A Brief Overview of Real Estate Finance

Brian R. Iammartino, CFA July 5, 2012

Graduate School of Design Harvard University

30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

Brian R. Iammartino, CFA

btcRE | REimagining the built environment.

Co-Founder and Managing Partner Redevelopment of underutilized commercial real estate in non-CBD and inner-core urban markets of Boston

Finance & Investing

The Blackstone Group (private equity); Basswood Partners (hedge fund); Westport Point Capital (commercial real estate) Co-author of Getting Started in Security Analysis, 2nd Ed.

Public Policy & Teaching

Guest-lecturer and Teaching Fellow at Harvard Kennedy School; HKS Case Studies on ABC and public pension reform Assisted in implementation of activity-based costing (ABC) for City of Somerville and US National Park Service

Education
The Wharton School, U. Pennsylvania (BS summa sum laude) Harvard Kennedy School (Master in Public Policy)
30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

1) A highly cyclical industry

25.0% Vacancy (Q) Rent (P) $50.00 20.0% $60.00

$40.00 15.0%

$30.00

10.0% $20.00

5.0% $10.00

0.0% 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

$0.00

30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

2) With high fixed operating costs

Source: http://www.cityofboston.gov/assessing/ 30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

3) And high project costs with complex financing

30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

Things dont always work out as planned

30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

But plans may eventually work out

30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138

Questions? Comments?
Contact Information: Brian R. Iammartino, CFA Managing Partner btcRE | REimagining the built environment. 30 Newbury Street, 3rd Floor, Boston, MA brian@btcRE.com | www.btcRE.com O: 617.971.8138 | C: 617.997.6824 Skype: brian.iammartino

30 Newbury Street, 3rd Floor Boston, MA 02116 www.btcRE.com | Phone: 617.971.8138