Portfolio and Services

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Babor Group Real Estate Advisory Acquisition � Development � Operations � Research & Consultancy

BABOR GROUP ADVISORY

What We Do Real Estate Advisory Babor Group is a advisory service focused on real estate. This includes acquisitions, development and operations. We provide our broad spectrum of clients with financial analysis, strategic planning, and project management services.

We assist owners, operators, and investors with their real estate assets. Our extensive experience includes residential, retail, industrial, and master-planned communities. The core strength of our financial analysis, strategy planning, and project management are supplemented with a network of appraisers, engineers, attorneys, and other specialists focused on the real estate industry. Babor Group, in coordination with its strategic partners, offers a full range of services. Some past assignments include: Development

Modeling large scale developments Management of entitlement process

Financial feasibility Coordination of bidding process

Advisory

Acquisitions Underwriting and due diligence Debt and equity structuring

Management

Accounting and investor reporting Transaction management Tax assessment appeals



BABOR GROUP ADVISORY Real Estate Acquisition services

Real estate investing requires the support of seasoned professionals. They help identify risks and opportunities in changing market conditions. Babor Group knowledge means we know how and where to access information that matters. The information and our experience in its use are pertinent to our clients in making appropriate and profitable real estate decisions

Whether it’s a single tenant building, apartment complex, retail or office property, Babor Group has the experience and expertise to meet the needs of our clients. � Financial Analysis, Transaction Modeling The Babor Group brings extensive real estate knowledge to the modeling/valuation process. We understand how to value transactions in all investment property classes. Our analysis allows clients to make critical management, valuation, acquisition, disposition, and financing decisions. Our financial analysis include • Cash flow projections • DCF modeling and updates • NOI analysis • Risk and return analysis • Optimization of capital structure (debt, equity,

mezzanine financing and waterfall modeling)

� Due Diligence & Site Inspections Quality due diligence is a key contributor to the investor’s return. During the acquisition phase of commercial real estate, it is paramount to consider: • Do the standard underwriting assumptions of

the asset’s financial pro-forma accurately reflect the unique conditions of the asset?

• Are there tenant issues percolating that can negatively impact the investment?

• Have inspections and reviews been thorough enough to adequately budget a property’s operating and capital expenses?

• Are there unsatisfied obligations under leases? We create a multi-disciplined team including attorneys and engineers. That team provides for the client’s necessary assessment of: • Environmental, structural and engineering

assessments • Examination of mechanical systems (HVAC,

elevators, electrical systems, lighting, security, roofing, energy conservation systems)

• Zoning, entitlements, conditional use, variance and permitting assessments

• Title, legal and financing We guide the process, keep clients involved and most important, communicate every step of the way. Our goal is to protect client interests in the investment and yield the best return possible.




Development services Babor Group offers clients experience and expertise in the development of projects. We manage projects in both the private and public sector. Services we provide for clients include feasibility analysis, acquisition, pre-development planning and marketing. � Project Feasibility The critical first step of a contemplated project is the feasibility study. Feasibility analysis provides project clarity by defining the challenges, opportunity and risks associated with the particular development effort under consideration. We work closely with our clients to provide full understanding. Clarity is achieved through technical and financial feasibility analysis that: • Identifies land constraints, opportunities and

risk • Reviews demographic and market segment

analysis • Formulates development options based on

market needs and site constraints • Establishes project budget and timeline to meet

investment objectives � Pre-Development Babor Group actively supports owners of projects in the pre-development phase. We are experienced in working with architects, engineers, construction firms and attorneys to bring a project from its initial concept to construction. We provide project management and client representative services which can include: • Management of entitlement process • Design development • Project team coordination • Pre-construction planning and bidding • Preparation and update of financing packages

� Sales and Marketing Strategy Babor Group can assist clients in designing and executing effective sales and marketing strategies. We understand that each development project is unique in terms of location, layout, amenities and services offered. We understand how to bring out the specific identity of a development project, how to maximize its exposure to the target market, and how to disseminate the client’s marketing message.

We are experienced in working with advertising agencies, public relations, graphic and web design firms. We have the ability to design and implement sales and marketing strategies that include: • Development of marketing budgets • Direction of Creative, Media, PR and Digital

Agency • Management of marketing and pre-leasing

activities • Sales team employment and management




Operations & Disposition services A changing economy highlights property issues that require focusing on operations and assets. This comes at a time when many firms have faced staff reductions and must do more with less. We work with clients to better manage the financial and operational performance of their assets and to make those assets more productive. � Operations & Performance Babor Group works with asset owners to develop annual business plans that summarizes past performance. As part of the process, we collect and analyze existing quarterly reports, annual business plans, operating and financial performance reports, future acquisition and development plans, sales and marketing strategy reports. Synthesizing the data with clients needs and objectives, we prepare business plans that create cost-effective operations and strong financial performance. Our services include: • Operations management • Capital budget forecasting • Lease Administration • Property Accounting and Financial Reporting

� Repositioning & Restructuring We provide repositioning and restructuring services that include: • Hold/Sell Analysis. We look at the property financials, investor goals and market trends to help clients decide best pathways. These can include the repositioning of the asset, preparing for future sale through a stabilization and lease-up course of action, a “stay the course” approach, or immediate liquidation. • Highest & Best Use Analysis. Where the market has diminished, or a mid-stream correction may be needed for conversion-type properties, we work with clients to determine the best course of action given changing market factors. • Property Repositioning & Workouts. The loss of key tenants, acquisition of distressed property or lack of oversight at the local level may require a hands-on approach. We create a comprehensive analysis of the property and operations to outline best options to stabilize and enhance property. � Dispositions Babor Group provides assistance to firms concerned about excess leased or owned space. We assist firms in the identification and disposition of surplus space. This can save time, cut expenses, and allow the client to focus on core business. Our services include: • Space Planning & Needs Assessment • Market / Property Assessment • Financial Analysis • Contract Negotiations



Babor Group Advisory Client Case Studies Chennai India:

Financial Modeling A US based developer sought to establish a new division in Chennai, one of India's largest cities. Babor Group worked with the developer to create five-year pro forma financial statements for the proposed entity. These projections were for corporate overhead and development of warehouse, hotel and multi-use projects. Client recently announced JV with a firm committing $200M of equity capital.

Manhattan: Advisory Services Investment firm gained control of a property at an upper Manhattan location but had difficulty attracting equity to close the deal. Babor Group was retained to review the proposed transaction and create a more attractive investment offering. We analyzed rental and condo conversion scenarios and created partnership waterfalls. With a new strategy and investor structure in place, client quickly gained equity commitments and completed the purchase.

Long Island City: Development Services Owners of this property requested that Babor Group identify development opportunities for a parcel in Queens. Babor Group conducted a feasibility analysis based on new zoning established in the area. Currently, we are acting as Owner’s Representative in developing construction plans with architects.

New Jersey: Advisory Services A New Jersey investor group executed an LOI for acquisition of a fifty-five unit apartment building. Babor Group was retained to provide due diligence support. We quickly mobilized for site inspection and operational analysis. Our results revealed the need for higher capital expenditures than budgeted for previously. As a result, the investor withdrew the offer prior to dollars going hard.

New Jersey: Advisory Services Babor Group was engaged to evaluate the acquisition of a fifty-four unit apartment building. We created leveraged and unleveraged financial returns for the acquisition. We analyzed the proposed transaction in light of going-in cap rates, price per square foot, and comparisons to recent transactions.



Babor Group Advisory Client Case Studies Newark, NJ

Financial Modeling Babor Group provides financial analysis to the Brick City Economic Development Corp. of Newark, New Jersey. We analyze development projects to determine appropriate level tax breaks and public assistance to provide viable rates of return to the developer. Such programs include New Market Tax Credits, Redevelopment Area Bonds, Economic Recovery Growth Grants, Low-Income Housing Tax Credits.

Manhattan, NY Advisory Services Babor Group provided Argus modeling of an office property in Manhattan. Client sought to understand the value-add of updating and re-tenanting an office property under consideration. Argus in conjunction with excel modeling were used to show valuations and partnership returns under various scenarios.

Manhattan, NY Advisory Services Babor Group was retained to do financial analysis of a mixed-use Manhattan property. The building contains 108 residential units and a commercial core. We created leveraged and unleveraged financial returns and valuations for the client to support their acquisition decisions.

New Jersey Advisory Services Babor Group was ask to do an evaluation of a partially constructed condominium development. Previously, this project had been put on hold after approximately 60% completion with a non-performing construction loan. Client contemplated acquiring the Note and completing the building as a rental project.

New Windsor, NY Development Services A proposed 24-acre mixed-use development was nearing completion of public approvals. Concerned about a dwindling developer pool, the sponsor requested an exit strategy analysis. They engaged Babor Group to examine alternative disposition strategies and gauge their potential financial returns.



Babor Group Advisory � Financial Modeling

Our Financial Modeling Experience Includes:

Large-Scale Developments

Waterfront Development 64 acres with 20 acres of public parks 6,400 residential units, office and retail components

Acquisitions, Financial Feasibility & Redevelopments

K. Hovnanian Commerce Center

North Brunswick, NJ

Community-Oriented Business Park 100-acre park integrated with retail, restaurants, office, R&D facilities and warehousing

Queens West, Long Island City

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