4/1/15 - Lft msg for Byron. 3/27/15 - They will come forward with a term sheet. Outstanding items for their green-light review are financials between Sponsorship (i.e., Fund VII ).

4/1/15 - Lft msg for Jason. 3/27/15 - Interested and engaged in UW. Need to understand path to entitlements.

4/1/15 - Peter sent financials to POC at HSBC for review. 3/19/15 - PW meeting with DC Head of Lending on 3.25.15 3/10/15 - They like the deal and can do the land and construction loan take out but are concerned about spending time on it if recourse is a non-starter for Carlyle. Apparently they have bid on some deals in the past with Carlyle only to loose them because of recourse. We believe they can be competitive on pricing and we know the guys in the DC Office very well. They would probably need 100% guarantee on the carry interest, completion guarantee and 20-25% repayment guarantee.

Awaiting response from Jim Lingberg

3/18/15 - Did not like the bridge land loan component. Trying to determine whether they can do the construction loan.

3/18/15 - Marti is reviewing and trying to figure out a structure that works. Concern is high to treat the land loan since yield maintenance may be too high and make their money too expensive. She also floated the idea of a mezz piece behind the CL. A conversion of the land loan to a CL is also in the works.

03/19/15 - Trading Voicemails

3/18/15 - Met with Brian and went over the transaction. He has a meeting with the CFO next week to discuss.

3/18/15 - One of the true land-only players on this list at the moment. The vertical portion for Karlin will be tough but they are very interested in the b-piece. They are reviewing land comps, building sales comps and leasing comps.

3/27/15 - Alice is working through deal structure internally. 3/18/15 - Alice (CEO) is reviewing with Team and we are going back and forth with Q/A. They are working it through UW and diving in. Can Carlyle provide some level of guarantee during the land loan. Can Carlyle\\\\\\\'s financial statement be presented during that time period to figure supplemental cash-flow. This would be beneficial to Preferred. Regarding the CL, they are fine with 65%. If this can be initially agreed upon, they will have their President come in and see the site.

3/12/15 - Spoke with their Structured Finance Group in LA and they are very interested in the land debt. Because they are not a fund and use the banks money their capital is very flexible. Could do a 1-year bridge, no recourse at L+950 /1000. There would most likely be yield maintenance up to one year. They can move quick and do partial releases but would need to be out before the demo began. Their big challenge is that they cannot be involved with construction. They are flexible on pre-pay.

Not doing construction loans but would consider mezzanine

3/16/15 - PASSED - Gary is reviewing internally and looking to hand off to relationship manager. Issue for them will be they are not putting out spec construction debt and non-recourse is a non-starter.

03/13/2015 - PASSED - They do not do spec development. Their fund group typically targets cash flowing assets in stable markets. They target 8% debt yields on multifamily, and 9.5% debt yields on office, retail, and industrial. Their sweet spot is $25 - $50 million.

3/27/15 - PASSED - Too difficult

3/12/15 - PASSED - No construction lending

3/10/15 - PASSED - No construction financing today

03/12/2015 - PASSED - While they are actively lending in New York, DC, Boston, San Francisco, and Los Angeles, they only have one office in New York that covers the entire country, and as such it makes it difficult for them to do construction loans on the West Coast. They have done them before, but likely would not be able to do a spec office development. They are able to do a lot of non-recourse financing, often up to 60-65% LTC, and once they get over $100M they tend to club their deals. They have a construction loan at the moment in Bethesda with Kettler, and another one on H Street (The whole foods project with JP Morgan and Insight Property Group as the Equity).

03/19/15 - PASSED - Not comfortable with spec office. Call with Roger, they tend to struggle with spec office loans in general, much less non-recourse spec office loans. He requested additional information on the area such as lease comps, land comps, etc. We sent those over, and he is reviewing. He likes the Mountain View market, and agrees that it is a market where speculative development could potentially be considered, albeit perhaps at partial recourse that burns off with leasing. He is continuing to review the deal, and will be back to us with any additional questions he has.

3/12/15 - PASSED - They are not doing a lot of construction debt right now. They are generally targeting stabilized transactions in excess of $25MM, either short term floating or longer term fixed rate.

3/19/15 - PASSED - Spoke with Jory. They just have long-term construction perm.

3/16/15 - PASSED - They credit committee had a meeting on the transaction today and they are a pass for the moment. Carlyle is a big customer of PNC\\\'s and they would love to do it if no other options exist for Carlyle but there are a number of hurdles: 1) PNC has done ZERO spec office except for a legacy client in DC prior the crash 2) No exposure to Mountain View, 3) they have not done much office construction since the economy came back 4) land loan is a non-starter.

3/23/15 - PASSED - Limited to focusing on multifamily construction debt right now

Deal is too small for them.

Have to pass as they are fully invested at the present time. Expect new funds the latter part of 2015.

3/16/15 - PASSED - They are passing for the moment but could get brought back in later for the A piece. They cannot take down un-entitled land - if they did assist with the B-piece and it was entitled, they would want at-least 50% recourse on the land. I pushed her on pricing for the A piece and she said there would be about 150-200 bps spread based on structuring (i.e., recourse, rate, term, etc). Need to get more insight from Joe Carter in DC.