A Urban Land Institute Case Study on The West End Project in the Vail Valley of Colorado. Developed by The Midtown Group

2. The West End – Vail Valley A world class development…someday

7. The West End – Pre-assembled Land 5.29 Total Acres

10. The West End – Site Plan Commercial Retail: 58,000 SF Office: 26,000 SF Residential Workforce: 72 DUs 115,000 SF Market Rate: 113 DUs 137,000 SF Total 336,000 GSF Rates (NNN) Retail: $40.00-$45.00 Office: $38.00 Residential Avg.: $575/SF Phase 1 (Buildings 1 & 3) Phase 2 (Building 2) Total Project Site: Approx 3.53 Acres Approx 1.76 Acres 5.29 Acres Commercial Retail Square Footage 44,000 GSF 14,000 GSF 58,000 GSF Retail Rental Rate $42.00 NNN $44.00 NNN $42.50 AVG Office Square Footage 26,000 GSF - 26,000 GSF Office Rental Rate $38.00 NNN - $38.00 NNN Residential Market Rate Units 55 58 113 Market Rate Avg. Pricing $733,000 Avg. Unit / $565 PSF $775,500 Avg. Unit / $625 PSF $755,000 Avg. Unit / $595 PSF Workforce Units 72 - 72 Workforce Avg. Pricing $325,000 Unit / $371 PSF (Includes Transfer Fee) - $325,000 Unit / $371 PSF

12. The West End – Development Cost Amount /Total Bldg SF LAND ACQUISTION COST $ 12,302,000 $ 36.61 CONSTRUCTION COSTS Construction Costs (IGMP Phased) $ 68,819,600 $ 204.82 Construction Management 2,225,000 6.62 Tenant Improvements 802,430 2.39 Contingency 1,823,260 5.43 Subtotal Construction Costs $ 73,670,290 $ 219.26 SOFT COSTS Architects & Engineering Fees $ 3,095,000 $ 9.21 Permits & Fees 5,662,328 16.85 Other Offsite Costs 485,607 1.45 Development Fee (4%) 4,114,120 12.24 Broker Fee & Marketing Cost 1,629,673 4.85 Environmental / Legal / Other 737,470 2.19 Land Loan Interest (9 months L+375bps) 367,987 1.10 Soft Cost Contingency $693,268 2.06 Subtotal Soft Costs $ 16,785,453 $ 49.96 FINANCING COSTS Interest During Construction $ 5,704,527 $ 16.98 Debt - Sourcing & Lender Origination Fee 1,735,068 5.16 Other 582,936 1.73 Subtotal Financing Costs $ 8,022,531 $ 23.88 Additional Phasing Cost (3,694,717) (11.00) TOTAL PROJECT COSTS $ 107,085,558 $ 318.71 Costs Reimbursed from Phase 1 to Phase 2 Phase 1 Phase 2 Combined USES Land Acquisition $ 8,607,283 $ 2,585,311 $ 2,585,311 $ 8,607,283 Hard Costs 51,445,649 23,695,209 1,470,568 73,670,290 Soft Costs 18,999,660 7,178,444 1,370,119 24,807,985 Total Uses $ 79,052,592 $ 33,458,964 $ 5,425,998 $ 107,085,558 SOURCES % of Cost Total % of Cost Total % of Cost Total Debt 75.1% $ 59,365,041 75.0% $ 25,094,223 78.9% $ 84,459,264 Mezzanine Financing 5.0% 3,956,085 0.0% - 3.7% 3,956,085 Equity 19.9% 15,731,466 25.0% 8,364,741 17.4% 18,670,209 Total Sources 100.0% $ 79,052,592 100% $ 33,458,964 100.0% $ 107,085,558 VALUE ANALYSIS Gross Sales Proceeds $ 110,017,468 $ 55,361,481 $ 165,378,950 Phase II Reimbursement 5,425,998 - - Future Transfer Fee Recovery 729,587 - 729,587 Sales Commissions & Closing Costs (5,492,308) (3,919,001) (9,411,310) Net Sales Proceeds $ 110,680,744 $ 51,442,480 $ 156,697,227 Total Costs 79,052,592 33,458,964 107,085,558 Mezzanine Financing Cost 1,377,437 - 1,377,437 Net Profit $ 30,250,715 $ 17,983,516 $ 48,234,232 Return on Cost 37.6% 53.7% 44.5% Unlevered Project IRR 28.1% 38.2% 32.7% Levered Project IRR (Equity) 52.0% 60.9% 53.6% Equity Multiple 2.92 3.15 3.58

13. The West End – Return Summary Commercial Refinance Commercial Sale Commercial Sale Proceeds Projection (Yr 2) Stabilized NOI (Yr 3) 84K SF $ 3,356,000 Cap Rate  6.0% Gross Sales Proceeds 55,914,000 Closing Costs 3.50% (1,957,000) Net Commercial Sales Proceeds $ 53,957,000 Residential Sales Proceeds Projection Sales Price Price/SF Building 1 - Workforce ($ Capped) $ 7,367,523 $ 346.66 Building 1 - Market Rate Lower Floors 15,896,840 565.00 Building 1 - Market Rate Upper Floors 24,102,900 565.00 Building 3 - Workforce ($ Capped) 14,512,416 341.61 Building 2 - Market Rate 44,974,375 $ 625.00 Subtotal $ 106,854,054 Additional Transfer Fee Capacity 361,544 Comiss & Closing – Workforce 3% (656,398) Comiss& Closing - Market Rate 8% (6,797,929) Net Residential Sales Proceeds $ 99,761,270 COMBINED NET SALES PROCEEDS $ 153,718,000 TRANSFER FEE RECOVERY 1,405,000 COMMERCIAL CASH FLOW 1,575,000 TOTAL NET PROCEEDS 156,698,000 TOTAL COST (107,086,000) MEZZANINE FINANCING COST (1,377,000) PROJECT RETURN (UNLEVERED) $ 48,235,000 Commercial Refinance Projection (Yr 2) Stabilized NOI (Yr 3) 84K SF $ 3,355,000 Debt Coverage Ratio 1.2 Constant (Annual, 30 yr, 7.5%) 0.08391 Gross Refinance Proceeds  $ 33,319,000 Financing Cost 5% (1,666,000) Net Refinance Proceeds $ 31,653,000 Residential Sales Proceeds Projection Workforce Units $ 21,880,000 Market Rate Units 84,974,000 Gross Residential Sales Proceeds $ 106,854,000 Commissions and Closing Costs (7,454,000) Additional Transfer Fee Capacity 361,000 Net Residential Sales Proceeds $ 99,761,000 SALES & REFINANCE PROCEEDS $ 131,414,000 TRANSFER FEE RECOVERY 1,405,000 COMMERCIAL CASH FLOW 1,575,000 TOTAL NET PROCEEDS 134,394,000 TOTAL COST (107,086,000) MEZZANINE FINANCING COST (1,377,000) CASH TO PARTNERSHIP (UNLEV) $ 25,931,000 ANNUAL CASH FLOW AFTER DEBT $ 518,000

14. The West End – Sources & Uses USES Total Total Project Cost $ 107,085,000 SOURCES % of Cost Total Debt - Maximum Loan Balance per Proforma = $76.7MM (72% LTC) 78.9% $ 84,459,000 Mezzanine - Current Equity Partner Conversion 3.7% 3,957,000 Equity 17.4% 18,670,000 Total Sources 100.0% $ 107,086,000 LOAN TO VALUE Projected Value - (Gross Sales Proceeds + Cashflow) $ 166,109,000 Loan Amount 84,459,000 LOAN TO VALUE 50.8% Unlevered Project IRR 32.7% Levered Project IRR (Total Equity) 53.6% COMMERCIAL SALE Cash to Partnership $ 66,905,000 Equity $ 18,670,000 Total Equity Multiple 3.58 COMMERCIAL REFINANCE Net Residential Sales Proceeds + Transfer Fee Recovery $ 101,166,000 Net Commercial Refinance Proceeds + Cashflow $ 33,228,000 Total Cash Generated $ 134,394,000

15. The West End – Financing Response Lender/JV Partner Response Contact Source Bank of America (Denver, CO) Term Sheet (Withdrawn Q1 2008) Direct Contact Wynne Loans, LLC (Houston, TX) Term Sheet <-- Venture Partners (Portland, OR) Beijing Construction USA (Dallas, TX) In Process Vail Valley Contact Remenov & Company (Edwards, CO) In Process Vail Valley Contact Lowe Enterprises (Los Angeles, CA) In Process <-- Brentwood Capital Partners (Los Angeles, CA) Crow Financial (Dallas, TX) In Process Direct Contact CIM Group (Los Angeles, CA) In Process Direct Contact Lender/JV Partner Response Contact Source Bank of America (Denver, CO) Term Sheet (Withdrawn) Direct Contact Wynne Loans, LLC (Houston, TX) Term Sheet <-- Executive Mortgage (Green Bay, WI) <-- Venture Partners (Portland, OR) Investors Mortgage Holdings (Scottsdale, AZ) Term Sheet <-- NCP Investments (Chicago, IL) <-- Cashlinq (Denver, CO) Beijing Construction USA (Dallas, TX) In Process <-- Skip Nordness (Milwaukee, WI) Wilkinson Peabody Finance (Toronto, Canada) Term Sheet <-- EVOFI One (Las Vegas, NV) <-- Skip Nordness (Milwaukee, WI) Remenov & Company (Edwards, CO) In Process Direct Contact Lowe Enterprises (Los Angeles, CA) In Process <-- Brentwood Capital Partners (Los Angeles, CA) Crow Financial (Dallas, TX) In Process Direct Contact CIM Group (Los Angeles, CA) In Process Direct Contact Lubert Adler (Philadelphia, PA) In Process <-- George Smith Partners (Los Angeles, CA

16. The West End – Comparative Financing Terms Bank of America Investors Mortgage Holdings (IMH) Date Issued December 2007 July 2008 Financing Amount $83MM $52MM Loan To Cost / Loan to Value Total Project: 75% LTC / 70% LTV 69% LTC (Phase 1) Interest Rate Prime, or Libor + 250bps Prime + 6.25%, 11.25% floor Origination Fees 75bps at closing, $30k annual admin fee 5.5% points origination, 1.5% points processing Recourse Full Recourse, including Environmental Indemnity Full Recourse Due Dilligence Fee none $250K broker fee, $66K legal fee Presales/Preleasing Milestones 25% Commercial ($800K), $25.8MM Market Rate, $8.6MM Workforce NONE Bank of America Wynne Loans, LLC Investors Mortgage Holdings Wilkinson Peabody Finance Financing Type Construction Loan JV Partnership Construction Loan Construction Loan / Mezz Financing Amount $83MM $109MM $52MM $54.5MM Loan To Cost / Loan to Value Total Project: 75% LTC / 70% LTV 100% of Total Project Cost 69% LTC (Phase 1) 70% LTC (Phase 1) Interest Rate Prime or Libor +250bps 30% profit share Prime + 6.25%, 11.25% floor Libor + 350 bps on loan, 10%-15% on mezz Origination Fees 75bps at closing, $30k annual admin fee 2 points 5.5 points origination, 1.5 points processing 1.25 points on the loan, 2 points on mezz Recourse Full Recourse, including Environmental Indemnity Non Recourse Full Recourse Partial Recourse (based on approval) Due Dilligence Fee none $10K for presentation costs $250K broker fee, $66K legal fee $50K upon execution of term sheet Presales/Preleasing Milestones 25% Commercial ($800K), $25.8MM Market Rate, $8.6MM Workforce Approval/Closing Timeframe 30-60 days