New York Life Real Estate Investors Fixed Income Investors | Private Capital Investors | Real Estate Investors | Madison Capital Funding Commercial Mortgages & Structured Lending Direct Equity Investments Real Estate Securities Investments nylrealestate.com NYL Investors LLC is a wholly owned subsidiary of New York Life Insurance Company.
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New York Life Real Estate Investors · PDF file · 2018-03-02New York Life Real Estate Investors Fixed Income Investors | Private Capital Investors | Real Estate Investors | Madison
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New York Life Real Estate Investors
Fixed Income Investors | Private Capital Investors | Real Estate Investors | Madison Capital Funding
1. Source: Fortune , June 2015.2. Assets under management (AUM) includes assets of Investment Advisors affiliated with New York Life Insurance Company
and assets under administration (AUA) including Retail Annuities. AUM for Candriam and Ausbil is reported at the spot rate.3. Source: Pension & Investments’ Largest Money Managers survey, 2015. Ranked by total worldwide institutional assets.4. Source: Moody’s Credit Opinion, June 2015. S&P Rating Report, June 2015. Fitch Rating Report, March 2015. AM Best
Rating Report, July 2015. Ratings are based on the financial strength of New York Life and apply only to GuaranteedProducts. These ratings are an opinion only, and are not a recommendation by the applicable Agency to take any action.The information contained on this page is for general informational purposes and is subject to change without notice. Pastperformance is not indicative of future results.
* Based on the Fortune 500 revenue calculation. Finance and Accounting 2014.
** Finance and Accounting 2014 and Company Financials as of December 2014.
NYL Investors − Organizational Overview
AUM: $223 billion1
Employees: 393
Locations: New York, Atlanta, Chicago, Dallas, San Francisco, London
Fixed Income Investors | Private Capital Investors | Real Estate Investors | Madison Capital Funding3
1. As of 9/30/15. Fixed Income Investors, Real Estate Investors, and Private Capital Investors are all investment groups within NYL Investors. Assets under management represent the combined AUM of NYL Investors and MadisonCapital Funding (MCF), a separate legal entity. NYL Investors AUM: book value ($193.1 B), market value ($19.9B), cost + unfunded commitments ($0.5B), notional ($1.6 B), AUA ($1.6 B) and MCF AUM: book value ($6.6B).
Madison Capital Funding reports internally to NYL Investors but is legally owned by New York Life Investment Management Holdings LLC (NYLIM Holdings), a holding company that owns various New York Life investment boutiques.Number of employees includes Madison Capital Funding employees.
Real Estate Investors Overview
$45.3B AUM as of 9/30/15
Equity$5.1 billion3
Securities$11.8 billion
Full service, multi-faceted real estate operation
� Headquartered in New York with five regional offices
� Over 100 years of real estate investing1
� 156 team members including dedicated legal team
� 19 years of average experience for investment professionals
� Active in over 129 MSAs nationwide
$45.3 billion of AUM2
Fixed Income Investors | Private Capital Investors | Real Estate Investors | Madison Capital Funding4
Lending$28.4 billion
$45.3 billion of AUM
� Real Estate Lending
− Senior and subordinate debt
� Real Estate Securities Investment
− CMBS and REIT bonds
� Real Estate Equity
− Direct and structured equity investments
1. Real Estate Investors is an investment group within NYL Investors. Includes tenure of when Real Estate Investors was an operating division of New York Life Insurance Company and New York Life investment Management LLC and finally of NYL Investors.
2. Real Estate Investors AUM of $45.3 billion is gross and includes AUA ($1.6B) and property level debt, as of 9/30/15. Net AUM for Real Estate is $44.7B (Equity $4.5B), as of 9/30/15. 3. Gross Equity AUM of $5.1B as of 9/30/15 which includes property-level debt..
Real Estate PlatformsIndependent but integrated platforms provide a strong value proposition
EQUITY
$5.1B in equity (gross) / 116 properties and 25.7M square feet
� Direct investments via wholly owned, joint ventures, and structured investments
� Strategies: Core / Core+, Value Add, and Opportunistic / Development
� Investment Scope
– Apartments, industrial, retail, office
– 32 markets, 21 states
� $600M to $1B of annual acquisitions
COMMERCIAL LENDING
$28.4B loan portfolio - over 1,000 assets
� Loan Types: Fixed / Floating Rate, Stabilized / Transitional, Bridge, Construction to Permanent, Mezzanine
� Loan Terms: 3 to 30 years; 50 - 80% LTV
� Property Types
– Apartments, industrial, retail, and office
– 147 markets, 42 states
� $5.0-6.5B of annual lending activity
REAL ESTATE SECURITIES
$11.8B portfolio of CMBS and REIT Bonds
� $8.8B in CMBS
– Conduit bonds
– Single asset / single borrower (SA/SB)
� $3.0B in REIT bonds
– Apartments, industrial, retail, and office
– 162 positions with 55 issuers
� $2.0 - $2.5B in annual activity
� Investments through separate accounts
Fixed Income Investors | Private Capital Investors | Real Estate Investors | Madison Capital Funding5
� $600M to $1B of annual acquisitions
� Investments through funds and separate accounts
� $5.0-6.5B of annual lending activity
� Loans through separate accounts and co-lending agreements
� Investments through separate accounts
Real Estate Investors AUM of $45.3 billion is gross and includes AUA ($1.6B) and property level debt, as of 9/30/15. Net AUM for Real Estate is $44.7B (Equity $4.5B), as of 9/30/15.
Apartment
23%
Industrial
32%Other
1%
Office
41%
Retail
3%
Office 33%
Retail 25%
Apartment
28%
Industrial
12%
Other 2%
Conduit
CMBS51%
SA/SB
CMBS20%
Other
CMBS4%
REIT
Bonds26%
Senior Mortgage Lending • Loan to Value: Up to 75% for senior mortgages, higher for credit transactions
• Debt Coverage Ratio: Minimum of 1.30x or greater once stabilized
• Non-recourse to borrower except for standard carve outs
Structured Lending • Fixed rate Construction-to-Permanent and Bridge to Permanent loans up to 75% LTC
• Floating rate bridge loans to 75% LTC
• Subordinated loans for stabilized properties up to 85% LTC
• Financing available to vehicles that hold real estate debt (static pools or actively managed with lender approval)
• Institutional quality property, location and sponsorship required
• Fixed, floating and combination rates available
• Earn outs available
General Investment Parameters
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
Direct Equity Investments • Nationwide investments between $10-$100 million across all asset types, except hospitality
• Core, core-plus , value-add, and development on a select basis
• Assets can be owned outright or in partnership with experienced operators
• Primary markets nationwide and secondary markets on a select basis
Real Estate Securities • CMBS investments include conduits, floating rate pools, and single asset single borrower transactions, most of which
are investment grade. Typical investment size ranges from $20-100 million
• Purchaser of CRE CDOs
• Unsecured REIT bond investments in both public and private placements, which provide liquidity to experienced
institutional real estate owners and real estate operating companies
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There is no guarantee that investment objectives will be obtained.
Investment Activity2014 Actual 2015 Plan2015 Actual 2016 Planned
Commercial Mortgages &
Structured Lending
Direct Equity Investments
$6.70 Billion1
$1.17 Billion
$5.50 Billion
$1.0 Billion
$6.1 Billion Senior Mortgages
$600 Million Structured Loans
$4.50 Billion Senior Mortgages
$1.00 Billion Structured Loans
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
CMBSInvestments
REIT Debt Investments
$2.15 Billion
$495 Million
$2.00 Billion
$500 Million
7
There is no guarantee that investment objectives will be obtained.
1. Activity includes participations for commercial mortgages
Senior Mortgage LendingInvestment Guidelines
Rate • Fixed and floating rates at competitive, market-based spreads over Treasuries or LIBOR
• Rate locked upon receipt of an executed application with appropriate deposits
Term • Fixed Rate: 3 - 30 years
• Floating Rate: up to 7 years
Size • Typically $10 million to $300 million for single assets, higher for portfolio transactions
• Will coordinate and structure co-investment arrangements for loans with higher proceeds
Co-Lending on Senior Debt • Arrange club loans
• Participate with a lead lender
Portfolio Financing • Financing available of $500 million+, higher with participants
• Average allocated loan amount in pool per asset should exceed $10 million; loan facility can be increased or reduced
via property additions or releases
• Fixed rate loans with a floating rate component allow for partial releases and prepayment flexibility
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
• Fixed rate loans with a floating rate component allow for partial releases and prepayment flexibility
• Loans may be partially collateralized via mezzanine positions
Parameters • Loan to Value: Up to 75% for mortgages, higher for credit transactions
• Debt Coverage Ratio: Minimum of 1.30X or greater once stabilized
• High grade mezzanine debt may have less restrictive underwriting parameters
• Non-recourse to borrower except for standard carve outs
Typical Timing & Deposits • Transactions approved for commitment and rate lock in a quick and efficient manner
• Typical commitment to closing: 30 to 60 days
• Forward financing options available
• Typically 2% to 3% refundable deposit required to lock rate
• Non-refundable processing payment required for third party consultant reports
Consultant Reports • Appraisal
• Property condition
• Environmental
• Seismic, as applicable
8
There is no guarantee that investment objectives will be obtained.
Representative Transactions
11 Times SquareNew York, NY
Office
$324M First Mortgage Participation
7-yr Fixed Rate
500 BoylstonBoston, MA
Office
$324M First Mortgage Participation
7-yr Fixed Rate
Port Chester Shopping CenterPort Chester, NY
Retail
$120M First Mortgage
15-yr Fixed Rate
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
Denver Financial CenterDenver, CO
Office
$36.7M First Mortgage Participation
3-yr Floating Rate
Ascent Victory ParkDallas, TXMultifamily
$68.7M Construction/Permanent First Mortgage
10-yr Fixed Rate
Securities CentreAtlanta, GA
Office
$70M First Mortgage
5-yr Floating Rate
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Representative Transactions
QuintanaIrvine, CA
Office
$100.6M First Mortgage Bridge Loan
4-yr Floating Rate
AMLI Warner CenterLos Angeles, CA
Multifamily
$82.5M First Mortgage
10-yr Fixed Rate
Crescent Ninth StreetRaleigh-Durham, NC
Multifamily
$42.6M First Mortgage
7-yr Fixed Rate
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
Rate • Total IRR tied to asset-specific underwriting, draw schedules and fees
Amortization • Interest-only through underwritten stabilization
Term • Ground up construction loans: typically 7-15 years
• Bridge Loans: typically 12 months to 5 years
Size • $40 - $200 Million
Loan to Value • LTC between 50% - 75%
Funding • Monthly construction draws, advances for leasing costs and post-stabilization earn outs per credit hurdles
Prepayment • For construction, locked out through underwritten stabilization; flexible for bridge
Other • Completion, supplemented by carry and interest guarantees if necessary; non-recourse for bridge
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
Subordinated Lending Investment Guidelines
Rate • Incremental pricing based on attachment point and final LTV
Amortization • Function of leverage and available cash flow
Term • 3 - 7 years for floating rate deals
• 5 - 10 years for fixed rate loans
Size • $25 - $100 Million; minimum 10% of capital stack
Loan to Value • Up to 85% of LTV
Funding • After 100% of equity, can be pari-passu or prior to senior debt funding
Prepayment • Typically 12 months lockout / yield protection
11
There is no guarantee that investment objectives will be obtained.
Direct Equity Investments & Real Estate SecuritiesDirect Equity Investments
Size • Minimum $10 million per transaction - typical investment $25-$100 million
• Larger projects on a select basis
Property Types • Office (multi-tenant buildings)
• Multi-Family
• Industrial (warehouse & distribution)
• Grocery anchored and community retail centers
• Ground Leases
Strategies • Core and Core-Plus
• Value add
• Development on a select basis
Locations • Primary markets nationwide and secondary markets on a select basis
Ownership Type • 100% Interest, prefer all cash, will assume existing debt if necessary
• Diversified portfolios
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
• Diversified portfolios
• Joint ventures and recapitalizations
Real Estate Securities
CMBS • Real Estate Investors manages CMBS portfolios primarily focused on the investment grade sector.
• Predominantly conduits, floating rate pools, single asset and single borrower transactions; selectively in lower-risk CRE CDOs, AAA
CMBX and re-REMIC transactions.
• Will work with borrowers and bankers to structure private placement CMBS and CRE CDOs.
• Will consider pre-purchase of securities, particularly for large loan transactions, new security types and during periods when market
conditions are highly variable.
Unsecured REIT Bonds • Real Estate Investors is responsible for the investment and management functions of the New York Life’s public REIT unsecured bond
portfolio.
• Through the use of our dedicated real estate work force, the investment decision making process relies on the bottom-up approach
by analyzing real estate market conditions in addition to intensively reviewing of the individual company's portfolios. The primary
focus has been on the four core property types: industrial, retail, multi-family and office.
• The public REIT debt portfolio targets high quality investment grade names that offer attractive income returns. In addition to these
core holdings, we opportunistically invest in mispriced credits that offer attractive income returns and capital gains potential.
12
There is no guarantee that investment objectives will be obtained.
Representative Equity Transactions
Boston Industrial PortfolioBoston, MA
Industrial/Warehouse
495,000 Sf
All-Cash Acquisition
18201 Von KarmanOrange County, California
Office
229,000 Sf
All-Cash Acquisition
11th& Hoyt ApartmentsPortland, OR
Multi-Family
102 Units
Development
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
Water RidgeCharlotte, NC
Office
845,000 Sf
All-Cash Acquisition
Corporate PointeLos Angeles, CA
Office
443,000 Sf
All-Cash Acquisition
GatewayPortland, OR
Industrial/Warehouse
400,000 Sf
Development
13
Contact Information
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments 14
This is not an offer to sell, nor a solicitation to buy, securities. There is no guarantee that investment objectives will be obtained.
Past performance is no guarantee of future results, which will vary.
The Representative Transactions shown are examples of some of the investments made during 2014 and 2013 and are included to show the capabilities of
New York Life Real Estate Investors. Please contact us if you would like to receive a complete list of properties purchased for the same period. Please note
that property transactions are a matter of public record.
Firm Overview
New York Life Investments and NYL Investors are registered U.S.-based investment management firms that provide financial services to individual and
institutional investors. NYL Investors was formed in October, 2013, and is an affiliate of New York Life Investments. Effective January 1, 2014, as a result of
a corporate restructuring, the Fixed Income Investors and Real Estate Investors divisions of New York Life Investments became divisions of NYL Investors.
To address this transition, effective January 1, 2014 the New York Life Investments GIPS Firm was redefined to include the following investment divisions
of New York Life Investments or NYL Investors as applicable: Fixed Income Investors, Real Estate Investors, Retail Markets and Strategic Asset Allocation &
Solutions. The GIPS firm was renamed as New York Life Investments.
Historic changes to the firm definition include the following:
Important Disclosures
Commercial Mortgages & Structured Lending | Direct Equity Investments | Real Estate Securities Investments
New York Life Ratings
Third-Party Rating Reports: as of 6/2014. Ratings are based on the financial strength of New York Life and apply only to Guaranteed Products. These ratings
are an opinion only, and are not a recommendation by the applicable Agency to take any action. Neither S&P, Moody's, A.M. Best or Fitch nor their affiliates
nor any third-party information provider of the information attributed to such entities make any representation or warranty as to the appropriateness,
accuracy, completeness or applicability of such information nor are they responsible for the results obtained there from. The information provided by these
entities is an opinion only and not a recommendation to take any action. This information is being provided for informational purposes on New York Life
Insurance Company only and is not meant to be an indication of financial strength or a performance guarantee of the strategies or investments discussed in
these materials. The financial strength of New York Life Insurance Company applies only to its insurance products and not to investment products which are
subject to market risk and fluctuation in value.
Historic changes to the firm definition include the following:
•Effective August 1, 2013 the Strategic Asset Allocation & Solutions group was also added to the Firm upon creation of the Global Tactical Asset Allocation
composite; and
•Effective June 30, 2012 the Real Estate Investors division was added to the Firm after certain discretionary private real estate funds were transitioned to
New York Life Investments from McMorgan & Company LLC which was an affiliate of New York Life Investments prior to the transition.