After going back and forth on term sheets, IDI decided to go in a different direction. They were teamed with Capital Source, and their pricing was L+14.50% going up to $75M total capital.

12/1/15 - Should hear preliminary feedback on indicative terms within the next week. They have the ability to structure their funds as pure mezzanine financing or preferred equity.

4/13/16 - Good call with Harris Neuberg, but timing might be an issue. They typically like to commit to the whole loan, sell off the A piece internallly, and retain the B note. They are currently investing out of their 4th fund which is a $1.4 billion fund, and are in the process of raising their 5th fund which is targeted to be north of $2.2 billion. Their 4th fund's allocation to construction at this point is just about filled, and they are yet to close on their first deals within the 5th fund. They like construction deals, and they prefer to do deals where they can hold a $20+ million mezzanine piece, and as such target total deal sizes north of $90 million. He said that on a blended rate, depending where the senior loans come in their pricing is typically in the LIBOR + 500's to low 600's. They tend to be more competitive in deals that involve heavy lift value-add, ground up construction, or bridge loans. He is going to circle up internally regarding the 5th fund status, and will be back to me as he personally likes the deal.

4/15/16 - Sent financial analysis, supplemental package, and waterfall distributions.

02/02/2016 - Perry was traveling late last week through today. He sent me an email saying he will have feedback over to us in the next day or so. ; 02/04/16 - Left voicemail to follow-up

4/12/16 - Passed - Could never get their team comfortable with the comps.

2/4/16 - Trading voicemails with Joe Achenbach, Director of Development.

02/02/16 - Left voicemail and sent email.

2/3/16 - Received voicemail that William is still traveling. He said he should be back in the office at the end of the week, and would like to touch base upon his return.

2/3/16 - Left voicemail, and sent follow-up email requesting a meeting

2/3/16 - Left voicemail for Spencer Garfield. Attempting to re-engage their group from a mezzanine standpoint versus the stretch-senior facility we initially discussed.

2/3/16 - Left message and sent follow-up email for Pat Keeley who covers DC from their headquarters.

02/02/16 - Left voicemail, awaiting feedback.

1/27/16 - Left voicemail and sent follow-up email to Kyle Gardner who covers DC for their group. Awaiting feedback.

01/20/16 - awaiting feedback

02/03/16 - Left voicemail, awaiting feedback

2/3/16 - Left additional voicemail requesting a meeting

1/20/16 - Passed - Woodbridge is too suburban for their funds.

12/2/15 - Passed - Not doing construction mezzanine/preferred equity at this time

1/27/16 - Passed - They have a core and an opportunistic bucket, but their opportunistic funds are targeting urban locations that are in transition.

01/25/16 - Passed - They prefer equity checks less than $20 million, and ideally projects less than 300 units. They were not able to get comfortable with the number of units.

1/27/16 - Passed - They are not pursuing joint-ventures with 3rd party developers at this time

1/15/16 - Passed - Targeting more urban locations

1/25/16 - Passed - He mentioned that they are getting quite nervous with where we are in the cycle, and with all of the multifamily product coming online in DC, he said it would be difficult for them to get comfortable with sufficient demand in Woodbridge. He had looked at a different development recently in Woodbridge, and as such had gone down and did a tour of the market. They have a prime in-fill location in the DC market that is in lease-up, and they are seeing some softness in the market versus where they thought they would be. As such, if they are seeing that in a more downtown/urban location, he thought it would be felt more pronounced in a more suburban location.

1/27/16 - Passed - They are not currently pursuing development deals at this time

2/1/16 - Passed - They are comfortable with a land basis of less than $20,000 per unit, and their mandate is really to invest in more urban infill locations within the beltway. While they acquired the Stonebridge Town Center, they do not really love Woodbridge, and that one was a stabilized asset when they acquired it, not a development deal.

1/20/16 - Passed - Location is too suburban for their funds.

1/27/16 - Passed - They currently do not have a bucket for residential development. From an equity side, they would look at value-add for residential.

1/15/16 - Passed as they have limited capital for construction at the moment

12/2/15 - Passed - not doing construction mezzanine outside of NYC. They target loans greater than $10 million.

1/21/16 - Passed - Do not have a bucket for ground-up construction. As well, for their mezzanine bucket, their maximum loan size is $10 million.

2/3/16 - Passed - While Jason initially liked the story behind the local private/public initiatives underway in Woodbridge, in the end he was unable to gain traction internally for ground up development in that market.

1/20/16 - Passed - "It is too ex-urban for where we are focused these days. We tend to be focused on more infill projects for our construction program. For example, we are doing a $160 mm construction loan in downtown Stamford, CT right now. We also have a $100 mm construction loan on the main street in Waltham, MA (inside the beltway)

2/4/16 - Passed - Unable to get traction internally due to location

1/18/16 - Passed - Do not have a bucket for ground-up construction at this time

01/20/16 - Passed - Was unable to get comfortable with the large number of units.

12/14/15 - Passed - They are running into an allocation issue for multifamily construction projects. They are closing on two deals before the end of the year, and those two projects have eaten into their current allocation. This could change if they receive some prepayment on other deals, but he is unable at this time to commit to a $13-$18 million facility to close by February.

01/15/16 - Passed - Had a 3.5 hour lunch on Wednesday to discuss the project, and it was initially well received by Rishi. Upon circling up internally, it appears that Carlyle had a bad experience in Prince William County with one of their prior funds, and as such he was unable to generate interest. He was not involved in the prior transaction, but said that the county came in when they were applying for their Certificate of Occupancy, and stated that numerous components were either not built to-code, or were not up to the standards that they required. As such, they had to rip out and redo a substantial amount of work which blew their budget and caused a significant delay to the project. Also mentioned that they tend to target between 100 - 250 units for suburban locations like Woodbridge, so it would likely also be tough from that standpoint as well.

1/27/16 - Passed - Do not have a bucket for construction mezzanine at this time. They are focused on income producing assets targeting mid-teens returns.

2/2/16 - Re-engaged Jason Miller from ACORE to see if they might have an interest in providing the gap financing rather than the senior note. He said they would likely want their last dollars in the deal around the same levels as where they came up with on the senior, so $75 million but may be able to stretch up to $80-81 million with the phase II land collateral. He just needs to circle up internally, and determine if their group has any interest in providing a land loan in Woodbridge, VA. For a mezzanine position going up that high in the stack, their capital would be priced between 12-13% and it would need to be 100% current pay. By my calculations, this would leave a shortfall of approximately $4,500,000.

01/20/2016 - The deal is gaining some momentum internally. Had a positive call with Ashley regarding the mezzanine position, and answered a number of questions regarding timing, term of ownership, Kettler's involvement, etc. She is circling up internally after our call, and will try to get us some additional feedback soon. She mentioned that they typically structure their funds with about half current pay and half accrual, and did mention that the head of their group was very familiar with the IDI Group Companies, and was interested in diving in a bit deeper. ; 01/27/16 - Their team is still reviewing the materials, and would like to get through them prior to having a call with IDI / Kettler.

1/18/16 - Passed - Uncomfortable with the leverage levels, and mentioned that from a sizing standpoint, this deal was just too small to get their team excited.

4/13/16 - Left voicemail

02/01/2016 - Passed - They were unable to get comfortable with the underwriting. Offers to speak with IDI and Kettler/Noell were offered on multiple occasions to no avail. They were underwriting to an average of $1.70 psf rents, and were using the trended operating expense budget and a 3% management fee. They were looking to be somewhere in the high 7% range from a debt yield standpoint, and were only comfortable going up to the low-mid $70 million's in proceeds.

4/12/16 - Sent Dan the initial email

4/11/16 - left voicemail for David