1. CATCHING THE WAVE:
BUILDING A LAND PIPELINE
IN A CHOPPY MARKET
ULI Fall Meeting - Los Angeles, California
Friday, October 28, 2011
11:15 a.m. – 12:15 a.m.
Room 150 A/B/C
Moderator: Tom Reimers, Land Advisors Organization
www.landadvisors.com

2. Our Panelists
Mark C. Kehke, EVP and COO, DMB Pacific
• Oversight of Pacific Division including new project evaluation, planning, entitlement, and community development
• 25+ years underwriting, acquiring and developing large-scale master plans across the U.S.
• Bachelors in Economics & MBA both from U.C. Irvine
Jason Keller, Senior Vice President, Oaktree Capital
• Head of residential investment including land, land development, homebuilding and similar investments
• 15+ years underwriting and acquiring land and other real estate assets for institutional investors nationwide
• Bachelors in Finance from Utah State & MBA from the Wharton School at U. Penn
Charles R. Lande, Founder, President & CEO, The Chadmar Group
• 36+ years selling, acquiring and developing large-scale residential, commercial and resort projects in some of
the most coveted markets in the U.S.
• Bachelors of Science from University of Southern California
Gregory A. McGuff, President – Inland Division, Lennar Homes
• 17+ years acquiring, building and managing projects totaling more than 10,000 new homes for one of the largest
public homebuilders in the U.S.
• Bachelors of Science from Cal State Northridge & CPA credential while at Ernst & Young
Garrett J. Solomon, Co-Founder and President, RPL (formerly Rockpoint Land)
• 18+ years underwriting, acquiring, funding and developing large-scale residential land developments for
some of the most active residential land investors in the U.S.
• Bachelors in Economics from Johns Hopkins University
1

3. Historic Finished Lot Values: 1992-2011
City of Temecula
$300,000 50.00%
$250,000 As competition for lots and starts increased, 45.00%
land values exploded eating up more and more
Finished Lot Value as % of Median New Home Price
of the home price. As new home demand
waned, lot values corrected back toward the
$200,000 long-term trend of 'healthier' markets. 40.00%
Finished Lot Value
(7,200 SF Lot)
$150,000 35.00%
$100,000 30.00%
$50,000 25.00%
$0 20.00%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Temecula Finished Lot Values FLV as % of Home Price
Source: Land Advisors’ research, HanleyWood
2

4. Historic Finished Lot Values: 2003-2011
West Riverside County
As the downturn has proceeded, a bifurcation of
values has occurred based on market
desirability of home builders, creating distinct
buyer profiles and differing price elasticity.
Source: Land Advisors’ research
3

5. Inland Empire Lot Supply Characteristics
Source: Land Advisors’ research, Developer’s Research, Metrostudy
4

6. California Land Transaction Trends: 2008-2011
All Transactions
$1,600 $8
$1,400 Overall, volume and deal size has $7
rebounded from trough. Recent lull in 1H
2011 volume expected to continue into
$1,200 next year. Bigger deals coming to market. $6
Total Transaction Consideration
$1,000 $5
Average Transaction Size
(in $millions)
(in $millions)
$800 $4
$600 $3
$400 $2
$200 $1
$- 102 167 154 219 260 216 186 $-
H1 '08 H2 '08 H1 '09 H2 '09 H1 '10 H2 '10 H1 '11
Total Consideration Average Deal Size
Source: Land Advisors’ research
5

7. California Land Transaction Trends: 2008-2011
Transactions by Geography
$1,200 $12
$1,000 Regional flight to quality is $10
manifesting in higher average deal
sizes in So Cal and Nor Cal despite
$800
lower transaction volume. $8
Total Transaction Value
Average Deal Size
($Millions)
($Millions)
$600 $6
$400 $4
$200 $2
65 28 9 103 44 20 102 38 111 65 43 191 38 31 151 36 29 128 36 22
$- 14 $-
H1 '08 H2 '08 H1 '09 H2 '09 H1 '10 H2 '10 H1 '11
So Cal Tot. Value Cen Cal Tot. Value Nor Cal Tot. Value
So Cal Avg Deal Size Cen Cal Avg Deal Size Nor Cal Avg Deal Size
Source: Land Advisors’ research
6

8. On behalf of our panelists,
thank you for your time today.
www.landadvisors.com