COMPANY OVERVIEW. Real Estate Investment, Development, Management ADAPTIVE REUSE NEW CONSTRUCTION RESIDENTIAL RETAIL OFFICE MIXED-USE

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1 Real Estate Investment, Development, Management COMPANY OVERVIEW ADAPTIVE REUSE NEW CONSTRUCTION RESIDENTIAL RETAIL OFFICE MIXED-USE 1613 Walnut Street 2nd Floor, Philadelphia, PA alterraproperty.com

2 INDEX Overview Why Philadelphia Featured Projects Team

3 OVERVIEW Alterra Property Group, LLC ( Alterra ) is a diversified real estate investment, development, and management company based in Philadelphia, PA. The company employs a highly qualified team of professionals that handle all aspects of real estate development, investment, and management, including but not limited to: acquisition, entitlement, project/construction management, asset management, property management, accounting, and underwriting. As part of this track record, the Principals of Alterra have worked with and can provide references from numerous institutional private equity firms, such as The Blackstone Group, Federal Capital Partners, BlackRock, Normandy Realty Partners, and Patron Capital Partners. Alterra has developed hundreds of upscale apartments in Philadelphia and currently manages them under the umbrella of APG Living. Leasing information can be found at ,000 YEARS EXPERIENCE REAL ESTATE TRANSACTIONS STATES NEW RESIDENTIAL UNITS $200MM $300MM+ RAISED IN EQUITY CAPITAL REDEVELOPMENT PROJECTS COMPLETED $1B REAL ESTATE TRANSACTIONS CLOSED 2

4 WHY PHILADELPHIA 3, ,017 TOTAL STOREFRONTS FOOD ESTABLISHMENTS TOTAL RETAILERS 116, ,240 STUDENTS ATTEND COLLEGE ARTS AND CULTURAL INSTITUTIONS RESIDENTS IN CENTER CITY 36% 47% PHILADELPHIA HOLDS 36% OF REGIONAL 'EDS & MEDS' JOBS PERCENTAGE OF CORE CENTER CITY POPULATION THAT ARE MILLENNIALS 38% 6.7B+ OF CENTER CITY S JOBS ARE HOUSED IN OFFICE BUILDINGS IS BEING INVESTED FOR MAJOR DEVELOPMENTS 3

5 The 1616 Walnut Street Alterra acquired this ~275,000 square foot Class B office building in 2012, in partnership with Federal Capital Partners and Cross Properties. After a full year of meticulous planning, the building was vacated and redeveloped. Historical Tax Credits were used as part of the project s financing. Icon as the building was renamed, was completed in July of 2014, fully leased shortly thereafter, and sold in July of See More: K 100+ LUXURY APARTMENTS SF OF RETAIL SPACE VALET GARAGE PARKING SPACES Sold for $112 million one for the record books on a per square foot basis, according to market sources. - Philadelphia Business Journal 4

6 Chestnut Alterra acquired this ~149,000 square foot Class B office building in 2013 in partnership with the Scully Company. The building was vacated and redevelopment was completed in June of 2015 as a mixed-use apartment building. Out of 180 total apartments, 60 of these are the first micro units built in Philadelphia - an outstanding proof of concept. The micro units outpaced all other unit types during leasing. Managed by the Scully Company, Avenir is stabilized and slated to be a long term hold. See More: ,800 LUXURY APARTMENTS MICRO UNITS SQUARE FEET OF RETAIL SPACE 5

7 Shirt 259 Market Street Alterra acquired and combined 10 different addresses in the historic Old City neighborhood of Philadelphia to redevelop Shirt Corner. The building is anchored by CVS and Snap Kitchen retail tenants. The CVS Condominium was sold for $10MM. The building stabilize in Q4 '15 and Snap Kitchen opened January Alterra plans to continue to manage Snap Kitchen and the apartments. See More: 59 APARTMENTS 1 ST 2 NEW CONSTRUCTION RETAIL SPACES IN OLD CITY IN OVER A DECADE 6

8 1701 Arch Alterra acquired this 125,000 square foot office building in 2007 in partnership with Patron Capital. Over a few years, the building was emptied of all remaining office tenants, with the original intent to convert the building into an upscale Kimpton Hotel. With the downturn in the real estate market and the lack of debt financing available for hotel development, Alterra pivoted, recapitalized the deal, and instead successfully executed a conversion into upscale apartments with ground floor retail. The project included Historic Tax Credits and exceeded $40MM in total cost Arch is currently managed by APG Living, Alterra Property Group's in-house management company. See More: 125K % SQUARE FEET UPSCALE APARTMENTS OCCUPIED 7

9 Wharton Street Lofts Alterra acquired this 70,000 square foot former school in early The conversion yielded luxury apartments, an upscale gym tenant on the ground floor, and 37 onsite parking spaces. The building is fully stabilized and will be a long term hold. See More: 70K % SQUARE FEET LUXURY APARTMENTS OCCUPIED 8

10 Papermill Apartments In 2012, Alterra acquired 45 apartments in five adjacent buildings and a 20-space surface parking lot in the Old City neighborhood of Philadelphia. We completed cosmetic renovations, lowered expenses, and improved operations to bring the property to 95% occupancy and recapitalized the asset. Following recapitalization, we built a new 25,000 square foot building containing 20 apartments on the surface lot. The entire 65 unit property was 98% leased in December 2014 when it was sold at a multiple in excess of 4x on initial equity SOLD BUILDINGS UNITS FOR 4X INITIAL EQUITY 9

11 118 Lofts Alterra acquired this 18,000 square foot warehouse building in the Old City section of Philadelphia in late After obtaining zoning approval, the building was converted into residential apartments, a tenant gym, and a ground floor bar/restaurant. The project was financed with bank debt and Historic Tax Credit equity. After completion of construction, the building was sold. Equity multiple was 3x in less than 18 months. 18K 15 3X SQUARE FEET RESIDENTIAL UNITS MULTIPLE EQUITY 10

12 2424 E. York Alterra acquired this 90,000+ square foot warehouse in the Fishtown neighborhood of Philadelphia in March Over the next two years, it was completely redeveloped into a loft office building reaching 99% occupancy. A Historic Rehabilitation Tax Credit was also closed, adding additional value to the investment. The property was sold in December 2014 for $7.5MM. 90K+ 99% SOLD SQUARE FEET OCCUPIED FOR $7.5MM 11

13 TEAM Leo Addimando Co-founder and Managing Partner of Alterra Property Leo has over 10 years of experience in real estate investment, development, and management. Over the past decade, Leo has been involved in over $850MM of real estate investment or development projects ranging from multi-family, condominiums, office, industrial, and senior housing. In addition to experience with a diverse range of real estate product types, Leo has also invested in over 15 states, structured complex tax credit transactions, and overseen all aspects of numerous real estate development projects. Previously, Leo was an early employee of Orbitz.com, serving the company for three years in numerous business and corporate development capacities. Leo s largest accomplishment while at Orbitz was spearheading the development and implementation of a hotel platform and business that served as one of the key profitability drivers allowing Orbitz to complete a successful IPO in Before working at Orbitz, Leo worked as an Associate for the Boston Consulting Group in various management consulting capacities and across numerous industry groups. In addition, he was the co-founder of both a media start-up and an internet start-up. Leo has an MBA from the Harvard Business School and a B.A. in Economics and Political Science from the University of Michigan. Leo is a Board Member of the Preservation Alliance of Greater Philadelphia, the Philadelphia Building Industry Association (BIA), and the Old City District. He is a native of Center City Philadelphia and currently resides there with his wife and three children. Doug Jordan Co-Founder and Managing Partner of Alterra Property Group Prior to co-founding Alterra, Doug was Principal of Southwood Properties, a solely owned real estate investment firm targeting single family homes for rehabilitation and sale. Before founding Southwood, Doug spent three years as an Equity Research Analyst at Greenville Capital Management. He also served as a Legislative Aide to U.S. Senator James Jeffords and as an Analyst for Pedestal, Inc., an internet-based electronic mortgage trading platform. Doug holds an MBA from the Wharton School of the University of Pennsylvania and a B.A. from the University of Vermont. Doug serves on the Board of Trustees of the Shipley School and is past President of the Shipley Alumni Board. Doug and his wife live in Center City Philadelphia with their two young children. 12

14 TEAM Jeff Pustizzi Co-founder, General Counsel and Partner of Alterra Property Group Jeff s career in real estate and finance spans the better part of a decade, during which he has gained a wealth of experience from both the legal and the business sides of the industry. Jeff began his career as an attorney at the Philadelphia law firm of Stradley Ronon Stevens & Young, where he honed his skills in the areas of commercial real estate, finance, land use, and corporate transactions, including development, leasing, acquisitions, sales, historic tax credit transactions, and the representation of lenders and borrowers. Prior to forming Alterra, Jeff worked with real estate development firm 806 Capital LLC on a variety of development and investment transactions. With Alterra, he currently manages all aspects of legal, financing, due diligence, and operational matters for the company. Both as a developer/investor and an attorney, Jeff has been involved in hundreds of millions of dollars of real estate and financing transactions across a wide range of asset classes, including multi-family, condominiums, office, industrial, and student housing. Jeff received an MBA and a B.A. in Finance from Villanova University, and a law degree from the Villanova School of Law. Jeff is licensed to practice law in Pennsylvania and New Jersey. He currently resides in New Jersey with his wife and two children. 13