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A Perspective on Current Real Estate Investment Strategies. January 19, 2010. State of the Union. CMBS Delinquencies Bank Failures FDIC and No RTC Debt Capital Constraints Commercial vs. Residential Leasing Demand is Weak or Negative NOI is Decreasing
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A Perspective on Current Real Estate Investment Strategies January 19, 2010
State of the Union • CMBS Delinquencies • Bank Failures • FDIC and No RTC • Debt Capital Constraints • Commercial vs. Residential • Leasing Demand is Weak or Negative • NOI is Decreasing • Overall Economy is Weak (bottomed out?) CONFIDENTIAL
Current Investment Strategies in the News • Equity • Purchase Loan(s) • Purchase Foreclosures or Distressed Assets • Purchase Portfolios of Distressed Assets • Purchase Entities • Mezz - Equity • Mortgages • Lower LTV’s • Debt Yields • Mezz – Debt • A/B Loans or Allow Mezz behind the first mortgage • No Development or Construction Loans CONFIDENTIAL
Insurance Sector – Real Estate Investing Historically • Historical Equity Investing – Whole vs. JV • Historical Mortgage Investing – Permanent vs. Construction • Other Investments – CMBS, RE Funds, Mezz CONFIDENTIAL
How NOT To Invest Your Dollars… Lotus Riverside, Shanghai CONFIDENTIAL
MetLife Investment Strategy - Mortgages • Mortgages • Property Types: office, retail, apartments, industrial, full-service hotels • Loan Type: fixed (5 – 30 years) and floating (3 – 5 years) • Preferred Loan Size: $20M to $200M (per property) • Rates: U.S. Treasuries / LIBOR 30, 60 or 90 day • Terms: 20 to 30 years / up to 90 days rate lock at application • Co-Lending: pari-passu or senior / sub CONFIDENTIAL
MetLife Investment Strategy - Equity • Equity • Property Types: office, retail, apartments, industrial, full-service hotels • Investment Criteria • Primarily Core and Core Plus • Primary domestic and international markets • Direct as well as through institutional joint ventures CONFIDENTIAL