ESBD_File_236474_CC-2200002_Addendum_1_Final.pdf

Teacher Retirement System of Texas (TRS)

May 14, 2021

ADDENDUM No.: 1

TO

SOLICITATION NO.: CC-2200002

FOR

Real Estate Portfolio Consulting Services

DEADLINE FOR SUBMISSION OF PROPOSALS: May 28, 2021, @ 3:00 p.m. Central Time

LISTED BELOW YOU WILL FIND ANSWERS TO SUBMITTED QUESTIONS TO THE SOLICITATION

ISSUED BY:

Aundre Petty, Contract Specialist

Date: 5/14/2021

NOTE: VENDORS ARE REQUESTED TO ACKNOWLEDGE RECEIPT OF THIS ADDENDUM BY SIGNING AND DATING BELOW AND INCLUDING WITH SUBMITTED RESPONSE. RESPONSE MAY BE CONSIDERED NON-

RESPONSIVE IF THIS COVER PAGE IS NOT SIGNED AND RETURNED.

RESPONDENT SIGNATURE DATE

5/14/2021

Solicitation Name: Real Estate Portfolio Consulting Services Solicitation No.: CC-2200002

Addendum No.: 1

ADDENDUM No.: 1 **** Important Notice to Vendors ****

SOLICITATION NO.: CC-2200002

FOR

Real Estate Portfolio Consulting Services

This Addendum is issued to answer submitted questions to the solicitation.

Questions and Answers

1. Question: Bullet (a) – Can we confirm what Texas authorizations they are referring to?

Company Organization Describe the Company's organization including at a minimum: type of business organization, e.g., corporation, partnership, sole proprietorship, etc.; date established; state of incorporation; Texas authorization(s) to conduct business; location of Respondent’s company headquarters; relevant branch offices.

Answer: An authorization to do business in a state comes from the secretary of state’s office. Texas law requires foreign business entities to register with the Secretary of State when doing business within its borders. If an organization was formed under, and the internal affairs are governed by, the laws of a jurisdiction other than Texas, the organization is a “foreign entity.”

For more information regarding Authorization to do business in Texas, please go to the Texas Secretary of State website at:

https://www.sos.state.tx.us/corp/foreign_outofstate.shtml

2. Question: Do we need to apply for a Texas Identification Number (TIN) to submit a response to this RFI? Or is N/A an appropriate response due to the nature of work?

Answer: N/A is not an appropriate response. The TIN form is not used to apply for a TIN number. The form will be used to ensure the proper setup of contractor information in our contract and payment system.

A completed TIN Form must be submitted with your response even if you have done business with TRS in the past for verification that we have the correct information in our accounting system.

If you do not have a TIN number but do have an Employer Identification Number (EIN), be sure to select the appropriate box in Section 1 of the TIN Form and enter your EIN where indicated.

3. Question: Section VI: HUB – Confirming this is just informational and we do not need to do anything here based on this language: Therefore, TRS is not requiring a HUB Subcontracting Plan (HSP) be submitted with this proposal.

Solicitation No.: CC-2200002

Addendum No.: 1 https://www.sos.state.tx.us/corp/foreign_outofstate.shtml

Answer: TRS is not requiring a HUB Subcontracting Plan (HSP) to be submitted with this proposal. However, if Respondent determines the need to Subcontract for any services, to fulfill the terms of the Contract, the Respondent must immediately inform TRS so that the solicitation may be updated, and the Respondent must submit a complete HUB Subcontracting Plan with its proposal to be considered responsive.

4. Question: Please provide general characteristics of existing TRS portfolio and debt.

o REO

# Of Assets - > 1,000 AUM - > $20 billion Product Type - All major and secondary commercial and residential real estate product types Size (SF, Units) - Major portfolios of all product types NOI - 40% of the portfolio is core with significant cash flow. Major NOI.

o Debt # OF Loans - > 100 Total Outstanding Balance - > $10 billion Maturity Schedule - Varied, staggered maturities Extension and Renewal Options - Various Outstanding Commitments - Various Rate Structure (Coupon/amortization) - Various

Answer: Please see the responses above in blue.

5. Question: Outline TRS Real Estate Strategy o Investment Strategy & Criteria

Hold Periods - Various Target Returns and Multiples - Various Risk Profile (Core, Core Plus, Value Add, Opportunistic and Construction) -

All of these strategies are significant components of the portfolio o Financing Strategy

Preferred Leverage Levels / Limitations - Minimum 50% LTV. Leverage levels vary upwards depending upon business plan, product type, partner, etc.

Fixed vs. Floating - Both Hedging & Strategy (If any) - Hedge EUR, GBP, JPY. Rate hedging depends on the business plan Restrictions or Hot Buttons - Texas sovereign immunity

6. Question: Scope of Services o Collaboration

Describe the TRS decision making process for financing decisions (ie. one point of contact, multiple touch points, investment committee) - Financing decisions will be made by the real estate team. The primary contact will be

Solicitation Name: Real Estate Portfolio Consulting Services Solicitation No.: CC-2200002 the head of real estate finance. Discrete executions will be made on a case-by-case basis o Reporting Requirements Are there standardize TRS reporting formats? If so, can you provide examples? - There are not standard reporting formats. We will engage in a collaborative way to identify.

o Oversight Provide a more detailed description of the Contractor services related to due diligence and closing efforts. - We are seeking the Contractor to provide loan due diligence and facilitate closing efforts.

Reminder: Please do not wait until the last minute to submit your proposals. Late Proposals will not be considered.

Solicitation No.: CC-2200002