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TOTS Development Company

Join TOTS Development & St. John Properties in a joint venture for a luxury multifamily project in Ashburn, Virginia, offering high-end finishes, keyless entry, and modern amenities. Expected return over 20%.

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TOTS Development Company

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  1. TOTS Development Company • Joey Qi • JankaDurisovaCheng Ji • Doreen Liu Sherlock Zhou Zach Kayce Ashburn Crossing Loudoun County, Virginia

  2. Summary Statement Joint Venture TOTS Development & St. John Properties 200 units – Luxury garden-style multifamily project at the corner of Loudoun County Parkway and Gloucester Parkway in Ashburn, Virginia Expected return over 20%

  3. Location

  4. Upcoming Silver Line andGloucester Parkway Extension The Metrorail (Silver Line) will be extended into Loudoun County by 2018 Gloucester Parkway will be extended past the Redskins Park to connect with Route 28

  5. Market Study – Ruled Out Retail - Fierce competition from One Loudoun Office - High Vacancy Rate (16.9% - 19%) Flex/Industrial - High Vacancy Rate (14%) Oversupply (400,000SF under construction)

  6. Market Study – Demographics • According to the 2010 Census: • Household Income Chart: Potential Renters

  7. Market Study - Vacancy According to Cassidy Turley Multifamily Snapshot – Fourth Qtr. 2012 Apartment rents grew at a controlled rate of 3.1% in 2012

  8. Market Study - Demand Saddle Ridge Ashborough • Existing competitors: Ashburn Meadows ParcDulles Apartment Ashborough Saddle Ridge Village at Potomac Falls • No new construction in our immediate market Village at Potomac Falls Ashburn Meadows Parc Dulles Apartment

  9. Improvement – Budget Total development cost $ 38,396,050

  10. Improvement – Unit Mix • Improvements: Total GBA : 250,025 SF Total Net Rentable:200,000 SF Total Units:200 units Average Unit Size:1,000 SF • Unit Mix:

  11. Improvement – Details • Exterior: • 1stFloor – Concrete; 2nd & 3rd Floor –Wood • Brick & Wood Facade • Interior: • High-end interior finishes • Granitecountertops, shaker inspired cabinetry, Italian porcelain tiles, chef kitchen sinks, Africanhickory hardwood, marble countertops in the bathrooms • Keylessentry system to enter your apartment home • Common Areas: • Clubhouse- a study area/computer lounge, fitness center, pool, resident lounge, Wi-Fi,party roomfor rent

  12. Timeline • Timeline Begin:June 2013 Construction period:24 months Lease-up period:12 months

  13. Development Team Major Participants Team Sr. Developer Sr. Developer Lender Equity Partner Architecture Sr. Financial Analyst Project Manager Construction Management Company Legal Consultant Lead Architect Lead Engineer

  14. Return St. Johns Contribution $ 3,250,000 IRR with Reversion (2022) = 20%

  15. Sensitivity Analysis Variables: 1- Market Rent 2- Vacancy 3- Cap Rate

  16. Risk • Market Risk • Increases with potential oversupply of competitive properties with the Silver Line coming on board • Interest Rate Risk • Interest rate increases resulting in higher Capitalization Rate • Inflation Risk • Operating expenses inflate higher than rental rates

  17. Recommendation JV with TOTS Development 10 acres at $3,250,000 8 Pref – 55% Cash Flow Split – 45% Reversion Split IRR 20% in 2022

  18. Contact Information TOTS Development 1625 Massachusetts Avenue Washington, DC 20002 (703)-203-1128 ashcrossing@tots.com

  19. Questions & Comments

  20. Slides Reference 1- Intro 2- Summary Statement 3- Location 4- Metro + Route 28 Ext. 5-8 – Market Study 9-11- Improvements 12- Timeline 13- Development Team 14- Return 15- Sensitivity Analysis 16- Risk 17- Recommendation

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