Distressed Real Estate Summit – New York – September 23, 2009
7:30- 8:10 — Registration & Breakfast
8:10-8:15 — Opening Remarks
8:15-8:45 — The U.S. & Regional Economies: Recession, Recover & Rebound The multifamily sector, by volume, is the most significant property type in the United States. Rental rates and values are a true reflection of the financial viability of tenants and factors at play in the general economy. In this opening discussion, two leading economists will set the stage for the day’s many panel discussions by presenting an accurate picture of the state of the U.S. and the regional economies in terms of GDP, unemployment and the impact of the various federal spending measures to stimulate growth. Find out exactly how the national economy is performing, as well as the New York City and Tri-State regional economies. Will New York City lag the nation in recovery much like it has in past recessionary periods? Could national and regional unemployment hit 11, 12… or 13% even as the stock market and GDP rebound?
In this special opening discussion, leading authorities in commercial real estate will discuss and define the state of distress in residential and commercial real estate markets. Precisely, how much real estate and debt is in distress? Where, and involving what property types and loan conditions? What will the next 12-24 months look like in terms of investment opportunity? Will PPIP, TALF and other government-driven measures allow investors to tap into the burgeoning distressed assets market? And, will government-measures help current borrowers?

Key Questions:
-Defining the future of leverage: How has the credit freeze and Wall Street’s makeover changed lending benchmarks for real estate investment and development?
-Is TALF working? What about PPIP? And, what might the government do next?
-Values of CMBS and how they have performed with various government programs: How is CMBS collateral doing today? How are loans and how are properties performing today?
-What are the other important factors at play on Wall Street [elimination of mark-to-market, market fluctuations, etc.] that are affecting the industry?
-What changes are likely at Fannie and Freddie that could impact single-family and multi-family?

Hear From:
Spencer Levy, Sr. Managing Director, CBRE
Thomas A. Fink, Senior Vice President, Managing Director, TREPP
Brian Klebash, Director of Events, GREENPEARL.COM (moderator)
8:45-9:40 — The Capital Replacement Challenge: Years of Excessive Leverage Turn the Industry on its Head… What’s Next for Investors & Owners?
The lack of debt is not only a problem in real estate, but a systemic problem in all areas of the economy following the onset of the credit crunch in 2007, and subsequent bank failures. Surviving this brave new world is a clearly challenge for anyone and everyone in the residential and commercial real estate markets, especially the highly-leveraged firms. This opening panel will address important key themes in the debt and equity markets, and bring into focus other important factors in today’s debt-starved environment, including the role of special servicers, mezzanine and alternative lending sources.

Key Questions:
-Is there a more significant committee process at the balance-sheet lenders and what should investors, owners and developers know about this process?
-Exploring the role of special servicers: Investors/Owners claim special servicers are not responding. Is this true? What could they be doing differently? (And, what is the job of a special servicer, exactly?)
-How are special servicers dealing with loans?
-How should a borrower approach a maturity, specifically? If extending the loan makes sense, what criteria are available, and how does a borrower extend?
- With a flood of loans becoming due in December/ January, will servicers be able to handle this increased demand, and what steps should borrowers take now? Is default imminent?
-Is the special servicer the only one who can change the loan?
-Tax considerations are often critical on how to modify or undertake a workout…what should owners/investors know about this process?
-“Proactive steps”: Has today’s environment paved the way for new and unconventional lending sources, and what are they?
-“As the lending world turns:” Expectations for clarity in the debt market… 12, 18, or 24 months?

Hear From:
Eric Lindner, Managing Director, HELIOS
Paul Fried, Managing Director, TRAXI
Aharon Friedman, Partner, WILDWOOD CAPITAL
Louis Weller, Principal, National Director, Real Estate Transaction Planning, DELOITTE LLP
Douglas P. Hercher, Executive Vice President & Principal, CUSHMAN & WAKEFIELD SONNENBLICK GOLDMAN
Daniel Owen Mee, Executive Director, TREMONT REALTY CAPITAL
Jack Rosenfield, Founder and Principal, LOAN RESOLUTION ADVISORS, LLC (moderator)
9:40-9:55 — Networking Break
9:55-10:45 — Concurrent Sessions
Track A — Residential Real Estate Panel Discussion: Challenges & Opportunities—A Topline Review
Recent news suggests that residential home values may have bottomed out. The Case-Shiller Home Price Index in April showed that values on average fell 18% from April 2008-April 2009. However, the descent in values has appeared to ease in recent months. Has the “market bottom” arrived in the residential markets? In this opening panel of the residential real estate track, a panel of leading experts, including economists, consultants and researchers, will address the challenges and opportunities in distressed residential real estate and debt. Don’t miss this provocative and insightful panel which will bring the state of the residential markets into focus.

Key Questions:
-Identifying the “market bottom:” Has the residential market blow-up and subsequent buying opportunity peaked, or is there still time?
-Foreclosures, REOs, and Short Sales: What are the differences?
-Are bulk REO sales the way to go, and what should investors know about buying in bulk?
-Other investment opportunities: Are tax liens a truly cost-effective and more direct means to ownership?

Hear From:
Howard C. Liggett, President, DISTRESSED REAL ESTATE CONSULTING SERVICES, INC. (moderator)
Keith M. Brandofino Associate, New York City Office, PHILLIPS LYTLE LLP
Todd G. McKissick, President & CEO, MCKISSICK & COMPANY, INC.
Ted Weinstein, CEO, MAPLESHADE PROPERTIES/REOEDGE
Brian Meier, Senior Vice President, PRUDENTIAL DOUGLAS ELLIMAN – THE MEIER TEAM
Marvin Schnee, Managing Director, READ PROPERTIES
Robert Shakman, Principal, REGENTS PARK, LLC
Track B — Opening Commercial Real Estate Panel: New York City Investment & Ownership: Opportunities, Challenges and the Road to Recovery
The commercial real estate meltdown presents serious challenges—and opportunities—now, and in the coming years for owners and investors. Total outstanding CMBS delinquencies increased to $18 billion in May – a 268% jump over 2008. In total, an estimated 2.3% of all CMBS loans are now outstanding, and that number is only forecast to rise rapidly in the coming years. In this opening commercial real estate panel, the region’s high-profile investors and owners will address the debt financing challenge, how it is impacting their business operations on a day-to-day basis, but also, how it is creating opportunities. The final result of years of excessive leverage is still quite unclear, and government interventions that could make a difference, such as TARP and PPIP will be discussed, as well. Hear from your peers in real estate investment and ownership who are feeling the effects of the credit crunch, subsequent credit freeze, and find out just how they are navigating today’s new lending climate, combined with the challenges of a prolonged recession in a city that tends to lag the nation in recovery.

Key Questions:
-Currently, there is little-to-no activity in New York. What’s likely to happen, and when will it happen?
-A look at past precedents: What has happened in past cycles, and how will the past help prepare for future options?
-Exploring the play of mezzanine funds: How active is mezzanine in the commercial market?
-A “flood of RTC-like assets are available”– Will the government insist on anti-flip provisions?
-From the owners’ perspectives, is TALF a stabilizing force?
-How should investors/owners (borrowers) arrange internal equity and debt so that they can acquire assets and keep as much profit in buying, as well?

Hear From:
C.J. Follini Publisher, BLACKSWAN WEBZINE (moderator)
Norman Sturner, Principal, MURRAY HILL PROPERTIES
Joe Miller, Director, Acquisitions, ROCKROSE DEVELOPMENT
Peter Lewis, President, WHARTON EQUITY PARTNERS
Steven Spinola, President, REBNY
Kent Swig, President, SWIG EQUITIES
Robert Wertheimer, Partner, Real Estate Department, PAUL HASTINGS
Track C — GreenPearl DEAL MARKETING

Limited to 90 participants, the live deal making sessions allow investors, sellers, brokers of distressed property and debt to present their opportunities to the group in a speed networking format. Here’s how it works:
-Everyone is given a numbered list of participants with names, titles, company names, phone numbers, email addresses
-Each participant is allowed 2 minutes to present their buying or selling position (cash, property, and notes welcome)
-Interested participants display their pre-printed numbered cards to indicate interest
-Participants write down the numbers and follow up after the event to explore and close deals.

10:45-10:55 — Networking Break
10:55-11:40 — Concurrent Sessions, Continue
Track A — Residential Real Estate Investor Power Panel
In this panel, the region’s prominent individual and high net-worth investors will square off for important discussion and debate on residential investment opportunities. Who is active in distressed residential real estate today? And, should all types of investors (individual/ institutional) get into the game?

Key Questions:
-How are the industry’s most active residential buyers approaching today’s investment opportunity? What’s their “strategy for success?”
-Is there better opportunity in the distressed properties, or, the distressed debt?
-What are new and unique investment vehicles for investment in, and exposure to the hot distressed residential market?

Hear From:
Frank Cimino, Principal, FRANK CIMINO ENTERPRISES
Dirk Davis, Principal, REO SOLUTIONS USA
Alan J. Schnurman, ZALMAN & SCHNURMAN
Scott Sherman, Senior Acquisition Associate, BECKER BROTHERS
Steve Moran, Business Development Manager, ENTRUST NORTHEAST
Charles M. Kohout, Founder, APPLIED EDUCATION
Track B — Institutional Investors: Buying, Selling & Determining Value
Commercial real estate investment sales volume has plummeted since 2007 following a complete shut-down of the CMBS market and sellers’ reluctance to sell at distressed levels. Overall, 2008 investment sales volume was roughly 1/3 of 2007 volume, and, so far, 2009 has seen little-to-no activity. Is anyone selling in today’s market? And, how is valued determined in this unusual market?

Key Questions:
-How are appraisers determining value?
-Should owners try to move a property now, or wait for a strong recovery in 2011, or 2012?
-Should owners in distress consider selling at distressed levels if it creates cash flow?
-How can owners best manage property taxes and what do they need to do to successfully appeal their tax assessments?
-Outlook for the next 12-18 months: Will values continue to drop and cap rates continue to rise? Will there be a flood of distressed sales in late 2009/ early 2010 to kick-start the stagnant investment sales market, and are we seeing signs of a rebound now in some areas?

Hear From:
Jerry Anderson, Executive Managing Director, SPERRY VAN NESS Asset Recovery Team (moderator)
Edward Kalikow, President and Chief Executive Officer, THE KALIKOW GROUP
Willa Lewis, Partner, BRANDT, STEINBERG & LEWIS, LLP
David L. Noonan, Principal, NEWMARK KNIGHT FRANK CAPITAL GROUP
Raymond T. Cirz, MAI, CRE, CEO Managing Director, INTEGRA REALTY RESOURCES – NEW YORK
Track C — GreenPearl DEAL MARKETING, continues

11:40-11:50 — Networking Break
11:50-12:30 — Concurrent Sessions
Track A — The “Delinquent Sector:” A Closer Look at the Ramifications of Excessive Leverage in the Multifamily Sector
The multifamily property type is the most significant property type in the U.S. by sheer volume, and is therefore presents a serious—some would call “crisis” level of distress—in the coming years as debt matures. By some accounts, an estimated $41 billion—per year—in multifamily debt will mature annually for the next nine years. Traditional multifamily lenders Freddie Mac and Fannie Mae, faced with their own capital constraints, are increasingly conservative, selective, and more focused on so-called hot areas of multifamily, such as student housing. Will this trend continue? Hear from multifamily heavy hitters in this panel who will address just how the lack of debt is impacting their sector, how much is in distress and where, as well as expectations for the future.

Key Questions:
- Distressed buying opportunities: Who will be the first to jump in, and who will follow?
- Where, geographically, are the greatest buying opportunities?
- New construction & development: Has the lack of credit sidelined new multifamily projects?
- Will Fannie and Freddie stay in the picture for multifamily? How much are they lending now, and are underwriting standards likely to change?
- Have new multifamily lenders emerged?

Hear From:
Mike Kelly, President, CALDERA ASSET MANAGEMENT (moderator)
Terry Heller, Managing Member, Principal, HELLER HOLDINGS
Richard Cohen, Principal, BEDROCK CAPITAL
Mark Stern, Senior Vice President of Acquisitions, WATERTON RESIDENTIAL
Track B — Surviving Distress Workshop: Exploring the Ins and Outs of Distressed Note Servicing
The sheer number of loans placed in special servicing is astounding: In September 2008, there was an estimated $400 million in delinquent or failing CMBS placed in special servicing. By November of last year, a mere two months later, that number jumped to $1.6 billion. In the first three months of 2009, the total value of loans in special servicing climbed to $23.7 billion, representing 758 loans. With no end in sight to maturing CMBS and the build-up of troubled assets, what’s next? This session will provide an inside look at the steps involved in special servicing –a practical, hands-on discussion for lenders and note holders working through this challenging cycle.

Key Questions/ Themes:
-Exploring key differences between master servicer, loan servicer and special servicer
-Will special servicers be able to handle the incredible volume of maturing CMBS becoming due? And, how will they do it?
-Building owners complain that special servicers are slow to respond. Is this an overreaction on the building owner’s part, or are special servicers simply overwhelmed?
-What should note holders know about loan servicing operations and how they operate?

Hear From:
Jonathan Hornik, General Counsel, KENNEDY FUNDING (moderator)
Michael Carp, Managing Director, Real Estate Solutions, CAPMARK
Scott Friedman, Vice Chairman, RIVIERE SERVICING LLC
Track C — Case Studies
CASE STUDIES: Learn more about a recent transaction, or emerging industry trend:

*New and Efficient Strategies in Real Estate Investment and Portfolio Management: Utilizing Real Estate Synthetics to Enhance and Protect Yields in Property Investment and Debt Products with: Philip Barker, Senior Vice President, GFI Group

*Avoiding the Tax Burden of Foreclosure by Combining Net Lease Property, Credit Tenant Finance and 1031 Exchange with: Bruce MacDonald
President, NET LEASE CAPITAL ADVISORS
*REITs Acquire Debt: Is this New Investment Avenue the Wave of the Future? with: Louis Weller, Principal, National Director, Real Estate Transaction Planning, DELOITTE TAX LLP

*Residential Real Estate: A Closer Look at Tax Liens: A More Direct, Cost-Effective Means to Ownership? with Howard C. Liggett, President, DISTRESSED REAL ESTATE CONSULTING SERVICES, INC.

12:30-1:30 — Networking Lunch Break
1:30-2:05 — “30 Cities in 30 Minutes” Distressed Real Estate around the United States

Geographic analysis and review: What are the markets likely to rebound first? Where are the risks highest? Brad Hunter will present original research on housing market conditions in 30 national markets, using proprietary metrics on true inventory levels, actual end-user absorption rates, lot supplies, and other crucial factors for determining future values of homes and lots. This session is designed to provide a data-driven overview to those who wish to invest in distressed subdivisions, or in debt that is secured by subdivisions.

Hear From:
Brad Hunter, Chief Economist/Director of Consulting, METROSTUDY
2:00-2:35 — Up Close with Robert Shiller


The S&P/Case-Shiller Home Price Indices have carefully tracked home prices in the U.S. for the past three decades, and Robert Shiller’s reserach is considered a barometer for the state of the nation’s housing sector; his commentary is respected and industry analysis increasingly sought-after following the subprime collapse. Hear, first hand, how macro and micro economic trends will impact the nation’s residential housing sector in the years ahead, and the factors at play on Wall Street, and in Washington D.C. which could make a difference.

2:35-3:20 — The Two Warring Nations: Buyers & Sellers Find New and Innovative Ways to Bridge the “Bid-Ask Gap”
A significant challenge in real estate today is bridging the “bid-ask” gap, created in part by excessive leverage and the associated inflated property values of recent years. Now, faced with vast illiquidity in the debt and equity markets, aggressive buyers are jumping in the game, while owners, meanwhile, who purchased the properties in the not-so-long-ago high leverage days, are reluctant to sell at distressed levels. The much talked about “bid-ask gap” will be the focus of this panel, and specifically, how to bring the two “warring nations” together in new and innovative ways.

Key Questions:
-What’s certain in today’s market is pricing and liquidity are out of balance. Should pricing change? Is equity just “too smart?”
-The fundamentals of commercial real estate valuation are in flux. What will it take to get deals to transact?
-Innovations in Marketing & Technology: How are the more innovative real estate firms using e-mail, blogs and other on-line tools to promote their services and bridge the bid-ask gap?

Hear From:
Joshua J. Lavrinc, Esquire, Principal, BIRMINGHAM CAPITAL ADVISORS, LLC (moderator)
Jon Winick, President, CLARK STREET CAPITAL
Andrew Bank, New York Partner, ACCELERATED MARKETING PARTNERS
Timothy E. Davis, Partner, Business Department, WHITE AND WILLIAMS LLP
William P. Bowman, Senior Vice President, Real Estate, HARTFORD INVESTMENT MANAGEMENT COMPANY
Russell Schildkraut, Principal, Head of Underwriting and Loan Placement, ACKMAN ZIFF
3:20-3:30 — Networking Break
3:30-4:15 — Concurrent Sessions
Track A — Non-Performing Leases & Impact on Cash Flow
Much of the today’s distressed environment, and the hype surrounding distress in real estate, focuses on excessive leverage and, more specifically, maturing CMBS and other real estate debt. However, not to be overlooked is the adverse and increasing impact that cash-strapped tenants are causing owners, lenders and investors through tenant requests for rent reductions, deferrals, or, in some cases, unilaterally lowering rent payments. It’s a new challenge in today’s tough economic climate, and one which compounds the problem of distress for owners, lenders and investors, especially those owners carrying significant debt with rapidly approaching maturity dates. What steps should owners take to maintain existing premium rents and cash flow?

Key Questions:
-What is the current state of the rental market locally, regionally, nationally? How has the recession changed landlord-tenant relationships?
-What actions are tenants taking to reduce their rent burdens?
-Are owners more willing to compromise with clients? Should they be flexible? Why, or why not?
-How should an owner respond to a tenant’s request for rent relief? What different forms can this relief take? Reduction, deferral, lease extension?
-Should landlords go the extra mile for existing long-term tenants, anticipating an economic turnaround?
-Has today’s economy paved the way for a new tenant base that can afford premium rents?
-How is a recession, and anticipated rebound, likely to change the tenant mix?
-How will this down market impact the interpretation of existing leases and the negotiation of new leases and lease extensions? Bankruptcy? Force Majeure?

Hear From:
Nicholas Capuano, Partner, CAPUANO & LOFREDO LLP (moderator)
Adam Daniels, A.D. REAL ESTATE MANAGEMENT
Mark Ravesloot, Executive Vice President, CB RICHARD ELLIS
Emmet Austin, Chief Investment Officer and Managing Partner, STONEMAR PROPERTIES
George T. Constantin, President, Chief Executive Officer, HERITAGE REALTY SERVICES

Track B — Jumping In: “Funds Take Over Funds” Exploring the Play of New and Emerging Opportunity Funds in Today’s Climate
Opportunity funds, by nature, seek new and high-risk opportunities: buy low (at the right time), and then sell high. Today’s debt-starved climate is the perfect breeding ground for established opportunity funds, private equity and entirely new funds to jump in the game seeking to benefit from the billions and billions of maturing commercial real estate debt. Several funds have raised capital, or are in the process of raising funds to take advantage of the bevy of expiring CMBS and other debt that is becoming due now and expected to flood the system for at least the next five-ten years. Quite simply, there is no immediate end in sight to the challenge of expiring CMBS, both in the U.S. and internationally. This panel of opportunity funds and special lenders will discuss just how they are managing and planning to capitalize in today’s new real estate investment climate.

Key Questions:
-Finding opportunity: Precisely, what is the approach of today’s most active funds? Are some funds buying now, and what are they buying, and others waiting to see how interventions such as TALF/PPIP could prove beneficial before becoming more active?
-Debt gone bad: How are mezzanine and other special lenders managing investments of the past three-to-five years?
-What are the other important factors that could impact investment strategy in the next 12-18 months?
-What can other types of investors [high net worth, public/REITs] learn from the strategies of their peers in opportunity funds? Are strategies similar, different, and why?

Hear From:
Jeffrey Lenobel, Partner, SCHULTE ROTH & ZABEL LLP (moderator)
Leslie Lundin, President and Managing Partner, LBG REALTY ADVISORS, LLC
Tim Wang, Vice President, ING CLARION
Jeff Dishner, Director and President, STARWOOD PROPERTY TRUST
Tony Thompson, CEO, THOMPSON NATIONAL PROPERTIES
Dana C. Rowan, Managing Director, PARADIGM-EXETER ADVISORS

4:15-4:20 — Networking Break
4:20-5:05 — Concurrent Panels
Track A — Distressed Construction & Development Deals: Opportunities, or only Challenges?

Distress exists in not only in existing properties and their loans, but many construction and development deals are at risk due to the lack of debt in today’s environment. In this panel, a group of developers and investors will address, specifically, the challenges they face in an illiquid debt market and where they are turning for alternative sources of capital.

Key Questions:
-What are the challenges developers face today when attempting to secure financing?
-Where are developers in distress turning for alternative sources of financing?
-Have developers scaled back plans due to the current climate, or are they finding way to work around the lending obstacles?
-What happens when a project is at risk of non-completion? Are other investors/ developers/ equity sources stepping in?

Hear From:
Robert J. M. Occhiogrossi, R.A., CEA, LEED AP, Vice President, IVI INTERNATIONAL, INC (moderator)
Matthew Schnurr, Principal, NEWMARK KNIGHT FRANK
Michael Schor, Executive Vice President, THE TREELINE COMPANIES
Robert C. Hazard III, Vice President of Acquisitions and Development, HERSHA HOSPITALITY TRUST
Joel Breitkopf, Partner, ALCHEMY PROPERTIES, INC.
Simon Mortimer, C.Eng, MICE, MRICS, CCE, LEED AP , Chief Operating Officer, BOYKEN INTERNATIONAL, INC.

Track B — Working Through the CMBS Deal: How to Capitalize on Defaults and Foreclosures

Key Questions:
-What are the risks of investing in CMBS?
-What are the real estate credit risks (in capital markets and CMBS)?
-Will a real estate recovery happen, and will CMBS be there to help?
-How to buy a distressed property out of receivership
-Options for bankruptcy
-How to buy REO from banks/ non-performing paper

Hear From:
Spencer Levy, Sr. Managing Director, CB Richard Ellis
David M. Frank, Chief Executive Officer, THE MERRILL GROUP OF COMPANIES, LLC
Dan Rubock, Esq., Senior Vice President, Commercial Real Estate Finance Group, MOODY’S INVESTORS SERVICE
Michael Sher, Managing Director, RSM MCGLADREY
Sam Chandan, President and Chief Economist, REAL ESTATE ECONOMICS LLC
Carolyn Pianin, Senior Consultant, FOCUS MANAGEMENT GROUP (moderator)

5:05-5:15 — Networking Break
5:15-6:00 — The New York Brokers’ Panel: Responding to the Challenges of an Illiquid Market

The New York City real estate market witnessed a sharp decline in investment sales and leasing volume in 2008, approaching a near stand-still at the end of 2008, and during the first quarter of 2009. The typical volume of sales in New York City is about 2.5% of total stock—about 3,125 sales per year. However Q1 of 2009 witnessed investment sales volume as a percentage of overall stock at just less than 1%–a possible record low. Will the burgeoning distressed sales market cause an uptick in activity, or is New York City in for a record setting year–for inactivity? As for leasing activity, has the city witnessed the emergence of new tenants in this recession to replace financial firms and others impacted by Wall Street’s meltdown?

Key Questions:
-By comparison to past recessionary periods, and New York City’s tendency to lag the nation in recovery, has the market bottom arrived in the Big Apple?
-Is the city’s real estate market in for a strong rebound in 2010, 2011… or later?
-Is the government, from the federal level to local level, doing enough?

Hear From:
Lois Weiss, Columnist, NEW YORK POST (moderator)
Alan Miller, Senior Director, EASTERN CONSOLIDATED
Robert Knakal, Chairman, MASSEY KNAKAL
Will Silverman, Corporate Managing Director, Capital Transactions Group, STUDLEY
Shaun Osher, CEO, CORE
Robert L. Freedman, Executive Chairman, FIRSTSERVICE WILLIAMS REAL ESTATE

6:00-6:10 — Closing Remarks/ Distressed Real Estate Summit Concludes