Brad S Cohen California

November 9th, 2012 Organizational Investment Overview

Central to the Cohen Asset Management philosophy is an emphasis on achieving return levels that are disproportionately high compared with the level of risk undertaken in making and owning certain real estate investments that meet the investor’s return objectives. This philosophy incorporates a focus on thorough due diligence, disciplined underwriting, active asset management, risk management and research, in addition to strategy formulation and implementation. Cohen will attempt to mitigate risk in part by seeking high quality real estate assets, and related debt or equity in entities owning such assets, that, by virtue of the property’s location, physical quality and other amenities, may provide a sustainable leasing advantage over the competition, as well as a liquidity premium at disposition by appealing to a broad institutional capital base.

In 2010, directed by Bradley S. Cohen, CAM through an affiliate invested in 6 buildings located in Brea which fits within one of the select Target Markets within the United States. Value was created and industry-leading returns achieved through our extensive experience, creative deal structuring and by accessing and utilizing our extensive active asset management, redevelopment and disposition expertise. Cohen Asset Management’s investment approach is a continuation of its focused investment strategy employed in the past comprised of the following: (1) focusing on the industrial real estate sector; (2) selecting target markets and sub-property type segments utilizing Cohen’s “Target Market Study” and in-house research capabilities; (3) maintaining a disciplined approach to portfolio design ; (4) actively managing its investments; (5) leveraging Cohen’s extensive banker and broker relationships to identify additional opportunities to create value; and (6) optimizing disposition timing.

Examples of current considerations relative to these criteria are outlined below:

Cash Flow Projections

  • • Initial property net operating income
  • • Contracted rental income relative to market
  • • Scheduled rental increases per in place leases
  • • Financing costs
  • • Anticipated capital costs
  • Asset Quality

  • • Construction quality and condition
  • • Roofs: remaining life and estimated cost to replace
  • • Walls: material
  • • Floor: concrete depth and condition
  • • Roads, parking and landscaping
  • • Amenities
  • • Ceiling clearance height
  • • Number of and location of truck doors
  • • Cross docking
  • • Rail spur
  • • Unique features
  • Tenant Credit

  • • Public debt rating (if tenant has public debt)
  • • Net income, free cash flow, EBITDA
  • • Company leverage and liquidity
  • • Industry assessment: growth prospects/volatility
  • • Tenant position/niche in industry
  • Market Dynamics

  • • Current Vacancy
  • • Recent and historic space absorption
  • • Rental trends
  • • Subject asset marketability vs. competition
  • • Potential in market for new supply
  • • Structural market issues
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