1. Real Estate Deal Pitch
NICK LIEW
NOAH NEWBERGER
ZACHARY BARDWELL
TOBIAS LEVIN STEIMBERG

2. Executive Summary
1. Market Characteristics
2. Site Plan
3. Timeline
4. Capital Structure
5. Distribution Waterfall
6. Analysis of Risks

3. Market Demand
Residential
◦ 6.2% Avg Vacancy
◦ 4.4% 12 month rent growth
◦ Rents
Retail
◦ 3.1% Avg Vacancy
◦ 8.8% 12 month rent growth
◦ Current asking rent $23/sqft
($/sqft/mo)

4. Residential

5. Retail

6. Site Plan On Western Ave.
Development Plan
◦ Timeline- Two years to build both plots
◦ Cost - $111 Million
1101 Western Avenue
◦ 2 floors retail / 4 floors residential
1100 Western Avenue
◦ 6 floors parking / 7 floors residential
Maximize waterfront views for residential and foot traffic for retail
LEED Silver certification on all buildings

8. Floor Plans900 Square Foot 2 Bedroom 1,500 Square Foot 3-Bedroom
Retail Space
- 25,000 sft per floor
- Split 2-1, Anchor and two stores

9. Market Leasing Assumptions
Operating Expenses - 2% inflation
Parking - $80/stall/month
◦ 722 stalls

10. Commercial Tenants
Tenant Strategy
◦ Major anchor tenant
◦ Regular tenants

11. Project Timeline
*Occupancy
corresponds to
Residential
*
*
*

12. Sources and Uses
Development Costs
◦ Total = 111.4 million
◦ Acquisition Cost
◦ Hard and Soft Costs

13. Debt and Equity
Construction Financing
Equity Structure

14. Cash Flow Distribution
Step 1: Return All Capital - $40 mil
Step 2: Accrue and Pay Preferred Return at 7% (pari passu)
Step 3: Split Free Cash Flow After Preferred Return 3 ways
Step 4: Sell Property in Year 10
Step 5: Split Sales Proceeds 3 ways

15. Financial Model General Assumptions
One Time Jump in Year 6

16. Vacancy Rates
0%
25%
Year 3
Onwards
First 2 Years
Vacancy Rates - Retail

17. Private Equity Cash Flow
IRR = 30.2%

18. Gonzaga University Cash Flow
IRR = 42.2%

19. Our Team’s Cash Flow
IRR = 40.8%

20. Overall IRRs

21. Average Cash-on-Cash

22. Sensitivity Analyses

23. Sensitivity Analyses (continued)

24. Sensitivity Analyses (continued)

25. Analysis of Risks (Qualitative)
1. Construction Risks
◦ Delays from flooding
2. Market Risks
◦ Macroeconomic conditions
3. Leasing risks
◦ Higher Vacancy