Pioneering the new generation of urban living...From origination to compliance, asset management to...

Pioneering the new generation of urban living

Table of contents

I.  DEVELOPMENT TEAMII.  PROJECT APPROACHIII. DESIGNIV. LEASE TERMSV.  FINANCIAL STRUCTURE

Broward county board of county commissioners rfp solicitation n2111265p1Submitted by: Art lofts workforce developers, llc

ORGANIZATIONAL CHART

Owner: WORKFORCE

HOUSING FOUNDATION INC

DEVELOPER

ART LOFTS WORKFORCE DEVELOPERS,

LLC

BURNS & COMPANY

COMMUNITY DEVELOPMENT

PARTNERSBOSTON CAPITAL

DESIGN & CONSTRUCTION

Architect: PASQUALE KURITZKY

ARCHITECTURE, INC

Landscape Architect: LAURA

LLERENA & ASSOCIATES

General Contractor: TBD

PROFESSIONAL

Management Company: ROYAL

AMERICAN MANAGEMENT

Bond Placement: STIFEL PUBLIC

FINANCE

Land Use: JOHN M. MILLEDGE, ESQ

Developer Council:

STEARNS & WEAVER

The Workforce Housing Foundation was formed with the specific goal of providing affordable housing for working families and other moderate-income households. The Workforce Housing Foundation, along with the foundation’s partners (government agencies and community organizations), develop quality rental communities in high cost areas, typically urban, within a close proximity to employment centers and transit, at rents that are affordable to the area’s workforce (i.e. teachers, religious leaders, nurses, firefighters, paramedics, government employees, etc.). This will reduce the household cost burden, shorten their commute, and encourage moderate-income families to live, work and play within the communities for which they serve.

The Foundation’s strategy strengthens and helps ensure the long-term viability of the community’s economic and social wellbeing.

JOHN “JACK” P. MANNING, CHAIRMAN OF THE BOARDMR. MANNING IS CO-FOUNDER AND CEO OF BOSTON CAPITAL CORPORATION. UNDER MR. MANNING’S LEADERSHIP AS CEO FOR THE PAST 39 YEARS, BOSTON CAPITAL HAS GROWN INTO THE LARGEST OWNER/INVESTOR IN APARTMENT PROPERTIES IN THE US. THROUGH A NUMBER OF AFFILIATED PARTNERSHIPS, THE COMPANY HAS CREATED A PORTFOLIO COMPRISED OF APPROXIMATELY 2,260 PROPERTIES WITH COSTS THAT EXCEED $15 BILLION. MR. MANNING IS A RECOGNIZED LEADER IN THE HOUSING INDUSTRY AND HAS SERVED ON THE BOARDS OF A NUMBER OF NATIONAL HOUSING ORGANIZATIONS AND GOVERNMENTAL COMMISSIONS.

ANTHONY “TONY” UNDERWOOD, BOARD MEMBERMr. Underwood has more than 25 years experience in real estate development, finance, asset management and operations. His professional history includes an extensive background in public private partnerships including Low-Income Housing Tax Credits, Historic Tax Credits, New Market Tax Credits and Investment Tax Credits.

THOMAS “TOM” EAGAN, BOARD MEMBERMr. Eagan focuses his practice on real estate matters. He has served as special counsel to the city of Miami Beach in connection with real estate development issues. He is a founder and member of the board of trustees for the University of Miami Institute on Condominium and Cluster Housing. Mr. Eagan also is a board member of the Real Property Institute and serves as co-editor of Florida Real Estate Transactions.

BURNS & COMPANY: JEFFREY R. BURNS, president & CEO

Jeff Burns is the CEO and President of Burns & Company. With an emphasis on high-density development in urban markets across the United States, Mr. Burns strives to create dynamic environments that promote vitality within a city’s urban core.

Mr. Burns has is currently involved in the development of over 2 million square feet of real estate with a combined cost of roughly $378 million. Included in that is approximately 1,200 residential apartment units that will serve a wide variation of tenants from luxury market-rate occupants to low-income housing residents. Of these projects, nearly all incorporate public-private partnerships and various public financing resources such as Tax Increment Financing (TIF), Low Income Housing Tax Credits (LIHTC), Tax Exempt Bonds, Special Assessment Financing, HUD Financing, and local government housing grants.

Mr. Burns got his start in the real estate industry as a commercial lender with the role of project origination for BB Syndication Services, Inc., a national syndicate lender out of Wisconsin. Mr. Burns originated and funded construction loans for developments across the country ranging in size from $11 million in total cost to $200 million in total cost.

In 2006, Mr. Burns had shifted his primary focus to development. Mr. Burns partnered with Rick Barrett and Tan Lo of Milwaukee, WI to develop The Moderne; a 30-story high-rise residential tower in Milwaukee’s downtown. The project is comprised of 203 market rate apartments, 14 condominiums and a 7,500 square foot restaurant. Mr. Burns and his partners managed to close on the financing of the $65 million project during the height of the US financial crisis by closing a $43.5 million construction loan from AFL-CIO Housing Investment Trust (via the HUD 221(d) 4 program), as well as securing $9.3 million in City of Milwaukee TIF funding and roughly $12.2 million in equity from investors from Hong Kong. The Moderne was completed in 2012 on time and on budget, is fully leased, and won the Business Journal’s 2012 “Project of the Year” Award.

Mr. Burns is a resident of Broward County and the City of Fort Lauderdale. Mr. Burns is a member of the Fort Lauderdale Chamber of Commerce, a board member on the Downtown Council and is a member of First Presbyterian Church in Fort Lauderdale. Mr. Burns is a graduate of the University of Missouri Business School.

COMMUNITY DEVELOPMENT PARTNERS: JAMES R. WATSON, president & ceo

Jim Watson is the founder of Community Development Partners (CDP Companies). Mr. Watson has more than 29 years of experience in the development, finance and asset management of all property types. With an extensive real estate background, Mr. Watson has a proven track record that demonstrates his vision and ability to realize those visions.

In addition to CDP Companies Jim Watson formed CDP, LLC to focus on development opportunities in the Caribbean basin. Drawing upon his knowledge of public-private partnership development Mr. Watson spearheaded the enabling legislation for Tax Increment Financing (TIF) in the US Virgin Islands. The passage of TIF made possible the development of the, Home Depot anchored, Island Crossings Shopping Center. This mixed-use center was both the first TIF project in the USVI and the first new retail development on St. Croix in 25 years. In addition to bringing much needed jobs and services to the residents of St. Croix, while also leading the way in providing 360 KW of renewable energy.

Prior to forming CDP, Mr. Watson was a co-founder of Stern Brothers Real Estate Finance (SBREF). SBREF is a regional real estate development firm with extensive expertise in public-private partnerships. Utilizing innovative financing vehicles including Tax Increment Financing, Neighborhood Improvement Districts and Transportation Development Districts SBREF developed three master-planned golf communities The National Golf Club of Kansas City, Loch Lloyd Country Club, and Osage National Golf Resort totaling over 1,300 home sites and 90-holes of championship golf . Additionally SBREF developed the 200,000 sq. ft. Parkville Commons Shopping Center.

Prior to forming SBREF, Mr. Watson served as Executive Vice President of Stern Brothers, an investment-banking firm with offices in Kansas City, St. Louis, Chicago and Denver. Mr. Watson was responsible for the real estate investment banking using innovative techniques such as Low-Income Housing Tax Credits (LIHTC) , Tax-Exempts Bonds, Lower Floaters and Industrial Development Bonds.

As Executive Vice President and Managing Director of The March Co., Mr. Watson was an early pioneer of LIHTC program. While with March he was responsible for$1 billion in transactions acting as co-general partner and directing the development, management and financing of approximately 4,000 units of multi throughout the Midwest, Texas and Puerto Rico.

In addition to these experiences, Mr. Watson also served as Vice President of Drexel Burnham Lambert, providing investment banking services to a host of major clients.

Prior to that, Mr. Watson served at Oppenheimer & Co. and Merrill Lynch as Vice President of Real Estate Finance concentrating on commercial real estate finance throughout the US.

PPP Development & Finance Amount

Tax Increment Financing (TIF)$100

Million

Neighborhood Improvement District Financing (NID)

$32 Million

Community Improvement Districts (CID) $5Million

Transportation Development District Financing (TDD)

$2 Million

Development Projects Units

Multifamily 4,416

Historic Rehabilitation 152

Single Family (lots)1,300

Commercial (square footage) 1,110,000

At Boston Capital, we believe that the multifamily housing market holds unique opportunities. Looking forward, we expect the demand for quality housing, from affordable housing to luxury apartments, will continue to grow. We plan to continue using our expertise and industry-leading approach to meet the growing housing needs for all Americans.

Over 40 years of experience and sophisticated debt and equity investment options position us to best satisfy the demands being created by this growing population of renters. Additionally, we expect that our asset management platform, which uses historic and real-time information from more than 2,200 properties in 49 states, will continue to set us apart in managing our own assets, as well as those of third-party clients.

We will continue innovating and growing in all aspects of our business and carry on the tradition and philosophy that has enabled Boston Capital to become a leader in the multifamily industry.

At Boston Capital, our professionals have an average of 15 years of industry experience and eight years with Boston Capital—and you can expect us to leverage our collective intellectual capital to create, develop and manage your solution throughout our relationship.

From origination to compliance, asset management to dispositions—and everywhere in between—we work as a team, side by side with our developers and investors. We remain focused on every detail to help ensure a successful transaction. In working with Boston Capital, you gain the ability to access nearly four decades of experience and expertise in every facet of the transaction.

Units Sold 9,726

Year of Experience 40+

Apartment Units Invested In 206,000

# of Employees 200+

# of States Invested In 49

RECENT COLLABORATION: ST. JOHN PLAZA APARTMENTS, MIAMI, FL

St. John Plaza Apartments (“SJP”) is a 5-story mixed-use affordable housing development with 90 LIHTC apartment units and 8,500 sf of community service space, including a Child Learning Center on the ground floor. Located at 1327 NW 3rd Avenue in the Overtown neighborhood of Miami, FL, SJP was one of four affordable housing projects that were built in the neighborhood that utilized CRA funding. A true PPP, the development team sourced financing from City, County and State programs. SJP has the following common area amenities and features: key fob controlled access, 24-hr fitness facility, community room, gated garage parking, library, computer lab, bike storage, playground and high speed internet access. The units feature energy star rated appliances, kitchen pantry, low flow plumbing fixtures, full size washers and dryers, porcelain tile flooring, corian countertops, impact energy efficient windows and window treatments.

SJP broke ground in July 2016 after a comprehensive closing that involved over 50 participants. SJP is owned by partnership that includes the St. John CDC, Boston Capital and Community Development Partners (i.e. Jim Watson and Jeff Burns). The development team overcame a number of challenges and political obstacles, in order to close on the financing for the project and begin construction.

SJP’s financing sources include tax-exempt bond financing, LIHTC tax credit equity from Florida Housing Finance Corp. (Boston Capital syndicator), a County Surtax Loan, a fixed rate forward permanent loan from Greystone, and $10 million of CRA grant proceeds from the Southeast Overtown CRA.

SJP is scheduled to complete construction in October 2017.

PROJECT COST: $28 MILLION,

Established in 1994 by partners Joseph Pasquale and Harlan Kuritzky, Pasquale Kuritzky Architecture, Inc., has established a reputation for excellence in residential and commercial architecture. The firm is recognized as one of the top outstanding architectural firms in Broward County. PK Architecture was the architect for one of the most recent affordable housing projects in Fort Lauderdale, Pinnacle at Tarpon River.

By applying our professional skills, knowledge, and consistent personal attention to each project, we strive to create more than just a functional structure for our clients. We pledge to look beyond the obvious and produce an end result that is both marketable in form and remarkable in design. Our goal is to create value for the client which invites loyalty and establishes a relationship for the future. We adhere to the premise that delighting the client is better than satisfying the client, and commit ourselves to excellence in providing quality architectural services.

Mr. Pasquale leads the residential division of Pasquale Kuritzky Architecture. His 28 years of specialized experience is in design and construction cost control for all types of residential projects.

Prior to establishing Pasquale Kuritzky Architecture, Mr. Pasquale was the Director of Architecture for Pulte Home Corporation for ten years. He designed and built over 500 units per year during his ten years with the company. His philosophy of a team approach to design incorporates the market place, contractors and material supplier base as projects are being designed and developed.

Mr. Pasquale holds a Bachelor of Architecture degree from the University of Miami, Coral Gables, Florida. Civic and professional involvements include Urban Land Institute, Habitat for Humanity, Riverwalk 100, and past membership in the American Institute of Architects and the Gold Coast Builders Association.

Facts About Pasquale Kuritzky’s Mixed-Use and Multi-Family Communities

•  PKA has designed and successfully completed over 3,000 apartment units. •  PKA has designed and successfully completed 30 apartment and or mix-use developments in Florida. •  PKA is presently planning and designing over 1,200 apartments and 120,000 square foot of mixed-use

office, retail and residential with an open structured parking garages in South Florida. •  PKA recently completed a 10-story mixed-use residential building in Fort Lauderdale with 100

affordable and 12 market rate apartments. This included a parking garage, retail space, and resident amenities.

•  PKA has accomplished over 60 site plan entitlements, DERM, and building permits in South Florida. •  PKA designs have reduced construction cost up to 12%. •  PKA won an award for Community Appearance in Urban Environmental Design in Fort Lauderdale. •  PKA was awarded LEED Silver for Pinnacle at Tarpon River. Additionally, multiple projects are in

progress for certification with the Florida Green Building Coalition. •  PKA has designed and successfully completed 450 government financed apartment units. •  PKA was awarded the “Best Place to Work” from the South Florida Business Journal.

Mr. McDonough is a Shareholder in the Real Estate Department. He is a member of the Firm's Board of Directors as well as its Executive Committee and he also is the Chairperson of the Firm's Affordable Housing & Tax Credit Practice Group. He represents developers using government loan programs, community housing development organizations and 501(c)(3) organizations using qualified 501(c)(3) bonds for multifamily housing developments. Brian assists clients with matters involving multifamily housing, low income housing tax credits and loan programs implemented by the U.S. Department of Housing & Urban Development. Brian also represents lenders in all types of Real Estate loans and in particular loans related to affordable housing.

Brian is a frequent lecturer and panelist on current matters affecting affordable housing. In addition, Brian has authored several articles on matters affecting affordable housing.

Representative ExperienceRepresentation of several sellers of multiple affordable housing properties, partnership interests and management company affiliates.Negotiation and preparation of contracts for properties for new and existing multi-family apartment buildings throughout the State of Florida.Negotiation of workouts of tax-exempt bond financed projects involving state and local issuers of bonds.Representation of developers in the negotiation of the syndication of Federal low income housing tax credits.Issued, as an agent for various title companies, title insurance policies on behalf of owners and lenders in excess of $1 billion.Professional and Community InvolvementGive Kids A Chance, a charitable organization providing scholarships to low income students, Founder and Executive DirectorActs as legal counsel to the Coalition of Affordable Housing Providers, an organization of developers, lenders, tax credit syndicators, and other professionals involved in the acquisition, financing, and development of affordable housing in the State of FloridaCamillus House, Board of DirectorsRecognitionChambers USA: America's Leading Lawyers for Business - Ranked in Real Estate, 2015-2016The Best Lawyers in America®, 2003-2017Florida Super Lawyers, selected for inclusion, 2006-2016AV Rated by Martindale-Hubbell

BRIAN J. MCDONOUGHShareholder, Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.

“The preeminent practitioner in affordable housing.” – Chambers USA 2016

With over 40 years of experience in managing multifamily housing, Royal American Management, Inc. (RAM) is able to effectively balance the needs of clients, residents, and staff members while optimizing the performance of both established and newly constructed assets. RAM, an award winning Accredited Management Organization (AMO), is headquartered in Panama City, Florida with regional offices strategically located throughout the Southeast to include Miami, Orlando, and Tallahassee Florida, the Carolinas, Atlanta Georgia, and Arkansas. RAM is widely recognized not only for its large, diverse portfolio of neatly manicured and high performing communities; it is also recognized for its warm, friendly, knowledgeable, and highly responsive staff. RAM’s professional team is truly passionate about marketing, maintenance, and management of market-rate, luxury, senior, and all types of affordable residential communities. RAM’s extensive experience with all types of affordable programs such as HUD, RD, HOME, CBDG, Hope VI, Tax- Exempt Bonds, and LIHTC is invaluable. RAM takes pride in its strong working relationships with third-party clients, monitoring agents, and government agencies.

RAM's mission is to enrich the lives of our residents by providing them with superior, multifamily housing and services while implementing new and innovative management techniques uniquely designed to add value to each property we manage.

John M. Milledge, Esquire is responsible for land use entitlements with the City of Fort Lauderdale and Broward County. John has over 25 years experience representing the Downtown Development Authority and private landowners concerning development projects in the Downtown Regional Activity Center. John brings with him extensive experience working with the City of Fort Lauderdale City Commission, City Manager, Sustainable Development Department, and Transportation & Mobility Department.

John M. Milledge, Esquire

Art loftsProject Approach

Art Lofts is a workforce housing development, sponsored by the nonprofit Workforce Housing Foundation, Inc., in partnership with Broward County. Art Lofts was conceived in 2014 by developer Jeff Burns, who approached the county to inquire about utilizing 600 N. Andrews avenue to build a workforce housing development.

Art Lofts is a 6-story luxury mixed-use apartment building offering 105 rental apartment units that are affordable to the area’s moderate-income individuals and families. In addition to residences, the project will feature approximately 4,680 square feet of ground floor commercial space and a parking structure to accommodate 125 vehicles. The ground level commercial space is envisioned to be multi-purpose space that occupies community-based businesses during work hours and plays host to the public for local artists to display their work on nights and weekends. This cross-utilization of space is where public benefit and private development share equal importance.

Art Lofts is situated within the cultural epicenter of Fort Lauderdale. The area is home to artists, designers, small businesses and is beginning to attract more supporting retail space for the fast-growing residential population. Art Lofts is envisioned to pay tribute to the diverse and unique landscape of the Flagler Village neighborhood. Art Lofts takes its cues from the planning objectives of the City of Fort Lauderdale and it’s design inspiration from Miami’s art deco structures. The building will feature a sleek curvature to its edges while displaying simplistic clean lines. The design promotes a pedestrian feel by setting back the first floor within the building and encouraging public interaction.

The project addresses an important element within the broad array of income levels that exist within the neighborhood by providing affordable housing for working-class individuals and families that serve our community. Flagler Village is home to thousands of market-rate housing units and several affordable low-income housing options. The neighborhood’s current inventory fails to provide reasonable options for households that earn between $60,000 - $80,000 per year.

Art Lofts will offer 33 one-bedroom, 57 two-bedroom and 15 three-bedroom apartment units with class-A features and finishes. The building will offer luxury amenities such as a rooftop pool deck, a dog run, BBQ area, fitness facility, secured access, and community room. Art Lofts will emphasize eco-friendly and green elements to encourage a healthy and sustainable lifestyle. The building will live up to its name by showcasing and incorporating local works of art throughout the building’s common areas.

Most importantly, 100% of the project’s apartment units will be rented to moderate-income households with incomes that are no more than 120% of AMI (Area Median Income). Our tenants will likely be teachers, nurses, artists, police officers, service industry professionals, and small business owners. Residents of Art Lofts will have disposable incomes and prefer to live, work and play all within Fort Lauderdale’s downtown urban core.

In addition to the application of affordable housing, Art Lofts is a transportation-oriented development (“TOD”). A new Wave Streetcar stop is planned to be located directly in front of the entrance to Art Lofts. Residents can forgo their vehicles and will be able to access various pockets within the city, employment (such as the government buildings, office towers, hotels, restaurants, and the hospital), the airport, and access to the All Aboard Florida high-speed rail station.

BROWARD COUNTY OBJECTIVES ADDRESSING THE WORKFORCE HOUSING CRISIS

Workforce housing is generally understood to mean affordable housing for households with earned income that is insufficient to secure quality housing in reasonable proximity to the workplace.

Numerous studies show that when moderate income families are overly cost burdened with housing and transportation costs, they relocate to less cost burdened (less expensive) communities. In Broward County, individuals and families are being forced to live outside of the community that they serve. These citizens have great jobs and disposable income. If not addressed immediately, the effect that this can have on the local economy will be drastic.

The standard most used by various units of government is that households should spend no more than 30% of their income on housing. Families who pay more than 30% of their income on housing are considered cost-burdened and may have difficulty affording necessities such as food, clothing, transportation, and medical care. According to the Center for Housing Policy, “South Florida and Broward County is the worst in the nation for moderate income cost burdened households when combined with transportation costs, with over 70% of those households being cost burdened.”

Increasingly, communities are beginning to understand that high quality workforce housing in close proximity to employment center is tantamount to infrastructure necessary to maintain healthy economies. Just like schools, parks, roads and other public infrastructure, local governments must realize that the market is not going to provide workforce housing. Conventional economics don’t make sense. Therefore, there is a critical role for the government to play.

Art Lofts was structured, designed, and financially engineered to produce the greatest possible social and economic impact on the community. It is our determination that the largest disparity in rents occurs on the two and three bedroom units, and the most cost-burdened tenant that exists within our community are those that require a two and three bedroom unit. When evaluating market rents and comparing them to 120% AMI max rents, the greatest savings occur in the two and three bedroom units. By incorporating numerous two and three bedroom units within our project we believe that we are addressing the greatest need within the community and making the most MEANINGFUL IMPACT for our community’s residents.

MAKING A MEANINGFUL IMPACT


Type 120% MAX Rents Market Rents Savings

STUDIO $1,524 $1,662 $138

1BD $1,632 $1,985 $353

2BD $1,959 $2,467 $508

3BD $2,262 $3,223 $961


ART LOFTS Unit Mix

Type # % Unit SF Unit Rent Market

Rent Savings STUDIO 0 0.00% 525 $0 $0 $0 1BD 33 31.43% 700 $1,554 $1,985 $431 2BD 57 54.29% 918 $1,860 $2,467 $607 3BD 15 14.29% 1,284 $2,140 $3,223 $1,083

MAKING A MEANINGFUL IMPACT STUDIOS

Year Built Total Units Area # Units % of Bldg Market Rent Avg Size Rent/SF Vu New River 2015 209 South New River 0 0% $0 0 $0.00 The Edge 2014 331 Flagler Village 13 4% $1,730 648 $2.67 The Manor 2014 382 Flagler Village 27 7% $1,685 700 $2.41 New River Yacht Club 2014 248 South New River 7 3% $1,693 629 $2.69 Elan 16 Forty 2014 261 Sunrise 0 0% $0 0 $0.00 Satori Apartments 2009 279 Sunrise 0 0% $0 0 $0.00 AMLI Flagler Village 2009 218 Flagler Village 0 0% $0 0 $0.00 Solmar on 6th 2009 286 Flagler Village 0 0% $0 0 $0.00 Camden Las Olas 2004 420 CBD 48 11% $1,540 677 $2.27 Sunrise Harbor 2000 361 Sunrise 0 0% $0 0 $0.00 TOTALS/AVERAGES 2010 2,995 95 3% $1,662 664 $2.50

MAX 120% RENTS NA NA NA NA NA $1,524 NA NA DIFFERENCE NA NA NA NA NA $138 NA NA

ART LOFTS NA 105 Flagler Village NA NA NA NA NA DIFFERENCE NA NA NA NA NA NA NA NA

MAKING A MEANINGFUL IMPACT 1 BEDROOM

Year Built Total Units Area # Units % of Bldg Market Rent Avg Size Rent/SF Vu New River 2015 209 South New River 93 44% $2,178 785 $2.77 The Edge 2014 331 Flagler Village 201 61% $2,007 822 $2.44 The Manor 2014 382 Flagler Village 151 40% $1,880 780 $2.41 New River Yacht Club 2014 248 South New River 117 47% $1,973 740 $2.67 Elan 16 Forty 2014 261 Sunrise 146 56% $1,925 864 $2.23 Satori Apartments 2009 279 Sunrise 44 16% $1,948 887 $2.20 AMLI Flagler Village 2009 218 Flagler Village 75 34% $1,875 757 $2.48 Solmar on 6th 2009 286 Flagler Village 94 33% $1,843 835 $2.21 Camden Las Olas 2004 420 CBD 122 29% $1,829 791 $2.31 Sunrise Harbor 2000 361 Sunrise 147 41% $2,388 906 $2.64 TOTALS/AVERAGES 2010 2,995 1,190 40% $1,985 817 $2.43


ART LOFTS NA 105 Flagler Village 33 31% $1,554 700 $2.22 DIFFERENCE NA NA NA NA NA $431 117 $0.21


Year Built Total Units Area # Units % of Bldg Market Rent Avg Size Rent/SF Vu New River 2015 209 South New River 86 41% $2,809 1,170 $2.40 The Edge 2014 331 Flagler Village 103 31% $2,460 1,184 $2.08 The Manor 2014 382 Flagler Village 204 53% $2,193 1,136 $1.93 New River Yacht Club 2014 248 South New River 110 44% $2,687 1,102 $2.44 Elan 16 Forty 2014 261 Sunrise 104 40% $2,589 1,289 $2.01 Satori Apartments 2009 279 Sunrise 215 77% $2,321 1,293 $1.80 AMLI Flagler Village 2009 218 Flagler Village 129 59% $2,330 1,178 $1.98 Solmar on 6th 2009 286 Flagler Village 140 49% $2,200 1,262 $1.74 Camden Las Olas 2004 420 CBD 204 49% $1,969 1,175 $1.68 Sunrise Harbor 2000 361 Sunrise 181 50% $3,112 1,368 $2.27 TOTALS/AVERAGES 2010 2,995 1,476 49% $2,467 1,216 $2.03


ART LOFTS NA 105 Flagler Village 57 54% $1,860 918 $2.03 DIFFERENCE NA NA NA NA NA $607 298 $0.00


Year Built Total Units Area # Units % of Bldg Market Rent Avg Size Rent/SF

Vu New River 2015 209 South New River 30 14% $3,745 1,415 $2.65 The Edge 2014 331 Flagler Village 14 4% $3,259 1,413 $2.31 The Manor 2014 382 Flagler Village 0 0% $0 0 $0.00 New River Yacht Club 2014 248 South New River 14 6% $3,568 1,479 $2.41 Elan 16 Forty 2014 261 Sunrise 11 4% $3,324 1,582 $2.10 Satori Apartments 2009 279 Sunrise 20 7% $2,717 1,447 $1.88 AMLI Flagler Village 2009 218 Flagler Village 14 6% $2,583 1,355 $1.91 Solmar on 6th 2009 286 Flagler Village 52 18% $2,859 1,488 $1.92 Camden Las Olas 2004 420 CBD 46 11% $2,761 1,520 $1.82 Sunrise Harbor 2000 361 Sunrise 33 9% $4,188 1,653 $2.53 TOTALS/AVERAGES 2010 2,995 234 8% $3,223 1,484 $2.17


ART LOFTS NA 105 Flagler Village 15 14% $2,140 1,284 $1.67 DIFFERENCE NA NA NA NA NA $1,083 200 $0.50

To achieve the goal of providing affordable workforce housings starts with the knowledge of labor and material costs and to have the ability to design an economical structure. There is a fine balance in decisions making between initial cost and total cost with respect to the durability of materials and long term maintenance. Incorporating the correct materials, installed the right way the first time and constructed the most effective way will result in quality of design. Art Lofts following this premise will offer quality housing at an affordable rate to the workforce.

The building is designed efficiently with proven materials of South Florida. Masonry, concrete, aluminum, glass and resilient veneer materials all being used in their appropriate means. The six story in building height has been selected to reduce the construction costs that is inherent in a high rise over 75’ and also to comply with the City of Fort Lauderdale Urban Design Guidelines without requiring a conditional Site Plan Approval by City Commission.

The building offers one, two and three bedrooms’ unit’s design with the function and enjoyment of living in mind. In addition to the secured parking for its residents on the upper levels and the appropriate retail and visitor parking on grade adds to the living convenience of this building. The ground floor offers commercial spaces for rent and will be occupied by Art Lofts Leasing Management Office as well as the community fitness center to create an active ground floor at grand opening. The private community club, pool, cabanas and outdoor recreation is located on the upper floor of the parking structure which offers pleasant views for the apartments.

A sustainable energy efficient building should not only just rely on plug n’ play of equipment but to have thoughtful design solutions for the building. Reduce solar heat gain, increase passive air movement and reduce consumption of utilities are subjected to our focus to produce quality of design.Simple structure, efficient building height, functional apartments, thoughtful design and the enjoyment of life in a new community is what Art Lofts is all about.

DESIGN NARRATIVE

©

℄

Transportation Oriented Development

LANDLORD: BROWARD COUNTY

TENANT: WORKFORCE HOUSING FOUNDATION, INC., A 501(C)3 ORGANIZATION

TERM: 60 YEARS

INITIAL CAPITAL LEASE PAYMENT: $300,000 LUMP SUM, PAYABLE AS FOLLOWS:$10,000 BOND (PAID AT SUBMITTAL)$20,000 DUE AND PAYABLE AT EXECUTION OF GROUND LEASE$270,000 DUE AND PAYABLE AT FINANCIAL CLOSE

ANNUAL BASE RENT: $25,000 paid annually commencing upon construction completion

ADDITIONAL RENT: none

AFFORDABILITY REQUIREMENTS: 100% of the units shall be rented to households earning no more than 120% of Broward County AMI, and unit rents may not exceed the max rent limits for published for Broward County as determined by the Department of Housing & Urban Development

NET LEASE: Tenant shall be responsible and pay all taxes, insurance, utilities, general property maintenance, and all operating expenses

COUNTY GROUND LEASE TERMS

LINE-ITEM TOTAL COST Per Unit Per RSF Per GSF % SubTTL

Land 1 Lease Payments $325,000 $3,095 $3.43 $1.79 1.26%2 Leasehold Value $2,200,000 $20,952 $23.23 $12.09 8.54%

Hard Costs3 Demolition $0 $0 $0.00 $0.00 0.00%4 Building Cost $16,440,690 $156,578 $173.63 $90.32 63.78%5 Contractor Fee $822,035 $1,566 $1.74 $0.90 0.64%6 Builders Risk $106,864 $1,566 $1.74 $0.90 0.64%7 Contractor Insurance $164,407 $1,000 $1.11 $0.58 0.41%8 P&P Bond $164,407 $1,000 $1.11 $0.58 0.41%9 Building Permits $105,000 $1,000 $1.11 $0.58 0.41%10 Permit Private Provider $125,000 $1,190 $1.32 $0.69 0.48%11 Utility Connection Fees $220,500 $2,100 $2.33 $1.21 0.86%12 Impact Fees $777,000 $7,400 $8.21 $4.27 3.01%

Soft Costs13 Survey $35,000 $333 $0.37 $0.19 0.14%14 Architect & Engineer Design $493,221 $4,697 $5.21 $2.71 1.91%15 Architect & Engineer Supervision $123,305 $1,174 $1.30 $0.68 0.48%16 Design Consultants $25,000 $238 $0.26 $0.14 0.10%17 Environmental & Soils $50,000 $476 $0.53 $0.27 0.19%18 FF&E $126,000 $1,200 $1.33 $0.69 0.49%19 Marketing & Advertising $105,000 $1,000 $1.11 $0.58 0.41%20 Administrative $225,000 $2,143 $2.38 $1.24 0.87%21 Professional $328,814 $3,132 $3.47 $1.81 1.28%22 Real Estate Taxes $0 $0 $0.00 $0.00 0.00%23 Insurance $105,000 $1,000 $1.11 $0.58 0.41%

Financing Costs24 3rd Party Reports $30,000 $286 $0.32 $0.16 0.12%25 Pre-Development Interest $148,313 $1,413 $1.57 $0.81 0.58%26 Inspection Fees $24,000 $229 $0.25 $0.13 0.09%27 Credit Underwriting & Misc. Reports $75,000 $714 $0.79 $0.41 0.29%28 Construction Loan Bank Fee $227,520 $2,167 $2.40 $1.25 0.88%29 Subordinate Debt Costs $300,000 $2,857 $3.17 $1.65 1.16%30 Construction Loan Interest $773,568 $7,367 $8.17 $4.25 3.00%31 Permanent Financing Costs $467,656 $4,454 $4.94 $2.57 1.81%32 Bond Costs $455,040 $4,334 $4.81 $2.50 1.77%33 Title & Recording $207,043 $1,972 $2.19 $1.14 0.80%

Subtotal Project Cost: $25,775,382 $245,480 $272.22 $141.60 97.21%Fees, Contingencies, Reserves

34 Initial Operating Deficit $381,138 $3,630 $4.03 $2.09 1.48%35 General Project Contingency $1,288,769 $12,274 $13.61 $7.08 5.00%36 Non-Profit Fee $515,508 $4,910 $5.44 $2.83 2.00%37 Developer Overhead $1,546,523 $14,729 $16.33 $8.50 6.00%38 Developer Profit $2,577,538 $24,548 $27.22 $14.16 10.00%

TOTAL PROJECT COSTS: $32,084,857 $305,570 $338.86 $176.26 121.69%

DEVELOPMENT BUDGET

PROJECT SOURCES: Total %/Total $/Unit $/RSF $/GSFFirst Mortgage $22,751,985 71% $216,686 $240 $125City Fee Waivers $1,102,500 3% $10,500 $12 $6Land Value $2,200,000 7% $20,952 $23 $12Deferred Developer Fee $2,577,538 8% $24,548 $27 $14Subordinate Debt $3,452,833 11% $32,884 $36 $19Total $32,084,857 100% $305,570 $339 $176

PROJECT USES: Total %/Total $/Unit $/RSF $/GSFAcquisition $2,525,000 8% $24,048 $27 $14Hard Costs $18,925,903 59% $180,247 $200 $104Soft Costs $1,616,340 5% $15,394 $17 $9Financing Costs $2,708,139 8% $25,792 $29 $15Fees, Contingencies, Reserves $6,309,476 20% $60,090 $67 $35Total $32,084,857 100% $305,570 $339 $176

PROJECT SOURCES & USES

60% AMI 80% AMI 120% AMI 140% AMI

Type # of Units % of Total 0.00% 0.00% 100.0% 0.00% Unit SF Total SF Avg Unit Rent Gross Rent Avg $/SF Avg Unit UA Gross UA Net Rent Avg Unit Net Rent

STUDIO 0 0.00% 0 0 0 0 525 0 $1,524 $0 $2.90 $59.00 $0 $0 #DIV/0!1BD 33 31.43% 0 0 33 0 700 23,100 $1,632 $53,856 $2.33 $78.00 $2,574 $51,282 $1,5542BD 57 54.29% 0 0 57 0 918 52,326 $1,959 $111,663 $2.13 $99.00 $5,643 $106,020 $1,8603BD 15 14.29% 0 0 15 0 1,284 19,260 $2,262 $33,930 $1.76 $122.00 $1,830 $32,100 $2,140

Totals 105 100.00% 0 0 105 0 902 94,686 $1,900 $199,449 $2.11 $95.69 $10,047 $189,402 $1,804

BROWARD COUNTY RENTS (2016): BROWARD COUNTY INCOME LIMITS (2016):Type 60% AMI 80% AMI 120% AMI 140% AMI # Persons 60% AMI 80% AMI 120% AMI 140% AMI

Studio $762 $1,016 $1,524 $1,778 1 $30,480 $40,640 $60,960 $71,1201BD $816 $1,088 $1,632 $1,904 2 $34,800 $46,400 $69,600 $81,2002BD $979 $1,306 $1,959 $2,285 3 $39,180 $52,240 $78,360 $91,4203BD $1,131 $1,508 $2,262 $2,639 4 $43,500 $58,000 $87,000 $101,500

Proforma Rents (Weighted Averages):

Unit Mix

Residential Assumptions: Expenses: Budget Per Unit % of TTL Underwriting: Income & Expenses Monthly Annual Per Unit# of Units 105 Advertising $15,750 $150 2.56% Gross Potential $203,577 $2,442,924 $23,266Interior SF 98,325 Management Fee $92,831 $884 15.11% Vacancy Loss $10,179 $122,146 $1,163Avg Unit SF 936 Misc. Administrative $23,100 $220 3.76% Effective Gross Income $193,398 $2,320,778 $22,103Avg Unit Net Rent $1,804 Elevator Maintenance $15,750 $150 2.56% Operating Expenses $51,198 $614,379 $5,851Avg Rent/SF $1.93 Water $28,350 $270 4.61% Net Operating Income $142,200 $1,706,399 $16,251Avg Aux. Income/Unit $135 Electricity $44,100 $420 7.18%Avg Unit Income $1,939 Trash Removal $5,040 $48 0.82% Values: CAP Rate NOI ValueAvg Occupancy 95.00% Payroll $126,000 $1,200 20.51% Project Sale Determination 6.00% $1,706,399 $28,439,982Avg Vacancy 5.00% Payroll Tax $25,200 $240 4.10%Occupied Units 100 Repairs & Maintenance $27,300 $260 4.44%Unoccupied Units 5 Decorating $5,250 $50 0.85%Avg Unit Rent Inc. 2.50% Tenant Relations $5,250 $50 0.85%Avg Unit Exp. Inc. 2.50% Professional $5,250 $50 0.85%Avg Unit Absorption 9 Insurance $105,000 $1,000 17.09%Months to Stabilization 11 Ground Expense $5,250 $50 0.85%

Nonprofit Fee $23,208 $221 3.78%Commercial Assumptions: Land Cost $25,000 $238 4.07%Rentable SF 0 Replacement Reserves $36,750 $350 5.98%Avg Gross Rent Per SF $30.00 Real Estate Taxes $0 $0 0.00%Available Parking Spaces 0 Total $614,379 $5,851 100.00%Monthly Rent Per Space $125.00Gross Potential Income $0 Expense % of EGI 26.47%Occupancy 82.00%Effective Gross Income $0Avg OPEX Per SF $10Expenses $0Net Operating Income $0CAP Rate 6%Value $0

INCOME & EXPENSES

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