SARGEM - Statement of Qualifications - Northhaven Development

Developer Proposal FOR

RFP 2017-02 Buena Vista Springs 1 & 1818 West Carey Avenue

SARGEM Management LLC

Neighborhood Multi-Site Revitalization Projects Mixed-Income Senior Housing Live Work Spaces & Amenties Commons SARGEM Management LLC

Providing healing environments through evidence based design

Contents .......................................

.............................................

1.0 Letter of Interest

2.0 Team Description

.......................................

.............................................

3.0 Developer Profile

4.0 Technical Response

.......................................

.............................................

Contents

3

1.0 Letter of Interest Successfully partnering with the City of North Las Vegas will allow us to achieve our mission of providing healing environments while providing meaningful job opportunities for the communities we build.

4

March 7, 2017

SARGEM LLC

City of North Las Vegas Purchasing-Risk Management Department 2250 Las Vegas Boulevard, North | Suite #710 North Las Vegas, Nevada 89030 Attn: Mr. Paul Sikora

Contracts Coordinator Re: LOI - CNLV RFP | 2017-02 BUENA VISTA SPRINGS 1 and 1818 WEST CAREY AVE Dear Mr. Sikora Thank you for the opportunity to submit our proposal in response to RFP 2017-02 BUENA VISTA SPRINGS 1 (“BVS1”) and 1818 WEST CAREY AVE. (“WC”).

Principals Garnett R. Meador, Esq. Adrian C. Roche, MAICD Susan Krygiell Robert E. Leidig, Jr. Edward A. Vance, FAIA

As the Developer, SARGEM Management LLC (“SARGEM”) enthusiastically looks forward to the opportunity to work with the City of North Las Vegas (“City”) to meet its goals and those of the community regarding the use and development on parcels BVS1 and WC. Our team is positioned to deliver a community-based development on the BVS1 land that consists primarily of housing components for seniors. We will provide homes for individuals from the immediate area that desire independent living, assisted living and memory care. In addition, we intend to delivery a “community element” which will provide a direct benefit to all local residents and the City at large. On the WC land, we intend to deliver a community based healthcare clinic, Federally Qualified Health Center or other community based product. The precise product make-up of the development will be driven by demographic and economic considerations derived from deep-dive market studies, which studies will supplement the Valbridge Property Advisors Market Study dated April 11, 2016 previously provided by the City.

SARGEM is uniquely positioned to understand the goals of the City and the community as it has participated in the community meetings held over the last several months. We understand the City’s vision on how the development of BVS1 and WC will complement its Choice Neighborhood Planning Initiative; and, that the City must be an integral part in making this vision a reality. To that end, we anticipate that the most impactful portions of the development process will be marked by transparency and partnership-like decision making. For example, choosing the operators for the various products in the development will be one of the most important decisions the Developer will have to make. SARGEM, in consultation with the City, will conduct a vigorous selection process based upon multiple factors, including: •

Experience in integrating community and supportive services; and,

•

Experience in successfully providing job opportunities for local residents and utilizing minority, women business enterprise, and Section 3 businesses, and achieving goals for utilization.

While we understand that it is possible for a single operator to manage multiple products, we believe it is most prudent to select the best-in-class operators for each individual product through an exhaustive selection process. In addition, we believe such a selection process will help insure the long-term success of the project and help mitigate risk of utilizing a single operator.

The members of the Developer are Susan Krygiell, Robert Leidig, Garnett Meador and Adrian Roche.

Information on these individuals, their related companies and experience is included in the attached proposal.

In addition, the Developer has assembled a multidisciplinary team to support and proceed through the project, which includes Ed Vance & Associates and Momeni Engineers, LLC. Primary contact persons are: •

Robert E. Leidig, Jr.

(702)-604-8395

releidig@gmail.com

•

Garnett R. Meador

(216)-536-3536

garnett@rxreit.com

Please see the attached proposal for you consideration. This proposal will remain valid for one-hundred eighty (180) days from the date the City council approves the Developer.

SARGEM Management LLC

Sincerely,

900 So. Pavilion Ctr. Dr. Suite 180 Las Vegas, NV 89144 T (702) 946 8195 F (702) 946 8196

Garnett R.Meador, Esq. Managing Member SARGEM Management LLC

Letter of Interest

5

Creating environments that are sensitive to the needs of community

2.0 Team Descriptions

2a.

2b.

2c.

Contact person, title, telephone/facsimile numbers: Name of Developer, address, tele/fax & email: Address, tele/fax numbers of delivery offices: The Legal Entity submitting: SARGEM Management LLC 900 So Pavilion, Ctr. Dr. Suite 180 Las Vegas, NV 89144 (local address) (702) 946-8195 (702) 946-8196 SARGEM Management LLC 25101 Chagrin Blvd.

Suite 210 Cleveland, OH 44122 Designated Corporate Representative: Garnett R. Meador, Esq., Managing Member SARGEM Management LLC (216)536-3536 mobile (702) 946-8195 (702) 946-8196 fax Email: garnett@rxreit.com

6

Team Descriptions

Project Development Manager Project Development Manager Robert E. Leidig Jr., Member SARGEM Management LLC 900 So Pavilion, Ctr. Dr. Suite 180 Las Vegas, NV 89144 (702) 604-8395 mobile (702) 946-8195 (702) 946-8196 fax Email: releidig@gmail.com

Our base of operation will be on-site.

2d.

Description of the firm size, number of employees, & a description of type, location, scheduled completion and dollar value of the projects in the pipeline; SARGEM Management LLC. (“SARGEM”) is a limited liability company incorporated in the State of Delaware whose members are Susan Krygiell, Robert E. Leidig, Jr., Garnett Meador and Adrian Roche. SARGEM consists of a multidisciplinary team which bring decades of experience to bear on real estate development projects. Each development project that SARGEM engages on is supplemented by specialized and local expertise. In the case of the City of North Las Vegas BUENA VISTA SPRINGS 1 (“BVS1”) and 1818 WEST CAREY AVE.(“WC”) project, the following team has been assembled: • • • • • •

Bennelong Capital Pty Limited EV&A Architects JASPER BAY LLC MediWealth Incorporated Momeni Construction Inc. Ulmer & Berne LLP – Daniel A. Gottesman, Esq.

The team can draw upon forty professionals from various disciplines for the BVS1/WC project.

The following is a list of pipeline projects: Flamingo/I215 - Senior Housing Project | $50 MM Flamingo Seniors is a development in process which will consist of 30 memory care units/35,000 Square Feet, 75 assisted living units/60,000 Square Feet, and 120 independent units/135,000 Square Feet. Earlystage development activities have been

completed, including a market supply/ demand study, proforma financial data, and feasibility modeling.

The Gables, Ohio - Multi-Community, Senior Housing Project | $51 MM The Gables develops and manages comprehensive continuum of care senior’s communities focused on dignity, independence, and well-being where residents can age peacefully.

The Gables retained Bennelong Capital in September of 2015 to be its exclusive partner to guide, negotiate and step The Gables through the development of three new state of the art, specialty care, assisted living and independent living communities.

The total number of units is more than 350 units, with a total square footage over 240,000, and will consist of independent living, assisted living and specialty care. The total estimated cost of the project is $51Million, and is being completed in three phases. Among other responsibilities, Bennelong was responsible for structuring the capital stack and raising funds for all aspects of the project – equity, mezzanine debt, construction financing and minipermanent financing. The first phase is fully funded and under construction with an anticipated open date of April 2017. Construction on phase two of the project will commence in April of 2017, with phase three commencing shortly after the certificate of occupancy is received for phase two.

Team Descriptions

7

2e.

Proposed Developer role within development team; A) Pre-Development and Construction SARGEM will establish the tenant Needs and Requirements. Our A/E consultants will meet with departmental heads whose operational areas will be effected by design and construction activities. This allows the pre-Development team to properly understand the operational needs of the facility. It also allows all project participants to begin to determine how to implement the work with the operational end product in mind. This coordination strategy ensures that both design, construction, and operational needs are tightly integrated into the pre-development process.

A/E Delivery Schedule After the establishment of tenant needs and requirements, SARGEM and the A/E will develop a CPM schedule that will detail each design activity and delivery dates. This level 1 master schedule will be used to track all aspects of the design process.

A/E Quality Control To achieve effective pre-development quality control, SARGEM will monitor the design process and verify that all deliverables and submissions required by the A/E contract are completed.

SARGEM will develop a design review procedure for all levels of design review. This procedure will outline the review process to include participants and their responsibilities, develop review agenda, facilitate the reviews with the design team and the Owner, and issue design review report and action item lists. These design reviews will be at the following levels of design development: •

8

Team Descriptions

Design Charrettes

• • • • • •

Final Concept Submittals Preliminary DD Submittal Final Design Development 50% Construction Drawings 95% Construction Drawings 100% Construction Drawings

Each design submission review will include the disciplines of structural, architectural, security, mechanical, electrical, and vertical transportation.

Each submission will also be reviewed to ensure functional, aesthetic and spatial requirements of the project are satisfied.

A/E Coordination SARGEM will conduct weekly A/E coordination and document review meetings. These meetings will allow the pre-development team to update the level 1 master schedule and ensure that each design discipline has been properly coordinated.

As an additional coordination effort, SARGEM will provide each predevelopment team participant with an updated schedule on a weekly basis.

SARGEM’s pre-development team will review progress documents on a weekly basis to achieve: • • • • • •

●Design review coordination ●Continual value analysis of design ●Constructability reviews ●Issue identification ●Problem resolutions ●Adherence to schedule

Municipal Authority Reviews / Community and Government Communication To achieve efficient and effective design, building department, and fire department review of progress drawings

2e.

is necessary. Municipal involvement ensures that final design review results in the least number of design comments at a time sensitive stage of the project.

SARGEM will maintain communication with the City of North Las Vegas and the residents through progress meetings that will be scheduled and advertised for the date, time and location. These meeting will provide monthly reports as to the project status and schedule. Additionally, we will make available information related to design, permits and financing.

SARGEM will provide information to the local residence as to the revitalization, job creation and training that will be available to the interested applicants.

SARGEM will maintain good relation with the community, neighborhood groups and Federal, State and local governments.

Pre-Development and Construction Cost Estimates SARGEM will prepare in concert with the Momeni Construction Team, estimates at each design review stage to verify the following: •

• • • •

Quantities are accurate and within the anticipated range for the design.

All design elements and building components are quantified.

Unit costs represent current market condition.

Cost escalation factors are correct.

Current scope modifications are incorporated and identified.

Constructability Reviews SARGEM will review the design documents, starting with the Final Design Development and at the 50%, 95% and 100% submissions, for constructability. These reviews will concentrate on

the materials selected, the construction sequencing, means and methods of installation and the most cost-effective construction approach. Other issues that will be addressed during these reviews are: • • • • • • •

Drawing coordination between disciplines All scope issues are properly addressed and detailed Phasing sequences are logical and coordinated Existing conditions are identified and correct Site logistics are adequately shown Drawing conflicts and ambiguities are corrected

Use of bid options, alternates and unit prices are logical.

● Design complies with all applicable local, state and federal regulations, codes and standards. Contractors are in a strong position to provide relevant information regarding material selection and constructability reviews for design aspects of projects. SARGEM’s proposed approach for the Buena Vista Projects will be to perform design review and value analysis by systematically evaluating alternatives to optimize value in the project design. All cost elements for each major system will be considered. This analysis will include considerations for expected life cycles, capital expense, and long-term operating and maintenance costs over the entire life of the facility. The emphasis is on analyzing and identifying costeffective alternatives, which provide the client with the maximum functional value at minimum cost.

SARGEM in concert with Momeni Construction will develop bid packages and a Subcontracting Plan as follows:

Team Descriptions

9

2e.

Proposed Developer Role (continued); •

•

•

•

•

•

•

During design review and estimating activities, SARGEM in concert with Momeni Construction will develop a work breakdown structure and organize the activities by major division of work.

The major divisions will be evaluated to determine the proper size and scope for the proposed bid packages.

These packages will be further evaluated based upon the project’s schedule, the available of local firms to complete the work, and considerations for participation by small business concerns.

SARGEM will review the final early bid packages for the project, and review the Subcontracting Plan in accordance with project requirements.

Prior to bidding, the Project Team will establish prequalification criteria, based upon the scope of work, quality requirements, schedule commitment, safety history, etc.

SARGEM will evaluate the Subcontracting Plan with the Contractor on an on-going basis.

Bids will be reviewed for complete scope, cost, and other criteria as determined in the Subcontracting Plan.

Pre-Construction Coordination and Issue Tracking Throughout the pre-construction phase, SARGEM will document the progress of the project by preparing a monthly progress report for the team members review. The monthly reports will be a comprehensive account of all activity of the previous month and a status of the project compared to the project schedule.

10

Team Descriptions

The monthly progress report will include: • • • • • • •

Summary of all design submission reviews Summary of all environmentally sustainable reviews Summary of all constructability reviews Summary of all design and cost issues and status or resolutions Meeting minutes during the month Current cost summary Current schedule status

SARGEM will maintain the official files of all design submissions, review comments and all correspondence and minutes for all meetings.

SARGEM will conduct monthly preconstruction meetings with the team members to discuss the monthly design progress report.

Pre-Construction Issue Anticipation and Resolution Throughout the pre-construction design reviews issues will develop that will impact cost, quality, scope and/or schedule.

The solutions to these issues will require the Owner, A/E and SARGEM to work together for the best interest of the project.

At the first partnering session, problem resolution guidelines will be developed so all parties with a vested interest in the project will have a voice in the solution.

SARGEM will facilitate open discussion on each issue; document all suggested solutions and make a recommendation to the team members for approval.

B) Guarantee of GMAX/Bidding Development of Preliminary Master Construction Schedule Once the 100% Construction document stage has been achieved, SARGEM in conjunction with Momeni Construction Inc. will complete a preliminary master schedule for the project. Drawings, specifications, Tenant concurrent operational requirements, phasing, work break downs, and quantity survey data, will be utilized to create a detailed preliminary schedule.

Prior to its release to potential subcontractors for review and comment, this preliminary schedule will be thoroughly reviewed by SARGEM pre-construction A/E team, its construction phase personnel, and the Tenant.

Pre-qualification of Participating Subcontractors Subcontractors intending to propose on the project will be required to undergo a pre-qualification process. This process ensures that each subcontractor has: •

• • •

Bonding capacity to ensure successful performance of its subcontract responsibilities A history of quality workmanship Man-power availability A history of successful projects of similar size and scope.

tor proposal. The estimating staff will work closely with the pre-construction team to ensure that preliminary scheduling has been acknowledged and that subcontractor feedback on feasibility has been provided to the scheduling department. Estimating will also require subcontractor acknowledgement of safety, phasing, and special work requirements that were developed during the pre-construction phase of the project.

Development of Final Master Construction Schedule The development of the master project schedule will have the undivided attention of the entire management team.

We will utilize subcontractor feedback on the preliminary master schedule during this phase of developing the project schedule. SARGEM will work with the General Contractors scheduler and will review the subcontractor’s information and consider the following items: •

•

Estimating Strategies

•

A detailed quantity based preliminary estimate ensures that scope and costs are accounted for in each subcontrac-

•

Does the subcontractor’s schedule include and reflect all the contractual restrictions such as the phasing established in conjunction with the Owner and building occupants, plans, special event restrictions, and utility relocations?

Has the subcontractor planned to limit disruption to the office and common spaces?

Does the subcontractor’s logic follow normal construction practices?

Are the activity durations reasonable, not too excessive or not too aggressive?

Team Descriptions

11

2e.

Proposed Developer Role (continued); •

• • •

•

•

•

Does the subcontractor’s format follow the Owners contract scheduling requirements?

Will the subcontractor’s logic require excessive resources?

Has the subcontractor’s scheduled weather sensitive work properly?

Does the subcontractor’s schedule include unnecessary logic, excessive durations, or non-contractual milestone(s) to minimize float?

Does the subcontractor’s schedule include submittals/approval/fabrication activities for long lead or critical items?

Does the subcontractor’s schedule include all the contractual interim milestones?

Does the subcontractor’s schedule account for coordination of activities with “other contractors”, the current operations, local municipalities, outside agencies and public/personal property right-of-way’s?

Best Value GMP SARGEM applies a best value analysis as an efficient method for evaluating the ratio of function to cost. This method utilizes all available data to make subcontractor selections. For each subcontractor, SARGEM will analyze: • • • • • • •

12

Team Descriptions

Conformance to Plans and Specifications History of quality workmanship on projects of similar size and scope.

Ability to achieve schedule Financial Soundness Manpower availability Cost Adherence to Safety Requirements, and safety history

Once this analysis is complete, SARGEM will recommend to the development participants a final GMP for the project.

A matrix of all bids received for each subcontractor package will be provided to the Owner, and the rational for each selection will be discussed.

C) Construction Management & Maintenance Issue Anticipation and Resolution SARGEM constantly strives to identify issues as early as possible in the construction process. This ensures that plans for their resolution can be developed and implemented successfully. When an unanticipated issue arises, SARGEM will work to quickly solve the issue by involving all relevant project participants and leveraging the projects culture of effective communication.

To resolve potential disputes, we plan to ensure that, through a partnering process, we establish a very detailed understanding of operators and the building facility’s personnel roles and responsibilities. This will allow us to communicate with appropriate personnel based on the issue at hand. Afterwards, we will establish a communication hierarchy which will be used to ensure that the appropriate personnel are well-informed of the events on the project. This would apply to both successes and challenges.

In the situation where a challenging event is being disputed, we would plan to follow the communication hierarchy which would include a specific timeline to discuss the issue at each level before proceeding to the next higher level in our organizations.

We would commit to a total team to this

hierarchy and we would elevate the issues quickly so that potential disputes can be managed and prevented from ever becoming real disputes.

Methodology of Construction Coordination for A/E Team and Owner SARGEM will conduct a bi‑weekly scheduling meeting with A/E, Contractor and Tenant. Emphasis is on the status of submittals, RFI’s, change orders, owner furnished materials, equipment deliveries, scheduled outages, etc. Finalized sub-contractor work plans will be presented for review and approval.

Once the construction schedule, submittal schedule, and man‑loading is completed and construction is underway, SARGEM will recommend a weekly, bi‑weekly, and monthly scheduling analysis process and report progress in various levels of detail to Owner.

Punch List Strategies

and/or Subcontractor, the Contractors field staff drives the punch list items to completion. The staff will monitor completion and update the Final Punch List daily.

Project Close Out We strongly believe effective management and timely closeout of the project is just as important as project start-up.

This process starts early in the project by thoroughly reviewing the project requirements and Contract documentation. As part of our Best Practices, we utilize a Close-Out Checklist to ensure proper planning with milestones is accomplished and necessary actions taken for those items not meeting targeted dates. These items will be addressed at the pre-construction meeting to ensure that goals are set early in the project so that responsibilities for each can be identified. A typical Close-Out Checklist includes the following: • •

The Quality Control Plan will provide guidelines for the punch list procedure and project close-out. The entire team, SARGEM, the Contractor, A-E, Subcontractors, and suppliers will be provided with a well-documented process for punch list and checkout. The punch list process will begin about the 85% completion point of the project or subproject building area.

• •

Once the punch list is complete, SARGEM will request final inspection by the designated parties. This will generate the Final Punch List. We will distribute the sorted portions to the appropriate parties for correction. Using the punch list printouts by area, system

• • •

• • • • • •

Start-up of equipment Successful demonstration of equipment and processes As-Builts Training programs and manuals to Facility Staff Release of liens from subcontractors Final quantity survey Material certifications Final billing Customer survey Bonding company release – Surety release of retention Punch list completion Exit interview with Facility Staff Assignment of individual responsible to closeout

Team Descriptions

13

2f.

Identify the project manager for the development & directing the development through completion; Project Development Manager Robert E. Leidig Jr., Member

SARGEM Management LLC 900 So Pavilion, Ctr. Dr. Suite 180 Las Vegas, NV 89144

Describe the project manager’s prior experience with projects of similar size & scope with particular emphasis on experience directing a multi-disciplinary team and facilitating a community involvement process;

14

Team Descriptions

Silver Stream Apartments 320 units | $28 MM Las Vegas, Nevada

Coca Cola Distribution 52,000 SF | $4.1 MM Las Vegas, Nevada

Falcon Ridge Condominiums 60 units | $12 MM Las Vegas, Nevada

PGA Club House at TPC Summerlin 36,000 SF | $5.6 MM Las Vegas, Nevada

Marie Calendars 10,000 SF Restaurant | $12.5 MM Boulder City, NV

Lechters Distribution Facility 400,000 SF | $5.1 MM Las Vegas, Nevada

Tropicana Modular Park Club House and Pools | $15.7 MM Henderson, NV

Home Depot 110,000 SF | $3.5 MM Las Vegas, Nevada

Flamingo Retail Center 8,500 SF | $500,000 Las Vegas, Nevada

ACCO Vinyl Plant 450,000 SF | $29.2 MM Ontario, CA

City Of Henderson Memorial Wall & Fountians | $3 MM Henderson, Nevada

Post Industrial Building 260,000 SF | $16.8 MM Las Vegas, Nevada

Windy Distribution Center 135,000 SF | $7.5 MM Las Vegas, Nevada

Las Vegas Hilton Pylon Sign 290 Feet Tall | $9.0 MM Las Vegas, Nevada

Spectrum Industrial Facility 340,000 SF | $10.8 MM Las Vegas, Nevada

LV Hilton Star Trek “The Experience” 88,000 SF | $89 MM Las Vegas, Nevada

Venetian Hotel and Casino 3300 Rm Tower | $65 MM Las Vegas, Nevada

Walnut Business Park 125,000 Office Building | $10.6 MM North Las Vegas, Nevada

Venetian Hotel Garage 4,000 Spaces | $35 MM Las Vegas, Nevada Greektown Trappers Alley Casino 130,000 SF | $52 MM Detroit, MI

Luxe Lofts 83 Unit Condominium | $27 MM Las Vegas, Nevada

Turnberry Condominiums 85 Units | 28 floors | $78 MM Las Vegas, Nevada Liberace Museum $3.0 MM Las Vegas, Nevada Sahara Diamond Grading Facility $4.5 MM Las Vegas, Nevada Spring Mountain Oriental Retail Phases 1,2 & 3 | $12.5 MM Las Vegas, Nevada CPI Card Services Credit Card Manufacturing Facility 400,000 SF | $6.5 MM North Las Vegas, Nevada

Mr. Wok Foods Dim Sum Factory | $1.7 MM Las Vegas, Nevada Fire Station # 32 Airport Fire Station | $5.3 MM Las Vegas, Nevada Microtel Inn and Suites 135 Room Hotel | $5.7 MM Las Vegas, Nevada Las Vegas Plaza 1&2 75,000 SF Retail Ctr. | $7.9 MM North Las Vegas, Nevada Tropicana Business Park 65,000 SF Retail Ctr. | $6.8 MM Henderson, Nevada Parking Revenue Control System McCarran Airport | $2.6 MM Las Vegas, Nevada

Fashion Show Mall Food Court Twelve Outlets | $6.5 MM Las Vegas, Nevada Hualapai Medical Campus Nine Buildings | $13 MM Las Vegas, Nevada Dr. Bronsteins Hand Center 25,00 SF | $550,000 Las Vegas, Nevada Spanish Ridge Medical Center Seven Building Campus | $11.5 MM Las Vegas, Nevada

Team Descriptions

15

Building places that enhance the human experience

2.0 Team Descriptions (Continued):

16

Team Descriptions

2g.

Provide an organization chart of the development team:

SARGEM LLC

Project Manager Ana Fimbres, Associate AIA Senior Associate

Principal-in-Charge Edward A. Vance, FAIA, NCARB President | CEO

Operator Mediwealth Inc.

Job Captain TBD Senior Associate

Project Designer TBD Design Director

EV&A Architects

Quality Control Matthew F. Burns, Associate AIA Vice President

Interior Designer Kellie Wanbaugh, RID, IIDA Vice President

Structure/Finance Bennelong Capital

General Contractor Momeni Constr.

Geo-Tech Engineer Nova

Coordination

DESIGN CONSULTANTS Structural Engineer Moe Momeni, SE Principal | Momeni Engineers

MP&E+FP+Low Voltage Engineers Kent Bell, PE Principal | HCE

Fire Life Safety | Code Michael Gentille, CBO Managing Director | PCNA

Landscape Architect Stanton Southwick, ASLA Principal | SLA

Security | Telcom | AC | PC | AV Tom Harris, PE Principal | HCE

Civil Engineer Moe Momeni, SE Principal | Momeni Engineers

Specification Consultant Martin N. Hayes, RA, CSI, CCS Principal | SASC

Lighting Designer Ken Reynar, MIES Principal | Light Solutions

Team Descriptions

17

We are committed to do our part in the campaign for Sustainable design

2.0 Team Descriptions (Continued):

2h.

18

Team Descriptions

Provide examples of the team’s prior experience in the planning and construction of mixed-income, mixed-finance and mixed-use development projects of comparable size and complexity in urban areas within the past five (5) years:

LL Bradford Development

Ambulatory Surgery Center Las Vegas, Nevada

Size 12,000 SF

Cost $2.5 MM

> ENT Ambulatory Surgery Center Surgery Centers can be comfortable, providing every amenity needed to make you feel relaxed, but ultimately your stay at the clinic is for one purpose: getting you safely back to your family. With modern designs and a focus on the family, we have designed a new clinic environment that provides every patient with a relaxed feel until the time comes for them to head home to be with their families.

Completed in late 2014 the new ENT/ASC is one of the most advanced surgery centers in Las Vegas boasting three class “A” O.R.’s. The strikingly modern facility provides the highest levels of specialized medical and surgical needs, all within a family-centered environment. Exteriors feature hi-performance glazing, roof top sky-lights, metal panels and locally quarried Southwestern stone.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: PROJECT DESIGNER: DESIGN PRINCIPAL: AWARDS:

22

Team Descriptions

LL Bradford | ENT Doctor Group EV&A 12,000 SF | $2.5 MM Kevin Welch, Associate AIA Edward A. Vance, FAIA HONOR Award | NAIOP | 2017

Covenant Care

Silver Hills Healthcare Center Las Vegas, Nevada

Size 50,000 SF

Cost $9.5 MM

> Skilled Nursing “Health care reform is expanding the opportunity for skilled nursing communities to provide temporary, postacute care for people who are discharged sooner and sicker from hospitals in order to meet the needs of an aging population”.

> Silver Hills Health Care Center The Silver Hills Health Care Center is a 118 bed skilled nursing facility located in a quiet residential area of Northwest Las Vegas. Residents enjoy state of the art conveniences in a warm, comfortable, home-like environment. Each resident room is furnished with cable television, an electric bed, private bedside telephone plus closet and drawer space.

Two elegantly enclosed internal courtyards provide safety, relaxation and leisure for its guests. Residents also enjoy extra pampering through beauty and barber shop services that include haircuts, perms, color, manicures and pedicures.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: JMA PRINCIPAL:

26

Team Descriptions

Covenant Care JMA 50,000 SF | $9.5 MM Edward A. Vance, FAIA

Care Meridian

Care Meridian Las Vegas Las Vegas, Nevada

Size 21,000 SF

Cost $4.6 MM

> Care Meridian | Las Vegas Care Meridian is a specialty skilled nursing facility that deals specifically with spinal cord and brain injury patients. The facility is designed around patient room “pods,” where each pod consists of six, two-bed rooms.

A great room area combines the dining, television lounge and nursing stations.

Completed in 2014, the facility has a quiet living room area at the main entrance with a fireplace and reception area. Located on 2.0 acres near Summerlin, this 21,000 SF 36-bed sub-acute care facility was recently converted to care for children with spinal and brain injuries.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: PRINCIPAL:

30

Team Descriptions

Care Meridian JMA | EV&A 21,000 SF | $10 MM Edward A. Vance, FAIA

Care Meridian

Care Meridian San Dimas San Dimas, California

Size 12,000 SF

Cost $2.4 MM

> Care Meridian | San Dimas, CA Care Meridian is a specialty skilled nursing facility that deals specifically with spinal cord and brain injury patients. This Southern California facility is specifically designed around patient care and rehabilitation.

The 15-bed facility will be comprised of a 10,000 SF residential wing and a separate 2,000 SF physical therapy component that together will provide state of the art care. A great room area combines the dining, television lounge, and nurse station spaces. The facility also provides a quiet living room area at the main entrance with a greeting and reception area. This facility will be completed and on-line in March of 2017.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: PROJECT MANAGER: PRINCIPAL:

34

Team Descriptions

Care Meridian EV&A 12,000 SF | $3.0 MM Kurt Walden, Associate AIA Edward A. Vance, FAIA

The Dunn Corporation

Summerlin South Medical Center Las Vegas, Nevada

Size 123,000 SF

Cost $20.5 MM

> Summerlin South Medical Center Still in the planning stages, this project is located adjacent to the St. Rose San Martin Campus facility in the Southwest part of the Valley. EV&A was commissioned to prepare plans for the first phase of this 15 acre medical center for the Dunn Corporation.

This state of the art facility sited on six acres will be composed of twin two story wings housing 120 beds each. Centrally located 2-story atriums will bathe the facility with natural light throughout. This project is scheduled to be completed in early 2019.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: PROJECT DESIGNER: PRINCIPAL:

38

Team Descriptions

The Dunn Corporation EV&A 123,000 SF | $20.5 MM Kevin Welch, Associate AIA Edward A. Vance, FAIA

Kindred Health Care

Kindred Care Las Vegas Las Vegas, Nevada

Size 114,000 SF

Cost $24.6 MM

> Kindred Care | Las Vegas Kindred Healthcare Hospital is based on a “warm climate” prototype that was developed for this 120 bed acute care hospital. A separate ambulance entrance, intensive care unit, operating rooms, pharmacy, and wound care center complete this single story, 114,000 SF facility. Treatment varies from medical custodial and actively rehabilitative to residential in nature, with available health and social service support staff.

Semi-private and private resident rooms are arranged around a centralized nursing station for unobstructed viewing and access. The design philosophy of this facility is to foster independence thereby enhancing the resident’s quality of life.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: JMA PRINCIPAL:

42

Team Descriptions

Kindred Healthcare JMA 114,000 SF | $24.6 MM Edward A. Vance, FAIA

Strategic Behavioral Health

Montevista Psychiatric Hospital Las Vegas, Nevada Size 42,000 SF

Cost $9.8 MM

> Behavioral Health One of the primary goals in approaching any behavioral health project is to identify technology-enabled solutions that will create a more effective and innovative behavioral health delivery system for children, adolescents and adults with behavioral health needs.

> Montevista Psychiatric Hospital Completed in 2016, the recent 45,000 SF expansion of the existing facility nearly doubled the hospital’s size.

The new facilities, increasing the number of psychiatrists, addictionologists, family practitioners, internists, anesthesiologists, psychologists, psychiatric nurses, social workers, and marriage and family therapists.

Montevista has contracts with most managed care organizations and with Nevada Medicaid. The facility is licensed by the State of Nevada, Department of Human Resources, Division of Health as a hospital and is accredited by the Joint Commission on Accreditation of Healthcare Organizations. A second phase of 60-Memory care beds was recently completed in 2017.

PROJECT INFORMATION CLIENT | OWNER: CONSULTING FIRM:

LS3P

EXECUTIVE ARCHITECT:

EV&A

SCOPE | COST: PROJECT MANAGER: PRINCIPAL:

46

Team Descriptions

Strategic Behavioral Health

45,000 SF | $9.8 MM Matthew Burns, Associate AIA Edward A. Vance, FAIA

Las Ventanas

Ronald Reagan Memory Suites Las Vegas, Nevada Size 16,000 SF

Cost $1.2 MM

> Ronald Reagan Memory Suites Established in 2004, Las Ventanas provides the unique “Life Care” approach to living. The facility includes residential homes, assisted living, and skilled nursing all in one campus. EV&A was commissioned to add “Memory Support” to their Life Care approach to living.

The 16,000 SF, 16 bed facility called the “Ronald Reagan Memory Suites” will welcome residents into their specialized, safe and secured home where each unique resident will feel valued.

With the addition of this critical community completed in late 2016, it completed the Las Ventanas Life Care approach to living, adding this much needed secured community to the Las Vegas Valley.

PROJECT INFORMATION CLIENT | OWNER: FIRM: SCOPE | COST: PROJECT MANAGER: PRINCIPAL:

50

Team Descriptions

ABHOW EV&A 16,000 SF | $1.2 MM Matthew Burns, Associate AIA Edward A. Vance, FAIA

We are focused on delivering great projects on time & in budget

2.0 Team Descriptions (Continued):

2j.

Provide a narrative description of the team’s previous experience in integrating community and supportive services into the overall development and maintenance of similar projects; SARGEM Management LLC harnesses the individual experiences of a multidisciplinary team. The experience includes: • Transactional law experience • Capital structuring and finance raising • Real-estate expertise • Healthcare industry expertise • Architectural and Engineering • Development and Construction Management Each development project that SARGEM engages on is supplemented by specialized and local expertise. In the case of the City of North Las Vegas BUENA VISTA SPRINGS 1 (“BVS1”) and 1818 WEST CAREY AVE.(“WC”) project, the following team has been assembled:

52

Team Descriptions

• • • • • • •

Bennelong Capital Pty Limited Ed Vance & Associates Architects ERA Brokers Consolidated (Woman Business Enterprise) JASPER BAY LLC MediWealth Incorporated Momeni Construction Inc. Ulmer & Berne LLP – Daniel A. Gottesman, Esq.

Please see the personal curriculum vitae and relevant experience for each of the team members that has been assembled for this development.

We have within our team experience delivered major facilities to the Federal government as well as State and Local governments. Private development carries a closeout process that fits the description as well.

SARGEM has adopted a best practices process that brings the responsible parties together in the front end of the project and creates a process by which channels of communication are opened to the community. Through this channel, we will maintain a question and answer process as described in sections 2e.

2e Municipal Authority Reviews / Community and Government Communication To achieve efficient and effective design, building department, and fire department review of progress drawings is necessary. Municipal involvement ensures that final design review results in the least number of design comments at a time sensitive stage of the project.

SARGEM will maintain communication with the City of North Las Vegas and the residents through progress meetings that will be scheduled and advertised for the date, time and location. These meeting will provide monthly reports as to the project status and schedule. Additionally, we will make available information related to design, permits and financing.

them informed as to the specifications and brands of materials and equipment then intergrade them into the close out process for start-up and operations.

Project Close Out We strongly believe effective management and timely closeout of the project is just as important as project start-up. This process starts early in the project by thoroughly reviewing the project requirements and Contract documentation. As part of our Best Practices, we utilize a Close-Out Checklist to ensure proper planning with milestones is accomplished and necessary actions taken for those items not meeting targeted dates.

These items will be addressed at the pre-construction meeting to ensure that goals are set early in the project so that responsibilities for each can be identified. A typical Close-Out Checklist includes the following: • • • • •

SARGEM will provide information to the local residence as to the revitalization, job creation and training that will be available to the interested applicants. SARGEM will maintain good relation with the community, neighborhood groups and Federal, State and local governments.

As it related to the maintenance, we bring in the responsible parties on the front end of the project so we can keep

• • • • • • • •

Start-up of equipment Successful demonstration of equipment and processes As-Builts Training programs and manuals to Facility Staff Release of liens from subcontractors Final quantity survey Material certifications Final billing Customer survey Bonding company release – Surety release of retention Punch list completion Exit interview with Facility Staff Assignment of individual responsible to closeout

Team Descriptions

53

2k.

Provide a narrative description of the team’s previous experience in successfully providing job opportunities for local residents and utilizing M/ WBE/Section 3 businesses and achieving goals for utilization; Our team previous experience in successfully providing job opportunities for the local residences comes through the historical relationships created through the Operators but not necessarily limited to those outlined and listed section 3d.

Our Operators action plan for normal employment goals are based on “new hires”, which are defined as full-time employees for permanent, temporary or seasonal employment opportunities.

We employ qualified Section 3 residents, as thirty percent (30%) of aggregate number of new hires resulting from contracts and subcontracts on the covered activity.

We award to Section 3 business concerns at least ten percent (10%) of the total dollar amount of all Section 3 covered contracts for building trades work and award to Section 3 business concerns at least three percent (3%) of the total dollar amount of all Section 3 covered contracts for non-construction work.

2l.

Team Descriptions

• • • • • • • •

Administration Marketing Office Personnel Dietary Positions Maintenance Positions House Keeping Activities Positions Nursing Staff & Aids

SARGEM training and employment extends to: Persons in public and assisted housing Persons in the area where the HUD financial assistance is expended Participants in HUD Youth build programs M/WBE utilization will happen through the engagement of the FIRSTMED Relationship and identified in the attached letter dated February 24,2017.

Indicate whether the Developer or any team member has ever been terminated from a contract, and if so, describe the circumstances and outcome; Neither the Developer or any team members have been terminated from a

54

The bulk of the positions that need to be filled through the job fairs that we normally advertise are long term positions. The positions that have normally been filled fall under following categories.

development or other contract.

2m.

Indicate whether the Developer or any team member has ever sued or been sued, and if so, describe the circumstances and the outcome: Year Parties Court 2008 Meador v US District Ct

International District of Nevada

Housing Corp

Comments/Disposition Action brought by Meador against corporate investor for breach of contract in $200MM mixed use development. Judgment in favor of Meador.

2008

Community Bank v Susan Hunt-Krygiell Susan Hunt-Krygiell Rev Trust et al

US District Ct – District of Nevada

Breach of Contract-Case is closed.

2008

Valerie Swecker, Connie Mendoza vs Andrew Lai, Susan Hunt-Krygiell, et al

US District Ct – District of Nevada

Breach of Contract-Case is Closed

2014

Susan Hunt-Krygiell, US District Ct – Plaintiff(s) vs. Ballard District of Nevada Spahr LLP, Defendant(s)

Negligence-Other Negligence-Case is Closed

Team Descriptions

55

We are committed to working with the CNLV to provide the very best.

3.0 Developer Profile The following is an overview of the Developer’s experience in the planning, construction and management of projects similar to what is proposed. The following information is for the last five (5) years, listed in chronological order:

3a.

List all housing, commercial or public amenities projects highlighting any that incorporated mixeduses that were successfully completed within the past 5 years; Luxe Lofts Senior Living Facility Las Vegas NV. 83 Loft Condominiums over a podium deck with under deck parking.

Value $ 27,000,000

80,000 square feet. Included is a major arterial and infrastructure for an additional 12 acres of future office construction.

Value: $ 8,000,000

Hualapai Medical Office Complex Las Vegas, NV. Six medical office buildings totaling 50,000 square feet Value: $9,000,000

Paris Hotel & Casino Las Vegas, NV. 42 story hotel tower, 4000 car parking garage, Casino and low rise facilities.

Marketed and assembled the budgets based on conceptual design, directed Pre-Development effort.

Awarded contract.

Value: $550,000,000

Spanish Ridge Phase II 7 medical office buildings totaling

56

Developer Profile

3b.

If applicable, provide evidence of competence with meeting requirements of LIHTC program and whether Developer, any affiliated entity or related property manager has ever been cited with any program violations by any state housing finance agency; Neither the Developer or any team members have been cited or failed to

3c.

perform under any program from a state housing finance agency.

Indicate the projects which employed alternative construction techniques, such as deconstruction, prefabricated buildings, etc. Indicate projects employing sustainable development techniques and all LEED-certified development projects; The Buildings that have employed alternative construction techniques: 3355 Clayton wherein we have designed prefabricated structures to be applied to eight independent buildings and 45 two story units. We redesigned the structures from concrete tilt-up to metal panel systems where the structural systems are intricated within the panels. The project is ongoing.

We employed the reuse of materials as well as materials with recovered and recycled content for availability, feasibility and cost.

Projects that employed LEED Criteria: We have through our team members delivered LEED certified projects to multiple projects from design reviews with GSA and Interactive Design to help determine the sustainable design options that maximize LEED opportunities and building efficiency to ensure the A. J. Celebrezze Federal Building project in Cleveland OH attained a LEED Silver certification.

Developer Profile

57

We are committed to working with the CNLV to provide the very best.

3.0 Developer Profile (Continued):

3d.

Demonstrate experience with property management or working with operators of mixed-income, mixedfinance, and mixed-use rental developments of similar size, either directly or through supervision of property management provided by a third party; Choosing the operators for the various products for this project will be one of the most important decisions the Developer, in consultation with the City of North Las Vegas, will have to make. In addition to potentially providing quality housing for non-seniors, there are several different short term and long term elder care products and community healthcare products envisioned for this project – (i) for BVS I - independent living for seniors, assisted living, memory care, and (ii) for 1818 West Carey – community based healthcare clinic, Federally Qualified Health Center or other community based product. Our intention is to run a comprehensive and structured process to select the best-suited operators for the residents and the community for both the short-term and long-term.

58

Developer Profile

We understand that some operators can provide multiple services and manage multiple products. We also understand that each product has an optimal cost, operational, relational and care giving structure that is unique to that product. For this reason, utilizing a single operator for all products in this project may not result in the best solution for the community. In addition, selecting separate operators that are the best for each product, will help to mitigate the long-term risk for the community. In other words, with multiple operators, if there is a structural or financial failure within a single operator, it will not impact other products and every aspect of the project.

The process for selecting the operators will commence shortly after

a comprehensive market study is conducted, which study will supplement the Valbridge Property Advisors Market Study dated April 11, 2016, and provide deeper insight into supply and demand for the various products contemplated. The process will focus on the operators’: • • • • • •

Financial strength Experience with similar projects Operational model Offering of care resources Efficacy in integrating community and supportive services Efficacy in successfully providing job opportunities for local residents and utilizing minority, women business enterprise, and Section 3 businesses, and achieving goals for utilization

operator selection process and helping insure that the goals of the City of North Las Vegas are met. The following list of operators will be considered for this project (a much more comprehensive list will be generated as part of the selection process): •

• • •

• •

We recognize that it is the operators that will determine the short-term and especially the long-term success of this project. We are committed to working with the City of North Las Vegas in the

3e.

• •

Arrow Senior Housing (Women Business Enterprise) | www. arrowseniorliving.com Brookdale Senior Living Communities | www.brookdale.com FirstMed Health and Wellness Center (non-profit) | http://fmhwc.org National Church Residences (non-profit) |www. nationalchurchresidences.org Nevada Health Centers (nonprofit) | www.nevadahealthcenters.org Retirement Housing Foundation (non-profit) | www.rhf.org Volunteers of America (nonprofit) | www.voa.org/find-housing Sunrise Senior Living | www. sunriseseniorliving.com

Provide examples of previous projects evidencing the Developers experience with successful new construction of housing/residences (multi-family, assisted living, independent living, and single family) in an urban setting, including any such projects that are mixed-income; Luxe Lofts Senior Living Facility Las Vegas, Nevada | 83 units | $27 MM

Kindred Care Skilled Nursing Facility Las Vegas, Nevada | 120 units | $24 MM

Silver Hills Skilled Nursing Facility Las Vegas, Nevada | 118 units | $9 MM

Las Ventanas Memory Suites Las Vegas, Nevada | 16 units | $1.2 MM

Care Meridian Skilled Nursing Facility Las Vegas, Nevada | 36 units | $10 MM

Care Meridian Skilled Nursing Facility San Dimas, CA | 15 units | $3 MM

Developer Profile

59

We are committed to working with the CNLV to provide the very best.

3.0 Developer Profile (Continued):

3f.

60

Developer Profile

Provide profiles of key staff, including the Project Manager, who will be involved in the redevelopment effort. Specify the roles of key staff in carrying out this development initiative and their previous experience with housing development and redevelopment.;

Garnett R. Meador Principal | SARGEM

Executive leader with extensive managerial and operational experience in multiple industries: Healthcare; Information Technology; Retail; Consumer Products; Temporary Staffing; and Manufacturing.

MEDIWEALTH

INCORPORATED

Biography | Experience Effective communicator with Board of Directors, shareholders, management team and, most importantly in order to develop and sustain revenue growth and profitability, the “working body” of an organization. Goal setter, motivator and diligent executor of strategic plans. Proven track record for implementing new or improving existing operational systems and procedures, identifying revenue-generating opportunities and increasing profits. Diverse expertise with all aspects of starting and operating a business.

Experience Includes: • • • • • • • • • • • • •

 Strategic Plan Development  Department/Personnel Reorganization  Redesign/Creation of Processes for Operat’l Efficiency  Implementation of Cost Controls  New Distribution Channel Analysis and Build-out  Planning, Forecasting & Budgeting  Real Estate Transaction Structuring  Real Estate Due Diligence  Enterprise Risk Management  Disposition of Non-Core Assets/Businesses  Joint Venture Structuring  Multi-State Office and Manufacturing Consolidation  Sarbanes-Oxley Compliance

CAREER SUMMARY 2015-Present 2012-2015 2006-2013 2003-2006

1998-2003

1990-1998

Co-Founder - MediWealth Inc. Ohio SVP - Mace Security Internt’l - Ohio Real Estate Counsel - Jo-Ann Stores - Ohio Founder & General Counsel - Garnett & Associates, LLC - Ohio Co-Founder, CEO and General Counsel - HealthCare Reserves, Ohio Business Manager, Exec. Mgt. Member & General Counsel - W.M. Associates - Ohio

Education • • •

Juris Doctorate Degree - Cleveland-Marshall College of Law, Cleveland, Ohio; Law Review, Dean’s List Admitted to Ohio State Bar in 1986 Bachelor of Arts Degree - Case Western Reserve University, Cleveland, Ohio

Developer Profile

61

Adrian Roche, MAICD Principal | SARGEM

A dynamic CEO, corporate advisor and company director with a track record of building businesses that have delivered sustainable growth across multiple verticals. Driven by the desire to deliver positive change to companies and their culture and one who thrives in dynamic, competitive, challenging and complex environments.

Biography | Experience Adrian is a highly effective leader able to initiate, communicate and execute corporate strategy to deliver shareholders a financial return for their investment that is superior to its peers through challenging economic market conditions. Extensive experience in developing, renewing and motivating executive teams to deliver upon agreed corporate objectives. Recognized for building trusted, professional and effective relationships with boards, shareholders across diverse market sectors and in sensitive commercial environments.

Has a strong track record of success in dynamic growth environments in both private and publicly listed companies, is able to quickly assess key financial and operational drivers across a wide variety of sectors including financial services, media, technology, e-commerce, resources and property. Demonstrates superior functional expertise in corporate strategy, debt and equity finance, acquisitions, integration and performance improvement. Adrian is a performance-driven, results-focussed leader who uses passion, energy and drive to achieve agreed targets.

62

Developer Profile

CAREER SUMMARY 2012-Present 2009-Present 2008-2009 2001-2009

2002-2009 1998-2003

1996-1997 1992-1994

1990-1992

1986-1990

1984-1986

Chairman - CarAdvice.com Exec. Director - Bennelong Capital CEO/Managing Director- Paycorp PLC Founder and Managing Director -

Paycorp Holdings Pty Limited Director- Coastalwatch Holdings Pty Executive Director-Bennelong Property Group Principle - Roche Outdoor Advertising UBS Equity capital markets, Sydney Futures exchange Citibank Australia Limited Equity capital markets, Sydney Futures Exchange Credit Lyonnais Australia Stock broker/ Trading Floor Manager – Sydney Stock Exchange Anschau Fay and Laforest Trader – Sydney Stock Exchange Stockbrokers

Susan Krygiell Principal | SARGEM Susan is a leader in her industry as a Real Estate professional, working in the Las Vegas Valley for over 3 decades and providing land development and facility development successfully for the local Land holders and her entities as well.

Jasper Bay LLC

Biography | Experience Owner/Developer Currently Jasper Bay LLC, Managing Member.

Assistant Project Developer for various Health Care Facilities in Clark County, Nevada.

• Principle and Managing Member for over 40 projects.

• Negotiated with land owners, acquired and assembled large amounts of land in Clark County.

• Developed Zoning & Entitlements of various projects, taking vacant land to it’s highest and best use.

• Procured End User & performed zoning requirements to suit their individual needs.

• Planned, created conceptual uses, developed, coordinated and supervised entitlement development and marketing efforts at the corporate level for market demand and end users.

• Developed objectives and use strategies in support of overall land development goals.

• Performed direct research and contacted property owners to identify potential uses and markets for their properties.

• Prepared & implemented land development action plans for specific parcels & targeted areas of Clark County. Coordinated land parcels, identified uses, monitored execution of plans & assisted with studies and drawings prepared by Architects and Engineers.

• •

Directed, executed and supervised the Marketing of all projects, negotiations of major Real Estate Contracts and Joint Venture Agreements.

Developed major proposals, presentations & brochure materials.

Broker/Salesperson ERA Consolidated Brokers Consolidated Las Vegas, NV 2015 – Present • •

Land Acquisition leader in Clark County, Nevada.

Comanager and Owner/Developer of various LLCs & land development projects in Clark County, Nevada.

Broker/Salesperson Realty Executives of Nevada Las Vegas, NV 2001 – 2015 • • • •

Past Land Acquisition leader in Clark County, Nevada.

Comanager and Owner/Developer of various LLCs & land development projects in Clark County, Nevada.

Ranked in the top 10% of Agents with Realty Executives Internationally.

Achieved 100% Realty Executives Club 2001-2008 Recipient of the Diamond Club Award 2002-2006

Developer Profile

63

Robert E. Leidig Jr. Principal | SARGEM

Robert is an expert in his field as well, providing Pre-Development and Development Services in conjunction with Pre-Construction and Construction activities. Robert has been working in the Las Vegas Valley for over 25 years. Mr. Leidig has proven capable to take a project from its conception to completion.

Jasper Bay LLC

Biography | Experience M r. Leidig was born in Washington State and raised on an Island in the San Juan Islands. Following High School he served 3 years in the US Navy living two years in the Western Pacific and one year in Hawaii as a Vietnam Veteran. Starting a Construction Company in 1975 in the San Juan Islands, he built small Commercial and Residential projects, self-performing all trades except MPE. Moving to Las Vegas in 1987, he took up employment as a Project Superintendent with Eliot Corp., after two years he moved to Project Management where he remained for an additional 2 years ultimately promoted to Regional Director for the Hotel and Casino operations for Dillingham Construction. He remained in the Directors Position for various Construction Firms in Las Vegas until 2013 when he started a consulting firm in 2014 providing development and construction activities within partnerships.

PROJECT EXPERIENCE Centennial Medical Plaza- N. Las Vegas NV 20 Acre Site with 120 Beds Respiratory Care, 120 Beds Behavioral Care, 240 Beds Independent living, 10,000 Square Feet of Pain management, Internal medicine and Pain Management Surgery Center.

64

Developer Profile

Somerset Hills - Las Vegas, NV 360 unit class “A” apartment facility in 15 buildings.

Pre-Design and Pre-Construction activities.

Contract Amount: $22,013,319

Shaded Canyon - Henderson, NV 420 unit class “A” apartment facility in 21 buildings.

Pre-Design and Pre-Construction activities.

Contract Amount: $42,214,308

Luxe Lofts Condominium Las Vegas NV 83 Loft Condominium units over a podium deck with under deck parking.

Value $ 27,000,000

Haulapai Medical Office Complex Las Vegas, NV 6 medical office buildings totaling 50,000 square feet Value: $9,000,000 Centennial Professional Center - Las Vegas, NV 35 acre site development and 15 Medical office buildings Value: $ 24,000,000

Southern Highlands Retail Center - Las Vegas, NV 80,000 Square Feet of shell retail and 10,000 square feet of Ace Hardware build out Value: $ 8,000,000

Edward A. Vance, FAIA Principal | SARGEM

EV&A Architects 900 So. Pavilion Ctr. Dr. Suite 180 Las Vegas, NV 89144

Biography | Experience M r. Vance has served his clients, his community and the profession of architecture for more than three decades.

Design excellence has characterized Mr. Vance’s distinguished career. His work has led to more than 30 design awards and significant commissions with major healthcare, commercial and hospitality clients.

Mr. Vance has been awarded the AIA Nevada Young Architect Citation, the AIA Nevada Service Award and in 2006 he received The AIA Nevada Silver Medal, the highest honor bestowed on an architect in the State. He was elected to the AIA’s National Board of Directors in 2010 where he served a three year term receiving his Richard Upjohn Fellowship in 2012.

He was elevated to the AIA College of Fellows in early 2014 and received the AIA Regional Silver Medal in October of the same year, the highest honor bestowed on an architect in a six state region.

In

2015 during the AIA National Convention, Mr. Vance was elected to a two year post as Secretary of the AIA College of Fellows Executive Committee. As a past professor at UNLV’s College of Architecture, he

continues to guest lecture professional practice classes and juries 5th and 6th year design studios. Active in his community, Mr. Vance served on the board of trustees as past vice president for the Lied Discovery Children’s Museum. He also served on the executive board of Boy Scouts of America, is a member of NAIOP and is the past Nevada State coordinator for NCARB’s Intern Development Program.

Mr. Vance is actively registered as an Architect in seven states and is NCARB certified. He earned his Bachelor of Arts and Bachelor of Architecture degrees from North Dakota State University.

PROJECT EXPERIENCE Dignity Healthcare (CHW) Kindred East Flamingo Hospital Care Meridian Skilled Nursing Summerlin Hospital Medical Ctr. Montevista Hospital ENT Surgery Center Ronald Reagan Memory Support University Medical Center

Covenant Care Skilled Nursing St. Rose de Lima ER Expansion Sierra Health Services Silver Hills Skilled Nursing Siena Medical Office Park Steinberg Diagnostic Clinics Summerlin South Medical Center Brookdale Memory Suites

Developer Profile

65

Moe Momeni, PE, SE Principal | SARGEM

Mr. Momeni’s technical knowledge of building codes together with his knowledge of up to date costs are essential in making the most appropriate decisions for projects under design.

Biography | Experience M r. Momeni has more than 34 years of practical experience in a broad field of civil/structural engineering, and construction, including: construction management, structural design, civil design, fence/ retaining walls design, foundation design, construction supervision, site grading, site utilities (wet and dry), scheduling and cost estimating. He has extensive experience in many types of building systems including: low-rise, mid-rise and high-rise residential and office buildings, multi-family residential, commercial, institutional, retail centers, educational, medical buildings, and nuclear-fueled generating stations.

Registrations & Licenses • • • • • • •

66

Registered Civil Engineer in NV, AZ & CA Registered Professional Engineer in ND & CO Registered Structural Engineer in NV & AZ NCEES Record Certificate Contractor’s License in the State of Nevada as “B” Contractor’s License in the California as “A & B” Contractor’s License in Arizona as “B-1”

Developer Profile

Education • M.S., Structural Engineering (with Highest Honors), California State University, Fullerton, 1994 • Graduate Study and Research in Structural Engineering, University of Toledo, Toledo, 1983 • B.S., Civil Engineering, University of New Haven, West Haven, 1981

Professional Activities • LEED Accredited Professional BD+C • Member – American Society of Civil Engineers, ASCE • Member – Structural Engineering Institute, SEI • Member – American Institute of Steel Construction, AISC • Member – American Concrete Institute, ACI • Member – International Code Council, ICC • Member – Precast/Prestressed Concrete Institute, PCI • Member - Structural Engineers Association of Southern Nevada, SEASoN • SEASoN, Board Member (2004-2009), • SEASoN President (2008-2009)

Developer Profile

67

We are committed to working with the CNLV to provide the very best.

3.0 Developer Profile (Continued) :

3g.

Attached are three concurrent years of audited or Certified Public Accountant prepared financial statements from each member of the Developer’s team who will be providing any guarantees in connection with the development and operation of the project: The financial statements include the most current year for which audited or CPA prepared financial statements are available. The statements include an Income Statement as well as a Balance Sheet showing assets, liabilities and net worth of the entity. Financial statements and bank references have been placed in a separate sealed envelope marked “confidential.”

Our Bank References are : Ryan Sullivan, COO Bank of George | Senior Vice President Las Vegas, NV 89148 702-851-4200 Joseph J. Laiacona, VP Tropicana Banking Office Las Vegas, NV 89119 702-968-2363 Adrienne Carrillo, AVP US BANK | Branch Manager Las Vegas, NV 89102 702-251-1602

68

Developer Profile

3h.

The following is a statement indicating how we the Developer will honor all financial guarantees, should the need arise: As part of our risk management procedures, SARGEM will carefully manage the respective financial guarantees during the following stages of the development:

3i.

Construction: The prime contractor will be engaged on a Gross Maximum Price Contract (GMP) for the various phases of the construction. Subject to terms and conditions of the contract, this GMP maybe surety bonded by a third party.

to demonstrate and comply with the following conditions: • Six (6) month guarantee for the triple net lease, secured by cash bank guarantee; • Operational cash debt serviceability ratios of at least 1.5 times interest coverage; • Strong financial balance sheets supported by sound operating and reporting procedures, which will reduce single point failures.

• Annual third party audited accounts.

Operations: A financial pre condition of our selection process for the Operator/Manager of the facility, the operator will need

The referenced list of prospective operators in the previous sections have been listed with these measures as one of the competing criteria for selection.

In addition to our bank reference, please find below five additional references; 1.

Jeff Moore Broker | Owner Brokers Consolidated 1735 Village Center Circle Las Vegas, Nevada 89134 702.873.4500 jeffmoorelv@gmail.com

4.

Bryan Herb | Regional Dir. Brookdale 6737 W. Washington Street Milwaukee, WI 53214 208.866.8638 Bryan.Herb@brookdale.com

2.

Jonathan Boyar | Exec. Dir. Las Ventanas 10401 W Charleston Blvd.

Las Vegas, Nevada 89135 702.240.0276 jboyar@lasventanaslv.com

David Southworth | Chairman Paycorp PLC Old Hall Lane, Pleasington Blackburn, Lancashire, BB2 6RJ +44 125 4209435 southworth148@btinternet.com

3.

Frank Hamadani | Owner Luxe Lofts LLC 3900 West Flamingo Boulevard Las Vegas, Nevada 89014 949.246.7700 f@hamadani.com

5.

Developer Profile

69

“Unity is strength... when there is teamwork and collaboration, wonderful things can be achieved.”

4.0

Technical Response The following is our preliminary conceptual vision and approach relative to community engagement and design for the Housing and Neighborhood Components of the Project.

4a.

Feasibility Analysis for the Site and Neighborhood EXECUTIVE SUMMARY Buena Vista Springs I is an assemblage of 18.35+/- acres of vacant land.

This parcel has desirable frontage along Martin Luther King Boulevard on the east and Carey Avenue to the south.

It has secondary frontage access along its north and west boundaries.

It is large enough to support a range of uses. Both streets, Martin Luther King Boulevard and Carey Avenue, are considered to be major thoroughfares in the area.

This site is slated for a Mixed Use Neighborhood by the North Las Vegas master plan. Based on the research provided by the Valbridge Study, the subject could support a mix of uses including single family and multi-family residential, specialty medical office

70

Technical Response

or limited retail and/or assisted living facilities, among other uses.

Also noted is the lack of assisted living facilities in the area as well as senior apartments. The newer assisted living facilities constructed in the valley involve lot sizes of 4 to 5 acres.

One of the 3 conclusions from the market survey, was the Assisted living component estimated to comprise 40% of the 18 acres*.

Sargem LLC’s goal is to fill the dire need for affordable Senior Living and Care Facilities with the progressive modalities, along with a “Front Door” primary care medical and possible behavioral facility, in affiliation with an Federally Qualified Health Care Center (FQHC) that will also help fill the need of medical facilities in the area.

Sargem LLC proposes project for the 18.35 Acre, BVS I, is to consist of 152 Units of Independent Living, 120 Units of Assisted Living, 35 Units of Memory Care Suites and approximately 45,000 Square Feet of common area that will consist of Administrative Office, Dining, Library, Wellness, Salon, Bistro, Prayer Room, theater, Crafts, Game Room Store.

The 1818 W. Carey Site is proposed to be Primary Medical Office Building to be situated on approximately 1 acre providing approximately 10,000 Square Feet of medical office space.

Target Market & Primary Market Area The primary market area is the geographic area from which most prospective residents will originate.

To identify the area from which most prospective residents will originate the target market used the in the analysis are within an approximate Five mile radius and total population of 511,005+/-. Total occupied housing units 168,940, median annual household income is $49,273.40.

Projected growth of 5.89% between the years 2015 and 2020.

Persons aged 55+ comprise 21.45 % of the total population within the radius.

The target market for the Independent Living and Assisted living are aged 55-64 and comprise 10.01% of the population within the radius.

The target market for the Memory Care are aged 65+ and comprise 11.44% of the population within the radius. * MARKET OPPORTUNITY

greatest opportunity for the site is active adult housing, assisted living and memory care.

PROJECTS IN PLANNING/UNDERCONSTRUCTION ON CITY OF NORTH LAS VEGAS AGENDA FOR SENIOR FACILITIES 12/2015 THROUGH 2/2017 Meeting Date: 2 /8/17-Rose Garden Final Development Plan 1731 Yale St. Approx. 2 miles, 2.75 Acres, 120 Senior Apartment units.

Meeting Date: 2/8/17-Yong Kang Las Vegas Assisted Living Center-West of Martin Luther King and North of Radio Court. Approx. .25 miles from Subject., 7.37 Acres, 4 Story Assisted Living Facility-combined Skilled Nursing and Assisted Living Affiliated with VA, 195 units with 300 beds 20% of beds will be for Skilled Nursing 80% will be for Assisted Living. Amenities Dining room, lounges, library, indoor theater, salon, spa and swimming pool.

Meeting Date 1/11/17- 2856 East Cheyenne Ave-Approx. 3.24 miles from subject. 4.46 acres. Expansion of existing residential health care facility. 16,780 Square Foot expansion.

Existing facility has 90 beds.

Meeting Date: 3/9/16- Madison Palms Senior Apartments-Ann Rd. & FerrellApprox. 4.6 miles from BVS subject.

4.93 Acres. Site plan approved for 126-unit senior apartment complex.

Total planned Independent Living Units: 246. Total planned Skilled Nursing beds: 60. Total Planned Assisted Living Units: 240

Based on this preliminary study, the

Technical Response

71

4a.

Feasibility Analysis (continued):

COMPETITION

Destination Alexander Apts: 472 units $893 - $978 | 95-98% occupied.

Senior 55+ Living: IST Senior Apts: No info available.

Las Vegas Manor: 244 units $620 - $745 | 100% Occupied.

Whispering Palms: 205 units $656 - $783 | 100% Occupied.

Sonoma Palms: 238 units $680-$820 | 100% Occupied.

Buena Vista Springs Sr. Apts: No Competition Louise Shell Sr. Apts: 100 units $490 - $580 | 100% Occupied.

Lake Tonopah Sr. Apts: 356 units $625 - $725 | 100% Occupied.

72

Technical Response

Assisted/Independent Brookdale Cheyenne: Assisted and Independent Living.

Full service studio units start at $1,600 Sold Out. 153 units Assisted & Independent Living.

100% occupied El Jen: Skilled/Assisted | 144 beds could not determine occupancy.

Skilled Nursing Mission Pines: Long Term Intermediate Care/Assisted: $350 daily rate.

North Las Vegas Care Center: Skilled Nursing Facility: 182 beds | $215 daily rate (could not obtain occupancy rate)

exceeds the existing amount of available units/beds for all modalities of senior care, and primary care medical services.

Cheyenne Care Center: Skilled Nursing Facility: (no data)

The NorthHaven Senior Care Health Center project proposed by SARGEM LLC would provide a continuum of care with a nurturing environment to enhance the quality of life for the senior residents of North Las Vegas, NV.

Deer Springs/Silver Sky: Skilled/Assisted Living: 90 Units, all inclusive higher skilled $2,425 (based on income of 17K per year.

Total: 55+ Senior Living: 1615+/- units.** Assisted Living/Independent Living: 297** Skilled Nursing: 272+/-units.* OVERVIEW: There are approximately 75 million baby boomers in the United States who are on the verge of retirement. For the next twenty years, an average of 10,000 people each day will reach age 65.

According to the research and analysis provided herein, coupled with the existing market study which was performed by Valbridge Property Advisors, which likewise provided analysis for the Choice Neighborhood Focus Area of the City of North Las Vegas, our studies find that almost all of the facilities for the various modalities are at 98% or higher occupancy, with almost all of the identified facilities having waiting lists.

It is our opinion that the proposed NorthHaven Senior Care Health Center fills a gap for the urgent need for continuous senior care services and senior medical care that is presently severely lacking within North Las Vegas.

The NorthHaven Senior Care Health Center would consist of approximately; 152 Units of Independent Living, 120 Units of Assisted Living, 35 Units of Memory Care Suites and approximately 45,000 Square Feet of common area. Additionally, the center will provide a Medical Office Building with approximately 10,000 Square Feet of medical office space.

The project would not only fill the need for such services for residents in the area, but would also compliment the area with new industry, thus enhancing the local economy by attracting new, and enhance existing businesses. The addition of these business establishments to the area will create a viable employment hub, with sustainability, and the opportunity for area residents to work and obtain job training for new skills for decades to come. * 2014-source Property Line “Valbridge Study” **Some facilities would not return phone call for data collection.

The report is only a cursory review of the market and should not be used as a substitute for a comprehensive market feasibility study.

Thus, the market demand for such senior housing care services and medical services, INFORMATION ON COMPETITIVE PROPERTIES IS GATHERED FROM 3RD PARTY VENDORS AND IS EXPECTED TO ENCOMPASS ALL PROPERTIES IN THE STUDY AREA. HOWEVER, WE CANNOT GUARANTEE THAT ALL PROPERTIES ARE INCLUDED. SHOULD YOU DETERMINE A PROPERTY WAS OMITTED, WE WILL REVISE THE REPORT AND OUR FINDINGS TO INCLUDE THAT PROPERTY.

Technical Response

73

4b.

Economic/employment impact in general as well as to community residents: Job Opportunities (Approximate for 100 resident AL/MC) Department

Notes

Administration

Administrator

FT position Director - Business Office FT position Reception - 1st (LEAD) FT position Reception - 2nd FT position Reception - Weekends FT position Marketing Staff Director FT position Dietary Director FT position Cook FT position (3) Server FT position (8) Prep Cook FT position Maintenance Director FT position Assistant FT position Housekeeping & Laundry Director (Laundry/Housekeeping) FT position Housekeeper FT position (4-6) Activities Director FT position Assistant

FT position

Nursing DON FT position ADON

FT position RN/LPN FT position (3-4) Nurse Aides Aides FT position (10) Aides PT position (8) Job Opportunities (Approximate for 240 IL Units) Office Personnel Office FT position (2) Maintenance Director FT position Assistant FT position

74

Technical Response

Hourly Market Rate Market Rate $13.00 $10.00 $10.00 Market Rate Market Rate $12.00 $9.25 $10.00 Market Rate Market Rate

Market Rate $9.00 $16.00 $12.00 Market Rate Market Rate $20.00 $11.00 $11.00

$12.00 Market Rate Market Rate

Job Opportunities (Approximate for 152 Keys Independent Living) Department

Notes

Administration

Administrator

FT position Director - Business Office FT position Reception - 1st (LEAD) FT position Reception - 2nd FT position Reception - Weekends FT position Marketing Staff Director FT position Dietary Director FT position Cook (Shared Kitchen) FT position (1) Server (Shared Dining Rm.) FT position (8) Prep Cook (Shared Kitchen) FT position (1) Maintenance Director FT position Assistant FT position Housekeeping & Laundry Director (Laundry/Housekeeping) FT position Housekeeper FT position (4-6) Activities Director FT position Assistant

FT position

Driver FT position Nursing DON FT position ADON

FT position RN/LPN FT position (3-4) Nurse Aides Aides FT position (2) Aides PT position (2)

Hourly Market Rate Market Rate $13.00 $10.00 $10.00 Market Rate Market Rate $12.00 $9.25 $10.00 Market Rate Market Rate

Market Rate $9.00 $16.00 $12.00 $16.00 Market Rate Market Rate Market Rate

On Call On Call On Call

$11.00 On Call $11.00 On Call

Technical Response

75

76

Technical Response

4c.

Meeting a National Objective for proposed target sites: 1818 West Carey site: The construction of a health center on the one acre site at 1818 West Carey will meet the Low Moderate Area Benefit (LMA) national objective as an Area Benefit in which all residents in a particular area in which 51% are

Low/Moderate Income (LMI) persons.

Since a health center is the projected development for this site, no further justification for meeting a national objective is needed for use for this site in the application.

Project Site

PROJECT DATA Total Site............+/-1 Acre

A.

Surgery Center/Clinic

• •

Single Level 10,000 SF

PARKING REQUIRED..........50 CARS PARKING PROVIDED. . . .......41 CARS

Technical Response

77

4c.

Meeting a National Objective for proposed target sites (continued): The 18.35 acre Buena Vista Springs 1 site: The following describes how the proposed project will meet one or more of the following National Objectives (A-D) as defined by HUD: The City of North Las Vegas is or

from the community or creation of a

will be considered a Community

community feature which is available to

Development Block Grant (“CDBG”)

all the residents in the community. The

Entitlement community and the City’s

results of the studies, which will drive

Choice Target Area is expected to

the final product mix and a deeper

receive a Neighborhood Revitalization

understanding of the demographics

Strategy Area (“NRSA”) designation

within the NRSA, will drive which of the

once its Choice Transformation Plan is

national objectives are being met.

accepted by HUD. As a result, one or more national objectives must be met

In determining whether there is a

by the project.

sufficiently large percentage of lowand moderate-income persons residing

Regarding the Buena Vista Springs

in the area served by the project to

1 site, there are a number of ways

qualify under paragraph Sections 24

this project could meet the national

CFR 570.208 (a)(1) (i), (ii), or (vii) and

objectives. Subject to the guidance

Sections 24 CFR 570.208 (a) (2), (a)

provided through the final market study

(3) and (a)(4) , Developer will request

and feasibility study, Developer will

the assistance of the City of North Las

create (i) a community of independent

Vegas in reviewing the most recently

living housing, which will provide

available decennial Census Bureau

homes for mostly low and moderate-

information, together with the Section 8

income level individuals, (ii) an

Housing Assistance Payments program

assisted living facility for the elderly,

at 24 CFR 813.106 income limits that

with a special care unit (memory

would have applied at the time the

care, dementia care, etc.), and (iii) a

income information was collected by

community feature (e.g., walking trails,

the Census Bureau, and in applying

outdoor courtyard, playground) which

other census and demographic

will benefit the community at large.

information available to the City of

Any one of these three components of

North Las Vegas.

the project by itself could satisfy the national objectives, through occupancy

by LMI persons, creation of jobs made available to or held by LMI person

78

Technical Response

18 ACRE - SITE & PROGRAM

Development Program

Program requirements of the State and Federal agencies will govern.

Current Zoning : R-4 (High Density) Residential

Martin Luther King

Project Site

W

es t

Av

en ue

West Cartier Avenue

West Carey Avenue

July 28, 2016 Project No. 2016902.124

MLK & Carey Avenue Senior Healthcare Center

Clark County North Las Vegas, Nevada

Technical Response

Site Map

79

CONCEPTUAL DESIGN ONLY AND MAY BE MODIFIED BASED UPON IN-DEPTH MARKET STUDY AND ECONOMIC FEASIBILITY.

West Cartier Avenue

e ic rv Se

B. tr

y

W

es

tA

ve

nu

e

A.

En

C.

Not

D. West Carey Avenue

80

March 8, 2017

Technical ResponseProject No. 2016902.124

MLK & Carey Avenue Senior Healthcare Center

Clark Cou North Las

PROJECT DATA Total Site............18 Acres

E. F.

t-A-Part

unty s Vegas, Nevada

Martin Luther King

Not-A-Part

A.

INDEPENDENT LIVING

• • • •

4-LEVELS | 38 UNITS/FLOOR 152 UNITS TOTAL 42,500 SF/FLOOR 170,000 SF TOTAL

B.

VILLAGE CENTER COMMONS

• • • • • •

1-LEVEL 45,000 SF ADMINISTRATIVE OFFICES INCLUDING: DINING, LIBRARY, WELLNESS, SALON, BISTRO, PRAYER ROOM, THEATER, CRAFTS, GAME ROOM, STORE.

C.

ASSISTED LIVING

• • • •

4-LEVELS | 30 UNITS/FLOOR 120 UNITS TOTAL 35,000 SF/FLOOR 140,000 SF TOTAL

D.

MEMORY CARE SUITES

• • • • •

SINGLE STORY 35 UNITS TOTAL 40,000 SF ADMIN, DINING, SALON, LAUNDRY CRAFTS, LIVING ROOM, GARDEN

PARKING REQUIRED..........560 CARS PARKING PROVIDED. . . .......560 CARS

E.

COMMUNITY PARK (1.15 AC)

• • •

OPEN GRASS SEATING FOR 300+ PERFORMANCE GAZEBO WALKING PATHS

F.

FUTURE DEVELOPEMENT

• • •

SINGLE STORY RETAIL CENTER COMMUNITY PLAZA CITY PROPERTY (NOT-A-PART)

Conceptual Site Plan

Technical Response

81

3

“Unity is strength... when there is teamwork and collaboration, wonderful things can be achieved.”

4.0

Technical Response (Continued):

4d.

Financing Approach The SARGEM Management LLC team have extensive experience in sourcing, arranging and structuring finance for real estate development and investment transactions. Collectively the team has structured as principle and or advisor in excess of $750m financing across health care real estate, commercial and multifamily developments.

Our feasibility and prudent risk management methodology in assessing development opportunities has been honed over many years and we have applied the same rigour to the proposed City of Nth Las Vegas transaction.

Prior to proceeding to formal due diligence on an opportunity, we undertake a preliminary market study, which assesses the following essential criteria:

82

Technical Response

• • • • • • •

Demographics Suitability of proposed product Competition and price elasticity Compliance with city zoning Development impact Growth prospects for subject area Proximity to current and/ or proposed infrastructure (Roads, shopping centers, hospitals, retail, etc.)

We have reviewed the preliminary market studies undertaken by City and will overlay and incorporate these findings with our own independent detailed market study. Our market study will be based on the proposed development and how the product mix will be absorbed within the subject development zone.

We review this study in concert with our sector knowledge in concert with our architects, planners and senior

finance partners. If the project meets our preliminary assessment we will proceed to preparing a detailed project financial feasibility. This feasibility is the modelling tool from which all financial decisions will be based. Key inputs including: •

• • • •

Sensitivity analysis on interest rates, product pricing, Internal Rate of Return (IRR) Weighted cost of capital Building costs Land value

Our risk management committee reviews the model to decide whether it meets our internal risk controls at which time, it will make a recommendation to the investment committee to proceed to the next stage for funding approval.

Based on our preliminary market study and feasibility analysis, the financial stack to fund the Nth Las Vegas development will comprise and be sourced via the following channels: •

•

Equity partners – Member and third party investment partners Senior Financiers – Tier 1 institutions, Community banks and government (HUD)

Equity Partners We have a range of equity partners that have invested in transactions similar to Nth Las Vegas. Our investment partner profile include: family offices, high net wealth individuals, specialist healthcare real estate investment funds and small institutions.

Investors will typically be offered preferred equity in the form of shares or units in the development company and or unit trust. The development company is overseen by a development manager, whose sole responsibility is to ensure that investor funds are being utilized in the manner in which it was represented by the developer.

Our investment partners are patient long term investors who understand risk/return ratio’s of property development, particularly ones that are supported by strong cash flow operations of the assisted living and memory care units.

The North Las Vegas project has strong appeal for our investment syndicate: • •

• •

Long term operator lease 10 + 10 Sound operator/s with strong track record to manage resource heavy facility Triple Net operating lease Excellent operating margins

Senior Financiers SARGEM has long standing relationships with a range financial institutions who have a local and national presence and a sector specific expertise across the subject development. SARGEM will conduct a competitive market tender for the senior finance strip that will include both the construction loan and the Semi Perm facility.

Technical Response

83

4d.

Financing Approach (continued): Essential criteria that we evaluate to decide a senior lender include: •

•

• •

• •

Loan to Cost (LTC) % ratio.

Range: 70-80% Loan to Value (LTV) % ratio.

Range: 75-85% Personal guarantee term Fees and charges: Line, facility and early termination fee Working capital revolver Essential terms and conditions, covenants etc.

We have had preliminary discussion with the following Senior financiers who have a deep understanding of the local Nevada market and have confirmed their support in undertaking a detailed review of the project: • •

• • •

Berkadia Pacific Western Bank - Capital Source Wells Fargo North East Bank Love Funding

From our experience, Senior Financiers typically take up to 6-8 weeks to assess and approve the financing for the project.

Once the project proceeds to stabilization we will move to roll the Semi Perm facility over to a longer term structure such as the US Department of Housing and Urban Development (HUD). We have previous experience with HUD financing projects and based

84

Technical Response

on preliminary feedback the proposed project will be eligible. We are confident the proposed development is in keeping with the stated objectives of the Choice Neighborhoods Program - replace distressed housing with high quality mixed income housing, improved support services to the youth and their families and, improve the neighborhood amenity.

HUD - Choice Neighborhood program In particular there a range of grant policies and objectives initiatives that we will source to continue to meet the objectives of the project.

Tax Credits As our project partner we will work collaboratively with the City to possibly utilise tax structures and credits available under the Tax Reform Act of 1986 which provides for a Low Income Housing Tax Credit (LIHTC).

This funding grant would be applied to the Independent Living Units.

Once the final product mix is set, we will determine the feasibility of the project supporting a subsidized rental arrangements. We will apply an Open Book approach to working with the city to achieve an optimum tax effective outcome for the City and SARGEM.

4e.

Business Terms: The Developer acknowledges the business terms set forth in Section 4E. of the Request for Proposal and states that it looks forward to discussing contractual terms which will mitigate

any risk factors to the City of North Las Vegas and which are consistent with terms and conditions in the marketplace for such a project.

Technical Response

85

SARGEM Management LLC