Sophisticated, Structured Financing for Real Estate Deals Up to $10 Million

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1 Sophisticated, Structured Financing for Real Estate Deals Up to $10 Million

2 Partners Capital Solutions, Inc. ( PCS ) is a private portfolio capital provider founded by real estate experts to meet the financing needs of real estate professionals, quickly and efficiently. We focus on deals with total cost of $2.5 million to $10 million in the Western United States. Private Portfolio: we make our own decisions and invest directly from our own funds. Our private portfolio funds exceed $100 million. Lender & Equity Provider: we can provide both debt and equity financing. Real Estate Experts: our team has 100+ years experience across virtually all areas of real estate lending, investment, development, and asset management. Our Clients are experienced real estate investors and developers with a proven track record who are poised to capitalize on current market opportunities and don t have time to waste. They want a financing partner they can depend on for every deal, no matter how complex or timeconstrained. Complex Needs: real estate professionals who sometimes create deals more complicated other lenders can understand, and under deadlines tighter than other lenders can meet. We Create sophisticated, structured financing solutions, customized to meet our clients needs in each deal. We understand complicated transactions and, as our clients trusted advisors, identify optimal solutions for them to turn opportunity into profit. We commit and close quickly. Sophisticated, Structured Financing Solutions: we understand your business, assess your needs in the deal, and use our knowledge of the complete capital stack to structure real solutions for you. Trusted Advisors: we provide more than just financing. Our clients value us as trusted advisors that understand their businesses and help them structure the right capital solutions. Turn Opportunity into Profit: we provide certainty of execution and timing. We commit quickly, within days, and close quickly, usually in 3 weeks or less.

3 Overview PCS provides capital from $2.5 million to $10 million for real estate deals in the Western United States Capital Uses Bridge Loans Discounted Note Purchases Purchases of Individual Assets or Pools of REO Properties Distressed Asset Acquisitions Completion of Stalled Projects Equity Construction Loans High LTV Solutions Secured Revolving Lines of Credit Debtor in Possession Financing Tenant Improvements Mini-Perm Facilities Asset Types Single Family Residential Multi-Family Residential Luxury SFR s Mixed-Use Commercial Industrial Hotels/Hospitality Retail Office Medical Office Self Storage Mobile Home & RV Park

4 Sample Loan Terms Bridge Loans Property Types Project Types Collateral Loan Amount Loan to Cost (LTC) Residential, Retail, Industrial, Office, Medical Office, Mobile Home Park, RV Park, Marina, Self-Storage Distressed Asset/Note Acquisition; Transitional and Non-stabilized Assets; Discounted Notes; Debtor in Possession; Stalled Project Completion; Tenant Improvement First Trust Deeds Only $2.5 million - $10 million Up to 80% Interest Rate From 7.5% Term Up to 2 years Loan Fees From 2% Geography Western United States Construction Loans Property Types Project Types Collateral Loan Amount Loan to Cost (LTC) Interest Rate Term Loan Fees From 2% Geography Residential For Rent and For Sale, Commercial with Pre- Leasing Ground Up Construction; Stalled Project Completion; Build-to-Suit First Trust Deeds Only $2.5 million - $10 million Up to 80% Debt, Up to 95% Debt & Equity From 10%, can step down with occupancy Up to 2 years, with extension options available Western United States

5 Foreclosure Lines of Credit Sample Loan Terms Property Types Project Types Collateral Loan Amount Loan to Cost (LTC) Interest Rate Term Loan Fees Geography Single-Family Homes and Condominium Units. Other types may be considered based on your business plan, please call to discuss Buy, Fix & Flip; can be paired with Mini Perm longer-term financing for Buy & Hold First Trust Deeds Only $2.5 million - $10 million Typically 65% of total cost to make market ready; up to 80% on exception basis From 12% on outstanding loan balance, not committed line amount 1 year, with extension options available From 2%. Paid once on committed line amount. Then borrow, repay, and re-borrow funds with no loan fees on each property acquisition Western United States Mini Perms Property Types Project Types Collateral Loan Amount Loan to Cost (LTC) Income Producing Properties; Multiple Leased Single- Family Homes; Multi-Family Buildings Buy & Hold Foreclosed Homes; Cross-Collateralization of SFR Pools; can be paired with Foreclosure LOC to finance acquisition followed by longer-term financing First Trust Deeds Only $2.5 million - $10 million Up to 80% Interest Rate From 7.5% Term Loan Fees From 2% Geography 3 years, with up to two 1-year extension options Western United States

6 Hotel Bridge Loans Property Types Project Types Collateral Loan Amount Loan to Cost (LTC) Sample Loan Terms Limited Service, Select Service and Extended Stay Hotels. Midscale to Upper-Upscale Brands. Premium Brands and Well-Located Independent Properties preferred Acquisition and Repositioning First Trust Deeds Only $2.5 million - $10 million Up to 70% Interest Rate From 9.0% Term Loan Fees From 2% Geography Up to 2 years, with extension options available Top MSA s in the Western United States Luxury Single Family Residences Property Types Project Types Collateral Loan Amount Term Geography Non-Owner Occupied, Luxury Single-Family Residences Acquisition & Renovation; New Construction First Trust Deeds Only $1 million - $4 million 1 year, with 6-month extension option available Western United States Loan Programs R60 R70 R80 Loan to Cost (LTC) Up to 60% Up to 70% Up to 80% Interest Rate From 8.5% From 10.0% From 11.5% Loan Fees From 1.5% From 2.0% From 2.5% Personal Guarantee Completion Limited Completion - Full

7 Leveraged Verses Unleveraged Returns No Leverage 60% LTC 80% LTC Borrower purchases property $ 200,000 $ 200,000 $ 200,000 Improvements to make sale ready $ 20,000 $ 20,000 $ 20,000 Loan Amount $ 132,000 $ 176,000 Holding Cost (2) $ 5,970 $ 8,895 Total Cost $ 220,000 $ 225,970 $ 228,895 Typical Sale $ 275,000 $ 275,000 $ 275,000 Closing Costs $ 17,000 $ 17,000 $ 17,000 Net $ 258,000 $ 258,000 $ 258,000 Profit before tax $ 38,000 $ 32,030 $ 29,105 Profit % 13.8% 11.6% 10.6% Owner s Equity $ 220,000 $ 93,970 $ 52,895 Return on Equity 17.3% 34.1% 55.0% Annualized Return on Equity (1) 46.6% 92.0% 148.6% Notes: 1. Annualized Return on Equity based on total hold time average of 135 days for a portfolio turnover ratio of 2.7 turns per year. 2. Holding Costs include the amortized cost of the upfront loan fee. Interest paid assuming the loan is outstanding for 120 days (135 less 120 days is 15 days the maximum average days it takes to obtain clear title and title insurance) and the cost of inspection and reconveyance fees.

8 Management Team Gary Leff, Chief Executive Officer Gary has extensive expertise in real property operations, leasing, financing, management, construction, development, acquisitions and dispositions. He started out building single family homes, diversified into commercial properties, and over 40 years in the business he has built a portfolio that today owns or controls over 2 million square feet of commercial, industrial, and residential property, primarily in Southern California. Gary s real estate industry involvement has extended beyond development and financing into other related businesses, as co-founder of Execu-Data, Inc and as a founding investor in ARCS Commercial Mortgage LP. ARCS was one of the largest originators of FNMA multi-family loans and was acquired by PNC Bank. Mr. Leff received his bachelor s degree from California State University, Northridge. Michael L. Klein, Managing Director & Chief Operating Officer Mike has over 30-years experience in real estate finance, including 27-years as a banker managing commercial and real estate finance for local, regional, and money center financial institutions. He has originated, managed, worked out, or approved over $10 billion in real estate loans. He managed real estate loan production in the Western U.S. for Imperial Capital Bank, the establishment of de novo real estate activities in Southern California for Wachovia and ChinaTrust banks, and credit risk review on an international basis for Chase Manhattan Bank. He is Chairman of the Citizen s Advisory Committee coordinating development of the new Warner Center Specific Plan for Los Angeles and recently completed a 4-year term on the Executive Committee of the Building Industry Association of Los Angeles/Ventura. Mike has served as an Adjunct Professor at the Lloyd Grief Center for Entrepreneurial Studies at the University of Southern California. He holds a bachelor s degree in finance from California State University at Northridge and an MBA from the University of Southern California. Stanley J. Kafka, Managing Director Stan has more than 40 years of experience in the banking industry. Prior to joining PCS he was Executive Vice President for City National Bank s real estate division, responsible for providing a wide range of financial services to developers in target markets. He has originated, managed, worked out, or approved over $10 billion in real estate loans. Prior to City National, Stan was an area executive in charge of real estate loan administration at Union Bank, where he worked for 25 years. He also was president of StancoProperties, Inc., a Union Bank subsidiary that provided specialized real estate services. Stan serves on the Advisory Council and as membership committee chair of the University of Southern California s Lusk Center for Real Estate, and he is a member of the Casden Industry Advisory Council. An honors graduate of Pepperdine University s MBA program, Stan also holds bachelor s degrees in real estate and finance from the University of Southern California and is a graduate of the California Military Academy. He has earned several certificates in real estate and finance. Bruce Stein, Managing Director, Hospitality Bruce s 28-year tenure in real estate before joining PCS encompassed many sectors hospitality, office, multifamily, industrial, retail and single-family residential. He has managed commercial real estate portfolios in excess of $850 million, managed brokerage transactions in excess of $1 billion, executed financings in excess of $1.2 billion, raised over $200 million in equity and negotiated over $150 million in troubled loans. He oversaw the real estate department at Shamrock Capital Advisors, the private investment vehicle of the Roy E. Disney Family, where he raised and managed a $100 million fund that made leveraged investments in hotels. Bruce was co-manager of the Genesis LA Real Estate Fund, an $85 million fund that provided mezzanine financing and preferred equity. He also served as a Director of American Landmark Homes. Bruce earned a bachelor s degree from Oakland University and a master s degree from California State University, Northridge. He is a licensed California Real Estate Broker. For seven years, he was a Member of the Board of Directors of the Los Angeles Real Estate & Construction Industries Council for City of Hope.

9 Closed Transactions PCS financed completion of multi-unit project after the Builder s bank pulled out Client: Builder with 25 years experience building residential projects Project: 38 Detached Townhouse Units to Complete 52-Unit Project in San Gabriel Valley, CA Issue: a 15-year customer of a major bank was under construction for Phase 1 of a 4-phase project with a bank loan. Phase 1 sales were solid and Phase 2 was 50% complete, but the bank pulled out, leaving its long-term customer out of pocket for ongoing construction costs. PCS Solution: the Builder turned to PCS to finance for the remaining three phases of the project. Recognizing the Builder s expertise, the value of the project, and the urgency of the situation PCS acted quickly and closed the loan in just 15 business days. Financing: $6.0 million Multi-Phase Construction Loan PCS provided 75% LTC financing for a build-to-suit office building on a tight deadline Client: Builder with over 20 years experience building office and industrial park projects Project: Build-to-Suit Office Building in Cochise County, AZ Issue: an experienced Builder with a relationship bank had the opportunity to lease an office building to the U.S. Department of Interior, but only if he could meet their tight deadline. The Builder couldn t be certain his bank would close in time. PCS Solution: the Builder turned to PCS to be certain to lock in this deal. PCS provided 75% LTC financing based on the Builder s experience and the strength of the GSA lease, and closed the deal in under 3 weeks. The Builder selected PCS over bank offers at lower rates after weighing the benefit of locking in PCS funding to realize a significant profit vs. the modest additional interest cost. Financing: $3.8 million Construction Loan PCS provided a $2.2 million bridge loan to a strong client for an unusual purpose, a gas station and convenience store Client: a Multi-Site, Multi-State Operator with an excellent 10-year track record of growing its business with strong financial and operating fundamentals. Project: Repurchase equity interest in Shell gas station & convenience store in Newport, OR Issue: Site had been deemed clean in Phase 2 environmental report but a No Further Action letter had not yet been issued, which made institutional financing unavailable for this portion of a portfolio acquisition. PCS Solution: Although PCS rarely considers loans for special purpose real estate, such as gas stations, we did in this case because of our client s experience and track record. For the right clients we ll consider almost anything and find a way to make it work. Financing: $2.2 million Bridge Loan

10 Closed Transactions PCS provided developer a programmatic build-to-suit commitment to finance construction of stores for national retail tenant Client: Developer with 20 years experience in the retail space Project: Build-to-Suit for 5+ locations for a national discount retail store chain Issue: Developer wanted a one-stop shop to satisfy capital needs to ensure meeting growth demands of its high profile tenant PCS Solution: PCS has several borrowers with relationships with retail tenants that are expanding. We have provided committed capital with pre-agreed underwriting parameters so our clients can focus on finding sites, not worry about capital. LTC is as high as 90% and miniperms are available for as low as 7%. Financing: $12.5 million of debt and equity PCS funded construction of 6 single-family residences in a dense, trendy area of L.A. Client: up and coming in-fill Builder with cutting-edge LEED design and construction techniques Project: Construction of 6 single-family residences in Los Angeles, CA Issue: after months negotiating with multiple banks, Builder needed a commitment that the banks couldn t provide. PCS Solution: the client chose PCS because of our ability to understand his project, his preference for the way we work quickly and without bureaucracy, and his recognition of our value as mentors. Financing: $2.1 million Construction Loan PCS closed two $4 million back-to-back bridge loans to acquire and retire a discounted note on a 243-unit apartment building. Client: Two borrowers. One is a 30-year veteran in real estate investment and development, the other is a seasoned Operator of multiple apartment buildings. Project: Acquisition, sale and retirement of a discounted bank note on a 243-unit apartment building in Reno, NV Issue: Borrowers had 3-weeks to close a complicated, multi-borrower, multi-transaction deal prior to year-end. PCS Solution: As part of a two loan close, PCS financed the acquisition, sale and retirement of a discounted bank loan. PCS Borrower #1 acquired the note from a bank with PCS financing. Virtually concurrently, Borrower #1 negotiated a deal with Borrower #2 (the original obligor under the note) to sell the note to Borrower #2. Both borrowers choose PCS because of our ability to move quickly and structure financing that addressed each borrower s unique needs. Financing: Two $4.0 million back-to-back Bridge Loans

11 Closed Transactions PCS funded a land to construction loan for a retail project in 6 days, saving a deal when buyer s lender backed out 9 days before the closing. Client: Developer with 32-years experience in multiple asset types and running institutional funds. Project: Retail project that was 50% complete and 30% leased in Las Vegas, NV Issue: after buyer worked on a deal for 4 months with another lender, the lender backed out 9 days before closing. The institutional seller was furious and refused to extend the deadline. PCS Solution: the client spent 2 days calling around and was referred to PCS. PCS evaluated the client, the deal, and the project and committed and closed in 6 days, saving the deal. Financing: $1.1 million Land to Construction Loan PCS funded 10 deals with an opportunistic buyer who relies on PCS to finance his complex deals. Client: an accomplished, expert, opportunistic Buyer with deep experience in multiple product types Projects: 10 deals including apartment, broken condo, car wash, and a portfolio of quick lube centers Issue: the client wanted to focus on finding distressed assets and creating opportunities to profit from them. He wanted a capital provider to count on to solve his complex financing needs. PCS Solution: client keeps coming back to PCS as a reliable debt/equity partner that quickly understands his complex deals and offers sound advice in addition to a predictable, consistent and efficient process. Financing: $14.3 million including bridge notes, DNP loans, foreclosure LOCs PCS has provided over $60 million in Foreclosure Lines of Credit since being the first private lender to provide these lines to fix and flip professionals. PCS was first to market with its Line of Credit for professional operators that buy, renovate, and sell foreclosed & REO properties. We provide lines to some of the largest and most successful operators in the western United States. PCS structures each line of credit to meet the strategy of each borrower. Our borrower s strategies ranges from buying heavily distressed multi-family projects in the inner city, to very clean tract homes in the suburbs. Lines can be arranged with LTC ranging from 50 to 80% of the cost to make a property market ready.

12 Sophisticated, Structured Financing for Real Estate Deals Up to $10 Million PartnersCapitalSolutions.com Agoura Road, Suite 180 Calabasas, CA 91301