Speaker slides for the 3rd annual EisnerAmper Real Estate Private Equity Summit West

1. 9:20 AM
What’s Next: State of the Market
with an Eye towards the Future

2. Author: Bob Gray, Rockwood Capital
Trend Potential Impact
Demographics / Aging Labor Force Fewer qualified workers
Limited Construction Financing Less supply; benefits existing product
Elevated Development Costs Limits supply; pressures land values
Rising interest rates Values fall if no offset from improving fundamentals
Space Compression Lower absorption; higher TI costs
Co-working Urban areas benefit; future volatility?
P2P Financing, FinTech Lower financial services demand
High Cost of Housing
Pressures urban locations; supports suburban locations and
affordable metros
Traffic / Infrastructure at Capacity Higher demand in “outer urban” locations
Driverless Cars
Increases suburban residential demand; do jobs follow
housing?
INVESTMENT TRENDS

3. Author: Diane Olmstead
• In Los Angeles County, nearly 50,000 people are homeless on
any given night
• In California, a minimum wage earner must work 89 hours/week
to afford fair market rent for a 1BR
• 2017 Bay Area Council poll:
 78% of respondents know someone forced out of the region by high
housing costs
 76% think the housing shortage is threatening the economy
 10,000 families applied for 115 apartments at BRIDGE’s Marea Alta
affordable housing in San Leandro
• Mid-level San Francisco teachers use 69% of paychecks for rent for a one-
bedroom apartment.

4. 10:00 AM
Chasing Yield: Value Add &
Repositioning Opportunities in a
Picked Over Market

6. Paul Kaseburg, MG Properties Group
Renovation Considerations
•What is the target hold period?
•How durable/timeless is the upgrade?
•What types of upgrades produce the
best IRR?
•Does the exit cap reflect the business
plan for the asset? (Separate capital
markets & value-add aspects of cap
rate.)
•How does the value-add impact the
investment’s risk profile?
•What is the likelihood a future buyer will
re-renovate?
•What is the most effective timing/scope
of renovations to create value?
(Execute or sell the dream?) # Years Before “Re-Renovation”
IRRofRenovation
Investment(%)
Renovation IRR Isolated
(Excluding Capped NOI)

7. Author: Preston Sargent, Bailard, Inc.
Source: Bailard Research. The graph and table provide a theoretical framework and general summary of four real estate investment
strategies commonly used by portfolio managers. There is no guarantee that a particular strategy will achieve its investment, income or
return objectives or targets. The targets shown are not indicative of the past or future performance of any Bailard strategy or account.
CORE
(Income Focus)
CORE PLUS
(Total Return Focus)
VALUE ADD
(IRR Focus)
OPPORTUNISTIC
(Equity Multiple Focus)
Strategy Buy and hold
stabilized
properties
Buy Value Add, fix… then
a) Hold for cash flow or
b) Sell and redeploy
Buy Value Add, fix…
then sell and redeploy
Speculative
development; distressed
property and debt
Leverage Low: 20-30% Low/Moderate: 35-45% Moderate/High: 60-75% Aggressive: 75% +
Income (% of Total Return) 75-90% 60-80% 30-60% 15-40%
Total Return 8-10% 9-13% 12-16% 15% +
Bailard’s Unique Approach to Core Plus

8. 11:45 AM
Multifamily Spotlight: Outlook
for Apartment Investment and
Development

9. Please do not cover this text Author:
Tom Hoban
CEO & Co-Founder
The Coast Group of
Companies
 Problem: Operating apartment properties is laden
with friction.
 Solution: There’s a lot of room for improvement
with technology.
Premises:
 For 30+ years, very little has changed in the way
apartment properties are managed.
 If not us, then who?
 In 2017, we opened Coast Innovation Center to
change that.

10. Coast Innovation Center
Purpose: To serve as a connection between technology
and the Coast Group of Companies
· CRES (Property Management) · CWS (Facility Management)
· CEP (Property Investments) · CPM (Facility Service)
Current Projects
Chatbox Newco CWS
In
Dev’t
Deployed In Beta

12. Author: John Protopappas, CEO, Madison Park

13. 1:40 PM
Future of the Bay Area: Large
Employers and Developers Meet
the Elephant in the Room

14. SSF Campus
By The
Numbers
5.4
Million
Square feet
20,000
People
Visit our campus
everyday
200
Acres
Owned
$3
Billion
Value including
land appreciation
~$2.8
Billion
Investment
through 2021
Carla Boragno
Vice President | Site Services

15. Lewis Knight l Facebook
DESKS + DOORS + DISTANCE
Lake Geneva l San Francisco Bay

16. University of California, San Francisco (UCSF)
I believe our social
alchemy of inclusion,
collaboration,
excellence and
dedication to a public
mission is very
special and
something I will work
to preserve at all
costs.
Chancellor Sam
Hawgood, MBBS

17. University of California, San Francisco (UCSF)
Established 1864
2nd Largest employer
in San Francisco & 3rd
in Bay Area
6,400 health science
graduate students &
trainees
24,000 employees
$6B / annual
enterprise and growing