Mary Ann Tighe
Chief Executive Officer
New York Tri-State Region
Business Review Day
Case Study: CIT Group Inc.
May 17, 2006
Exhibit 99.12

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Evaluate the following facts and determine what you would do:
June, 2004
A new CEO of a Fortune 500 financial services company
Offices reflect long history of cost containment and thrift
•
Split operation with HQ in a suburban, secondary market
•
180,000 RSF “sales”
office in Manhattan has a lease expiration of 12/2008
Company seeking to reposition its image / energize its culture
The
real
estate
market
for
space
is
tightening
rapidly
prices
are
rising
Manhattan lease provides for one, five-year renewal option at FMV
Hypothetical Situation

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Hypothetical Situation
Typical firm would:
2004:  Do nothing
Q3, 2005:  Begin a study to identify strategic occupancy options
2006:  Hire real estate broker to:
•
Identify space options for 180,000 RSF
•
Target late 2006 / early 2007 for lease signing 
Q4, 2008:  Move into new space
Q4, 2008:  Relinquish 180,000 RSF space upon lease expiration

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Case Study

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CIT Group, Inc.
CIT Group, Inc.
1908 -
Founded as Commercial Credit Investment Company. 
1984 -
Manufacturers Hanover Bank purchased CIT from RCA
2002 -
Tyco International spins off CIT in IPO
Fortune 500 Company –
NY Stock Exchange listed (CIT)
$10.7 Billion market cap
6,000 employees worldwide

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CIT
Core Business: 
•
Asset-based lending to mid-cap companies
Business Lines: 
•
Specialty Finance Commercial (commercial lending/leasing)
•
Specialty Finance Consumer  (home lending, student loans, etc.)
•
Commercial Services (trade finance—retail and factoring)
•
Corporate Finance
•
Equipment (middle market equipment lending/leasing)
•
Capital (commercial aircraft, rail, project finance, etc.)

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CIT
Headquartered 25 Miles West of Manhattan

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CIT
1211 Avenue of the Americas

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2004
2005
2006
CIT
June 2004
Peek appointed
CEO of CIT

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CIT
2004: New Leadership / New Mandate
One CIT
Revolutions Per Minute (RPM)
Return on Equity (ROE)
People
Access

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CIT

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CIT

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CIT
Different types of space for different functions
Different levels of profitability in business segments
Different nature of personnel
Framework For Analysis

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CIT
Key Findings
Inconsistent space standards
Poor cross-selling environment
Real estate tarnishes image
Outlying headquarters

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CIT
Strategy
Incorporate findings into space planning
Improve space/energy
Proactively address lease/location issues
Contribute to cultural change
Maintain cost controls

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CIT
Options
Renew and restack at 1211 Avenue of the Americas ?
Consolidate NJ and NY offices in one location?
Consider split operation?
Livingston
1211 Avenue of
the Americas

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CIT

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CIT
“Brand”
New Opportunity
505 Fifth Avenue

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CIT
Benefits to Enjoy
Major Transportation Arteries

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CIT
View from CIT space

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CIT
505 Issues
Expensive
Small floorplates
Landlord history

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CIT
CBRE’s
Negotiating Expertise
Extensive coverage of delivery conditions
Late delivery ramifications
Real estate tax protection
Comprehensive expansion rights
Exit strategy

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CIT

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CIT
Disposition Challenges
1211 Avenue of the Americas
JP Morgan Chase
News Corporation
CIT

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CIT
Disposition Challenges
The Players

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CIT

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CIT

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CIT

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CIT
Hiding in Plain Sight
Elevator
Floor
Bank
RSF
Tenant
LXD
32
2,197
Available
Immed.
31
2,197
Available
Immed.
30
7,779
KS Management (3,157)
  Tennis Channel (4,622)
Various
29
9,834
Goldsmith, Agio & Helms
2010
28
10,466
Robert Allen Group
7/2015
27
10,459
Available
26
20,185
   Valentino (16,185)
  Marzato USA Corp. (4,000)
N/A
25
23,900
   Martha Stewart Living Omnimedia
04/2010
24
21,288
   Martha Stewart Living Omnimedia
04/2010
23
25,201
   Martha Stewart Living Omnimedia
06/2012
22
27,822
   Robert Allen Group
6/2012
21
26,618
   Michael Kors, Inc
10/2013
20
27,755
   Michael Kors, Inc
10/2013
19
30,366
  Empire BC & BS (1,536)
Cohen, Henessey (6,865)
Avail (5,374)
Avail (13,218)
Various
18
30,520
  Empire Blue Cross & Blue Shield
12/2015
17
32,511
  Empire Blue Cross & Blue Shield
12/2015
16
32,478
  Empire Blue Cross & Blue Shield
12/2015
15
35,309
  Springer Publishing
Available (14,094 RSF)
Oxford
12/2011
14
33,345
  Elie Tahari  (sublet from Armani)
12/2011
13
36,502
  Available
Immed.
12
37,198
  Thacher, Proffitt & Wood
2/2006
11
37,261
  Thacher, Proffitt & Wood
2/2006
10
33,825
   New York University
2016
9
34,093
  Sublease Available (9,652 RSF)
Thacher, Proffitt & Wood
10/2008
8
37,957
  Available (6,850 RSF Immed.) 
Martha Stewart Living Omnimedia
4/2010
7
37,455
  Available (23,271 RSF 3/2006)
  Available (14,183 RSF Immed.)
6
34,220
  Syska & Henessy
6/2010
5
34,892
  New York University
9/2006
4
35,108
  New York University
9/2006
3
34,741
  Frankel Group (14,526)
Syska & Hennessy /  Electronic Systems (20,215)
Various
2
39,659
  Tishman Speyer Properties
N/A
Available- Direct
Available- Sublease

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CIT
Hiding in Plain Sight

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Hiding in Plain Sight
CIT
Disposition
Agreements
Radio Silence

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CIT

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CIT

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CIT
CBRE Creates CIT Campus in Midtown

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CIT

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CIT
Waterside Plaza
Only residential property
on Manhattan’s East River
1471 rental units including
20 town homes
3000 residents
720 car garage
Two acre plaza with
retail shops

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CIT
CIT had 50% interest
Sale faced complicated issues
•
Tax
•
Legal
•
Financial
CBRE’s
New York investment sales team led effort
Waterside Plaza

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CIT

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CIT

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CIT
Europe
European Transactions
United Kingdom
Sweden
Netherlands
France
Italy
Germany
Ireland

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT

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CIT
San Diego, CA
Pasadena, CA
Westport, CT
2006 / U.S. Assignments
Livingston, NJ

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CIT