Criterion Branding Part 02

equityinvestment

proposal

Contents

01 / Project Overview

02 / Executive Summary

03 / Architectural Schematics

04 / Sponsor Information

ProjectOverview

A high–rise hotel style apartment building in the heart of bustling Long Island City.

the project

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The project is located in the heart of Long Island City and within blocks of Citibank Operation headquarters, Tishman Speyer’s Gotham Center, the UN Credit Union Building, and PS1 Museum. Additional buildings are in the construction phase including the Rockrose residential tower which will also house Law School of the City University of New York.

44 – 41 Purves St. Long Island City, NY

Brooklyn Queens ExpyLong Island Expy

Grand Central Pkwy

COMPLETED PROJECTPROPOSED PROJECT

LGA

Manhattan

Queens

Site Location

Nearby Criterion Properties

SITE LOCATION

ExecutiveSummary

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Acquisition CostLand was acquired on January 12, 2012 for a distressed sale price of $8,218,290 inclusive of all settlement costs; translating to $68.49 per square foot (“SF”). The price is 30% below current market value.

Property DescriptionLand Area of 15,000 SF known as 44-41 Purves Street registered under Queens County; Block 267; Lots 5, 6, 8 & 9 and zoned for 120,000 build-able SF. The subject property is the Left Tower shown on the project renderings.

Development CostTotal development cost is estimated to be $45,147,000 +/- sourced with $33,000,000 (73%) construction loan and $12,147,000 (27%) as equity.

Projected RentsThe projected rents are $43.00 PSF/annum which is below the current market rents of $45.68 PSF as provided by tvhe marketing agent, Citi-habitats.

Building Size, Unit Count & MixThe building will have 150 units with 111,385 net rentable square footage. The unit mix will be 25-studios; 100-one bedroom; 24-two bedrooms; and 1-three bedroom. All units are designed to have maximum efficiency.

Executive Summary

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ValuationThe project is expected to net $3.63 million income which results in a net value of $55,056,000 and a profit of $9,908,000.Returns & Hurdles Preferred Return of 12% to Equity Investor Upside Split Above Pre-ferred: 80% Equity Investor & 20% Sponsor

Marketing AgentThe project will be leased by Citihabitats Marketing Group - the largest residential brokerage firm in NYC. Their affiliates include Cold-well Banker, Coldwell Banker Com-mercial, Sotheby, and Corcoran.

421-A Tax AbatementThe Project is entitled to a 15 year tax abatement.

TimingTotal project term is 39 months from the land acquisition date. Construction is set to start on 10/01/2012 and completed by 10/1/2014. Leasing is expected to begin on 10/1/2014 and stabilized by 4/1/2015.

SponsorCriterion Group LLC, the sponsor, is a prominent local residential de-veloper and focuses on the Queens niche market. With an in house de-sign built capability, Criterion has consistently delivered its’ projects on time and within budget.

StudioRenderings

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Location The project is located in the heart of Long Island City and within blocks of Citibank Operation headquarters, Tishman Speyer’s Gotham Center, the UN Credit Union Building, and PS1 Museum. Additional buildings are in the construction phase including the Rockrose residential tower which will also house Law School of the City University of New York.

Car AccessCar access to Manhattan is within a few blocks via the Midtown Tun-nel and Queensboro (59th Street) Bridge. Long Island Expressway is easily accessed from the subject property, providing only a short drive to LaGuardia Airport, JFK Airport and CitiFields.

Subway AccessLong Island City is a transportation hub and the project is within walking distance of several major subways which are all one train stop into midtown Manhattan:

The Queensboro Plaza Station:

Citibank Court Square Station:

OverallThe transportation infrastructure, recent rezoning and beautification of the area by the NYC Depart-ment of City Planning, priced out Manhattan residents moving in, and the inherent demand created by relocation of the various office employees into the area are the primary contributors to the enor-mous residential growth of Long Island City.

Neighborhood Information

7 E M N R Q

E F G

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Bulding AmenitiesPool & Private Fitness ClubSaunaConcierge Service 24/7 Outdoor Playground on Green RoofResidential Library Lounge with WiFiResident Only Entertainment Space & Roof Deck with Catering KitchenRoof Top Barbeque Facility Sun Tanning Area with Outdoor ShowersPet Grooming AreaBicycle StorageSky Lounge Private Dining Room

Residence FeaturesIndividual Climate Control System in Each UnitSolid Oak FloorsAmple Closet SpaceRecessed Down Lights Efficient Layouts with Flexibility for Different Sharing ConfigurationsWired for High-Speed Data and Cable ConnectionBosch Stacked Washer and Dryer in Each Unit9-Foot Finished Ceilings

Planned Features

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BathroomKohler TubKohler Under Mount Sink VanityKohler ToiletGrohe Faucet and Shower FixturesStone CountertopsCustom VanityRecessed Medicine Cabinets with Full Wall MirrorRadiant Heat Flooring

KitchenEuropean Style Kitchens with Integrated GE Stainless Steel AppliancesFour Piece Appliance Packages: Refrigerator, Dishwasher, Gas Stove, MicrowaveAll Kitchens are Centrally ExhaustedGrohe Faucet Stone Vanity Counter TopsCustom Glass Tile Backsplash

Archiectural Schematics

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Two dimensional exterior views of proposed buildingElevations

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UNIT LAYOUTSTUDIO

UNIT LAYOUT 1 BEDROOM

TYPE A

Floor plans for various unit typesUnit Layouts

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UNIT LAYOUT2 BEDROOM

UNIT LAYOUT1 BEDROOMTYPE B

SponsorInformation

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Business PhilosophyCriterion is one of the leading investors and managers of real estate in New York. Our goal is to invest in buildings providing qual-ity living at affordable prices. We invest where people want to live, in urban settings offering a full array of amenities and transportation al-ternatives. Ease of access to mass transit is one of the keys to suc-cess in times of financial distress or rising fuel prices. In large measure, we have achieved this position by recog-nizing opportunities where most others see only difficulties. We then transform these opportunities into assets of greater value. Our ability to do so is the result of a philosophy of approach-ing each investment property as a stand alone business in order to create maximum value for our buy-ers and partners.This philosophy, combined with a culture that encourages creativ-ity and unconventional thinking across a variety of disciplines, has enabled Criterion to acquire and manage an ever expanding base of assets.

About Criterion

Vertical IntegrationCriterion’s vertical integration is one of the keys to its success. Our multi-disciplinary teams enable us to envision a broader array of possibilities than others. We have the skills and experience in house-in acquisitions, planning and design; asset management; tax and risk management; dispositions; finance; and client services. All these smoothly integrated services allow us to add value to every aspect of a property.

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Our Team Criterion’s managing team has more than 20 years of combined experience in various aspects of the real estate market including acquisition, due diligence, market research, capital formation, invest-ment structuring, asset manage-ment, disposition and strong expe-rience in identification of distressed assets. Criterion’s management philosophy places utmost im-portance on its Principals being directly involved in all key elements of its business. The Principals have invested in over $340 million of real estate transactions throughout the U.S. and across all major property sectors since the inception of Cri-terion in 2002.

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Capabilities

Develoment PhilosophyEvery investment begins with a comprehensive valuation and ac-quisition process. With many years of combined experience in com-mercial real estate, Criterion can make accurate and timely deci-sions in house, allowing Criterion to move quickly on opportunistic investments. All valuation models are then supported by 3rd party affiliates to mitigate any potential market uncertainty. Local market knowledge and expertise is central to the formulation and execution of our investment strategy. Crite-rion’s equity partners gain access to privately negotiated, off-market transactions and further benefit from our proven expertise in leas-ing, property management, and asset management. Local market knowledge and expertise is central to the formulation and execution of our investment strategy. Our extensive network of relationships enables us to identify opportunities before they reach the market. Criterion’s equity partners gain access to privately negotiated, off-market transactions. This enables Criterion to create value for our buyers and partners.Design & ConstrutionThrough Criterion’s vast network, Criterion partners and hires skilled design and construction profes-sionals that have a unique track re-cord overseeing the completion of high quality construction projects. Criterion only partners with efficient General Contractors with strong track records. Criterion’s team has over 20 years of real estate and finance experience in all types of residential and commercial prop-erty development.

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Through Due Dilligence

+1 Analysis of the supply and de-mand dynamics in the selected market and its submarket.

+2 Exhaustive analysis of rent rolls, expense line items and capital require-ments.

+3 Through local knowledge and hands on experience Criterion can determine if there is underlying value that can be unlocked.

+4 Detailed review of the existing or proposed financial structure.

+5 In-house management and coor-dination of legal counsel, environmen-tal consultants and property valuation. Third party reports will be obtained to verify all key elements of the transac-tion.

The due diligence process includes:

Criterion’s in house professionals carefully manage each element of the due diligence process to increase the likelihood of the successful acquisition of an existing property or the invest-ment in a new property.

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The Criterion Group, LLC was founded in 2002. The managing principals complement each other with over twenty years of relevant experience.

20 years.

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WHAT WE DO

We are personally involved in all aspects of the real estate development process: valuation, pre-development, planning & design, construction management, asset management, and final disposi-tion. Making these precise decisions in house, in an industry that is constantly evolving and highly com-petitive, is our greatest strength.

Criterion invests and develops in niche markets such as Long Island City, Astoria, and Flushing. These communities are in close proximity to Manhattan are densely populated, culturally diverse, and are in very short supply of quality residential buildings. Encum-bered by high demand, they are ideal for small fami-lies, young professionals, and individuals seeking quality housing in lively neighborhoods within min-utes to midtown Manhattan.

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Type Residential Units 61Gross SF 100,357Project Duration 36 MonthsCompletion Date 2009Status Sold

Flushing Terrace140-21 32nd AvenueFlushing, NY

Type Residential Units 65Gross SF 62,059Project Duration 30 MonthsCompletion Date 2011Status Stabilized

30-50 Apartments30-50 21st StreetAstoria, NY

Criterion Group, LLC

Criterion is one of the leading investors and managers of real estate in New York. Our goal is to invest in buildings providing quality living at affordable prices. We invest where people want to live,

Type Residential Units 271

Gross SF 269,759Project Duration 39 MonthsCompletion Date April 2015

Status Design Phase

Purves Towers 41-44 Purves StreetLong Island City, NY

Type Residential Units 208

Gross SF 196,681Project Duration 34 MonthsCompletion Date April 2013

Status Under Construction

Broadway Residence II12-15 Broadway

Astoria, NY

Type LandUnits 1

Gross SF 570,360Project Duration 11 years

Completion Date Winter 2016Status Long Term

West FilbertGreyhound Bus Terminal

1001-1025 Filbert St. Philadelphia, PA

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Type LandUnits N/AGross SF N/AProject Duration 36 MonthsCompletion N/AStatus Sold

City Gate41-46 24th St. Long Island City, NY

Type Residential Units 79

Gross SF 88,137Project Duration 42 Months

Completion Date August 2012Status Leasing

Broadway Residence I11-15 Broadway

Astoria, NY

Type Residential Units 36Gross SF 34,359Project Duration 24 MonthsCompletion Date 2009Status Sold

The Astor12-26 30th AvenueAstoria, NY

in urban settingsoffering a full array of amenities and transportation alternatives. Ease of access to mass transit is one of the keys to success in times of financial distress or rising fuel prices.

Type Residential Units 117

Gross SF 124,197Project Duration 36 Months

Completion Date 2010Status Sold

One Astoria Square26-24 21st Street

Astoria, NY

Type Residential Units 28Gross SF 45,045Project Duration 36 MonthsCompletion Date 2008Status Sold

The Astoria21-24 30th AvenueAstoria, NY

Selected Projects