Directed Capital - Buyer's Resume Brochure - 2016

SUPERIOR REAL ESTATE LENDING SOLUTIONS A real estate lender for modern times

DIRECTED CAPITAL NON-CONVENTIONAL APPROACH TO SOLVING COMMERCIAL REAL ESTATE LENDING

Directed Capital is an opportunistic real estate finance firm that strategically acquires, originates, manages and repositions commercial loans. The firm has launched and closed seven funds to date, raising more than $200 million in equity capital and acquiring more than $1 billion in assets. With 27 professionals at its offices in St. Petersburg, FL, and San Diego, CA, Directed Capital leverages its extensive network to source deals and seize unique opportunities.

BUSINESS OVERVIEW Commercial Loan Expertise Since inception, Directed Capital has underwritten over $13 billion of commercial mortgage loan transactions primarily secured by commercial real estate. Directed Capital has also had considerable success with mixed use and special purpose assets. Directed Capital currently manages a portfolio of over $300 million of geographically diverse whole-loans secured by commercial real estate.

Diverse Lending Specialties In 2015 Directed Capital acquired $119 million in loans on the secondary market and originated over $20 million in bridge and mezzanine transactions. With a growing team and dedicated capital, Directed Capital budgets close to $150 million each year.

$13+ billion

$300 million of

27 professionals

underwritten

geographically diverse

at its offices in

whole-loans secured by

St. Petersburg, FL, and

commercial real estate

San Diego, CA

Over $1 billion in

Celebrating

loan acquisitions

success since 2001

ACQUISITION PROCESS SUMMARY Though Directed Capital has the ability to deploy capital in

Loan Acquisition Process

non-conventional ways, its’ core business has always been acquiring sub-performing and fully performing commercial real estate loans. Directed Capital has decades of industry

DEAL SOURCING

experience underwriting, pricing, and acquiring loans on the secondary market as well as transacting directly through financial institutions. A dedicated and experienced acquisitions team allows Directed Capital to quickly

INVENTORY SCREENING

underwrite a wide variety of commercial real estate loans in all 50 U.S. states. Directed Capital has the ability to provide quick, confidential pricing and close in expedited timelines.

INITIAL COLLATERAL VALUATION

PRICING ANALYSIS + FEEDBACK

FILE REVIEW

SITE VISIT FINAL COLLATERAL VALUATION

RISK, YIELD + PRICING BID PROCESS + FEEDBACK

CASE STUDIES SAY IT ALL National Life Insurance Company

Regional Bank

Acquired a loan portfolio totaling $30MM in principal balance

Acquired an $8.5MM loan relationship secured by multiple

with strong payment performance. The collateral in the

assisted living facilities from a regional bank. The

portfolio was spread throughout ten states and included

relationship was inherited by the bank from a predecessor

a variety of collateral types with a concentration in retail.

institution that the bank had acquired. The relationship had

Directed Capital provided the best pricing on the portfolio by

legacy payment issues and had been through a series of

formulating a creative exit strategy for the largest credit.

modifications. The relationship was performing under the most recent modification which stretched out for several

National Bank Acquired a pool of loans totaling $22.5MM in principal balance with mixed payment performance from a large national institution. The portfolio included several different geographic regions and consisted of multiple collateral types including hotel, medical office, warehouse and business assets. Directed Capital combined with another private equity group in order to provide the strongest possible price and acquired $14MM of the portfolio in a co-bid.

more years. The bank was incentivized to remove the relationship from its books but did not have a viable exit strategy in the short term. Directed Capital leveraged its’ contacts and extensive knowledge of the senior housing market to provide the bank with a strong price and resolution.

BRIDGE AND MEZZANINE ORIGINATIONS Directed Capital has a dedicated bridge and mezzanine commercial real estate financing platform. Whether you need to quickly close on a new real estate acquisition or have a limited amount of equity to get a project off the ground, Directed Capital has the ability to meet all of your non-traditional financing needs. Directed Capital offers more timely and creative financial solutions than traditional lenders. Listed below are the basic criteria for Directed Capital’s bridge and mezzanine financing platform:

Loan Amount Collateral Type Closing Timeline

Preferred Transaction Types

$1MM-15MM Commercial Real Estate Loans can be processed within 30 days of loan request

• Initial Screening: 1 Week

• Underwriting/Commitment Letter: 1-2 Weeks

• Closing: 1-2 Weeks

• Bridge Financing (1st lien priority)

• Note Purchase/Discounted Payoff Take Out

• Refinance

• Acquisition (Value Add & Ground-Up Development)

• Mezzanine Financing (second lien, subordinated, and equity positions)

Geographic Footprint Rate Structure

• Acquisition (Value Add & Ground-Up Development)

• Refinance

United States • Bridge Financing - 10-12% • Mezzanine Financing – 13-16% (Plus Minority Equity Option) • (Rate structure is commensurate with the risk, complexity and leverage of each unique transaction)

Fee Structure

2.00-3.00%

Loan to Value

• Bridge Financing – 75% • Mezzanine Financing – 95%

Standard Terms

• Reserve/Escrow Accounts • Due Diligence Deposit • Borrower Expenses:

• Lender Legal Fees

• Title & Escrow Fees

• Recording & Filing Fees

• Third Party Reports: Appraisal & Environmental

• Misc: Survey, Flood Search, UCC, Credit Reports

CASE STUDIES SAY IT ALL Bridge Loan - First Lien Originated a $1.6MM loan secured by a medical office. The medical office was suffering from temporary occupancy and cash flow issues. The borrower had financing lined up to take advantage of a discounted payoff (“DPO”) offer from its previous lender. The financing fell through and Directed Capital was given less than three weeks to underwrite and close the transaction. Directed Capital structured a transaction allowing the borrower to take advantage of the DPO. The borrower subsequently stabilized the building and refinanced through traditional channels.

Mezzanine Loan Originated a $500K loan secured by junior positions in two separate hotels. The sponsor had a purchase contract on a value-add asset but needed additional cash to close the transaction. The sponsor pledged its equity in an asset already in Directed Capital’s portfolio in addition to the new asset. The bridge financing allowed the sponsor to execute on an attractive purchase opportunity without monetizing an existing deal.

Bridge Loan (Senior Housing) - First Lien Originated a $17MM loan secured by five assisted living facilities. This was a value-add transaction where the principal was able to acquire the facilities at a below market price due to struggling management and poor financial results. The principal updated the facilities and put new management in place to improve operations. After a strong period of stabilized operations, the borrower took each of the facilities to HUD for financing and paid off the loan to Directed Capital.

EXPERIENCED INVESTMENT TEAM The Directed Capital Acquisitions Team has many years of experience in commercial banking, mortgage banking, real estate development, real estate leasing and management, private equity and venture capital. These multifaceted backgrounds widen the spectrum of possible transactions for Directed Capital, as well as enabling the team to analyze each transaction holistically.

John W. Savage

Lance B. Amano

Cam Childs

Managing Director Asset Acquisitions 727-341-8385

Managing Director Asset Dispositions 727-341-8382

Vice President Acquisitions 727-341-8391

john.savage@directedcapital.com

lance.amano@directedcapital.com

cam.childs@directedcapital.com

Greg Bulleit

Jake Welsh

Jordan Zavislak

Vice President Portfolio Management 727-341-8394

Vice President Portfolio Management 727-341-8395

Vice President Portfolio Management 727-341-8390

greg.bulleit@directedcapital.com

jake.welsh@directedcapital.com

jordan.zavislak@directedcapital.com

Will Hough

CJ Moench

Drew Jennewein

Asset Manager 727-341-8380, ext. 132

Asset Manager 727-341-8380, ext. 125

Asset Manager 727-341-8380, ext. 130

will.hough@directedcapital.com

cj.moench@directedcapital.com

drew.jennewein@directedcapital.com

SOLID STRATEGY. SOUND INVESTMENTS. Founded in 2001 by banking and commercial real estate executives with extensive industry experience, Directed Capital has built a solid reputation as a trusted loan workout specialist with a proven track record of success.

333 Third Avenue North, Suite 400 | St. Petersburg, FL 33701 | (727) 341 - 8380 120 Birmingham Drive, Suite 140 | Cardiff-by-the-Sea, CA 92007 | (727) 341 - 8382 www.DirectedCapital.com