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NeighborWorks Conference The Balancing Act Jim Walker Managing Director ESIC Realty Partners

NeighborWorks Conference The Balancing Act Jim Walker Managing Director ESIC Realty Partners. June 2005. ESIC’s NMTC Structure. CDFI Fund US Dept of Treasury. Businesses (Real Estate). Investments & Loans. NMTC Allocation. Financial Counseling. ESIC New Markets Partners I&II

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NeighborWorks Conference The Balancing Act Jim Walker Managing Director ESIC Realty Partners

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  1. NeighborWorks Conference The Balancing Act Jim Walker Managing Director ESIC Realty Partners June 2005

  2. ESIC’s NMTC Structure CDFI Fund US Dept of Treasury Businesses (Real Estate) Investments & Loans NMTC Allocation Financial Counseling ESIC New Markets Partners I&II Limited Partnership (For-profit CDEs) Businesses & Residents of LICs Investments & Loans CDEs Businesses Returns, NMTCs, and Cash The Enterprise Communities Fund LP Purchase Loans CDEs ECDF-I

  3. Tivoli Square 115,000 SF Retail/Office Project Washington, DC

  4. Tivoli Square Current

  5. Tivoli Square Current

  6. Tivoli Square Proposed

  7. Senior Debt 75% LTV 5% fixed 30 year Amortization 1.9 DSC First Lien Secured Recourse Carve Outs Mezzanine Debt 90% LTV 9% preferred, 50/50 to 12% Interest Only 1.5 DSC Pledge of Partnership Interest Recourse Carve Outs Term Sheet

  8. Features • Mission • Median Income $37k, 52% AMI, 20% poverty • Renovation of a Neighborhood Retail/Cultural Center • Provide retail services to neighborhood residents • Anchor neighborhood redevelopment • Pre-leasing • 50% Rated Grocer • Significant National Retailers

  9. Features cont’d • Equity • 25% City • 5% Developers • Sponsorship • Experienced retail developer • Local CDC • Local Government

  10. Crosby Street Mercado 116,000 SF Neighborhood Retail Project San Diego, CA

  11. Crosby Street Mercado Proposed

  12. Senior Debt $10,700,00 30 year Amortization DSC 1.40x First lien Secured Recourse Carve Outs Operating and capital reserves Mezzanine Debt $2,300,000 9% preferred, 50/50 to 12% Interest Only DSC 1.20x Pledge of Partnership Interest Recourse Carve Outs Term Sheet

  13. Features • Mission • Family Income $21k, 40% AMI, 37% poverty, • Provides retail services to residents • Redevelopment of neighborhood • Pre-leasing • 30% Grocer • 13% Discount Department Store • 40% National and local retail merchants

  14. Features cont’d • Equity • 23% City Land Contribution • 3% Grants • Sponsorship • Experienced Retail Developer • Local CDC

  15. Summary Investing in Catalytic, High Impact Projects throughout the United States Use sound underwriting procedures to identify and appropriately mitigate risks Goal to facilitate community economic redevelopment and increase capital going to underserved neighborhoods while providing attractive returns to our investors

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