THE L M F J GRANDE HUB THE GRANARY DISTRICT SALT LAKE CITY, UT 2.162 ACRES

212 LIHTC UNITS

21,250 ft.2 COMMERCIAL

157,200 ft.2 LIHTC RESIDENTIAL

16.18% COMMERCIAL IRR

$50,305,104 $12,933,126 $17,987,921 TOTAL COST TOTAL EQUITY FROM TAX CREDIT SALE VALUE TO TAX CREDIT INVESTOR [credits + tax losses] SITE EVALUATION Once stagnant and in a state of urban decay, the Granary District is currently transforming into a flourishing area of Salt Lake City. Though its character was once defined by blue collar grit, the District is now mixed with creative ambitions and entrepreneurial energy. As its redevelopment potential is exposed, the District is rapidly changing from static surfaces of pavement and underutilized buildings to a dynamic space full of investment opportunities.

PROJECT PROPOSAL Based on market research, LMFJ proposes developing affordable housing under the LIHTC model [4% credits] ; a moderate sized, local pharmacy/grocery; and small-scale restaurant. With the current rapid growth and planned restoration projects, maintaining and preserving housing affordability throughout the Granary District must be imperative along with the provision of essential needs. The Granary District, Personal Photographs The basis of our development plan builds upon the vision of the Granary District — a thriving social hub of blue collar workers, entrepreneurs, and creatives who can live comfortably and actively contribute to its revitalization. LEGAL PROFILE

The site contains two separate parcels located along 900S and Rio Grande St. To feasibly develop the site, LMFJ proposes purchasing the entire block these parcels are within, and demolishing all existing structures. This entire property

Proposed BRT would need to be replatted into two lots; one adjacent to 900S for commercial Proposed BRT BicycleProposed Lane BRT use, and one on the south side of the block adjacent to Montague St. for Bicycle Lane RoadBicycle Infrastructure Lane Road Infrastructure BusRoad Routes Infrastructure residential use. This would simplify lending, property disposition and future Bus Routes Bus Routes ownership of each property, which is important given the 99 year restriction on Site the LIHTC property and the potential increased value of the commercial space. Site InterstateSite 15 Interstate 15 UTAInterstate Trax Line 15 UTA Trax Line RailUTA LineTrax Line Both lots are currently zoned General Commercial, and would need to be Rail Line Rail Line redesignated to the new zoning for the Fleet Block; known as “Form Based Resource Centers and Affordable Housing Urban Neighborhood-3” (FB-UN3). The new zoning would allow for expanded Resource Centers and AffordableResource Centers Housing and Affordable Housing Paxton 365 utilization of acreage given decreased setback requirements, an increase in Paxton 365 C9Paxton Flats 365 building height to 85 feet, and no restrictions on parking requirements. FB- C9 Flats ModaC9 Flats Granary Place Moda Granary Place Moda Granary Place UN3 also requires a commercial ground floor use along the face of 900S, which this proposal would provide in order to activate the street and solve the neighborhood’s lack of retail necessities. Rezoning the property would bring consistency to the District’s zoning, and supplement the City’s efforts.

Introduction Page 01 SITE PLAN TENANT PROFILES Residential Income: In compliance with HUD and IRS restrictions for LIHTC housing, all residents will be required to make less than or equal to 60% of Area Median Income Occupation: The tenant’s occupation would be consistent with existing demographics in the Granary District of blue-collar and service workers. As the District’s demographic changes, the LIHTC restriction will support income diversity in the neighborhood while allowing for low earning artisans and makers to live in this community. Transit: While most tenants will likely own a vehicle, it is likely some will not and most won’t own more than one. The 9-line trail, bike lanes, less than three block proximity to a UTA Trax Station, and nearby Jordan River Trail would appeal to many within this tenant profile.

Commercial Pharmacy/Market: The lack of service for basic needs in the neighborhood would be provided by this tenant. An ideal tenant for this property would be a small market that provides packaged goods, groceries and medication, such as a Walgreens, CVS or other national market chain. Given the moderate levels of existing traffic, this location may not yet appeal to these national players LIHTC DEMAND until the neighborhood further develops. If a national market chain is not yet interested, a local or regional operator that provides the same services would Multiple market sources (including CBRE, Marcus and Millichap, and Colliers) be the target tenant. have shown consistent rent growth year over year for the last decade. The average rent in Salt Lake City is around $1,200 per month, equating to $14,400 Restaurant: The rooftop restaurant tenant should serve as an affordable option per year. HUD recommends only 30% of an individual’s annual income to go to the residential tenants, a social place to create activity in the neighborhood, toward housing. To achieve this in Salt Lake City, the individual would need to and suitable for all ages/demographics. make $48,000 annually. Approximately 42% of residents in Salt Lake City make less than $50,000 annually, while about 9% of residents live below poverty PROJECTED INCOME levels. The combination of rent increases, low income residents and increase IRS Section 42 has set rental rates for restricted LIHTC properties. These in population growth present a need for low income housing. As the existing established rates for 2020 have been assumed for the project’s income. Area Granary District demographic transitions from blue-collar and service workers comparisons outside of downtown found commercial spaces between $20 and to its new image of makers and artisans, the annual income level is likely to $25/Sq. Ft. +NNN. This proposal sets rental rates at a competitive $20/Sq. Ft. remain at a similar level. for restaurant space and $23/Sq. Ft. for grocer/pharmacy space.

Community Page 02 SITE ACCESS EXPENSES Construction costs were derived from RS Means software and database of construction costs. In order to serve the market with low income housing, residential construction costs must be controlled. This will be achieved by using prefabricated wood wall panels, which lower costs by reducing waste and increasing efficiency using factory fabrication over on-site stick building.01 Other construction materials will also be prefabricated and prefinished, to reduce labor costs. Additionally, economy grade finishes, fixtures and appliances will be installed. Site landscaping will use local plants to accomplish a low water demand xeriscape. Some rainwater will be captured and diverted to the landscaping to eliminate the need for irrigation. Estimated operating expenses per unit are consistent with averages of over half a dozen Wasatch Front LIHTC properties. Due to utility allowance restrictions in LIHTC properties, the entire roof of the residential building will host commercial grade solar panels. A 49,000 Sq. Ft. (roof area) 500kW system will greatly offset, and nearly eliminate, average daily electrical consumption of apartment units.

PROGRAMMATIC SITE PLAN 01 LMFJ recognizes lumber prices have increased 73% year-over-year as of January 2021. Assuming this project won’t break ground until late 2021 at the earliest, it is assumed that lumber prices will normalize by the time of project material procurement.

SUSTAINABILITY • Prefabricated wood panels: renewable resource, less carbon footprint than steel or concrete, less waste when fabricated in factory, biodegradable • Recycled steel: sustainable recycled product for commercial space construction, residential siding and garage screen, recyclable product • Xeriscape and rainwater capture: use native plants, capture rainwater/ snowmelt and divert to landscaping before city stormwater system, eliminate need for irrigation system • Solar panels: decrease building carbon footprint by offsetting demand for energy produced by nonrenewable resources • Low flow fixtures • Economically efficient appliances

Sustainability Page 03 Commercial Pro Forma NOI Factor Annual DEVELOPMENT COSTS Revenue CAPITAL STACK Gross Potential Income $ 476,000 Less: Vacancy HARD COST ASSUMPTIONS5.00% (23,800) Development Costs Multifamily EffectiveCommercial Gross Income 452,200 Financing Assumptions

Land $75.00 per SF $ 4,811,100 $ 2,251,500 Hard Cost Inputs: Residential Commercial Approval Fees 0.5% of hard costs 150,430 14,031 Expenses Multifamily Hard Costs/SF $ 132.00 Total Project Cost $ 44,398,036 $ 5,907,068 Construction Hard Cost Varies by use per SF 30,086,000 2,806,275 Property ManagementParking Cost /SF 3.00% of EGI $ 43.00 13,566 Total Soft Costs 7.50% of hard costs 2,256,450 Controllable210,471 Costs Retail Hard Costs/SF 25.00% of EGI $ 92.20 113,050Equity 15,271,561 1,476,767 Contingency 8.00% of hard cost 2,406,880 Replacement224,502 ReserveRestaurant Hard Costs/SF$5,000 per year$ 291.50 5,000LIHTC Investor Equity 12,933,126 Total Development Cost before Interest, Dev Fee, and Operating Reserve $ 39,710,860 Total$ 5,506,779 Operating Expenses 131,616HUD Home Grant 750,000 Net Operating IncomeMARKET (NOI) COMPS $ 320,584Deferred Developer Fee 1,588,434 Developer Fee 8%/4% of total project cost 3,176,869 220,271 Total Development Cost before Interest and Operating Reserve $ 42,887,729 $ 5,727,050 Paxton 365 Debt 29,126,475 4,430,301 Floorplan Rent Avg. SF $/SF LTC 65.6% 75.0% Micro 919 452 2.04 Development CostsEstimate of Construction Interest Multifamily Commercial DSCR 1.15 1.22 Construction Loan $28,626,474 $4,640,358 Studio 1,029 568 1.81 Land $75.00 per SF $ 4,811,100 $ 2,251,500 Perm. Loan Principal 28,626,475 4,430,301 Approval Fees Construction Interest 0.5% of hard costs3.80% 150,430 14,031 1B1B 1,099 670 1.64 Construction Hard Cost Construction Period (months)Varies by use per SF 22 30,086,000 2,806,275 2B2B 1,399 976 1.43 Interest Rate 3.25% 3.50% Total Soft Costs Average Draw 7.50% of hard costs65.00% 2,256,450 210,471 Amortization 35 25 C9 Flats Estimated Construction Loan Interest 1,296,302 210,131 Mortgage Annual Debt Service 1,370,420 266,150 Contingency 8.00% of hard cost 2,406,880 224,502 Floorplan Rent Avg. SF $/SF Total DevelopmentTotal Cost Projectbefore Interest, Cost before Dev Fee, Operating and Operating Reserve Reserve $ 39,710,860 $ 5,506,779 $ 44,184,031 $ 5,937,181 1B1B 1,000 576 1.74 Olene Walker Fund Loan 500,000 1B1B 1,020 507 2.01 Interest Rate (OWFL) 1.00% DeveloperEstimate Fee of Operating Reserve 8%/4% of total project cost 3,176,869 220,271 Total Development Cost before Interest and Operating Reserve $ 42,887,729 $ 5,727,050 1B1B 1,210 742 1.63 Amortization (OWFL) 15 Gross Potential Rent (monthly) $234,747 $39,667 1B1B 1,210 720 1.68 OWFL Annual Debt Service 35,910 Estimate of Construction InterestLease-Up Period (months until stabilization) 7.1 3 2B2B 1,750 1021 1.71 Construction Loan Average Occupancy during$28,626,474 Lease-Up $4,640,358 65% 90% Total Annual Debt Service $ 1,406,330 $ 266,150 2B2B 1,750 1092 1.60 Construction InterestEstimated Rent during Lease-Up3.80% 1,078,271 107,100

Construction Period Estimated(months) Op. Expenses during22 Lease-Up 651,679 32,904 Moda Granary Place (LIHTC Deal) Average Draw NOI during Lease-Up 65.00% 426,592 74,196 Floorplan Rent Avg. SF $/SF Estimated Construction Loan Interest 1,296,302 210,131 Construction Interest during Lease-Up 640,597 44,083 Studio 857 563 1.52 Total Project Cost before Operating Reserve $ 44,184,031 $ 5,937,181 First-Year Operating Reserve Required 214,005 (30,113) 1B1B 916 646 1.42ANNUAL CASH FLOWS FOR COMMERCIAL Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Net Operating Income 325,344 330,202 340,108 350,311 360,820 371,645 382,794 394,278 Estimate of OperatingTotal Reserve Project Costs $ 44,398,036 $ 5,907,068 2B2B 1,094 972 1.13 Gross Potential Rent (monthly) $234,747 $39,667 Annual Debt Service (266,150) (266,150) (266,150) (266,150) (266,150) (266,150) (266,150) (266,150) Lease-Up Period (months until stabilization) 7.1 3 Average Occupancy during Lease-Up 65% 90% Pre-Tax Operating Cash Flow 59,194 64,052 73,958 84,161 94,671 105,495 116,644 128,128

Estimated Rent during Lease-Up 1,078,271 107,100 Taxes (see below) (24,319) (27,204) (31,555) (36,042) (40,671) (45,446) (50,371) (126,824) Estimated Op. Expenses during Lease-Up 651,679 32,904 NOI during Lease-Up 426,592 74,196 After-Tax Operating Cash Flow 34,876 36,848 42,403 48,119 53,999 60,049 66,273 1,304 Construction Interest during Lease-Up 640,597 LIHTC44,083 FEASIBILITY LIHTC - Available Equity Calculation After-Tax IRR First-Year Operating Reserve Required 214,005 (30,113) Equity $ (1,476,767) Total Project Costs $ 44,398,036 $ 5,907,068Low Income Housing Tax Credits are a subsidy to financeAfter-Tax less Operating ineligible Cash Flow items such as 34,876 land, 36,848soft costs 42,403 (other 48,119 than 53,999 60,049 66,273 Construction Budget $ 44,398,036 After-Tax Cash Flow from Sale 3,692,829 Total After-Tax Cash Flow $ (1,476,767) $ 34,876 $ 36,848 $ 42,403 $ 48,119 $ 53,999 $ 60,049 $ 3,759,103 Ineligible Items affordable 8,740,119 housing projects, where investors receive an design fees) and developer fee. If the property is located Eligible Basis 35,657,917 After-Tax IRR 16.18% annual reduction to their federal tax liability in exchange within a Qualified Census Tract (such as this property) or High-Cost Adjustment 130% Adjusted Eligible Basis for providing46,355,292 an equity investment in the development. Difficult Development Area, then the eligible basis can LIHTC - Available Equity Calculation Applicable Fraction 100% Construction Budget $ 44,398,036 Qualified Basis Tax 46,355,292Credit investors are typically the Limited Partner be increased by 30%. The basis is reduced based on the Ineligible Items 8,740,119 Eligible Basis Current 4% Rate 35,657,917 in the development3.10% and receive 99% ownership of the percent of units in the property that are rent restricted Credit Amount Per Year 1,437,014 High-Cost Adjustment 130% property. In most partnerships they claim the annual (100% of the units will be restricted in the Grande Hub). Adjusted Eligible BasisOver Ten Years 46,355,292 14,370,140 Applicable FractionCost Per Dollar of Tax Credit (Tax Credit Factor) 100% tax credit 0.9as well as the tax losses, while the General The current market rate for a 4% LIHTC credit is 3.1%. This Qualified Basis Total Equity 46,355,292 $ 12,933,126 Current 4% Rate 3.10% Partner typically receives the majority of the cash flow. gives the value of the credits the investors will receive. Credit Amount Per Year 1,437,014 Over Ten Years 14,370,140 The credits, and the amount investors are willing to The Tax Credit Factor (or syndication rate) changes with Cost Per Dollar of Tax Credit (Tax Credit Factor) 0.9 pay for them, are valued based on a variety of factors. the market, and is currently .9, which means investors Total Equity $ 12,933,126 The eligible basis is equal to the overall project costs will pay $0.90 for $1.00 in credits.

Affordability Page 04 Financing Assumptions

Residential Commercial Total Project Cost $ 44,398,036 $ 5,907,068 Area/Unit Rent/Month Total Unit Types No. of Units Limit Rent/SF (SF) Total SF /Unit Annual Equity 15,271,561 1,476,767 Multifamily: Studio - Restricted 20 60% AMI $1.85 500 10,000 $ 924 $ 221,760 LIHTC Investor Equity 12,933,126 1B/1B - Restricted 128 60% AMI $1.52 650 83,200 990 1,520,640 2B/2B - Restricted 64 60% AMI $1.19 1,000 64,000 1,188 912,384 HUD Home Grant 750,000 Potential Gross Income (PGI) 212 $ 1.41 742 157,200 $1,044 $2,654,784 Other Miscellaneous Revenue [a] 162,180 Deferred Developer Fee 1,588,434 Total PGI $2,816,964 Commercial: Debt 29,126,475 4,430,301 Total Commercial Rental Revenue [b] 2 $ 22.40 10,625 21,250 $39,667 $476,000 UNITS + RENTS [a] Other Misc. Revenue includes LIHTC Units Fees & Charges, Forfeited Deposits, and Internet UpgradesPRO FORMA LTC 65.6% 75.0% [b] Rent/SF calculated on an annual basis and Rent/Month calculated based on total space DSCR 1.15 1.22 Area/Unit Rent/Month Total Multifamily Pro Forma NOI Unit Types No. of Units Limit Rent/SF (SF) Total SF /Unit Annual Perm. Loan Principal 28,626,475 4,430,301 Factor Annual Multifamily: Interest Rate 3.25% 3.50% Revenue Studio - Restricted 20 60% AMI $1.85 500 10,000 $ 924 $ 221,760 Gross Potential Income $ 2,816,964 Less: Physical Vacancy 4.00% (112,679) 1B/1B - Restricted Amortization 128 60% AMI $1.52 35 650 83,20025 990 1,520,640 Less: Economic Vacancy 1.00% (28,170) 2B/2B - Restricted Mortgage Annual Debt64 Service60% AMI $1.19 1,370,4201,000 266,150 64,000 1,188 912,384 Effective Gross Income 2,676,116

Potential Gross Income (PGI) Olene Walker Fund Loan212 $ 1.41 500,000 742 157,200 $1,044 $2,654,784 Expenses Property Taxes $1,200 per unit 254,400 Other Miscellaneous Revenue [a] Interest Rate (OWFL) 1.00% 162,180 Total PGI $2,816,964 Property Management 4.00% of EGI 107,045 Amortization (OWFL) 15 Admin $270 per unit 57,240 Commercial: Maintenance $145 per unit 30,740 OWFL Annual Debt Service 35,910 Contract Services $190 per unit 40,280 Total Commercial Rental Revenue [b] 2 $ 22.40 10,625 21,250 $39,667 $476,000 Advertising/Marketing $65 per unit 13,780 [a] Other Misc. Revenue includesTotal LIHTC Annual Units Fees Debt & Charges, Service Forfeited Deposits, and$ Internet 1,406,330 Upgrades$ 266,150 Payroll $1,250 per unit 265,000 Turnover $100 per unit 21,200 [b] Rent/SF calculated on an annual basis and Rent/Month calculated based on total space Insurance $170 per unit 36,040 Utilities $1,100 per unit 233,200 Replacement Reserve $225 per unit 47,700 CASH FLOWS Multifamily Pro Forma NOI Total Operating Expenses 1,106,625 Net Operating Income (NOI) $ 1,569,491 ANNUAL CASH FLOWS FOR COMMERCIAL Year 1 Year Factor2 Year 3 Year 4 Year 5 AnnualYear 6 Year 7 Year 8 Net Operating IncomeRevenue 325,344 330,202 340,108 350,311 360,820 371,645 382,794 394,278 Gross Potential Income $ 2,816,964 Commercial Pro Forma NOI Annual Debt Service Less: Physical Vacancy (266,150) (266,150) (266,150) (266,150) (266,150) (266,150) (112,679) (266,150) (266,150) Factor Annual 4.00% Revenue Pre-Tax Operating CashLess: Flow Economic Vacancy 59,194 64,052 1.00% 73,958 84,161 94,671 105,495 (28,170) 116,644 128,128 Gross Potential Income $ 476,000 Less: Vacancy 5.00% (23,800) Taxes (see below) Effective Gross Income (24,319) (27,204) (31,555) (36,042) (40,671) (45,446) 2,676,116 (50,371) (126,824) Effective Gross Income 452,200

After-Tax OperatingExpenses Cash Flow 34,876 36,848 42,403 48,119 53,999 60,049 66,273 1,304 Property Taxes $1,200 per unit 254,400 Expenses After-Tax IRR Property Management 3.00% of EGI 13,566 Equity Property Management$ (1,476,767) 4.00% of EGI 107,045 Controllable Costs 25.00% of EGI 113,050 After-Tax Operating CashAdmin Flow 34,876 $270 36,848per unit 42,403 48,119 53,999 57,240 60,049 66,273 Replacement Reserve $5,000 per year 5,000 After-Tax Cash Flow from Sale 3,692,829 Total Operating Expenses 131,616 Total After-Tax Cash FlowMaintenance $ (1,476,767) $ 34,876 $ $145 36,848per$ unit 42,403 $ 48,119 $ 53,999 30,740$ 60,049 $ 3,759,103 Net Operating Income (NOI) $ 320,584 Contract Services $190 per unit 40,280 After-Tax IRR 16.18% Advertising/Marketing $65 per unit 13,780 Paxton 365 Floorplan Rent Avg. SF $/SF Payroll $1,250 per unit 265,000 Micro 919 452 2.04 RETURNS Turnover $100 per unit 21,200 Studio 1,029 568 1.81 Insurance $170 per unit 36,040 1B1B 1,099 670 1.64 Overall Investor Returns 2B2B 1,399 976 1.43 Utilities $1,100 per unit 233,200 Commercial Cash FlowReplacement & Disposition - After-Tax Reserve IRR 16.18% $225 per unit 47,700 C9 Flats + Floorplan Rent Avg. SF $/SF Multifamily &Total Commercial Operating Development Expenses Fees $ 3,397,140 1,106,625 1B1B 1,000 576 1.74 1B1B 1,020 507 2.01 + 1B1B 1,210 742 1.63 Multifamily DispositionNet Operating Upside at Year Income15 Exit [a] (NOI) $ 1,569,491 1B1B 1,210 720 1.68 [a] GP could pursue several exit strategies including LP buyout, sale 2B2B 1,750 1021 1.71 to 3rd party, or re-syndication. 2B2B 1,750 1092 1.60 Moda Granary Place (LIHTC Deal) Floorplan Rent Avg. SF $/SF Studio 857 563 1.52 1B1B 916 646 1.42 2B2B 1,094 972 1.13 Affordability Page 05