One Billion of Prime U.S. Equity and Debt Investment Opportunities

November 2, 2010

Outlined below, please find a sampling of several of the equity and debt transactions that we are looking to place.

We encourage you to contact us to generally advise us as to the types of opportunities that you are seeking, and particular, if any of the following opportunities are of interest to you.

• 20% IRR on JV Multi Family Property– We are seeking approximately $40 million in equity to acquire this 2,000 unit apartment portfolio in a major U.S market. The current cash on cash return will be 9% and this property is in a sub market which has a very high occupancy and tremendous inherent demand generators which will command high rents and strong occupancy for years to come. This is a distressed transaction in that the seller is motivated to sell and the property has excellent characteristics.

• 30% IRR secured by a major Class A CBD Office Asset– This transaction is an investment in a major, fully occupied Class A, one million sf office building in a major U.S CBD market. Moreover, this property enjoys virtual 100% occupancy with below market, credit-quality tenants. Long-term, favorable financing has recently been arranged and we are seeking $10 million in joint venture equity in order to complete the capitalization of this off market, high yield acquisition. This transaction will pay a 9% current return and a 30% IRR upon a sale in five years.

• 30% IRR Secured by a Full Service Operating Hotel and Spa Resort– This hotel and spa property is being bought directly from a distressed financial institution at a cost which is well below replacement. In fact, the recent basis for the property is 5 times greater than the current acquisition price providing for a highly opportunistic return and distressed acquisition price. This entire transaction will require less than $10 million in capital and we are contemplating buying the asset with 100% cash.
• $100 Million, 20% IRR First Mortgage- We represent a major owner who has an opportunity to buy back his debt at a huge discount.  This property is located in a major market, and has accomplished substantial pre-leasing to credit-worthy luxury, retail, and other entertainment-related tenants. Based on the in-place NOI of the signed leases, your $100 million loan is no greater than a 65% LTV (which means that the value today is $300 million just based on signed leases, and there is still a significant portion of leasing to be done which will further secure your investment. The stabilized value is approximately $500 million).
• $50/$100 Million First Mortgage Manhattan DPO Financing– This is just one of several large senior DPO finance requests that we have for clients to buy their loans back at a discount.  We are looking for lenders and equity investors who are  interested in providing capital to make above average returns with quality borrowers on transitional and non-cash-flowing properties.
• CDO Financing- We represent several CDO sponsors who have an opportunity to buy back their debt at a significant discount.  We are interested in financing sources who will provide 50%-75% leverage for our client.
• High Temperature Loans– We represent several owners on different transactions who are willing to pay hard money rates in order to allow our clients to buy their loans back from their lenders at substantial discounts. These loan amounts range anywhere from $10-$30 million.

In sum, the foregoing is just a few of the over one billion dollars in equity and debt recapitalization opportunities that we are currently transacting.

I encourage you to contact the undersigned for a confidential discussion regarding any of the aforementioned transactions.
Thank you.

Howard L. Michaels	Michael J. Campbell
Chairman	Partner
hlm@carltongroup.local	mjc@carltongroup.local

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