Multifamily Investment Summit – December 3, 2009

**Working Agenda: Sessions Titles and Times are Subject to Change**
7:30 – 8:10 — Registration & Breakfast
8:10 – 8:15 — Opening Remarks
8:15 – 8:45 — Multifamily Demand Analysis & Review: The Shift from Homeowner to Renter and Related Demographic Trends

Prior to the subprime fallout, homeownership had been on the rise leaving many to wonder how much higher it would go and how this might affect the multifamily rental market. Dr. Arthur Cresce of the U.S. Census Bureau will present key findings that show what has happened to the homeownership market since the subprime fallout, especially in the hardest hit metropolitan areas and what it will mean for executives in the multifamily sector.
Key Questions/Themes:
-How will multifamily investors, owners and developers stand to benefit?
-Home ownership in the U.S. peaked at 69% in 2004. What has happened since that time?
-Analysis of the top 10 metro areas: owner vs. renter and related trends
-In the markets that were “hot for homeownership,” what has happened in a post-subprime world? Are people moving into rental units? If not, where are they going?
-What has been the impact on rental rates following subprime?
Arthur Cresce, Assistant Division Chief, Housing Characteristics, Housing and Household Economics Statistics Division, U.S. CENSUS BUREAU
with: Neil Gronowetter, Editor-in-Chief, MULTIFAMILY INVESTOR
8:45 – 9:45 — Multifamily Investment Opportunities in a Brave New World: Where are the Buying Opportunities, and How Will the Continued Lack of Debt Capital Impact Values Going Forward?

Massive deleveraging is underway in all aspects of the economy, led initially by the subprime fallout in the residential real estate sector, and now the CMBS fallout in the commercial real estate sector. Investment sales activity in commercial real estate is only a small fraction of the levels witnessed in 2006 and 2007. In this opening panel, a cross-section of leading buyers and sellers (institutional, public, private, REIT, opportunity funds) will discuss the realities of today’s multifamily investment climate, with special focus on distressed opportunities.

Key Questions/ Themes:
–Identifying the market bottom for multifamily
–Cap rate compression: A short term phenomenon of the past 6-8 weeks, or a real trend? And, what’s driving it? Are funds under pressure to deploy capital?
–Low-interest rate environment: Will it last through 2010?
–When buying, does cap rate or price-per-unit make sense?
–How have events of the past 18 months affected existing investments?
–What kinds of deals are getting done today, and do they involve mostly REOs, foreclosures, and/or bankruptcies?
–An estimated $41 billion—per year—in multifamily debt will mature annually for the next nine years. How are investors approaching this opportunity?
–How are funds raising capital today?
–Recovery in… two years?
Moderator: Mike Kelly, President, CALDERA ASSET MANAGEMENT
Kevin Davis, Partner, AREA PROPERTY PARTNERS
Mason Sleeper, Principal, THE PRAEDIUM GROUP LLC
Mark Stern, Senior Vice President of Acquisitions, WATERTON RESIDENTIAL
Tim Wang, Ph.D., Vice President, Research & Investment Strategy, ING CLARION
Steve Zaleski, Managing Director, Multi-Housing Group, CB RICHARD ELLIS INVESTORS
9:45 – 10:00 — Networking Break
10:00 – 10:45 — Today’s Lending Environment: The Future of Fannie, Freddie & FHA: Will the GSEs and Alternative Lending Sources Remain Active in Multifamily?

The challenge for investors and developers in today’s climate is access to low-cost debt capital. The Federal Housing Administration(FHA) has become a source of low cost-of-debt, but its programs are tightly controlled and require borrowers to have significant control or ownership over the land. Fannie Mae and Freddie Mac maintained $172 billion in multifamily mortgages at the end of the second quarter, 11% of their combined holdings. With so few lending sources in today’s climate, will multifamily investors and developers be able to rely on the government entities alone for debt capital, which now account for 90% of all commercial real estate loans? And, is there any guarantee that the GSEs will remain active?
Key Questions/Themes:
–How have underwriting standards changed at Fannie and Freddie? What should investors know?
–Is FHA a viable alternative in today’s climate?
–Is a certain type of loan [construction, investment] more accessible in today’s climate?
–Who is lending, other than FHA, Fannie and Freddie?
–Is there a lack of debt in certain geographic areas, and not others? [i.e. Is New York City more immune to the debt financing challenge?]

Moderator: Gregg Winter, Founder & Managing Partner, W FINANCIAL FUND, LP
Sam Chandan, President and Chief Economist, REAL ESTATE ECONOMICS LLC
Michael Edelman, Managing Regional Director, FREDDIE MAC
Ralph Herzka, President and Chief Executive Officer, MERIDIAN CAPITAL GROUP
Mark M. Scott, Senior Vice President & Managing Director, NORTHMARQ CAPITAL
Joseph Stepchuk, Director for Multifamily Customer Management, Housing and Community Development, FANNIE MAE
10:45-11:20 — Up Close with Gary Kachadurian of Apartment Realty Advisors
with: Ryan Slack, CEO, GREENPEARL EVENTS
Gary Kachadurian has over 25 years of real estate experience specializing in land and asset acquisition, construction, development, financing, and management. In recent years, ARA has moved more aggressively into alternative multifamily property types, including: student housing, senior housing, affordable housing and manufactured housing. How is ARA, and its national team of brokers, approaching today’s climate? Has 2009 witnessed the emergence of new and unusual capital sources? Will 2010 be the time for investors to jump back in? If not 2010… when? And, what’s the better investment: traditional, or, alternative multifamily?
11:20 – 11:30 — Networking Break
11:30-12:20 — GreenPearl Debate: Rent Stabilized vs Luxury: Are Rent Stabilized / Affordable Buildings Preferable for Owners and Investors Who Seek Steady Cash Flow, or Is High-End Still a Better Investment, Even in Today’s Climate?
Key Questions/Themes:
–Perceptions vs. Realty: Has Wall Street’s turmoil crippled the luxury market in terms of overall vacancy, rental rates and values?
–How is high-end performing in the suburbs?
–Are high-end owners and brokers expecting a strong turnaround in 2010, 2011 or later?
–How have stabilized and affordable buildings performed in terms of overall vacancy since the start of the recession in December 2007?
–Have stabilized and affordable building owners and managers offered significant rent reductions?
–What is the better investment for the next 12-18 months: stabilized and affordable… or high-end?

Peter Von Der Ahe, Vice President, Investments, National MultiHousing Group, MARCUS & MILLICHAP [rent-stabilized—moderator]
Matthew M. Baron, Principal, SIMON DEVELOPMENT GROUP[luxury and rent-stabilized]
Ofer Yardeni, Managing Partner, STONEHENGE PARTNERS[luxury and rent-stabilized]
Christopher Albanese, Principal, THE ALBANESE ORGANIZATION [luxury]
Michael Vinocur, Principal, BUILDING EQUITY [rent-stabilized]
Edward Kalikow, President and Chief Executive Officer, THE KALIKOW GROUP [rent-stabilized]
12:20-1:00 — Innovations in Marketing, Leasing & Property Management: Cost-Effective Strategies for Today’s Economy

New York City and the nation are recovering from recession, but economists’ growth projections for the next 12-18 months are unimpressive, at best. The multifamily sector is dependent on a client base that is employed, and for luxury building owners and managers, a well-compensated tenant base. Events of the past 18 months, beginning with Lehman’s collapse and the subsequent financial sector meltdown, have adversely affected the multifamily market (especially high-end), making the day-to-day jobs of property managers even more challenging. In this session, leading building managers will discuss just how the events of the past 18 months have affected operations, and what they are doing differently, now.

Key Questions/Themes:
–The importance of effective management in moving a property:  Can high-quality management help to lower vacancy rates and raise rental rates and values?
–How is management approached by the various management firms [small to mid-sized operators, and larger players]? And, what’s changed in the past 18 months?
–How are property managers taking steps to retain tenants in what is arguably the best renters’ market in more than 10 years?
–How are operators/managers preserving cash positions?
–Is there a silver lining to today’s market?

Moderator: Brian Klebash, Director of Events, GREENPEARL EVENTS
John T. Economou, Treasurer, A.J. CLARKE REAL ESTATE CORP.
Colin Foster, Vice President of Sales and Marketing, VIRTUAL DOORMAN
Mitchel Maidman, President, TOWNHOUSE MANAGEMENT COMPANY
Mark Moskowitz, President and Chief Executive Officer, THE ARGO CORPORATION
Moses Sioni, Managing Director, SIONI & PARTNERS
James R. Wacht, President, SIERRA REALTY

1:00–1:40
 — Networking Lunch Break
1:40-1:55 — Special Update: The State of the New York City Economy

Jason Bram, Senior Economist, Microeconomic and Regional Studies Function, FEDERAL RESERVE BANK OF NEW YORK
1:55-2:45 — Politics, Recession, Rent Stabilization: What are the Political Forces and Legislation at Play in New York City that Could Impact Real Estate?

Key Questions/Themes:
–Rent Stabilization: Is the current framework adequate?
–Why is free-market rent important in New York City?
–Is there too much over development (or under development) in some neighborhoods?
–Is the New York City Council “real-estate friendly?” What about the mayor’s office?
–Downtown transformation to a 24/7 mixed-use community

Moderator: Lois Weiss, Columnist, NEW YORK POST
Andrew Hoffman, Chief Operating Officer, STONEHENGE MANAGEMENT, LLC
Robert Knakal, Chairman, MASSEY KNAKAL
Robert Nelson, President, NELSON MANAGEMENT GROUP, LTD.
Steven Spinola, President, REBNY
Niles C. Welikson, Esq., HORING WELIKSON & ROSEN, P.C.
2:45-2:55 — Networking Break
2:55-3:40 — Multifamily Development & Construction Outlook in the Face of Recession and Debt-Starved Environment
Many construction and development deals are at risk in today’s tight lending environment. In this panel, a group of developers and investors will address, specifically, the challenges they face in an illiquid debt market which is forcing them to seek alternative sources of capital. What are the challenges developers face today when attempting to secure financing?

Key Questions/Themes:
–Construction Loan Extensions: Are banks extending loans? If not, where are developers turning for capital?
–How have events of the past 12-18 months impacted current, and future, development plans?
–What happens when a project is at risk of non-completion? Are other investors/ developers/ equity sources stepping in?
–Special New York City focus: Introduction of Stalled Buildings Bill and new safety measures

Moderator: Steven O. Goldschmidt, Licensed Broker, Senior Vice President, WARBURG MARKETING GROUP
Joel Breitkopf, Partner, ALCHEMY PROPERTIES, INC.
Charles J. DePasquale, Executive Vice President, NDR GROUP
Lisa Gomez, Executive Vice President of Development, L+M DEVELOPMENT PARTNERS
Robert D. LiMandri, Commissioner of the New York City Buildings Department, CITY OF NEW YORK
3:40-4:20
 — The “Workout Panel:” Analysis and Review of Emerging Lending Sources, the Role of Special Servicers and Proactive Steps to Take in Today’s Climate
The multifamily property type is the most significant property type in the U.S. by sheer volume and is therefore faces a significant—some would call “crisis”—in the coming years as debt matures in a low-leverage environment. By some accounts, an estimated $41 billion—per year—in multifamily debt will mature every year, for the next nine years. If you are an owner or investor with maturing debt, find out the steps you should take now to avoid default and/or foreclosure.

Key Questions/Themes:
–There will be a flood of borrowers and maturing loans in December/ January, based on early research. Will servicers be able to handle this increased demand, and what steps should borrowers take now? Is default imminent?
–What loans will qualify for amend and pretend? Which won’t? And, will there be a difference between the portfolio world and the securities world?
–Will owners step up with either additional cash or recouse for non recourse deals?
–Will actions taken by special servicers impact portfolio lenders and vica versa?
–Who is in better position to deal with distressed debt: a regulated portfolio lender or a comparatively unregulated special servicer?

Moderator: Jack Rosenfield, Founder and Principal, LOAN RESOLUTION ADVISORS, LLC
Frank Cimino, Principal, FRANK CIMINO ENTERPRISES
Paul Fried, Managing Director, TRAXI
Scott Friedman, Vice Chairman, RIVIERE SERVICING LLC
Jeffrey L. Goldberg, Managing Partner, THE MILESTONE GROUP
Stuart M. Saft, Partner, DEWEY & LEBOEUF LLP
4:20-5:00 – Multifamily Investment Summit: New York Concludes/Cocktail Reception Begins
Concurrent Panel:

1:40-2:45

 — Multifamily Investment Alternative in Focus: Student Housing in the Northeast
Despite the unusual economic climate of the past year, the student housing sector continues to attract new investors and developers to the field with a desire to construct off-campus housing, or on-campus housing in unique JV partnerships with colleges and universities. In this panel, a group of student housing owners, investors, developers and lenders will discuss the rise of student housing as an alternative asset class within the broader multifamily spectrum. Why should traditional multifamily players consider exposure to the student housing market? And, how is student housing investment and development approached by the various investors in the northeast and urban areas as opposed to the central, southern and western states where there is a glut of land to construct new properties? Clearly, there is demand for new student housing in all U.S. regions. In this panel, find out how you can profit in the rapidly-growing student housing niche, and how to effectively acquire, develop and manage properties in the northeast and urban areas.

Key Questions/Themes:
– Property Conversions: Does it make sense for a traditional multifamily owner to convert his/her properties to student housing as a way to boost NOI? And, what’s required in the process [retrofits, amenities, etc.]?
– What makes student housing management unique, and unlike traditional apartment management? What should traditional multifamily investors and owners know before jumping in?
– How is student housing performing in the face of a recession and debt-challenged climate? Are rental rates and values resilient, and vacancy rates still low?
– What are the more innovative deals in the northeast and urban areas [New York, Boston, Philadelphia] in the past year that investors should know about in pursuit of best practices?

Moderator: Brian Klebash, Director of Events, GREENPEARL EVENTS
Arthur Fefferman, President, AFC REALTY CAPITAL, INC.
Oliver Swan, Chief Investment Officer, CAMPUS HABITAT
Laura S.  Norman, Shareholder, GREENBERG TRAURIG, LLP
Shane Neuringer, Senior Vice–President — Acquisitions and Finance, SIERRA REALTY
Andrew A. Yaffe, Director of Acquisitions & Business Development, SALMANSON CAPITAL, LLC