Commercial Real Estate and Hotel Industry:

1

• Commercial Real Estate and Hotel Industry
• What is the Smart Money Saying and Doing?
• January 26, 2009

2
Commercial Real Estate and Hotel Industry What
is the Smart Money Saying and Doing?

• Moderator
• Bidjaan Kassam CBRE Hotels Dallas, VP
• Panelists
• Perry Molubhai Atlantic Hotel Group, Managing
  Director
• David Copeland CBRE Retail Services Dallas, VP
• Steve Holt One World Bank, CEO
• Karam Ali Alliance Originator

3
Commercial Real Estate and Hotel Industry What
is the Smart Money Saying and Doing?

• Hotel Market 2009 Forecast
• Hotel Owner Perspective
• Retail Market Overview
• Lending in 2009
• Investing in Alliances
• Question and Answer

4
Bidjaan KassamVice PresidentCB Richard Ellis
HotelsDallas, Texas

• HOTEL MARKET 2009 FORECAST

5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
Perry MolubhaiManaging DirectorAtlantic Hotel
Group

• HOTEL OWNER PERSPECTIVE

9
David CopelandVice PresidentCB Richard Ellis
Retail ServicesDallas, Texas

• RETAIL MARKET OVERVIEW

10
(No Transcript)
11
Retail Bankruptcies
12
New Grocers
13
REGIONAL
ISMAILI BUSINESS CONFERENCE
One World Bank
2009
Steve Holt, President and C.E.O.
14
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
15
What can Uncle Sam do for you . . . TARP, CPP,
Tax Relief and the alphabet soup
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
16
Politics is the art of looking for trouble,
finding it everywhere, diagnosing it incorrectly
and applying the wrong remedies. Groucho Marx
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
17
Whats the Good News?
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
18
Panera Is One Restaurant Looking For Positive
Things In 2009 January 22, 2009 Panera Bread
Co., the chain of 1,250 bakery-cafes, plans to
take advantage of its debt-free balance sheet and
the U.S. real estate slump to open as many as two
locations a week in 2009, said Chief Executive
Ronald Shaich. http//www.stltoday.com/stltoday/
business/stories.nsf/developmenteconomy/story/5372
8525613A661C8625753F0016CFBC?OpenDocument
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
19
Consumer Prices Fall Again In December January
16, 2009 Consumer Prices Fall For Third Month In
December - For the third month in a row consumer
prices declined for the slowest increase of
prices in 50 years. The CPI (consumer price
index) fell .7 in December. Excluding energy and
food, which have the greatest impact on the
number, the CPI was nearly flat. So Im assuming
that the continued drop in gas contributed to the
decline. While this does not mean were out of
the woods, it does bode well for those with money
to spend. Greater purchasing power can often spur
additional consumption, particularly if the
expected stimulus plan goes into effect in the
first quarter.
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
20
Fox Reports Credit Markets Beginning to
Thaw January 15, 2009
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
21

• 30-year conventional mortgage rate hits 5.10
  during week of January 2, 2009, the lowest since
  1972
• Refinancing activity is up 137 from a year ago.
• Mortgage applications are up 62 from a year ago
• Home sales in California are up 83 from last
  year
• Housing affordability, due to mortgage rates,
  income growth, and lower housing prices, has move
  up sharply and is not far from its early 70s
  high.

The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
22
What does it take to get a loan in the current
environment?
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
23
It's Best To . . . Be Prepared
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
24
Commercial Underwriting Guidelines
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
25
Commercial Underwriting Guidelines
Ratios, Ratios And Even More Ratios
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
26
Commercial Underwriting Guidelines
Debt Service Coverage Ratio
Minimum 1.25
Preferred 1.50
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
27
Debt Service Coverage
STRESS TEST
INTEREST RATE 6
OCCUPANCY ? 25
RENTAL INCOME 25
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
28
Commercial Underwriting Guidelines
Loan to Value
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
29
Loan to Value (LTV)
MINIMUM 75
PREFERRED 70
OWNER FINANCED SECOND
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
30
Commercial Underwriting Guidelines
Credit Worthiness
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
31
Credit Worthiness
Personal credit of principals will be evaluated
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
32
Commercial Underwriting Guidelines
Property Analysis
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
33

• Key components of the analysis 
• Quality, condition and age of the property
• Location and accessibility of the property
• Terms and length of the leases
• Quality of tenants
• Operating history income and expenses
• Occupancy/vacancy ratios
• Fair Market Value and Fair Market Rent, as
  determined by the appraisal, will be analyzed and
  compared to the property operating history.

The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
34
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
35
MAKE IT HAPPEN
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
36
The next few months are among the most important
in U.S. history. Because of the financial crisis,
Barack Obama has the bi-partisan support to spend
1 trillion in stimulus. But we must make certain
that every bailout dollar, which were borrowing
from our kids future, is spent wisely. . . . .
If we allow this money to be spent on pork, it
will be the end of us. - Thomas L. Friedman, New
York Times, December 24, 2008
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
37
Questions
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
38
Were here to help. Your Bank Your Partner
One World Bank
The views expressed are those of Steve Holt and
should not be attributed to One World Bank.
39
Karam AliPresidentCompass Investment
GroupMicroVentureISAHouston Jubilee Investors
GroupHouston, Texas

• INVESTING IN ALLIANCES