RIVERTOWN | 11.75 Acres of Detroit Waterfront Development Opportunity DEVELOP RIVERTOWN We Are Pleased to Extend to You These Detroit Development Opportunities

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DEVELOP RIVERTOWN

RIVERTOWN | 11.75 Acres of Detroit Waterfront Development Opportunity DEVELOP RIVERTOWN We are pleased to extend to you these Detroit development opportunities. EXECUTIVE SUMMARY

Detroit is experiencing an infow of corporate headquarters, tech start-ups, millennials and global investment. While corporate offces are relocating to downtown Detroit to attract and retain top-talent, Detroit’s genuine gritty culture is also drawing young, entrepreneurial talent, resulting in the single fastest growing tech hub in the state of Michigan. Annual employment has topped 30,000 positions for eight consecutive quarters, resulting in the lowest unemployment since 2001 and a stabilized population on the verge of growth for the frst time in a half century.

Simultaneously, the City has right-sized its operations through the course of the bankruptcy proceedings, resulting in more streamlined civic planning and management. As a Detroit bond insurer, Syncora Guarantee acquired the development rights to Rivertown land through the bankruptcy settlement. Witnessing the beginning of the Detroit recovery frst hand, Syncora pursued the development rights for two large land holdings in the Rivertown district, Chene at 8.9 acres and Atwater at 2.75 acres, as part of its settlement package with the City. Today, Syncora is looking to partner with a developer(s) to lead the development of the Rivertown options.

The Chene option is made of 2 adjacent lots and has potential for more than 1.8 million square feet of development, spanning from the riverfront views of Atwater street to the primary traffc artery of Jefferson Avenue. The Atwater option is a 2.75 acre lot, representing over 400,000 square feet of development, a 6-minute walk to the GM Renaissance center and has riverfront views along Atwater and is adjacent to Milliken State Park. Chene and Atwater are a 10 and 20 minute walk to downtown, respectively, and ideal for developments that need a quieter berg with quick access to downtown Detroit.

Lead by S.O.M of NYC, the Rivertown parcels are the subject of a district wide planning effort that is calling for increased density, a comprehensive park and public transit strategy and run/bike paths, phase-1 work is scheduled for 2017. Rivertown development incentives are being coordinated with the planning effort as the City encourages higher density development along the river. Additionally, given the potential density of the sites, around 2.2 million square feet of mixed product, the City is willing to commit special project teams to support developer needs and ensure a successful development.

If your team is interested in further considering this development project, please contact Tom Waters at (517) 944-0630 or Mary Jane Constant at Maryjane. [email protected]. We are looking for a developer and investment partner(s) to work on these projects by March 31st. TABLE OF CONTENTS

WHY DETROIT RIVERFRONT SYNCORA THE DETROIT MARKET COMPANIES RELOCATING DOWNTOWN DEVELOPMENT ACTIVITY DETROIT | BEFORE & TODAY

THE RIVERTOWN OPPORTUNITIES CHENE | 9 Acres ATWATER | 2.75 Acres

PROJECT SUPPORT COMPANY AND CONTACTS DEVELOPMENT PARTNER NEXT STEPS WHY DETROIT RIVERFRONT?

Just east of the Renaissance Center, that houses GM’s headquarters and other businesses, the Detroit riverfront, known locally as Rivertown, is under going a district-wide redevelopment. The once heavily industrial area is the target for redevelopment into a world-class riverfront community, with the City providing master planning and both political and economic support.

Like many urban waterfronts across the country, Rivertown’s history is heavily industrial, supplying Detroit’s material and shipping needs through the last 150 years. The bars and restaurants that serviced the Rivertown workers provided a rich cultural fabric. Over the past 25 years Detroit has turned its attention toward keeping that culture, while relocating industry and replacing it with community.

Initially the Rivertown district was the anticipated site of Detroit’s casinos, but with casinos choosing different sites around Detroit rather than a single district, Rivertown is being planned as a high-density mix of old and new buildings that pay homage to Detroit’s storied and blue collar history. With the major industrial operations relocated and the former facilities razed, the Detroit Riverfront Conservancy started the transformation with the Detroit Riverwalk, making the waterfront a public resource. Next, the Downtown Detroit Partnership converted the below-grade railway, formerly used to transport local industrial supply, into a below-grade green-way known as the Dequindre cut. The Dequindre cut, connects Rivertown to the Riverwalk and other Detroit districts for runners, walkers and bikers.

Further east of Rivertown and connected by Riverwalk is Belle Isle, the former playground of both Detroit public and elites. The island, which boasted a zoo, conservancy, yacht club, golf course, beach, casino and nature reserve, had been left to ruin during the 90’s and into the recession. Through the course of the bankruptcy, Detroit returned the operation and control of Belle Isle to the State of Michigan. The Belle Isle restoration is well on its way to returning the island to former glory and becoming again a resource and destination for Detroiters. (Cont’d) WHY DETROIT RIVERFRONT? (CONT’D)

To begin repopulating Rivertown as a diverse, mixed-use community, Detroit partnered with developer Richard Baron to break ground on Orleans

Landing, a 267-unit multi-acre mixed use development, set to open in April of 2017. While Orleans Landing proved the demand for waterfront living,

Detroit hired S.O.M. of NYC to develop a district plan to help guide the dense, urban community that Detroiters envision. S.O.M., in collaboration with

City offcials, district property holders, developers, the Detroit Riverfront Conservancy and the larger Detroit community, have developed a master plan to standardize zoning/incentives, public transportation and a large district park strategy, all to guide the redevelopment of the Rivertown area. The district plan is expected to be made public in Q1 of 2017.

As a result of corporate headquarters, offces and millennials moving downtown, for the frst time since the 1950’s, the population has stabilized and is on the cusp of growth. With 16-year record low multi-family vacancies of 2-3%, the community needs places to live and work as the downtown community expands. Rivertown represents a unique opportunity as so many market forces converge simultaneously.

“Detroit’s long population decline slowed to its lowest pace in decades last year and some experts say next year’s numbers could show the frst signs of growth since the 1950s. ‘I’m very confdent that the city of Detroit is growing now and that will be refected in the next report...We’re at a historic tipping point.” Freep.com | “Duggan sees positive in Detroit population loss” SYNCORA & THE DETROIT BANKRUPTCY

Syncoras primary business is bond insurance. It was through insuring City debt and the recent Detroit RIVERTOWN SITES bankruptcy that they ultimately acquired the development rights to Detroit riverfront land. ATWATER SIZE | 2.75 Acres Witnessing the beginning of Detroit’s recovery frst hand, Syncora pursued land as part of its settlement TYPE | Contiguous land package. The option rights to the Rivertown land are in the form of a Development Agreement with the LOCATION(S) | City of Detroit, which can be provided as part of the due diligence package. 1303 E Atwater 1365 E Atwater 1364 Franklin To help create and realize the value from the riverfront opportunity, Syncora is looking to partner with 1340 Franklin 1310 Franklin a developer to lead the redevelopment of the Rivertown options. Syncora, who is not a developer, is 1399 E Atwater looking for a partner to create and execute a robust development plan for these rare urban-riverfront 1325 E Atwater 1370 Guoin St opportunities. Syncora is looking for a well qualifed development partner to develop the Rivertown area and ensure a successful Detroit recovery. CHENE SIZE | 8.9 Acres TYPE | 2 Adjacent Lots In addition to the Rivertown land, Syncora has additional operations throughout Detroit, which include LOCATION(S) | operating the Detroit-Windsor tunnel through wholly-owned subsidiary American Roads as well as 2310 E. Jefferson 2290 E. Jefferson development options for other city assets. Through those operations the Syncora team has established 301 Chene relationships throughout the City and community and can provide introductions and support where 281 Chene 2263 E. Atwater needed or desired. SYNCORA & THE DETROIT BANKRUPTCY

THE DEVELOPMENT AGREEMENT The bankruptcy settlement was fnalized in December of 2014. The settlement package included a Development Agreement, which provides development rights to 3 distinct Detroit properties including the 2 Rivertown properties, Chene and Atwater, as well as the former Detroit Police Head Quarters building.

The Development Agreements (D.A.) intended purpose is to encourage the redevelopment of the Rivertown area and ensure a quick and successful Detroit recovery. To encourage development, the D.A. represents a no-cost option with time restrictions and option expiration. The D.A. requires that upon taking title to each subject property, construction must start within 15-months and be completed within 39-months from the date of exercising the respective options. Each sites expiration corresponds to the respective size of development, with the Atwater option expiring December of 2018 and the Chene option expiring in December of 2021.

With timing as the primary restriction, the Development Agreement does not intend to limit or restrict the development as it relates to zoning, development/product type or economic incentives. The Development Agreement assigns rights to Pike Pointe Holdings, a subsidiary of Syncora Guarantee. THE DETROIT MARKET | ECONOMIC SUMMARY

MEDIAN INCOME (HH) MULTIFAMILY VACANCY RATES 8% US Average $70,000 Detroit Metro 6% $60,000

$50,000 4%

$40,000 Detroit 2% Vacancy Rates Vacancy Income per Year Income per $30,000 National “Vacancy in the Detroit metro 0% has fallen to the tightest rate in 97 01 05 09 13 17 12 13 14 15 16 16 years... A signifcant portion of the demand for rentals comes POPULATION & UNEMPLOYMENT CAP RATES: DETROIT CBD from job creation. Annualized 1 MM 20% 12% employment growth has topped more than 30,000 positions 750k 15% 9% for eight consecutive quarters, 6% dropping the unemployment rate 500k 10% Offce to the lowest level since 2001.” Hotel CAP Rates CAP Population 250k Population 5% 3% Unemployment Multi-family Unemployment Retail - Marcus and Millichap | Detroit 0 0% 0% Multifamily Market Report, Detroit 2000 2010 2011 2015 13 14 15 16 Metro Area, Fourth Quarter 2016 THE DETROIT MARKET | ECONOMIC SUMMARY

MULTIFAMILY DISTRICT RENTS RETAIL ASKING RENTS $3.00 100% $13.50 100% $2.50 $13.00 $2.00 $12.50 $1.50 75% $12.00 75% $1.00 Rent per SqFt

$11.50 Occupancy Rate Rent

Occupancy Rate $0.50

Asking Rent per SqFt $11.00 Occupancy 50% 50% 2007 2010 2013 2016 Midtown CorktownDowntown Rivertown New Center Eastern MarketLafayette Park OFFICE ASKING RENTS

$22 Rent 100% “Nearly all (multifamily buildings) are at functional full occupancy, Occupancy at 95 percent or more occupied. It is clear the rental market is

$20 extremely strong, and rents have increased signifcantly since the 75% 2010 update... only a very few units are available at any one time, $18 and several of the properties have waiting lists.” Occupancy Rate Asking Rent per SqFt $16 50% - ZIMMERMAN/VOLK “Update: Residential Market Potential for 2007 2010 2013 2016 Greater Downtown Detroit” THE DETROIT MARKET | HEAD QUARTERS MOVING BACK DOWNTOWN

As corporate offces are beginning to move back downtown to attract and retain top-talent, the effects are evident in the real estate market. Companies are quickly relocating headquarters, regional offces and technical centers to ensure they are competitive in todays business environment. Detroit’s genuine gritty culture, mixed with it’s new-found renaissance is drawing young, entrepreneurial talent downtown, and they’ve brought with them more than 25 tech start-ups, backed by more than $58 million in venture capital. As the single fastest growing tech hub in the state of Michigan, combined with corporate headquarters relocating REGIONAL LOCATION downtown, the thriving labor economy is quickly impacting the downtown Detroit real estate market. That result is 16-year multifamily vacancies lows of 2-3%.

*Proposed THE DETROIT MARKET | CURRENT DEVELOPMENT ACTIVITY

1 | JAMES SCOTT MANSION - Mixed Use - 27 apartment + Retail 2 | RED WINGS ARENA - 50 Block Mixed Use Development 3 | THE SCOTT - 199 Unit Premium Apartments, 200,000 sqft 4 | BRUSH PARK - 400 Unit Apartment community 5 | THE PLAZA - 72 Unit Apartment redevelopment 21 6 | STRATHMORE HOTEL - $28 MM renovation 7 | TIGER STADIUM - Mixed-use development and community center 6 5 8 | FOUNDATION HOTEL - 99 room boutique hotel 9 | BOOK TOWER - 517,000 sqft mixed-use renovation

Chene st. Atwater Brewery

DETROIT RIVERWALK MLS DETROIT (PROPOSED) DETROIT RIVER Woodbridge st. Belle Isle Aquarium Rivard Atwater st BELLE ISLE Belle Isle Conservatory CHENE PARCEL GREEKTOWN & 8.9 ACRES M1 RAIL CASINO DISTRICT PLANNED TRANSIT + STOPS Belle Isle Casino PEOPLE MOVER CHENE Outdoor Adventure Center AMPHITHEATER

Steve’s Soul Food

WOODWARD RFP DEVELOPMENT SITE (2017)

ORLEANS UNITED STATES 10 Minute Walk LANDING CANADA 1/2 Mile

ATWATER PARCEL GM Renaissance 2.7 ACRES Center GM MIXED USE DOWNTOWN & RIVERTOWN | AMENITIES & ACTIVITY DEVELOPMENT (PLANNED) The Chene option is made of 2 adjacent lots, spanning from the riverfront views of Atwater street to the primary traffc artery of Jefferson Ave. The Chene option is a 20-minute walk to the GM Renaissance center, and 5-minute walk to the Dequindre cut or the Detroit Riverwalk. Surrounded by so many amenities, the Chene option is ideal for a development seeking a quiet feel with quick access to downtown.

The Chene parcel fnds itself in the center of a district wide planning effort. The planning effort is calling for parks and run/bike paths as well as public transit stops to be installed adjacent to the parcels, with phase 1 work starting in 2017. The planning effort will also work to encourage higher density developments while relaxing the current parking space requirements.

To help support the higher densities that the City and community are hoping for, the City is creating a tax incentive reserve designed specifcally for Rivertown. Given the potential density of the site, around 1.8 million square feet of mixed product, the site is a priority for the City and willing to commit special project teams to support developer needs and ensure a successful development.

ACTIVE DUE DILIGENCE LOCATION ACRES ZONING FAR LEASE AVAILABLE

( TWO CONTIGUOUS 8.9 Special 4 NO Detroit Dev. Agreement PARCELS) Development Title 2310 E. Jefferson District, Survey 2290 E. Jefferson Riverfront Environmental 301 Chene Mixed-Use Phase 1 281 Chene Phase 2 2263 E. Atwater Market Studies Architect Massing Studies

CHENE | 9-ACRE DEVELOPMENT SITE The Atwater option is a 2.75 acre lot that is a 6-minute walk to the GM Renaissance center with unobstructed views along Atwater of the Detroit River and Miliken State Park. Atwater is a 20-minute walk to Campus Martius, the home of multiple corporate headquarters, and is the beating heart of Downtown Detroit. Adjacent to the Riverwalk and with such quick access to downtown, the Atwater option is a good location for developments that need a quieter berg with quick access to downtown Detroit.

The Atwater parcel is also a subject of the Rivertown district planning effort. The planning effort is calling for parks and run/bike paths as well as public transit stops to be installed adjacent to the parcels, with phase 1 work starting in 2017. The planning effort will also work to encourage higher density developments while relaxing the current parking space requirements.

To help support the higher densities that the City and community are hoping for, the City is creating a tax incentive reserve designed specifcally for Rivertown. Given the potential density of the site, around 400,000 square feet of mixed product, the site is a priority for the City and willing to commit special project teams to responding to developer needs and ensure a successful development.

ACTIVE DUE DILIGENCE LOCATION ACRES ZONING FAR LEASE AVAILABLE

(CONTIGUOUS PARCEL) 2.75 Special 4 YES Detroit Dev. Agreement 1303 E Atwater Development Title 1365 E Atwater District, Survey 1364 Franklin Riverfront Environmental 1340 Franklin Mixed-Use Phase 1 1310 Franklin Phase 2 1399 E Atwater Market Studies 1325 E Atwater Architect Massing Studies 1370 Guoin St

Both the Chene and Atwater sites have the potential for large and highly visible developments. City offcials recognize there are unique challenges associated with such large developments. In response, multiple government groups have voiced their commitment to support these developments in multiple ways. As Syncora has other operations in the City of Detroit, the team can make introductions or help support the development effort as much or as little is desired.

DISTRICT MASTER PLAN Lead by S.O.M. of NYC, the planning department and Riverfront Conservancy are fnalizing a master plan for the Rivertown district. This plan is intended to standardize the zoning and permitting process to reduce the burden on development. Additionally, public resources like parks, public transit, bike paths and public programming will be implemented to help fully support the district development.

INCENTIVES The City and community have a desire for high-density walkable neighborhoods but recognize there are fnancing gaps to achieving this. The City of Detroit and economic development groups are establishing incentive packages designed specifcally for the Rivertown district.

CITY SUPPORT Given the potential density of the sites, around 2.2 million square feet of mixed product, the site is a priority for the City. The City has offered to commit a dedicated city support team to respond to developer needs and ensure a successful development, similar to the new Red Wings Arena district. DEVELOPMENT PARTNER | DESIRED QUALITIES

DEVELOPER CONTROLS THE DEVELOPMENT The developer will control all development decisions, including tax incentives and project fnancing. Syncora is not a developer and is looking to act as a passive joint-venture partner.

EXPERIENCE & EXPERTISE The developer should be comfortable and able to develop large-scale, ground-up projects. Expertise should span multiple product types, allowing the developments to be whatever is best suited for the market.

EQUITY PARTNER Only developers that have the desire to participate as equity partners will be considered. Additionally, the developer must be willing to lead and secure the tax incentives and necessary fnancing.

ABILITY The partnering-developer must have the resources necessary to deliver developments of this scale, including organizational resources and fnancial capacity.

NEXT STEPS

IF INTERESTED DUE DILIGENCE Documents Available If your team is interested in further considering this development project, please contact the team below. We’ll schedule an introductory call and provide the due diligence package for your review. TITLE SURVEY ENVIRONMENTAL Tom Waters DEVELOPMENT AGREEMENT MARKET STUDIES [email protected] ARCHITECT MASSING & (517) 944-0630 CONCEPTS ZONING REVIEW

Mary Jane Constant [email protected]

TIMING We are looking for a developer and investment partner(s) to work on these projects by March 31st. DEVELOP RIVERTOWN

RIVERTOWN | 11.75 Acres of Detroit Waterfront Development Opportunity