Gibson Island Corporation TTR Sotheby’s International Realty Strategic Alliance – Overview for Discussion 16 May 2014
Welcome
Contents Overview Methodology Strategic Alliance – Terms for Discussion About TTR Sotheby’s International Realty Significant Sales Sotheby’s International Realty Marketing Excellence Targeted Technologies Community Engagement Our Promise
Overview Gibson Island Corporation (“GIC”) and TTR Sotheby’s International Realty (“TTRSIR”) are considering a strategic alliance to advance the sale and leasing of properties on Gibson Island. As the fastest growing luxury brokerage firm in the Mid-Atlantic, TTRSIR provides a robust marketing platform targeting affluent clients both regionally and worldwide. The print media, digital marketing, and community-based engagement of TTRSIR coupled with an exceptionally professional team of 250 senior real estate associates has resulted in the firm achieving exceptional results for its clients in every market in which it operates.
The real estate market on Gibson Island is lagging behind other submarkets in the Washington Metropolitan area: • • •
Only 4 properties sold in 2012, 7 in 2013 and 2 YTD; Average Days on Market is almost 2 years; The current Active Inventory of 23 homes represents over 3 years of supply with little prospect for price appreciation unless the velocity increases significantly.
The goals of a potential strategic alliance between GIC and TTRSIR would be as follows: • • •
To represent every owner of a property listed with the firm with absolute integrity and the highest standards of professional services; To provide extraordinary local, regional and global exposure to the properties represented by the firm; To improve momentum, sales velocity and commensurate price appreciation in the real property at Gibson Island.
Methodology TTRSIR will apply every aspect of its marketing platform to enhance the exposure of the Gibson Island listings represented by the firm. This includes, but is not limited to: • • • • • • •
A strong print media schedule for the balance of 2014 and 2015; Targeted direct mail focused on the most affluent residents of both the Washington and Baltimore areas; A robust digital media campaign using the firm’s proprietary Rezora database of over 300,000 of the region’s most affluent residents; A 4-5 minute video presentation featuring Cynthia Steele Vance on Gibson Island via the firm’s Washington Luxury Channel; 1-2 annual community-based events which may include other luxury partners such as Hinckley Yachts, Mercedes-Benz, or Aston Martin as well as regional charitable partners. Establishing a reasonable, on-site presence within the GIC offices to showcase listings and provide immediate responses to requests for showings or other inquiries. This may include engaging one or more local Gibson Island residents licensed in the state of Maryland to work under the supervision of Corey Burr as well as supplemental support from other TTRSIR associates active in Anne Arundel County. Strong support from the well established, local ownership of TTRSIR and our Maryland brokerage for Corey Burr and the team of qualified professionals servicing the Gibson
Island listings.
Strategic Alliance - Terms for Discussion • TTRSIR will accommodate through the end of 2014 the current brokerage relationships in place by allocating a significant portion of commission proceeds to the current brokerage team and Gibson Island Corporation. • Thereafter, the brokerage commissions will be allocated using a formula which more accurately reflects the resources and investments by the respective parties. • All expenses for the alliance will be allocated pro-rata based on a budget agreed to in advance by all parties. • Supervision and management of the brokerage operation will be exclusively the responsibility of TTRSIR which shall include the support of Corey Burr and his team.
GIC/TTRSIR Launch Schedule
June Press Release issued by GIC and TTRSIR via PR Wire Targeted Direct Mail, Gibson Island (All), Washington Metro Area (assessed $ 2.m+) Complete 4-5 Minute Video Presentation Load all GIC Members into Rezora Database Distribute Video and Marketing Launch to TTRSIR Rezora Database (200,000+) July GIC/TTRSIR Co-Sponsor 4th of July Celebration, Custom Rezora Invitation to all GI Residents Targeted Direct Mail, Gibson Island (All), Washington Metro Area (assessed $ 2.m+) August GIC/TTRSIR Special Event - TBD Targeted Direct Mail, Gibson Island (All), Washington Metro Area (assessed $ 2.m+) November Targeted Direct Mail, Gibson Island (All), Washington Metro Area (assessed $ 2.m+)
Media Plan, Direct Mail and Special Events Budget - 2014
Publication Dates Cost Per Unit Cost Northwest Current 6/18, 7/16, and 8/13 $225/ad unit $ 675.00 Bethesda Magazine September/October Issue $325/ad unit $ 975.00 Feature 3 GI Listings Washington Life August Issue Full Page Spread $4,000.00 Wall Street Journal 7/18 and 8/15 $690/ad unit $1,380.00 Sotheby's Ocean Homes August/September $435/ad unit $ 435.00 The Collection Magazine Fall 2014 $1,000/full page $1,000.00 The Collection Magazine 2-3 page feature story $1,000/full page N/C The Washington Post 6/14, 6/21, 6/28, 7/5, 7/12, $ 500/ad unit (est.) $4,000.00 7/19, 7/26, 8/2 The Baltimore Sun 6/14, 6/21, 6/28, 7/5, 7/12 $400 ad unit (est.) $3,200.00 7/19, 7/26, 8/2 Targeted Direct Mail June, July, August and November $2,000/mailing $8,000.00 2,400 addresses - GI, Baltimore,Washington Metro - Assessed at $2m.+ Special Events TBD $4000/event $8,000.00 Total, 2014 Media, Direct Mail and Events Budget $31,665.00
About TTR Sotheby’s International Realty Our firm is one of the highest-performing real estate agencies in the nation, closing nearly $2 billion in the Washington, DC metropolitan area in 2013. Founded in 1976, the Sotheby’s International Realty brand is a unique luxury network of brokerage agencies offering a wide collection of luxury homes, estates and properties for sale throughout the world. As the exclusive affiliate in the Washington metropolitan area, TTR Sotheby’s International Realty has five offices and 250 associates who are recognized sales and marketing experts with access to proprietary marketing, cutting edge internet and web strategies, and unrivaled access to the most affluent and discerning buyers through our community engagement and our relationship with the legendary auction house.
Locations Georgetown 1206 30th Street, NW Washington, DC 20007 Downtown 1506 14th Street, NW Washington, DC 20005 Chevy Chase 5454 Wisconsin Avenue Chevy Chase, MD 20815 McLean 6723 Whittier Avenue McLean, VA 22101 Alexandria 400 South Washington Street Alexandria, VA 22314
visit us online @ ttrsir.com
% Growth in Sales Volume - 2013 / 2012
2013 - Firm Sales Volume Growth
2013 / 2012 Growth - 34% 2012 / 2011 Growth - 52% 2011 / 2010 Growth - 25% 2010 / 2009 Growth - 41%
34%
TTR Sotheby’s International Realty
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Significant Sales & Growth In 2013 and 2014, TTR Sotheby’s International Realty continued to set new sales records and expand in the Washington metropolitan area. In 2014, we represented the sale of the historic River View Estate, once part of George Washington’s original Mount Vernon estate. In 2013, we represented the most expensive home sold in the region as well as the highest priced condominium sale in DC. We are proud to represent the historically significant properties of our nation’s capital and delight in showcasing their unique stories.
Washington, District of Columbia In 2013, TTR Sotheby’s International Realty proudly represented the most expensive sales of co-operatives as well as condominiums in Washington, DC. Significantly, we topped local neighborhoods with the highest price sales in Downtown, Cleveland Park & Massachusetts Avenue Heights. Our sales in the District of Columbia grew 23%, versus 12% for our closest luxury competitor. We maintain a commanding 80% market share of all Washington, DC condominiums sold over $3 million.
Virginia Our most significant sale of 2014 and the highest priced sale in the Washington metropolitan region was the historic River View estate - once belonging to President George Washington in Alexandria, Virginia for $18.6 million. In 2013, sales in Northern Virginia grew 57%, versus 8% for our closest competitor in the luxury market and we had the highest home sales in McLean and Great Falls. Our sales in Virginia exceeded $500M, 65% higher than our closest luxury competitor. In September 2013, we opened our fifth office in Old Town, Alexandria, welcoming nearly 30 outstanding associates.
Maryland Our Maryland brokerage office grew its annual sales by 34% in 2013. TTR Sotheby’s International Realty has a commanding 56% market share of condominiums sales above $2m in Montgomery County, 20% greater than our closest competitor. We consistently represent numerous important and significant sales of residential property throughout Maryland.
Sotheby’s International Realty
Global Network
Through our Sotheby’s International Realty offices worldwide, we have the distinct ability to share property listings with approximately 14,000 sales associates in 700 offices in 50 countries whose focus is working with distinctive residences and discerning clients. A client of TTR Sotheby’s International Realty in Washington is a client through all of our global office. Through our proprietary global distribution, eGallery and marketing initiatives. This closely-knit network promotes relationships and referrals through networking functions, special events, cross-marketing opportunities and more.
Sotheby’s Auction House
Since 1744, Sotheby’s has distinguished itself as a leader in the auction world. Committed to the very highest level of quality, Sotheby’s sales continue to capture the world’s attention. Our exclusive relationship provides us with the ability to market to auction house clientele, a group of the world’s most affluent individuals. Each year, Sotheby’s hosts over 350 auctions in more than 70 categories at over 90 auction houses worldwide.
Marketing Excellence
Best In-Class Photography
TTR Sotheby’s International Realty utilizes only the highest quality professional photography to showcase our listings worldwide.
Floor Plans
Professional floor plans provide important informaiton to prospective buyers both in advance of and following a property tour.
Global Brochure Distribution
We craft fine quality brochures that articulate your property’s features and history. The brochures are distributed to our five offices, key Sotheby’s International Realty offices and Sotheby’s auction sale rooms worldwide.
Direct Marketing
The same high quality standards are reflected throughout our direct marketing which includes a targeted announcement of your property’s availability to high net-worth individuals in the Washington metropolitan area. TTR Sotheby’s International Realty maintains a proprietary database capturing an extensive, affluent client base.
Proprietary Global Publications Sotheby’s is an exclusive luxury magazine created for the world’s leading collectors. Published eight times yearly and available digitally, Sotheby’s includes highlights from every Sotheby’s sale around the world, featuring the rarest works of art and most coveted precious objects on the international market today, including the world’s finest real estate. The award winning RESIDE magazine celebrates the creative fusion of home, art and living. Each issue allows readers to view exquisite homes from around the world and gain key insights into the vitalizing elements of art and real estate. Circulation: 200,000
Regional & Local Publications
TTR Sotheby’s International Realty collaborates with local and regional publishers to provide expanded exposure in the luxury, art, philanthrophy and relevant local markets. These publications combine to over 300,000 media impressions.
National & International Print Advertising Program
An extensive campaign of monthly brand advertisements in global top-tier publications drive traffic back to sothebysrealty.com.
The Collection Magazine Our exclusive lifestyle magazine and property catalogue of Sotheby’s International Realty in the Mid-Atlantic. The Collection is published twice yearly and distributed to a targeted audience of affluent individuals. Circulation: 35,000 print 100,000 digital Total Impressions: Over 500,000
Targeted Technologies
Online Presence
Sotheby’s International Realty’s online distribution of property listings to top-tier real estateand targeted media web sites.
Individual Property Websites
TTR Sotheby’s International Realty is able to create custom websites to showcase a single listing, with video embed functionalities, a complete high-resolution photo gallery, and detailed editorial.
Custom Videos
For our Washington Luxury Channel, TTR Sotheby’s International Realty has the ability to create custom video presentation of a home’s most unique features and location. The 3 - 5 minute videos are produced by former FOX News anchor, Cynthia Steele Vance. Distribution of the custom video is available on ttrsir.com as well as social media sites.
eNewsletter
TTR Sotheby’s International Realty produces a monthly eNewsletter, showcasing our most exceptional new offerings and sharing market insights. With an exceptionally high open rate, our newsletter reaches 75,000 of Washington’s most influential residents.
SothebysRealty.com
SothebysRealty.com is the world’s most visited luxury real estate website with over 70 million page views and 90 million property views annually. Visitors to SothebysRealty.com spend an average of 12 minutes per visit. 45% of viewers are from outside the United States. To that end, SothebysRealty.com is available in 15 languages with 40 currencies.
SothebysRealty.com 2013 Website Visits
ttrsir.com
Homepage placement of properties on ttrsir.com, our firm’s local website, generated over 2.2 million views last year from 157 countries. TTR Sotheby’s International Realty reaches more customers online than any of our competitors. Properties featured on the homepage receive the most traffic on the site and are featured in our digital and social media campaigns.
Mobile Technologies SIR Mobile is the only real estate mobile app that works on all devices, anywhere in the world and may search for global properties. Our app allows consumers to view properties based on GPS FPO location, address, city or postal code all while displaying detailed property information including price, beds/baths, taxes, high-quality photos and more.
HomeSnap Pro is the first of its kind mobile application which provides on demand market analysis and property details with a simple photo taken by a mobile device. We are the first luxury brokerage firm in the Washington metropolitan area to provide this technology to our clients and associates.
Social Media Social Media is a powerful marketing vehicle when used artfully. It has massive global reach, the ability to engage and interact in real-time and creates connections anywhere, anytime. At Sotheby’s International Realty, we use social media to connect your home to our global community of real estate influencers to create meaningful conversations and connections. Our Results: • Thousands of properties showcased • 50 million impressions worldwide annually • 300,000 visits to sothebysrealty.com via social channels • Extraordinary property of the day features one property from sothebysrealty.com on Facebook, Twitter, Google+ and Pinterest and generates thousands of additional property views per day.
eGallery
Sotheby’s International Realty locations provide a dedicated streaming display of exquisite properties worldwide.
Sotheby’s Auction House
A high-definition property showcase in over 90 Sotheby’s Auction Sale rooms globally provides global exposure for both print brochures and. Each year, Sotheby’s holds over 350 auctions in these location, enhancing the exposure of unique and distinctive properties.
Community Engagement
Community Leadership
At TTR Sotheby’s International Realty, what sets us apart from other firms is our continuing commitment to our communities and a deep level of engagement and leadership. Our authentic and purposeful engagement begins with our wide network of active and engaged associates who maintain leadership roles in many local and national philanthrophic organizations. The word of mouth marketing that creates additional connections to your property and our firm.
Leadership In Our Communities: In 2014, TTR Sotheby’s International Realty will sponsor or support over 125 important community, charitable and civic events. Studio Theatre Gala St. Jude's Gourmet Gala Potomac School - Spring Auction NCS Silent Auction Prevent Cancer Foundation Spring Gala Hyde - Addison Elementary School Gala Teach for America Gala Washington Project for the Arts Gala Friends of Book Hill Park Reception Georgetown Art Reception Signature Theatre Awards Gala GT House Tour Patron Party Georgetown House Tour Life with Cancer Lobster Extravaganza Point Foundation Event Georgetown Garden Tour McLean Project for the Arts Spring Benefit Charity Works 100 Point Wine Event Georgetown Concerts at the Park Spring Garden Party at Tudor Place Viva Vienna Turtle Park May Fair Children's Hearing & Speech Benefit BBQ
Annual Bark Ball Georgetown Concerts at the Park Chevy Chase Art Show Georgetown Concerts at the Park Athenaeum Art Reception Joan Hisaoka “Make A Difference” Gala Sprint Four the Cure Taste of Friendship Heights Celebrate Logan Annual Suits & Sneakers Celebration Hillwood Museum Lecture Rachel’s Women’s Center Gala Charity Works Dream Ball McLean Project for the Arts ArtFest Potomac Day Washington International Horse Show Lungevity Gala Friends of Guy Mason Event Hillwood Museum Lecture Key for the Cure - Tyson’s Galleria Sitar Arts Center Gala Rock Creek Conservancy 2013 Butterfly Bash Inova Health System Gala
Friends of Guy Mason McLean WinterFest Parade Scottish Christmas Walk St. Albans Christmas House Tour Logan Circle House Tour Van Gogh Exhibit at The Phillips Collection to benefit Georgetown Pediatric Oncology Georgetown Jingle
Our Commitment
At TTR Sotheby’s International Realty, we value our partnerships and the communities we serve. We differentiate ourselves through our integrity, community leadership and global connections leveraged through the most innovative and technically advanced marketing platform of any brokerage firm in the Washington region. These distinctive traits, along with our professional associates have made us the fastest growing luxury real estate brokerage in the Washington metropolitan area. We look forward to advancing a potential strategic alliance with our neighbors and friends at the Gibson Island Corporation.
2014 | CONFIDENTIAL
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Corey Burr With career sales in excess of $294 million and over 25 years of full-time experience, Corey has had success in all kinds of markets. As a lifelong resident of the area, he knows the character of nearly every block in NW Washington, Chevy Chase, Bethesda, Potomac and Kensington. Because he makes the effort to preview hundreds of houses each year, he can provide excellent pricing advice to sellers and buyers. Couple that with his keen acumen for deal making and negotiations as well as his cutting-edge marketing techniques, and you have a fully-informed, tireless advocate for your best interests.
David DeSantis David DeSantis joined TTR Sotheby’s International Realty as Vice President in October 2007. Prior to his affiliation with the firm, David served as Vice President of Sales & Marketing for PN Hoffman, one of Washington’s DC’s preeminent builders of luxury multifamily housing and mixed-use property. David joined PN Hoffman in 2004 from Archstone-Smith, the successor to the former Charles E. Smith Companies of Washington DC, where he served as Vice President of Retail Services and Business Development. A 20-year resident of Washington DC, living in Woodley Park, David has a B.A. from Hamilton College and a Masters from Georgetown University. He serves on the Alumni Council of Hamilton College and sits on the Steering Committee of the Friends of the Corcoran Gallery in Washington DC.
Mark Lowham Mark joined TTR Sotheby’s International Realty in January, 2011 as Managing Partner, building further on a distinguished career as a widely recognized leader in the Washington real estate community. Prior to joining the firm, Mark served as Executive Vice President at WEST*GROUP, one of the region’s leading commercial real estate development firms. Mark is focused on corporate management, long-term strategic planning, business development, and the cultivation of enhanced resources to continue to expand the unique relationships, expertise and services which TTR Sotheby’s International Realty offers to its clients. Mark is also committed to insuring that the firm, its partners and associates are fully engaged in the Washington communities in which the firm is active. Mark serves in prominent leadership roles in a number of educational and non-profit organizations in the Washington Metropolitan Area. Lowham is a native of Wyoming and prior to joining WEST*GROUP, he worked in the Corporate Finance Department of Kidder, Peabody & Company in New York. He earned his undergraduate degree in Economics from Stanford University and a Masters in Business Administration from the Stanford Graduate School of Business