Patrick S. SimonsPrincipal

Strategic Residential Advisors(949) 933-9405

psimons@strategicresidential.com

Economic StrategiesGiven at

California Building Industry Association Council Meetings, Spring 2010, Sacramento, California

All Contents © 2010 by Strategic Residential Advisors

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

Customized Market Research Nationwide

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

Apartments and Condos

Strategic Advisory

Targeted Land Acquisition Focused on Jobs and Economics

Free Newsletter (easy sign up at our web site)

We Provide:

Detailed Definition of Market Area

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Granular Comp Data

Jobs and Income-based Demand Analysis

What Sets Our Reports Apart:

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Detailed Definition of Market Area

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

Jobs and Income-based Demand Analysis

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

Topic We Were Given:

“The Light at theEnd of the Tunnel?”

What is … the Light?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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How do I Find … the Light?

How Long is … the Tunnel?

Three Take-away Points:

“When Will We See Recovery?”

How Long is the Tunnel?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Many Conflicting Indicators

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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+GDP

Stock Market

Factory Orders

–Deficits

Geopolitical

Jobs

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Weekly Unemployment Claims

U.S. Department of Labor, Bureau of Labor StatisticsVia Bloomberg

Tho

usan

ds

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

Jobs Recovery Around 2013

(will depend on your market/submarket)

How Long is the Tunnel?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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What Kinds of Projects to Target?

What is the Light?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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Distress

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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$$$ on the Sidelines

Distress

Distress

Distress

Distress

DistressDistress

Distress

Distress

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

$$$ on the Sidelines

DistressDistress

Distress

Distress

Distress

DistressCompetition

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

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We’ve moved through the Distressed part of the cycle – back to the future which is… old-fashioned land acquisition.

Value will be found inUn-entitled, ground-up projects.

What is the Light?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

What Will Optimize myLand Acquisition Strategy?

How do I Find the Light?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

Jobs are primary household formation driver.

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

So find submarkets which will produce jobs.

Find submarkets with vacant office space which will attract new startups.

Find submarkets with startup incubators – venture capital

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

How Long is … the Tunnel?

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m

What is … the light?

How do I Find … the Light?

Plan for 2013

Un-entitled Ground-up Development

Target Job Centers

Take-away Points:

Patrick S. SimonsPrincipal

Strategic Residential Advisors(949) 933-9405

psimons@strategicresidential.com

Economic StrategiesGiven at

California Building Industry Association Council Meetings, Spring 2010, Sacramento, California

All Contents © 2010 by Strategic Residential Advisors

Strategic Residential Advisors W e M a x i m i z e Y o u r P r o f i t s

w w w . s t r a t e g i c r e s i d e n t i a l . c o m