Proposed Deal Structure:

• Equity partner to provide one hundred percent (100%) of funding for the project and shall have first right of refusal to provide debt options to developer at a competitive market rate for both stares of project
• 1.) Acquistion and horizontal improvements and/or
• 2.) construction loan upon receipt of permit. If equity partner chooses to decline to provide the debt for the project, the equity partner shall be reasponsible to sign any loan covenants of guarantees that the project lender will require.
• Developer shall retain full autonomy regarding decision making for project such as design, third party consultants, marketing timing to dispose of asset, and other areas of the project to be discussed later.

Equity partner returns

• In exchange for providing the equity for the project, the equity partner shall receive an eight percent (8.00%) preferred return over the duration of the project and thereafter a fifty-fifty percent (50/50) split with the developer on net proceeds.
• Based upon the draft pro forma, the equity required is estimated to be around $5M and net proceeds upon disposition is $20< resulting in a 2.0x equity multiple and a twenty five percent (25%) IRR over four (4) years.

Capital Stack to Permit

• Debt $ 5,451,227.87 Equity $ 5,451,227.87 _____________ Total Stack $ 10,902,455.73

Path to Permit (2 years)

• Land Purchase Price $ 6,500,000 Acquistion Fee $ 130,000 Soft Costs $ 2,494,595 Interest Carry $ 1,560,000 Property Taxes $ 217,860 __________ Total Costs $10,902,455