21 East 26th Street, New York, NY 10010 PROJECT SUMMARY Gross Square Feet 35,280 Net Sellable Square Feet: Retail Units 6,700 Net Sellable Square Feet: Residential Units 21,441 Net Sellable Square Feet 28,141 LAND BASIS DETERMINATION Land/Improvement Basis $13,250,000 Total Land/Improvement Basis $13,250,000 FINANCING COSTS ( re-sale of units) Building & Project Loans 79% $25,671,303 Interest Rate 13.0% SOURCES OF FUNDS • re-sale of units Equity A (Lofts21 LLC) 21.4% $7,000,000 Project Loan Financing 3.7% $1,197,747 Building Loan Financing 74.9% $24,473,556 Total Sources of Funds 100% $32,671,303 SES OF FUNDS (pre-sale of units) Cost of Land & Improvements $13,250,000 Hard, Soft, Financing & Interest Costs $19,421,303 Total Project Costs $32,671,303 RESIDUAL VALUATION Retail Units Gross Sales $7,500,000 Unit #2-4 Residential Gross Sales $29,250,000 Penthouse Residential Sale (Projected) $22,000,000 Gross Sales $58,750,000 Sales Costs (Commissions, Legal, etc.) ($3,761,566) Net Sales $54,988,434 EFTA01188863 COSTS PAID OUT OF SALES Building & Project Loan - Remaining Interest & Exit Fees $1,624,931 Refinancing Costs $248,068 Jr. Loan (Remaining Balance) $72,922 General Contractor: Settlement Payments $549,626 General Contractor: Basement Requisition $152,451 Additional Hard & Soft Costs $2,806,090 Escrow: LULA Lift Elevator $73,138 Total Costs Paid Out of Sales $5,527,226 DISTRIBUTIONS Net Sales $54,988,434 Debt ($25,671,303) Costs Paid Out of Unit Sales ($5,527,226) Total Distributable Cash $23,789,905 Return of Equity A & B ($7,800,000) Developer's Fee ($225,000) Net Profit $15,764,905 Profit to Equity A & B - (75%) ($7,400,000) 11' Distribution to Advance Star - (25%) ($2,466,667) Subtotal of Distributable Cash $5,898,238 Additional Profit to Equity A ($1.4MM) ($1,400,000) rd Distribution to Advance Star ($4,498,238) Total 0 FT REAL ESTATE - CONTRIBUTIONS/DISTRIBUTIONS Contribution: Equity A (Lofts21 LLC) $220,500 Contribution: Advance Star $700,000 Total Contribution $920,500 Initial Return of Equity A $63,606 Return of Equity A $156,894 Distribution to Equity A $220,500 Add. Distribution to Equity A ($1.4MM) $44,100 Distribution to Advance Star $2.089,471 Total Distribution $2,574,571 Footnotes: Equity B Distribution is $800,000 on return of capital up to $400,000 of second distribution. Building & Project Loan includes interest reserve. Contingency is included in Costs Paid Out of Sales. EFTA01188864 21 East 26th Street - Projected Waterfall Initial Distribution 2/21/14 Distnbutable Cash Return of Equity - (Distribution on 11/1113) 100% &Investment plus El Distribution $ 2,250,000 12250.00 S Equity A (Lofts21) (2,019,231) Equay B (230.769! Projected Remaining Distributions Net Sale of Penthouse Additional Sponsor Contingency 8 Construction Reserve Remaining Return of Equity 700% orMvestmenterus a Distnburion Sub Total Distnbutable Cain Development Fee Profit (75i25) Additional Profit to Equity A Sub Total of Final Distributable Cash 22.000.000 (460.097) j5.550.000) Equity A (Lofts.21) (4.980,769) 15,9650,903 (225.000) (9,866,667) Equity B (569.231) I 1 Advance Star Distribution (25%) Equity A • B (75%) I I Equity A (Lofts21) Equity B S (4466,667) $ (7.000.000) S (400,000 (1.400.000) 4.498.236 -I Advance Star Distnbution S Note: S Distribution is 5800.000 on return of cepa/ up to $400.000 of second dostnbution (4.498,236) Totals Distributions Total Distributions: Equity A (Lotts21) Total Distributions: Equity B Total Distributions: Advance Star 15.400.000 1.200.000 6.964.903 EFTA01188865