Page 46 - Guardian Broker Questionnaire Summary Complete Package 2 2 22_Neat

1/28/2022
Guardian Place Broker Questionnaire
United Methodist Family Services
Page 2

• The stretch price -the price which you feel pushes the outer limits of the market.

Our range incorporates our stretch price, depending on the investor pool and
competition due to the location, scale, and execution; we believe we can potentially
stretch above 32.25M. We will discover this during our formal marketing process.

• 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.
As stated above, we will have various types of executions, please see below.

 Tax Credit Execution- Tax credit developers will strategize a bridge to
bond/credit execution utilizing the VHDA programs – will not impact
closing timeline
 Preservation Execution- Implementation of self-imposed restrictions
to the property- 80%,60% AMI set asides
 Market Conversion- Value-add execution

• Being a non-profit, the general scenario of price spread between a market buyer and
non-profit-
This will depend on the structures we see buyers implement. For example, we may see
a for-profit affordable owner/non-profit partnership through a tax credit re-
syndication or preservation execution. In our history, nonprofit pricing tends to be
roughly ~20% lower than market pricing and requires a longer closing timeframe due
to financing and equity constraints. We have a few non-profits we are working with
who are well capitalized and have the ability to pay fair market value and close in a
conventional timeline.

• Benefits or limitations in considering separating buildings from land—Long term
ground lease
We are very familiar with the ground lease structure. In essence, buyers prefer to own
the existing real estate and land unless incentivized by the local municipality
regarding potential property tax exemptions.

• Benefits or limitations in doing partial sale—GP I now, II later.
In our experience it is always beneficial to sell the two phases in one transaction. It
allows potential buyers to benefit from the following:
 Economies of scale