EPC / Grandscape Presentation

November 2021

EPC Grandscape Presentation

EPC Grandscape Presentation

C R E AT I N G A

VISION FOR

Cover Letter

July 22, 2021 Ryan Blumkin, Nebraska Furniture Mart Jeff Lind, Nebraska Furniture Mart

Dear Ryan and Jeff, Thank you for providing EPC the opportunity to be a part of Grandscape. The growth of NFM and Grandscape has been exciting to learn about and our team is eager to create a sense of place and lifestyle experience that will benefit future residents and the Grandscape community alike. We understand that each use and component in a mixed-use community needs to work together to support the success of the overall plan, and the proposed multifamily needs to work together with the retail and other uses to drive current and prospective tenants to the world class development being created.

Between work, family, politics, COVID and all the other things that occupy our time and energy, it is important that we provide tenants a place to call home that allows them to escape from the distraction, accommodate their needs and have a great experience at Grandscape. We are here to provide that accommodation.

EXPERIENCE The team of EPC, HWA and NFM have the expertise necessary to deliver on the Grandscape vision. EPC is a proven leader in the residential industry and has a strong portfolio of award-winning real estate developments. Our mission is to create spaces and experiences that improve the way we live and work.

Standing behind this mission has led to the average delivery of approximately $100 million each year, with the majority of the projects being comparable to the proposed development. Through EPC’s, HWA’s and NFM’s experiences our team’s processes and partnerships allow us to move quickly, concisely and economically through the development process.

PARTNERSHIP Our goal is to not only deliver the best product possible at the best price possible to the residents, but also to create a lasting relationship with the NFM. We commit to operate with integrity, transparency, and to create win-win relationships. This is vital because a development of this size typically involves several different stakeholders, and it will be our job to unite the stakeholders needs into a cohesive and actionable plan.

VALUE This team has the proven financial ingenuity, skill and work ethic it takes to create value and innovative solutions for these specific types of developments. We will analyze all design options and will provide an efficient, durable and long-lasting product that we will all be proud to have been associated with for many years to come.

Our team will work hand-in-hand as we align with you to deliver housing that meets the needs of Grandscape and The Colony. We look forward to building a strong partnership.

Sincerely, EPC Real Estate Group, LLC

Michael J. McKeen

Terence P. O’Leary

Table of Contents

Section 1

BIG PICTURE 9

PROJECT SNAPSHOT UNDERWRITING APPROACH PARTNERSHIP & OWNERSHIP STRUCTURE

Section 2

DESIGNING FOR THE MARKET 19

SITE PLAN RENDERINGS UNIT MIX UNIT PLANS AMENITIES FINISHES RENTER PROFILE & COMPS

Section 3

PROJECT ECONOMIC ANALYSIS 47

PROJECT BUDGET CASH FLOW RETURN SUMMARY

Section 4

PARTNERSHIP 55

REFERENCES

Section 5

EPC QUALIFICATIONS 59

Section 1

BIG PICTURE

9

Project Snapshot

Total Units Total GSF

303,726

Total NRSF

225,308

74% efficiency (will improve)

Garage Stalls

334

1.15 per unit, .99 per bed

Surface Stalls

5

Average Unit Size

774 81

28%

1 BR

163

56%

2 BR

47

16%

Studio

Average Rent/Unit Average Rent/SF Total Costs

10

291

$2,000.95 $2.58 $72,662,120.56

11

11

Underwriting Approach EPC FINANCIAL UNDERWRITING METRICS - GO OR NO-GO DECISION Typical First to Market EPC Profile or Leasehold Interest

Allowable Profile for unique growth markets (Salt Lake City, Select sites in Dallas, Austin)

Yield on Cost (NOI/Cost)

6.5% - 7%

Yield on Cost (NOI/Cost)

5.50%

Typical Exit Cap

4.1% - 5.5%

Typical Exit Cap

3.8% - 5.25%

5 YR Asset IRR Target

20%

5 YR Asset IRR Target

15%

10 YR Asset IRR Target

15%

10 YR Asset IRR Target

13%

5 YR LP Equity Multiple

2x

5 YR LP Equity Multiple

1.75x

10 YR LP Equity Multiple

3x

10 YR LP Equity Multiple

2.25x

In summary, EPC and its partners have adopted a set of metrics specific to the risk profile of the areas in which we develop. Below is a summary of the drivers which allow us and our capital partners to move forward at the outlined metrics for unique growth markets: 1. Market driven lower cap rates at exit 2. Increased interest from capital sources (lower cost of capital due to reduced risk profile) 3. Directly in the growth path 4. Demographic Profile 5. Barrier to entry in the Grandscape community 6. Unique amenity profile in the community

13

Ownership Structure A new ownership entity (typically an LLC) will be set up for this asset. It is likely this asset will borrow 70% of the capital needed for the total development, and the remaining 30% will come from cash investments (or bank recognized contributed assets).

EPC will be the Manager of entity as well as the developer of the asset.

Occasionally, we allow a major investor to act as Co-Manager. This is done only with vetted partners who need to maintain a voting level of control due to the requirements of their capital (ex. government managed pension fund, RE fund, etc.)

EPC is in ongoing discussions with several limited partners who desire to move forward with this development. Once EPC and NFM have an LOI in place, EPC will commence design.

13

Why EPC & Partners Our Team is ready to deliver on Grandscape's vision of the highest quality, mixed-use housing to residents. Our expertise in collaboration with the Grandscape Team will make this development a smooth and straight forward process.

In the past nine years EPC has successfully developed, financed, constructed and leased close to 5,000 multifamily units at a cost of approximately $1 Billion.

EPC is in the development phase of more than $300 million in proposed developments. These deals are already controlled by EPC, or are actively approaching finalization.

PRODUCT TYPES STUDIO 2-BEDROOM 1-BEDROOM TOWNHOMES COMMERCIAL MIXED USE

15

Financial Capacity In the past 10 years, EPC has financed its developments with over 14 conventional banks totaling approximately $765M in development costs and over $1B in stabilized value. Following stabilization, we have either sold or transitioned these developments to long-term agency or institutional debt.

EPC is in good financial standing and has not defaulted on a loan in its history.

Upon request and execution of an LOI, EPC is pleased to provide letters from lenders and institutions speaking to its creditworthiness. All principals of EPC are in good financial standing, have never declared any form of bankruptcy, are able to guaranty loans, make capital calls and invest in all EPC developments.

In addition to the capital of EPC Principals, EPC cash and EPC line of credit, EPC has built a network of over 185 active high net worth investors whom we maintain communication with and whom are likely to have interest in Grandscape. Several of these investors have been a part of recent EPC transactions which provided large capital infusions, and are currently requesting we provide a home for them to place their money.

In addition to our friends and family capital, EPC has many strategic partners whom we have ongoing business with that have expressed sincere interest in being EPC’s investment partner in the subject development. These partners are multi-billion-dollar international engineering firms, large real estate funds, pension funds and large family offices.

Lastly, EPC is in the process of launching a $75M fund that could serve as the sole funding source.

In summary, EPC has the capital to execute and has never taken on a project that did not proceed due to an inability to secure financing. Here is a snapshot of our recent financing >

15

17

Section 2

DESIGNING FOR THE MARKET

19

Site Plan

19

21

Design Concept

EPC Real Estate and the project team proposes to design and develop approximately 290 Class A living residences. These residences will offer the “wow factor” we like to produce, while still offering a lower cost of entry than its neighboring community.

The unit types will be a blend of EPC’s most desired and up to date floor plans and amenities EPC has in its projects. The building exterior and massing will complement the existing development and anchor Phase II with a built-in customer base and energy you only get from mixed use development. In an effort to be complimentary to the existing MF product base in Grandscape, lots of diligence will be done on unit plans to ensure we are offering varying product types and price points in the overall Grandscape community.

The design takes advantage of the views into the Grandscape development, as well as the views the project itself offers into its courtyard. The rear side of the consists of a single loaded corridor so that all units have a view into an active area. This project will offer a large podium courtyard that offers unique amenities and a strong sense of vibrancy and community. This building will house the leasing office, clubhouse, exercise facility, amenities and retail at the base. This building will offer controlled access and climatecontrolled hallways that will be served by elevators.

23

EASY ACCESS TO SHOPS & DINING 291 Units

25

Unit Mix

Unit Type/SF

1st Flr.

2nd Flr. 3rd Flr.

4th Flr. 5th Flr. 6th Flr.

Total/Bldg

Total SF

Percent/ Percent/ SF Unit

1 BR 1 BA S-1

448 SF

0

0

8

8

8

8

32

14,336 SF

6.0%

11.3%

S-2

565 SF

0

0

8

8

8

8

32

18,080 SF

7.6%

11.3%

64

32,416 SF

13.6%

22.5%

Total 1 BR 1 BA A-1

651 SF

0

0

6

6

6

6

24

15,624 SF

6.6%

8.5%

A-2

794 SF

0

0

4

4

4

4

16

12,704 SF

5.3%

5.6%

A-3

765 SF

0

0

7

7

7

7

28

21,420 SF

9.0%

9.9%

A-4

864 SF

0

0

3

3

3

3

12

10,368 SF

4.4%

4.2%

A-5

835 SF

0

0

4

4

4

4

16

13,360 SF

5.6%

5.6%

A-6

857 SF

0

0

4

4

4

4

16

13,712 SF

5.8%

5.6%

A-7

1097 SF

0

0

3

3

3

3

12

13,164 SF

5.5%

4.2%

A-8

995 SF

0

0

3

3

3

3

12

11,940 SF

5.0%

4.2%

136

112,292 SF

47.1%

47.9%

Total 1 BR 1 1/2 BA B-1

979 SF

0

0

5

5

5

5

20

19,580 SF

8.2%

7.0%

B-2

1153 SF

0

0

3

3

3

3

12

13,836 SF

5.8%

4.2%

32

33,416 SF

14.0%

11.3%

Total 2 BR 2 BA C-1

999 SF

0

0

5

5

5

5

20

19,980 SF

8.4%

7.0%

C-2

1223 SF

0

0

2

2

2

2

8

9,784 SF

4.1%

2.8%

C-3

1454 SF

0

0

2

2

2

2

8

11,632 SF

4.9%

2.8%

C-4

1166 SF

0

0

4

4

4

4

16 Total

Total

0

0

71

71

71

71

18,656 SF

7.8%

5.6%

52

60,052 SF

25.2%

18.3%

284

238,176 SF

100%

100%

Avg. Unit

839 SF PER UNIT

1st Flr.

2nd Flr.

3rd Flr.

4th Flr.

5th Flr.

6th Flr.

Total SF

-

-

59,544

59,544

59,544

59,544

238,176 SF

-

4,655 SF

Above Podium Rentable Unit Area Clubhouse

-

-

4,655

-

-

Mech/Comm/Jan

-

-

830

828

828

828

3,314 SF

Corridor

-

-

10,804

11,602

11,602

11,602

45,610 SF

Gross Building Area w/o Garage

-

-

75,833

71,974

71,974

71,974

291,755 SF Bldg. EFF.

1st Flr.

2nd Flr.

3rd Flr.

4th Flr.

5th Flr.

6th Flr.

81.64%

Total SF

Below Podium Multifamily Lobby/Mezzanine

2642

933

3,575 SF

Mail Room

994

994 SF

Leasing

240

240 SF

Amenity

2483

Trash/Delivery

1213

Circulation

2814

1635

4,449 SF

Parking

58899

59816

118,715 SF

Total Multifamily

69,285

66,153

3769

6,252 SF 1,213 SF

75,833

71,974

71,974

71,974

427,193

90.0%

27

Unit Mix Cont.

1st Flr.

2nd Flr.

3rd Flr.

4th Flr.

5th Flr.

6th Flr.

Total SF

Retail Tenant 03

3,572

3,572 SF

Tenant 04

2,176

2,176 SF

Tenant 05

2,176

2,176 SF

Tenant 06

2,176

2,176 SF

Tenant 07

2,304

2,304 SF

Tenant 08

2,304

2,304 SF

Tenant 09

2,304

2,304 SF

Tenant 10

2,179

2,179 SF

Tenant 11

2,176

2,176 SF

Tenant 12

2,176

2,176 SF

Tenant 13

3,203

3,203 SF

Tenant 14

2,049

2,049 SF

Tenant 15

2,048

2,048 SF

TENANT 16

1,681

1,681 SF

TENANT 17

1,681

1,681 SF

Tenant 18

1,681

Circulation

8,114

8,114 SF

Trash/Delivery

2,248

2,248 SF

Dock

1,035

1,035 SF

Total Retail Total

168

1,849 SF

47,283

168

-

-

-

-

47,451

10.0%

116,568

66,321

75,833

71,974

71,974

71,974

474,644

100.0%

Building Summary Building Summary Units Unit Type

City Required

Unit Count

% Of Total

1 BR + 1 BA Executive

64

23%

1 BR + 1 BA

136

2 BR + 2 BA 3 BR + 3 BA Loft Total

Mult. Factor

Bedrooms

Required Parking

Br Per Unit

1.00

64

1.00

64

48%

1.00

136

1.00

136

32

11%

1.00

32

2.00

64

52

18%

1.00

52

3.00

156

284

100%

284

Total Br

420

Parking Totals Garage Total

334

Surface Total

5

Total Parking

339 55

29

Unit Plans

Single Bedroom Sanctuary

Single Grand Serene

FIND YOUR IDEAL LAYOUT IN ONE OF THE SPACIOUS 1 OR 2 BEDROOM APARTMENTS

2 Bedroom Haven

Single Bedroom Simplicity

31

Unit Plans Cont.

Corner Oasis

Studio Retreat

Spacious Single Bedroom

2 Bedroom Bungalow

33

Project Timeline 2021

2022

2023

2024

2025

Planning + Entitlements Design + Documentation Plan Review + Permits

Construction

Occupancy

Project Stabilized

35

Amenities EPC prides itself on providing a unique collection of community amenities.

Whether they are busy unwinding in the swimming pool, spending time with pets at our dog park, they’ll find comfort at the heart of the community. Select amenities could include:

• Coffee Bar • Indoor & Outdoor Lounge Areas • Rooftop Lounge Area • Interactive Work Areas • Theater & E-Gaming Facility • Dog Park • Dog Grooming/Bathing Station • Indoor Games – Ping Pong, Pool, Video, Virtual • Golf/Soccer, Board Games • Outdoor Games – Bocce, Bags, Volleyball • Grilling Areas • Pool on Podium Deck • Fitness Facility, Featuring: Spinning, Yoga, Free Weights, Resistance Machines, Cardio, Video Classes, Multi-function Cross Fit

• Infrared &/or Himalayan Sea Salt Sauna • Bike Storage • Massage Room • Electronic Parcel Delivery System (Refrigerated & Regular) • Smart Units • Recycling • Trash Concierge • Uber/Lyft Pick Up Areas • Electric Car Charging Stations • In-Unit Laundry • In-Unit Kitchen & Appliances • Cable/Internet/Wifi, Etc. • Dry Cleaning Service • Patio/Balconies • Storage Space

Finishes Our team has a high standard for our facility’s interiors. We want to deliver the best to our tenants and have a record of top quality units and common area.

FLOORING: Each project varies slightly as new products hit the market. We make our selections with durability and appearance top of mind. Primarily, the flooring has been wood-like vinyl plank flooring in the kitchen and family room, carpet in the bedrooms, and tile in the restrooms and laundry room.

COUNTER TOPS: As a high quality developer we only use granite or quartz.

Primarily, we are currently sourcing quartz, but this is constantly threatened by tariffs. We have partners we work closely with to fabricate counter tops overseas in controlled facilities where we can change 1% of the aggregate mix to avoid certain tariffs. Timing of purchase will guide this selection.

HARDWARE, SINKS, ETC.: Similar to above, we have proprietary sources and also work closely with sub trades to get the most current looks and best value. Since these are showpieces of a unit, we are always top of the market and due to bulk purchasing for all of our properties we get preferred pricing.

Our interior designer will collaborate with Hoefer Welker to ensure the best applications are selected at the right price point for our target demographic.

Below and on the following page are examples of recent projects that are representative of typical unit and common area finishes.

Renter Profile & Comps Grandscape offers a unique opportunity to develop a top tier luxury midrise apartment project in what is considered to be the most exciting entertainment and restaurant venue in Dallas. This project will serve a proven market demand in the renter-by-choice category for high-end controlled access properties.

Demographics for the 160,000 people within a 3 miles radius of the Project closely follow EPC’s target renter profile for this property type. EPC’s research and experience in its markets show the following factors are the most important to a successful lease-up: 1. L OCATION/AMENITIES: High density controlled access projects in close proximity to shopping, restaurants, recreational activities and employment centers command the highest monthly rents in any particular market.

2. MIXED-USE: Projects located in a development area established for a mixed-use pedestrian environment are ideal opportunities in the marketplace for residential development. Grandscape is a perfect example of a true mixed-use area.

3. INCOME AND DEMOGRAPHIC PROFILE: The following characteristics are generally present in markets with successful high density projects.

Key demographics in a 3-5 mile radius from Grandscape are:

• High percent of white collar class

84%

• Highly educated with college degrees (typical 22%)

61%

• Target market age range 25 -74

65%

• Target income $50,000 – 200,000+

68%

EPC projects are not viewed as apartments, but as an amenity rich lifestyle that residents look forward to coming home to. Following are a few of the trends we see in our Communities.

MARKET DEMAND / RENTER PROFILE

andscape offers a unique opportunity to develop a top tier luxury midrise apartment project in EPC projects are not viewed as apartments, but as an amenity rich lifestyle that Gen Y marketanddesirous amenity and community in hat is considered to be • theAttracts most exciting entertainment restaurant of venue in Dallas.rich lifestyle residents look forward to coming home to. Following are a few of the trends we see in our walkable area Communities. is project will serve a proven market demand in the renter-by-choice category for high-end ntrolled access properties. Demographics for the 160,000 people within a 3 miles radius of the • Attractive option for young professionals and executives transferring the of amenity rich lifestyle and community in walkable area x Attracts Gen Y marketto desirous oject closely follow EPC’s target renter profile for this property type. EPC’s research and x Attractive option for young professionals and executives transferring to area. perience in its markets showarea. the following factors are the most important to a successful x Creates quality housing option for those who never considered renting before. ase-up: x Fills the gaprenting for those selling a home and looking for transitional housing.

• Creates quality housing option for those who never considered x Provides independent living option prior to the need for assisted living.

1. Location/Amenities: High density controlled access projects in close proximity to before. x Provides community and companionship for those living alone in their later years. shopping, restaurants, recreational activities and employment centers command the x Empty nesters desirous of staying in the community to be close to family. the gap for those selling a home and looking for transitional housing. highest monthly rents•inFills any particular market.

These along with the amazing Grandscape project will attract some of the highest rents in 2. Mixed-Use: Projects• located in a development area established for a mixed-use Provides independent living option prior to the need forfactors assisted living. the Dallas Metro. pedestrian environment are ideal opportunities in the marketplace for residential • Provides community for those living alone in their development. Downtown mission is a perfect example ofand a truecompanionship mixed-use area.

later years.

3. Income and Demographic Profile: The following characteristics are generally present in markets with successful nesters high density projects.

Key of demographics a 3-5 mile • Empty desirous stayinginin the community to be close to family. radius from Grandscape are: x x x x

High percent of white collar class 84.0% These along the amazing Grandscape project will attract some of Highly educated with collegefactors degrees, typical 22%with x 61.0% Target market ag e rathe ng e 25 -74 highest rents in the Dallas Metro.

65.0% Target income $50,000 – 200,000+ 68.0%

40

41

Unit Mix & Rental Rates Grandscape EPC UNIT MIX AND RENTAL RATES 1 2 3 4 5 6 7 8 9 10 11 12 AVG

Unit

Unit Description

Unit Status

Ave. Unit SF

Total # of

S1 A1 A2 A3 A4 A5 A6 B1 B2 B3 B4 B5

Studio 1BR 1BR 1BR 1BR 1BR 1BR 2BR 2BR 2BR 2BR 2BR

Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1 Phase 1

548 790 787 734 896 941 964 1,085 1,028 978 1,115 1,098 774

81 119 20 8 8 4 4 24 8 3 8 4 291

Total SF 44,388 94,010 15,740 5,872 7,168 3,764 3,856 26,040 8,224 2,934 8,920 4,392 225,308

Market Rent/ Mth/

Market Rent/

1,499 1,999 1,999 2,328 2,258 2,518 2,518 2,699 2,599 2,469 2,799 2,699

2.74 2.53 2.54 3.17 2.52 2.68 2.61 2.49 2.53 2.52 2.51 2.46 2.58

Grandscape Lanoha Summary- 345 Units Efficiency 34

A

9

EFFICIENCY

492

4,428

1,206

2.45

B

24

EFFICIENCY

554

13,296

1,358

2.45

B ANSI C D

1 15 19

EFFICIENCY 1 BR / 1 BA 1 BR / 1 BA

554 677 677

554 10,155 12,863

1328 1,990 1,930

2.40 2.94 2.85

E

12

1 BR / 1.5 BA

785

9,420

2,237

2.85

ELECT FP

F

39

1 BR / 1 BA

738

28,782

2,030

2.75

WINE CENTER

F ANSI

5

1 BR / 1 BA

738

3,690

2,030

2.75

WINE CENTER

G

39

1 BR / 1 BA

738

28,782

2,030

2.75

H

10

1 BR / 1 BA

827

8,270

2,398

2.90

J

1

1 BR / 1.5 BA

1,201

1,201

3,423

2.85 2.86

K

9

1 BR / 1.5 BA

1,031

9,279

2,948

L/L-1

11

1 BR / 1.5 BA

957

10,527

2,727

2.85

M

3

1 BR / 1 BA / STUDY

974

2,922

2,776

2.85

WINE CENTER, ELECT FP

ELECT FP

WINE CENTER

P

20

1 BR / 1 BA

809

16,180

2,225

2.75

Q

14

1 BR / 1 BA

809

11,326

2,285

2.82

WINE CENTER

R

10

1 BR / 1.5 BA / STUDY

1,530

15,300

4,896

3.20

WINE CENTER

S

30

2 BR / 2 BA

1,108

33,240

3,546

3.20

T

16

2 BR / 2 BA

1,108

17,728

3,556

3.21

U

18

2 BR / 2 BA

1,108

19,944

3,596

3.25

WINE CENTER

V

27

2 BR / 2 BA

1,169

31,563

3,591

3.07

WINE CENTER

V ANSI

2

2 BR / 2 BA

1,169

2,338

3,591

3.07

WINE CENTER

W

9

2 BR / 2 BA

1,312

11,808

4,264

3.25

Y

2

2 BR / 2.5 BA / STUDY

2,420

4,840

TOTALS

345

308,436

2.88

(2) WINE CENTER, GAS FP

1 BR 207

1 BR 102

2

345 AVERAGES

894

Rent Comparables & Summary Rent Comparables Summary

6000 Columbus Ave - LVL 29

No. Rent Comps

Avg. Rent Per Unit

Avg. Rent Per SF

Avg. Vacancy Rate

17

$1,521

$1.70

16.3%

RENT COMP LOCATIONS

Rent Comparables by Bedroom Studio Comps

One Bed Comps

$1,102

$1,301

Rent Comparables by Bedroom Subject Studio Comps

$1,102

Unit Breakdown

Low

Vacancy Rate Subject

$1,102

$1,301

Asking Rent Per SF

One Bed Comps

$1,102

$1,301

Total Units

158

Changes Past Year in Rent Comps $1,102

Asking Rent Per SF

$1.88 Year-Over-Year Effective Rent Growth

Asking Rent Per 296 SF

48

Effective Rents Per 146Unit

Three Bedroom Units

0

Effective Rents Per 13SF

Star Rating

Concessions

2

Year-Over-Year Vacancy Rate $1,061 Change

117

Average

Changes Past Year in Rent Comps

EXISTINGMedian UNITS

Year-Over-Year 2016 Effective Rent Growth

2018

3

7 Year-Over-Year Vacancy Rate Change

4

771 4.0%

12 Month Net Absorption in Units 893

16.3% EXISTING UNITS

461

$1,267

100

$1.65

12 Month Net Absorption in Units$1.81

7

892 9.0%

4.2

3.7% Studio

EXISTING UNITS $1,301

$13,333

2.6%

High

1 Bedroom

-2.6%2020

-3.1%

-2.0% 25

0.4%

261,320

844

Studio

-2.6% -2.0% 26

Studio

$1.69

$1,267 3 Bedroom

2,483 16.2%

$1.65 2.6%

$1.69 $1,919 $1.63

-3.1% 0.4% 844

3 $1,267 Bedroom

$1.65

225 45.9%

$2,521

$1.83 $2,396

2

2.6%45.

$1,987 1 Bedroom

$2,5

-2.6% $1.69

-3.1% $1

-2.0%$1,919

0.4%$2,3

26 $1.63

844 $1

3.4%

2 Bedroom VACANT

1 Bedroom

$1,987

$1.69

3.7% 16.2%

15.4% Subject

$1,061 Year-Over-Year Change 1 Bedroom Vacancy Rate 2 Bedroom

High $1.81 in Units 652 12 Month Net Absorption 5,027 3.7% 1,675 13.6% 15.4%

EXISTING UNITS $1,102177 $1,301 Year-Over-Year $1.881,037 $1.69 222 Effective Rent Growth Changes Past Year in Rent Comps

2005

13.6%

$3,871

Concessions 395

493

Vacancy Rate

92

Vacancy Rate

$2,521

Asking Rent Per Unit Effective Rents Per Unit Studio EffectiveMedian Rents Per SF

Stu

Year-Over-Year Change 1 Bedroom Vacancy Rate 2 $1,061 Bedroom in Units$1.81 2,483 652 12 Month Net Absorption 5,027

-

Two Bedroom Units

Average Unit Size SF

$1,301 $13,333

Concessions Subject

Average

5,027

$1,102 $3,871 Year-Over-Year Effective Rent Growth $1.88

Changes Past Year Rent Comps Three BedinComps

Vacancy Rate Subject

$2,437

1 Bedroom

Subject 15.4%

Subject

One Bedroom Units

Number of Floors

$1,987

Asking Rent Per SF

$2,521

652 13.6%

Effective Rents Per SF

38 Asking Rent Per Unit

Low

Concessions Subject

Studio Effective Rents Per Unit

0

Year Built

$1,987

Effective Rents Per Unit Studio Effective Rents Per SF

Bed AskingTwo Rent Per Comps Unit $2,437

-

$3,871

6000 Columbus Ave - LVL 29

Total Number of Units

Studio Units

Property Attributes

VacancySubject Rate

Subject Three Bed Comps

$2,437

Current Conditions in Rent Comps

Total Number of Units

Stu

AskingTwo RentBed Per Comps Unit

-

Current Conditions in Rent Comps

Total Number of Units

$1,987

6000 Columbus Ave - LVL 29

Total Number of Units

Subject One Bed Comps

Studio Comps

Current Conditions in Rent Comps

$1,301

$2,437

Current Conditions in Rent Comps

Studio Comps

Subject

RENT COMPS SUMMARY STATISTICS

Two Bed Comps

-

Rent Comparables by Bedroom

Rent Comparables by Bedroom

Subject

One Bed Comps

5.

3 Bedroom UNITS

-1.8%

-2.

-0.4%

10.

518

$1.75

3.4% 5.0% VACANT UNITS 3 Bedroom 2 Bedroom -1.8%

-2.7%

-0.4%RENT PER UNIT10.4% ASKING PER MONTH 518 62

76.5% VACANT UNITS

ASKING RENT PER UNIT PER MONTH

12 MONTH NET ABSORP

11/3/2020

Copyrighted report licensed to Phoenix Capital Partners, Ltd. - 592224

Page 2

ASKING RENT PER UNIT PER MONTH

12 MONTH NET ABSORPTION IN UNITS

Subject

Subject

Subject

Subject

-

$2,437

$3,871

$13,333

Current Conditions in Rent Comps

Studio

1 Bedroom

Total Number of Units

652

1

Twelve 12 Cowboys Way

15.4%

16.2%

45.9%

$1,102

$1,301

$1,987

$2,521

Effective Rents Per Unit

3 4 5 6 7 8 9 10 11 12 13 14 15 16

Yr Built

Units

Avg Unit SF

Studio

-

2020

158

1,249

-

2020 2019

-

6633 John Hickman Pky

2018

-

7200 Dallas Pky

2018

-

8055 Windrose Ave 1009 14th St Lucia 4848 Grand Gate Way Alta 289 7950 Preston Rd Evoke 1025 Preston Rd

1,104

-

$2,437

$3,871

$2.96

332

835

$1,518

$2,032 $2,697 Effective Rents Per Unit$3,145

$2.60

300

1,320

$1,890

Concessions

$2,128

3700 Mapleshade Ln

$3,822

2710 Routh Creek Pky 5275 Town and Country…

Frisco Bridges (Office, Re… 3200 Rifle Gap Rd Legacy North 5765 Bozeman Dr Cyan Craig Ranch 7101 S Custer Rd Legacy Village Apartment…

400

771

$1,138

Rent Comparables by $1,533 $2,109 - Change $2.05 Year-Over-Year Vacancy Rate

2019

183

862

-

Comps $1,446 Studio $2,275

-

2020

425

906

-

$1,419

Studio

Bedroom

EXISTING UNITS

$1,102 $2,132

Subject

$2,327

$1,526

$1,427

$2,497

$1.79

-

2017

459

848

$1,275

Current Conditions Comps $1,298 $1,852in Rent$2,513

$1.74

-

2019

385

872

Vacancy Rate

-

$1,324

$1,721

Asking Rent Per Unit

2015

300

892

$1,121

-

2019

456

992

-

$1,315

-

2014

395

810

-

Year-Over-Year Vacancy Rate $1,042 $1,665 - Change $1.52

Effective Rents Per Unit$2,168 $1,285 $1,745

$1,742

$2,170

Changes Past Year in Rent Comps

$1,301

$1,987

Current Conditions in Rent Comps

$1.55

2009

868

908

$1,072

$1,236

$1,703

$2,585

$1.51

-

2010

1,675

844

$936

$1,157

$1,501

-

$1.46

-

2020

322

33

-

$1,196

$1,654

$1,844

2005

-

2007

One Bed Comps

$1,301 Subject

-

$2,437

1,043

847

398

Two Bed Comps

$917

$1,486

$2,085

$1.39

6000 Columbus Ave - LVL 29 912 $1,041

$1,497

-

$1.31

$1,987

$2,521

Subject

Subject

ASKING RENT PER UNIT PER MONTH

$3,871 Studio

Total Number of Units

1 Bedroom

1 Bedroom

5,027

2,483

15.4%

16.2%

45.9%

$1,102 $1,301 $1,987 Copyrighted report licensed to Phoenix Capital Partners, Ltd. - 592224 $1.88 $1.69 $1.69

$2,521 $1.83

$1,061

$1,267

$1,919

$2,396

Effective Rents Per SF

$1.81

$1.65

$1.63

$1.75

3.7%

2.6% 1 Bedroom

3.4% 2 Bedroom

$1,301

$1,987

$2,521

$1.88

$1.69

$1.69

$1.83

$1,061

$1,267

$1,919

$2,396

$1.81 $1.65 $1.63 12 MONTH NET ABSORPTION IN UNITS 3.7% 2.6% 3.4% 1 Bedroom

2 Bedroom

$1.75 5.0% 3 Bedroom

-2.6%

-3.1%

-1.8%

-2.7%

-2.0%

0.4%

-0.4%

10.4%

26

844

518

62

3 Bedroom

2,483

225

16.2%

45.9%

$1.69

$1.83

$1,061

$1,267

$1,919

$2,396

Copyrighted Phoenix Capital Partners, Ltd. - 592224 $1,987 report licensed to$2,521

ABSORPTION IN UNITS $1.81 12 MONTH NET $1.65 $1.63 2.6%

3.4% 2 Bedroom

11/3/2020 Page 6

$1.75 5.0% 3 Bedroom

-3.1% -1.8% ASKING RENT PER UNIT PER MONTH 0.4% -0.4% 518

-2.7% 10.4%

12 MONTH NET ABSORPTION IN UNITS

62

VACANT UNITS

11/3/2020 Page 6

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11/3/2020 Page 6

12 MONTH NET ABSORPTION IN UNITS

11/3/2020 Page 3

5.0% 3 Bedroom

Copyrighted report licensed to Phoenix Capital Partners, Ltd. - 592224

Year-Over-Year Effective Rent Growth

-2.6%

-3.1%

-1.8%

-2.7%

Year-Over-Year Vacancy Rate Change

-2.0%

0.4%

-0.4%

10.4%

26

844

518

62

VACANT UNITS

$1,102

225

Effective Rents Per Unit

Studio

45.9%

3 Bedroom

652

Concessions

225

16.2%

$13,333

$1.69

844

3 Bedroom

VACANT UNITS

$1.88

-2.0%

2 Bedroom

15.4%

Subject

15.4%

-2.6%

$13,333

13.6%

Studio

$1,301

1 Bedroom

Subject

$3,871 2,483

10.4%

13.6%

3.7%

$2,521

Subject

5,027

Ave - LVL 29 62

$1,102

Studio

$1,987

652

$2,521

2 Bedroom

5,027

62

Three Bed Comps

$13,333 2 Bedroom

13.6%

Vacancy Rate

-2.7%

-2.7%

518

$1.41

$1,091

Three Bed Comps

5.0% 3 Bedroom

-1.8%

-0.4% 6000 Columbus Ave - LVL10.4% 29

Two Bed Comps

1 Bedroom

$1.83

5.0% 3 Bedroom

VACANT UNITS

Studio

3.4%

$3,871 Studio

844

$2,521

$1.75

2 Bedroom

-3.1% 0.4%

$1.75

3.4% 2 Bedroom

26

225

$1.63

$1.63

2.6% 1 Bedroom

45.9%

$2,396

Copyrighted report licensed to Phoenix Capital Partners, Ltd. - 592224

-

$2,437

$1.69

$1,987

26

-

3 Bedroom Subject

$1,919

12 Month Net Absorption in Units

$2,437

12 Month Net Absorption in Units EXISTING UNITS

2,483 16.2%

EXISTING Subject UNITS

$1.58

$1.65

3.7%

Two Bed Comps Year-Over-Year Effective Rent Growth Three Bed Comps VACANT UNITS Year-Over-Year Vacancy Rate Change

Subject

$1.71

-

Concessions

5,027

652

$2,353

2 Bedroom

-15.4%

1 Bedroom

$1,301

922

$1.81

$13,333 $1,301

Effective Rents Per Unit -2.6% -3.1% -1.8% Effective Rents Per SF UNIT PER MONTH-0.4% -2.0% ASKING RENT PER 0.4% Concessions 6000 Columbus 26 844 518

$1.82

288

$2,070

Subject

$1.69 Total Number of Units $1,267 Vacancy Rate $1.81 $1.65 Asking Rent Per Unit 3.7% 2.6% Asking Rent Per SF

$1.93One Bed Comps

2020

$1.83 $2,396

One Bed Comps Subject

Changes Past Year in Rent Comps

-

Subject

EXISTING UNITS

$2.45

Year-Over-Year Effective Rent Growth

Cortland Legacy

12 Month Net Absorption in Units

$8,550

$2,521

$1,061

ASKING UNIT PER MONTH EffectiveRENT Rents PER Per SF

Reserve at Spring Creek

Changes Past Year in Rent Comps

$1,102 $1.88

Changes Past Year in Rent Comps

$1,987 1 Bedroom

652

$13,333

Asking Rent Per Unit

Three Bed Comps

13.6%

Asking Rent Per SF

Axis 3700

Asking Rent Per SF

328

Vacancy Rate

-

-

6550 Chase Oaks Blvd

Asking Rent Per Unit

Studio

Total Number of Units

Alexan Legacy Central

Current Conditions in Rent Comps

$3.35

Two Bed Comps

$3,871 $1,102

12 Month Net Absorption in Units

Morada Plano

$1,102

Current Conditions Comps $3,031 $5,648in Rent $10,538

$1.69 $1,919

Studio

Studio Comps Subject EXISTING UNITS

$2,437

Rent/SF

$1.69 $1,267

6000 Columbus Ave - LVL 29

12 Month Net Absorption in Units

Subject 3 Bed

Year-Over-Year Effective Rent Growth

Windsor Metro West

8401 Memorial Studio Comps Ln

2 Bed -

1 Bed

$1.88 $1,061

Year-Over-Year Effective Rent Growth Rent Comparables by Bedroom -2.6% Year-Over-Year Vacancy Rate Change -2.0%

Effective Rents Per SF

The Kincaid at Legacy

Tribeca Apartments

$1,301

Asking Rent Per SF

SkyHouse Frisco Station

Parkwood Blvd Rent7001 Comparables

by Bedroom 17

$1,102

Subject Asking Rent Per Month Per Unit

Rating

-

6000 Columbus Ave

Effective Rents Per SF

Changes Past Year in Rent Comps

Total Number of Units

LVL 29

2

One Bed Comps

6000 Columbus Ave - LVL 29 Property Size

Property Name/Address

Studio Comps

225

13.6%

Asking Rent Per Unit

Concessions

Rent Comparables Summary

3 Bedroom

2,483

Vacancy Rate Asking Rent Per SF

Rent Comparables by Bedroom

2 Bedroom

5,027

11/3/2020 Page 6

45

Rent Comparables

Rent Comparables Photo Comparison

6000 Columbus Ave

Subject Property

1 Twelve

LVL 29

12 Cowboys Way

158 Units / 17 Stories Rent/SF $3.35, Vacancy 55.7% Owner: Blue Star Investments Inc

3 The Kincaid at Legacy

7200 Dallas Pky

4848 Grand Gate Way

425 Units / 5 Stories Rent/SF $1.82, Vacancy 48.0% Owner: Invest Group Overseas

328 Units / 29 Stories Rent/SF $2.96, Vacancy 64.3% Owner: NE Development

4 Windsor Metro West

300 Units / 25 Stories Rent/SF $2.45, Vacancy 9.0% Owner: Intercontinental Real Estate…

6 Lucia

6000 Columbus Ave

8055 Windrose Ave

400 Units / 5 Stories Rent/SF $2.05, Vacancy 8.0% Owner: GID Investment Advisers LLC

7 Alta 289

7950 Preston Rd

288 Units / 4 Stories Rent/SF $1.79, Vacancy 8.3% Owner: Wood Partners

Copyrighted report licensed to Phoenix Capital Partners, Ltd. - 592224

2 SkyHouse Frisco Station

6633 John Hickman Pky

332 Units / 25 Stories Rent/SF $2.60, Vacancy 56.0% Owner: Novare Realty

5 Morada Plano

1009 14th St

183 Units / 5 Stories Rent/SF $1.93, Vacancy 31.2% Owner: Southern Land Company

8 Evoke

1025 Preston Rd

459 Units / 5 Stories Rent/SF $1.74, Vacancy 11.6% Owner: CAF Capital Partners;Generi…

11/3/2020 Page 4

Rent Comparables Photo Comparison

9 Alexan Legacy Central

6550 Chase Oaks Blvd

10 Axis 3700

385 Units / 5 Stories Rent/SF $1.71, Vacancy 25.7% Owner: Trammell Crow Company

12 Cortland Legacy

5275 Town and Country Blvd 395 Units / 4 Stories Rent/SF $1.52, Vacancy 8.4% Owner: Cortland

15 Cyan Craig Ranch

7101 S Custer Rd

322 Units / 4 Stories Rent/SF $1.41, Vacancy 76.4% Owner: Davis Development

3700 Mapleshade Ln

300 Units / 4 Stories Rent/SF $1.58, Vacancy 5.0% Owner: Benjamin E. Sherman & Son…

13 Frisco Bridges (Office, Reta…

3200 Rifle Gap Rd

868 Units / 4 Stories Rent/SF $1.51, Vacancy 7.0% Owner: Mid-America Apartment Com…

16 Legacy Village Apartment H…

7001 Parkwood Blvd

1,043 Units / 4 Stories Rent/SF $1.39, Vacancy 4.0% Owner: UDR, Inc.

6000 Columbus Ave

11 Reserve at Spring Creek

2710 Routh Creek Pky

456 Units / 3 Stories Rent/SF $1.55, Vacancy 5.9% Owner: Lone Star Funds

14 Legacy North

5765 Bozeman Dr

1,675 Units / 4 Stories Rent/SF $1.46, Vacancy 8.0% Owner: Invesco Advisers, Inc.

17 Tribeca Apartments

8401 Memorial Ln

398 Units / 4 Stories Rent/SF $1.31, Vacancy 10.1% Owner: White Oak Partners

47 Copyrighted report licensed to Phoenix Capital Partners, Ltd. - 592224

11/3/2020 Page 5

Section 3

PROJECT ECONOMIC ANALYSIS

49

Development Budget ACQUISITION COSTS Land Costs

$6,547,500.00

Closing Costs

$50,000.00

Preliminary Assessments

$10,000.00 Total Acquisition Costs: $6,607,500.00

HARD COSTS Site Work

$0.00

Construction Costs

$52,434,873.00

Hard Cost Contingency

$1,573,046.19 Total Hard Costs: $54,007,919.19

SOFT COSTS Architectural / Engineering / Design

$2,325,762.00

FFE, Gov Fees, Market Study, Startup

$1,763,396.90

Legal

$250,000.00

Marketing

$83,000.00

Taxes

$250,000.00

Insurance

$350,000.00

Construction Financing Costs

$4,246,483.20

Soft Cost Contingency

$278,059.26

Development OHP

$1,250,000.00

Construction Management OHP

$1,250,000.00 Total Soft Costs: $12,046,701.37

TOTAL PROJECT COSTS

$72,662,120.56

Cash Flow

Attachment G - 10 Year Proforma

Grandscape

Mixed Use Executive Summary PROPERTY CASH FLOW

Total

Period Beginning Period Ending

Year 0 6/21 6/21

Year 1 6/21 5/22

Year 2 6/22 5/23

Year 3 6/23 5/24

Year 4 6/24 5/25

0 (17,556,319) (4,106,733) (840,361) (22,503,413)

0 0 (1,765,860) 1,305,269 (460,591)

521,247 (1,343,421) (822,174) (18,188) (840,361) 0 0 840,361 0

5,191,645 (3,050,472) 2,141,173 (36,557) 2,104,616 0 0 (1,305,269) 799,347

OPERATING METRICS Avg. Occupancy % Development Costs TOTAL ACQUISITION COSTS TOTAL HARD COSTS TOTAL SOFT COSTS Total Cash Flow from Operations

TOTAL DEVELOPMENT COSTS

(6,607,500) (54,007,919) (12,046,701) 464,907 (72,197,213)

(10,000) 0 0 0 (10,000)

PROPERTY CASH FLOW Total Effective Gross Revenue Total Operating Expenses Net Operating Income Total Capital Costs Property Cash Flow Funded Capital Expense TI & LC accounted for in Project Costs CF from Operations accounted for in Project Costs

FUNDED PROPERTY CASH FLOW

DEBT SERVICE Permanent Financing Interest Permanent Financing Principal

CASH FLOW AFTER DEBT SERVICE

(10,000)

YOY Variance / %Tot. Rev. NET FINANCING Net Sale Proceeds Loan Funding Loan Fees Loan Payoff

TOTAL CASH FLOW

YIELDS Leveraged Cash on Cash Yield DSCR

0 0 0 0 31,121,601

(10,000)

(6,597,500) (4,447,601) (826,906) 0 (11,872,007)

0 (32,003,999) (5,347,202) 0 (37,351,201)

0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0

0 0

0 0

(11,872,007) 0 0 0 0

0 0

(37,351,201) 214.6%

(22,503,413) -39.8%

0 27,574,044 0 0

0 22,503,413 0 0

(11,872,007)

(9,777,157)

-54.81% 0.00x

-172.45% 0.00x

0 -103.90% 0.00x

0 0 338,756 -101.5% 0 57,031,385 (282,854) (50,538,049) 6,549,238 1.56% 0.00x

Year 5 6/25 5/26

Year 6 6/26 5/27

Year 7 6/27 5/28

Year 8 6/28 5/29

Year 9 6/29 5/30

Year 10 6/30 5/31 0%

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

0 0 0 0 0

7,194,924 (3,154,153) 4,040,771 (36,922) 4,003,849 0 0 0 4,003,849

7,231,731 (3,184,377) 4,047,354 (37,292) 4,010,062 0 0 0 4,010,062

7,392,705 (3,219,545) 4,173,160 (37,665) 4,135,495 0 0 0 4,135,495

7,569,611 (3,255,602) 4,314,009 (38,041) 4,275,968 0 0 0 4,275,968

7,750,841 (3,292,116) 4,458,725 (38,422) 4,420,304 0 0 0 4,420,304

7,936,502 (3,329,093) 4,607,409 (38,806) 4,568,603 0 0 0 4,568,603

(2,545,686) 0

(2,545,686) 0

(2,545,686) 0

(2,545,686) 0

(2,545,686) 0

(2,520,048) (1,253,218)

1,458,163 330.4%

1,464,377 0.4%

1,589,809 8.6%

1,730,282 8.8%

1,874,618 8.3%

795,337 -57.6%

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

92,636,516 0 0 (55,317,576)

1,458,163

1,464,377

1,589,809

1,730,282

1,874,618

6.73% 1.59x

6.76% 1.59x

7.34% 1.64x

7.99% 1.69x

8.66% 1.75x

38,114,278 3.67% 1.22x

53

Costs & Economic Returns

$72,662,120.56

Total Costs

Approx. $250k per unit

$6,547,500.00

Land Costs

$22,500 per unit

$1,499.00 - $2,699.00

Rent Range

not including parking, etc..

Average Rent/Unit

not including parking, etc..

$2.58

Average Rent/SF

not including parking, etc..

$93,572,238.46

10 YR Hold Value

5% cap rate exit

$2,001.00

6.73%

C.O.C. @ Stabilization

1.59

DSCR @ Stabilization

13.31%

10 YR IRR

5.60%

Yield on Cost

2.27x

10 Yr. Equity Multiple

Assumes 70% Debt

Section 4

PARTNERSHIP THE VALUE OF PARTNERSHIP EPC’s long term economic goals consist of achieving specific metrics on revenue, additional units in our portfolio, expanded geography and growing product diversity in our portfolio. To hit these goals, we need to focus our time and energy on deals and partnerships that strategically bring us closer to hitting our goals.

VanTrust, Woodbury, McCown Gordon, Black & Veatch… Over several deals and repeat ventures, these are companies we have created mutually beneficial partnerships with that will or have extended into new revenue opportunities for each company. This is the kind of partnership we want with NFM. Our hope is that we cannot do just one deal together, but simplify the development path and be a multifamily partner as you expand your business into new areas. As a partner, you will always have transparency, opportunities for investment, trust, a team on standby and a team that can execute.

57

References The following individuals can attest to our ability to deliver innovative solutions and outstanding service. We encourage you to talk with our clients and partners to get a first-hand account of the experience of working with us.

OUTSIDE INVESTMENT PARTNERS AND/OR CAPITAL SOURCES TERRY ANDERSON Co-President of Platform Ventures (816) 285-3871 | terry.anderson@platfromv.com JENIKA COOK Senior Wealth Advisor at Mariner Wealth (913) 647-9758 | jenika.cook@marinerwealthadvisors.com JOSH WOODBURY Vice President of Woodbury Corporation (801) 485-7770 | josh_woodbury@woodburycorp.com RD KHOURY Phoenix Capital Holdings (972) 866-2135 | rdkhoury@pcpre.com BRAD HARDIN President, Diode Ventures (913) 458-4679 | hardinb@diodeventures.com

PUBLIC PARTNERS BILL EBEL City Manager City of Overland Park (913) 895-6101 | bill.ebel@opkansas.org BECCY YOCHAM City Manager City of Lenexa (913) 477-7750 | byocham@lenexa.com LAURA SMITH City Administrator City of Mission (913) 676-8352 | lsmith@missionks.org SCOT RIGBY Assistant City Manager City of Wichita (913) 477-7750 | srigby@lenexa.com

Section 5

EPC QUALIFICATIONS THE SOURCE OF KNOWLEDGE IS EXPERIENCE.

61

EPC Qualifications NEW APARTMENT DEVELOPMENT

Under the ePartment Communities brand, EPC has been developing and managing multifamily since 2000. The EPC partnership,which contains all the partners from ePartment Communities and three new members, was formed in 2014 and the company has since grown from seven employees to approximately 50 and has expanded into several new states including Utah, Arizona and Texas.

EPC’s has developed one project of 300 units in Denton, Texas that was stabilized and sold in 2021.

NEW PROJECT PHILOSOPHY

EPC looks for and focuses on infill locations in established neighborhoods to offer a current and fresh housing opportunity for existing residents and attract new renters to the area.

Established neighborhood developments include: • 51 Main - KCMO.....175 units plus retail • Avenue 80 - Downtown Overland Park...217 units plus retail • Mission Farms - 107th and Mission Rd. Overland Park and Leawood, Kansas.

Three projects of 221, 240 and 139 units plus retail.

• The Locale - Mission, Kansas....201 units plus retail • The Village at Aspen Place - Flagstaff, AZ....222 units plus retail

EPC DEVELOPMENT FOCUS •

VISION BASED COMMUNITIES

•

UNIQUE PROJECT DESIGN

•

CITY / NEIGHBORHOOD ALLIANCE

•

SOUND FINANCIAL DECISIONS

EXPERTISE BY THE NUMBERS. THE SOURCE OF KNOWLEDGE IS EXPERIENCE.

RISK MITIGATION GENERAL CONTRACTOR COVERAGE

COMMERCIAL GENERAL LIABILITY (CGL) Coverage is provided by the General Contractor (GC) in limits recommended/ approved by one of EPC’s attorneys. This coverage protects EPC, its additional insured, and clients from construction defects on a per occurrence basis at the time of installation and should extend three years beyond Certificate of Occupancy (CO).

If a defect occurs during the state statue time period of longer than three years, it is first a claim against the GC. The GC can elect to rely on subcontractor insurance to fix the problem or if the problem is too large and/or there is a dispute with a particular sub the GC can make a claim against their own insurance to cover under the GCL. This is important since in the event CGL coverage is denied or reduced EPC’s only source for cost recovery of the repairs is the GC. If the GC is not financially sound then we are exposed.

CONSTRUCTION BOND Sometimes required by EPC lenders, depending on GC and product type. Keeps pressure on the GC to complete work properly and can be used to file a claim under construction defects. This coverage is provided by the GC and reviewed

by EPC’s attorney as needed.

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EPC "JUST LIKE NOBODY ELSE" BUILDER’S RISK

This coverage is provided by the GC or owner to cover damage to the project while under construction and prior to CO for the entire building. Requests should be made to EPC’s broker and the GC. Consideration will be given to a) the owner’s policy via Broker providing owner control of the claims process versus b) the GC providing the policy and including deductible cost in their bid. All policy quotes and terms need to be carefully reviewed to make sure all exclusions and deductibles are understood.

The EPC Director of Finance (DF) to contact the GC if it has a blanket program that the project can be rolled into at a better rate. If so, the DF will forward the EPC Request for Insurance Form.

This insurance form will include: • Entity Name • Date of Coverage • Building cost valuation/SOV worksheet with loss of income, FF&E • Project timeline from general contractor • Project Site Plan • Other project specific information or requirement DF will complete a comparison of Brokers quote to other broker specialty market quotes, if applicable, and to GC’s quote. Any and all exclusions or endorsements are to be included with a spreadsheet comparison summary.

The comparison will be provided to the EPC Insurance Committee which will be responsible for the final evaluation and selection of Builders Risk coverage.

For projects where a site may be acquired but Builders Risk coverage will not be in effect until a later date when project work begins, General Liability coverage will likely be required for the site (depending on land acquisition timing). If GL is required, request procedures above apply. The GL policy will typically continue through the construction period and be replaced when property/GL umbrella coverage is placed for the project.

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PROPERTY LIABILITY COVERAGE PERMANENT INSURANCE This coverage is bound by the owner and referred to as Property and Casualty insurance. This covers damage by fire, water, wind, earthquake etc. Deductible limits are typically $10,000 - $25,000 per occurrence and coverage is mostly in place for catastrophic events. Business Income and Loss of Rents is an added component of the permanent insurance. Required insurance coverages may be indicated in mortgage loan documents as well.

QUOTE PROCESS EPC will select a Broker to represent it to the general “marketplace”. Each insurance company that is approached by the Broker is referred to as a “market”.

There could be 30 markets interested to quote or just a few. The Broker may also in approach “Specialty Markets” to obtain a quote.

It is important to note that in a volatile market using one Broker to contact the general marketplace may gain leverage in obtaining the most competitive quotes.

The Broker will advise EPC in writing of all the “markets” it is contacting to obtain a quote.

At that point EPC may elect to contact other brokers that represent specialty markets that are not part of the market list already being contacted. EPC will provide that list of exclusions to any other broker approached. EPC will provide the same valuation and limits forms used by the primary Broker so the same information is used for each quote.

EPC should also investigate if an investor partner in the project has access to a blanket policy that would be interested in quoting the project under their master policy.

All contact with Brokers should be handled through the Dir of Finance (DF) who will work with the PL for each EPC new build or acquisition.

The DF is responsible for coordinating and administering the property/liability/ umbrella insurance for new and existing properties in the EPC portfolio.

Request for new property coverage or renewal of existing coverages should begin 90-120 days prior to binding date. The DF will coordinate with the asset manager (if applicable) as to who will request quotes and make the final selection of coverage.

The statement of values exhibit or other required applications and forms will be reviewed/revised for the new or renewal property coverages and reviewed with the Insurance Committee.

Depending on the direction given by the asset manager, quotes will be requested from: • EPC Broker for their selected market (Currently utilizing Lockton) • Additional Brokers for access to Specialty Market quotes (Ex. MG Skinner through Truss) • Master policy of the asset manager Quotes received will be summarized (Exhibit C) including statement of values, rates, deductibles, and premiums with a comparison completed by the Director of Finance to verify consistency between quotes. The comparison will be reviewed with the Insurance Committee and then forwarded to the third party asset manager (if applicable) if required for final review and selection.

Coordination of premium billings, down payments and premium financing to be handled by the DF.

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MANAGEMENT APPROACH The EPC Team is excited to work with Grandscape to create a unique residential experience. We will utilize a design-assist delivery system that emphasizes partnership, teamwork, integrity and innovative design solutions.

Our team is comprised of professionals who have extensive experience in the development, design and construction of community living spaces and have developed a reputation for delivering the best development experience in the industry. More importantly, Our team consists of professionals who bring a significant passion for delivering projects that exceed our clients’ expectations.

Our management approach brings together a full complement of innovative and technically superior experts with first-hand experience. We will work as a fully-synergized project team to ensure that project objectives are satisfied and exceeded. Our team’s primary goal is to work smart to evaluate every available asset and utilize every resource possible to provide detailed options and generate the most value for the project.

Our team weighs design innovation, financing, constructability, budget and schedule implications, and quality control equally throughout the entire course of the project. This delivers a final product with the highest and best value.

PASSION TO EXCEED EXPECTATIONS

Design, constructability and quality are equally important factors in any project. Our management approach allows each of these components to be constantly monitored from initial planning through occupancy and warranty.

Our team will use a management structure for this assignment that provides the design and construction teams to be fully integrated from initial planning sessions through completion. Design is not a subverted task to construction, and constructability has an equally important influence throughout design.

MANAGEMENT PLAN With the number of stakeholders on this project, we create a Management Plan to establish the best overall approach. In our experience, engaging early in the process to document and prioritize each stakeholders goals allows for the entire team to buy into a cohesive plan. This plan becomes a roadmap we use to make decisions, establish design expectations, and then use to benchmark throughout the project. The Management Plan will also help set clear expectations on lines of communication, determine how and when approvals are executed and help set standards for decision making.

PARTNERSHIP Our team will have equal voice. Our principals will be involved in helping to lead the project and we will be characterized by our energy, passion, entrepreneurial We have found this process to be helpful in coordinating on complex projects.

Having clear objectives maintains alignment through the design process and spirit and responsiveness. ensures concepts conceived are executed. The plan will be a tool to hold all parties accountable and ensure goals and promises made early in the project are met and delivered upon .

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BUDGET MANAGEMENT Our cost estimating process involves the full breadth of our preconstruction services including programming, scope development, scheduling, phasing and budgeting/estimating.

During the programming phase, our team will work with Grandscape to create a vision that fits the development. By accurately identifying the program early in the process, we will be able to provide accurate cost feedback and analysis to ensure the current program aligns with the budget.

Our estimators use various cost models to determine the most cost-effective systems relating to structure, skin and interior construction. Life cycle analysis will be used as a tool to select finishes, HVAC systems and various electrical systems. Through this process, we create a set of four documents (master budget, construction cost summary, cost alternates and clarifications) that serve as a road map throughout the remainder of the design. At each design phase milestone, we thoroughly review the documents to confirm their completeness and adherence to the project scope, and bring to light any discrepancies.

Early in the design process, we prepare an initial estimate for the project.

We utilize our in-house historical data bank and cost histories as well as subcontractor input in major scope areas of the project to develop the budget.

It is important to note that we don’t rely on historical square foot historical costs; rather, we do a detailed take-off at the earliest phase to develop a realistic cost of the work and then back check these values against our cost history for further validation and analysis.

We create and develop a budget at the following design milestones: • Conceptual Budget • Design Development • 50% Construction/Early Package Budget • 100% CD/Full GMP

While these are milestone budget delivery dates, in reality, the estimate is a living document that is constantly updated throughout the design process with feedback from all partners. Our team presents options and value engineering ideas during each and every phase of design for evaluation by the design team.

In fact, we utilize four major documents for reporting purposes throughout the design process: MASTER BUDGET: Contains all costs related to the project, not simply construction costs which includes our estimate of the cost of furnishings, fixtures and equipment. This gives our investors a clear picture of the total project cost.

CONSTRUCTION COST SUMMARY: A high level cost summary is created broken down by trade and major systems per industry standards. To further analyze and help evaluate costs we will segregate costs as desired, such as site, core and shell, and fit out. Detailed line item cost estimates will be provided to support each cost summary. At each milestone estimate update we will provide a variance summary and notate any major cost changes.

COST ALTERNATES: Provides constant opportunities for cost reductions or additions, maximizes flexibility, and provides an on-going history of decisions the team has made throughout the course of the project.

CLARIFICATIONS: Serve to fill the role of the specification in the early phases of the project, clarifying exactly what is included in the current estimate summary.

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OUR PEOPLE MAKE THE DIFFERENCE. KEY TEAM MEMBERS The EPC team will be comprised of some of the industry’s most talented development, design and construction professionals. Our hand-selected team brings the best talent for each discipline—no member is a jack of all trades and a master of none. All of our team members are highly specialized in their respective scopes of work and committed to working collaboratively to develop the absolute best solutions for Grandscape on this project.

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T H A N K YO U

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