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Date	09/22/2015
Greenwich Coverage
E-teaser Status
CA Status
IOM Status
Term Sheet Status
Categories	Term Sheets Received Executed Confidentiality Agreement Received Detailed Discussions Initial Discussions Groups that have Passed Uncategorized
Investment Criteria
Status for Deal Tracking Report (Most Recent Comment - Custom Comment )
12/08/2015 - They don't really like mezz debt behind them. As well, their market research team has flagged Southeast Fairfax and Northern Virginia as "Risk Rated Red / In Recession" due to all of the supply coming online. As such, he is sending the market study to their team to review as he is able to sometimes make the argument that certain submarkets may be the exception to the rule. In general, he said it would likely be an uphill battle, and if his market team is unable to get comfortable with the submarket then it is a non-starter. Assuming they get comfortable with it, they would likely have to underwrite to an 8% vacancy rate, and would come out in the low 60's as far as LTC. With recourse as low as 25%, they may be able to get to 65% LTC. Will be back to me after he has spoken with his market research team.

Insert Comment

DEAL TRACKING COMMENTS
Date	Comment
11/12/2015	Good initial call with Barry Musselman. He is very familiar with the Woodbridge market, and has done a number of deals in the DC area. He is diving into the package now, and will call me once he has had a chance to digest the information. He has never done a deal with IDI, but is familiar with them and their work. I mentioned we are trying to arrange site tours over the next 2 weeks, and he will be back to me after his initial review. -- duke
11/20/2015	Their bank is going through a policy change regarding their non-recourse loan underwriting standards, but that should be approved in December. Expecting to receive indicative terms the week of the 23rd based upon what he thinks will be approved at that time. -- duke
12/08/2015	12/3/15 - They don't really like mezz debt behind them. As well, their market research team has flagged Southeast Fairfax and Northern Virginia as "Risk Rated Red / In Recession" due to all of the supply coming online. As such, he is sending the market study to their team to review as he is able to sometimes make the argument that certain submarkets may be the exception to the rule. In general, he said it would likely be an uphill battle, and if his market team is unable to get comfortable with the submarket then it is a non-starter. Assuming they get comfortable with it, they would likely have to underwrite to an 8% vacancy rate, and would come out in the low 60's as far as LTC. With recourse as low as 25%, they may be able to get to 65% LTC. Will be back to me after he has spoken with his market research team. -- duke
12/14/2015	Call with Barry, he has not sat down with his market research team as of yet, but is planning to do so within the next day or so, and will try to be back to me with verbal terms by Wednesday. Regarding recourse financing, he asked if I could provide some framework as to the entity that would be signing on it. He wants to see if it would make a difference for them, and useful metrics would be Liquidity, Net Worth, Contingent Liabilities, and any stabilized cash flow. -- duke
12/17/2015	Passed - Spoke with Barry Musselman today, and their market research team has red-lined DC and suburban MD and VA as "high-risk" for residential multifamily construction. As such, he is not comfortable providing indicative terms at this time. -- duke

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