ten x commercial hospitality overview

The Intersection of Real Estate and Technology

Backed by

Unmatched Access

2Confidential to Ten-X

MORE BUYERS LOOKING AT YOUR PROPERTY

MORE LEADS FOR YOUR BROKER

28%buyers from

other sources

72%buyers from Ten-X marketing efforts

“Ten-X has quietly become one of the largest marketplaces on the web.”David Lawee

Partner at Google Capital

The Leading Online Real Estate Marketplace


2009

1st CommercialOnline Auction

2015

Guinness World Record $96M Online Sale

2014

$50M Google Capital Investment

$14 billion in CRE sales

2016

INVESTORS BY THE NUMBERS

$40 BILLION+ASSETS SOLD

$30 MILLIONANNUAL MARKETING SPEND

Where Real Estate Is Moving


The Intersection of Real Estate and Technology

Confidential to Ten-X5

• Connect sellers with vetted buyers from around the globe

• Find “hidden buyers” using best-in-class data

• Get the best deal for your assets

• Close transactions quickly and seamlessly

The Top Transactors


Thousands Of Brokers Use Ten-X


The Ten-X Advantage


amplified execution

180+ daysRE-TRADE EXTENSIONS

HIGH FALL-OUT RATE

INTERNALPROSPECTS

SEVERALINTERESTED

BUYERS

INITIAL OFFERS +BEST & FINAL

ROUND

TYPICAL PROCESS

As little as 90-120 daysNO RE-TRADES

ADD TEN-X

GLOBAL PROSPECTS

90%+ CLOSE RATE

HUNDREDS OF INTERESTED

BUYERS

UNLIMITED OFFERS

Hotel Experience


◆ $2 billion in sales

◆ 571 transactions

◆ 92 transactions over $5 million

◆ 108% average price-to-reserve

Over 53,000 Rooms Sold

Ten-X has completed $14 billion in commercial property transactions.

Select Hotel Transactions

$10,893,750HAWTHORN SUITES BY WYNDHAMFort Worth, TX120 Rooms

Seller: InstitutionBroker: Hotel Assets

Group

8,435 prospects179 interested buyers29 approved buyers75 offersList to close: 48 days

10

$28,150,000ORLANDO LAKE BUENA VISTA HOTELOrlando, FL241 Rooms

Seller: Alena Hospitality

Broker: HREC


$10,080,000SPRINGHILL SUITES MARRIOTTPittsburgh, PA94 Rooms

Seller: Garrison – CREBroker: Paramount

Lodging Advisors


$7,008,750DOUBLETREE BY HILTONSanta Fe, NM130 Rooms

Seller: Private SellerBroker: Cushman &

Wakefield


Select Hotel Transactions

$10,657,500SPRINGHILL SUITES MARRIOTTSarasota, FL84 Rooms

Seller: InstitutionBroker: Newmark Grubb

Knight Frank


11

$4,800,000QUALITY INN & SUITES WESTCHASEHouston, TX80 Rooms

Seller: InstitutionBroker: Paramount

Lodging Advisors

12.682 prospects425 interested buyers16 approved buyers40 offersList to close: 119 days

$10,500,000COURTYARD BY MARRIOTTBrunswick, GA93 Rooms

Seller: InstitutionBroker: Newmark Grubb

Knight Frank


$10,053,750HOLIDAY INN SELECT NORFOLK AIRPORTNorfolk, VA147 Rooms

Seller: InstitutionBroker: Hotel AG


How We Target the Right Buyers


2

Personalized target list of relevant buyers for each asset

Ten-X Research Team Ten-X Marketing Engine

◆ Dedicated staff finds buyers for each asset

◆ Leverage in-house and external databases for

owners of similar properties

◆ Powers direct mail, Ten-X featured asset email,

and call campaign

◆ Geography◆ Asset type

◆ User location◆ Saved searches

Inputs

◆ Website views◆ Bids and offers

Matching Criteria

◆ Property type◆ Property size

Output

21

Our data scientists and engineers have developed a state-of-the-art marketing engine that generates leads using sophisticated data mining techniques as well as by tracking users’ digital behavior.

60% of Ten-X buyers are from out-of-state

Multi-Channel Marketing


• 5.6M web visits in Q1 2016

• $30M marketing spend per year

• 200+ global listing partners:

Targeted email

Directmail

Print ads

Call campaigns

Online listings & ads

Pre-Auction Leads Report: Event-Level Summary

Event Name Event Date Number of Assets Total Received POF Received DepositNon-Registered Accessed Vault

No Contact Non-Registered Accessed

VaultAsset Web Hits

MULTIFAMILY PROPERTY AUCTION: $700+ Million in Multifamily Commercial Real Estate! All Auctioned

Individually. (B-061)3/7/2012 61 851 275 101 2,025 1,414 215,551

Registered Bidder

Pre-Auction Leads Report: Action-Level Summary

Property Address City State Zip Property Description Received POFRegistered Bidder

Accessed VaultNon-Registered Accessed Vault

801 Randy Drive Mt. Vernon OH 43050 110 Unit Multi-family Property 16 21 911090 Claudia Drive London OH 43140 80 Unit Multi-family Property 15 19 72501 Camelot Drive Spartanburg SC 29301 116 Unit Multi-family Property 11 17 88418, 422, 426 Emilie St San Antonio TX 78221 24 Apartment Units Located In San Antonio, TX 11 7 621709, 1710 and 1718 South Jentilly Lane Tempe AZ 85281 137 Unit Multi-family Property 11 15 1161825 Carrington Oaks Drive Charlotte NC 28217 274 Unit Multi-family Property 12 24 1203201 Allerton Circle Greensboro NC 27409 228 Unit Multi-family Property 12 25 1171406 S Berth Ave Panama City FL 32404 A 60 Unit Multifamily Property 18 17 129815 Cole Drive Johnstown OH 43031 94 Unit Multi-family Property 16 19 84411 East Indian School Road Phoenix AZ 85012 399 Unit Multi-family Property 13 22 1091502 West Glendale Avenue Phoenix AZ 85021 166 Unit Multi-family Property 16 13 1073756, 3800 and 3880 Wynn Road Las Vegas NV 89103 555 Unit Multi-family Property 12 13 98

Bidders Access the Vault

Bid Activity ReportFirst Name Last Name Company Address City Phone Email Bid Amount

John Doe 123 Main Street San Diego 619-555-1234 [email protected] $10,550,000 Sam Smith Company Y 456 First Street Los Angeles 323-555-1234 [email protected] $10,450,000 John Doe 123 Main Street San Diego 619-555-1234 [email protected] $10,350,000 Sam Smith Company Y 456 First Street Los Angeles 323-555-1234 [email protected] $10,250,000 John Doe 123 Main Street San Diego 619-555-1234 [email protected] $10,150,000 George Jones Company X 789 Maple Road, Suite 123 El Segundo 310-555-1234 [email protected] $10,050,000 David Williams 222 Ash Street Las Vegas 775-555-1237 [email protected] $9,950,000 George Jones Company X 789 Maple Road, Suite 123 El Segundo 310-555-1234 [email protected] $9,850,000 Sam Smith Company Y 456 First Street Los Angeles 323-555-1234 [email protected] $9,750,000 Seller Bidding on behalf of Seller $9,650,000 George Jones Company X 789 Maple Road, Suite 123 El Segundo 310-555-1234 [email protected] $9,550,000 John Doe 123 Main Street San Diego 619-555-1234 [email protected] $9,450,000

Unparalleled Reporting 14

Reporting Overview


Multiple Ways to Transact

Pre-qualified buyers

Fixed auction date and closing period

Buyer determined by highest bid

90% of properties complete process in < 90 – 120 days

Live Bid(auction)

First round call for offers

Shortlisted buyers receive extra due diligence time

Buyer determined in final round auction

Best suited for high-quality, stabilized assets of $10M+

Managed Bid(1st round offers + auction)

Set preferred price and terms

Buyers make offers any time and may be shortlisted

Buyer selected based on offer strength and reputation

Sellers provide private guidance to individual buyers

Offer Select(negotiated transaction)

Our team works with you to determine the best sales method for your property

Online Auctions: Live Bid


• Set the sales terms for your asset

• Select the sale date on which the auction will take place

• Create competition among vetted buyers that compete on price

• Streamline the transaction process with state-of-the-art technology and unparalleled support

• Close quickly and with confidence without contingencies or re-trades

Onboarding0-5 DAYS

Underwriting5-21 DAYS

Marketing45 DAYS

Bidding2 DAYS

Closing30-60 DAYS

Document reviewPricing discussion

Broker coordination

Targeted marketing

$5k-$25k bid depositBidder proof of funds

PSA signed in 2 hrs5% non-refundable in 24 hrs

Property webpage Due diligence vault

Indicative bids + Auction: Managed Bid

Confidential to Ten-X

♦ Indicative bids

♦ Buyer shortlist

♦ Final round bidding

* Each stage can be adjusted to suit the asset and transaction complexity.

Onboarding Underwriting MarketingIndicative

BidsBuyer

ShortlistFinal Due Diligence Bidding Closing

SOLD: $96M Manhattan Towers309,734 SF Office | 43% Occupied

List to close: 119 days

Typical Transaction

90-120days*0-5 5-21 30-45 1 day 3-5 15-45 1 day 30-60

days days days days days days

18

Negotiated Transactions: Offer Select


Marketing15-45 DAYS

Negotiation0-15 DAYS

Diligence & Closing15-75 DAYS

List Property

ReviewOffers

Call for Best& Final Offers

(optional)Due

Diligence

Market toBuyers

ShortlistBuyers (optional)

SelectBuyer

CloseEscrow

• Set preferred terms, including price, timing and contingencies

• See incoming offers in real-time, with details about each interested buyer

• Shortlist and provide guidance to individual buyers to strengthen their offers

• Select the winning buyer based on offer strength, buyer reputation or other factors

• Streamline the transaction process with state-of-the-art technology and unparalleled support

Maximum Seller ROIThe Power of Ten-X

◆ Global reach via a data-driven marketing engine

◆ $14 billion in commercial sales

◆ 108% average price-to-reserve in hotel transactions

◆ Higher certainty of close with streamlined execution on a proven, technology-driven platform

19

Testimonials


“Flawless process! A signed contract within a few hours, a $750,000 non-refundable deposit AND a closing per the contract.”Jatin Desai & Greg Friedman, Peachtree Hotel Group

“I was really pleased how the process had gone and look forward to manymore. Excellent work!”Herb Warmbrodt, Warmbrodt Hotel Investments

“When it comes to brokering hospitality sector assets, our firm appreciatesthe process, transparency and superior closing experienced on this platform.We look forward to closing more deals with Ten-X in 2016.”Daniel Beider, Senior Managing Director & Chairman of Paramount Lodging Advisors

“As first-time users of this asset disposition platform, it’s fair to say that weentered this process with a slight hint of skepticism. In the end, the sale wasvery efficient and we had a successful result that exceeded our expectations.”William Walker, Vice President of Asset Management for The Procaccianti Group

21

Austin4030 W. Braker Lane

Building 5, Suite 500

Austin, TX 78759

949.855.7464

IrvineHeadquarters

1 Mauchly

Irvine, CA 92618

800.793.6107

Miami1111 Brickell Avenue

Suite 2625

Miami, FL 33131

305.503.2641

Plano6200 Tennyson Pkwy.

Suite 210

Plano, TX 75024

800.793.6107

Atlanta3355 Lenox Road NE

Suite 420

Atlanta, GA 30326

678.256.1440

Denver1515 Wynkoop Street

Suite 360

Denver, CO 80202

(303) 546-7959

New York555 Fifth Avenue

4th Floor

New York, NY 10017

800.793.6107

Silicon Valley1301 Shoreway Road

Suite 200

Belmont, CA 94002

650.597.4303

Disclosure and Confidentiality

This document, including all attachments, addenda, and exhibits provided in any form (together the “Confidential Documents”), is being furnished to the recipient (the “Recipient”) solely for the Recipient’s own limited use in considering whether to place real estate and/or mortgage notes (“Assets”) with Ten-X (the “Company”). They are for informational purposes and are not for the purpose of providing legal advice. Recipient will not, directly or indirectly, disclose or permit anyone else to disclose the Confidential Information or its contents to any other person, firm, or entity without the prior written authorization of the Company. Recipient will not use or permit to be used these Confidential Documents or its contents in any fashion or manner detrimental to the interest of the Company or for any purpose other than use in considering whether to conduct business with the Company.

The Company has prepared these Confidential Documents, which contain brief, selected information pertaining to the business and affairs of the Company. This information does not purport to be all-inclusive nor does it purport to contain all the information which the Recipient may desire. Neither the Company nor any of its respective partners, officers, employees or agents make any representations or warranties, expressed or implied, as to the accuracy or completeness of these Confidential Documents or of its contents, and no legal liability is assumed or shall be implied with respect thereto.

© TEN-X & AFFILIATES | CONFIDENTIAL AND PROPRIETARY | PHOTOCOPYING, DUPLICATION AND DISTRIBUTION ARE STRICTLY PROHIBITED. 21

Seattle1420 Fifth Avenue

Suite 2200

Seattle, WA 98101

(206) 274-5318

APPENDIX A

Commercial Auction Event End Date

Commercial Real Estate Event Calendar*

23Confidential to Ten-X 13

* Dates subject to change. Applicable to Live Bid and Managed Bid transaction methods only.

Holiday (Federal, Religious, Company)

x x

2016 Event NameList / DDDeadline

WebsiteGo-Live

Marketing Period

EventStart Date

September (#1) 6/28/2016 7/19/2016 49 9/6/2016

September (#2) 7/12/2016 8/2/2016 48 9/19/2016

October (#1) 7/26/2016 8/16/2016 48 10/3/2016

October (#2) 8/9/2016 8/30/2016 48 10/17/2016

2016 Event NameList / DDDeadline

WebsiteGo-Live

Marketing Period

Event Start Date

November (#1) 8/23/2016 9/13/2016 48 10/31/2016

November (#2) 9/6/2016 9/27/2016 48 11/14/2016

November (#3) 9/20/2016 10/11/2016 48 11/28/2016

December (#1) 10/4/2016 10/25/2016 48 12/12/2016

Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat1 1 2 3 4 5 1 2 3

2 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 109 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17

16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 2423 24 25 26 27 28 29 27 28 29 30 25 26 27 28 29 30 3130 31

October November December

Sun Mon Tue Wed Thu Fri Sat1 2 3

4 5 6 7 8 9 1011 12 13 14 15 16 1718 19 20 21 22 23 2425 26 27 28 29 30

September

Transaction Method Comparison

24

Live Bid Managed Bid

Negotiable Purchase &Sale Agreement

Fixed Closing Period

Multi-Term Offers

Seller Selects Buyer

Offer Select

Complete Diligence Review

Multi-Channel Marketing

Vetted Buyers

Indicative Offers

Shortlisting

24-Hour Hard Money

Marketing: Direct Mail


Targeted Custom Brochures750-3,500 Prospects

Monthly Listing Brochure10,000+ Prospects

Targeted Asset Mailers40,000+ Prospects

25

Marketing: Targeted Email


Featured Asset Emails+/- 5,000 Prospects

Third-Party Emails+/- 100,000 Prospects

Weekly Listings Email+/– 75,000 Prospects

26

Marketing: Customized Call Campaigns


Email ClicksResearched Buyers Vault Visitors & Heat Trees

Ten-X Sales Team• Dedicated staff of CRE professionals• Targeted outbound calls to qualified buyers for each asset• Follow up calls on vault visits, email clicks, and buyers of similar properties

27

APPENDIX B

ORLANDO/LAKE BUENA VISTA HOTEL12490 South Apopka Vineland RoadOrlando, FL

$28,150,000241 Rooms | Hotel

$116,805 Room

SELLER:

BUYER:

BROKER:

SOLD!

MARKETING RESULTS

TRANSACTION HIGHLIGHTS

BID ACTIVITY

ORLANDO/LAKE BUENA VISTA HOTEL | Orlando, FL

Total Transaction Time: 118 Days Close of Escrow: 9/29/2015

$28,150,000241 Rooms | Hotel

$116,805 Room

Private InvestorDeveloper

Private InvestorGreenville, SC | $500+ Portfolio

HREC

• Full-service hotel with upside opportunity

• Seller recently completed 95% of $11.6M property improvement plan

• Located near Walt Disney World in Orlando's strongest performing submarket

10,486 Web Hits

252 Interested Buyers

15 Bidders

35 BidsPlaced in2 Hours

SELLER’S RESERVE: $17,000,000

TOTAL PURCHASE PRICE: $28,150,000

HOTEL – DOWNTOWN ORLANDO400 West Livingston StreetOrlando, FL

$12,800,000290 Rooms | Hotel

$44,138 Room

SELLER:

BUYER:

BROKER:

SOLD!

MARKETING RESULTS


BID ACTIVITY

HOTEL – DOWNTOWN ORLANDO | Orlando, FL


$12,800,000290 Rooms | Hotel

$44,138 Room

Private InvestorDeveloper

Private InvestorLong Island, NY | Private Equity Manager

HREC

• Full-service hotel within walking distance of downtown Orlando

• Originally opened as Omni hotel

• Value-add opportunity with recently completed demolition



July 2211:00 AM

July 221:00 PM

July 2212:00 PM

9,456 Web Hits


9 Bidders


HAMPTON INN - DAYTONA SPEEDWAY1715 West International Speedway BoulevardDaytona, FL

$6,510,000122 Rooms | Hotel

$53,361 Room

SELLER:

BUYER:

BROKER:

SOLD!

MARKETING RESULTS


BID ACTIVITY

HAMPTON INN - DAYTONA SPEEDWAY | Daytona, FL


$6,510,000122 Rooms | Hotel

$53,361 Room

InstitutionSpecial Servicer

Private InvestorDaytona Beach, FL | National Developer

NTX Realty

• Hampton Inn hotel sold as leasehold

• Amenities include ballroom, business center, laundry and fitness center

• Located within walking distance of NASCAR Daytona Speedway



March 249:00 AM

March 269:00 AM

March 259:00 AM

8,350 Web Hits


19 Bidders


RED ROOF INN & SUITES585 Parkway Drive NEAtlanta, GA

$5,092,500139 Rooms | Hotel

$36,637 Room

SELLER:

BUYER:

BROKER:

SOLD!

MARKETING RESULTS


BID ACTIVITY

6,829 Prospects


9 Approved Buyers

90 Offers



Nov. 17 Nov. 18 Nov. 19

Owner / Manager

Hotel AG

Private Buyer• Sold at 132% of reserve price

• From list to close in 85 days

• 224 interested buyers viewed due diligence vault

• 83 offers placed after “Reserve Met” was indicated

RED ROOF INN & SUITES | Atlanta, GA

List to Close: 85 Days Close of Escrow: 12/9/2015

$5,092,500139 Rooms | Hotel

$36,637 Room
