The Bellyard $8,000,000 EB-5 Capital 165-room hotel in Atlanta, Georgia Estimated Closing: Q4 2019 The Bellyard (or the “Project”) is a proposed upper-upscale hotel to be operated under a franchise agreement with Marriott International, Inc. (“Marriott”) under their Tribute Portfolio brand. The Bellyard will be one element of The Interlock, a new mixed-use development offering technology office space, stylish storefronts, high-end residences, as well as the Project within the rapidly expanding West Midtown neighborhood of Atlanta, Georgia. The Project will be located just a few miles from Atlanta’s Downtown and Midtown central business districts, and less than one mile from the Georgia Institute of Technology (also known as Georgia Tech), which is a top-tanked public college and one of the leading research universities in the U.S. The Bellyard will feature 165 guestrooms, a signature restaurant and bar, 5,500 square feet of meeting/event space, a fitness center, an outdoor terrace with skyline views of Atlanta, and access to a variety of amenities that are part of The Interlock property, including a rooftop swimming pool, as well as the many restaurants, bars and retail shops located at The Interlock. The Bellyard will be located on The Interlock’s 3rd through the 10th floors, with elevator access from a street level porte-cochere to the 3rd floor lobby. The Project will also have 85 dedicated parking spaces within The Interlock’s secure, structured parking garage. The Bellyard will lease a podium space on The Interlock’s site for 99-years at a one-time fixed cost of $4,750,000 (or $28,788 per key), which is very competitive for a hotel in the market. TRIBUTE PORTFOLIO The Bellyard is being developed by Three P Partners, an innovative Atlanta-based firm that has experience developing boutique hospitality properties in the Southeast U.S. 1 The Interlock The Interlock is a mixed-use property currently under development in West Midtown Atlanta that will feature approximately 200,000 square feet of Class “T” (technology) office space, 100,000 square feet of premium retail/restaurant/bar space, the Bellyard hotel and 350 multiamily residential apartment units in an adjacent building. For additional information, please visit www.theinterlockatl.com. 85% of The Interlock’s office space has been preleased to Georgia Tech (www.GATech.edu) and WeWork (www.WeWork.com). A large fitness center tenant and a specialty grocer will occupy the property’s first two floors. Nearly 25% of the retail space has been pre-leased, with an additional 30% under negotiation. Notable retail tenants include several successful local and national restaurants: St. Germain Bakery (Atlanta, GA), Curry Up Now (San Francisco, CA), Velvet Taco (Houston, TX), Eight Sushi (Atlanta, GA), as well as a Chase Bank. In addition, Slater Hospitality, the developer of Atlanta’s hugely successful Ponce City Market, will be occupying the entire rooftop space where it will offer restaurants, bars, and a private club with swimming pool. The Interlock sits on the highly active corner of Howell Mill and 14th Street, which is surrounded by new and trendy restaurants, bars, retail shops and residential housing. The Interlock name comes from a historical marker down the street where four railroad lines converge—a vivid metaphor for the intersection of Southern culture, technology, living quarters and commerce. The master developer of The Interlock is S.J. Collins Enterprises, a seasoned retail shopping center developer with successful developments across the Southeast. They primarily focus on high-end grocery anchored centers, with extensive experience developing Whole Foods and Fresh Market grocery stores. They have already begun construction, which is expected to complete in 2020. 2 Marriott Tribute Portfolio Brand affiliation has become increasingly important to successful hotel operations. Accordingly, the competitive strengths and weaknesses of a particular brand can have a substantial impact on a property’s performance. The Project will operate under a franchise agreement with Marriott International, Inc. (“Marriott”) under their Tribute Portfolio hotel brand. This arrangement will give the Project access to Marriott’s central reservation system and loyal Marriott rewards network, called Marriott Bonvoy, which provides a significant advantage to a hotel operator. Marriott is one of the world’s largest hotel companies, franchising a broad portfolio of hotel brands with more than 6,900 properties through 30 brands in over 130 countries, as of September 2017. Tribute Portfolio hotels are a family of independent hotels drawn together by a sense of character, vibrant social scenes, and captivating design. Each Tribute Portfolio hotel has their own feel and vibe, with their own design and indivudal brand identity and is considered to be in the Premium class, competing with such brands as the Westin, Le Meridien, and Autograph Collection. The Tribute Portfolio brand caters to business and leisure travelers alike. The Tribute Portfolio brand has been growing rapidly, with 33 existing properties and nearly 45 properties in its development pipeline. Because of the independent nature of the brand, there is little commonality between their various properties as each is designed to be unique. This is considered an advantage among the discerning guests they hope to attract. 3 Location The Interlock will be located on the booming Howell Mill Road within West Midtown Atlanta, Georgia. The site is adjacent to numerous demand generators, including the Midtown and Downtown central business districts, Georgia Institute of Technology (Georgia Tech) and the Atlanta University Center (Spelman College, Morehouse College, Morehouse School of Medicine and Clark University), as well as numerous new and trendy restaurants, bars, retail shops and residential developments. According to the Atlanta Downtown Improvement District (ADID), a public-private-partnership focused on the urban core of Atlanta, there are over 8.0 million square feet of convention and event space in the urban core. ADID estimated that there were 15.7 million visitors to the urban core in 2017, including 4.0 million attending sporting events, 1.6 million attending conventions, 8.6 million visiting attractions, and 1.1 million attending concerts or shows. In addition, the broader Metro Atlanta received an estimated 51.0 million visitors annually and is ranked number 4 in the nation for meeting and events locations. < 4 miles to Buckhead CBD < 2 miles to Midtown CBD < 1 mile to Georgia Tech < 3 miles to Downtown CBD 4 Project Team Developer Three P Partners is an innovative full-service development company with the mission to identify, select, and produce hospitality and other real estate ventures. They are proficient at identifying off-market deals and properties where added value is immediate, in addition to traditional brokered and incentivized deals with real estate professionals. The firm was founded by Roger Patterson, Matthew White, and Stephen Polhill. Roger Patterson founded a successful parking company in Atlanta which he sold in 2015 to pursue a passion for real estate. Matthew White brings construction experience as a licensed general contractor, and Stephen Polhill brings financial and accounting experience as a licensed CPA. Their track record includes three hotels, including a Hyatt House in downtown Atlanta (showing local knowledge and experience), Hotel Bella Grace in historic downtown Charleston, South Carolina, Hotel Indigo in downtown Memphis, Tennessee. www.threeppartners.com Hotel Operator Davidson Hotels & Resorts is one of the largest privately held hotel management companies in the lodging industry specializing in upper-upscale and luxury properties. They have been in business for over 40 years and manage over 30 hotels across 22 states, with 7 additional hotels in the pipeline. Headquartered in Atlanta, they currently manage several hotels in the area, showing local experience and knowledge. www.davidsonhotels.com General Contractor Armada Hoffler Construction is a general contractor with a longstanding reputation for building high-quality commercial real estate in the Mid-Atlantic and beyond. The Company offers general contracting, design-build, and preconstruction services and has extensive experience building projects of all sizes and levels of complexity across a wide range of product types. The Armada Hoffler Construction Company was founded by Daniel A. Hoffler in 1982. www.armadahofflerconstruction.com Architect / Design Wakefield Beasley & Associates is an architectural design firm with offices in Atlanta, Jacksonville, Orlando, Dallas, and Charleston. They have designed buildings in a variety of states and across asset classes, including hospitality, higher education, multifamily, mixed-use, seniors living, office, and many others. www.wakefieldbeasley.com 5 The Interlock’s Site Plan 6 The Bellyard’s Floorplans Lobby Level Floorplan Outdoor Terrace Restaurant & Lounge Outdoor Atrium Meeting/Event Space Kitchen 7 Typical Room Level Floorplan Unit Mix Room Type Quantity % of Total Double Queen Guestrooms 72 44% King Guestrooms 86 52% Suites 7 4% Total 165 100% 8 Renderings 9 Competitive/Comparable Properties Smith Travel Research (STR) has identified 7 luxury and upper-upscale class hotels within the Midtown and Downtown Atlanta market area, all of which are located within 2.4 miles from the Project site. These hotels are comparable to the Project, with most of them built within the last 10 years.