tenth anniversary challenge november 9-10, 2011

134 Pages·2011·12.09 MB·English

by  Christina Griego

TENTH ANNIVERSARY CHALLENGE
NOVEMBER 9-10, 2011

LEAD SPONSORS:

CASE SPONSOR: J.P. MORGAN
FIRST PRIZE SPONSOR: THE LIONSTONE GROUP
IN-KIND SPONSOR: REAL ESTATE FINANCIAL MODELING
LEAD SPONSOR: ROTHSCHILD REALTY MANAGERS
The 2010

2011 NATIONAL REAL ESTATE CHALLENGE
Wednesday-Thursday, November 9-10, 2011
Coordinating Host: The UT Real Estate Finance and Investment Center

Challenge Overview:
Teams of graduate students from leading business/real estate schools around the nation compete in a
real estate investment case competition by providing a brief presentation to a judging panel of real
estate professionals from prominent companies.

Lead Sponsors:
Case Sponsor: J.P. Morgan
First Prize Sponsor: The Lionstone Group
In-Kind Sponsor: Real Estate Financial Modeling
Lead Sponsor: Rothschild Realty Managers

Supporting Sponsors:
Clarion Partners
L& B Realty Advisors
Parmenter Realty Partners
Stockbridge Capital Group
Stream Realty Partners
Trail Creek Capital

Participating Schools:
Berkeley: University of California at Berkeley, Haas School of Business
Chicago: University of Chicago, Booth School of Business
Columbia: Columbia University, Columbia Business School
Cornell: Cornell University, Program in Real Estate
Duke: Duke University, Fuqua School of Business
Michigan: University of Michigan, Ross School of Business
Northwestern: Northwestern University, Kellogg School of Management
NYU: New York University, Stern School of Business
Pennsylvania: University of Pennsylvania, Wharton School of Business
Texas: University of Texas at Austin, McCombs School of Business
UCLA: University of California at Los Angeles, Anderson School of Management
UNC: University of North Carolina, Kenan-Flagler Business School
USC: University of Southern California, Marshall School of Business
Vanderbilt: Vanderbilt University, Owen Graduate School of Management
Virginia: University of Virginia, Darden Graduate School of Business
Yale: Yale University, School of Management
John B. Bartling, Jr.
Global Head of Real Estate
Ares Management LLC

Mr. Bartling is Global Head of Real Estate for Ares Management LLC. Ares
Management is a global alternative asset manager and SEC registered
investment adviser with approximately $41 billion of committed capital under
management and approximately 450 employees. The firm is headquartered in Los Angeles with
offices across the United States and Europe.

Formerly Managing Partner of AllBridge Investments and Chief Investment Officer of the firm.
AllBridge was a portfolio company of Ares Capital Corporation (NYSE: ARCC), for which he
was Senior Advisor to Ares Capital Markets Group. AllBridge sponsored 4 real estate
investment funds, 3 of which have been round tripped, and one corporate investment, Helix
Financial, which AllBridge sold to BlackRock Solutions in 2010. Previous to AllBridge, Mr.
Bartling founded WMC Management Company (“WMC”), a privately held real estate operating
company with over 3,000 employees and clients including Olympus Real Estate Partners,
Arnold Palmer Golf Management (“APGM”), Walden Residential, and Hyphen Solutions.
Most notably, took Walden Residential (NYSE: WDN) private as CEO in 2000. Walden owned
and managed 142 properties with 39,640 apartment units and fee managed another 15 properties
with 4,245 apartment units at the time of acquisition. Walden was headquartered in Dallas, with
regional offices in Atlanta, Austin, Dallas/Fort Worth, Houston, Phoenix, and San Antonio.
Walden was sold in March 2006 to a subsidiary of Dubai Investment Group. WMC
Management Company, the operator of APGM and third party accounting services sold later
that year to Walton Street Capital, LLC.

Prior to WMC, Mr. Bartling served as the CEO and President for Lexford Residential Trust,
Inc. (NYSE: LFT), a publicly held multi-family REIT. Lexford Residential Trust (fka Cardinal
Realty: CRSI) was a fully integrated REIT, which owned and managed 402 apartment
communities throughout the Midwest and southeast United States. The 402 apartment
communities composed 36,609 residential units serving the value-conscious segment of the
multifamily residential real estate industry. Located in Columbus, Ohio, the company was
merged with Equity Residential Trust (NYSE: EQR) in 1999.

Before LFT, Mr. Bartling served as Director of the Real Estate Products Group of Credit Suisse
First Boston. Prior to CSFB, Mr. Bartling served as an Executive Vice President of NHP
Incorporated. Mr. Bartling’s previous professional experience also includes Trammell Crow
Residential, as a Development Principal, and Mellon Bank, NA as a Vice President of the
Commercial Mortgage Banking Group.

Groups and Associations
Mr. Bartling has served on the Board of Directors of APGM, RockResorts, the Children’s
Hospital Research for Ohio State University, the Harvard Joint Center for Housing Studies:
Leadership Forum on Pension Fund and Endowment Investments in Domestic Emerging
Markets, Big Brothers and Big Sisters Association of Columbus, Ohio, NMHC Board of
Directors, Real Estate Round Table and Hyphen Solutions Board of Directors. Mr. Bartling has
served on the Executive Council and as Chairman of the Finance Committee for the National
Multi Housing Council (“NMHC”), as well as on the Board of the Multi-family Committee of
the National Association of Home Builders.

Honors
Mr. Bartling won the BBB Business Integrity Award for Lexford, Inc in 1996 and was a judge
for Ernst & Young Entrepreneur of the Year. He was the co-founder of Caring Partners for
Kids, awarded the 2004 Community Service Award by Multifamily Executive, and served on
the Strategic Planning Committee of Saint Michael and All Angels Episcopal Church in Dallas.
Mr. Bartling received a B.S. in Marketing from Robert Morris College in Pittsburgh,
Pennsylvania.

Steve Bronner
Managing Principal & Southwest Regional Director
Parmenter Realty Partners

Since joining Parmenter in 2002 Mr Bronner has been involved in the strategic
Since joining Parmenter in 2002, Mr. Bronner has been involved in the strategic
planning of the company as well as being presently responsible for investment
acquisitions, asset management, and investment sales in the Southwest region. He has over 30
years of real estate experience including involvement in development,
acquisitions and asset management. Mr. Bronner and Mr. Parmenter first worked
together in 1985 at Lincoln Property Company.

Mr. Bronner has structured acquisitions and/or financed transactions totaling in excess of $1.7
billion, representing separate account clients such as Stanford University, New York State
Teachers Retirement Fund, The Alaska Permanent Fund, and California Public Employee
Retirement System. Prior to joining Parmenter Realty Partners, he served as a senior
acquisitions officer at Sarofim Realty Advisors and Kennedy Associates Realsenior acquisitions
officer at Sarofim Realty Advisors and Kennedy Associates Real Estate Counsel, Inc. His
previous experience also includes directing the real estate acquisition strategies at IBEX
Institutional Advisors. Prior to IBEX, he held positions with The Worthing Companies,
Salomon Brothers, and Lincoln Property Company.

Mr. Bronner is a graduate of Concordia University and received his CCIM designation inMr.
Bronner is a graduate of Concordia University and received his CCIM designation in 1980. He
is a member of the National Association of Office and Industrial Properties (NAIOP). He serves
on the board of directors for the North Texas Chapter of NAIOP and was President of the
chapter in 2005. Mr. Bronner has been elected to the National Board of Directors for NAIOP
and serves on its executive committee.
John Buza
Head of Asset Management – Americas
Morgan Stanley Real Estate Investing

John Buza is a Managing Director and Head of Asset Management in the
Americas for Morgan Stanley Real Estate Investing Business which aggregates
approximately $22 billion of Assets Under Management. He has 29 years of
experience in all aspects of business where he is involved in the acquisition, asset management
and disposition life cycles of Morgan Stanley Real Estate Funds and Prime Property Fund
investments and oversees real estate in the Office, Retail, Multifamily, Hotel, Industrial and
Land sectors. John sits on the Board of a number of private investments owned by the various
Morgan Stanley Real Estate Funds.

Prior to joining Morgan Stanley, John spent 14 months as Senior Vice President of Asset
Management of MeriStar Hospitality Corporation, a hotel real estate investment trust where he
was responsible for asset management and dispositions. Prior to joining MeriStar, John spent
12 years at Salomon Brothers Inc., where he served as Director and Head of Firm Investments
with full responsibility for strategic asset management, disposition and financial reporting for
all of Salomon’s non-security investments. Prior to Salomon Brothers Inc., John spent four
years at Touché Ross & Co. as a Senior Accountant.
John is an active member of the Urban Land Institute and International Council of Shopping
Centers and is a licensed broker in the State of New York. He received a BA in
Accounting/Business Administration from Muhlenberg College and is a Certified Public
Accountant.

Christopher T. Chee
Managing Director
The Blackstone Group

Christopher T. Chee is a Managing Director in the Real Estate group and is
based in Los Angeles. Since joining Blackstone in 2002, Mr. Chee has been
involved in sourcing and executing transactions, including the Larkspur
Hospitality Loan, Royal City Center in British Columbia, the Downing Street Portfolio in
Toronto, the BCorp portfolio in Calgary, and most recently, played a key role in the acquisition
of Trizec, CarrAmerica Realty Corp and Equity Office. Prior to joining Blackstone, Mr. Chee
was a Vice President and one of the original employees at Fortress Investment Group LLC, an
Associate in the Global Principal Finance Group of UBS Securities LLC, and an Associate at
BlackRock Financial Management L. P. Mr. Chee received a BA in History from the University
of Pennsylvania. He currently serves on the boards of Junior Achievement of Southern
California, the Lusk Center for Real Estate at the University of Southern California and the
Policy Advisory Board of the Fisher Center for Real Estate and Urban Economics at the
University of California, Berkeley.
Mark Cover
Executive Vice President CEO
Hines

Executive Vice President responsible for Hines Southwest Region, Mark Cover
joined the firm in 1983. In his career with Hines he has contributed to the
development, acquisition and/or management of more than 28 million square
feet of commercial real estate totaling $2 billion of value in Texas, Colorado, New Mexico,
Arizona, Utah and Mexico. Mr. Cover is currently responsible for key investment partner
relationships and related property in the Southwest United States and general asset management
of 16 million square feet. He received his Bachelor of Science in Accounting from Bob Jones
University in 1982 and became a Certified Public Accountant in 1987 (retired).

Donald A. Dibble
Senior Vice President
The Lincoln National Life Insurance Company

Donald A. Dibble is Senior Vice President of The Lincoln National Life
Insurance Company. Don is responsible for managing $7.3 billion of
commercial real estate assets comprised of a commercial mortgage loan portfolio
totaling $6.8 billion; real estate limited partnerships totaling $237.0 million, and; real estate
equities totaling $290.0 million. Additional responsibilities include daily operations of the
Mortgage and Real Estate Department, which includes loan origination, closing, servicing, risk
management, portfolio management, and developing mortgage strategies and investment
programs. Don has been in the commercial real estate industry for thirty years, representing
savings institutions, commercial banks, and life insurance companies. His areas of expertise
include portfolio management, loan origination, permanent and construction lending,
commercial mortgage-backed securities (CMBS), appraisal, loan workouts, real estate equities,
asset management, joint ventures, and mortgage banking.

Don graduated from Ferris State University with an A.A.S. Degree in Building Construction
and a B.S. Degree in Business Administration. Currently, Don serves as Board Member of the
Life Mortgage & Real Estate Officers Council (Dutch Treat); Board Member for the Martha
and Spencer Love School of Business at Elon University; Vice Chairman of the Mortgage
Bankers Association, Investor Council; Committee Member of the American Council of Life
Insurers MEAF Subcommittee and Workgroup. He is also a Member of the Mortgage Bankers
Association of America, Urban Land Institute, and holds a State of Michigan broker license.
Paul J. Doocy
Partner / Executive Vice President
Real Estate Capital Partners

Mr. Doocy is the head of the Investment/Acquisitions Team and applies his extensive finance
background to the equity financing of commercial and multifamily developments for the firm.
He oversees the firm’s overall due diligence and investment/disposition approval process.

Prior to joining Real Estate Capital Partners, Mr. Doocy was a partner in a Dallas based real
estate investment banking firm. The focus of his investment activity was large structured
finance transactions involving pension fund clients. He also has experience in securitization
vehicles such as REMICs, REITs and low-income housing tax credits. Mr. Doocy began his
career with a Dallas based real estate and oil and gas syndication firm.

Mr. Doocy is an active member of the Multifamily Leadership Board for the National
Association of Home Builders (NAHB), and he is a member of the National Multifamily
Housing Council and the Urban Land Institute. He received an MBA from Southern Methodist
University and is a graduate of Amherst College (BA, Political Science).

Christopher Duey
Managing Director, High Yield Private Debt
Principal Real Estate Investors

Christopher Duey - Managing Director, High Yield Private Debt at Principal Real Estate
Investors, the dedicated real estate group of Principal Global Investors. He is also 1responsible
for New Business Development activities involving high yield debt and various private debt
programs. Prior to assuming his current role, Chris was responsible for the lending efforts
covering the Western region of the United States. Chris joined the firm in 1992 and has held
various roles within Principal Real Estate Investors, moving into his current position in 2008.
Chris received an MBA from Drake University and a BBA in Finance and Marketing from the
University of Iowa. He is a member of the International Council of Shopping Centers and the
Urban Land Institute.

Clayton Elliott
President
Palladian Capital Advisors

Clayton Elliott is President of Palladian Capital Advisors; www.palladianca.com,
an investment banking firm with an emphasis on commercial real estate.
Palladian assists developers, owners, operators, managers, investors and
borrowers in procuring investment capital and providing advisory services for the same clients.
Palladian is currently sourcing over $1B of equity capital for our clients.
Prior to joining Palladian, Mr. Elliott was a senior partner with Hines Interests for 28 years.
During his tenure he was responsible for the development, acquisition, and management of
more than 18.5 million square feet of commercial real estate representing over $4 billion in
value. He holds a BSBA in accounting from the University of Florida and a MBA from
Harvard Business School; and is a non-practicing CPA.

Collette English Dixon
Vice President, Transactions
Prudential Real Estate Investors

Collete English Dixon is Vice President, Transactions, for Prudential Real Estate
Investors (PREI), a business unit of Prudential Financial. As of January 2008, she
became co-leader of PREI’s national investment dispositions program, which is
responsible for managing the sale of PREI’s investment properties on behalf of its clients. For
2010, the PREI dispositions team completed the sale of more than $3B in portfolio assets.

Prior to January 2008, she was responsible for sourcing real estate investments in multiple
Midwest Region markets, covering all property types, including office, multi-family, hotel,
industrial and retail properties. Through December 2007, Ms. English Dixon had received
authorization for more than $2.7 billion of new investments for PREI’s clients.

From 1989 through early 1996, Ms. English Dixon was responsible for PREI and Prudential
General Account property dispositions and exit strategy for investment properties located
throughout the eastern United States. During this period, she was involved with more than $380
million of real property sales. From 1986 to 1989, Ms. English Dixon was part of Prudential’s
Southern Region transactions unit.

Prior to 1986, Ms. English Dixon was with Prudential's property development group, overseeing
all facets of the real property development process for wholly-owned and joint venture projects
throughout the Southeastern U.S. Her activities included concept development and feasibility
analysis, site acquisition, construction administration, asset management and project disposition.

Ms. English Dixon began her career with Prudential as an asset management analyst in 1979.

Ms. English Dixon received her BBA from the University of Notre Dame. She earned her Masters
of Business Administration from Mercer University.

Ms. English Dixon is the 2011 President of CREW Network, a Past President of CREW Chicago
and a Past Chair of CREW Foundation. Ms English Dixon also serves asVice -Chair/Membership
of the Purple Flight of the Urban Development-Mixed Use Council of ULI. Ms. English Dixon
received the 2008 Conscientious Professional Award given by the Global Diversity Summit. She
is on the Advisory Council for the Roosevelt University Marshall Bennett School of Real Estate
and on the Advisory Board for the Goldie Wolfe Miller Scholarship Fund. Additionally, Ms.
English Dixon is a member of the Board of Directors for the Oak Park River Forest Food Pantry.
She has also been active in Jack and Jill of America, Inc, as a board member of Hephzibah
Children’s Association and in the alumni association for her alma mater, the University of Notre
Dame.

Thomas O. Fish
Executive Managing Director/Co-Head
Jones Lang LaSalle Americas, Inc.

Prior to recently joining Jones Lang LaSalle as an Executive Managing Director,
Tom was Vice Chairman with CBRE / Melody, 1996 to March 2010. He was
one of the company’s top originators, and has completed debt and equity
transactions in excess of $4 billion. In addition, Tom managed the debt and
equity finance team for the company’s Southwest Region.

Tom has been in the real estate finance industry since 1987 and was co-owner of Post Oak
Partners, a Houston-based real estate finance firm.

Tom’s specialties include mortgage loans, structuring & arranging equity joint ventures,
participating debt and other structured finance transactions. He has been involved in financing
multi-family, office, industrial, retail, hotel, golf course & land development transactions, to-be-
built developments as well as dispositions of institutional quality real estate.

Tom is a member of several national associations including, The Urban Land Institute, The
Mortgage Bankers Association of America, the National Association of Industrial and Office
Properties and the International Council of Shopping Centers.

Tom graduated with a B.B.A in Finance and Marketing from the University of Texas in 1985.
He resides in Houston with his wife Shari and their three children, Stephanie, Bryan (Bubba)
Stacy.

William H. Flaherty
President
Rosewood Property Company

Bill Flaherty is President of Rosewood Property Company with responsibility for
managing a diverse portfolio of real estate investments and for sourcing new
investment and development opportunities. Previously, he served as Senior Vice
President, Marketing & Leasing for Irvine Company with primary responsibilities for creating
and implementing customer strategies, as well as introducing an innovative and modern
marketing platform for the Office Properties portfolio which is comprised of over 475 buildings
totaling approximately 39 million square feet, primarily in coastal California locations.
Mr. Flaherty joined Irvine Company in 2008 after a successful career leasing, marketing and
developing some of the premier real estate assets in North Texas and Southern California. At
Maguire Properties, an LA based public REIT (NYSE listed MPG); his responsibilities included
all major lease transactions, public market interaction with analysts and shareholders and direct
responsibility for the $1.2 billion joint venture with Macquarie Office Trust. In addition, he
managed all marketing, customer and branding matters for the 21 million sf office portfolio and
15 million sf entitled development pipeline. Previously, he served as SVP of Hillwood, a
Dallas, Texas based private real estate firm owned by Ross Perot, Jr. where he directed the
highly successful marketing, sponsorship, and premium sales effort for the $420 million
American Airlines Center and the introduction and early development of the Victory Park
project in Uptown Dallas. From 1984-1990 Mr. Flaherty served in various marketing and
leasing capacities at Rosewood, including on the original development, leasing and marketing
team for The Crescent.

Industry activities include ULI, NAIOP, where he is the 2011 President of NAIOP SoCal, and
The Real Estate Council. He is also a member of the Salesmanship Club of Dallas.

Mr. Flaherty earned his MBA from the University of Portland and received a BA from St.
Ambrose University.

Paul M. Fox
Managing Director
Cerberus Capital Management

Paul M. Fox joined Cerberus Capital Management in November 1997 and is
currently a Managing Director responsible for identifying and negotiating new
investments. Additionally, Mr. Fox is the liaison between Cerberus private
equity, Ableco finance and Cerberus real estate.

Cerberus Capital Management a global private investment firm with over $20 billion of
discretionary capital under management. Cerberus Real Estate Capital Management invests
directly and indirectly in real estate equity, debt and operating businesses, and has
consummated over three hundred distinct investments since inception in 1994 in the United
States and abroad. Cerberus Real Estate Capital Management, LLC is an industry leader in
delivering innovative, customized solutions for the capital needs of real estate professionals and
owners of complex real estate and real estate-related assets.

From 1987 to 1997, Mr. Fox held various positions at Jones Lang Wootton culminating in the
overall responsibility for the Corporate and Advisory Services division for North and South
America. Jones Lang Wootton’s Corporate and Advisory Services advised and implemented
strategic elements of the real estate holdings of global corporate and institutional clients
worldwide.