Page 20 - FLEXCAVES - INVESTOR DECK JUNE 2025

Risk Mitigation & Success Factors
Conservative Underwriting with Multiple Safety Margins
Development Risk Mitigation:
ARCO GMP Contract eliminates construction cost overruns
Experienced team with 70+ successful project completions
Secured site control through structured purchase option
Pre-approved zoning alignment with intended use
Competitive Positioning:
Limited supply pipeline in
target market area
High barriers to entry through land
constraints and capital requirements
Market Risk Protection:
DCR of 1.25x+ in Year 1 ensures strong loan coverage
Diversified tenant base across three distinct product types
Premium market positioning with demonstrated demand
Multiple revenue streams reducing single-source dependency
Protected brand identity with
comprehensive trademark portfolio
Operational expertise from proven
multifamily management background
Success Indicators Already Achieved:
Martin City site secured
with favorable terms
ARCO partnership and GMP pricing
established
Financial Risk Management:
Conservative leverage of development cost
Strong sponsor equity commitment and track record
Institutional financing relationships supporting project completion
Multiple exit strategies providing liquidity optionality
Brand protection and digital infrastructure
complete
Target market validation through
comparable project performance
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