EFTA02023511.pdf

To: [email protected][jeevacation mail.com • Je 'eevacation mail.com From: "Second City Capital Partners" on behalf of Second City Capital Partners Sent: Mon 12/5/2011 10:50:10 PM Subject: Second City II closes / secures $96 million of real estate in 6 months Title: Second City II closes / secures S96 million of real estate in 6 months Contact: Kyle Dunn, Email not displaying comedy? View it in your t>rovesac. New New Current Portfolio Investment Investment Cherry Creek Corporate Center - Denver, "Thunderbird" "Bedford" Colorado ("Cherry Creek") EFTA_R1_00530082 EFTA02023511  Thunderbird is a value- Bedford is a class A Cherry Creek is a 594,000 SF office complex added medical office / multifamily apartment comprising three distinct assets: the Campus, retail opportunity that building located in 356,000 SF of fully occupied buildings with long- CITY II has under Brooklyn, NY. term credit tenants; the Tower, a 238,000 SF contract for $7.65 value-added office tower; and the Development million with a Brooklyn is the most Lands, a multi-family development site. Cherry December closing. populated area in New Creek was acquired in July 2011 for $62.5 York City, with an million. The 69% leased estimate population of property comprises of 2.6 million. Downtown The Campus properties (which represent the four buildings with a Brooklyn is the third- largest component of Cherry Creek) are net rentable of 55.000 largest central presently generating a cash-on-cash return of square feet and two business district within approximately 22%, the Tower is undergoing a development pads New York City, after major upgrade, and the Development Land re- totaling 2.6 acres. midtown and zoning is underway. downtown Manhattan. We have engaged a City Center - St. Petersburg, FL ("City highly regarded All 29 residential units Center") medical property are currently leased at management and below market rents City Center is a Class A office building with a leasing company to and the tenants are net rentable area of 242,000 square feet ("SF"). implement a primarily young CITY II acquired City Center for $16.5 million, rebranding and capital professionals. equivalent to $68 per square foot. improvement project. Furthermore. we have CITY II has secured To date we have secured long-term lease initiated discussions Bedford for $9.8 million renewals for approximately 31,000 SF and with several key (a 7.2% cap rate) and executed 36,000 SF of new leases. physicians tenants, we intend to complete allowing them to the acquisition in early Our strategy for City Center is to maintain high participate in our 2012. Our business rental rates and to attract creditworthy tenants acquisition of the plan is to gradually with compelling leasing deals that include an property. We believe increase the rent to initial period of free rent. having the physicians market rates and, as co-owners will be when the market helpful to entice new warrants. either sell the EFTA_R1_00530083 EFTA02023512  medical tenants to this property en bloc or as project. condominiums. We anticipate Based on existing Thunderbird will initially leases we anticipate generate a cash-on- that Bedford will initially cash return of generate a cash-on- approximately 12% per cash return of annum. approximately 13% per annum. CITY II Summary Since launching on June 1, 2011 CITY II has completed / secured four acquisitions for a combined price of $96 million. A quarterly profit distribution commenced on November 30, 2011, with an initial annualized yield of 5.7%. However, the investment strategy is to reinvest within the portfolio and achieve the majority of investment returns through long-term capital gains. Final Closing CITY II allows investors, fund managers, and private family offices the ability to align their capital on identical terms with the personal deployment of capital by Sam Belzberg and Bosa Properties, two of the more accomplished real estate investors in North America. Mr. Belzberg and Bosa both believe that select situations exist in the United States with the potential for abnormal risk adjusted returns. Having the experience and sophistication to source and restructure these situations, CITY II is the ideal access point into the distressed U.S real estate market. If you would like to learn more about the final closing of CITY II, please contact: Kyle Dunn Vice President, Investor Relations 604 806 3350 EFTA_R1_00530084 EFTA02023513 kdunnOsecondcitvcapital. corn torwto tg a Mend Copyright C 2011 Second Crty Caplet Ad rights reserved. This email is going out to all those people that have at one point or another connected with a member of the Second City Capital team Our mailing address us: Second City Capital 2600 - 1075 West Georgia Street Vancouver. BC V6E 3C9 Add us to your address book lansituribe fronythis fat I talite_s_ulmreption pretemnsm INV EFTA_R1_00530085 EFTA02023514