1. May 20, 2015

2. At the end of 2015, Waukeshaw will have attracted more than $75M to historic redevelopment projects in Virginia and North Carolina. All market-rate offerings when complete All done under the guidelines of the: Department of Historic Resources National Park Service

3. Right out of the gate, the odds are against small town development (sometimes for reasons you wouldn’t expect): Little or no market rate rent established/tested Appraisers are left shrugging Comps non-existent, or difficult to ‘normalize’ (this equity is important) “External Obsolescence” – you are penalized for being where you are Cap Rates are unreasonably high (small number, huge mover) Lenders are scarce, or scared – Speculative nature, esp biz Community bankers do not understand, or are unwilling, to consider tax credits as equity Limited knowledge in the local developer pool (tax credits are hard) Limited ‘Exit Opportunities’ – Non-recourse financing options, institutional Buyers

4. Leverage existing data in similar markets We use appraisals against appraisers Tell story of success in other similar markets Seek out-of-market, or sympathetic lenders (VHDA, VCC, LISC, HUD*) Lever whatever strengths exist for ideas and branding ops Create equity through partnerships with municipality Parking agreements Brick and mortar equity (building for $1) Grant conduits Backstops for commercial leases Special Structures (long term leases, for IRF for ex) EDA financing – all/partial Abatements Leverage existing data in similar markets We use appraisals against appraisers Tell story of success in other similar markets Seek out-of-market, or sympathetic lenders (VHDA, VCC, LISC, HUD*) Lever whatever strengths exist for ideas and branding ops Create equity through partnerships with municipality Parking agreements Brick and mortar equity (building for $1) Grant conduits Backstops for commercial leases Special Structures (long term leases, for IRF for ex) EDA financing – all/partial Abatements

6. $6M Investment 50 Market-Rate Apartments Retained auditorium for public use Completed in 2010

9. 220 Market-Rate Apartments $26M Total Investment 95% Occupancy Rate Completed in 2011

11. 25 Market-Rate Apartments $2.5M Total Investment 95% Occupancy Completed in 2011

13. SOUTHERN EXPRESS LOFTS PETERSBURG, VA Coffee Shop & 8 Market-Rate Apartments $1M Total Investment Completed in 2009 Coffee Shop & 8 Market-Rate Apartments $1M Total Investment Completed in 2009

14. Historic Tax Credits – State and Federal DHCD/Main Street Program Enterprise Zone Real Property Grant Bank Financing IRF GRANT Other city incentives Historic Tax Credits – State and Federal DHCD/Main Street Program Enterprise Zone Real Property Grant Bank Financing IRF GRANT Other city incentives

15. Asbestos in pipes and tilesLead-based paint suspectedComprehensive code-compliant renovationPreserving and highlighting historic featuresRehabilitating and restoring the exteriorFour commercial spaces on the ground floor1 ADA unit on the ground floor24 studio and one-bedroom units on upper floors

24.  (Brewery Finances Only):  Hard Cost, Building: $1.5M  Equipment Cost: $1.4M (some qualifying equip in here)  TOTAL: $3.1M, comprising... $2.2M Bank Financing $600K IRF funds, loan form 20 years, 2.5% Balance in HTC and Developer Equity  Tanks from Deutsche, Charlotte NC  State/Fed HTC syndication net: $700,000 $300K Overage used for Operational Startup

25. Buried and Unidentified Tanks Old Anhydrous Ammonia Tanks and Piping (Ex Ice Making) Trace Amounts of AsbestosLead

26.  Trapezium Brewing will be a 30BBL Brewhouse Goal of 1500 bbl in year one, 4000bbl in year 2 Total Capacity of Building: 40,000bbl annual  Tap Room will serve brick oven pizza, large open deck and patio area  Will accommodate Families and Children  Capitalize on Petersburg’s upswing: Tourism, film, growing residential base