EFTA01375652.pdf

Strategy Drivers and Portfolio Construction Urban Development / Redevelopment Suburban Development / Multi and SF Rental ■ Acquire sites in up-and-coming urban areas, ■ Acquire parcels to develop single-family rental develop lease-up residential or commercial subdivisions in larger residential master plans or projects with opportunistic return profile purpose-built B2R communities ■ Acquire existing property and redevelop under ■ Develop suburban garden-style multifamily 'substantial improvement' criteria apartments and 'necessity retail' ■ Limited re-entitlement and pre-development ■ Target Loan-to-cost ratio of 55-65% ■ Target Loan-to-cost ratio of 55-65% 'Original Use' Acquisitions Covered Land / Re-Entitlement ■ Acquire nearly-complete projects before they are ■ Acquire sites in up-and-coming locations with re- put into service, qualify under 'original use' entitlement potential, install improvements to qualify criteria existing building under "substantial improvement" ■ Trading lower initial yield for mitigated criteria, and use income for carry costs development risk and shorter timeline to ■ Re-entitle properties over 5-8 year period while cash- stabilization flowing, sell to next buyer at substantial gain ■ Target Loan-to-cost ratio of 60-75% ■ Target Loan-to-cost ratio of 30-40% 15 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0071207 CONFIDENTIAL SDNY_GM_00217391 EFTA01375652