Strategy Drivers and Portfolio Construction

Strategy Drivers and Portfolio Construction Urban Development / Redevelopment ■ Acquire sites in up-and-coming urban areas, develop lease-up residential or commercial projects with opportunistic return profile ■ Acquire existing property and redevelop under 'substantial improvement' criteria ■ Limited re-entitlement and pre-development ■ Target Loan-to-cost ratio of 55-65% 'Original Use' Acquisitions ■ Acquire nearly-complete projects before they are put into service, qualify under 'original use' criteria ■ Trading lower initial yield for mitigated development risk and shorter timeline to stabilization ■ Target Loan-to-cost ratio of 60-75% Suburban Development / Multi and SF Rental ■ Acquire parcels to develop single-family rental subdivisions in larger residential master plans or purpose-built B2R communities ■ Develop suburban garden-style multifamily apartments and 'necessity retail' ■ Target Loan-to-cost ratio of 55-65% Covered Land / Re-Entitlement ■ Acquire sites in up-and-coming locations with re- entitlement potential, install improvements to qualify existing building under "substantial improvement" criteria, and use income for carry costs ■ Re-entitle properties over 5-8 year period while cash- flowing, sell to next buyer at substantial gain ■ Target Loan-to-cost ratio of 30-40% 15 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0071207 SDNY_GM_00217391 EFTA01375652