1760 Market Street, Suite 900 Philadelphia, PA Philadelphia Private Capital, LLC Servicing and Asset Management Capabilities

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1 1760 Market Street, Suite 900 Philadelphia, PA Philadelphia Private Capital, LLC Servicing and Asset Management Capabilities

2 Philadelphia Private Capital Overview Philadelphia Private Capital, LLC ( PPC ) is an established commercial mortgage banking firm servicing over $200 million in commercial and multifamily mortgages. PPC is the exclusive correspondent for Great West Life, Canada Life, Shenandoah Life, Thrivent Financial for Lutherans, Bank of the West and the Independent Order of Forester s. PPC is also the manager of two real estate related private equity funds totaling over $20.0 million PPC is a member of U.S. Realty Capital, LLC which is a national network of commercial mortgage banking firms with nine offices across the United States placing over $1.0 billion in debt and equity placements annually. PPC is comprised of eighteen full time persons to include eleven Loan Originators/Underwriters, an Investment Specialist, a Chief Financial Officer, three Analysts, an Administrative Assistant and a Servicing Manager. Our Servicing Manager is a CPA with forty years experience. PPC is a member of the Mortgage Bankers Association and the Urban Land Institute. Page 2

3 PPC Loan Servicing Platform PPC s servicing responsibilities for its correspondent lenders/investors include: Collecting monthly payments and forwarding same to our investors with a written report and summary of activity by loan. Escrowing monthly for taxes and/or insurance. Paying the taxes and insurance premiums for each loan when due to take advantage of the appropriate discounts for early payment. Monitoring the annual insurance renewals required for each loan making certain that the renewal coverage and carrier sizes conform to our investor requirements. Periodically re-filing UCC1 s when appropriate. Providing detailed reports quarterly to investors concerning real estate taxes paid, insurance renewals and any UCC1 re-filings. Annually collecting income and expense statements, rent rolls and financial statements for each loan serviced, reviewing them and providing a detailed written report to our investors. Providing quarterly Watch List reports listing potential problem loans, as appropriate. Performing an annual physical inspection of each property and providing a written condition report with photographs to our investors. Handling any fire, flood or condemnation matters that arise including inspecting and photographing any damage or potential loss of property and providing a written report to the investor. When appropriate, acting as investor s agent in concert with their in-house personnel to restructure a loan or work out a potential default situation. When necessary, acting as investor s agent, working with in-house or local counsel, to foreclose and/or take a mortgagee in possession position to sequester, improve, lease, manage and/or sell any distressed assets. Where and when appropriate, hiring and coordinating local counsel, leasing and sales brokers, making improvements, preparing and negotiating leases and marketing the foreclosed property. Processing requests for other matters as they arise such as a change of a partnership interest or reviewing and recommending approval or rejection of a mortgage assumption or a large or non-conforming lease of a property and similar actions; in general acting as liaison between borrowers and investors. Providing annual statements showing interest paid, change in principal balances and escrow analysis to borrowers. Calculating and processing loan payoffs. We maintain a $1,000,000 fidelity bond for each company and have general liability and errors and omissions coverage. Page 3

4 PPC Technology Platform Our servicing platform is run on a proprietary software program that was designed and developed by two of our members in concert with a professional programmer. All loan servicing data is run on our corporate server with RAID 5 multiple redundant hard drives. Data is backed up every evening to a separate, portable, hard drive. That hard drive is physically removed from the premises onceeachweekandstoredinasecureoffsitelocationunderthesupervisionof our CFO. We have two such hard drives. On an alternating basis, one hard drive is brought back to the office every Monday morning and re-installed. While virtually impossible, in a worst case scenario, that process prevents us from ever losingmorethan4days ofdata. Thedataretainedonthealternateharddrive could be immediately retrieved for ease of re-creation and rebooting back into the in office computer network. We also have a professional, independent, corporate technology firm on retainer that maintains a firewall protection on all information onourserverandcomputers.theyareavailable oncall tousona24hour,7 dayaweekbasis. Page 4

5 PPC Investor Reporting Philadelphia Private Capital, LLC is responsible for all aspects of the accounting and reporting functions for the servicing portfolios and private equity funds it manages. Daily bookkeeping with weekly reporting to the asset managers, monthly financial reporting to asset managers and quarterly reporting to Limited Partners as part of the Fund s quarterly updates. Annually: tax returns, 1099 s and Limited Partner investor K-1 s are all coordinatedthroughppcwiththegoalofk-1deliverybymarch15 th eachyearto its investors. LP investors are notified of new fund investments immediately upon closing via e- mail with comprehensive project summaries posted to the Intrepid Fund web site for their review. Quarterly a Limited Partner update is compiled and distributed via mail and is also posted to the Fund s web site. This would include all new investment activity along with updates on existing investments. This update is prepared and sent withatargetdateof45daysfromthecloseofthequarter. Page 5

6 PPC Competitive Advantages Experienced Asset Management/Servicing team with a proven track record. Personalized Service. Asset management, loan servicing and investor reporting infrastructure is in place and scalable. Well established long term relationships with middle market real estate borrowers and institutional lenders. Extensive deal sourcing network through Philadelphia Private Capital, LLC/U.S. Realty Capital, LLC and its affiliated companies. Page 6