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Offering Name Mezzanine Loan Participation in Racquet Club Apartments

Originator, Servicer & Sponsor

Pillar Finance, LLC or one of its affiliates

Available for Participation

$1,260,000 (90% of total outstanding loan amount)

Sponsor Participation

$140,000 (10% of total outstanding loan amount)

Minimum Investment $25,000 per investor

Loan Term 60 months Originated November 2014

Investor Net Return 9% annual return (after Servicing and Administration Fee)

Payment & Reporting Frequency

Quarterly

Annual Servicing and Administration Fee

1%

Prepayment Provisions

The mezzanine loan is open to prepayment, subject to a prepayment premium equal to the greater of Yield Maintenance and 5%, except for the last 90 days, at which time the loan is prepayable at par. To the extent a prepayment premium is received, Investors will receive the lesser of (a) Yield Maintenance and (b) 4% of the principal prepaid in year 1 of the loan term, 3% in year 2, 2% in year 3 and 1% in year 4.

Loan to ValueCurrent: 81% CLTV (Based on Net Funded Loan Amount) As Cured: 74% CLTV

The Offering Opportunity to purchase participation interests in a mezzanine loan secured by membership interests in the entity that owns a 200-unit apartment community in Lancaster, CA (Los Angeles County) offering a 9.00% return. This class of investment has traditionally been available only to institutional investors but Pillar is now opening this opportunity to all accredited investors through EarlyShares.com.

•  Founded in 2010, Pillar is a privately held real estate financing company. The Pillar team originated both the first lien and mezzanine loan associated with this offering. They will continue to maintain a 10% ownership in the mezzanine loan and will continue to direct servicing of the loan.

•  As a privately held affiliate of Guggenheim Partners, Pillar has access to a broad range of resources to meet their clients’ financing needs. Pillar focuses on serving owners of multifamily and healthcare properties.

•  Pillar is one of just a handful of lenders in the country that is certified as a Fannie Mae Delegated Underwriting and Servicing Lender, a Freddie Mac Program Plus and Targeted Affordable Housing Seller Servicer, and a MAP approved Federal Housing Administration lender, as well as an approved Ginnie Mae Multifamily Issuer.

•  Principals and executive team includes: Robert P. Brennan, Jr., Principal and Senior Managing Director, Anand N. Gajjar, CEO and Senior Managing Director, Ed Hussey, Head of Multifamily Production, Howard Laskow, Chief Underwriter and Credit Officer-GSE, Paul A. Sherrington, Managing Director and General Counsel, and Jonathan White, Managing Director-CMBS.

June 2015

The Sponsor has engaged EarlyShares to act as the Company’s online intermediary technology platform in connection with the proposed private placement offering. This presentation has been submitted on a confidential basis by EarlyShares.com, Inc. (“EarlyShares” or the “company”) described herein. Its use for any other purpose is not authorized. Any reproduction or distribution of this presentation or transmittal of its contents, in whole or in part, without the prior written consent of the company is prohibited. The company does not make and expressly disclaims any representation or warranty as to the accuracy or completeness of the information contained herein, and none may be implied. No portion of this presentation may be duplicated for any purpose. This presentation contains certain information of a highly confidential nature. The receipt of this presentation constitutes an agreement on the part of the recipient hereof to maintain the confidentiality of the information contained herein or any additional information subsequently delivered in connection herewith. Prospective investors who accept this presentation or become aware of the information contained herein must understand and comply with the extensive federal and state securities law restrictions placed upon their ability to disclose information contained herein to others or to participate in or otherwise effect or facilitate any transaction relating to any securities of the company. Prospective investors who cannot comply fully with such restrictions should not review the information contained herein and should immediately return this presentation to the company. The content of the presentation, with regard to the current situation, opinions and expectations of EarlyShares.com, Inc. is based on information received from the Sponsor and other third parties and is considered correct. However, neither EarlyShares.com, Inc. nor their respective shareholders, directors, officers and employees, guarantee the completeness or accuracy of the contents of the presentation. Consequently, neither EarlyShares.com, Inc., their shareholders, their respective directors, officers and employees accept any liability whatsoever for any damages that may arise directly or indirectly from decisions adopted on the basis of the presentation or from the use that its recipient may make of it.

•  200-unit apartment complex located in prime location within the submarket. Total occupancy 93.5% as of July 2015.

•  Planned interior/exterior upgrades, provides significant upside rent increase potential. $1,138,000 ($5,690 per unit) was escrowed at closing to fund various property enhancements including interior upgrades of $500,000 and exterior painting of $100,000.

•  Capital stack at origination: Equity $2,280,000, Mezzanine Loan $1,400,000, First Lien Mortgage $10,700,000.

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Available for investment on EarlyShares.com

Offered by:  

Borrower

Collateral Property

•  At closing, the Borrower principals (and their respective trusts) owned approximately 40 multifamily properties containing over 10,000 units and had significant net worth and liquidity.

Offering Sponsor: Pillar, a Guggenheim Partners Affiliate

Mezzanine Loan Investment Opportunity Lancaster, CA 200-unit Apartment Community 9% Annual Return