P1248802079UDhuA

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NeighborWorks Conference The Balancing Act Jim
Walker Managing Director ESIC Realty Partners
June 2005
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ESICs NMTC Structure
CDFI Fund US Dept of Treasury
Businesses (Real Estate)
Investments Loans
NMTC Allocation
Financial Counseling
ESIC New Markets Partners III Limited
Partnership (For-profit CDEs)
Businesses Residents of LICs
Investments Loans
CDEs
Businesses
Returns, NMTCs, and Cash
The Enterprise Communities Fund LP
CDEs
Purchase Loans
ECDF-I
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Tivoli Square

• 115,000 SF Retail/Office Project
• Washington, DC

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Tivoli Square
Current
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Tivoli Square
Current
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Tivoli Square
Proposed
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Term Sheet

• Senior Debt
• 75 LTV
• 5 fixed
• 30 year Amortization
• 1.9 DSC
• First Lien Secured
• Recourse Carve Outs

• Mezzanine Debt
• 90 LTV
• 9 preferred, 50/50 to 12
• Interest Only
• 1.5 DSC
• Pledge of Partnership Interest
• Recourse Carve Outs

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Features

• Mission
• Median Income 37k, 52 AMI, 20 poverty
• Renovation of a Neighborhood Retail/Cultural
  Center
• Provide retail services to neighborhood residents
• Anchor neighborhood redevelopment
• Pre-leasing
• 50 Rated Grocer
• Significant National Retailers

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Features contd

• Equity
• 25 City
• 5 Developers
• Sponsorship
• Experienced retail developer
• Local CDC
• Local Government

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Crosby Street Mercado

• 116,000 SF Neighborhood Retail Project
  San Diego, CA

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Crosby Street Mercado
Proposed
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Term Sheet

• Senior Debt
• 10,700,00
• 30 year Amortization
• DSC 1.40x
• First lien Secured
• Recourse Carve Outs
• Operating and capital reserves

• Mezzanine Debt
• 2,300,000
• 9 preferred, 50/50 to 12
• Interest Only
• DSC 1.20x
• Pledge of Partnership Interest
• Recourse Carve Outs

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Features

• Mission
• Family Income 21k, 40 AMI, 37 poverty,
• Provides retail services to residents
• Redevelopment of neighborhood
• Pre-leasing
• 30 Grocer
• 13 Discount Department Store
• 40 National and local retail merchants

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Features contd

• Equity
• 23 City Land Contribution
• 3 Grants
• Sponsorship
• Experienced Retail Developer
• Local CDC

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Summary

• Investing in Catalytic, High Impact Projects
  throughout the United States
• Use sound underwriting procedures to identify
  and appropriately mitigate risks
• Goal to facilitate community economic
  redevelopment and increase capital going to
  underserved neighborhoods while providing
  attractive returns to our investors

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