DV Urban Realty Partners I LP REAL ESTATE PORTFOLIO OVERVIEW

DV Urban Realty Partners I LP REAL ESTATE PORTFOLIO OVERVIEW

EXECUTIVE SUMMARY General DV Urban Realty Partners I L.P. (the Partnership ) is a value added real estate investment fund. The principals (the Principals ) of the General Partners are Allison S. Davis, Jared A. Davis and Robert G. Vanecko (see Management below). The Partnership was organized in April 2006 and has Capital Commitments of $71.5 million from institutional investors. Investment Objective and Strategies The Partnership s objective is to generate attractive risk-adjusted rates of return through investment in urban real estate in Chicago and other select urban markets. The Partnership will employ an investment discipline that has been successfully used in other real estate investments made by Affiliates of the General Partners. The Partnership will seek to create value through the acquisition, development, redevelopment and repositioning of real estate in Chicago and other targeted markets. Transitional as well as established neighborhoods will be targeted, including areas which can become established through the very process of building the Project in question. Key elements of the Partnership s strategy include: Focus on Urban Markets The Partnership will attempt to identify emerging and transitional neighborhoods with one or more of the following characteristics: Above-average population growth Strong and densely concentrated purchasing power Highly desirable locations Lack of capital investment Pro-growth environment Value Investing Purchase development sites and operating properties at attractive valuations by emphasizing overlooked markets and privately negotiated transactions. Institutional Quality Develop high-quality properties and strategically upgrade acquired properties to institutional quality. Aggressive, Value-Added Property Management Actively manage properties to enhance cash flow and maximize long-term residual value. Neighborhood Rejuvenation Participate in and contribute to the rejuvenation of targeted markets, and the resulting increase in real estate values. Prudent Use of Leverage Utilize leverage prudently, controlling interest rate and repayment risk. The Partnership itself will only borrow for bridge financing purposes and will not permit the Projects which it controls to borrow 2

more than 70% loan to value without the approval of the Advisory Committee. Disciplined, Flexible Exit Strategy Identify a proposed exit strategy before an investment is made and position assets to take advantage of a variety of possible exit alternatives, including single asset sales, portfolio sales and REIT-related transactions. Investment Highlights Attractive Niche Investment Opportunity Select urban real estate markets represent an attractive niche investment opportunity. Many urban markets have strong demographic characteristics and attractive locations, but have been overlooked by traditional investors. Specialized Expertise in Urban Real Estate Through their participation in urban real estate markets over the past 30 years, the Principals and Affiliates of the General Partners have developed extensive expertise in the specialized factors that determine success in urban real estate investments. These factors include the knowledge of the economic, demographic, political, social and cultural characteristics of specific urban neighborhoods, value-added relationships with local political, business, community and religious leaders and expertise in zoning and governmental approval processes. The General Partners will attempt to leverage the Principals extensive urban market knowledge and relationships to originate attractive investment opportunities. Extensive Development Experience The Principals have extensive urban real estate development experience. Their projects, which are in various stages of development, include multi-family properties, single-family homes, town homes and condominium and retail properties. The Principals collective experience includes all aspects of the development process including conceptualization, design and engineering, legal and governmental approvals, financing, construction management, leasing, property management and exit. Strong In-House Property Management Capability Through DV Property Management, an affiliate of the General Partners, the Partnership will have access to dedicated in-house property management capabilities. Due to DV s property management capability, the General Partners believe the Partnership should be able to provide a higher level of tenant service, which should result in higher occupancies and stronger, more secure cash flows. This capability can enable the Partnership to employ a variety of strategies to add value to its properties while further controlling risks. 3

Financial and Capital Markets Experience The Principals have extensive real estate and corporate transactional experience, including involvement in real estate capital raising transactions totaling over $1.1 billion for public and private REITs and real estate operating companies. The Partnership expects to draw on this experience in structuring its investments. In addition, the General Partners believe that their combination of real estate experience and capital markets expertise gives the Partnership the opportunity to identify and exploit market inefficiencies arising from shifts in real estate fundamentals and capital flows across asset types, geographies, transaction sizes and capital structures. Rigorous Investment Process The Partnership will employ a disciplined and rigorous approach to all phases of the investment process. The General Partners will focus on conservative underwriting and comprehensive due diligence. The consent of both General Partners is required before the Partnership can commit to any real estate Project. Post-acquisition, the Partnership will actively manage and monitor the investment while evaluating possible exit alternatives. Focus on Capital Preservation A core component of the Partnership s investment philosophy will be a focus on capital preservation. Although real estate investment risk can not be eliminated or directly hedged, the Partnership will place a special emphasis on risk control in structuring its investments. Management The Principals, collectively, have extensive experience in (a) conceiving, promoting and executing a variety of successful projects in emerging and transitional urban markets of the type targeted by the Partnership, (b) structuring, negotiating and executing a wide variety of real estate and corporate transactions, (c) real estate development, acquisition and property management, (d) zoning and government approval processes and (e) real estate finance and investment banking. The Partnership will have access to the Principals network of corporate, neighborhood, financial and real estate contacts and relationships to generate a proprietary flow of potential investment opportunities in its target markets, as well as the Principals financial knowledge and capital markets expertise in evaluating and structuring real estate-related transactions. Over the past 7 years, Affiliates of the Managing Partner have invested in transactions involving more than 15 real estate assets with an aggregate estimated total cost in excess of $600 million in emerging and transitional neighborhoods in Chicago. The Principals of the Managing Partner have committed over $15 million of equity capital to these transactions and have been involved in the development of more than 2,000 units of housing. The Principals have also been involved in real estate capital raising transactions totaling over $1.1 billion for public and private real estate investment trusts and real estate operating companies. 4

1212 S. MICHIGAN AVE. APARTMENTS 5

PROPERTY SUMMARY 1212 S. MICHIGAN AVE. Property Name: 1212 S. Michigan Ave. Apartments Property Address: 1212 S. Michigan Ave., Chicago, IL 60605 Property Type: Multifamily Closing Date: September 29, 2006 Market: Submarket: Chicago, IL South Loop Number of Units: 344 Description Units Unit Size (SF) Total Size Unit Mix: Studio 29 555 16,095 Studio 29 555 16,095 Studio 29 570 16,530 Studio 27 575 15,525 Studio 29 567 16,443 1BR/1BA 29 620 17,980 1BR/1BA 29 677 19,633 1BR/1BA 29 692 20,068 1BR/1BA 29 704 20,416 1BR/1BA 29 708 20,532 2BR/2BA 27 968 26,136 2BR/2BA 29 1,055 30,595 Total / Avg. 344 686 236,048 Number of Parking Spaces: 217 Residential Square Feet: Approx. 237,000 Commercial Square Feet: Project Amenities: Property Management: Approx. 6,500; pursuing expansion to 15,000+ SF Property amenities include attached garage, fitness center, business center, pool and dry cleaner. The property is being managed by DV Property Management, LLC. Other Investors: None 6

Jobs Created: Affordable Units: Occupancy: The property has a staff of 10 people, including 5 union personnel (engineering & maintenance staff) Approx. 20 tenants have Sec. 8 vouchers that provide subsidized rents The property was approximately 93% occupied as of April 30, 2009. 7

2400 S. MICHIGAN AVE. 8

PROPERTY SUMMARY 2400 S. MICHIGAN AVE. Property Name: 2400 S. Michigan Ave. Property Address: 2400 S. Michigan Ave., Chicago, IL 60605 Property Type: Commercial Closing Date: June 8, 2007 Market: Submarket: Chicago, IL South Loop Commercial Square Feet: Approx. 40,000 Other Investors: Jobs Created: Affordable Units: 2400 South Michigan Ave. LLC (Matthew O Malley, Brian O Connell) To be determined in the future upon redevelopment of the property NA 9

217 N. JEFFERSON 10

PROPERTY SUMMARY 217 N. JEFFERSON Property Name: 217 N. Jefferson Property Address: 217 N. Jefferson St., Chicago, IL 60661 Property Type: Office Closing Date: July 13, 2007 Market: Submarket: Chicago, IL West Loop Number of Parking Spaces: 40 Commercial Square Feet: 59,227 Tenants: Project Amenities: Property Management: Other Investors: Occupancy: Trattoria Isabella, McCormick Braun Friman, Neohapsis, Jack Morton Worldwide, Terrapin Properties, Bischoff Partners, Law Offices of Joseph Howard Property amenities include a surface parking lot, lobby and ground floor restaurant. The property is being managed by DV Property Management. Investor group led by Michael Ezgur and Jake Geleerd The property was approximately 67% occupied as of April 30, 2009. 11

7100 SOUTH SHORE DRIVE 12

PROPERTY SUMMARY 7100 SOUTH SHORE DRIVE Property Name: 7100 South Shore Drive Apartments Property Address: 7100 South Shore Drive, Chicago, IL 606 Property Type: Multifamily Closing Date: July 31, 2007 Market: Submarket: Chicago, IL South Shore Number of Units: 162 Unit Mix: Number of Description Units Unit Size (SF) Total Size Studio 18 350 6,300 Studio 10 400 4,000 Studio 19 470 8,930 1BR/1BA 2 470 940 1BR/1BA 50 640 32,000 1BR/1BA 22 700 15,400 1BR/1BA 30 740 22,200 1BR/1BA 7 780 5,460 2BR/1BA 4 1,000 4,000 Total / Avg. 162 613 99,230 Number of Parking Spaces: 28 Residential Square Feet: Approx. 99,468 Commercial Square Feet: Approx. 9,250 Project Amenities: Property Management: Property amenities include attached surface parking lot, lobby, laundry room and salon. The property is being managed by DV Property Management, LLC. Other Investors: None 13

Jobs Created: Affordable Units: Occupancy: The property has a staff of 4 people. Approx. 8 tenants have Sec. 8 vouchers that provide subsidized rents. The property was approximately 88% occupied as of April 30, 2009. 14

3508 S. STATE 15

PROPERTY SUMMARY 3508 S. STATE Property Name: Property Address: Property Type: Park Boulevard Retail 3508 S. State St., Chicago, IL Retail / Commercial Closing Date: August 31, 2007 Market: Submarket: Commercial Square Feet: Tenants: Other Investors: Jobs Created: Government Incentives: Chicago, IL Bronzeville 6,981 Phase I; 16,014 total Starbuck s Coffee; National City Bank; Jimmy John s sandwich shop, Fed Ex Kinko s; Mother Butter s, Miller Pizza. None The Park Boulevard Retail space is expected to generate approximately 40 new jobs. The property is located within a Federal Empowerment Zone and a City of Chicago TIF district. Occupancy: The property was approximately 88% leased as of April 30, 2009. 16

3030 N. BROADWAY 17

PROPERTY SUMMARY 3030 N. BROADWAY Property Name: Property Address: Property Type: 3030 N. Broadway 3030 N. Broadway Ave., Chicago, IL Mixed Use Retail, Parking, Condos Closing Date: March 3, 2008 Market: Submarket: Chicago, IL East Lakeview Commercial Square Feet: 45,000 Tenants: Other Investors: Jobs Created: Occupancy: Dominick s Finer Foods, National City Bank 3012 N. Broadway LLC (Michael O Connor and Jonathan Zitzman) The Dominick s and National City retail spaces are expected to generate approximately 150 new jobs. NA (development project). 18

3013-27 N. WATERLOO 19

PROPERTY SUMMARY 3013-27 N. WATERLOO Property Name: Property Address: Property Type: 3013-27 N. Waterloo 3013-27 N. Waterloo Court, Chicago, IL Multifamily Rental Closing Date: March 3, 2008 Market: Submarket: Chicago, IL East Lakeview Number of Units: 50 Other Investors: Occupancy: None NA (development project). 20

3348 S. PULASKI 21

PROPERTY SUMMARY 3348 S. PULASKI ROAD Property Name: Property Address: Property Type: 3348 S. Pulaski 3348 S. Pulaski Road, Chicago, IL Industrial Closing Date: November 27, 2007 Market: Submarket: Chicago, IL Little Village / I-55 Industrial Corridor Commercial Square Feet: 320,000 Tenants: Other Investors: Jobs Created: Bus & Truck of Chicago, Department of Water Management City of Chicago, Koch Equipment, Springfield Supply Sydney Partners LLC (Anthony Burns and Jeff Josephs) TBD. Occupancy: The property was approximately 69% leased as of April 30, 2009. 22