12/17/2015 - Terms Received - They would be prepared to lend $75,000,000 / 75% LTC / Max of 65% LTV (as stabilized). Their interest rate would be LIBOR + 625 bps with a 1% origination fee and a 1% exit fee. The term would be a 3 + 1 + 1 and would be a non-recourse loan except for Completion Guarantee and traditional bad boy carve-outs. They would require call protection through the initial term, and it would be Interest Only during the initial term and then 30 year amortization during the extension options. January 2016 - ACORE is also looking at this from a mezzanine standpoint, but would still want their last dollars in around the same level. They may be able to push proceeds up to $80 million if they were to use the phase II collateral. He was not sure whether or not their team would be interested in a land loan in that location, but said he would speak internally. As he was still not getting us to the full proceed levels, our efforts this past month have been around other groups.

12/08/2015 - Jason is aware of our timing. They would be comfortable holding $50 million on their books, and would likely top out at 65% LTC non-recourse. I have offered site tours and the opportunity to speak with IDI, Kettler, or Noell Consulting. He will be back to me before the 16th. He reached out for confirmation that the $14,070,000 is actual cash invested in the project. Patrick is putting together a schedule of the actual cash invested in the project in order for us to craft a response.

12/17/15 - Appraisal has been commissioned and is expected the first week in January. Ryan Segars has a meeting with Tony Marquez this afternoon to discuss Rivergate, and will try to get us a formal term sheet before he leaves for the holiday next week. Verbally, he mentioned that they are likely to be in the $65 million range on a non-recourse basis and the pricing would be in the LIBOR + 3.50% range with a floor rate of 4.75%. If supported by the appraisal, they can give credit for a higher land value and thus increased proceeds.

12/17/15 - Term sheet received. They would be 65% LTC and would be priced at L + 275 bps with 25% repayment guarantee. Upon completion and a 1.00x DSCR their rate would be reduced to L + 250 bps. They would have a 1% origination fee and the loan would be a 3, 1, 1, term loan with a 25 bps fee for each extension option exercised. They would likely require the additional phase II land to be held as collateral, and due to HVCRE, would require cash flow to be held in reserve rather than distributed until the loan is repaid.

3/1/16 - Left voicemail

12/16/15 - Shelved Until January - Their team is absorbed with year end closings, and does not have spare capacity at this time. He would like to pick up conversations after the new year.

12/09/2015 - Good conversation with Kevin Cullinan. They have a very flexible pocket of capital, and can invest anywhere within the capital stack. They can do equity, debt, mezzanine, or preferred equity, and also have a CMBS arm. One of their most competitive products is their stretch-senior loan, which could be a perfect fit for this project. They are very familiar with residential development projects, and the family has $3 billion of residential development going on at this time throughout the United States. They are currently closing a large residential condominium loan with the Related Companies in New York. He requested the market study, and will be back to me with further feedback this Friday. He suggested he may want to have a call with Kettler/IDI on Monday afternoon or Tuesday morning. 12/17/15 - Left multiple voicemails and have not heard back. Likely bogged down with year end closings.

12/1/15 - Unlikely to be a lead bank due to the size of this transaction. Would look to take a $20-35 million participation piece on this. Due to year end closings, they likely would not be able to take a tour and meet with the sponsor until after the new year. They are not very familiar with the market in Woodbridge, but know Kettler well and will review the market study.

11/20/15 - Not actively pursuing at this present time due to the union labor requirements.

12/9/15 - Attempted to contact multiple times, does not appear to be of interest.

12/17/15 - left multiple messages / voicemails and does not appear to be of interest.

Unresponsive / does not appear to be of interest

11/20/15 - Trading voicemails with Dan Maples. They would only look at this transaction as a construction-to-permanent loan. Leverage levels are also higher than they would offer as their funds typically top out at 65% LTC.

11/20/15 - Not actively pursuing at this present time due to the union labor requirements.

12/8/15 - Left voicemail to ensure he received the RFP email

3/1/16 - left voicemail

11/20/15 - Not actively pursuing at this present time due to the union labor requirements.

Initial feedback from Joe Carter is that they were uncomfortable with the proposed structure of the mezzanine and non-recourse. They are seeing several apartment deals on the market at this time with more equity and recourse.

Wanted to clear them by your team prior to engaging them

11/19/15 - Passed - While they are able to do stretch senior loans in downtown urban core locations, for a suburban location they would top out at 50-55% LTC. They also have a preference towards construction-to-permanent loans.

11/20/15 - Passed - Location a bit too suburban for them. Unable to gain traction internally on it.

11/19/2015 - Passed - Currently only lending for Class-A office/multifamily in downtown locations in NY, SF, LA, Chicago, and DC.

12/14/15 - Passed - Upon further review of their underwriting, they were unable to get comfortable with the projected rents, occupancies, absorption, and job growth in relation to the overall market, and where they would most likely be in terms pricing/proceeds, this deal would not be accretive enough for their Bank. Additionally they are not prepared to issue terms on this specific deal without a mezz group already in place that they have worked with in the past.

10/27/15 - Passed - Not lending on construction opportunities at present. Looking for more transitional cash flowing assets

12/17/15 - Passed - Unfamiliarity with the Woodbridge market, making it an uphill challenge to get internal approvals.

10/21/15 - Passed - Only focused on gateway cities such as NYC, DC, Boston and Chicago.

11/3/15 - Passed - Cigna no longer has a construction loan program.

11/24/15 - I received the following response from Chris: "Duke – We’re going to pass on this. Focusing our construction dollars on existing clients and/or closer to our core markets.." 12/1/15 - Left voicemail to follow up with Chris as they initially appeared to be a strong candidate. Our initial conversation indicated they could potentially get up to 65% LTC on a non-recourse basis, and he indicated that he liked the story behind the infrastructure being implemented down in Woodbridge.

11/5/15 - Passed - They are not doing vertical construction loans at this time

10/27/15 - Passed - They do not do multifamily construction loans other than to their top existing clients. Their loan targets are $50 - $200 million within the top 50 US markets plus major Canadian markets. Their target asset classes are office, Class-A retail malls, and hotels. For non-existing top clients, they would not consider renovation / heavy value-add loan.

11/5/15 - Passed - Current allocation to DC area construction loans is only $35 million at this time, and they already have projects on the books to fill their allocation.

12/15/15 - Passed - Their funds top out at $20 million, and they target downtown urban locations. Their funds are only for residential multifamily (apartments and condominiums), and they structure their funds as debt, but target a 20% IRR.

12/1/15 - Passed - While they do offer non-recourse construction loans up to 60% LTC with a minimum loan size of $50 million, this project is a bit too pioneering for their funds. Could potentially be a lender for Phase II after the surrounding area has more development activity.

Unlikely for the senior due to cost of capital, but could be a strong candidate for the mezzanine. Proposed meeting for next week in NYC.

10/22/15 - Passed - They have done a lot of construction loans this year, and as such are very selective about any additional construction projects at this time. They would struggle with the location, as it is a bit outside of their target area, and particularly with a new sponsor that they don't currently have a banking relationship with. They target construction loans upwards of $50 million, and do not typically lead them. As such this deal would be too small for them if we were to bring in a lead bank with them in tow.

11/20/15 - Passed - Not doing construction loans at this present time

11/20/2015 - Passed - They are focused in the downtown gateway cities

11/3/15 - Passed - Previous experience with IDI precludes them from doing this loan. Did not elaborate.

12/17/15 - 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.

12/17/15 - Passed - Their bar is set pretty high at this time for new construction deals, and he was not able to get comfortable with the market.

12/1/15 - Unlikely to be a player in the currently proposed structure due to two gating issues: 1) Their team does not know the IDI Group Companies; 2) Location is a bit pioneering for them. He said that they can typically get over one of those hurdles (i.e. great sponsor in a lesser known area, or great location with a lesser known sponsor), but it is difficult for him to gain traction internally with both of those issues. They do have a relationship with Kettler, and he may reach out to their contact over there to get some additional comfort. He did mention that if we were able to bring in a joint-venture equity partner that they are familiar with, that they would be interested in digging in further. Their proceeds would likely still top out at 60-65% LTC with 20% recourse, but would be priced in the mid 200's over libor.

12/1/15 - Their team has been bogged down with year end closings, and just wrapped up a few this past Monday. They are beginning to come up for air, and should be able to provide some initial feedback within the next week to 10 days. 12/09/15 - Trading voicemails.

10/27/15 - Passed - They have limited amounts of construction money at this time. They target $40-$50 million construction loans with a minimum term of 10 years. They primarily do permanent loans between $10 - $100+ million.