c




  







 



Tom Darden, CEO

Presentation Objectives

Cherokee¶s business
philosophy

essons learned from
investing in brownfields and
sustainable development

Trends support sustainable
development

Opportunities to expand the
application of sustainability
abound
pusiness Philosophy

Tishman Speyer


ouse Company

ary Kay Cosmetics

6


Jonathan porofsky, 2004, Stainless steel
poll and fiberglass figures private
collection exhibited at
ockefeller
Center, New York.
ïntroduction to Cherokee
Cherokee Sustainability Philosophy

Cherokee is a private equity firm investing capital and expertise in the

redevelopment of urban infill sites with a focus on brownfield and transit-
oriented development.
North Hills,
aleigh

Vacant and contaminated mall converted to mixed-use

town center
poisbriand, Quebec

Former G plant is now a mixed-use, sustainable

community
Charlotte Southline, North Carolina

educing carbon by investing in land near transit

Cherokee Office

Cherokee¶s office uses significantly less water and

energy
National ainstream GreenHome

GreenHome is a model for green building practices

prownfield
edevelopment
Environmental
egulations in U.S.

0s to id-00s. Simple, local rules. No dense smoke and no
refuse in the water

40s to 0s.
esearch on the effects of pollution on air and water
start modern environmental era
Superfund Act Adopted

_
_
_
_
_



_ 

Amendments to Clean Air and Water Act

esource Conservation &
ecovery Act and Toxic

Substances Control Act

Safe Drinking Water Act Adopted

Clean Water Act Adopted

U.S. Environmental Protection Agency Established and Clean Air Act Adopted
Superfund aw ± 0

. ove Canal in Niagara Falls,

declared a state of emergency ±
families evacuated

0. Superfund aw
 Clean up the most highly
contaminated hazardous waste
sites

Protect human health and the

environment

ake the polluters pay by imposing

strict, joint and several liability

Change behavior to stop further toxic

waste dumping
Superfund ± Unintended Consequences

EPA highly inefficient at conducting

cleanups

ïn 20 years, only 0 sites cleaned up

40% of the $30 billion spent on

litigation, not cleanup

Arguably, huge price paid for little

environmental gain

Cleanup shifted to more efficient

state-level Superfund programs

Promoted greenfield development

due to liability concerns
Superfund aw Amended -- 2002

imit liability of lenders and prospective developers

EPA agrees to offer federal CE
C A authority to ³qualified´ state cleanup
programs

A host of state-level voluntary brownfield cleanup programs emerge

Federal grants and loans provided to state and local governments

Tax law changes more favorable for cleanups
Sustainable Development
 What is Green or Sustainable Development?

Site ocation  


c
 Urban infill
 Near transit (alternative transportation)

eclaimed land

Site Design
 ixed-use
 Walkable
 Parks and open space

Green puilding
 Energy efficient
 Conserves water
 Protects the natural landscape

Economic Demand
 Addresses market need
 Price point diversification reduces risk
and supports a diversity of household
types and incomes
Evolving Toward Sustainable Development
Source: UrbanGreen
penefits of Sustainable Development
Source: U ï Growing Cooler

ocation-design of communities reduce the
miles a person drives by 2% to 40%

Shifting 60% of new development to smart
growth can reduce  million metric tons of
CO2 annually by 2030

puildings make up 3% to 4% of the U.S.
CO2 emissions

puilding emissions can be reduced by 0%
to 0% using current green building
technologies

arket is significant and growing ± 2% to
3% of the U.S. market today

V
 

Economic Trends









 64% in the 60s
 2% in 200





 0% in 60s
 6% in the 0s
 0% today

V  

:
 40 to 0% in the 60s
 0% in the 0s
 0% today
Drivers for Sustainable Development

Growing Concerns about the Environment

Shifting Global Demographics

ïncreasing arket Demand

Public Policy Drivers
Environmental Drivers

Climate Change & Water

Eighteen of the last 20 years were

the warmest years on record

During the 20th century, the earth¶s

surface warmed by about .4 °F

Climate change affecting physical

and biological systems

World pank reports that 0 countries

have water shortages that threaten
health/economies
Shifting Global Demographics
Source: U ï Global Demographics

Global population will increase by 2. billion by 200
 equivalent to the 0 total world population

py 2030  in  people in the world will be 6 years or older

ïn 2020, the population in the U.S. living without children in the home
will reach  percent

Demographic trends and changing household composition will affect
how and where we live in the future
ïncreasing arket Demand

Estimates of the market
for sustainable
development in the U.S.:

OHAS: 2%

Cultural Creatives: 30%


C CO: 3% +
ïncreasing arket Demand

cGraw Hill Outlook µ0
 Next five years green will grow: $6 -$40
billion market

 Non-residential market: green building will be

0% to 2% of the 200 new starts


esidential: green building is $2-$20 billion

of the marketplace in 200

 Education, office and healthcare -- greatest

growth in green building

 Green will outperform others in a negative

market
Third-Party Standards for Green puilding

US Green puilding Council -- USGpC

embers include:
 Designers and service providers
 Developers
 Universities

apid growth and market change:  ± 200

  growth in membership
 USGpC Greenbuild conference attendance: 30,000
X Ä  in 200
 _ growth in registered EED buildings
 ]  
 of registered EED buildings
Consumer Consciousness
Source: Google -- November, 200

KEY WO
DS

parack Obama ,400,000

sustainable 62,000,000

climate change 4,400,000

global warming 44,200,000

George push 4,000,000

Angelina Jolie 34,00,000

gas prices 3,400,000

ïraq war 30,00,000

green building 26,400,000
U.S. Financial Sector
esponding to Trends

6


  
in financing for Green buildings (November 200)
!"

Provides energy efficient mortgages

ïnvests in renewable energy

"


#  



Formed carbon bank

ïnvesting ]  
in environmental markets including carbon credits

#
 

Develops and generates wind energy

ïnvesting _  
in renewable energy and energy efficiency projects

Evaluating markets for water, biodiversity, forest management and other

ecosystem services







pank of America

Shorebank

New
esource pank

ake ït
ight
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ight
ake ït
ight
Conclusions

U.S. is well positioned to benefit from national and global trends that support
sustainable development

U.S. stimulus package and other public policy decisions will likely support
green building and alternative energy development

Opportunities will grow for those who want to pursue jobs in the area of
sustainable development

Convergence of technological advancements, public policy and demographic
trends will significantly accelerate the application of sustainability over the
coming decade