Place 10 by Tandem Marketing

Place 10

FEBRUARY 25, 2020

Concept plans, information contained subject to change

TOWERS IN CONTEXT - 524 & 538 10th AVE SW CALGARY, AB

W AY

SUMMARY

DOWNTOWN RESIDENTIAL & RETAIL • 766,176 sq ft Gross floor area • Approx. 1.77 acres of land

• 490 underground parking stalls & adjacent parking agreement pending

• 2 separate titles

• 68% one bedrooms

• 862 Residential units

• 32% two bedrooms

• 50,000 sq ft of retail for residents and public

• 22,000 sq ft of exclusive interior & exterior residential amenity space

A 766,176 square foot two tower mixed use development comprised of retail,

community garden, recreation, fitness space, dining and shared BBQ areas.

commercial and residential uses. The first and second floor podium will have

7,000 sq ft of interior amenity will provide additional community gathering space,

active new generation retail with an emphasis on synergistic, experience-focused

kitchen, lounge, games room, and entertainment uses for residents. Resident

services and entertainment, blended with new style commercial office space (We

lobbies will include parcel storage and concierge for resident convenience and

Work format). These uses would be integrated with multi-family rental in the 31 &

accessibility.

35 storey towers above. The allocations of the various uses in the development are envisioned as follows: commercial and retail of approximately 50,000 sq ft and

Underground parking for retailers, visitors and residents will be available, as well

residential area of 652,000+/- sq ft (862 units.)

as additional exclusive storage lockers, bike storage, maintenance and pet wash.

The development will feature a significant exclusive amenity of which 15,000 sq ft will be outdoor space including dog friendly areas, seating, fire pits,

SUMMARY

RETAIL

• 20,000 sq ft main floor retail • 30,000 sq ft second floor retail • 50,000 sq ft total retail • 30 underground retail and visitors parking stalls

RETAIL

RETAIL - Main Floor

STAIR

UP INTAKE SHAFT

STAIR

PODIUM MECHANICAL MECHANICAL ROOM

PARKADE RAMP GENERATOR ROOM W&R PICKUP DOCK OFFICE

MECHANICAL

BICYCLE STORAGE

RETAIL CORRIDOR

ELECTRICAL

CRU E101A (1280 Â²)

STAIR W&R PICKUP

ENTERTAINMENT

WASTE & RECYCLING

RES. WASTE & STORAGE

DOCK

LOADING 1

5680 FT2

RES. WASTE & RECYCLING

OFFICE

FOOD AND DRUG

MOVE IN

LOADING DOCK LOADING 1

LOADING 2

CORRIDOR

LOADING DOCK

LOADING 3

STAGING RETAIL ELEVATOR

RES ELEV. SHAFT UP

STAIR

PARCEL

CORRIDOR

BICYCLE STORAGE

STAIR

PARKADE SHUTTES

LOADING 2

MAIL ROOM STAIR

RESIDENTIAL LOBBY

RESIDENTIAL ELEVATOR SHAFT UP

RESIDENTIAL LOBBY

CACF RETAIL LOBBY

SERVICE DISTRIBUTION

UP PARCEL ROOM

CACF

JANITOR

STAIR

FUEL STORAGE

MOVE IN

RETAIL LOBBY

MOVE IN

BICYCLE STORAGE

7105 FT2

STAIR

INTAKE SHAFT

VESTIBULE

RES ELEV. LOBBY

COFFEE

BIKE SHOP

LOBBY

VESTIBULE

2405 FT

PRINCIPAL ENTRANCE

1140 FT2

RETAIL

RETAIL - Second Floor

ROOF BELOW

INTAKE SHAFT MECHANICAL

CO-WORKING OFFICE

SPA

5765 FT2

4380 FT2

3795 FT2

CIRCULATION

MEDICAL

FITNESS 6165 FT2

RESIDENTIAL ELEVATOR LOBBY

ENTERTAINMENT 5985 FT2

RESIDENTIAL ELEVATOR SHAFT MECH SHAFT

PARKADE SHUTTLE STORAGE

ELEVATOR CONTROL ROOM

CIRCULATION

UP RESIDENTIAL ELEVATOR SHAFT

ROOF BELOW STAIR

PARKADE SHUTTLES

CIRCULATION

JANITOR

CIRCULATION

MECH SHAFT STAIR

VESTIBULE

RESIDENTIAL ELEVATOR LOBBY

ELECTRICAL

STAIR

CRU W206 2350 FT2

OPEN TO BELOW

CRU W202

CRU E202

2275 FT2

CIRCULATION

2050 ²

CRU W201 1640 FT2

LEASING OFFICE CANOPY BELOW

1795 ²

CANOPY BELOW

AMENITY SPACE

THIRD FLOOR INTERIOR AND EXTERIOR AMENITY

EXTERIOR AMENITY POTENTIAL ROOF AMENITY

(15375 ²)

EAST INTERIOR AMENITY

WEST INTERIOR AMENITY

RESIDENTIAL SUITE (545 ²)

RESIDENTIAL SUITE (540 ²)

RESIDENTIAL SUITE (765 ²)

CORRIDOR (685 ²) RESIDENTIAL AMENITY (3475 ²)

RESIDENTIAL SUITE (590 ²)

UPSTAIR RES. ELEV. SHAFT (365 ²)

(365 ²)

RESIDENTIAL SUITE (595 ²)

SERVICE (220 ²)

RESIDENTIAL SUITE (870 ²)

RESIDENTIAL SUITE (475 ²)

RESIDENTIAL SUITE (565 ²)

RESIDENTIAL SUITE (785 ²)

EXTERIOR AMENITY

RESIDENTIAL

TYPICAL RESIDENTIAL FLOOR

WEST

RESIDENTIAL SUITE (790 ²)

RESIDENTIAL SUITE (565 ²)

EAST

RESIDENTIAL SUITE (795 ²)

RESIDENTIAL SUITE (790 ²)

RESIDENTIAL SUITE (565 ²)

STAIR (320 ²) RES ELEV. SHAFT (320 ²)

RESIDENTIAL SUITE (570 ²)

RESIDENTIAL SUITE (885 ²)

RESIDENTIAL SUITE (565 ²)

RESIDENTIAL SUITE (475 ²)

RESIDENTIAL SUITE (565 ²)

RESIDENTIAL SUITE (790 ²)

CORRIDOR (685 ²)

CORRIDOR (670 ²) RESIDENTIAL SUITE (678 ²)

RESIDENTIAL SUITE (565 ²)

RESIDENTIAL SUITE (790 ²)

RESIDENTIAL SUITE (590 ²)

RES. ELEV. SHAFT (370 ²)

RESIDENTIAL SUITE (590 ²)

STAIR (365 ²)

UP DN RESIDENTIAL SUITE (590 ²)

SERVICE (220 ²)

DN UP

RESIDENTIAL SUITE

(880 ²)

(475 ²)

(565 ²)

(790 ²)

RESIDENTIAL UNIT SUMMARY

One Bedroom SQ.FT

EAST

WEST

TOTAL

Jr. One Bedroom

475 sq ft

One Bedroom

565 sq ft

145

165

310

36%

One Bedroom

565 sq ft

One Bedroom

690 sq ft

114

178

21%

SQ.FT

EAST

WEST

TOTAL

68%

Two Bedroom 05

Two Bedroom/1bth

690 sq ft

Two Bedroom/2bth

790 sq ft

184

21%

Two Bedroom/2bth

880 sq ft

403

459

862

100%

235

225

460

TOTAL UNITS TOTAL RESIDENTIAL PARKING STALLS

32%

RESIDENTIAL - UNIT TYPES

UNIT 01 - Jr. One Bedroom • 475 sq ft • East – 1 unit per floor (29 floors) • West – 1 unit per floor (33 floors) • 62 units total

RESIDENTIAL - UNIT TYPES

UNIT 02 - One Bedroom • 565 sq ft • East – 5 units per floor (29 floors) • West – 5 units per floor (33 floors) • 310 units total

RESIDENTIAL - UNIT TYPES

UNIT 03 - One Bedroom • 565 sq ft • East – n/a • West – 1 unit per floor (33 floors) • 33 units total

RESIDENTIAL - UNIT TYPES

UNIT 04 - One Bedroom • 690 sq ft • East – 4 units per floor • West – 1 unit per floor (33 floors) • 178 units total

RESIDENTIAL - UNIT TYPES

UNIT 05 - Two Bedroom • 690 sq ft • East – n/a • West – 1 unit per floor (33 floors) • 33 units total

RESIDENTIAL - UNIT TYPES

UNIT 06 - Two Bedroom • 790 sq ft • East – 3 units per floor (29 floors) • West – 3 units per floor (33 floors) • 184 units total

RESIDENTIAL - UNIT TYPES

UNIT 07 - Two Bedroom • 880 sq ft • East – 1 unit per floor (29 floors) • West – 1 unit per floor (33 floors) • 62 units total

EXTERIOR AMENITY

AMENITY SPACE

INTERIOR AMENITY

SCHEDULE

DEVELOPMENT AND CONSTRUCTION SCHEDULE

EAST

WEST

Q1 2020 Construction Start

Q4 2020 Superstructure Complete

Q3 2021 Superstructure Complete

Q3 2021 Ready for Occupancy

Q1 2023 Ready for Occupancy

East Tower

SECTION 8 - VALUE SUMMARY

Income Capitalization Approach Summary of Stabilized Net Operating Income Item Description

West Tower Income Capitalization Approach Summary of Stabilized Net Operating Income Item Description

% of Income

$ / Unit

$ / SF

% of Income

$ / Unit

$ / SF

Total $

Multifamily Revenue Rental Income

403 Units $22,725

$9,158,100

Potential Rental Income Gross Parking Income TotalStorage $ Lockers

$22,725 $1,359 $165

$9,158,100 $547,800 $66,600

$24,249 ($727) ($121) $23,401

$9,772,500 ($293,175) ($48,863) $9,430,463

Multifamily Revenue Rental Income

459 Units $23,270

Potential Rental Income Gross Parking Income Storage Lockers

$23,270 $1,159 $182

Potential Gross Multifamily Income Vacancy $10,680,900 Structural Allowance $10,680,900 Effective Rental Income $532,200 Effective Gross Multifamily Income $83,400

Potential Gross Multifamily Income Vacancy Structural Allowance

$24,611 ($738) ($123)

$11,296,500 Commercial Revenue ($338,895) Potential Base Rent ($56,483) Expense Recoveries

$78,790 $49,720

$31.69 $20.00

$709,112 $447,480

Effective Rental Income

$23,750

Effective Gross Multifamily Income

$23,750

$10,901,123 Total Tenant Revenue $10,901,123 Parking Income

$128,510 $9,000

$51.69 $3.62

$1,156,592 $81,000

$137,510 ($6,876) ($688)

$55.31 ($2.77) ($0.28)

$1,237,592 ($61,880) ($6,188)

$129,947

$52.27

$1,169,524

-3.0% -0.50%

$23,401 9 Units

Potential Gross Commercial Income Commercial Revenue

5 Units

28,670 SF

Vacancy Allowance $863,070 Structural Allowance $573,400 Effective Gross Commercial Income

Potential Base Rent Expense Recoveries

$172,614 $114,680

$30.10 $20.00

Total Tenant Revenue Parking Income

$287,294 $16,200

$50.10 $2.83

$1,436,470 $81,000 Effective Gross Income

$303,494 ($15,175) ($1,517)

$52.93 ($2.65) ($0.26)

$1,517,470 ($75,874) Multifamily Operating Expenses ($7,587) Real Estate Taxes

$286,802

$50.02

$1,434,009 Insurance

Potential Gross Commercial Income Vacancy Allowance Structural Allowance

-5.00% -0.50%

Effective Gross Commercial Income Effective Gross Income Multifamily Operating Expenses Real Estate Taxes

459 Units $2,385

$3.66

$220 $1,200

$0.34 $1.84

Insurance Utilities Repairs and Maintenance

$800

$1.23

Advertising and Marketing Management

3.00%

$50 $806

$0.08 $1.24

On-Site Management

1.67%

$450

$0.69

$75 $1,249 $7,235 $19,638.47

$0.11 $20.00

Other Expenses Retail CAM & Property Taxes Total Operating Expenses Net Operating Income

26.92%

Utilities $12,335,132 Repairs and Maintenance Advertising and Marketing Management $1,094,715 On-Site Management $100,980 Other Expenses $550,800 Retail CAM & Property Taxes $367,200 Total Operating Expenses Net Operating Income $22,950

-5.00% -0.50%

$9,430,463 22,374 SF

$10,599,987 403 Units $2,569

3.00% 1.71%

27.61%

$220 $1,200 $800 $50 $789 $450 $75 $1,110 $7,263 $19,039

$4.04

$1,035,307

$0.35 $1.89 $1.26 $0.08 $1.24 $0.71 $0.12 $20.00

$88,660 $483,600 $322,400 $20,150 $318,000 $181,350 $30,225 $447,480 $2,927,172 $7,672,815

$370,054 $206,550 Direct Capitalization Method $34,425 Value Indications $573,400 Stabilized Net Operating Income $3,321,074 Overall Capitalization Rate $9,014,058 As Stabilized Value

Rounded

$ / Unit $19,039

Total $ $7,672,815 3.90% $196,738,855

Effective Date: 9/20/2019 $488,089

$767.10

$196,700,000

Direct Capitalization Method Value Indications Stabilized Net Operating Income Overall Capitalization Rate As Stabilized Value Rounded

$ / Unit $19,638

Total $ $9,014,058 3.90%

Effective Date: 10/15/2019

Valuation Matrix OAR 3.40%

$231,129,685

$503,486

$771.76

Value Estimates of Hypothetical As Stabilized and Hypothetical Upon Completion Values $265,119,344 Hypothetical As Stabilized $246,960,485 Hypothetical As Stabilized Value $231,129,685 Rounded $217,206,210 Compiled by NKF $204,864,948

3.65% 3.90% 4.15% 4.40% Estimates of Hypothetical As Stabilized and Hypothetical Upon Completion Values Hypothetical As Stabilized Hypothetical As Stabilized Value Rounded

Value Indication $196,738,855

Effective Date: 9/20/2019 $488,089

$767.10

$196,700,000

Value Indication $231,129,685

Effective Date: 10/15/2019 $503,486

$225,671,039 $210,214,119 $196,738,855 $184,887,116 $174,382,167

3.65% 3.90% 4.15% 4.40%

$231,100,000

Valuation Matrix OAR 3.40%

Value

$771.76

$231,100,000

Compiled by NKF

$231,100

$196,700 TOTAL VALUE $427,800