Real Estate Deal PitchNICK LIEWNOAH NEWBERGERZACHARY BARDWELLTOBIAS LEVIN STEIMBERG

Executive Summary

1. Market Characteristics2. Site Plan3. Timeline4. Capital Structure5. Distribution Waterfall6. Analysis of Risks

Market DemandResidential

◦ 6.2% Avg Vacancy◦ 4.4% 12 month rent growth◦ Rents

Retail◦ 3.1% Avg Vacancy◦ 8.8% 12 month rent growth◦ Current asking rent $23/sqft

($/sqft/mo)

Residential

Retail

Site Plan On Western Ave.Development Plan

◦ Timeline- Two years to build both plots◦ Cost - $111 Million

1101 Western Avenue◦ 2 floors retail / 4 floors residential

1100 Western Avenue◦ 6 floors parking / 7 floors residential

Maximize waterfront views for residential and foot traffic for retailLEED Silver certification on all buildings

Floor Plans900 Square Foot 2 Bedroom 1,500 Square Foot 3-Bedroom

Retail Space- 25,000 sft per floor- Split 2-1, Anchor and two stores

Market Leasing Assumptions

Operating Expenses - 2% inflationParking - $80/stall/month

◦ 722 stalls

Commercial Tenants

Tenant Strategy ◦ Major anchor tenant◦ Regular tenants

Project Timeline

*Occupancy corresponds to Residential

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Sources and UsesDevelopment Costs

◦ Total = 111.4 million◦ Acquisition Cost ◦ Hard and Soft Costs

Debt and Equity

Construction Financing Equity Structure

Cash Flow Distribution

Step 1: Return All Capital - $40 milStep 2: Accrue and Pay Preferred Return at 7% (pari passu)Step 3: Split Free Cash Flow After Preferred Return 3 waysStep 4: Sell Property in Year 10Step 5: Split Sales Proceeds 3 ways

Financial Model General Assumptions

One Time Jump in Year 6

Vacancy Rates

0%

25%

Year 3Onwards

First 2 Years

Vacancy Rates - Retail

Private Equity Cash Flow

IRR = 30.2%

Gonzaga University Cash Flow

IRR = 42.2%

Our  Team’s  Cash  Flow

IRR = 40.8%

Overall IRRs

Average Cash-on-Cash

Sensitivity Analyses

Sensitivity Analyses (continued)

Sensitivity Analyses (continued)

Analysis of Risks (Qualitative)

1. Construction Risks◦ Delays from flooding

2. Market Risks◦ Macroeconomic conditions

3. Leasing risks◦ Higher Vacancy