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Paradigm Development 21

Joe Drabkin is President and co-founder of Paradigm Real Estate Group, which offers triple net commercial real estate investments, asset and property management, brokerage and development projects in the U.S. Our clients range from international high net worth individuals, U.S. high net worth individuals and institutional investors as well as family offices and sovereign funds.

Mr. Drabkin has more than 30 years of industry experience in commercial real estate acquisition, development, strategic planning, management, sales, and leasing. Paradigm Real Estate Group is comprised of four separate operating companies: Paradigm Real Estate Development Group LLC, Paradigm NNN Real Estate Group, LLC, Paradigm Real Estate Operations Group, LLC and Drabkin Asset Management Group LLC

Prior to starting Paradigm, Mr. Drabkin was Vice President and Managing Director for the Stiles Corporation. He opened the Miami office and was responsible for the company’s third party brokerage services, ranging from leasing to syndication and executing development deals.

Before working with Stiles, Mr. Drabkin was Vice President & Managing Director at Adler Realty Services. He was responsible for developing new business and servicing nine million square feet of commercial property.

Joseph Drabkin President & CEO

Paradigm Development Real Estate Group has earned its reputation as experts in the industry. Current projects include a 59-Story tower one block from Brickell City Centre; as well as over 600 multifamily units within Miami-Dade. Paradigm real estate Development has recently signed a contract with Heritage Hospitality Group to build 70-100 new Limited Service flagged hotels over the next 5 years. Paradigm has 12 projects approved and shovel-ready in the expansion pipeline.

Our collective experience totals over 6,000 multifamily units over two decades of ground-up development on the east coast. We are currently working on future multifamily projects in Miami-Dade totaling over 1,000 units that are in various stages of assemblage, entitlement and permitting.

Our focus is on Multifamily & Hospitality solely. We are seeking equity investment partners to complete these projects

Paradigm Development

Management

Joe Drabkin President & CEO

Paradigm Real Estate Group 5201 Blue Lagoon Drive, Suite 200 Miami, Florida 33126 [email protected] + 1 786 518 0841 www.paradigmregp.com

Management 1

Services 3

The Edge on Brickell 4

Key Biscayne Residential 11

82nd & Biscayne 17

NW 7th Street 23

NW 13th St & NW 7th Ave 29

NE 135th Street 35

Development Schedule 42

Safe Harbour 44


Table of Contents

mailto:[email protected]

http://www.paradigmregp.com/


Services

We strategically position assets in the most diverse markets, through the most challenging market conditions. We employ the highest industry standards in all of our processes to ensure regulatory compliance, consistency and service excellence.

Development Property ManagementParadigm Real Estate Group has an unwavering commitment and passion for developing high quality, uniquely designed commercial and residential buildings.

Asset ManagementWe assess the performance of each individual property as well as your overall portfolio to develop a wealth plan which includes to recommend the sale, exchange, or repositioning of your real estate assets, and advise on capital improvements.

Advisory & Brokerage

The real estate requirements of today's businesses are increasingly complex, and they inc reas ing ly impac t a companies' strategic decisions and bottom line. We provide a complete spectrum of commercial real estate advisory and transaction services.


The Edge

Project Type: Hotel, Residential & Marina

Architect: Kobe Karp

Description: Conveniently located within walking distance from Brickell City Center, The Edge will stand out for it’s shape and international prestige. This architectural and engineering challenge will test your visual perception when the 40-foot wide 57-story tower rises over 630 ft high.

Program: 57-story tower with 70 residential and 198 hotel keys. 4 boat s l ips with boardwalk. 1 restaurant at the rooftop and mezzanine level. 1 spa and interior pool with hotel full-service.

THE EDGE ON BRICKELL

The information contained in this promotional material is for illustration purposes only and is subject to change. Statements, figures, calculations, plans, images, and representations are indicative only. Images may include sketches, artist impressions, and computer-generated images. Changes may be made during the further planning or development stages of any development and dimensions, fittings, finishes, ongoing costs and specifications and representations are subject to change without notice. Whilst all reasonable care has been taken in providing this information the developer and its related companies and their representatives, consultants and agents accept no responsibility for the accuracy of any information contained herein or for any action taken in reliance thereon by any party whether purchaser potential purchaser or otherwise. Prospective purchasers must make their own inquiries to satisfy themselves as to all aspects of any Paradigm Real Estate Group project, design or product and further should seek independent legal and financial advice in relation to all of the information contained herein. The information contained in this material is a guide only and does not constitute an offer, inducement, representation, warranty or contract.

2


The Edge


The EdgeLand Purchase Costs

Land Purchase 45,000,000Aquistion Period 0 months Jan-18

Construction AssumptionsProject Start Date Jan-18

Preconstruction Ends Jan-18

Construction Month - Start 12 months Jan-19 48

Construction Period (Months) 36 months Jan-22

Disposition of Asset 24 months Jan-24Residential Pre-sales Start 24 months Jan-20Residentail Pre-sales End 24 months Jan-22

Hotel Begin Operating Jan-25

Construction Loan AssumptionsConstruction LTC 100.00% 184,177,148

Construction Loan Interest Rate 10.00%Closing & Finance Costs 1.00%Repayment Month after Completion -

Hold Period 24 months Jan-24

Interest Rate of Permanent Financing 5.00%Permanen Financing Periods 10 Years Jan-22

Permanent Financing Assumptions


The Edge

2

2

RESIDENTIAL WATERFRONT DEVELOPMENT


The information contained in this promotional material is for illustration purposes only and is subject to change. Statements, figures, calculations, plans, images, and representations are indicative only. Images may include sketches, artist impressions, and computer-generated images. Changes may be made during the further planning or development stages of any development and dimensions, fittings, finishes, ongoing costs and specifications and representations are subject to change without notice. Whilst all reasonable care has been taken in providing this information the developer and its related companies and their representatives, consultants and agents accept no responsibility for the accuracy of any information contained herein or for any action taken in reliance thereon by any party whether purchaser potential purchaser or otherwise. Prospective purchasers must make their own inquiries to satisfy themselves as to all aspects of any Paradigm Real Estate Group project, design or product and further should seek independent legal and financial advice in relation to all of the information contained herein. The information contained in this material is a guide only and does not constitute an offer, inducement, representation, warranty or contract. Rendering use approved by 33intracoastal for marketing purposes on 02/26/18

Project Type: Residential and Marina

Description: Last undeveloped land facing the Biscayne Bay. Premium location for its waterfront view, access to schools and religious community. Perfect location to raise a family with access to a marina within a few steps from home.

Program: 4-story building with 66 residential units. 14 boat slips with boardwalk. 34 one-bedroom, 27 two-bedroom and 5 three-bedroom units.

Key Biscayne Residential

2




SHULI’S MIXED-USE DEVELOPMENT

Project Type: Residential, Office and Retail

D e s c r i p t i o n : M i x e d - u s e development where people can live, work and play. Located on a metropolitan dense area, Shuli’s is conven ien t l y and e f f i c ien t l y designed to maximize

Program: 2 towers with 600 units. 10,000sqft of retail space and 60,000sqft of office space. The total building area is 563,965 sqft.


82nd and Biscayne


82nd and BiscayneSources of Funds

Partner Equity 35.00% 49,637,828

Construction LTC 65.00% 92,184,537Total 100.00% 141,822,364

Costs $/NSF

Acquisition & Land CostsLand Cost 21,200,000 34.04Total Acquisition Costs 21,200,000 34.04

Construction CostsBuilding Construction 104,460,698 167.72General Contractor Fee 0 0.00

Total Project Costs 104,460,698 167.72

Soft CostsTaxes & Insurance 509,167 0.82Architecture & Engineering 2,875,000 4.62Legal/Closing/Accounting 509,167 0.82Development Fee 5,419,167 8.70Builders Risk & General Insurance 1,029,167 1.65General & Administrative 520,000 0.83Marketing 450,000 0.72Financing Fee 1,040,000 1.67Consultants/Appraiers 520,000 0.83Contingency 2,090,000 3.36Amenity Area/ Model Unit FF&E 160,000 0.26Impact Fees/Permits 1,040,000 1.67

Total Soft Costs 16,161,667 25.95

TOTAL CAPITALIZATION 141,822,364 227.70% of Total Capitalization

Lease Up (Income)/Loss (14,552,824) (23.37)

TOTAL DEVELOPMENT COST 127,269,540 204.34

Deferred CostsConstruction Loan 13,859,257 22.25Deferred Mezzanine Interest 0 0.00Permanent Loan Interest 2,630,284 4.22Comissions on Sale 10,766,764Leasing Commissions 0 0.00

Total Deferred Costs 27,256,305 43.76

TOTAL PROJECT COST 154,525,845 248.10

UsesUses of Funds


82nd and Biscayne

Unit Type

# of Units % of MixAvg Unit

SFTotal SF

Base Rent /

Month

Monthly Market

Rent PSF

Stabalized

Monthly Market

Rent / Unit

Monthly

Stabalized Rent

PSF

Studios 51 8.5% 440 22,440 925$ 2.10 $1,011 2.30 1 Bedroom Units 357 59.5% 600 214,200 1,300$ 2.17 $1,421 2.37 2 Bedroom Units 178 29.7% 1,050 186,900 2,320$ 2.21 $2,535 2.41 3 Bedroom Units 14 2.3% 1,250 17,500 3,100$ 2.48 $3,387 2.71 Total / Weighted Avg 600 100.0% 735 441,040 $1,613 $2.18 $1,762 2.40

Unit Type # of Units % of MixAvg Unit

SFTotal SF

Annual Triple

Net Rent

Annual CAM

Reimb.

Total Monthly

Payment PSF

Monthly Market

Rent PSF

Retail 1 14.3% 10,000 10,000 35.0$ 7.5$ $42.5 3.54 Office 1 85.7% 60,000 60,000 35.0$ 1.1$ $36 2.92 Total / Weighted Avg 2 100.0% 52,857 70,000 $35 $2 $37 3.01

Item # of Units % of Units

$ / Unit /

Month

Total Monthly

Amount

Total Annual

Amount

Annual % of

Other Income

Garage Income 200 33.3% $75 $15,000 $180,000 16.1%Water/ Sewer Collection Units/Month600 100.0% $45 $27,000 $324,000 29.0%Other Income Per Unit600 100.0% $85 $51,000 $612,000 54.8%Total $93,000 $1,116,000 100.0%

Shuli's Income Assumptions

OTHER INCOME

UNIT MIX

UNIT MIX

PROFITABILITY

Asset Disposition 215,335,286 346Less: Total Project Cost (154,525,845) (248)NET PROFIT 60,809,441 98

Stabalized Rent PSF 2.40NOI to Cost 8.44%Leveraged IRR 20.86%Combined NOI 11,969,691Return on Cost 139.35%


82nd and BiscayneShuli's

Income Total Unit Sq. Ft. % of Rev

Annual Base Rental 12,688,331 21,147 28.77 96.75%

Garage Income 180,000 300 0.41 1.37%

Utility Collections 324,000 540 0.73 2.47%

Other Residential Income 612,000 1,020 1.39 4.67%

Vacancy and Collection Loss: (690,217) (1,150) (1.56) -5.26%

Total Income 13,114,114 21,857 29.73 100.00%

Operating ExpensesReal Estate Tax 720,000 1,200 1.63 5.49%

Insurance 360,000 600 0.82 2.75%

Repairs and Maintenance 117,000 195 0.27 0.89%

Redecorating and Turnover 138,000 230 0.31 1.05%

Payroll & Benefits 600,000 1,000 1.36 4.58%

General and Administrative 138,000 230 0.31 1.05%

Marketing, Advertising, Referral 165,000 275 0.37 1.26%

Contract Services 600,000 1,000 1.36 4.58%

Utilities 438,000 730 0.99 3.34%

Management Fee 3% 393,423 418 0.89 3.00%

Total Operating Expenses 3,669,423 5,878 8.32 27.98%

Net Operating Income 9,444,691 15,979 21.41 72.02%

Replacement Reserve 180,000 300 0.20 1.37%

Proforma Operating Statement

Shuli's

REVENUE Total Sq. Ft. Base Rent 2,525,000$ 36.07$ CAM Reimbursements 75,750$ 1.08$ Vacancy (Rent and Reimb.) -$ TOTAL REVENUES 2,600,750$ 37.15$

Operating Expenses Real Estate Taxes -$ -$ Repairs & Maintenance -$ -$ Contract Services -$ -$ Maintenance Payroll -$ -$ Administrative Payroll -$ -$ Utilities -$ -$ General and Administrative -$ -$ Insurance -$ -$ Management Fee 3% 75,750$ 1.08$

Total Operating Expenses 75,750$ 1.08$

Net Operating Income 2,525,000$ 36.07$

Retail/ Office Proforma Operating Statement


82nd and Biscayne

Totals Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5Revenue Growth 3.00% 3.00% 3.00% 3.00% 3.00%Expense Growth 3.00% 3.00% 3.00% 3.00% 3.00%

Rental Income 16,071,886 - - - 4,123,707 10,943,685 1,004,493 Retail Income 3,198,333 - - - 820,625 2,177,813 199,896 Other Income 1,413,600 - - - 362,700 962,550 88,350 Potential Gross Income 20,683,819 - - - 5,307,032 14,084,048 1,292,739 Operating Expenses (6,130,995) - - - (2,155,786) (3,669,423) (305,785) Residential Net Income 14,552,824 - - - 3,151,246 10,414,624 986,953 Reserves for Replacement (375,000) - - - (180,000) (180,000) (15,000) Net Operating Cash Flow 14,177,824 - - - 2,971,246 10,234,624 971,953

Adjusted NOI (Exc Reserve) 14,552,824 - - - 3,151,246 10,414,624 986,953 Asset Disposition 215,335,286 - - - - - 215,335,286 Brokerage Fee on Sale (10,766,764) - - - - - (10,766,764) Total Net Residential Revenues 219,121,346 - - - 3,151,246 10,414,624 205,555,475

Less: Development Cost (excl. Interest)Land 21,200,000 21,200,000 - - - - - Hard 104,460,698 - 52,230,349 52,230,349 - - - Soft 16,161,667 1,305,000 7,406,667 7,450,000 - - -

Total 141,822,364 22,505,000 59,637,016 59,680,349 - - -

Net Cash Flow Before Interest 77,298,981 (22,505,000) (59,637,016) (59,680,349) 3,151,246 10,414,624 205,555,475

Permanent LoanLoan Draws (105,530,120) - - - - (105,530,120) - Interest Paid (2,630,284) - - - - (1,755,657) (874,627) Principal Paid 0 - - - - - - Total Payment 108,160,404 - - - - 2,266,034 105,894,370 Ending Balance After Permanent 74,668,697 (22,505,000) (59,637,016) (59,680,349) 3,151,246 113,678,711 99,661,105

Construction LoanDraws (92,184,537) - (32,504,188) (59,680,349) - - - Interest Due (13,859,257) - (444,243) (3,600,850) (5,773,778) (4,040,386) - Repayments from Cash Flow or Sale 106,043,794 - - - - 106,043,794 - Ending Balance After Construction Loan 60,809,441 (22,505,000) (27,132,828) - 3,151,246 7,634,917 99,661,105

EquityFunding (49,637,828) (22,505,000) (27,132,828) - - - - Repayments from Cash Flow 0 - - - - - - Ending Balance 110,447,268 - - - 3,151,246 7,634,917 99,661,105

Shuli's Annual Cash Flow


82nd and Biscayne

Rent Per Square Foot

13.8% 2.34 2.37 2.40 2.43 2.46 2.49

5.00% 16.0% 16.4% 16.8% 17.3% 17.7% 18.1%

5.25% 14.4% 14.9% 15.3% 15.7% 16.2% 16.6%

5.50% 13.0% 13.4% 13.9% 14.3% 14.7% 15.1%

5.75% 11.6% 12.1% 12.5% 12.9% 13.3% 13.7%

6.00% 10.3% 10.8% 11.2% 11.6% 12.0% 12.4%

6.25% 9.1% 9.5% 10.0% 10.4% 10.8% 11.2%

Rent Per Square Foot2.23x 2.34 2.37 2.40 2.43 2.46 2.49x

5.00% 2.52x 2.58x 2.64x 2.70x 2.77x 2.83x

5.25% 2.31x 2.37x 2.43x 2.49x 2.54x 2.60x

5.50% 2.12x 2.17x 2.23x 2.29x 2.34x 2.40x

5.75% 1.94x 2.00x 2.05x 2.10x 2.16x 2.21x

6.00% 1.78x 1.83x 1.89x 1.94x 1.99x 2.04x

0.06x 1.63x 1.68x 1.73x 1.79x 1.84x 1.89x


20.9% 2.34 2.37 2.40 2.43 2.46 2.49

5.00% 24.3% 25.0% 25.7% 26.3% 27.0% 27.6%

5.25% 21.9% 22.6% 23.3% 24.0% 24.6% 25.3%

5.50% 19.5% 20.2% 20.9% 21.6% 22.3% 23.0%

5.75% 17.1% 17.9% 18.6% 19.3% 20.1% 20.7%

6.00% 14.8% 15.6% 16.4% 17.1% 17.8% 18.5%

6.25% 12.6% 13.4% 14.1% 14.9% 15.7% 16.4%

Exit Cap Rate

Exit Cap Rate

Project Equiy Return

SENSITIIVITY TABLES

Project IRR

Project Equity Multiple

Exit Cap Rate:

Structure Total ReturnEquity Invested Capital 49,637,828 Percent of Equity 100%Equity Net Profit 60,809,441 Equity Multiple of Capital 2.23xIRR 20.86%Total Return 110,447,268


Edmonson Center –Commercial and Residential

Project Type: Mixed-Use. Residential and Commercial

Description: Edmonson Center is a mixed use commercial and residential project that will be a catalyst for neighborhood restoration and serve as an icon in the heart of Miami’s historic Overtown district. The Project will feature 600 residential rental apartments, consisting of affordable housing to satisfy pent-up demand in the Overtown community, plus workforce and market rate housing.

Program: 2 towers with 600 units. 10,000sqft of retail space and 60,000sqft of office space. The total building area is 563,965 sqft.

The information contained in this promotional material is for illustration purposes only and is subject to change. Statements, figures, calculations, plans, images, and representations are indicative only. Images may include sketches, artist impressions, and computer-generated images. Changes may be made during the further planning or development stages of any development and dimensions, fittings, finishes, ongoing costs and specifications and representations are subject to change without notice. Whilst all reasonable care has been taken in providing this information the developer and its related companies and their representatives, consultants and agents accept no responsibility for the accuracy of any information contained herein or for any action taken in reliance thereon by any party whether purchaser potential purchaser or otherwise. Prospective purchasers must make their own inquiries to satisfy themselves as to all aspects of any Paradigm Real Estate Group project, design or product and further should seek independent legal and financial advice in relation to all of the information contained herein. The inforation contained in this material is a guide only and does not constitute an offer, inducement, representation, warranty or contract.

NW 7th St.


NW 7th St.Sources of Funds

Partner Equity 35.00% 48,942,828

Construction LTC 65.00% 90,893,823Total 100.00% 139,836,651

Costs $/NSF

Acquisition & Land CostsLand Cost 21,200,000 29.51Total Acquisition Costs 21,200,000 29.51

Construction CostsBuilding Construction 102,729,151 143.02General Contractor Fee 0 0.00

Total Project Costs 102,729,151 143.02

Soft CostsTaxes & Insurance 499,375 0.70Architecture & Engineering 2,820,000 3.93Legal/Closing/Accounting 499,375 0.70Development Fee 5,339,375 7.43Builders Risk & General Insurance 1,019,375 1.42General & Administrative 510,000 0.71Marketing 450,000 0.63Financing Fee 1,030,000 1.43Consultants/Appraiers 510,000 0.71Contingency 2,050,000 2.85Amenity Area/ Model Unit FF&E 150,000 0.21Impact Fees/Permits 1,030,000 1.43

Total Soft Costs 15,907,500 22.15

TOTAL CAPITALIZATION 139,836,651 194.68% of Total Capitalization

Lease Up (Income)/Loss (15,634,369) (21.77)

TOTAL DEVELOPMENT COST 124,202,282 172.91

Deferred CostsConstruction Loan 13,676,934 19.04Deferred Mezzanine Interest 0 0.00Permanent Loan Interest 2,593,747 3.61Comissions on Sale 11,510,000Leasing Commissions 0 0.00

Total Deferred Costs 27,780,681 38.68

TOTAL PROJECT COST 151,982,963 211.59

UsesUses of Funds


NW 7th St.

PROFITABILITY

Asset Disposition 230,200,004 320Less: Total Project Cost (151,982,963) (212)NET PROFIT 78,217,041 109

Stabalized Rent PSF 2.53NOI to Cost 9.14%Leveraged IRR 25.19%Combined NOI 12,787,250Return on Cost 151.46%

Unit Type

# of Units % of MixAvg Unit

SFTotal SF

Base Rent /

Month

Monthly Market

Rent PSF

Stabalized

Monthly Market

Rent / Unit

Monthly

Stabalized Rent

PSF

Studios 51 8.5% 440 22,440 950$ 2.16 $1,038 2.36 1 Bedroom Units 357 59.5% 600 214,200 1,450$ 2.42 $1,584 2.64 2 Bedroom Units 178 29.7% 1,050 186,900 2,320$ 2.21 $2,535 2.41 3 Bedroom Units 14 2.3% 1,250 17,500 3,100$ 2.48 $3,387 2.71 Total / Weighted Avg 600 100.0% 735 441,040 $1,704 $2.33 $1,862 2.53

Unit Type # of Units % of MixAvg Unit

SFTotal SF

Annual Triple

Net Rent

Annual CAM

Reimb.

Total Monthly

Payment PSF

Monthly Market

Rent PSF

Retail 1 14.3% 10,000 10,000 35.0$ 7.5$ $42.5 3.54 Office 1 85.7% 60,000 60,000 35.0$ 1.1$ $36 2.92 Total / Weighted Avg 2 100.0% 52,857 70,000 $35 $2 $37 3.01

Item # of Units % of Units

$ / Unit /

Month

Total Monthly

Amount

Total Annual

Amount

Annual % of

Other Income

Garage Income 387 64.5% $75 $29,025 $348,300 27.1%Water/ Sewer Collection Units/Month600 100.0% $45 $27,000 $324,000 25.2%Other Income Per Unit600 100.0% $85 $51,000 $612,000 47.7%Total $107,025 $1,284,300 100.0%

Shuli's

Income Assumptions

OTHER INCOME

UNIT MIX

UNIT MIX


NW 7th St.Land Purchase Costs

Land Purchase 21,200,000Aquistion Period 5 months Jun-18

Construction AssumptionsProject Start Date Jan-18

Preconstruction Ends Jun-18

Construction Month - Start 12 months Jan-19 36

Construction Period (Months) 24 months Jan-21

Disposition of Asset 24 months Jan-23Residential Pre-sales Start 0 months Jan-18Residentail Pre-sales End 0 months Jan-18

Hotel Begin Operating Jan-23

Construction Loan AssumptionsConstruction LTC 65.00% 90,893,823

Construction Loan Interest Rate 6.00%Closing & Finance Costs 1.00%Repayment Month after Completion 20

Permanen Financing Begins Sep-22

Hold Period 24 months Jan-23

Interest Rate of Permanent Financing 5.00%Permanen Financing Periods 30 Years Sep-22

Permanent Financing Assumptions

Number of Residential Units 600

Residential RSF per Unit 735 SF

Residential RSF 441,040 SF

Gross Residential SF 512,837 SF

Retail/Office SF 70,000 SF

Residential Ratio 71.40%Residential Efficiency Ratio 14.00%Total Building Area 718,287

Initial Vacancy Rate Residential 95.00% $ 30.40 psf/year

Year 1 Rent 2.53 $ 1,862.12 psf/year

Other Income Per Month 107,025 $178.38

Operating Expenses Residential (as a $ PSF) $0.70 513 /unit/mnth$

CapEx Reserves 300$ per unit/year

Lease-Up Period 18 months Jul-22

Residential Vacancy Rate 5.00%Residential Commision on Sale 6.00%Retail/Office Vacancy Rate 0.00%Retail/Office Commissions 3.00%Retail/Office Lease Term 10 Retail Annual Rent Per SF $35

Retail and Office CAM $2

Terminal Cap Rate (Hotel) 5.50%Commission on Sale 5.00%

Lease-Up & Operations Assumptions

Project Characteristics


Totals Yr 0 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5Revenue Growth 3.00% 3.00% 3.00% 3.00% 3.00%Expense Growth 3.00% 3.00% 3.00% 3.00% 3.00%

Rental Income 16,982,499 - - - 4,357,352 11,563,741 1,061,406 Retail Income 3,198,333 - - - 820,625 2,177,813 199,896 Other Income 1,626,780 - - - 417,398 1,107,709 101,674 Potential Gross Income 21,807,612 - - - 5,595,374 14,849,262 1,362,976 Operating Expenses (6,173,243) - - - (2,170,641) (3,694,709) (307,892) Residential Net Income 15,634,369 - - - 3,424,733 11,154,553 1,055,083 Reserves for Replacement (375,000) - - - (180,000) (180,000) (15,000) Net Operating Cash Flow 15,259,369 - - - 3,244,733 10,974,553 1,040,083

Adjusted NOI (Exc Reserve) 15,634,369 - - - 3,424,733 11,154,553 1,055,083 Asset Disposition 230,200,004 - - - - - 230,200,004 Brokerage Fee on Sale (11,510,000) - - - - - (11,510,000) Total Net Residential Revenues 234,324,373 - - - 3,424,733 11,154,553 219,745,087

Less: Development Cost (excl. Interest)Land 21,200,000 21,200,000 - - - - - Hard 102,729,151 - 51,364,576 51,364,576 - - - Soft 15,907,500 1,280,000 7,292,500 7,335,000 - - -

Total 139,836,651 22,480,000 58,657,076 58,699,576 - - -

Net Cash Flow Before Interest 94,487,722 (22,480,000) (58,657,076) (58,699,576) 3,424,733 11,154,553 219,745,087

Permanent LoanLoan Draws (104,064,219) - - - - (104,064,219) - Interest Paid (2,593,747) - - - - (1,731,269) (862,478) Principal Paid 0 - - - - - - Total Payment 106,657,966 - - - - 2,234,557 104,423,409 Ending Balance After Permanent 91,893,975 (22,480,000) (58,657,076) (58,699,576) 3,424,733 112,984,216 115,321,678

Construction LoanDraws (90,893,823) - (32,194,248) (58,699,576) - - - Interest Due (13,676,934) - (443,571) (3,555,525) (5,693,575) (3,984,262) - Repayments from Cash Flow or Sale 104,570,757 - - - - 104,570,757 - Ending Balance After Construction Loan 78,217,041 (22,480,000) (26,462,828) - 3,424,733 8,413,459 115,321,678

EquityFunding (48,942,828) (22,480,000) (26,462,828) - - - - Repayments from Cash Flow 0 - - - - - - Ending Balance 127,159,869 - - - 3,424,733 8,413,459 115,321,678

Shuli's Annual Cash Flow

NW 7th St.


NW 7th St.Structure Total ReturnEquity Invested Capital 48,942,828 Percent of Equity 100%Equity Net Profit 78,217,041 Equity Multiple of Capital 2.6xIRR 25.19%Total Return 127,159,869


16.5% 2.47 2.50 2.53 2.56 2.59 2.62

5.00% 18.7% 19.1% 19.5% 19.9% 20.3% 20.7%

5.25% 17.1% 17.5% 18.0% 18.4% 18.8% 19.2%

5.50% 15.7% 16.1% 16.5% 16.9% 17.3% 17.7%

5.75% 14.3% 14.7% 15.1% 15.5% 15.9% 16.3%

6.00% 13.0% 13.4% 13.8% 14.2% 14.6% 15.0%

6.25% 11.7% 12.1% 12.5% 12.9% 13.3% 13.7%

Rent Per Square Foot2.60x 2.47 2.50 2.53 2.56 2.59 2.62x

5.00% 2.91x 2.98x 3.04x 3.10x 3.16x 3.23x

5.25% 2.68x 2.74x 2.80x 2.86x 2.92x 2.98x

5.50% 2.48x 2.53x 2.59x 2.65x 2.71x 2.76x

5.75% 2.29x 2.34x 2.40x 2.45x 2.51x 2.56x

6.00% 2.11x 2.17x 2.22x 2.27x 2.33x 2.38x

0.06x 1.95x 2.01x 2.06x 2.11x 2.16x 2.21x


25.2% 2.47 2.50 2.53 2.56 2.59 2.62

5.00% 28.4% 29.1% 29.7% 30.3% 30.9% 31.4%

5.25% 26.1% 26.7% 27.4% 28.0% 28.6% 29.2%

5.50% 23.8% 24.5% 25.1% 25.7% 26.4% 27.0%

5.75% 21.6% 22.3% 22.9% 23.6% 24.2% 24.8%

6.00% 19.5% 20.1% 20.8% 21.5% 22.1% 22.7%

6.25% 17.3% 18.0% 18.7% 19.4% 20.0% 20.7%

Exit Cap Rate

Exit Cap Rate

Project Equiy Return

SENSITIIVITY TABLES

Project IRR

Project Equity Multiple

Exit Cap Rate:


NW 13th St. & NW 7th Ave NW 13th St. & NW 7th Ave - Residential and Commercial

Project Type: Mixed-Use. Residential and Commercial

Description: This development is a highly efficient development priced for the young and modern professionals with the need for individual transportation in a central business district. The building has 1.12 parking spaces/ units.

Program: 2 towers with 360 units. 15,000sqft of retail space. The average SF is 676 and $1527 per unit.

The information contained in this promotional material is for illustration purposes only and is subject to change. Statements, figures, calculations, plans, images, and representations are indicative only. Images may include sketches, artist impressions, and computer-generated images. Changes may be made during the further planning or development stages of any development and dimensions, fittings, finishes, ongoing costs and specifications and representations are subject to change without notice. Whilst all reasonable care has been taken in providing this information the developer and its related companies and their representatives, consultants and agents accept no responsibility for the accuracy of any information contained herein or for any action taken in reliance thereon by any party whether purchaser potential purchaser or otherwise. Prospective purchasers must make their own inquiries to satisfy themselves as to all aspects of any Paradigm Real Estate Group project, design or product and further should seek independent legal and financial advice in relation to all of the information contained herein. The inforation contained in this material is a guide only and does not constitute an offer, inducement, representation, warranty or contract.


NW 13th St. & NW 7th Ave


NE 135th St,135th St - Residential and Retail

Project Type: Residential and Retail

Description: Mixed-use development in one of the emerging areas in Miami. Quick absorption of units is expected for the project. Low construction cost and land basis provides an opportunity for high yield.

Program: 220 residential units with 9,900sqft of retail space. Average unit size is 770sqft and average price $1,500/sqft.



NE 135th St.


Development Schedule

This memorandum contains statements, estimates and projections that are forward-looking (collectively, "forward-looking statements”). When used in this report, the words " anticipate," " assume," “become ”, " believe”, "contemplate ”, " continue”, "could”, "designed”, “estimate”, “expect”, “going forward”, “future”, “hopeful”, “intend”, “look forward”, “may”, "might”, "opportunity”, “pending”, “plan”, “potential”, “project”, “scheduled”, "shall”, "should”, ”target”, "think”, ”to be”, “upcoming”, "well positioned”, "will”, "wish”, “would”, other variations on such words and similar terminology, if and to the extent used, are intended to identify such forward-looking statements. All forward-looking statements are based on the current expectations and beliefs of the management of the general partner , Paradigm Development Group, LLC (the "General Partner”), concerning future events that are subject to substantial risks and uncertainties which may cause the actual results, performance or achievements of the Fund and/or its investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that may cause or contribute to those potential differences include, but are not limited to, the following: national and local economic conditions; the terms of governmental laws, rules and regulations (including tax regulations) that affect the Fund and/or its investments and interpretations of those laws, rules and regulations; financing risks, including the inability of the Fund to obtain financing on favorable terms and the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; changes in the rate of inflation and interest rates; real estate risks, including variations of real estate values and the general economic climate in local markets; competition for tenants, imposition of rent controls, unfavorable enactments of zoning and other governmental laws , possible environmental liabilities, the prohibitive cost of casualty , windstorm, flood and other insurance, the occurrence of natural disasters, possible vandalism and competition; the Fund's ability or inability to acquire investments on the terms or at the costs currently contemplated and the timing of such investments; as well as other risks and uncertainties, some of which may not currently be foreseeable.

The financial projections in this memorandum were prepared by the General Partner's management based on a number of estimates and assumptions which are described in this memorandum. The financial projections in this memorandum represent no more than an orderly presentation of results that might be achieved if all of the estimates and assumptions on which they are based were correct and fully achieved. Although such estimates and assumptions are considered reasonable by the General Partner, they are inherently subject to significant business, economic, real estate, financing, competitive, regulatory and other conditions, uncertainties, risks, contingencies and unforeseen changes, many of which are beyond the general partner 's control. In addition, many of such estimates and assumptions relate to future business decisions that are subject to change. As a result, there can be no assurance that any of such financial projections, or the estimates or assumptions on which they are based, can or will be achieved or that they are accurate. The projections must be reviewed with this general understanding and with careful attention paid to the estimates and assumptions described in this memorandum.

The General Partner and the Fund do not in any way represent, warrant or guarantee that the projections, or the estimates or assumptions on which they are based, will be achieved (in whole or in part).

All information in this memorandum speaks only as of the date of this memorandum. Neither the Fund nor the General Partner has any obligation to update any forward-looking statements to conform to actual results, performance or achievements or changes in the expectations or beliefs of the management of the Fund or the General Partner.


Safe Harbor

Joe Drabkin President & CEO

Paradigm Real Estate Group 5201 Blue Lagoon Drive, Suite 200

Miami, Florida 33126 [email protected]

+ 1 786 518 0841 www.paradigmregp.com


mailto:[email protected]

http://www.paradigmregp.com/

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