Preliminary Agenda Topics
Please note: The below discussions will take place over the 2 days of the conference (June 13-14). Timings have not yet been allocated, please re-visit this page for agenda and scheduling updates
Macro-Economics & Real Estate Risk… We are we in the Cycle? Will the Global Uncertainty and Volatility Continue?
- Are we in the 9th or 5th inning for the US economy & real estate?
- Are capital flows into the US being affected by global economic volatility, fears of a recession, the strong dollar or are they sticky?
- Interest rates and the impact on cap rates, tenant spending, etc. * Different presidential election scenarios and their impact on commercial real estate
- Equity market volatility: Will the disconnect between public and private market values continue? Will private real estate be a safe haven amidst the turmoil in global public securities?
- Are China’s controlled markets out of control?
- What’s happening to demand for space in energy/natural resource concentrated markets in the US and globally?
- June 13, 2016: What black swan is on the horizon?
With companies like GE relocating from Stamford Connecticut to Boston and millennials wanting to be in large urban areas are secondary cities losing their luster or is the sky high cap rates of inner cities making secondary markets first on your investment list?
- In the eye of the beholder… What makes a secondary market attractive?
- Assessing the competition and are these markets getting more competitive?
- Are there specific asset classes to zero in on in your target market?
- Current financing terms as you go down in market size
- Risk/Return vs. Gateway cities
- Pricing and valuations compared to 2007’s heyday
- Due diligence vs. established markets
- Early vs. late booming markets… Which secondary and tertiary markets are poised for most investor interest? What sets them apart?
Turning Demographic Trends into Real Real Estate Profits
This session will discuss real life examples on how a real estate developer can take advantage of millennial trends like the shared economy, transit and urban 24-hour cities as well as retiring baby boomer preferences.
- What is the future for the losers…? Suburban office and shopping centers?
- Marketing your real estate product to the correct demographic
- What type of amenities appeal? Technology in demand?
- The changing office
- Technology’s impact on new project site selection
- Crowdfunding’s impact
- Boomer & millennial appealing sectors-Where is there an intersection?
- Factoring in generational traits into your real estate projects
Buy/sell/hold? Investor options in Fully Valued Markets
- Are you above or below water?
- What do your partners want to do?
- Where are you in your fund’s life?
- What are you going to do with the proceeds?
- Creating additional value
- Selling a stake vs. selling the whole enchilada
Construction vs. Acquisition vs. Improving your Existing Properties… Where can you create the Most Value in this Cycle?
- Can you create value in a 95% occupied portfolio?
- Market and property-specific considerations
- With an uncertain economic future are long-term construction projects too risky compared to the other value-added strategies?
- Acquisitions with additional construction possibilities
- Transforming a property’s use
Core Strategies, Deal Structures, Returns & Risks
- Core/Core + definitions and performance
- What inning are gateway city markets in? Where is it already in extra innings?
- Can you make $$ buying a 3-4 cap?
- Changing interest rate environment and its impact
- Are your clients interested in going out on the risk spectrum?
- Where is core overheated?
- Core development…An oxymoron?
- Current foreign investor preference
- Style drift issues
- Core properties in need of value-added improvements… What do you do?
- Recent fundraising and LP focus
- Secondary market core
Economics of Real Deals Today… Opportunistic Repositioning Strategies and Value-Creation Success Stories
- Financing repositioning: What are the best options today?
- How can you succeed when the previous landlord failed…? Lease-up strategies
- Below-market rents… Determining how much room you have to grow and how to get there
- Renovations… What are you doing? Where is there the most bang for the buck?
- Should you re-position towards the millennial demographic?
- Major renovations/repositioning under economic uncertainty… Can you take the risk away?
Entering a New Market
So many institutions have entered your favorite markets making prices high and supply scarce. You’ve come to the conclusion that your markets have ran their course and now you have to consider looking for greener pastures. The discussion will focus on choosing the market and the best ways to hit the ground running
- Making the local connections and building your team
- What you can learn by driving the market
- Are active investors in the market forthcoming with information?
- Partnering… Buyer beware
- The data side
- Passive approaches
- Changing asset class focus
Large Fund Plenary: How is the Current Macro Uncertainty Impacting the Deployment of your Funds Where are you Finding Attractive Investment Opportunities?
- How are you deploying capital? Do you have a 2-3 year business plan? How is that strategy impacting the deployment of your funds?
- Pricing and valuation
- Hi-end condo markets & multifamily… Are you putting any new $$ in? Has the correction already begun?
- The next 10 years… What will be the macro trends you look to when making investment decisions?
- Houston… Blood bath or opportunity?
- Market volatility: Sit out vs. keep investing
- What is the next undervalued asset classes or markets you are considering
Private Equity Firms Operating on a Deal-By-Deal Basis: Is it a Means to an End or a Strategy?
Many real estate investment firms will do these one-off deals to get a track record so they can raise a fund. Others partake in this strategy because the opportunity does not fit the profile of their fund. Still others will do these because an LP wants to do co-investment deals. The question is should this deal-by-deal strategy be a permanent tool in the tool box?
- Advantages and disadvantages of the deal-by-deal structure
- What should you look for in an LP partner?
- Sourcing investors and deals… Comparing institutional vs. high net worth markets
- Spin out fund for new venture
- Reporting, manager control and investor rights
- Economics vs. single fund
- Is your strength deal making or fundraising
- Fees, waterfalls & other structural options
State of the Industry and Fund Update 2016
- Will investor & private equity $$ that is flooding the market in 2016 continue in 2017?
- Is global economic volatility causing institutional investors to realign their investment strategies? Is the direct investment model touted by pension funds and SWFs working and how is it affecting fund raising?
- End of fund life issues
- Manager M&A—are we in a consolidation phase?
- SEC stepping up review and the cost of regulatory compliance… Will it strangle managers to death?
- With risk-free return in the 2-3% range, bonds at 4-6% and equities at 8-10% what kind of returns are investors looking for? Is 20% in real estate a realistic goal anymore? Have you been achieving your performance objectives?
- Capital raising environment
Opportunistic vs. Value-Added vs. Core Investments: Where is the LP $$ Going Today?
- Repeat investors… Are they changing their risk tolerance?
- Hold times * Is 24-hour city core overvalued and hence more risky then value-added or opportunistic?
- Fixed income risk/return
- Rebalancing complexities
- Non-US opportunistic vs. core
- Balanced approaches
How you can Play Defense on a Real Estate Portfolio
Troubles in the oil patch… China coming apart… Interest rate uncertainty… The foreign buyer pulling back due to troubles at home… With these and many other macroeconomic issues many real estate managers are looking at achieving investment objectives by going for safer plays going forward. This panel will discuss how you can position yourself to take advantage of the uncertainty in today’s market
Capital Alternative Sources & Deal Structures for New Acquisitions, Refinancings & Developments
- Evaluating the emergence of ground leases
- Leverage on income producing assets
- Israeli bonds… Too expensive?
- EB5 is the time it takes worth it?
- Crowdfunding… Has its time arrived?
- Private vs. traditional lenders
Crowdfunding 101 Workshop for Funds and Direct Property Owners Only (small group discussion)
- How it works
- Legal and regulatory issues
- What are the hurdles developers need to overcome?
- What is the largest deals out there? How scalable is the market?
- How do crowdfunders choose clients/owners choose platforms?
- Fee structures
- Which products/asset types work?
- Comparing routes to market
- How does crowdfunding fit into your capital stack?
- Debt, equity & fund raises
- Managing risks
- Institutional-quality project fundraises
- Customer interface
Debt Shark Tank: Evaluating Challenging Deals
Loan-to-value ratios, interest rates and personal guarantees will be among the discussion points as we financing from a project or portfolio point of view
Tank Moderator: Will act as the moderator
The Debt Capital Providers (3-4 capital providers)
The Borrower- Operator/Owner (2-3 funds will choose one of these deals) small ($10 million deal); mid-sized ($50 million deal); Trophy Deal; Portfolio Deal
Mezz/Bridge: The Latest Deal Structures
- Supply/Demand trends
- Which cities/asset classes give you increasing concern?
- What is the most important consideration when choosing to work with a borrower?
- Construction lending 2017
- Tranches, rates, terms, call protection and structures today
- UCC Changes
- “Soft” hard $$
- Where is the intercreditor today?
- Are you hitting your return bogeys today?
- What are they?
- Are any of your organizations currently raising new funds for mezzanine investment? How is it going?
- Mezzanine lending or preferred equity?
- Maturity financing activity
- Describe your latest transaction
Senior Debt Lender Viewpoint 2016… What will be your Debt Availability Going Forward
- What are the largest market challenges today? Going forward?
- Today’s deal structures* What is the takeout?
- Construction loans and rights of first refusal
- Your latest, most creative deal
- CMBS “B” piece retention issues
- Bank surcharges… Any impact?
High Yield Loans on Transitional Properties
- Is there too much bridge supply? What is the affect? Dropping rates?
- Maturity financing activity
- Small deal structures
- Stretch senior financing
- Syndication trends
- Any bank players out there?
- Financing & structuring small deals
- Borrow-related vs deal-related
- Are you going higher up into the cap structure?
- Food group and location sweet spots
- How much leverage are you comfortable with?
Subscription & Short Term Fund Financing
- Bank surcharges… Any impact?
- Draws, paydowns, reallocations
- Interest estimates, payments and allocations by deal
- Legal & Structural latest
- As the market gets more volatile should you increase your available credit? Drawdown your lines more?
- Long-term lines of credit
- Matching loan type and purpose
- Current rate options
Friends & Family to Institutional... The Closed Door Discussion for Funds and Direct Property Owners Only (small group meeting)
At this intimate discussion for property owners only this interactive discussion will focus on the hurdles and restrictions that come along with making this potentially monumental jump
Accessing Foreign Capital: What are the Major Concerns when Investing in US Real Estate ?
- Where are you seeing the most significant demand from investors in terms of region? Is demand growing or shrinking?
- What is the impact of the strong dollar?
- Asian institutional investors and their return expectations
- Where are foreign buyers looking to deploy there capital?
- EB-5 pros and cons
- Evaluating changes to U.S. taxation of investments by non-U.S. investors under the PATH Act and FIRPTA
- Impact of transparency rule on the high-end condo market
- Matching foreign sovereign and pension fund investment horizons
Fundraising… What are the Biggest Challenges Going Forward for the Non-Mega Funds?
- Anatomy of a failed fundraise
- Fee/promote changes
- How are you different?
- US Pension vs. other types of capital
- Some tips if you are raising a fund out of your usual comfort zone
- Direct investment, separate accounts and non-fund structures… is it an easier fundraise? Are they the way to go
- Getting past first-time challenges
- Niche vs. multi-asset funds
- Today’s final close timeframe
- Guerilla marketing vs. the mega funds
Joint Venture Best Practices for Operating Agreements, Structures & Beyond
- The latest trends… Fees, waterfalls, major decisions rights, default provisions, sale, refinance & transparency
- Programmatic best practices
- Partner due diligence
- Operating and capital budgets
- Alignment of interests and exits
- Taking fund assets to seed a joint venture
- Institutional vs. LP partners
- Fund-Fund joint ventures
- New twists in operating partner/money partner joint ventures
GP/OP Joint Venture Shark Tank
Deal terms, waterfalls and cost overruns will dominate the conversation as we discuss joint venture from both the operator and equity provider perspective.
Tank Leader: Will act as moderator
The Funds… Capital Providers (3-4 capital providers)
The Operating Partners (2-3 operating partners will choose one of the following to present Acquisition; Development Deal; Repurposing; Retenanting
Family Offices and High-Net-Worth for CRE Investments
- Real estate investment team makeup & decision making process
- Investment goal… capital preservation vs. investment gain and its impact on your allocation of your investment portfolio
- Core vs. value-added vs. opportunistic… Gateway vs. secondary cities… Where is your allocation going? * Co-investment best practices
- Evaluating the risk of direct investments
- What are your current feelings on fund-of-funds?
- Debt products
- Manager level due diligence, assessment & monitoring
- Social impact & sustainable investments
- Tax-efficient real estate investments & 1031 exchanges
New/Emerging Managers: The LP Guide to Investing with
- What exactly is an emerging manager?
- Why are you investing with emerging managers or have emerging manager programs?
- How do you source new managers? How do managers access you and your peers
- Track record, team, back office… What factors are most important?
- Structure/governance/control/fees/due diligence… Are they different from established funds?
- Breakaway fund best practices
- Going from JV operating partner to fund
- Will you be an anchor investor? In on the first close? Do you require other institutional investors to be in place before making an investment in a fund?
- Major/common mistakes you see Emerging managers make
LP Asset Allocation
- How do you determine your overall allocation? Real estate allocation?
- Are you looking to change your allocation? Why? How?
- Do you have a set allocation to emerging managers? If so is it a part of the real estate or emerging manager allocation?
- Are REITs part of your real estate allocation? Real estate debt?
- Are you considering secondaries?
The LP Panel on Alternatives to the Fund Structure: Fund vs. Direct vs. Separate Account, Co-investments & Club Deals
- Identifying the up and downside of such arrangements?
- How did you have to change to use these alternatives?
- Control issues
- Exit term and strategy
- Do you partner with existing partners or new managers trying to build up a track record?
- Structural considerations… What are most important?
LP/GP Alignment of Interest… How do you Bond with a Partner on a Level that Can’t be Attained in the Docs?
- Longer hold times: When are you for them?
- Alignment for different structures, strategies and risk taking
- Know your partner
- What you can learn during negotiations?
- How much transparency?
- What is your decision making process?
- Fees, profits shares and skin in the game
- Role in fund governance and fiduciary duties
- Key man events
LP/GP Shark Tank... Picking a Fund & Negotiating Terms
GPs will present to LPs their fund strategy and terms. LPs will discuss if they are willing to invest and negotiate their terms, fees, carries, most favored nation clauses, splits, hurdles will be debated.
The LPs (3-4 LPs) will consider investing in the funds
The GPs (2-3 GPs) will choose among these fund types Emerging fund; Mid-Sized fund; Large established fund
How to Approach a Family Office (small group meeting)
This interactive discussion, open only to investment managers, will have family offices discuss the most successful ways a new manager can approach them.
- Have investment practices changed, post-crisis?
- Old vs. new money
- What is expected from an investment manager?
- Manager selection process
- Motivations of family offices
- Marketing best practices
- Vs. marketing to institutions and pensions
- Perfecting your elevator pitch
- You’re in the door… What should you do next?
Fee/Promote Structures and Terms in a Fee-Challenged Environment
- The latest politics on fees… Dodd-Frank, the SEC and other regulatory hot points
- Annual management fee push back… Is it still an issue?
- Fees and promotes for different vehicles and comparisons between new and established managers
- Deferred promotes through pooling
- Fees/Promotes on restructured funds
- Fee waivers, breaks on closing position and most-favored nation clauses
- How much income in fees are needed to keep the lights on?
Factoring in New Regulations into Foreign Fund Structures
- Satisfying FCPA/Patriot Act/OFAC requirements
- What are the structures that you see being implemented most commonly to deal with foreign investors top concerns?
- Minimize or avoid FIRPTA and FACTA withholding
- Complying with Shariah Laws
- Minimizing worldwide tax
- Sovereign wealth funds vs. other
- Desired exit strategies
- Eurodollar market issues
- Blockers and non-blockers
- Domestically controlled REITs and alternative investment vehicles
- Some of the greatest risks inherent in structures that have been implemented
Strategy Change…What was the Change…? Why...? How did it Go?
- What do your docs say? Can you build it into the docs to get this fund flexibility?
- Have you done a dequity deal?
- Moving on up… Going to a new market
- Asset class changes
- Going from core to value-add
- Swinging a development deal
- Allocator to operator
Manager M&A Case Study
Have you been recently been involved in a recent merger or acquisition? Maybe we can get the principal players together to discuss?
New Fund/Emerging Manager: A Direct Guide to What it Takes to Succeed Today
- Defining the term “Emerging Manager”
- How best does an emerging manager manage their way through the 1st and 2nd allocations so that they can “graduate” or “emerge”?
- Structures, governance and fees
- Consultant/LP relationship – how to manage the process
- How do you capitalize a venture so as to attract a quality investment/asset management team?
- What are the sources of the GP capital? Are you willing to invest in the GP? What are some of the pitfalls of taking on GP investors?
Fund Structuring: Market Trends
- GP alternative structure/co-investment flexibility & related fees
- GP indemnification, obligations and liability standards
- ERISA, UBTI, Dodd Frank, JOBS Act, CFTC Commodity Pool Operator & Volcker Rule – compliance and exemptions
- Key principal/employees carried interest participations & time commitments
- LP/Preferred deferred promotes/catch up distributions, take control, most favored nation and advisory board rights
- Carried interest, asset management & other fees/fee waivers
- Pooled vs. deal by deal distributions, clawbacks and escrows
- Exit Strategy and default remedies
- Advisory board appointment/observer rights self-help remedies for fund
- Assessing issues around the Bipartisan Budget Act of 2015 that amended the existing rules governing tax audits of partnerships in the U.S and its impact on recent IRS actions, examination points and concerns
- Foreign investors
- Political candidates and the future
- Minimizing worldwide tax
- Pooled distributions with tax dispersals
- Preferred return issues
- Tax allocations
International; Land & Homebuilding; Medical Office/Senior Housing; Office; Women in Funds; Multifamily/Student Housing; New Funds; Retail; Single Family rental