVIEW ❮❮ TEAM CAPABILITIES EXPERIENCE CBRE DSF OVERVIEW CBRE OVERVIEW MEET THE TEAM ❮❮ DEALS LIST (CON’T) PROPERTY NAME PROPERTY TYPE LOCATION SIZE LENDER TYPE LOAN TYPE TERM AMORTIZATION LOAN AMOUNT $5 MILLION TO $10 MILLION TECH Park VI Office Henderson, NV 85,132 SF Life Company Permanent 10 years 25 years $9,500,000 Clarendon Park Multifamily Phoenix, AZ 138 units HUD Permanent 35 years 35 years $9,008,000 Apartments Ross & Shops Retail Pomona, CA 48,422 SF Bank Permanent 13 years 25 years $8,590,000 Verrado Office & Retail Buckeye, AZ 66,085 SF Life Company Permanent 10 years 25 years $7,300,000 Best Buy & Gander Retail Scranton, PA 61,122 SF CMBS Permanent 10 years 30 years $6,900,000 Mountain Huntington 24-Hour Fitness Special Purpose - Life Company Permanent 18 years 18 years $6,900,000 Beach, CA Northgate Plaza Retail Tucson, AZ 103,492 SF Life Company Permanent 15 years 20 years $6,700,000 Riverport Lakes Office St.