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HomeMy WebLinkAboutCRA-R-21-0037 Caprock123 ProposalCaprock 123, LLC Historic Overtown, Miami, Florida PROJECT PEACH 50% AMI WORK -LIVE RESIDENCES + NON-PROFIT OFFICES + LOCAL ENTREPRENEUR FOCUSED COMMERCIAL FRONTAGE Presentation to: OMNI Community Redevelopment Agency Caprock 123, LLC 123 NW 14 St, Miami, FL 33136 Contact: Laura Weinstein -Berman, AIA laura@Iwassocinc.com I www.lwassocinc.com TABLE OF CONTENTS SECTION 1 DEVELOPMENT CONCEPT 3 SECTION 2 FINANCIALS 9 SECTION 3 QUALIFICATIONS AND EXPERIENCE 17 SECTION 4 CURRENT DEVELOPMENTS & 27 COMPARABLE PROJECTS SECTION 5 ARCHITECTURE & OPERATIONS 31 SECTION 6 PRESS 39 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 2 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL SECTION 1 DEVELOPMENT CONCEPT 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL CONCEPT PROJECT PEACH will incorporate and complement the historic Overtown neighborhood and the 14th Street mixed -use commercial corridor in the pursuit of a high -quality infill development which brings vitality back to the streetscape. The mixed -use development will provide opportunities for local entrepreneurs, micro -businesses, and non -profits to have a central address which serves the Overtown residents as a "Village Center." Access to financial, health, and community programming will be prioritized. The upper work -live residences will target 50% AMI residents with restrictive covenants totaling 50 years of affordability and high -quality investment within one of Miami's most centrally - located neighborhoods, near to major employment centers, transit, and services. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 4 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL LEGACY OF ENTREPRENEURSHIP IN OVERTOWN The name "PROJECT PEACH" is a reference to the once prominent, locally - owned and operated Cola -Nip Bottling Company. Though the physical structure was demolished, the entrepreneurial spirit inherent to the once -segregated Overtown neighborhood lives on in Project Peach. Cola -Nip bottled two popular flavors, "Peach Whip" and "Orange Smile." The name "Project Peach" pays homage to the legacy of community and a "Village" gathering space in the approximately four-story mixed -use new development at 123 NW 14 St. To The Independent Battlers UNITED •STATES .. rwr Rr Entrrrer 6iRi r Rl�u In In+ T .av, ti ik ��'�- _ - y � 14'J COLA 51@{VP w M IfrYa — r y I � � -� r+ing THE rMIRST. p� .As cO,lw ; .r..m�mrma�. •- ..m_N Rr ;�� r owRL�ats . r ,w r.....- •Pr. - ;lar.M.,..er. •cae tlAeR•s.,rn..r.�.,�. ,... `:i� ,. EYFRY GALLON Gl1ARARTFFD .' -.. .;_`••^." l;bi.l A-— Wme FwLd F_ COLR Ar 'C _ ` � i' • _. ) - _- r.r Pray •M friM1x CZ NIP BEVERAGE CO. r Images: (Left) Former J&5 Building where the Cola -Nip Bottling Company was located in Overtown; (Center) Advertisement targeting independent bottlers, c.19SOs; (Right) Bottling process PROJECT STRENGTHS • COMMUNITY INVESTMENT: As a development team, we have the ability to execute the project through our architecture, engineering, planning, municipal, and financing networks. • SUSTAINABILITY AND RESILIENCY: Our deep commitment to sustainability will include LEED standards, passive building technologies, and low -impact construction practices. A primary focus of the project will be promoting the social resiliency of Historic Overtown with the retention of targeted 50% AMI residences, non-profit office space, and cost-efficient commercial space for local entrepreneurs and micro -businesses. • CONTEXTUAL DESIGN: Our award -winning and world -class design team focuses on developing a fully -integrated project with the expressed design objectives in the City's Comprehensive Plan and the OMNI CRA Vision Plan. The project will honor the historical legacy of Overtown, while ensuring the future adaptability of the site and the NW 14 St commercial corridor. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent ofCAPROCK 123, LLC. Mixed -Use SO% AMI Residences rJ Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL PROJECTED TIMELINE • Site control 09/10/2021 (completed) • Florida Community Loan Fund Term Sheet 10/08/2021 (completed) • CRA Board approval 10/22/2021 • Predevelopment commence 10/25/2021 • Permitting commence Q1 2022 • Construction commence Q4 2022 • Construction completion Q2 2024 ACQUISITION SUMMARY Site control completed 09/10/2021 Approx 3,660 SF of vacant land along NW 14 St commercial corridor Address: 123 NW 14 ST, Miami, FL 33136 DEVELOPMENT SUMMARY • Approx 10,800 GSF building in four-story structure; high -quality construction, LEED-certified with passive building technologies • Three work -live residences (approx 850 SF each) targeted under 50% AMI rental rates • Residences feature open floor plans, cross -ventilation to natural breezes and sunlight, private balconies, stainless steel appliances, washer and dryer in every unit, broadband internet access, dedicated workspace, high -quality finishes, parking space included • Ground floor commercial-- approx 600 RSF; potential Catalyst incubator space or cafe/computer/community hub; intended for local entrepreneurs and micro -businesses; ability of parking area to be adapted to future retail/commercial use once transit feasible • Second floor offices-- approx 2,000 RSF, large conference/meeting room, two private office/meeting spaces; pop-up work station with full views along NW 14 Street; includes kitchen, storage, bathroom with shower; Catalyst Miami to utilize • Fourth floor rooftop oasis-- approx 900 RSF; includes kitchen, storage, shaded areas for community and private events CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 6 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL LOCAL DEVELOPMENT IMPACT AND COST -BENEFIT The mixed -use 50% AMI work -live residences development at PROJECT PEACH will deliver an economic impact far beyond commercial development. Together with the intangible impacts of positive investment on a currenity vacant infill lot, numerous economic and social cost -benefits will be enjoyed by the wider Overtown community. With the commitment of the OMNI CRA, Knight Foundation, and FCLF support, a sense of place, high -quality affordable residences, an activated and walkable commercial corridor, increased property values, and community pride will be solidified. 36+ 45 $120k Resident, Commerical, and Local Construction Jobs Total Municipal Impact Office People Impact $2.6M $1.08M $3.2M Total Development Impact Projected Rental Savings Total Development Value (30 years from Market to 50% AMI) PROJECT IMPACTS AND ECONOMIC BENEFIT PUBLIC BENEFITS The Developer intends to ensure all three residences are under 50% AMI for the 30-year convenant, with a potential two 10-year 50% AMI residences extensions.. The investment from the OMNI CRA of approx $1.3M ($765k for the residences) will result in an approx $1.08M savings to residents as compared to market rate rents over a 30-year timeline, resulting in a net benefit of approx $315k or a 41% ROI. Permit, Impact, Utility Given our experience with commercial development, we anticipate approximately $120,000+ in fees for the City of Miami Connection Fees, Etc. and Miami -Dade County during the construction of this project. We have a commitment to hire locally and utilize local materials Local Employment wherever possible. Utilizing the National Association of Home Builders model for economic impact on residential development, the project will generate 45 local construction jobs. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 145t It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50% AMI R251denC25 % Miami, FL 33136 ©2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL LEVERAGING KNIGHT FOUNDATION FUNDING The Junior loan is being funded through the Florida Community Loan Fund's Overtown Affordable Housing Demonstration Pilot Inititative. OMNI CRA COMMITMENT SUMMARY • Total Investment: $1.3M • $765k for three target 50% AMI work -live residences 30-year covenant, plus two 10-year extensions Projected return of approx $1.08M on investment in saved rental over 30-year period as compared to projected market rents • $535k for commercial investment to support local entrepreneurs and/ or incubator space at ground level and second floor non-profit offices • Leverages projected $1M Knight Foundation / FCLF Affordable Housing Demonstration Pilot Initiative OMNI CRA DRAW SCHEDULE • Total Investment: $1.3M • Four tranches of $325k each, based on successful milestones: • Tranche #1: Schematic Design, Design Development, and Construction Document phases, released upon signing Developer agreement • Tranche #2: Permit and Bidding phases, released upon permit submittal to the City of Miami and Miami -Dade County • Tranche #3: Construction phase, released upon permit approval • Tranche #4: 50% Construction complete, released upon threshold inspection approval • Note: 10% retainage held until Certificate of Occupancy and Project Closeout is successful CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL SECTION 2 FINANCIALS 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL Informational Purposes Only. This confidential presentation has been prepared by CAPROCK 123, LLC, a Florida limited liability company and may be used for informational purposes only. The Company undertakes no obligation to update the information contained herein. Neither the Company nor any investment managed or sponsored by the Company or its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein. Certain information contained herein has been obtained from published and non -published sources prepared by other parties, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for the purpose used in this presentation, the Company does not assume any responsibility for the accuracy or completeness of such information and such information has not been independently verified by the Company. Nothing in this presentation constitutes the provision of any tax, accounting, financial, investment, regulatory, legal or other advice by the Company or its advisors. This presentation may not be referenced, quoted or linked by website, in whole or in part, except as agreed to in writing by the Company. Forward Looking Statements and Projections. Certain information contained herein constitutes "forward -looking statements," which can be identified by the use of terms such as "may", "will", "should", "expect", "anticipate", "project", "estimate", "intend", "continue," "target" or "believe" (or the negatives thereof) or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward - looking statements (including without limitation, any statements regarding project, permitting and construction timelines). As a result, investors should not rely on such forward -looking statements. No representation or warranty is made as to future performance or such forward -looking statements. The projections have been prepared and are set out for illustrative purposes only, and do not constitute a forecast. They have been prepared based on the Company's current view in relation to future events and financial performance of the investments and various estimations and assumptions made by the Company, including estimations and assumptions about events that have not occurred, any of which may prove to be incorrect. Actual results may vary significantly. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50%AMI Residences 10 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL n K x 2Q N O N n N O U1 O oo o D O : P A m L 1 v a v 3(Da n n r un 2 DEVELOPMENT SOURCES AND USES Sources Senior Loan 10.4% 266,500 Junior Loan/ Knight Foundation 39.0% 1,000,000 CRA Contribution 50.7% 1,300,000 Total Sources 100.0% 2,566,500 Construction Financing Assumptions Construction Loan Term 21 Months Fixed Interest Rate Annual 4.50% %of Lease -Up Inc. to Use 0% Confidential Uses 1. Construction Costs 2. Architecture & Engineering 3. Tenant Improvements 4. Soft Costs 5. FF&E & Leasing 6. Land 7. Other Development Cost before Carry Operating Shortfall Construction Interest and Fees Total Uses 61.3% 1,573,400 6.1% 157,340 0.0% 0 6.6% 170,578 0.6% 15,734 11.0% 283,250 10.9% 279,717 96.6% 2,480,020 0.0% 0 3.4% 86,480 100.0% 2,566,500 MO® Page 1 3 Z3 n y W D 3 z w a O W w 3 W W m _ n K x 2Q N O N n N O U' 0 o° o D O L A m N 1 v a v =a n n r th 2 N DEVELOPMENT BUDGET Analysis Start Date S-Curve Rate Budget Item 1-Jan-22 Moderately Steep (7) /SF Amount Forecast Method Start Month Add Line Item to: 1. Construction Costs Length (Months) S-Curve Rate End Month 1 Month Ending Month 1. Construction Costs 1,573,400 1 14 _ 14 OK Residential 300 765,000 S-Curve 1 14 Moderately Steep (7) 14 OK Commercial 200 728,400 S-Curve 1 8 Moderately Steep (7) 8 OK Parking 25 70,000 S-Curve 1 6 Moderately Steep (7) 6 OK Landscaping 10,000 S-Curve 12 2 Moderately Steep (7) 13 OK Item - S-Curve( 12 2 Moderately Steep (7) 13 OK 2. Architecture & Engineering 157,340 1 4 4 OK Architecture & Engineering 157,340 S-Curve 1 4 Moderately Steep (7) 4 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK 3. Tenant Improvements - 1 6 6 OK Commercial - - S-Curve 1 6 Moderately Steep (7) 6 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK 4. Soft Costs 170,578 1 14 14 OK Insurance & Bonds 47,202 S-Curve 1 14 Moderately Steep (7) 14 OK Permits 62,936 S-Curve 1 6 Moderately Steep (7) 6 OK Legal & Accounting 7,867 S-Curve 1 14 Moderately Steep (7) 14 OK Advertising & Marketing 1,573 S-Curve 1 14 Moderately Steep (7) 14 OK Impact Fees 51,000 S-Curve 1 14 Moderately Steep (7) 14 OK 5. FF&E & Leasing 15,734 1 14 14 OK FF&E 15,734 S-Curve 1 14 Moderately Steep (7) 14 OK Item - - S-Curve 1 14 Moderately Steep (7) 14 OK Item - S-Curve 1 14 Moderately Steep (7) 14 OK Item - S-Curve 1 14 Moderately Steep (7) 14 OK Item - S-Curve 1 14 Moderately Steep (7) 14 OK 6. Land 283,250 1 14 14 OK Land Purchase 265,000 S-Curve 1 1 Moderately Steep (7) 1 OK RE Taxes 10,600 S-Curve 1 14 Moderately Steep (7) 14 OK Title & Doc Stamps 1,325 S-Curve 1 1 Moderately Steep (7) 1 OK Legal 1,325 S-Curve 1 3 Moderately Steep (7) 3 OK DID & 3rd Party 5,000 S-Curve 1 3 Moderately Steep (7) 3 OK 7. Other 279,717 1 14 14 OK Developer Fee 4% 88,012 S-Curve 1 14 Moderately Steep (7) 14 OK Contingency 10% 191,705 S-Curve 1 14 Moderately Steep (7) 14 OK Item - S-Curve 1 1 Moderately Steep (7) 1 OK Item S-Curve 1 14 Moderately Steep (7) 14 OK Item - S-Curve 1 1g Moderately Steep (7) 1& OK Total before Operating Shortfall 2,480,020 1 14 14 OK Operating Shortfall - OK Total before Financing Costs 2,480,020 OK Construction Interest 34,280 OK Lender Fees 24,800 Straight -Line 1 1 1 OK Loan Closing Fees 12,400 Straight -Line 1 1 1 OK Misc. Financing Costs 15,000 Straight -Line 1 1 1 OK Total with Construction Interest 2,566,500 OK Cumulative Spent 2,566,500 OK Construction Length 20 months n w OPERATING ANNUAL OPERATING STATEMENT Apartment Trended Total Units: 3 Veer YE A-W YE A-W YEA-W Yeor3 Stabilized Vear1 year2 Y2022 Y-,3 Y-,4 Y-,5 Y-6 Y-,7 y-,8 y-,9 year 10 Residual A-1yi, CAGE De Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030 Dec-203 year= 11 Rental Revenue /un Vmo CAGR S Gross Potential Rent - - - 1,024 2.0% 1.20 36,856 - 12,204 36,856 37,593 38,345 39,112 39,894 40,692 41,506 42,336 43,183 -Concussions - - - 3 0.00 - 3,051 - - - - - - - - - - Downtime Vacancy/Loss-to-Market 1 0.00 43 43 129 131 134 137 139 142 145 148 Total Rental Revenue $0 $0 $0 1,019 2.0% 1.20 36,700 - 9,153 36,813 37,465 38,214 38,978 39,758 40,553 41,364 42,191 43,035 Other Income /un Vmo CAGR V.Faed Utility Reimbursement(RUBS) - - - 40 2.0% 0% 1,440 - 482 1,471 1,501 1,531 1,561 1,593 1,624 1,657 1,690 1,724 Parking Income - - - 0 3.0% 0% - - - - - - - - - - - Commerciallnc0me - - - 2,500 2.0% 0% 90,000 - 30,150 91,953 93,792 95,668 97,581 99,533 101,524 103,554 105,625 107,738 Hotel Income 0 3.0% 0% Total Other Income $0 $0 $0 2,540 2.3% 91,440 - 30,632 93,424 95,293 97,199 99,143 101,125 103,148 105,211 107,315 109,461 Total Potential Gross lnm me $0 $0 $0 / Vmo 128,140 - 39,785 130,238 132,757 135,412 138,121 140,883 143,701 146,575 149,506 152,496 -G--I Vacan cy - - - 107 3.0% % Vm,t 3844 - 1194 3907 3983 4062 4144 4226 4311 4397 4485 Effective Gross Income $0 $0 $0 3,453 2.2% 4.06 124,296 - 38,592 126,331 128,775 131,350 133,977 136,657 139,390 142,178 145,021 147,921 eating Expenses CAGR %Feed Payroll - - - 367 2.0% 75% 1,101 - 369 1,125 1,147 1,170 1,194 1,218 1,242 1,267 1,292 1,318 Advertising&Marketing - - - 61 2.0% 250% 184 - 61 187 191 195 199 203 207 211 215 220 G--I&Administative - - - 367 2.0% 75% 1,101 - 369 1,125 1,147 1,170 1,194 1,218 1,242 1,267 1,292 1,318 Utilities - - - 367 2.0% 50% 1,101 - 369 1,125 1,147 1,170 1,194 1,218 1,242 1,267 1,292 1,318 Repairs & Maintenance - - - 245 2.0% 75% 734 - 246 750 765 780 796 812 828 845 861 879 10p Service Contacts - - - 367 2.0% 10055 1,101 - 369 1,125 1,147 1,170 1,194 1,218 1,242 1,267 1,292 1,318 Management Fee - - - 2,072 5.0% %Of EGI 6,215 - 1,930 6,317 6,439 6,568 6,699 6,833 6,969 7,109 7,251 7,396 Make Ready - - - 77 2.0% .. - 75 230 234 239 244 249 254 259 264 Taxes - - - 10,489 2.0% 100% 31,468 - 10,542 32,151 32,794 33,450 34,119 34,801 35,497 36,207 36,931 37,670 Insu once - - - 3,670 2.0% 100% 11010 - 3688 11249 11474 11703 11937 12176 12420 12668 12922 13180 Total Op-ting Exp-- $0 $0 $0 18,081 2.3% 54,244 - 18,018 55,383 56,487 57,616 58,769 59,944 61,143 62,366 63,613 64,886 L MN. OperatingI... me $0 $0 $0 56.4% 2.2% 70,052 20,574 70,947 72,288 73,734 75,208 76,712 78,247 79,812 81,408 83,036 Cap it.I Expend itures I uui CAGR Other CapEx - - - 0.5% 2.0% 367 - 123 375 382 390 398 406 414 422 431 439 Capital Reserve - - - 3.6% 2.0% _2,500 - 838 2,554 2,605 2,657 2,711 2,765 2,820 2,877 2,934 2,993 Total Capital Expenditures $0 $0 $0 4,1% 2,867 - 960 2,929 2,988 3,048 3,109 3,171 3,234 3,299 3,365 3,432 Total Expenses $0 $0 $0 57,111 - 18,978 58,312 59,475 60,664 61,877 63,115 64,377 65,665 66,978 68,318 Eci CACiR .CWah Flow from Operations $0 $0 $0 54.1% 2.2% 67,185 - 19,614 68,018 69,300 70,686 72,100 73,542 75,013 76,513 78,043 79,604 Confidential 10/4/21 Page 1 n K x 2Q N O N n N O U' O N o° o D O : P P A m L 1 v a v `Da n n r un 2 RISK, RETURN, AND VALUATION -ANNUAL im Net Rentable Area (SF) 2,550 Year Stabilized Year Year Year Year Year Years Year Year Years Year Year 10 Reversion Ye E„dmg G� tw Year= 7 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Dec-2027 Dec-2028 Dec-2029 Dec-2030 Dec-2031 Year= 11 NOI Cap Rate 5.0 bps 5.05" 4.75% 4.50% 4.55% 4.90% 4.95% 5.00% 5.05% 5.10% 5.15% 5.209% 5.25% Gross Property Value 1,519,057 - 428,625 1,462,832 1,475,261 1,489,567 1,504,165 1,519,057 1,534,248 1,549,739 1,565,535 1,581,637 - Ground Lease Value Net Property Value 1,519,057 - 428,625 1,462,832 1,475,261 1,489,567 1,504,165 1,519,057 1,534,248 1,549,739 1,565,535 1,581,637 Net Operating Income 76,712 - 20,574 70,947 72,288 73,734 75,205 76,712 75,247 79,512 51,405 53,036 - Capital Expenditures (3,171) (960) (2,929) (2,988) (3,048) (3,109) (3,171) (3,234) (3,299) (3,365) (3,432) 3 Cash Flow from Operations 73,542 - 19,614 68,018 69,300 70,656 72,100 73,542 75,013 76,513 75,043 79,604 11 -Ground Lease Payment - - - - - - - - - - N To al Investment Costs (w/o Const. Interest) - (2,467,971) (12,048) - - - - - - - - S Gross Reversion Value - - - - - - - - - - 1,581,637 Selling Costs @ Reversion 2.0% z - - - - - - - - - - (31,633) Unlevered Cash Flow - (2,467,971) 7,565 68,018 69,300 70,656 72,100 73,542 75,013 76,513 1,628,048 z Unlevered IRR (Annual) -1.74% Unlevered EMx (Annual) 0.87X Free -and -Clear Return (CFO) Di-- Ra 2.44% 0.00% 0.79% 2.76% 2.51% 2.56% 2.92% 2.95% 3.04% 3.10% 3.16% Present Value 7.5% N/A Cash Flow from Operations - 19,614 68,018 69,300 70,656 72,100 73,542 75,013 76,513 75,043 -Ground Lease Payment - - - - - - - - - - - Debt Service (13,700) (54,801) (54,801) (54,801) (54,801) (54,801) (54,801) (54,801) (54,801) Cash Flow After Financing Year= 7 Avg. Min. - 5,913 13,215 14,499 15,885 17,299 15,741 20,212 21,712 23,243 DSCR (CFO) 1.24X 1.34X 1.24X N/A 1.43X 1.24X 1.26X 1.29X 1.32X 1.34X 1.37X 1.40X 1.42X Debt Yield (CFO) 5.37% 5.29% 1.55% N/A 1.5% 5.4% 5.5% 5.6% 5.7% 5.8% 5.9% 6.0% 6.2% 0 Total Investment Costs(w/Const. Interest) - (2,530,697) (35,803) - - - - - - - - Gross Reversion Value co w - - - - - - - - - - 1,581,637 Selling Costs @ Reversion 2.0% - - - - - - - - - - (31,633) S Construction Financing (Draws Op. Shortfall & Int. Reserve) - 1,230,697 35,503 - - - - - - - - 0 � Construction Financing Payoff - - (769,463) - - - - - - - - Permanent Financing Funding - - 1,266,500 - - - - - - - - PermanentFinancingFees - - (12,665) - - - - - - - - PermanentFinancingPayoff - - - - - - - - - - (978,702) Levered Cash Flow - (1,300,000) 490,285 13,215 14,499 15,885 17,299 15,741 20,212 21,712 594,545 Levered IRR (Annual) -1.35% Levered EMx (Annual) 0.93X Cash -on -Cash Return (CFAF) Dino ease 1.16% 0.00% 0.45% 1.02% 1.12% 1.22% 1.33% 1.44% 1.55% 1.67% 1.79% Present Value -1.4% N/A Confidential 10/4/21 Page 1 I I A FLORIDAMEN' COMMUNITYN> LOAN FUNDN October 4, 2021 Ms. Laura Weinstein -Berman Founder LW Associates, Inc. 123 NW 14rh Street Miami, FL 33136 EXPERTISE AND CAPITAL TO HELP YOUR PROJECT SUCCEED. ■ Re: Letter of Interest ("LOP') — Construction/Tenn Loan (the "Loan") for the construction of a mixed -use project consisting of three rental units and commercial space located at 123 NW 14`h Street in Miami, Miami -Dade County, Florida (the "Project") Dear Ms. Weinstein -Berman Thank you for considering Florida Community Loan Fund ("FCLF") as a lender for the construction and operation of a mixed -use project to include 3 residential rental units as well as commercial office and community space located in the Overtown neighborhood of Miami, Florida. Receipt of a formal loan application would be subject to full underwriting of the Project, Borrower and Guarantors by FCLF and, if approved, would likely offer terms as outlined below: Borrower: An entity to be agreed to by the Lender whose ownership includes LW Associates, Inc.. Purpose: For the construction and operation of a mixed -use project located at 123 NW 14`h Street, in the Overtown neighborhood in Miami -Dade County. Funding: As required during construction based on an approved draw schedule. SENIOR LOAN Loan Amount: Up to $266,500 or 85% of the as -completed, as -stabilized appraised value of the project. Interest Rate: 4.5% during construction and 5.5% upon conversion to a term loan. Collateral: First mortgage lien on each property superior to any and all liens and restrictions. JUNIOR LOAN Loan Amount: Up to $1,000,000 or such lesser amount should the senior loan be increased beyond the anticipated amount indicated above and in no case more than 110% of the above -referenced project value. Interest Rate: 1.0%. Main Office: 800 N. Magnolia Ave. Suite 106 ■ Orlando, FL 32803 407.246.0846 ■ f: 407.246.0856 ■ www.fclf.org Orlando ■ Jacksonville ■ Sarasota ■ Tampa ■ Fort Lauderdale 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 15 nsso .: Miami, FL 33136 0 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL GENERAL TERMS Payments: Monthly payments of interest by the Borrower (which may be made through an interest reserve carved out of the senior loan). Fees: Application fee - $300 Loan origination fee — 0.5% of the total Loan Amount Customary closing and FCLF legal fees (if any) Loan Term: Up to twenty-four months for construction during which the loans will be interest only. Upon project stabilization, both loans may convert to term loans with a maturity of seven years. Prepayment: No prepayment penalties for early repayment Other Funding: If other funding is required, then evidence that such funding is available and sufficient to complete the project will be required. Other FCLF Funding FCLF periodically has access to other funding sources that may offer additional concessionary terms provided program restrictions are met. We would be happy to consider substituting a portion of the above -mentioned funding should any other sources be available at the time required by the Borrower. Documentation: All documentation regarding the project including any grant and loan documents shall be available for review and acceptance by the Loan Fund Third Party Reports: Required third party reports include an as -is appraisal and an environment assessment report. FCLF is a Community Development Financial Institution (CDFI) with a strong social conscience that shares the mission of borrowers working to improve conditions in both urban and rural low-income communities around the state. The Project will provide affordable rental housing. We appreciate the opportunity to provide this LOI for construction financing. Sincerely, �� Zl%te(¢m James Walker Community Development Loan Officer (561)414-3933 October 10, 2021, Page 2 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 16 Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL SECTION 3 QUALIFICATIONS AND EXPERIENCE 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 17 nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL DEVELOPMENT TEAM The Developer works as one cohesive team with an integrated approach on all developments. Each member of the PROJECT PEACH Development team identified in this proposal has the requisite experience to develop the project in an efficient, effective and creative manner. Our organization will work with the OMNI CRA, City of Miami, Miami -Dade County, and the Overtown community to make the project a long-lasting success with multigenerational impact. The Developer is a community -driven developer that offers more than 15+ years of experience in residential and commercial development, real estate investment and public -private partnerships. We bring a unique position to leverage our external architecture, engineering, finance, and community development teams for high -quality execution. This brings tremendous value to the historic communities we develop in. Our team is data -driven with a main focus on activated, mixed -use, and sustainable development. As a developer and real estate investor, we have extensive experience in securing conventional construction and permanent loans, public -private partnerships, and private equity funding. PROJECT PEACH DEV TEAM Design Architect Cure & Penabad F Lending Partner Developer Florida Community CAPROCK 123, LLC Loan Fund Overtown Architect of Record Affordable Housing Pilot Steven L. Cohen & Associates General Contractor Partner Junior Loan KVC Constructors Laura Weinstein -Berman, AIA Knight Foundation MEP Engineer General Counsel CRA RPJ Engineers Sara Barli Herald, ESQ. OMNI Community Redevelopment Agency Landscape Architect Accounting Wayne Torming & Francis J. Lamb, CPA Associates Executive Director Gretchen Beesing Sustainability/LEED E3 Building Sciences Potential Non -Profit Catalyst Miami Overtown LlaSlon Nicole Crooks ■ Civil Engineer Zephyr Engineering The Developer's dedicated in-house team will be the main point of contact. The Developer will Structural Engineer coordinate between qualified third -parties to successfully execute the development. The Developer Solver Engineering intends to comply with the requirements of the Miami21 Zoning Code, City's Comprehensive Plan and Sustainable Development initiatives. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50%AMI Residences gssc�. Miami, FL 33136 02021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL 18 DEVELOPMENT TEAM OVERVIEW CAPROCK 123, LLC (SPECIAL PURPOSE ENTITY) Laura Weinstein -Berman, Owner 1 (305) 606-8948 1 laura@Iwassocinc.com I www.ainadev.com The real estate development firm specializes in activated, walkable community development with mixed -use and mixed - income projects at the forefront. The principal has 15+ years of real estate development, investment, architecture, and project management experience. The developer is a women- and minority -owned business. •:IZATION CAPROCK 123, LLC 123 NW 14 St, Miami, FL 33136 SCOPEOF WORK Lead Developer Minority- and Woman -Owned Business Laura Weinstein -Berman - Partner Design, development, and construction processes Sara Barli Herald - General Counsel Managing legal and financial transactions attorney Frank Lamb - Accounting Lender communication and financial closings CATALYST MIAMI 3000 Biscayne Blvd STE 210 Miami, FL 33137 Potential Non-Proft Partner, 501(c)3 Women -Led Non -Profit Gretchen Beesing - Executive Director Executive representative Nicole Crooks - Manager Overtown Liasion & Development Leader CURE & PENABAD 6915 Red Rd STE 204, Coral Gables, FL 33143 Design Architect Minority- and Woman -Owned Business Carie Penabad - Co -Founder Chief Innovation Officer Adib Cure - Co -Founder Chief Design Officer STEVEN L. COHEN & ASSOCIATES 5295 Town Center Rd Suite 202 Boca Raton, FL 33486 Architect of Record Stevel L. Cohen, AIA - Founder Design Architect Seth Yeslow, AIA - Lead Architect Lead and Project Architect KVC CONSTRUCTORS 9499 Northeast 2nd Avenue, Suite 205 Miami Shores, FL 33138 General Contractor Woman -Owned Business Katherine Crespin - President Overseeing entire construction process Vick Crespin - Vice President Managing operation for the project construction Andres Del Toro - Project Executive Construction management project manager E3 BUILDING SCIENCES 24860 Burnt Pine Dr, Bonita Springs, FL 34134 Sustainability Consultant Tim Karras Sustainability consultant lead Diana Giraldo Sustainability consultant design principal WAYNE TONNING & ASSOCIATES 799 Jeffery Street, Boca Raton, FL 33487 Landscape Architect Wayne Tonning, RLA Landscape design lead SOLVER ENGINEERING 950 NW 22nd Ave, Miami, FL 33125 Structural Engineer Denis Solano, P.E., S.I. Structural engineer principal RPJ ENGINEERS 4977 SW 74th Ct, Miami, FL 33155 MEP Engineer Ralph Pena MEP engineer principal Adrian Pena MEP engineer principal CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50%AMI Residences 19 gssc�. Miami, FL 33136 02021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL DEVELAPFP Mrs. Weinstein -Berman is a licensed Architect and LEED AP BD+C with expertise and leadership for $300M+ of community -based real estate investment and development in South Florida. Her main focus is on sustainable mixed -use development, historic preservation and real estate investments. She is an advocate in civic engagement for historic preservation, affordable housing and resiliency solutions and serves on the City of Miami Beach Historic Preservation Board. Graduating with the Faculty Thesis Award from Columbia University in the City of New York, she earned a Master of Science in Historic Preservation with coursework in Real Estate Development and Finance at the Graduate School of Architecture, Planning, and Preservation, and received a Bachelor of Architecture from the University of Miami with a minor in Art History, with Honors. Based in Miami Beach, Florida, she is grateful to work on community development projects of historic, economic, and social significance at the local, state, and federal levels. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 20 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL CATALYST MIAMI NON-PROFIT COMMUNITY PARTNER Founded in 1996 by Daniella Levine Cava, Catalyst Miami's mission is to identify and collectively solve issues adversely affecting low -wealth communities throughout Miami -Dade County. Our vision is a just and equitable society in which all communities thrive. At Catalyst Miami, we believe the workings of our government and society's systems — from affordable housing and municipal budgets, to economic development and healthcare — should be shaped by all the people they are supposed to benefit. To that end, our work centers on increasing community control and ownership; creating both individual and collective paths to prosperity; increasing civic engagement; and enhancing the resilience of our environment and communities. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 21 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL CATALYST M IAM investing in people and . supporting transformative� generating shared movements rooted in prosperity economic and racial justice intersectional, innovative,s. grassroots advocacy community -driven`' and building people problem solving power GRASSROOTS COOi]i]M]04���CD LEADERSHIP. LaDD�IOO C�LaC�� We work in coalition to place communities at the center of public decision -making. We convene and connect our communities and partners to achieve meaningful, equitable change through: organizing for policies & investments aligned with community priorities WEALTH � BUILDING Our strategies for achieving economic justice center on building community power and economic inclusiveness. Our programs enhance financial well-being, promote racial equity, and increase community ownership. www.catalystmiami.org building civic engagement & self- determination within communities COMMUNITY ECONOMIC DEVELOPMENT financial & health coaching 11 M111""1119160 Ir A000 children's savings accounts I 1 I � "smallbusiness suppo ., u f V in @CatalystMiami CATALYST MIAMI HEALTH & WEALTH We help individuals, families, small businesses and organizations thrive through the following services and programs. Financial coaching and products for Building Prosperity Workforce Cohort: building credit, managing debt, Receive professional skills training and `� '/ budgeting, and saving connect with employment agencies Enrollment in public benefits, such as Worker -Owned Enterprises Program: food stamps (SNAP) or Temporary Learn how to run and launch a business Assistance for Needy Families (TANF) owned by its workers Enrollment in Medicaid, KidCare (CHIP) ja Small business support: Technical + finding low-cost clinics assistance and help finding resources Tax services: Helping you file and e�!� Future Bound Miami: Provides Children's understand your taxes while �� Savings Accounts for kindergarten students maximizing earned credits �"I in Miami Dade County Public Schools POLICY & ADVOCACY We offer leadership training programs for all and build high -impact coalitions to effect change. We participate in many networks and coalitions to advance community well-being. CLEAR (Community Leadership on the Environment, Advocacy & Resilience): Build advocacy skills to catalyze local climate action LIGHT (Leaders in Grassroots Health Transformation): Learn strategies for achieving health equity and quality healthcare for all A& Catalyst to the Capital: Annual trip to }M Tallahassee in which community 1"M members meet with elected officials TOP ISSUES WE CARE ABOUT: HEAL (Housing, Equity, Advocacy & Leadership): Learn about our affordable housing crisis and how to be a part of the solutions Advocacy: With residents and partners, advocating for policies, systems and investments that reflect community priorities Community engagement: Working with neighborhoods to encourage civic participation and build community power Climate Justice • Economic Justice • Health Justice • Housing Justice • Racial Justice CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 23 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL CURE & PENABAD DESIGN ARCHITECT Founded in 2001, CURE & PENABAD aspires to create an architecture of place. The practice seeks to find beauty in differences and is drawn to what makes an environment unique. Inspiration is found in both the vernacular and the academic; in the ancient and the contemporary; in the commonplace and the extraordinary. As such the architectural output of the firm is eclectic, molded by the particular circumstances of each setting and client. The portfolio of projects, both domestic and international, displays an intense commitment to the discipline of architecture, its material culture, and constructional conventions. The practice has won recognition, receiving numerous national awards, among them over ten American Institute of Architects design awards and a Silver Medal at the Miami Biennale. AtSTEVEN L. COHEN AND ASSOCIATES PA, ARCHITECTS AND INTERIOR DESIGNERS ARCHITECT OF RECORD Bringing a combined 60+ years' experience to the fields of architectural and interior design, our principal architects are ready to tackle projects of any size and scale. We work closely with clients to make sure ideas are brought to life on time, budget and schedule. Our staff consists of architects, planners, designers, construction managers, and support staff — each selected for the diversified experience, quality of education, talent and commitment to the profession. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 24 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL MEN, GENERAL CONTRACTOR Since inception, KVC Constructors, Inc. has been dedicated to delivering quality construction services with unsurpassed principal involvement. KVC Constructors provides a wide range of construction services including but not limited to general contracting, construction management, and design -build for a diverse variety of applications and clientele. The KVC portfolio includes recreational facilities, government buildings, luxury mid -rise residential condominiums, educational facilities and more. Katherine Crespin, President Katherine Crespin is the President of KVC Constructors, Inc. and offers 30 years of real-time building construction industry experience, with almost 20 years in principal leadership. Before co-founding KVC Constructors she earned a B.S. from the University of Florida's Rinker School of Building Construction, and worked in both subcontractor, and construction manager positions. Today, she leads our team of more than 25 construction professionals through ground breaking work. Vick Crespin, Vice President Vick Crespin is the Vice President, and co-founding member of KVC Constructors, Inc. Prior to KVCs inception he was VP of Operations and Chief Estimator at a major south Florida construction firm. With more than 35 years of building construction industry experience, Vick has overseen more than $600 MM of commercial construction over a vastly broad range of project types. His knowledge and experience in estimating, value engineering, procurement, and project management is a significant contributor to the success of projects at KVC Constructors. Inc. Andres Del Toro, Project Executive Andy Del Toro has been with KVC Constructors since 2002, and was promoted to Project Executive in 2018 after leading KVC staff through our largest new construction project to date. Andy has built a strong portfolio via more than 21 years of construction industry experience and has contributed in all stages of construction management process throughout his career including but not limited to new project procurement, estimating and preconstruction, coordination and construction management, and completion and project close-out. Alex Felipe, Project Executive Alex Felipe has been with KVC Constructors since 2001. As Project Executive, Alex is responsible for estimating, new project bidding, new project procurement, and construction project management oversight. Prior to joining KVC, Alex earned a Bachelor of Building Construction from the University of Florida, and gained critical industry experience via a major south Florida construction firm. Alex has a unique skill set that lends itself to a variety of contract formats including but not limited to CM at Risk, CM as Agent, Design -Build, and typical general contracting. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 25 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL LV ASSOC, DESIGN PROFESSIONALS AND CONSULTANT TEAM E3 Building Sciences, Sustainability Consultant We provide developers, owners, building professionals, contractors and teams across the building industry with the tools and knowledge necessary to construct buildings that are efficient, comfortable, durable, and economical. Whether your project is small or large, residential or commercial, discover how the science of construction and getting the details right will optimize the performance of your project. For nearly two decades we have serviced a variety of clients across the Southeast United States primarily focusing on the State of Florida. Wayne Tonning & Associates, Landscape Architect Wayne K Tonning, RLA graduated from Kansas State University with a Bachelor of Landscape Architecture. While at Kansas State Wayne assisted the Campus Landscape Architect with specification writing, site planning, landscape construction documentation and proposals as well as surveying and rendering. Tonning and Associates, Inc. opened in January of 2004, specializing in landscape architecture, land planning and urban design. Solver Engineering, Structural Engineer SolVer Structural was founded in 2001 with the purpose of providing high quality professional engineering services in the structural engineering field including design, inspections, supervision, forensic engineering, feasibility studies, evaluation and re -certification of existing structures among others. To fulfill this commitment SolVer Structural has a highly experience and qualified staff with a theoretical background that allows Solver to offer a wide variety of services from residential, commercial, institutional, industrial, and marine structures among others. RPJ Engineers, MEP Engineer We are a full service Mechanical, Electrical, Plumbing and Fire Protection design firm. Our company has been serving our clients for over 30 years. Our portfolio of work is vast and includes experience across many sectors. We strive for excellence in engineering and are proud to be serving return clients for over three decades. Our office is a well established fully licensed Miami based consulting engineering firm that has provided services to the community for over 35 years. Zephyr Engineering, Civil Engineer Zephyr Engineering in South Florida provides a comprehensive range of professional engineering services to both the private and public sectors. Zephyr Engineering is recognized for its ability to approach projects in the Miami -Dade, Broward and Palm Beach County area with continuity in design, reflective of a positive economic and community impact. Timothy Haas & Associates, Parking Consultant THA Consulting, Inc. is a multi -disciplined engineering and architectural design firm, providing planning and design services to create parking and mixed -use facilities. We specialize in developing unique designs and utilizing effective parking strategies to create attractive, vibrant, and sustainable communities and developments. 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 26 nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL SECTION 4 CURRENT DEVELOPMENTS & COMPARABLE PROJECTS CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 27 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL DEVELOPMENT TEAM EXPERIENCE The developer has completed $300M+ of value in new development, adaptive reuse, and historic preservation projects, with 200+ multfamily units and approx 50k SF of mixed -use and commercial development in the near -term pipeline. 16 Corner Public -Private The Omni CRA Board unanimously approved a public -private partnership to renovate forty-four units over five garden -style apartment buildings in the Historic Overtown neighborhood. Miami -Dade County Infill Lots Miami -Dade Commissioner Audrey Edmonson granted five non - confirming infill lot parcels to be developed as affordable rental housing. Each parcel was developed to provide quality housing for eight to twelve residents per parcel. Biscayne Blvd Historic Housed in a former 50's motor hotel, Selina Gold Dust is a retro voyage back in time to the city's buzzing, colorful past. Close to Miami Beach and Downtown the property is surrounded by extravagant architecture, trendy cafes, and art galleries. Miami Hope House The development is designed around sustainable development principles with a focus on affordability, empowering human health M and equality. The 20-unit building with ground floor commercial �.� space and a community space rooftop. The development provides senior and affordable housing for households earning between 50% and 80% AMI. Graham -Ross Tower Mixed -Use and Mixed -Income project in one of Miami's most historic neighborhoods. The property will be 140+ high -quality units with ground floor restaurants, retail, and Civil Rights Museum to honor the work of the Mt. Zion Baptist Church for long-lasting success with multigenerational impact. Allapattah Workforce LEED-Platinum infill housing projects developed in the Miami Health District for attainable lifestyle rentals. Micromobility and high -quality construction provide safe and healthy homes for young profesionals, nearby workforce, and existing community. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 28 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL Midtown Office Midtown Miami is a neighborhood in the midst of a profound transformation. Within this setting, the office tower represents a milestone for Midtown's commercial real estate market. The development is an urban campus. Class A Industrial Developed on 8.4-acres, Class A industrial in the Hialeah Gardens submarket is the first of a collection of transportation and e-commerce hubs. Focus on sustainable alternative energy investments. Miami Infill within Historic Neighborhood Attainable Mixed -Income development within the historic Little Havana neighborhood. Providing ten high -quality i` residences with ground floor parking, premium amenities in - unit, and contextual design to honor the architectural legacy P of the historic neighborhood. Commercial Industrial Redevelopment -+ Adaptive reuse of commercial warehouse to house local -4 entrepreneurs and small businesses. The project successfully completed fully upgraded fire/life safety, building, and ADA requirements to satisfy current building codes and updated _ hurricane requirements. I WAW Historic Renovation Full gut renovations of scattered sites to improve the health, safety, and accessibility of existing residences. Through the Miami -Dade County Surtax program, funding was successful to create an improved home for existing residents. Commercial Marine Facilities Ongoing operations and maintenance of approximately thirty acres of commercial marine facilities. Improvements to the property over time and potential redevelopment plans are ongoing. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 29 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL n x _(D n O cn o v ; z :moo m (D 1 o a v � (D m n D n n r v0i 2 W 0 REAL ESTATE TRACKER - LAURA WEINSTEIN-BERMAN Project Peach Miami Hope House Little Havana Infill Palm Beach Yacht Center Murrelle Marine 401 Brevard Gold Dust Motel 123 NW 14 St, Miami, FL 33136 Mixed -Use 50% AMI Residences 745 NW 62 St, Miami, FL 33150 Ladies of Hope Ministries "Hope House" 1037 NW 2 St, Miami, FL 33128 7848 S Dixie Hwy, Hypoluxo, FL 33462 846 N Dixie Hwy, Hypoluxo, FL 33462 401 Brevard Ave, Cocoa, FL 32922 Attainable Mixed -Income Infill Marine / Commercial Marine / Commercial Historic Preservation / Commercial 7700 Biscayne Blvd, Miami, FL Historic Preservation / Hospitality 33138 3,660.00 10,800.00 5,800.00 18,545.00 7,000.00 8,560.00 528,876.00 35,770.00 212,746.00 29,258.00 7,405.00 10,667.00 33,493.00 23,497.00 TOTAL 798,980.00 137,097.00 PIPELINE PROJECTS Mixed -Income, Mixed -Use Mixed -use 140-unit senior affordable housing new development with non- Miami, FL Community Development with profit local development partners and community church in Overtown Church Sustainable Workforce Housing 54-unit scattered sites workforce housing developments in Allapattah Miami, FL Mixed -Income Senior Housing 42-unit mixed -income senior housing in Opportunity Zone Miami, FL Mixed -Use Creative Class A 150-unit mixed -use and mixed -income development in Miami Health Miami, FL District Class A Industrial 8.4 Acre Class A Industrial development Hialeah Gardens, FL Class A Office Building 10k SF Class A Office building, new development with sustainable design Hypoluxo, FL Warehouse Redevelopment 2.3 acre existing warehouse redevelopment Lantana, FL SECTION 5 ARCHITECTURE & OPERATIONS CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 31 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL �e 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 32 nsso .: Miami, FL 33136 0 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL 61.00 R Ground Floor 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 33 nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL UP DN - e El i El JL—'�' DW iLL isooC A m 00 Third Floor Fourth Floor 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 34 nsso.:. Miami, FL 33136 o2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL i y Diagrams 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 35 nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OverCOWn, Miami, FL ►11�'i tI I I Ij 41MIN n EXVVING STREET SEETiU,� RROROSEO STREET SECTION 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 36 nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL EXISTING SITE CONDITIONS Vacant Lot with no existing landscaping; Bike lane at South Top: South View, looking North Center: Southeast View, looking West Bottom: Southwest View, looking East CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 37 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL CATALYST MIAMI Catalyst Miami Project Peach Operations Catalyst Miami envisions Project Peach as a safe, entrepreneur -focused workspace for Overtown residents to improve their states of financial, health, and social well-being, both individually and for the neighborhood as a whole. Project Peach will function as a "Village Center" tailored to and grounded in the local community, who would use the second floor office spaces for conferences, meetings, retreats, leadership development workshops, private counseling and social services, and intergenerational activities that address economic development and self -empowerment. Catalyst Miami will also collaborate on the ground floor commercial frontage to support local entrepreneurs and micro -businesses. Inspired by Harlem Children's Zone, Project Peach will fill a current gap, providing a collaborative space in which our partners may adapt and implement innovative and effective programs for Overtown residents, entrepreneurs, and businesses. Catalyst Miami intends to provide critical financial services to the Overtown community within the Project Peach space. Ruth Israel is a 44-year-old Haitian woman currently living in Overtown. She began financial coaching with Catalyst Miami in January 2021. Her goals included credit repair, accumulating savings, and buying a laptop for better work opportunities. On a fixed (SSDI) income, accomplishing these goals was challenging. For instance, she was not eligible for ABLE accounts because the onset of her disability was after the age of 26. However, with hope and collaboration, she pushed forward. Alyssa Delgado, her financial coach at Catalyst Miami, connected her with resources such as the PASS (Plan to Achieve Self - Support) Program through Social Security, which allows beneficiaries to save thousands of dollars as long as it is work -related. Ruth was connected to Catalyst Miami's Building Prosperity Workforce Cohort, run by Shannon Charles, where she participates virtually in training that helps her explore employment opportunities and entrepreneurial endeavors. Ruth was also helped by Malcolm Cardona -Spence, Catalyst's small business support manager, who helped her create a business plan for her services as a Notary Public. In 22 one-on-one coaching sessions throughout 2021, Ms. Israel has increased her credit score by 20 points, increased her overall credit limit by over 12x, and she purchased a laptop. She reports an increase in self-confidence due to high -touch coaching. Additionally, she adjusted her budget to include a monthly fitness program to improve her overall health and has lost 44 pounds! She is expected to continue thriving to eventually become self-employed and not have to depend on federal assistance (SSDI, SNAP, and Section 8 housing). Ruth remains an engaged participant in the Building Prosperity Workforce Cohort, and continues to thoroughly and diligently work on her small business plan through our Small Business Support services. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 38 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL SECTION 6 1 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 39 nsso.:. Miami, FL 33136 o 2021 CAPROCK 123, LLC All rights reserved. Historic OvertoWn, Miami, FL "MIAMI CRA COULD SELL SITE TO AFFORDABLE HOUSING DEVELOPER," SOUTH FLORIDA BUSINESS JOURNAL, JULY 20, 2021 City -owned property in Miami's Overtown could be sold to an affordable housing developer, in partnership with a neighboring church. The Southeast Overtown Park West Community Redevelopment Agency on July 22 will consider accepting the bid from Mt. Zion Development Associates for the property. The company was the sole bidder following the CRA's June 15 request for proposals for the 7,500-square-foot vacant site at 318 N.W. loth St. If Mt. Zion Development is selected, CRA officials would begin negotiations to finalize the contract, including the financial terms. The preliminary site plan shows Mt. Zion Development Associates would combine the CRA-owned land with neighboring vacant lots of 5,000 and 6,246 square feet owned by the Historic Mount Zion Missionary Baptist Church, along with a 10,000-square-foot site at 950 N.W. Third Ave. that's currently owned by Shirlene Ingraham and JEJ Properties. The latter property has a retail building that's currently home to Jackson Soul Food, one of the most well- known restaurants in Overtown, a historic African American community. The entire site is just north of the Historic Mount Zion Missionary Baptist Church, which is a historic landmark. Under the proposal, called Graham Ross Towers, the 11-story building would have 122 affordable apartments for the elderly and 5,000 square feet of retail. The developer would agree to dedicate 70% of the units for people making up to 60% of area median income, and the other 15% for people making up to 30% of area median income. There would be 12 studios, 96 one -bedroom units, and 14 two -bedroom units. The project was designed by Behar Font & Partners in Coral Gables. According to the application, the developer is seeking 9% low-income housing tax credits for the project from the Florida Housing Finance Corp. If it doesn't secure that funding within two years, the developer could cancel the deal with the CRA. Mt. Zion Development Associates is a partnership between Miami -based Mt. Zion Developments, led by CEO Larry D. Capp, Tampa -based Blue Sky Communities, Miami -based Aina Sustainable Housing Development, and the neighboring church. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 40 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL T H E A R C H I T F C T U R A L L E A G U E N Y "THE BEAUTY OF THE ORDINARY ADIB CURE AND CARIE PENABAD REFLECT ON MIAMI'S RICH VERNACULAR DESIGN," ARCH LEAGUE NYC, MAY 26, 2021. CURE & PENABAD's forthcoming book Made in Miami / Hecho in Miami explores vernacular architecture and urbanism in the firm's hometown. The League's Sarah Wesseler spoke with founders Adib Cure and Carie Penabad. --EXCERPT-- We think there's a need to develop new housing prototypes for Miami. We are currently working with AINA Sustainable Housing Development to design new urban models that will allow you to contract into higher ground in the future and develop a city in the middle ground: a mid -rise city that could allow us to foster more sustainable neighborhoods for the future — more sustainable both architecturally and socially. In trying to rethink housing or other aspects of the built environment in Miami, do you find it easy to identify collaborators —developers, clients, etc. —who share your vision, or is it a struggle to convince people to try something new? And what about the regulatory side of things? Do building codes and the like allow for experimentation? Penabad: We have found common ground with individuals and corporations that seek a greater good beyond the immediacy of their own projects. Our recent work with AINA Sustainable Housing Development is investigating how we can make affordable housing —truly affordable —in the city. Why can't affordable housing be beautiful? What does that mean in Miami, and what kinds of regulations do we have to be able to push back on? We chose to develop these ideas at a smaller scale with a team that is willing to, quite frankly, go the extra mile. Whenever you want to question the norm, you really do have to put a lot more time and effort into thinking how you can push back against certain conditions that create what you're seeing around you. That involves more design time and more commitment, but we always think it's worth it, because if you can create one project that illustrates a different way of doing things, that can become a new model. It helps others see a different reality for a given place. Cure: One thing that is also happening is that some of the codes are changing —perhaps Conceptual sketch, figure ground of courtyard for housing in Liberty city Credit: CURE & PENABAD f CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 41 Assn Miami, FL 33136 O 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL an example of how Miami is growing and maturing. The City recently changed the code to allow for different densities, different building typologies, different modes of living and working. In some cases, developments don't require parking, or as much parking as before. So the City is trying to imagine a community that is much more connected to public transportation, less reliant on the car. In the end, we've been fortunate enough to work with clients that are interested in the shaping of the city, and we have worked closely with them to provide new places and spaces for Miami. We believe that being collaborative is an essential part of being an architect —it's this messy business of negotiating and working things out, and we're very comfortable with that. We believe it's actually fundamental to what we do: collaboration with clients, collaboration with the craftspeople that build the buildings, collaboration with engineers, collaboration with senior officials —trying to figure out intelligent ways of producing better work and building the city of the future. Full article online at: https://archleague.org/article/ the -beauty -of -the -ordinary/ 4 14 �i ! CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 42 Miami, FL 33136 0 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL Miami Heralb VIGLUCCI, ANDRES, "THESE FULLY REDONE APARTMENTS MAY HELP SOLVE MIAMI'S HOUSING CRISIS. THE RENT STAYS CHEAP," MIAMI HERALD, MAY 16, 2019. Here's one possible solution to Miami-Dade's mounting housing -affordability and gentrification crisis: Fix up the places where low-income people already live, and keep the rent down so no one's pushed out. That's the deceptively simple approach now being tested in Miami's Overtown by a city agency and a private developer best known for transforming 1950s MiMo motels on Biscayne Boulevard into hip attractions. So far, it seems to be working. This week, developer Avra Jain and the city's Omni Community Redevelopment Agency unveiled the first results of what might prove to be an innovative cost - sharing collaboration — a 1950s two-story apartment building, until recently a mold -infested blight, that has been totally rehabbed to high standards. That's not even the most promising part. The building's tenants didn't have to move far during the seven -month gut renovation, just next door. Later this month, they get to move back into their apartments, now sparkling new with hardwood kitchen cabinets and granite counters, copper plumbing and high -efficiency air conditioning. And once they do, they will pay virtually the same low rents they were paying before the renovation for what was slum housing. That's $750 to $825 for a range of unit sizes that includes a three -bedroom, two -bath apartment. For 30 years, the rents will increase only marginally to keep up with inflation. "I like it. I love it," said a smiling Joseph Akharoh as he toured his gleaming new studio apartment for the first time on Wednesday. Akharoh, 31, moved into the building five years ago after graduating from college to save money for student -loan payments while he set up a small consulting business. The building is small, just eight apartments. But Jain and the CRA bought four other adjacent buildings for what they're calling 16 Corner. Rehab will start on the next building just as soon as Akharoh and the other tenants move out and into their new homes next door. Eventually, that will mean a total of 44 high -quality units of very affordable housing with virtually no displacement. It's a model the (CONTINUED) An exterior view of a newly renovated apartment building at the 16 Corner Project in Overtown. The collaboration between developer Avra Jain and Miami's Omni Community Redevelopment Agency is being touted as a new model for addressing Miami's housing affordability crisis. Resident Quantanae Byrd, 25, records a video of a renovated apartment during the "Move -In Celebration" at the 16 Corner project in Overtown. CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 43 Miami, FL 33136 © 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL developer and agency officials believe can be replicated across poor neighborhoods in the urban core. In most of those areas, they say, there is high demand for inexpensive but decent housing, and a large supply of badly deteriorated but solidly built apartments that are candidates for renovation. Often, when conditions get bad enough, those buildings are condemned and torn down. Result: occupants are left to fend for themselves in an unforgiving rental market, and the community fabric becomes further frayed. Meanwhile, most affordable housing projects built with federal subsidies are large and costly. By law, those can't favor those already living in the neighborhood. The newly rehabbed building was a tear -down candidate, too, noted Miami Commission Chairman Ken Russell. Saving it meant not only preserving the structure but also the neighborhood. "We have a crisis right now," Russell, who is also the Omni CRA chairman, said. "But it's not just about building new towers. It's about holding the bones of what we have now for the people who are here now." The formula requires marrying the skills and financing of an experienced private developer with public subsidies and the willingness to cut through the red tape of the CRA, which collects a percentage of property tax revenue from new development within the Omni district. With construction in the area booming, the formerly strapped agency now expects rising revenue that can be put to work rehabbing more housing. Jain's 16 Corner is the first affordable -housing project by the Omni CRA, though its neighbor to the south, the Overtown CRA, has helped finance dozens of units. What's unusual about the Omni CRA approach is its emphasis on preserving buildings and keeping people in place. The agency provided $1.8 million for purchase of the five buildings and $2 million more towards renovation costs, with Jain putting up the rest. The project's total cost, Jain, estimates, will be $6.5 million. Jain's Vagabond group, working with Mt. Zion Church's community redevelopment corporation, will manage and maintain the property. To help keep costs low, Jain did not take a developer's fee, though she does expect to make a small profit. The CRA subsidy is what makes it possible for her not to raise rents, Jain said. Otherwise, the $80,000 per unit purchase cost and the $60,000 per unit rehab cost would have required rents to roughly double, she said. Without the revenue, no bank would finance such a project, Jain said. "The numbers don't work. That's why they stay slums," Jain said. Another advantage in working with the CRA is that the agency can work quickly, is flexible enough to design its own policy, and is not bound by sometimes onerous administrative and paperwork requirements to qualify for federal tax credits or other subsidies. Those can make a project nearly impossible for a small or mid -size developer, she said — another obstacle to financing the kind of small-scale rehab projects she believes are needed. Jain completed a small, federally subsidized 24- unit project with Miami -Dade County in Little Haiti that involved renovating a historically designated courtyard -style motel, but said she won't do so again because of the time and money spent on administrative requirements. The Overtown project, by comparison, can be a case study. CRA executive director Jason Walker, who recruited Jain, developed a blueprint that can be repeated. Future projects could move even more quickly because legal and other kinks were worked out for 16 Corner, CRA administrators said. The lesson, Jain said, is that tackling the city's affordable housing crisis can be relatively straightforward, and the payoff significant. "Take these old buildings, don't knock them down, don't displace people," Jain said. "It keeps communities and the texture of the neighborhood intact. It's important for Miami." Available online: https://www.miami herald. com/news/local/community/miami-dade/ article230352704.html CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123NW14St It is not intended to be distributed to any third party without the written consent of CAPROCK 123, LLC. Mixed -Use 50% AMI Residences 44 nssc�. Miami, FL 33136 0 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL ISM" i i Enterprise, ENTERPRISE COMMUNITY PARTNERS, "TIPPING THE SCALE: PRESERVATION TOOLKIT FOR SMMF PROPERTIES," 2020. KEYS TO SUCCESS Pre-existing relationships - The partners were able to move quickly to acquire this high -density structure by establishing a relationship between the nancier and developer before a property was identified. Plus, the developer's existing relationship and responsiveness to local government helped build community support. Financing for quick acquisition - The Omni Community Redevelopment Agency (CRA)'s ability to issue Tax Increment Financing (TIF) provided the needed capital to overcome one of the most challenging aspects related to preserving unsubsidized affordable SMMF properties: acquisition. While access to TIF can be rare, quick capital for acquisition exists in a variety of forms from market to market (e.g., local housing trust funds, philanthropic funding, predevelopment loan funds). Reducing transaction costs - Increasing the amount and reducing the frequency of draws during construction reduced administrative burdens and helped keep the project on schedule. Maintaining rents and rotating construction to prevent displacement - The financing, including public subsidy, ensured partners could maintain existing rent levels. By nding a building that had a 20 percent vacancy rate and rotating rehabilitation activities from unit to unit, project partners able to house all current residents during renovations. Continuity of property management - By retaining the services of the previous property manager, project partners gained a nuanced understanding of the property and additional buy -in from the residents. PROPERTY OVERVIEW 16 Corner is a 44-unit affordable and workforce rental apartment complex consisting of five buildings across three connected parcels in Miami's Historic Overtown neighborhood (see Figure 1). This project would not have been possible without a public -private partnership between The Vagabond Group, Omni CRA, and the Mt. Zion Community Development Corporation (CDC). These historic properties from the 1950s underwent a complete rehabilitation and bene tted from TIF from the Omni CRA—the first use of TIF for affordable housing in the district. PROPERTY IDENTIFICATION The Omni CRA boundary stretches across Historic Overtown, which is bordered by a strong real estate market on one side and a weaker market on the other. Real estate speculation had intensi ed in the area as a result of these market conditions and the neighborhood's proximity to activity centers, major transportation systems, and anchor institutions like the Adrienne Arsht Center for the Performing Arts. In the face of that speculation, staff at the Omni CRA were constantly seeking opportunities to maintain affordable options for residents in the neighborhood, regularly scouring online databases of real estate listings. One of the primary selling points for 16 Corner was the site's existing density, which was higher than would be allowable for new construction in the neighborhood, since zoning had been updated. Partners ' CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 45 nssc� Miami, FL 33136 O 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL were able to redevelop the buildings as one project and achieve economies of scale. The previous owner was eager to sell the property, given the poor condition of the property. The Vagabond Group and Omni CRA purchased the property for $3,700,000. RELATIONSHIP BUILDING Strong relationships were key to 16 Corner's success — notably the existing relationship between the developer and financier, long-standing trust between public -sector decisionmakers and the developer, and responsiveness to community concerns. Before the property was identifed, staff at the Omni CRA and The Vagabond Group had expressed interest in working together, allowing them to quickly collaborate when the property became available. The project was initially met with some skepticism by local decisionmakers, but The Vagabond Group's reputation for historic renovation and high- quality developments helped to ease these concerns.Some residents expressed apprehension about a for -profit developer to purchasing land in the neighborhood. Hearing and acknowledging the concerns of neighborhood residents, the project partners approached the Mt. Zion CDC to work more directly and collaboratively with neighborhood residents. The Mt. Zion CDC agreed to join the project in exchange for a 7.5 percent ownership stake in the value of the property at the end of its 30-year affordability covenant. FINANCING THE DEVELOPMENT As one of the lead partners on the project, Omni CRA was able to cover the cost of acquisition, which is often one of the greatest barriers to preserving unsubsidized affordable SMMF in stronger real estate markets. Using its discretion over TIF funds, Omni CRA issued a forgivable loan for the acquisition cost. The loan would be forgiven after the property satisfied a 30-year affordable housing covenant. The only public subsidy came from the Omni CRA (see Table 1). No additional local, state or federal funds were The Vagabond Group was also capable of donating its developer fee to help close the gap. The 16 Corner project is a testament to the value of atypical sources of public subsidy to support affordable housing, securing cheap equity early, and striving for a simplified capital stack. Rehabilitation took roughly 10 months. The hard costs per unit were $67,000. The most expensive elements were general contractor fees, new electrical and plumbing systems and structural repairs. To improve the property's resilience, the buildings were updated to include storm -certified roofs, impact windows, and hurricane straps. To reduce utility costs for residents and increase the value of the property, the partners used materials that would perform better over the property's lifecycle, including more energy -efficient insulation and water-resistant drywall. TABLE 1. SOURCES PUBUC SOURCES Omni CRA' $3,800,000 $86,364 PRIVATE SOURCES Bankfin4ncing $1,800,000 $40,909 DevelaPer equity $450,000 $10,227 Donateddevelaperfee $330,000 $12,500 S6,rtfall S754,248 $17,142 TOTAL $7,354,248 $167,142 CAPROCK 123, LLC The content of this presentation is proprietary and confidential information of CAPROCK 123, LLC. PROJECT PEACH 123 NW 14 St It is not intended to be distributed to any third party without the written consent of CAPROCK 123,LLC. Mixed -Use 50%AMI Residences 46 Assc�. Miami, FL 33136 0 2021 CAPROCK 123, LLC All rights reserved. Historic Overtown, Miami, FL