Page 39 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat

• 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.
Northmarq anticipates heightened interest in Guardian Place due to the expiring LITHC
credits currently in place. The asset will likely attract activity from qualified buyers
nationwide and will present the market with an operational value-add opportunity that rarely
becomes available in locations such as Richmond, VA.

• Being a non-profit, the general scenario of price spread between a market buyer and non-
profit
While they remain competitive, Non-Profits in the multifamily marketplace are currently
being priced out of Primary and Secondary markets across the U.S. While the landscape has
the potential to change in the years to come, Private and Institutional buyers currently have
access to a multitude of debt and equity vehicles that don’t include the restrictions that
many non-profits must consider prior to funding.

• Benefits or limitations in considering separating buildings from land—Long term ground
lease
Northmarq does not recommend leasing the ground at this time – In the current economic
climate, leasing the ground would most certainly weaken the pool of potential buyers and
reduce the overall value of the property.
• Benefits or limitations in doing partial sale—GP I now, II later
Northmarq does not recommend a partial sale at this time – Given the size of the asset,
potential buyers would seek to purchase both phases of the property in order to capitalize
on economies of scale by leveraging their management capabilities within the market.
Additionally, a partial sale would lessen the buyer pool and ultimately limit the value of the
property due to the modest unit count in each individual phase.
Please provide comparable sales data to support your thinking.
Separate Attachment
• Method of sale—Guidance--Offering price or not – call for best and final.
Northmarq recommends a formal marketing process in which the Investment Sales team will
provide pricing guidance to qualified buyers. It is anticipated that Guardian Place will likely
generate 2 rounds of initial bidding with a Best & Final round at the culmination of Buyer
Interviews.

6) Any operational or management recommendations to improve/enhance NOI prior to
marketing.
• Increase rents on new leases by 5-10%
• Reduce controllable expenses where possible
• Delay any major capital improvement projects unless absolutely necessary
• Focus on curb appeal: The conditions of the grounds and common areas will play an
important role in the touring phase of the marketing process

7) Any challenges or additional information/materials which could speed up or assist in the
sales process.
Potential buyers will likely need to see financials (T-12’s & RR’s) for Phase I & II combined in
excel format. In the event that this is not possible under current management, Northmarq has
the capability of completing this task with the use of proprietary software.