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THE EASTERN TOWER Ͳ COMMUNITY CENTER PROJECT Chinatown, Philadelphia, Pennsylvania INVESTMENT OPPORTUNITY
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Page 1: PROJECT OPPORTUNITY INVESTMENTmembers.ozemail.com.au/~prestigefc/Philly Project...The Eastern Tower Project Chinatown, Philadelphia, Pennsylvania sponsor: contact JNA CAPITAL, Inc.

THE�EA

STER

N�TOWER

��Ͳ�COMMUNITY�CE

NTER�PR

OJECT

�Ch

inatow

n,�Philade

lphia,�Pen

nsylvania�

INVE

STMEN

T�OPP

ORT

UNITY�

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DISCLAIMER�AND�CONFIDENTIALITY�

��The�material�contained�herein�is�presented�for�informaƟonal�purposes�only�and�does�not�consƟtute�an�oīering�of�securiƟes�to�any�person.��Such�an�oīer�may�only�be�made�by�means�of�a�private�placement�memorandum�

which�describes�the�potenƟal�risks�as�well�as�the�potenƟal�rewards�of�making�an�investment.��Such�informaƟon�is�not�included�in�this�document.��Any�informaƟon�contained�herein�related�to�past�performance�should�not�be�relied�upon�as�n�indicaƟon�of�future�investment�performance.��Future�performance�is�based�upon�projecƟons�and�those�results�are�not�guaranteed.��This�document�may�not�be�reͲdistributed�or�reproduced�in�whole�or�in�

part�and�is�being�provided�on�a�confidenƟal�basis�and�not�for�disclosure.�

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The�Eastern�Tower�Project�Chinatown,�Philadelphia,�Pennsylvania�

sponsor:�

contact�JNA�CAPITAL,�Inc.�

2�Penn�Center�1500�John�F.�Kennedy�Blvd.,�Suite�1130�

Philadelphia,�PA�19102�T.�215.662.5500�

Ahsan�M.�Nasratullah�[email protected]�T.�215.662.5500�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�TABLE�OF�CONTENTS�

TABLE�OF�CONTENTS�

EXECUTIVE�SUMMARY�

BACKGROUND�

PROJECT�DESCRIPTION�

AREA�OVERVIEW�

LEASING�STRATEGY�&�AREA�MARKET�

FINANCIAL�STRUCTURE�

SPONSOR�&�TEAM�

1�

5�

9�

16�

19�

25�

36�

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EXECUTIVE�SUMMARY�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�EXECUTIVE�SUMMARY�

JNA�CAPITAL,�Inc.�is�pleased�to�present�a�financing�and�investment�opportunity�for�the�Eastern�Tower�Community�Center�(the�Eastern�Tower)�Project,�a�mixedͲuse�highͲrise�new�construcƟon�project�in�ChiͲnatown,�Philadelphia,�Pennsylvania.��Sponsored�by�a�local�nonͲprofit�community�development�corporaͲƟon,�the�Philadelphia�Chinatown�Development�CorporaƟon�(PCDC),�the�project,�currently�named�the�Eastern�Tower,�is�located�at�the�northwest�corner�of�10th�and�Vine�Streets�of�Philadelphia,�which�is�within�blocks�of�the�Pennsylvania�ConvenƟon�Center,�City�Hall,�the�NaƟonal�ConsƟtuƟon�Center�and�the�historic�district,�a�major�shopping�mall,�and�major�medical�insƟtuƟons.��For�over�10�years,�PCDC�has�enͲvisioned�this�project�as�a�response�to�two�major�community�challenges.��The�first�challenge�is�the�long�term�lack�of�any�community�center�facility�where�children�and�residents�can�congregate�for�recreaƟon,�educaƟon�and�social�interacƟon.��In�fact,�it�is�one�of�the�few�neighborhoods�in�Philadelphia�that�do�not�have�such�a�facility�within�its�boundaries.��The�second�challenge�is�from�the�large�insƟtuƟonal�developͲments�that�land�lock�Chinatown,�thus�creaƟng�a�threat�of�community�disintegraƟon.��In�2011,�PCDC�teamed�up�with�an�experienced�local�developer�and�launched�a�physical�development�plan�that�would�resolve�the�challenges�of�the�Chinatown�community.��The�Eastern�Tower�is�programmed�with�residenͲƟal,�commercial�and�retail�uses�along�with�the�community�center,�which�underwrites�to�the�lending�metrics�as�well�as�return�requirements�of�the�investment�community.��This�project�will�not�only�become�an�asset�of�the�Chinatown�neighborhood�but�also�create�synergies�that�will�drive�addiƟonal�economic�development�projects�in�the�area.��The�impact�of�the�proposed�development�will�have�significant�mulƟͲplier�eīects�beyond�Chinatown�and�well�into�the�City�and�the�region.��

PROJECT�OVERVIEW:�

2�

The�Eastern�Tower�Community�Center�Project�is�sponsored�by�the�PhilaͲdelphia�Chinatown�Development�CorporaƟon�(PCDC),�a�Philadelphia�local�community�development�organizaƟon.��PCDC�has�45�years�of�hisͲtory,�and�its�mission�is�to�preserve,�protect,�and�promote�Chinatown�as�a�viable�ethnic,�residenƟal�and�business�community.��Located�at�1001Ͳ11�Vine�Street,�Philadelphia,�PA�19107��It�is�located�in�the�downtown�Philadelphia�(Center�City),�but�the�area�has�been�leŌ�disinvested�and�underͲdeveloped�because�of�a�physical�gap�made�by�the�Vine�Street�Expressway�(IͲ676).��Approximately�219,000�square�feet�in�a�23Ͳstory�mixedͲuse�complex�with�approximately�25,000�SF�of�retail�and�oĸce�space,�approximately�17,000�SF�of�community�center�with�2�full�basketball�courts,�gym,�and�3�class�rooms�on�2nd�Floor,�and�143�rental�apartment�units�in�the�highͲrise�tower.��Total�of�approximately�$75MM�development�budget.��Financial�structure�currently�being�sought�comprises�the�New�Markets�Tax�Credit�financing,�EBͲ5�Immigrant�Investment�Program�Financing,�State�and�Local�government�grants,�donaƟons,�and�Sponsor�and�Private�Equity.�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�EXECUTIVE�SUMMARY�

3�

�Tenants�currently�being�considered�on�Ground�Floor�retail�space�inͲclude�a�pharmacy,�a�bank�branch,�a�postal�oĸce/shipping�store,�a�conͲvenience�store,�and�a�coīee�shop.��Tenants�currently�being�considered�on�3rd�to�4th�floor�oĸce�space�inͲclude�a�private�preͲschool,�charter�and�language�schools,�aƩorney’s�oĸces�and�a�medical�pracƟce�oĸce.��The�community�center�will�be�managed�by�a�new�company/organizaƟon�to�be�formed�by�PCDC,�which�will�be�the�tenant�of�the�space.��The�center�will�aƩract�local�sports�teams�and�events,�adult�dayͲcare�use,�and�local�school’s�gym�classes.��The�basketball�courts�are�conͲverƟble�to�a�banquet�hall,�which�aƩracts�parƟes�and�events.��This�will�be�the�single�largest�open�space�in�Chinatown,�which�will�hold�parƟes�and�meeƟngs�that�currently�cannot�be�accommodated�in�one�space.��The�class�rooms�are�used�for�language�classes,�computer�classes,�and�test�preparaƟon�classes.��Current�pro�forma�NOI�is�approximately�$3MM.��The�project�is�expected�to�serve�as�a�catalyst�for�Chinatown�North,�a�disinvested�and�underͲdeveloped�area�in�Philadelphia.��This�complex�will�aƩract�and�create�pedestrian�traĸc,�reconnect�the�physical�gap�between�the�south�side�and�the�north�side�and�extend�the�10th�Street�Commercial�Corridor.��This�project�will�create�esƟmated�333�FTE�shortͲterm�construcƟon�employments�and�91�FTE�longͲterm�building�emͲployments�directly.��Zoning�permit�has�been�approved.��Financial�closing�and�groundbreaking�is�currently�targeted�in�the�2nd�quarter�of�2014.�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�EXECUTIVE�SUMMARY�

4�

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BACKGROUND�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�BACKGROUND�

6�

CHINATOWN�BACKGROUND�

Beginning�with�opening�a�laundry�at�913�Race�Street�by�Lee�Fong,�a�Cantonese�immigrant,�in�1871,�PhilͲadelphia�Chinatown�has�been�growing�as�an�immigrant�gateway�community,�an�AsianͲAmerican�ethnic�cultural�center,�and�a�familyͲoriented�community.��In�the�midͲ1960s�large�numbers�of�families�began�moving�to�Chinatown�growing�the�neighborhood,�which�is�an�approximately�0.26�square�mile�area��in�the�northeastern�part�of�downtown�Philadelphia�(Center�City),�roughly�bounded�by�8th�Street�to�the�east,�13th�Street�to�the�west,�Filbert�Street�to�the�south,�and�Spring�Garden�Street�to�the�north.��HowͲever,�starƟng�in�the�1960s,�several�urban�renewal�projects�razed�and�divided�the�neighborhood,�and�today�over�25%�of�the�land�area�that�was�considered�as�the�Chinatown�community�was�lost.��The�GalͲlery�shopping�mall�created�a�visual�wall,�which�borders�the�south�end�of�Chinatown.��The�Pennsylvania�ConvenƟon�Center�claimed�four�blocks�of�land�to�the�south�and�west.��The�Regional�Rail�Commuter�TunͲnel�demolished�the�houses�above�it�just�east�of�9th�Street.��Among�the�urban�renewal�projects,�the�most�damaging�project�to�the�community�was�the�Vine�Street�Expressway�construcƟon.��Not�only�did�it�threaten�the�demoliƟon�of�the�Holy�Redeemer�Church,�which�is�one�of�the�most�important�community�centers�for�Chinese�Americans�in�Philadelphia�area,�but�the�Expressway�also�divided�the�community�into�north�and�south�sides.��The�core�Chinatown�remains�in�the�south,�and�the�north�was�leŌ�disinvestͲed�and�abandoned.���

DemoliƟon�along�Vine�Street�

PA�ConvenƟon�Center�ConstrucƟon� The�Gallery�bordering�Chinatown�neighborhood�

Vacant�Land�due�to�Commuter�Tunnel�Project�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�BACKGROUND�

In�this�historic�context,�sƟll�Philadelphia�Chinatown�has�grown�as�a�thriving�and�vibrant�neighborhood�and�integrated�into�the�economic�fabric�of�Philadelphia.��Chinatown�today�is�a�popular�tourism�desƟnaͲƟon�oīering�cultural,�retail,�and�dining�scene.��Chinatown�is�also�a�significant�contributor�to�the�growth�of�City’s�populaƟon�while�the�City�itself�has�suīered�steady�populaƟon�losses�for�decades�unƟl�a�small�increase�in�the�2010�Census.��However,�Chinatown�is�currently�facing�several�issues�as�a�community.�

Chinatown�is�a�gateway�for�many�newly�arrived�immigrants.��Behind�the�populaƟon�growth,�the�issue�is�that�more�than�38%�of�the�residents�are�living�below�the�poverty�level.��The�new�immigrants’�poor�acͲcess�to�proper�educaƟon�and�social�services�is�thought�as�the�major�cause�of�the�poverty.��Chinatown�is�also�one�of�the�densest�areas�in�the�City�of�Philadelphia.��Within�the�community,�finding�housing�and�places�to�safely�raise�family�is�geƫng�more�and�more�diĸcult.��Especially,�for�children�there�is�no�approͲpriate�indoor�public�recreaƟon�space�in�the�neighborhood.��There�is�also�an�aging�populaƟon�in�ChinaͲtown�in�need�of�fitness�and�healthcare�services�with�language�services.��Absence�of�those�services�within�the�community�is�an�issue.��Poor�access�to�educaƟon,�recreaƟon,�and�healthcare�services�for�current�residents�and�new�immigrants�in�the�Chinatown�community�is�today’s�outstanding�problem.�

The�urban�renewal�projects�in�the�1960s�negaƟvely�impacted�the�Chinatown�neighborhood�both�physiͲcally�and�socially.��Today,�new�development�trends�from�the�east�(Franklin�Square�redevelopments),�the�west�(LoŌ�District�developments,�and�the�south�(Market�East�redevelopments)�have�virtually�landlocked�the�neighborhood.��Chinatown�is�already�a�high�density�area.��More�and�more�aŋuent�ChineseͲAmerican�families�are�leaving�for�suburbs�and�even�newer�immigrants�are�having�a�hard�Ɵme�finding�quality�aīordable�housing�in�or�near�Chinatown.��Without�new�growth,�this�once�closeͲknit�community�is�now�facing�the�possibility�of�disintegraƟon.��The�redevelopment�of�the�north�side�of�the�Vine�Street�Expressway,�soͲcalled�“Chinatown�North”,�is�criƟcal.�

Current�North�Chinatown�View�of�10th�Street�

7�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�BACKGROUND�

8�

PROJECT�BACKGROUND�

The�Eastern�Tower�Community�Center�(the�Eastern�Tower)�project�was�envisioned�over�a�decade�ago�by�the�Philadelphia�Chinatown�community�and�Philadelphia�Chinatown�Development�CorporaƟon�(PCDC)�as�a�vibrant�and�safe�center�of�acƟvity�for�a�community,�which�is�lacking�in�public�recreaƟon�space.��The�locaƟon�was�purposeful�as�part�of�PCDC’s�eīorts�to�lead�and�seed�the�revitalizaƟon�north�of�the�Vine�Street�Expressway.��In�2004,�PCDC,�in�partnership�with�the�Delaware�Valley�Regional�Planning�CommisͲsion�(DVRPC),�the�City�of�Philadelphia,�William�Penn�FoundaƟon,�and�a�broad�group�of�community�stakeͲholders,�issued�the�“Chinatown�Neighborhood�Plan”.��The�plan�idenƟfied�the�project�site�and�placed�the�community�center�project�as�a�high�priority�development�in�the�Plan.���

The�Eastern�Tower�will�provide�a�much�needed�recreaƟonal�facility�in�a�community,�whose�closest�inͲdoor�public�recreaƟon�center�is�over�a�mile�and�3�neighborhoods�away.��It�will�also�become�an�icon�at�this�prominent�intersecƟon,�10th�and�Vine�Streets,�rising�23�stories�and�provide�a�mix�of�uses�and�densiͲty�that�will�create�needed�jobs�(both�fullͲƟme�and�construcƟon),�housing�stock,�recreaƟonal�space,�and�a�place�for�health�and�other�services.��In�addiƟon,�the�project�will�serve�as�a�catalyst�for�the�further�redeͲvelopment�of�the�10th�Street�commercial�corridor�up�to�Spring�Garden�Street.�

The�Eastern�Tower�Community�Center�project�has�the�strong�support�of�the�relevant�elected�oĸcials,�including�the�Mayor,�and�the�local�community.��PCDC,�the�project�sponsor,�is�completely�commiƩed�to�bringing�this�project�to�fruiƟon�and�looks�forward�to�working�with�partners�and�supporters�in�creaƟng�a�landmark�development�for�both�Chinatown�and�the�City�of�Philadelphia.�

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PROJECT�DESCRIPTION�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�PROJECT�DESCRIPTION�

SITE��The�project�site�is�located�at�1001Ͳ11�Vine�Street�and�314�N�10th�Street,�Philadelphia,�PA.��The�site�is�currently�controlled�by�the�Philadelphia�Redevelopment�Authority�and�will�be�transferred�through�a�ReͲdeveloper�Agreement�defined�by�the�Pennsylvania�State�Bill�HB1136�and�SB1103�Session�of�2007�to�a�single�purpose�enƟty�to�be�formed�by�PCDC.��The�new�highͲrise�complex�will�be�built�on�approximately�18,000�square�feet�(0.45�acre)�1001Ͳ11�Vine�Street�with�100%�coverage,�and�314�N�10th�Street,�approxiͲmately�1,280�square�feet,�will�be�used�for�surface�loading�and�service�area�for�the�building.��The�site�is�currently�vacant�land�and�used�as�a�surface�parking�lot.�

Current�Site�View��From�Southeast�Corner� 10th�Street�View�from�Site�facing�South�

10�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�PROJECT�DESCRIPTION�

BUILDING��Inspired�by�Chinese�woodwork�furniture,�the�building�is�designed�as�a�modern�interpretaƟon�of�Chinese�tradiƟonal�design�elements.��Approximately�219,000�gross�square�feet�complex�is�composed�of�4�funcͲƟons�of�uses;�retail,�community�center,�oĸce,�and�residenƟal.��The�ground�level�is�occupied�by�the�retail�spaces,�separate�lobbies�for�the�community�center,�the�oĸce�spaces,�and�the�residenƟal�apartments,�as�well�as�the�loading�dock�and�the�entrance�to�belowͲgrade�parking.��The�second�floor�is�for�the�commuͲnity�center,�the�3rd�floor�to�5th�floor�is�for�the�oĸce�spaces,�and�6th�floor�and�above�is�for�the�residenͲƟal�apartments.��The�building�is�designed�with�energy�eĸcient�systems�and�green�elements.��An�energy�eĸcient�building�envelope�and�green�roofs�are�among�its�sustainable�features.�The�23Ͳstory�(plus�one�belowͲgrade)�highͲrise�building�will�be�a�monumental�gateway�as�downtown�Philadelphia�is�approached�from�Interstate�95�and�New�Jersey.�

11�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�PROJECT�DESCRIPTION�

12�

CHINATOWN�EASTERN�TOWER�COMMUNITY�CENTER�PROJECT�PROGRAM

ARCHITECT: LAND�AREA: 19,396DATE: GROSS�BUILDING�AREA: 219,000SET: Zoning�Set�&�Design�Documents FAR: 1129%NOTE: Incl.�expecting�leasable�space�loss�&�deleted�parking�space EFFICIENCY�RATE: 66%

FLOOR GFA PARKING UNLEASABLE NOTE(Zoning�Set) COMMERCIAL RESIDENTIAL COMMERCIAL RESIDENTIAL RESIDENTIAL PARKING

BASEMENT 0 10,045 10,045 0 0 10,045 0GROUND 1 17,520 15,755 1,765 9,100 8,420 Retail2ND 1 18,655 18,655 0 16,940 1,715 Community�Center3RD 1 6,890 6,890 0 4,500 2,390 Office,�Roof�Garden,�Mech4TH 1 7,950 7,950 0 5,600 2,350 Office,�Mech5TH 1 7,950 7,950 0 6,200 1,750 Office6TH 1 7,950 7,950 5,529 2,421 7 LIL�Rent�Units7TH 1 7,950 7,950 5,743 2,207 8 LIL�Rent�Units8th 1 7,950 7,950 5,743 2,207 8 LIL�Rent�Units9th 1 7,950 7,950 5,743 2,207 8 LIL�Rent�Units10th 1 7,950 7,950 5,743 2,207 811th 1 7,950 7,950 5,743 2,207 812th 1 7,950 7,950 5,743 2,207 813th 1 7,950 7,950 5,743 2,207 814th 1 7,950 7,950 5,743 2,207 815th 1 7,950 7,950 5,743 2,207 816th 1 7,950 7,950 5,743 2,207 817th 1 7,950 7,950 5,743 2,207 818th 1 7,950 7,950 5,743 2,207 819th 1 7,950 7,950 5,743 2,207 820th 1 7,950 7,950 5,743 2,207 821st 1 7,950 7,950 5,743 2,207 822nd 1 7,950 7,950 5,743 2,207 823rd 1 7,950 7,950 5,743 2,207 8Roof 6,890 6,890 6,890 Roof�Garden,�MechTOTAL 23 219,000 67,245SF 151,755SF 42,340 103,160 0 73,500 143 0

100% 31% 69% 19% 47% 0% 34%

11/7/2012

LEASABLE�AREA

KlingStubbins�+�AKArchitect

UNITSGFA�PER�USE

RESIDENTIAL�SPACE�(6TH – 23RD FLOOR):�103,160�sf

OFFICE�SPACE�(3RD – 5TH FLOOR):�16,300�sf

COMMUNITY�CENTER�SPACE�(2ND FLOOR):�16,940�sf

RETAIL�SPACE�(GROUND�FLOOR):�9,100�sf

31�units�(22%)�are�designated�as�LowͲincome�Limit�Rent�units

Units Total�Area Avg.�Size1BD/1BA 105�units 67,543�sf 643�sf2BD/2BA 38�units 35,617�sf 937�sfTOTAL 143�units 103,160�sf 721�sf

GROSS�BUILDING�AREA:�219,000�SF

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�PROJECT�DESCRIPTION�

Community�Center�The�heart�of�this�mixedͲuse�project�is�the�community�center.��Approximately�17,000�net�square�feet�located�on�the�2nd�floor,�the�community�center�is�composed�of�a�gathering�space,�one�fullͲsize�basketball�court,�which�can�be�split�into�two�smaller�courts,�and�three�classrooms,�and�a�warming�kitchen.��The�center�will�be�used�for�sports�events,�training�and�learning�spaces,�gatherͲing�and�meeƟng�rooms.��The�basketball�court�is�also�converƟble�to�a�banquet�hall,�which�is�served�by�catering�facilitated�by�the�warming�kitchen.��The�court�can�hold�banquetͲstyle�600�seats.��The�ground�floor�entrance�lobby�is�also�planned�as�a�community�art�gallery,�which�is�expected�to�encourage�arƟst�and�cultural�acƟviƟes.��The�art�gallery�will�also�provide�space�for�the�historiͲcal�documentaƟon�of�the�community’s�evoluƟon�and�struggles.�

PROGRAM��Retail�Space�Ground�floor�retail�is�an�important�aspect�of�the�urban�planning�concept�to�extend�the�10th�Street�commercial�corridor�to�the�north�past�Vine�Street.��Glass�façade�retail�space�is�facing�on�both�10th�Street�and�Vine�Street.��ApͲproximately�11,000�leasable�square�feet�ground�floor�reͲtail�space�can�be�divided�into�several�retail�tenants�deͲpending�on�tenants’�requirements.��A�common�loading�and�service�area�are�located�on�the�Pearl�Street�side.��

13�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�PROJECT�DESCRIPTION�

Oĸce�Space�Accessible�by�a�dedicated�lobby�and�elevator,�the�oĸce�spaces�are�located�on�3rd�to�5th�floors.��ApproxiͲmately�2,000�leasable�square�feet�is�on�the�3rd�floor.��Approximately�7,000�leasable�square�feet�is�on�the�4th�and�5th�floor�each.��The�3rd�floor�space�has�direct�access�to�the�roof�garden.��PotenƟal�tenants�are�seen�as�professional�oĸces,�social�services,�and�day�or�other�school�faciliƟes.�

ResidenƟal�Space�Total�of�143�residenƟal�apartment�units�are�located�on�6th�to�23rd�floors.��The�units�will�have�a�mix�of�108�one�bedroom�and�36�two�bedroom�units�with�average�size�of�615�square�feet�and�1,100�square�feet�reͲspecƟvely.��All�units�will�be�accessed�from�an�indoor�corridor�with�direct�access�to�elevators�and�stair�towers.��Finishes�in�the�units�will�provide�painted�drywall�parƟƟons,�wood�doors�within�the�units,�and�metal�doors�to�the�corridor�hallway.��Trim�and�baseboards�will�be�provided�throughout.��Floors�will�be�wood�or�carpet.��Bathrooms�will�have�Ɵle�floors.��Kitchen�cabinets�and�toilet�room�vaniƟes�will�be�woodͲen�with�durable,�washable�surfaces.��Plumbing�and�electrical�will�meet�code�provisions.�

14�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�PROJECT�DESCRIPTION�

AMENITY��Art�Gallery�The�entry�lobby�space�to�the�second�floor�community�center�will�feature�a�community�art�gallery.��The�gallery�will�be�deͲsigned�with�suĸcient�flexibility,�such�as�movable�parƟƟons/displays,�which�enables�easy�transiƟon�of�temporary�exhibits.��The�gallery�will�promote�local�arƟsts�and�their�acƟviƟes.��The�lobby�will�also�funcƟon�as�a�gathering�and�resƟng�place�for�the�residents�and�the�community�center�users.�

Terrace�/�Deck�/�Green�Roof�On�the�third�floor,�the�outdoor�terrace/deck�is�envisioned�as�a�trellis�area�that�features�a�green�roof�and�poƩed�plants.��It�will�be�the�perfect�place�for�a�receiving�line,�a�preͲfuncƟon�greeƟng,�and�at�Ɵmes,�a�place�for�quiet�reflecƟon.��The�terrace�will�be�accessible�to�the�third�floor�tenant�space�to�all�who�come�to�and�enjoy�the�Community�Center.��On�top�of�the�23rd�floor,�there�will�be�an�accessible�roof�garden,�which�is�a�great�amenity�for�the�residents�to�enjoy�the�view�of�the�city.�

Views�The�geographic�locaƟon�and�verƟcality�of�this�building�create�tremendous�opportunity�for�stellar�views�of�PhilaͲdelphia.��Views�of�the�south�and�east,�onto�Center�City�and�historic�Chinatown,�will�be�maximized�with�the�placement�of�windows�and�the�terrace/deck.��The�north�and�west�sides�will�also�maintain�expansive�fenestraƟon�to�take�advantage�of�limited�daylight�exposure.��Overall,�a�highͲperformance�envelop�will�provide�excepƟonal�acͲcess�to�city�views�while�keeping�the�building�operaƟonalͲly�sustainable.�

15�

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AREA�OVERVIEW�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�AREA�OVERVIEW�

Located�in�the�middle�northeast�part�of�downtown�Philadelphia�(Center�City),�the�Chinatown�neighborͲhood�is�an�approximately�0.26�square�mile�area,�roughly�bounded�by�8th�Street�to�the�east,�13th�Street�to�the�west,�Filbert�Street�to�the�south,�and�Spring�Garden�Street�to�the�north.��The�core�area,�ChinaͲtown,�is�centered�along�10th�Street�between�Arch�Street�and�Vine�Street.��Chinatown�is�not�only�an�ethͲnic�hub�of�Philadelphia,�but�also�an�important�part�of�the�economic�fabric�of�Philadelphia.��It�is�a�popular�tourism�desƟnaƟon�and�a�thriving�neighborhood�of�Philadelphia.���

According�to�2010�Census,�total�populaƟon�in�the�area�covers�Chinatown�neighborhood�(Tract�2�and�376)�is�5,923,�which�about�4%�of�total�populaƟon�of�the�City�of�Philadelphia�(1,526,006).��Of�the�total�populaƟon,�42%�is�Asian,�31%�is�White,�and�23%�is�African�American.��This�does�not�include�the�underͲstanding�that�immigrant�(i.e.,�Asian)�populaƟons�are�historically�undercounted.��The�number�of�people�in�working�age�(18�years�old�to�64�years�old)�is�4,864,�which�is�82%�of�the�total�populaƟon.�

According�to�TRF’s�Policy�Map�(hƩp://www.policymap.com/,�data�retrieved�3/1/2011),�the�populaƟon�in�the�“Chinatown�Assembled�3”�region�grew�39.8%�between�2000�and�2009,�which�is�significant�growth�compared�to�0.89%�growth�of�the�City�of�Philadelphia�itself.��However,�in�2010,�85.46%�of�households�in�the�study�area�had�an�annual�income�of�less�than�$50,000,�which�is�significantly�high�rate�compared�to�49.76%�of�people�in�the�State�of�Pennsylvania.�

17�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�AREA�OVERVIEW�

With�regard�to�transportaƟon,�Chinatown�enjoys�convenient�access�to�highway�and�mass�transportaͲƟon.��Interstate�IͲ676�(the�Vine�Street�Expressway)�runs�along�the�north�border�of�the�core�Chinatown,�which�connects�to�Interstate�IͲ95�for�New�York�and�Washington,�D.C.,�and�connects�to�Interstate�IͲ76�for�Harrisburg�and�west.��The�Market�East�regional�rail�staƟon�is�located�at�11th�and�Filbert�Street,�which�easily�connects�to�AMTRAK�at�the�30th�Street�StaƟon�within�10�minutes�and�to�the�Philadelphia�InternaƟonal�Airport�(PHL)�within�30�minutes.��AddiƟonally,�the�Greyhound�bus�depot,�MarketͲFrankford��subway�staƟon,�and�several�major�bus�lines�run�very�close�to�site.�

18�

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LEASING�STRATEGY�&�AREA�MARKET�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�LEASING�STRATEGY�&�AREA�MARKET�

While�the�Eastern�Tower�is�located�in�an�area�that�is�defined�as�“distressed”�in�demographic�and�socioͲeconomic�terms,�it�however�meets�the�quintessenƟal�real�estate�industry�definiƟon�of�high�value�propͲerty�that�is�oŌen�termed�“locaƟon,�locaƟon,�locaƟon”.��The�adjacent�LoŌ�District�around�13th�Street,�a�currently�onͲgoing�highͲend�rental�apartment�redevelopment�(the�GoldTex�Building�at�12th�&�Wood�Streets)�two�blocks�from�the�site,�walking�distance�to�any�district�of�Center�City�Philadelphia,�its�disƟnͲguished�architectural�design,�the�high�quality�building�finishes�and�ameniƟes,�and�being�a�new�groundͲup�construcƟon�building�and�proͲject�delivery�date�place�the�Eastern�Tower�in�an�exclusive�class�of�propͲerƟes�in�Philadelphia.��Given�this�market�context,�the�target�rents�are�deemed�to�be�well�within�its�comͲpeƟƟve�set�and�be�compeƟƟve�in�its�absorpƟon�rate.���

GoldTex�Building�Project�

20�

The�Eastern�Tower�project�is�a�planned�mixedͲuse�development�that�informs�the�form�and�funcƟon�of�the�architectural�soluƟons�for�the�building�program.�The�strategic�placement�of�complementary�uses�and�the�corresponding�traĸc�generated�by�the�community�center,�the�retail�space,�the�oĸce�space,�and�the�144�residenƟal�units�will�create�a�robust�“micro”�market�with�supply�and�demand�equilibrium�within�the�building.��The�retail�tenants,�the�community�center�users�and�the�oĸce�workers�will�all�drive�significant�transient�traĸc�into�the�building�along�with�the�residenƟal�tenants.��The�strength�of�this�onͲsite�demandͲsupply�matrix�will�be�further�augmented�by�the�potenƟal�crossͲsell�opportuniƟes.��The�Eastern�Tower�will�develop�and�execute�a�leasing�plan�that�will�target�tenants�for�the�retail�and�the�oĸce�spaces�which�are�based�on�the�express�community�needs.���

THE�EASTERN�TOWER�

RETAIL/COMMERCIAL�SPACE�PRO�FORMA�RENTUse Size Rent/sf/Yr Annual�Gross�RentRetail�1F 9,100sf $38.00 345,800$���������������������Recuriation�Space�2F 16,940sf $16.00 271,040$���������������������Office�3F 4,500sf $25.00 112,500$���������������������Office�4F 5,600sf $26.00 145,600$���������������������Office�5F 6,200sf $26.00 161,200$���������������������

42,340sf $24.47 1,036,140$������������������

RESIDENTIAL�PRO�FORMA�RENTType Units Total�Area Avg.�Unit�Size Mo.�Rent Rent/sf/Mo Annual�Gross�RentLow�Income�Limit�(LIL)�Rent1�Bed/1�Bath 21 13,531sf 644sf 1,120$������ $1.74 282,240$���������������������2�Bed/2�Bath 10 9,227sf 923sf 1,340$������ $1.45 160,800$���������������������Total 31 22,758sf 734sf 1,191$������ $1.62 443,040$���������������������

22%Market�Rent1�Bed/1�Bath 84 54,012sf 643sf 1,768$������ $2.75 1,782,396$������������������2�Bed/2�Bath 28 26,390sf 943sf 2,309$������ $2.45 775,866$���������������������Total 112 80,402sf 718sf 1,903$������ $2.65 2,558,262$������������������

78%TOTAL�RESIDENTIAL 143 103,160sf 721sf 1,749$������ $2.42 3,001,302$������������������

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�LEASING�STRATEGY�&�AREA�MARKET�

Retail�Rent�The�Eastern�Tower�is�targeƟng�groundͲfloor�retail�space�average�rent�per�square�foot�per�year�at�$35.��According�to�Cushman�&�Wakefield’s�retail�snapshot�report,�the�prime�retail�rents�for�1st�quarter�of�2012�for�PhiladelphͲia�CBD�range�from�$20�to�$110.��Considering�its�locaƟon�and�Ɵming�of�compleƟon,�$35/sf�is�reasonable.���

Oĸce�Rent�Cushman�&�Wakefield�reports�oĸce�market�rent�of�the�Philadelphia�CBD.��According�to�the�report,�the�direct�asking�rental�rate�for�all�classes�for�1st�quarter�of�2012�is�$25.22�per�square�foot�per�year.��The�overall�vacancy�rate�is�11.3%.��Grubb�&�Ellis�is�also�reporƟng�asking�oĸce�rent�in�Oĸce�Trends�Report�for�1st�quarter�of�2012.��According�to�the�report,�Philadelphia�CBD’s�total�base�asking�rent�is�$29.02�per�square�foot�per�year�for�Class�A�and�$24.47�per�square�foot�per�year�for�Class�B.��The�Eastern�Tower�is�targeƟng�an�average�$26/sf�for�the�oĸce�spaces,�which�should�be�achievable.���

Cushman�&�Wakefield�Market�Beat�Retail�Snapshot�Q1�2012�

21�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�LEASING�STRATEGY�&�AREA�MARKET�

The�St.�James200�W.�Washington�Square,�Philadelphia,�PA�19106

Type Units Size Mo.�Rent $/sfStudio 30�units 640�sf 1,700$�������� $2.66/sf1�Bedroom 93�units 938�sf 2,450$�������� $2.61/sf2�Bedroom 151�units 1,500�sf 4,550$�������� $3.03/sf3�Bedroom 25�units 2,581�sf 5,850$�������� $2.27/sf

299�units 1,329�sf 3,720$�������� $2.80/sfSource:�REIS,�Inc.�4Q�2011

Domus3411�Chestnut�Street,�Philadelphia,�PA�19104

Type Units Size Mo.�Rent $/sf1�Bedroom 161�units 1,000�sf 2,357$������� $2.36/sf2�Bedroom 122�units 1,366�sf 3,047$������� $2.23/sf3�Bedroom 7�units 1,574�sf 4,150$������� $2.64/sf

290�units 1,168�sf 2,691$������� $2.30/sfSource:�REIS,�Inc.�4Q�2011

The�St.�James�The�St.�James�was�constructed�in�2004.��It�is�45Ͳstory�highͲrise�mixedͲuse�building�with�approximately�300�apartment�units,�ground�floor�retail,�and�a�structured�parking�garage.��The�St.�James�is�located�in�the�core�of�Center�City.��In�this�point,�the�situaƟon�is�diīerent�from�the�Eastern�Tower.��However,�it�can�be�referred�as�a�highͲrise�apartment�comparable.�

Domus�Built�in�2007�in�a�ground�lease�with�the�University�of�Pennsylvania,�Domus�is�8Ͳstory�midͲrise�mixedͲuse�building.��It�consists�of�290�apartment�units,�approximately�23,000�square�feet�retail�space�on�ground�floor,�and�a�large�parking�garage.��Although�Domus�is�located�next�to�University�of�Pennsylvania’s�camͲpus,�situaƟng�outside�of�the�core�of�Center�City�can�be�seen�as�a�similarity�to�the�Eastern�Tower.�

Apartment�Rent�Although�some�units�will�be�reserved�as�“aīordable�rent�units”,�the�other�units�have�to�be�midͲtoͲhigh�rent�apartment�units�to�support�the�cost�of�the�development.��The�Eastern�Tower�is�targeƟng�average�rent�of�$2.85�per�square�foot�per�month�for�the�market�rent�units.��1�bedroom�unit’s�rent�range�is�$1,700�to�$2,200�per�month,�and�2�bedroom�unit’s�rent�rage�is�$2,600�to�$3,000�per�month.��This�will�be�achievable�with�the�fact�of�the�exisƟng�highͲend�rental�apartment�project�within�two�blocks,�the�building�finishes�and�ameniƟes,�unhindered�view�of�the�city,�especially�the�Philadelphia�downtown�skyline�from�the�southͲfaced�units,�and�brand�new�building.��Based�on�the�condiƟons�of�the�Eastern�Tower,�the�following�apartment�buildings�are�selected�as�today’s�market�rent�comparables.��All�comparables�are�mixedͲuse�buildings�and�built�within�10�years�ago�as�a�groundͲup�project.�

22�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�LEASING�STRATEGY�&�AREA�MARKET�

Piazza�Apartments�at�the�Piazza�at�Schmidts�was�completed�in�2009�as�a�mulƟͲphase�development�in�the�Northern�Liberty�secƟon�of�PhilaͲdelphia.��Approximately�500�apartment�units�are�in�blockͲwide�7Ͳstory�complex.��The�locaƟon�and�situaƟon�are�diīerent�from�the�Eastern�Tower�project,�but�as�one�of�the�recent�successfully�comͲpleted�mixedͲuse�project,�it�can�be�seen�as�one�of�the�comparaͲbles.�

777�S.�Broad�Street�777�S.�Broad�Street�is�built�in�2010.��The�5Ͳstory�blockͲwide�building�has�146�apartment�units,�retail�space�on�ground�floor,�and�a�surface�lot�parking�space�behind�the�building.��This�is�located�just�outside�of�the�core�of�Center�City,�which�is�similar�to�the�Eastern�Tower�situaͲƟon.�

777�South�Broad777�S.�Broad�Street,�Philadelphia,�PA�19147

Type1�Bedroom 832�sf 2,200$���� to 2,400$���� $2.64/sf to $2.88/sf1�Bedroom 962�sf 2,200$���� to 2,450$���� $2.29/sf to $2.55/sf1�Bedroom 975�sf 2,350$���� to 2,500$���� $2.41/sf to $2.56/sf2�Bedroom 1,058�sf to 1,115�sf 2,550$���� to 3,220$���� $2.41/sf to $2.89/sf2�Bedroom 1,404�sf 3,200$���� to 5,000$���� $2.28/sf to $3.56/sf2�Bedroom 1,283�sf 3,100$���� to 3,700$���� $2.42/sf to $2.88/sf2�Bedroom 1,190�sf 2,700$���� to 3,120$���� $2.27/sf to $2.62/sfSource:�apartment.com�listing�as�of�6/8/2012

Mo.�Rent $/sfSize

The�Piazza1001�N.�2nd�Street,�Philadelphia,�PA�19123

Type1�Bedroom 622�sf to 712�sf 1,400$���� to 1,500$���� $2.25/sf to $2.11/sf1�Bedroom 694�sf to 715�sf 1,300$���� to 1,350$���� $1.87/sf to $1.89/sf2�Bedroom 1,002�sf to 1,115�sf 1,850$���� to 2,200$���� $1.85/sf to $1.97/sfSource:�apartment.com�listing�as�of�6/8/2012

Size Mo.�Rent $/sf

23�

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St.�James�

Domus�

The�Piazza�

777�South�Broad�

THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�LEASING�STRATEGY�&�AREA�MARKET�

Community�Center�space�rental�The�community�center�will�be�managed�by�a�company�toͲbeͲformed�by�the�sponsor.��The�rent�for�the�company�is�currently�set�for�$16�per�square�foot,�which�is�concluded�as�aīordable�for�the�community�based�on�the�iniƟal�business�planning�and�studies.��Preliminary�research�and�interviews�with�potenƟal�users�indicate�the�sports�event�space�rental�rate�is�about�$85�per�hour.��In�Philadelphia�Chinatown,�the�banquet�rate�at�the�exisƟng�restaurants�ranges�$250�to�$1,000�per�table.��They�usually�have�more�than�2�events�per�week�in�one�restaurant.��The�sponsor�is�currently�in�process�of�creaƟng�the�business�plan.���

24�

The�Eastern�Tower�

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FINANCIAL�STRUCTURE�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

Real�estate�developments�in�the�city�of�Philadelphia�have�been�suīering�for�a�long�Ɵme�from�the�cost�and�income�upside�down�issue.��The�recent�economic�downturn�worsened�the�situaƟon,�and�the�most�of�the�planned�developments�leŌ�vacant�lands�and�abandoned�buildings.��Many�of�the�economic�developͲment�projects�could�not�be�feasible�without�significant�public�subsidies�or�highly�speculaƟve�investͲments.��In�fact,�the�Eastern�Tower�project�could�not�be�implemented�unƟl�now.��As�a�soluƟon,�the�sponͲsor�teamed�up�with�a�local�experienced�development�team�which�developed�the�financing�structure�as�follows:��New�Markets�Tax�Credit�(NMTC)�Program�The�NMTC�program,�managed�by�the�Community�Development�Financial�InsƟtuƟons�(CDFI)�Fund�in�the�United�States�Department�of�the�Treasury,�was�enacted�on�December�21,�2000�as�part�of�the�CommuniͲty�Renewal�Tax�Relief�Act�of�2000.��The�purpose�of�this�program�is�to�increase�credit�and�investment�capͲital�for�developing�small�business,�retaining�jobs,�and�revitalizing�neighborhoods�in�communiƟes�that�are�economically�distressed�or�consist�of�lowͲincome�populaƟons.��The�NMTC�provides�investors�(individuals,�financial�insƟtuƟons,�corporaƟons,�etc.)�with�a�tax�credit�for�invesƟng�in�such�communiƟes.��The�Eastern�Tower�is�located�in�a�distressed�area�as�defined�by�the�NMTC�program.��The�project�will�creͲate�jobs�and�is�expected�to�create�synergies�for�conƟnued�area�revitalizaƟon.��The�NMTC�financing�proͲgram�matches�the�goals�of�the�project�well.��The�benefits�of�the�NMTC�program,�which�brings�addiƟonal�equity�through�the�tax�credit�and�lower�inͲterest�rate�of�the�debt�financing�to�the�project,�are�necessary�for�the�project�implementaƟon.��Immigrant�Investor�Program�(EBͲ5�Program)�The�Immigrant�Investor�Program,�also�known�as�“EBͲ5�Program,”�was�created�by�Congress�in�1990�to�sƟmulate�the�U.S.�economy�through�job�creaƟon�and�capital�investment�by�immigrant�investors�by�creͲaƟng�a�new�commercial�enterprise�or�invesƟng�in�a�job�creaƟng�business.�The�EBͲ5�Program�is�adminisͲtered�by�the�U.S.�CiƟzenship�and�ImmigraƟon�Services�(USCIS).��In�return�for�the�investment,��foreign�investors�may�receive�permanent�residence�visa�status,�so�called�“Green�Cards”.��There�are�annually�10,000�EBͲ5�immigrant�visas�available,�and�in�1992�and�regularly�reauthorized�since�then,�3,000�EBͲ5�visas�have�been�set�aside�for�investors�in�Regional�Centers�designated�by�USCIS�based�on�proposals�for�promoƟng�economic�growth.��The�general�minimum�qualifying�investment�amount�is�$1�million,�and�the�qualifying�investment�amount�to�the�Targeted�Employment�Area,�which�is�a�high�unemployment�or�rural�area,�is�$500,000.��As�the�condiƟon�of�receiving�Green�Card,�each�investment�must�create�or�preserve�at�least�10�fullͲƟme�jobs�for�qualifying�U.S.�workers�within�two�years.��The�EBͲ5�Program�can�raise�the�equity�of�the�Eastern�Tower�project.��In�fact,�in�Philadelphia,�the�PennsylͲvania�ConvenƟon�Center�Expansion�project�used�the�EBͲ5�Program�to�raise�$122�million�investment,�and�the�Comcast�Center�raised�$26�million.��Given�the�background�of�PCDC�and�the�network�of�local�Chinese�immigrants�in�the�Philadelphia�region�and�beyond,�the�sponsor�has�resources�to�find�foreign�investors,�especially�in�China.��The�sponsor�is�currently�in�process�to�raise�equity�through�the�EBͲ5�Program.�

26�

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�Governmental�Grants�The�Eastern�Tower�project�is�a�community�and�economic�development�project.��This�is�not�a�private�enͲterprise�investment�but�a�local�community�development�organizaƟonͲdriven�quasiͲpublic�project.��The�Mayor�of�Philadelphia,�local�Council�People,�State�RepresentaƟves,�and�the�local�community�are�all�supͲporƟng�this�project.��Although�the�NMTC�program�and�the�EBͲ5�Program�are�potent�financing�soluƟons,�to�have�commercial�creditors�feel�safe�to�invest,�the�Eastern�Tower�needs�direct�financial�support�from�the�public�sector.��The�sponsor�is�acƟvely�raising�funds�and�seeking�grants.��In�fact,�an�original�grant�reͲquest�to�the�State�was�registered�in�previous�State�bills.��Currently,�the�sponsor�is�working�on�raising�the�amount�and�reͲregistering�the�bill.��

THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

27�

NMTC�Eligibility�

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THE�EASTERN�TOWER�PROJECT�

LENDER�(Sub�CDE)�

TAX�CREDIT�INVESTMENT�FUND�

Governments/FoundaƟons�

EBͲ5�INVESTMENT�FUND�

LEVERAGE�LENDER� TAX�CREDIT�INVESTORS�

EQUITY�INVESTORS�

EBͲ5�INVESTORS�

Grants�

Loan�

Equity� Equity�

Equity�

Loans�

Equity�

Equity�Loan�

THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

Financing�Structure�Chart�

28�

Development�Budget�&�Funding�Sources�INVESTMENT�BUDGET

TotalAcquisition 800,000$�������������������������������� $3.65PSF

Hard�Cost 56,663,000$��������������������������� $258.74PSF

Soft�Cost 5,577,000$����������������������������� $25.47PSF

Reserves 2,770,000$����������������������������� $12.65PSF

Developer�Fee 3,500,000$����������������������������� $15.98PSF

Contingency 3,009,000$����������������������������� $13.74PSF

NMTC�Costs 3,135,000$����������������������������� $14.32PSF

Total�Development�Budget 75,454,000$��������������������������� $344.54PSF

Financial�Consultant�Fee 571,725$��������������������������������SetͲup�Legal�Fee 65,718$�����������������������������������Asset�Management�Fee�Reserve 231,000$��������������������������������Total�Investment�Budget 76,322,443$���������������������������

FUNDING�SOURCESTotal

QLICI�Sr.�Loan�(s)�(Lender�Leverage) 13,131,980$��������������������������� 17%QLICI�Sub�Loan(s)�(TC�Equity) 9,868,020$����������������������������� 13%EBͲ5�Sub�Loan 33,000,000$��������������������������� 43%Grants/Donation 7,022,443$����������������������������� 9%Sponsor�Deferred�Equity�(Developer�Fee) 1,750,000$����������������������������� 2%Cash�Equity 11,550,000$��������������������������� 15%Total�Funding�Sources 76,322,443$��������������������������� 100%

CASH�EQUITY�SOURCESTotal

Investor�Equity 11,434,500$��������������������������� 99%Sponsor�Equity 115,500$�������������������������������� 1%Total�Equity 11,550,000$��������������������������� 100%

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

New�Markets�Tax�Credit�Leverage�Loan�LeƩer�of�Interest�

29�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

30�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

EBͲ5�Loan�Term�Sheet�

31�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

32�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

New�Markets�Tax�Credit�AllocaƟon�LeƩer�of�Interest�

33�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

34�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�FINANCIAL�STRUCTURE�

35�

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SPONSOR�&�TEAM�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�SPONSOR�&�TEAM�

37�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�SPONSOR�&�TEAM�

Sponsor����

Philadelphia�Chinatown�Development�CorporaƟon�(PCDC)�was�formed�in�1966,�when�various�Urban�Renewal�ProͲjects�threatened�to�destabilize�and�poͲtenƟally�destroy�the�community,�espeͲcially�the�Vine�Street�Expressway�proͲject,�which�was�to�demolish�the�Holy�Redeemer�Church,�an�important�anchor�for�the�Philadelphia�area�ChineseͲAmerican�community.��PCDC�is�a�grassroots,�nonͲprofit,�communityͲbased�organizaƟon,�whose�mission�is�to�preserve,�protect,�and�promote�Chinatown�as�a�viable�ethnic,�resͲidenƟal�and�business�community.��Since�its�incepƟon,�PCDC�has�developed�more�than�226�units�of�mixedͲincome�housing�and�27,000�square�feet�of�retail�space.�

38�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�SPONSOR�&�TEAM�

Received�Award��2011�Ͳ�Making�A�Diīerence�Award�for�Outstanding�Community�ContribuƟons�Health�Partners��2009�Ͳ�CiƟzen�Diplomacy�Award�for�Outstanding�Civic�Partner�IVC�of�Philadelphia���2009�Ͳ�2009�Grand�Jury�Award�for�Chinatown�Friendship�Gate�PreservaƟon�Alliance�for�Greater�Philadelphia��2006�Ͳ�OCA�Pioneer�Award�OCA�NaƟonal��2004�Ͳ�Pennsylvania�Planning�AssociaƟon�award�for�Chinatown�Neighborhood�Plan�of�2004�Pennsylvania�Planning�AssociaƟon��1999�Ͳ�Maxwell�Awards�of�Excellence�for�Hing�Wah�Yuen�Development��Fannie�Mae�FoundaƟon��1988�Ͳ�Special�Award�for�Excellence�in�Community�Development�ARCO,�Pew�Charitable�Trusts,�and�the�Philadelphia�FoundaƟon��1984�Ͳ�Green�Thumb�of�the�Decade�Award�Philadelphia�Green�Program�of�the�Pennsylvania�HorƟculture�Society��1984�Ͳ�Civic�Award�FoundaƟon�for�Architecture��1982�Ͳ�Human�Rights�Award�William�Penn�FoundaƟon��1980�Ͳ�Community�Award�Philadelphia�Chapter�of�the�American�InsƟtute�of�Architects�

39�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�SPONSOR�&�TEAM�

Key�Person��Andrew�P.�Toy�Managing�Director�of�the�Eastern�Tower/Chinatown�Community�Center�project��Mr.�Toy,�a�former�board�member�of�Philadelphia�Chinatown�Development�CorporaƟon,�is�a�leader�of�business�and�economic�planning�and�development�in�Philadelphia.����Prior�to�joining�the�Project�as�Managing�Director,�Mr.�Toy�was�the�Senior�Director�of�Business�DevelopͲment�at�The�Enterprise�Center�(TEC).��At�TEC,�he�assisted�local�minority�and�other�retailers�grow�by�imͲproving�their�business�pracƟces�and�finding�financial�and�other�resources.��He�is�recognized�as�a�thoughtͲleader�and�innovator�when�it�comes�to�neighborhood�commercial�revitalizaƟon.��Mr.�Toy�is�known�for�his�ability�to�get�things�done�and�for�building�relaƟonships�to�engage�businesses�and�residents�in�working�together�for�progress.��Mr.�Toy’s�more�than�25�years�experience�includes�leadͲership�at�the�City�of�Philadelphia�Commerce�Department�and�the�Local�IniƟaƟve�Support�CorporaƟon�(LISC).��Mr.�Toy�is�also�an�acƟve�community�member�in�Philadelphia.��He�was�a�candidate�for�an�atͲLarge�seat�in�the�DemocraƟc�primary�for�Philadelphia's�City�Council�in�2011.��Mr.�Toy�is�currently�on�the�Boards�of�the�United�Way�of�Southeastern�PA,�The�Merchants�Fund,�the�DelͲaware�Valley�Grantmakers,�the�Logan�Square�Neighborhood�AssociaƟon�and�the�Mayor’s�Commission�on�Asian�American�Aīairs.��He�was�an�appointee�on�the�Philadelphia�Zoning�Code�Commission.��In�2006,�he�was�selected�as�one�of�the�top�101�Connectors�in�Philadelphia.��Mr.�Toy�holds�a�B.A.�in�Economics�and�a�Master’s�Degree�in�Public�and�Urban�Policy�from�the�University�of�Pennsylvania.���John�W.�Chin�ExecuƟve�Director�Philadelphia�Chinatown�Development�CorporaƟon��Mr.�Chin�is�the�ExecuƟve�Director�of�the�Philadelphia�Chinatown�Development�CorporaƟon�(PCDC),�a�nonͲprofit�organizaƟon,�whose�mission�is�to�preserve,�protect,�and�promote�Chinatown�as�a�viable,�ethͲnic,�residenƟal�and�business�community.�He�oversees�all�programming�in�the�areas�of�neighborhood�planning�and�advocacy,�aīordable�housing�and�related�services,�economic�development�(including�Main�Street),�neighborhood�beauƟficaƟon�and�real�estate�development,�and�Chinatown�family�support�services.���Prior�to�joining�the�Philadelphia�Chinatown�Development�CorporaƟon,�Mr.�Chin�was�Assistant�Vice�President�and�Director�of�InternaƟonal�EquiƟes�Trading�for�Roll�and�Ross�Asset�Management.�

40�

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��Mr.�Chin�serves�on�the�board�of�numerous�organizaƟons�including�Philadelphia�MulƟcultural�Aīairs�ConͲgress,�Philadelphia�ConvenƟon�and�Visitors�Bureau,�Philadelphia�Workforce�Investment�Board,�and�Friend�Select�School.��He�serves�on�the�steering�commiƩee�of�the�Asian�American�Pacific�Islanders�in�PhiͲlanthropy,�and�is�President�of�the�Philadelphia�AssociaƟon�of�Community�Development�CorporaƟons.��Mr.�Chin�also�serves�on�the�Mayor’s�Commission�on�Asian�American�Aīairs�and�the�Mayor’s�Advisory�Commission�on�ConstrucƟon�Industry�Diversity.�In�2010�he�served�on�the�Philadelphia�School�District’s�Diversity�Taskforce�and�was�a�naƟonal�delegate�for�the�NaƟonal�CoaliƟon�of�Asian�Pacific�American�ComͲmunity�Development�CorporaƟons’�roundtable�meeƟng�with�HUD�and�DOT.��Mr.�Chin�is�a�naƟve�of�Chinatown,�and�is�a�graduate�of�Drexel�University,�where�he�received�a�degree�in�Business�AdministraƟon�and�Management�InformaƟon�Systems.���Friar�Thomas�Betz,�Esq.�Chair�Philadelphia�Chinatown�Development�CorporaƟon�OFM�Cap.,�Coordinator�for�Chinese�Apostolate�Holy�Redeemer�Chinese�Catholic�Church���Father�Tom�resides�at�St.�John’s�and�is�Coordinator�of�the�Chinese�Apostolate�for�the�Archdiocese�of�PhilͲadelphia,�which�includes�responsibility�for�Holy�Redeemer�Chinese�Catholic�Church�and�School.��He�overͲsees�the�day�to�day�operaƟons�of�the�parish�and�school.��Under�his�leadership,�the�school�has�increased�the�number�of�students�and�built�a�new�classroom�and�community�center�and�renovated�the�former�convent�into�medical�clinic�to�serve�uninsured�Asian�immigrants.��Fr.�Tom�is�also�the�VocaƟon�Director�for�the�Capuchin�Province�of�St.�AugusƟne�since�2003.�He�is�also�a�Definitor�of�the�St.�AugusƟne�Province.��Prior�to�the�priesthood,�he�pracƟced�law�in�PiƩsburg.��Fr.�Tom�has�served�for�17�years�of�the�Board�of�the�Philadelphia�Chinatown�Development�CorporaƟon�and�was�acƟvely�engaged�in�the�housing�projects�for�Chinatown.��He�received�the�DisƟnguished�Service�Award�from�the�Philadelphia�Bar�AssociaƟon’s�Volunteer�Program�for�the�Indigent�in�1991,�the�DisƟnguished�Service�Award�for�Ethnic�Ministry�from�the�United�States�ConͲference�of�Catholic�Bishops�in�2001,�the�BenemerenƟ�Medal�in�2003,�and�the�St.�Thomas�More�Award�from�the�Philadelphia�Bar�AssociaƟon�in�2009.��Fr.�Tom,�a�naƟve�of�Western�Pennsylvania,�graduated�Summa�Cum�Laude�with�a�degree�in�Psychology�from�St.�Fidelis�College�in�1979.��He�graduated�Magna�Cum�Laude�from�the�University�of�PiƩsburgh�with�a�Juris�Doctor�degree�in�1983.��He�received�a�Masters�Degree�in�Theology�from�the�Catholic�University�of�America�in�1990�and�was�ordained�a�priest�in�1991.�

THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�SPONSOR�&�TEAM�

41�

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THE�EASTERN�TOWER�DEVELOPMENT�PROJECT�/�SPONSOR�&�TEAM�

����

Selected�Fee�Developer�&�Project�Financing�Consultant��JNA�CAPITAL,�Inc.�is�a�moreͲthanͲ18ͲyearͲexperienced�bouƟque�real�estate�finance�and�development�company.��JNA�sources�debt�and�equity�for�commercial�and�mixedͲuse�real�estate�projects.��Having�background�in�urban�planning,�JNA�brings�added�dimensions�to�its�financing�and�development�conͲsulƟng�services.��JNA�accesses�a�variety�of�capital�markets�to�secure�debt�and�equity�for�acquisiƟon,�development,�and�refinance�of�any�range�of�properƟes.��JNA�is�acƟve�in�the�greater�Philadelphia�real�estate�market,�having�intelligence�on�the�market,�available�financing�products,�key�players,�and�regulaͲtory/public�sector�tools�for�real�estate.��Beyond�financing,�JNA’s�knowledge�on�planning,�design,�leasͲing,�development�process,�and�operaƟon�is�a�significant�valueͲadded�service.��With�a�vision�of�creaƟng�vibrant�urban�environments,�JNA�also�develops�urban�mixedͲuse�real�estate�projects.��Its�successful�projects�include�the�Shops�at�Liacouras�Walk�at�Temple�University�and�the�Hub�on�Chestnut�at�University�of�Pennsylvania�developed�through�its�aĸliate�Teres�Holdings,�LLC.��JNA�was�selected�among�other�developers�as�the�fee�developer�for�the�Chinatown�Community�Center�Project�in�2010.�

42�

The�Shops�at�Liacouras�Walk�In�the�center�of�Temple’s�Campus,�lay�two�derelict,�uninhabitable�rows�of�townhouses,�a�blight�on�the�campus�of�this�great�universiͲty.��In�2000,�Teres�saw�the�potenƟal�of�the�future�prosperity�in�this�campus�and�entered�into�a�long�term�ground�lease�with�Temple�University.�The�vision�was�to�create�a�“campus�main�street”�where�people�can�gather,�shop,�and�stay.�These�circa�1900�brick�row�houses�turned�into�life�amenity�retail�stores,�campus�oĸces,�and�a�22Ͳroom�bouƟque�hotel.�Combined�with�the�newly�renovated�peͲ

destrian�mall�in�the�front,�the�Shops�at�Liacouras�Walk�immediately�became�the�main�street�in�the�campus.��

The�Hub�on�Chestnut�Dilapidated,�underuƟlized�retail�space�occupied�the�corner�of�40th�and�Chestnut�Street�at�the�edge�of�the�University�of�Pennsylvania�campus.�This�was�a�secƟon�of�the�campus�untouched�by�the�redeͲvelopment�eīorts�put�forth�by�the�University�and�other�developers.��Teres’�principals�saw�a�potenƟal�of�this�locaƟon�and�entered�into�a�long�term�ground�lease�with�the�University�of�Pennsylvania.�The�principals�believed�that�the�project�would�be�a�criƟcal�bridge�beͲtween�the�surrounding�neighborhood�and�the�University,�thereby�increasing�the�overall�value�of�the�area.�This�new�groundͲup�project�

was�placed�in�service�in�2006.�Within�its�postͲmodern�architectural�design,�the�project�was�proͲgrammed�with�101apartment�units�and�26,000�sf�of�threeͲlevel�retail�space.�Because�of�its�iconic�deͲsign,�the�building�created�a�strong�idenƟty�at�the�corner�and�enhanced�its�physical�appearance.�

Page 50: PROJECT OPPORTUNITY INVESTMENTmembers.ozemail.com.au/~prestigefc/Philly Project...The Eastern Tower Project Chinatown, Philadelphia, Pennsylvania sponsor: contact JNA CAPITAL, Inc.
Page 51: PROJECT OPPORTUNITY INVESTMENTmembers.ozemail.com.au/~prestigefc/Philly Project...The Eastern Tower Project Chinatown, Philadelphia, Pennsylvania sponsor: contact JNA CAPITAL, Inc.
Page 52: PROJECT OPPORTUNITY INVESTMENTmembers.ozemail.com.au/~prestigefc/Philly Project...The Eastern Tower Project Chinatown, Philadelphia, Pennsylvania sponsor: contact JNA CAPITAL, Inc.

February�7,�2014�


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