4/13/22 - Good meeting on 4/12. Awaiting feedback.

8/28/21 - FCP has been interested in this project for over a year and a half. They have had two lunches with Ahmet and Lyle trying to endear themselves for a first look. Since they will only play a pref equity or construction mezz role, it hasn't been until recently when some lenders would only consider a first trust structure to the construction loan that there was a potential for structured finance. I talked to Billy Herbert yesterday about the opportunity, the first trust structure considered and sent him the original package as well as the revised spreadsheet for a first trust. Since they know the site and Ahmet well, he hopes to have some indication of interest by the end of next week.

4/13/22 - Awaiting terms from a mezz/pref lender before revising term sheet

8/19/21 - Loan Amount: $90,500,000 / max 55% LTC / max 45% stabilized LTV Rate: 1 month LIBOR + 4.75% with a 0% LIBOR floor Application Fee: 75 bps GFD: 100 bps Term: 3+1+1 years Amortization: Interest only for first 3 years, then amortizing on 30 year basis during extension option periods Prepayment: Lockout for first 3 years, then open. Recourse: Non-recourse with typical carve-outs and environmental indemnity except for joint and several interest and carry guarantee and lien free completion guarantee. Guarantor will be subject to minimum NW and liquidity covenants that are TBD, but I would expect minimum liquidity to be at a minimum 10% of loan amount.

8/13/21 - Left VM to follow up

9/14/21 - Would look to syndicate a portion - would probably take $60M Pricing would be in the 250-275 bps range 75-100 bps fee 25% recourse 6M liquidity, $100M net worth 0% Floor

8/17/21 - Followed up with revised sources and uses based on a Fee Simple deal

8/25/21 - as a response to a call that Larry and I had with Eric Ekeroth on Friday Aug 20th, we got most all the additional info that he requested to him. Eric will not consider the deal if there is construction mezz, but will look favorably on pref equity, although his pricing will go up. He is interested as a first trust and gave the following potential terms (if there is no pref equity needed): loan amount $130MM. rate of T+250 bps (3.7% today), 1/2 point fee, 10 year total term (construction to perm), 3 years I/O

8/18/21 - not interested as a leasehold. I sent the first trust spreadsheet to them and they are analyzing this structure.

8/11/21 - Ideally they would like to see more true borrower cash equity in the deal, despite the senior debt being low LTV. They are being selective on construction at the moment generally, so are a pass on this one.

7/29/21 - Pass due to size and new client

8/24/21 - Too big

8/4/21 - pass as they don't like leasehold mortgages

8/4/21 - HSBC have had a very pessimistic view of global real estate. Are now recalibrating to stagger loan maturities. Have a lot of loans maturing in the next few years. This has shut down their ability to do bridge type loans. Are very focused internally with existing loans and are trying to push out these loans with extensions. Once they accomplish their objectives they will be better positioned to do a lot of new business including different asset types. Time horizon is 1st quarter 2022. Challenge with construction loans is that they need $ funded and income from the funded $ to help the balance sheet.

7/29/21 - No construction loan program

8/2/21 - they passed due to it being a leasehold and the fact that Aksoylu isn't an existing customer

8/3/21 - Pass - focused on existing portfolio

7/29/21 - No construction loan program

8/23/21 - Reviewed on a Fee Simple basis: Did some more work on this. View in market is that there are too many MPDUs here and the land cost is above market for more typical deals. We shall be a pass on this for this and don’t really see the developer doing these types of sites that often so worried they are not the local sharpshooter we typically seek out.

8/3/21 - Only pursuing more opportunistic construction pieces (mezz, pref, etc.)

8/3/21 - Pass - Not comfortable with the size of the transaction and new sponsorship for Regions

8/13/21 - The head of real estate said no to the Bethesda project because it is too large and they don't want to have to go find participants.

7/29/21 - No construction loan program

8/13/21 - Would need a minimum of completion guarantee. Institutional quality sponsor required - Elm Street Development, JBG etc. View sponsor as non-institutional developer which is a non-starter. They are not comfortable at all with the sponsorship and the guarantor.

7/29/21 - No construction loan program. They also max out at $60M

8/3/21 - Followed up

8/3/21 - Followed up

8/3/21 - Followed up