Day One - 5/5Monday, 5 May 2025 - PT

· Impact of Fed Predictions, the bond market and interest rates

· Where are we vs. other recent cycles?

· Are the news headlines correct on delinquency direction? Do you have a figure in mind on allocation to distress and if you are buying distressed building or providing equity vs. debt

· How long will extend and pretend, both formally and informally continue? What are the bank regulators saying? Does it matter considering Trump deregulation and all the private financing out there?

· Managing your portfolio of troubled loans vs. how are you working out others… is Loan-to-own on the table?

· With all the $ out there will rates be dropping and terms be less ornery?

· Role of increasing insurance rates and natural disasters

· Local macroeconomic changes to be aware of in the largest state

· Impact of some large companies mandating work from office… Does this make office your favorite distressed play?

· April 2026… Where is the 10 year? Should you be in apartments or office? What inning will we be in?

· Evaluating market liquidity

· Comparing local sub-markets

· Which underperforming markets do your feel may be diamonds in the rough?

· How friendly is the local government?

· Work from home and local vacancy

· What kind of information do you find most valuable?

· How are different markets re-pricing? Comps without sales… When will the value be back?

· Looking at the Bay area

· Tax optimizing deals

· What kind of refi availability is out there?

· Lots of pref out there… What are the refi terms?

· Extensions in exchange for principal payments, cash management and equity pledges: What are the deal terms?

· How do you use your servicing and special servicer?

· Contrasting different lenders and their approaches

· Impact of tax ramifications of different strategies for debt cancellation

· What kind of equity is needed?

· What kind of special situations are you not refinancing?

· How do you define “Stressed properties”

· What kind of cap rates are distressed cash flowing properties being offered at?

· Comparing different asset classes

· When is it too early to invest?

· Are there a lot of under-managed buildings out there? What are they pricing at?

· Are LPs forcing the hand of distressed GPs of stressed properties?

· What happens when the lease rolls?

· Are lenders exercising remedies on stressed properties?

· Foreclosures and natural disasters: What is your policy?

· What are some pressure points that lead to enforcement actions for underperforming buildings, those under construction and heavy rehab? When does giving up the keys make the most sense in practice?

· New developments in the UCC foreclosure process, the receiver process and Chapter 7

· Deed-in-Lieu of foreclosure vs. the judicial/non-judicial foreclosure vs. strict foreclosure

· Taking into account monetary performance, cash management, asset preservation and property tax payments

· Options for properties with multiple owners

· Underperformance vs. Maturity default vs. Loan covenant violations: Which do you pay attention the most to

· Significant tenant bankruptcies: What is significant enough to be a trigger?

· How will current problems impact future negotiations? Relationships, negotiations and communications

· Raising NOI, expense culling, re-tenanting, repositioning, renovating: What is the secret formula?

· Leasing trends, TI and concessions

· How much $ do you need to put in? What kind of return will you be getting?

· What are you doing with your reserves?

· Coming up with and funding an individual asset plan

· What is new to the checklist?

· Amenity ROIs

· What was the last thing you did to optimize building performance?

· Where are rates and credit condition? Are they more competitive to allow new distressed acquisitions?

· Availability of refinancing and reorganizing debt

· Investing in debt vs. equity vs. physical buildings

· Negative leverage, leveraged sources, structures and rates: Where is hard money at vs. debt funds? Raising equity?

· Negative leverage and distressed properties

· Considering alternative financing like PACE and ground leases

· Considering acquiring debt vs. equity? What does your distressed buy box look like?

· What are the characteristics to look for in your building that makes it a viable candidate for a conversion to multifamily? How low does the value need to be?

· Amenities 2026: Examining your tenant base and how can you make the building shine for them?

· Local tax incentives that make the deals work

· How are appraisals coming in? Are you comfortable with the current valuations out there? What kind of loss in value do you consider write down territory?

· Valuing uncompleted assets and conversion candidates

· GFC dramatic write downs vs. today’s slow bleed… Will it continue?

· Key details: How are banks writing down properties?

· Valuation haircuts by asset type and market… What about disaster-prone markets and increasing insurance amounts?

· How much are vacant and near-vacant buildings worth vs. half-filled buildings with long-term leases?

· Evaluating the risks and risk adjusted returns of property vs. loan investments and investing in different parts of the capital stack

· Which markets and assets are you redlining? Which have peaked?

· What are you doing before the lease is up? When are you doing it?

· Current macro factors and micro risks

· What will be the next largest risk that will arise?

· Comparing pre- and post-covid loans

· What are you looking for to add PACE to the capital stack?

· Curing under the ICA vs. letting it ride: What kind of cures are available today?

· Tricks of the trade when working out multi-party permanent capital entities: EB-5; TICs and syndication workouts

· Protecting your assets in high vs. low basis situations

· When do you look to sell your note?

· Convertible and sub debt workouts

· How should your report bad news? What are solutions that lenders want to hear for bad news?

· How high up the capital stack will you go with your money?

· How do you structure your real estate investments? What is your investment time horizon?

· Lending vs. equity: Where are you playing?

· What is your cost of capital? IRR?

· Which assets are you open to?

· How are you approaching working out your existing problem properties?

· How are you sourcing opportunities?

· Is your cost of capital at a point that you would consider condo conversions and adaptive reuse? Buying broken construction projects?