This document provides details on financing for a mixed-use development project called Renaissance City Center in Carson, CA. The development will include 150 residential units and 14,000 square feet of retail space. It is seeking a permanent loan and provides information on the developer, property details, market analysis, financial projections, and valuation to support the loan request.

1. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Renaissance Carson
Chris Chen, Matt Decoteau, Bob Seeds, Mandeep
Singh, Mitch Surowitz, Daniel Yang

2. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
OBJECTIVE: Secure Financing for Renaissance City Center
• Class A, Mixed-Use Apartment & Retail Property in Carson, CA
(Greater Los Angeles Area Suburban)
• Developed by Thomas Saffran & Associates
• Construction complete in 2 months.
• Stabilization: 6 to 12 Months
• 150 Residential Units & 14,000 SF Retail
FINANCING
• Permanent Loan
• 10 Year Term
The Deal

3. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Company Overview
Developer – Thomas Safran & Associates
 Specializes in aesthetically pleasing mixed-use, multi-family and
senior housing projects
 Developed numerous properties in the greater LA area including Orange
County, Riverside and Catalina Island.
 Won multiple developer awards

4. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonBorrower Credit & Financials
• Borrower has net worth of
$24.3M
• $6.8M in Carried Interest
Earnings (GP)
• $12.3M of Equity in Real
Estate Holdings

5. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Current Outlook
• Greater LA area is attractive for investors
 Low cap rates for Class A stabilized, suburban assets – 4.0% to 4.5%
• Majority of new construction in 25% of Area
 DTLA, MDR/Venice, Wilshire/Westlake, & LAX/Westchester
 Limited new construction in Carson  new build command higher
rate.
Economic Drivers
• Improvements in Employment (BP, Lakeshore Learning
Materials)
• Adjoining submarkets: Torrance, Redondo Beach, Hermosa
(Toyota, Honda, Torrance Memorial Medical Center,
Providence Life)
Market Overview

6. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Comparables
• Geographical Proximity, Amenity Package, Interior
Furnishings, and Square Footage
• “Large Box” Properties, Sublease Condos, Single-Family
Homes, and Townhouses
• Monthly Rent per SF: $1.21 to $3.25.
Property Name Address Distance (miles) Bed/Bath Rental SF Lease Term (Months) Monthly Rent Monthly Rent per SF
Carson, CA
Singly Family Home E 224th St 0.8 6 bd/2 bth 2149 12 $3,000.00 $1.40
Townhouse Unit 49 21901 Moneta Ave 1.2 3 bd/ 2 bth 1482 12 $2,500.00 $1.69
Apartment Unit # 36D 20526 Leapwood Ave 1.4 2 bd/ 1 bth 1150 12 $1,715.00 $1.49
Apartment Unit # 36C 20527 Leapwood Ave 1.4 2 bd/ 1 bth 1150 12 $1,815.00 $1.58
El Cordova 950 E. Del Amo 1.7 1 bd/ 1 bth 850 12 $1365 to $2760 $1.60 to $3.25
El Cordova 950 E. Del Amo 1.7 2bd / 1 bth 1100 12 $1625 to $2885 $1.48 to $2.62
Townhouse Unit 49 21901 Moneta Ave 1.2 3 bd/ 2 bth 1482 12 $2,500.00 $1.69
Dominguez Hills Village 17822 Woodbine Ct 3.3 3 bd/2.5 bth 1656 12 $2,600.00 $1.57
Dominguez Hills Village 17528 Nutwood Dr 3.3 3 bd/ 3bth + Loft 2436 12 $2,950.00 $1.21
Singly Family Home 17859 Alderwood Ct 3.4 3 bd/ 3 bth 1656 12 $2,650.00 $1.60
Townhouse 1262 Date Palm Dr 3.6 4 bd/ 3bth 1815 12 $2,800.00 $1.54
Torrance, CA Emerald Victoria 3553 Emerald St. 5.6 1bd / 1bth 720 12 $1,475.00 $2.05
(Class A) Emerald Victoria 3553 Emerald St. 5.6 2bd / 2bth 1115 12 $1,850.00 $1.66
Emerald Victoria 3553 Emerald St. 5.6 3bd/ 3bth 1325 12 $2,395.00 $1.81
Market Rental Rates

7. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Industry Analysis
-Residential (Carson)
• Carson has a relatively low vacancy rate – 2.7%
• Effective average rent is $1,106 per month with a year-
on-year change of 2.6%
• Lower-midrange rental market
Only 24.3% of housing units are renter-occupied
Median household income is $71,653 (compared with
$61,400 statewide)
35.8% of housing units were built from 1960-1969
• Location
Adjacent to a strip mall with newly renovated Ralphs
• Retirement community
13.8% are 65 and older, compared to 11.4% statewide

8. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Industry Analysis
– Retail Landscape
• Neighbors
 Carson Town Square
• South Bay Pavilion Mall (1 mi away)
 Target
 Sears
 JcPenney
 IKEA
 24 Hour Fitness

9. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonReal Estate Overview
• Mixed use facility located in Carson, CA
• Phase 1 – 86-unit senior affordable housing community
• Phase 2 – 150-unit market rate residential apartments, 14,000
sq. ft. commercial retail space

10. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonReal Estate
Neighborhood/Location
• Over 44 nearby
entertainment
and service
centers
• Good freeway
and public transit
access

11. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonReal Estate
Amenities
• Apartment Units:
 Gourmet Kitchens
 Granite Countertops
 European-style Cabinetry
 Stainless Steel Appliances
 In-home Washer/Dryer
 Private Patios/Balconies
• Community:
 Resort-style Pool/Spa
 Outdoor Fireside Lounge
 Fitness Studio with Instructor-
led Classes
 Billiards Lounge
 Game Room
 Business Center

12. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonCommunity Amenities

13. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonBusiness Plan
– Phase 1
• Completed April 2011
• Construction & leasing of 86 senior affordable housing units
• 14,000 square feet of commercial space
• Completed, stabilized, and operating
• Not part of the collateral for this loan

14. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonBusiness Plan
– Phase 2
• Expected completion July 2014
• Expected to take 6-12 additional months to lease up
• 150 market rate residential apartment units
• Additional 14,000 square feet of commercial space
• Two-level parking structure with 462 spaces

15. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Business Plan
– Phase 2 Apartments
• Modern, luxury apartments
• Average rent expected to be
$2.00 per sq ft
• Targeted to middle class
professionals and families
• Marketed as the “Official
Residence of the LA Galaxy”

16. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Apartments

17. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Business Plan
– Phase 2 Commercial
• “The Shops at the City
Center”
• 5 retail stores
• Two floor plan options
• Targeted toward similar
clientele as the apartment
tenants

18. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonCommercial Space
– Option 1

19. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonCommercial Space
– Option 2

20. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance CarsonPro-forma Analysis
Residential Apartment
• 150 units on three levels, NNN lease
Retail Space
• 14,000 square feet on the ground floor

21. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
• Task description
• Task description
• Task description
• Task description
• Task description
• Task description
Step 3
Title
Cash flow
analysis
• Determine the free cash flow of
both residential apartments and
retail space
Valuation Process
• Calculate the value of the whole
mixed-use project based on
proper methodology
Loan Structure
• Determine the appropriate loan
structure based off the valuation
and the net worth of the borrower

22. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Key Assumptions
Vacancy
• For the first year, vacancy rate of the residential apartment and retail
space is 50% and 25%, respectively
• In the following years, vacancy rate of residential apartment and
retail space is 5%
Expense
• All operating expenses are based on regional averages on comparable
buildings as a percentage of Gross Potential Rent

23. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Key Assumptions(Cont’d)
Economic Factors
• Rental Growth rate is 2% based on REIS research
TI/LC Plans
• No TI/LC plans since it’s a brand-new building
• However, paint and carpets need to be refreshed when the tenant rolls
out
Disposal Plans
• For calculation purpose, we assume the building will be sold at Year
10, and the valuation would be based on NOI of that year

24. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Key Numbers
Levered
IRR 9.91%
NPV $1,714,105
Average cash on cash 25.5%

25. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Valuation Process
• We use the formula: Value=NOI/Cap Rate to determine the
value of the property
• We use the second-year NOI as our basis since first-year NOI
doesn’t reach stability
• Based on CBRE research, the cap rate for residential
apartment in LA is 5% in average, and for retail is 6.5% in
average; Mixed cap rate for this property is 5.4%
• We determine the total value of this property is $36,434,430

26. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Sponsor Experience
Geographic
• 26% of sponsor's properties in LA area (% of total assets)
Property Type
• Almost all of sponsor's holdings are multi-family
Property Size
• Renaissance is 4x larger (in units) than next largest property owned
Business Plan
• Renaissance is first ground-up construction for sponsor

27. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Sponsor Financial Capacity
$24M Net
Worth
Leverage
(Assets/Equity)
of 2.0x
Have Equity in
ALL Properties
(Value > Debt)
$12.3M equity
in RE - $6.8M
in RE carry
interest
+ Illiquid: Almost
all assets are
RE
Renaissance is
largest
investment in
fund's history
Risky raw land
investments on
sponsor's books
Co-owners in
20 of 21 props-
Limited
Flexibility
(-)

28. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Loan Structure
Selection of Loan Structure
• Based on the past experiences and net worth of the borrow
• We decide to use LTV ratio as a constraint to loan amount
Loan Terms
• 75% LTV ratio, 1.25 DSCR ratio
• 4% interest rate
• 30 yrs amortization

29. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Conclusion
• Opportunity to finance a multifamily development
in an attractive market in LA
• Experienced Los Angeles based operator
• Net worth and liquidity justifies loan value

30. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
AppendixGrowth Rate 2% 2% 2% 2% 2% 2% 2% 2% 2%
Apartment Vacancy 50% 5% 5% 5% 5% 5% 5% 5% 5% 5%
Retail Vacancy 25% 5% 5% 5% 5% 5% 5% 5% 5% 5%
Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Income 0 1 2 3 4 5 6 7 8 9 10
Multifamily
Gross Potential Rent 3,506,388 3,576,516 3,648,046 3,721,007 3,795,427 3,871,336 3,948,762 4,027,738 4,108,292 4,190,458
Rent Revenue Collected 3,436,260 3,504,985 3,575,085 3,646,587 3,719,519 3,793,909 3,869,787 3,947,183 4,026,127 4,106,649
Losses to Vacancy -1,753,194 -178,826 -182,402 -186,050 -189,771 -193,567 -197,438 -201,387 -205,415 -209,523
Losses to Concessions -$27,934.00 -$27,934.00 -$27,934.00
Other Revenue 37,925 37,925 37,925 37,925 37,925 37,925 37,925 37,925 37,925 37,925
Effective Gross Rental Income 1,693,057 3,336,151 3,402,674 3,498,462 3,567,672 3,638,267 3,710,274 3,783,721 3,858,637 3,935,051
Retail
Gross Potential Leases 967,046 986,387 1,006,115 1,026,237 1,046,762 1,067,697 1,089,051 1,110,832 1,133,049 1,155,710
Lease Revenue Collected 947,705 966,660 985,993 1,005,713 1,025,827 1,046,343 1,067,270 1,088,616 1,110,388 1,132,596
Losses to Vacancy -241,762 -49,319 -50,306 -51,312 -52,338 -53,385 -54,453 -55,542 -56,652 -57,785
Losses to Concessions
Other Revenue
Effective Gross Lease Income 705,944 917,340 935,687 954,401 973,489 992,959 1,012,818 1,033,074 1,053,736 1,074,810
Gross Potential Income (Multi+Retail) 4,473,434 4,562,903 4,654,161 4,747,244 4,842,189 4,939,033 5,037,814 5,138,570 5,241,341 5,346,168
Effective Gross Income (Multi+Retail) 2,399,001 4,253,491 4,338,361 4,452,862 4,541,161 4,631,226 4,723,092 4,816,795 4,912,372 5,009,861
Expenses $/SF % of GPR
Salaries and Personel 1.42 12.90% 577,073 588,614 600,387 612,395 624,642 637,135 649,878 662,876 676,133 689,656
Insurance 0.29 3.00% 134,203 136,887 139,625 142,417 145,266 148,171 151,134 154,157 157,240 160,385
Taxes 0.71 6.50% 290,773 296,589 302,520 308,571 314,742 321,037 327,458 334,007 340,687 347,501
Utilities 0.7 6.40% 286,300 292,026 297,866 303,824 309,900 316,098 322,420 328,868 335,446 342,155
Management Fees 0.51 5.00% 223,672 228,145 232,708 237,362 242,109 246,952 251,891 256,928 262,067 267,308
Administrative 0.4 4.00% 178,937 182,516 186,166 189,890 193,688 197,561 201,513 205,543 209,654 213,847
Marketing 0.08 4.00% 178,937 182,516 186,166 189,890 193,688 197,561 201,513 205,543 209,654 213,847
Contract Services 0.45 4.10% 183,411 187,079 190,821 194,637 198,530 202,500 206,550 210,681 214,895 219,193
Repair and Maintenance 0.48 4.40% 196,831 200,768 204,783 208,879 213,056 217,317 221,664 226,097 230,619 235,231
Total Expenses 5.04 50.30% 2,250,138 2,295,140 2,341,043 2,387,864 2,435,621 2,484,334 2,534,020 2,584,701 2,636,395 2,689,123
Net Operating Income 148,864 1,958,351 1,997,318 2,064,998 2,105,540 2,146,892 2,189,071 2,232,094 2,275,978 2,320,739
Senior Loan Analysis
Interest Expense 1,085,359 1,064,835 1,043,489 1,021,290 998,203 974,193 949,222 923,252 896,244 868,155
Principal Payments 513,106 533,630 554,976 577,175 600,262 624,272 649,243 675,213 702,221 730,310
Total Debt Service 1,598,465 1,598,465 1,598,465 1,598,465 1,598,465 1,598,465 1,598,465 1,598,465 1,598,465 1,598,465
CFADS
TI / LC Expenditures 0 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400 14,400
Net Cash Flow -1,449,601 345,486 384,453 452,133 492,675 534,027 576,206 619,229 663,113 707,874
Acquisition / Disposition Analysis
Acquisition Equity Funding -9,300,457
Closing Costs -364,344
Disposition Profit 21,221,685
Total Cash Flow -9,664,802 -1,349,601 345,486 384,453 452,133 492,675 534,027 576,206 619,229 663,113 21,929,559
Cash on Cash Return -13.96% 3.57% 3.98% 4.68% 5.10% 5.53% 5.96% 6.41% 6.86% 226.90%
Discount R 8.0%
Levered Unlevered
IRR 9.91% 5.9%
NPV $1,714,105 $ -5,123,317.03
Average Cash on Cash 25.50% 16.4%
Unlevered Cash Flow Analysis
Acquisition $ -37,201,829.11
NOI $ 148,863.61 $ 1,943,950.62 $ 1,982,917.81 $ 2,050,598.35 $ 2,091,139.81 $ 2,132,492.11 $ 2,174,671.45 $ 2,217,694.38 $ 2,261,577.77 $ 2,306,338.82
Disposition $ 41,773,298.84
Unlevered Cash Flow $ -37,201,829.11 $ 148,863.61 $ 1,943,950.62 $ 1,982,917.81 $ 2,050,598.35 $ 2,091,139.81 $ 2,132,492.11 $ 2,174,671.45 $ 2,217,694.38 $ 2,261,577.77 $ 44,079,637.67
Cash on Cash Return 0.40% 5.23% 5.33% 5.51% 5.62% 5.73% 5.85% 5.96% 6.08% 118.49%

31. Renaissance Carson
21800 S. Avalon Blvd, Carson CA 90745
Renaissance Carson
Thank you!