Press Release and Media Advisory

Sherman Associates opens 50 high-quality, affordable housing apartments on East Colfax Avenue, Community 75% Occupied

Media Contact: Andrew Halverson Marketing and Communications Sherman Associates, Inc 612.332.3000 / 612.221.0334 cell [email protected]

Grand Opening, Media Event and Public Open House: May 23, 2012 3:00 p.m. – 6:00 p.m. (SPEAKING PROGRAM 3:20 p.m.) 7171 East Colfax Avenue Denver, CO 80220 www.sherman-assocites.com/phoenixonthefax - For Press Kit www.sherman-associates.com

Honored Speakers: MC –Hillarie Portell – Executive Director, The Fax Partnership George Sherman - Owner and Principal Developer, Sherman Associates Kelly Leid - Executive Director of Development Services, City of Denver Jamie Gomez – Chief Operating Officer, Colorado Housing Finance Authority (CHFA) Rick Garcia – Regional Director, U.S. Department of Housing and Urban Development (HUD) Councilwoman Mary Beth Susman Former Councilwoman Marcie Johnson

East Colfax Avenue, Denver, CO (May, 2012) - Sherman Associates was originally awarded a Tax Credit allocation for Phoenix on the Fax in 2009, in the midst of the largest economic downturn since the great depression. Banks ceased lending and the housing development market came to a virtual standstill. Even in these hard economic times, Sherman Associates held fast to one of the key elements of its company mantra: Never Give Up. Sherman Associates worked hard and was able to bring together the right lending partners to make its commitment to the redevelopment of the East Colfax area a reality.

Sherman Associates closed on the final financing package for Phoenix on the Fax in February of 2011, and began the 10-month construction period. Residents began occupying the building in January of this year and to this date the project is nearly full.

Located on the former home of the Pillar of Fire Church, Phoenix on the Fax rises high as one of the corridor’s first housing redevelopment projects. With its high-quality construction and modern design, Phoenix on the Fax is now and will continue for years to be an important part of the redevelopment of the East Colfax community and further proof of Sherman Associates’ continued dedication to urban renewal and community development.

Phoenix on the Fax Development: Total Development Cost $10,518,923.00

Funding Sources: HUD Insured 1st Mortgage: $2,475,000.00 • Lender: Dougherty Mortgage LLC Federal Low Income Housing Tax Credits: $6,089,915.00 • Syndicator: RBC Capital Markets Denver Home Funds: $350,000.00 • Denver OED DOLA Home Funds: $237,500.00 •Colorado Department of Local Affairs TCAP Funds: $1,212,314.00 • Colorado Housing Finance Agency Other Sources: $154,194.00

The Tax Credit Program: Phoenix on the Fax is proudly part of the Low Income Housing Tax Credit program, also called Section 42 housing. Through this program housing developers are financially supplemented in return for following particular housing regulations. The most prominent of these are resident income limits and student regulations. In the case of Phoenix on the Fax, residents in 78% of the community must make less that 50% of the Area Median Income with an additional 12% making less than 30% and 10% allowed to make up to 60%. Additionally, rental rates must be below pre-determined rent limits which are set by CHFA on an annual basis. The funding available through these programs helps to provide stylish, high-quality housing to essential workers in the community making 30%, 50%, and 60% of the area AMI or less.

Sherman Associates, Inc. – Building Communities. Enriching Neighborhoods. Sherman Associates, Inc. is an award-winning firm specializing in design, construction and financing of quality commercial and housing properties in Minnesota, Wisconsin, Iowa, Missouri and California. Having earned a strong reputation for quality and follow-through, cities around the country have turned to Sherman Associates to pioneer redevelopment in their highest priority urban neighborhoods. In the process, Sherman Associates has become an industry leader in tax credit, affordable housing and tax increment financing projects. Such developments have been an outstanding success for the participating cities, investors, residents and businesses. Sherman Associates has developed approximately 600,000 square feet of commercial property and 6,500 multifamily, townhouse and single-family homes. With over 30 years of development and construction experience, Sherman Associates is able to offer a diverse range of services in the commercial, single-family and multifamily markets.