Think-Realty-Magazine-November-December-2019

2019-2020 Upcoming Real Estate Conferences

FREDERICK COOPER SVP, Finance, Int. Dev. & IR Toll Brothers

Fred Cooper joined Toll Brothers in 1993 to establish its Finance and Investor Relations Departments. As the firm’s in-house investment bank, the team he leads is responsible for Toll’s capital markets and investor relations activities, as well as its partnering relationships with major U.S. and international financial and development institutions. Since formation, the group has raised over $15 billion from U.S., European and Asian banks, the public capital markets and institutional partners. In addition to capital raising, they advise on complex project structuring, joint ventures,

OCTOBER

Real Estate Family Office

October 16-17

Miami, FL

corporate mergers and acquisitions and major property acquisitions.

Q

Middle-Market Multifamily

October 16-17

Chicago, IL

What is your company’s growth strategy? Toll Brothers is a Fortune 500 New York Stock Exchange-listed company. In addition to our national residential for-sale business we have a large rental apartment development business. Our current pipeline includes approximately 20,000 units of to-be-built rental apartments in urban and suburban markets across the U.S. We focus generally on higher quality locations which is consistent with the Toll Brothers brand and our projects range from 150 units to over 1,000 units of all construction types including high-rise. We joint venture all our projects and take the lead on building, leasing and managing the properties. In some cases we and our partner decide to sell them upon stabilization and in some cases we are long-term holders. The DC market is one in which we are quite active with about 2,000 rental units built or under development. Value added vs. new construction vs. heavy rehab – which do you prefer? We are 100% new construction. We find that attention to detail and quality, as well as careful cost management, are necessary no matter what scale of project. There are some efficiencies to size as overheads and personnel can be spread over more units. The smaller projects may not attract the widest range of institutional financial partners and the largest ones may eliminate some of those same players as well as the investment check is larger. So we need to find the right partners for the right size project. We also try to create capital stacks that are not overly complex because the general development business is complex enough. What do you think of opportunity zones? It is not a primary focus but we do have some sites in Opportunity Zones.   Tell us about your latest equity investor and their deal terms. Between ourselves and our partners, we generally contribute equity representing 35% of total project costs. We put up more equity than the typical GP. We generally look for construction financing of about 65% of project costs. Terms vary depending on the partner and the deal structure. We may secure straight LP equity from a third party or preferred equity, depending on the deal. What summertime activities are you participating in during your downtime? Actually we are tremendously busy. Since late July we have closed or are in the midst of closing 5 joint ventures for projects totaling about 1,500 units and $500 million in project costs across multiple markets in the U.S. My group is the in-house investment bank and capital raising arm for Toll Brothers across all our businesses, both at the corporate and project level, as well as the in-house advisor on M&A and land financings. Stepping up in building size – what were some of the lessons learned as you invested in larger and institutional buildings?

Institutional Capital & Cannabis

October 19

New York, NY

Hotel Construction & Development

October 28-29

Santa Monica, CA

NOVEMBER

Mezzanine & High-Yield Debt

November 7

New York, NY

Mortgage Servicing Rights

November 12-13

Los Angeles, CA

Opportunity Zones

November 12

Los Angeles, CA

Cannabis Real Estate

November 13

Los Angeles, CA

Non-QM Forum

November 14-15

Los Angeles, CA

Middle-Market Multifamily

November 18-19

Atlanta, GA

DECEMBER

Single Family Rental

December 4-6

Scottsdale, AZ

Non-Listed Alternatives

December 4-5

Dana Point, CA

JANUARY

Student Housing 360

January 16 - 17

Dana Point, CA

Real Estate Opportunity & Private Fund Forum

January 22 - 24

Laguna Beach, CA

FEBRUARY

Middle-Market Multifamily (Northeast)

February 6 - 7

New York, NY

NPL Notes & Default Servicing

February 10 - 11

Fort Lauderdale, FL

A

Bank Special Assets (East)

February 24 - 25

Miami, FL

www.imn.org/group/real-estate

Made with FlippingBook Online newsletter