Page 126 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat

offers will be taken in 2/3 weeks.

3) Conflicts of interest. Properties listed which directly compete and any possible
ownership positions by you or principals in your firm, which compete.

• Townhomes of Oakleys in Henrico County is a 60% AMI LIHTC property we
are currently marketing. Given the anticipated timing of marketing GP I & II
we will be through the bidding process with Townhomes of Oakleys. This
will enable us to migrate qualified groups who were not selected to
purchase Townhomes of Oakleys to Guardian Place.

4) Valuation Questions:

Pricing structure:

• Sales range: probable range of sales value-high and low- if sold to a non-profit vs profit.
• Please see p.9 and p.11 of the C&W BOV_Guardian Place_FINAL. Pricing
expectations would be the same no matter the type of group. There are several non-
profits who are active on both the affordable and market rate side for multifamily
investment that we expect would be interested in Guardian Place. At the conclusion
of the process UMFS will make the final decision of who will purchase the assets. If
pricing is “close-enough” the desire to work with another non-profit could make up
for any pricing difference at their discretion.
• The stretch price -the price which you feel pushes the outer limits of the market.
• This would be represented as our Aggressive pricing on the valuation summaries for
each asset on p.9 and p.11 in the C&W BOV_Guardian Place_FINAL

• Impact and opportunity of expiring LITHC credits on both buildings-value added. How will
prospective investors view/value/price this and methods to capitalize on it.
• Traditional investors in “market rate” multifamily are competing for LIHTC properties
as a way to compete in the overheated investment market. These investors will
purchase the assets and remain compliant with the affordability through the
extended use period and either sell the asset to a group to increase the rents to
“market rate” or do this themselves. Traditional “market rate” investors will
purchase Guardian Place I specifically to do this given the timing of the expiration of
extended use period. There are many investors that purchase only LIHTC or
affordable properties and these groups would be involved in the process as well.
These groups will purchase the assets to re-syndicate the tax credits at the
expiration of the extended use period.

• Being a non-profit, the general scenario of price spread between a market buyer and non-
profit
• Our experience is that the market buyers are more aggressive than non-profits
however there are circumstances where this is not always the case. We are under
contract to sell a “market rate” 196-unit multifamily asset in Alexandria, Virginia to
Alexandria Housing Development Corporation and they were the highest bidder after
completing the full process. Our team prides itself on uncovering unique types of
capital to compete the broader market and maximize pricing. For Guardian Place