Dreamwood Heights

Confidentiality

This document, and any associated material, contains information about BLACKWOOD HILLS, which is proprietary and confidential in nature. It may not be copied, published, distributed, or transmitted, in whole or in part, by any person or medium, in any format, without obtaining the written consent of The JDL Group. Disclaimer

All information and materials in this report are for discussion purposes only. Nothing herein should be construed as an offer to sell or a solicitation of any offer to buy any securities. Offers are made only by private placement memorandum or other offering materials. For more information, you must complete an investor questionnaire and meet suitability standards required by law.

Investment Summary

BLACKWOOD HILLS is a proposed 15.4 acre planned urban village development, in McKinney, Texas. The development is projected to feature 156 townhome sites, in the $400K - $650K price range, 23K+ square feet of mixed-use boutique retail and office space, and 70 units of market rate and affordable multifamily, totaling 28K+ square feet.

BLACKWOOD HILLS is within close proximity to I-75, (only 3 minutes away), and the Historic Downtown McKinney Square (only 10 minutes away). The development will feature upscale, yet affordable, 3 - 4 story townhomes. Upon request, buyers can request additional home features such as elevators, side and/or rooftop decks, and inground pools.

BLACKWOOD HILLS will feature the latest technology in creating a lite, ecofriendly, infrastructure footprint. For example, the site will utilize an AWG system (Atmospheric Water Generation), incinerating latrines (independent of plumbing / septic infrastructure) integration of smart technology for an interconnected community experience. Additional conveniences within the development include a significant amount of walkable green space, a playscape / waterscape area for children, an outdoor swimming pool and patio area, onsite fitness, and wellness facilities, and much more.

BLACKWOOD HILLS is well positioned in a fast-moving housing market, in severe need of new missing middle and affordable housing. We have a remarkable location, exceptionally priced land acquisition, and overwhelming data leading us to move forward on this exciting project.

BLACKWOOD HILLS is projected as a 3-4 year phased development on the residential side from start to finish, with a 10-year hold on the mixed-use and multifamily, and a backend sell-off of the MU/MF. We are offering investors an 9% preferred return plus 45% equity/waterfall upon project completion.

Investment Summary cont.

Assumptions & Inputs

Financing & Returns

Location Overview

- 15.4 Acres of Land at a Prime Location

- One of America’s Best Cities to Live, McKinney, Texas

- Within Close Proximity to Interstate Highway I-75

- 310 Feet of Road Frontage on Eldorado Parkway

- 10 Minutes from Historic Downtown McKinney Square

- Adjacent to a 73-Acre Walkable Greenspace

Community amenities including, swimming pool, playscape, fitness center, learning center, and meeting space.

70 units of multi-family, with a proposed 70 / 30 mix of market rate / affordable units.

Abstract Site Plan

84 units of mixed-use space, with a mix of boutique style retail, and executive sized offices.

City-owned greenspace, with walkable park and approximately 1-acre pond.

Secondary access point from an interior street in adjacent neighborhood.

140 lots for a mix of 100 mid-size, and 46 full-size modular built townhomes.

Liberal arrays of wide walkable pathways, spread out along corridors of open greenspace.

Main access off Eldorado Pkwy, with 16 lots of microsize townhome bungalows.

3-Story Townhomes / Minimal Lot Lines / Front Entry Garages

Entrance Backyard

Benefits to Investors

- An excellent capital preservation asset.

- 9% interest, plus 45% waterfall ‘equity kicker’ of net profit.

- Superior investment returns, backed by solid Texas real estate.

- Prime land acquired at an excellent price of $130K per acre.

- A portfolio diversification beyond stocks, bonds, and cash.

- Missing Middle, and Affordable Housing are two of the biggest problems in the real estate market today. This development provides tremendous solutions for that problem.

- The development strategy and sell through model, is a risk reduction safeguard, when compared to the current market.

- The development acts as a counterweight to paper assets, which fluctuate with market volatility.

- The development is a recession resilient asset, with a hedge against inflation.

- This development not only provides healthy margins, but also gives multiple exit strategies, that can be utilized in the event of a shift in the marketplace.

- QRA: (Qualified Retirement Account) holders, such as selfdirected IRA’s and 401K’s who need a safe environment to build wealth.

- HENRY: (Highly Educated, Not Rich Yet) who have little time to learn how to invest in real estate, but who would like to enjoy the benefits of this type of investment.

- II: (Individual Investors) looking for both income via an attractive preferred return and growth, by participating in an investment that shares the upside upon exit.

Who Should Invest

- HNW: (High Net Worth) accredited individual investors who are looking for a passive investment in stable, well-managed real estate assets.

- PE: (Private Equity) funds looking for diversification into mixed-use planned developments.

100.66 % Projected IRR

Experienced Development Team

Median Home Value | $509,534

Median Household Income | $113,286

Submarket Overview

Median Rent | $2,475

Homeowners | 64.9%

McKinney, Texas is a rapidly growing community North Dallas suburb within the DFW (Dallas/Fort Worth) Metroplex of Collin County. It is conveniently located just 33 miles north of downtown Dallas, Texas. Residents appreciate the sense of community and belonging McKinney offers, as well as its safety, quality education, churches, entertainment venues, along with a growing economy and decade’s worth of future developments in the works.

McKinney boasts a variety of attractions, including the Historic Downtown Square, Heard Natural Science Museum and Wildlife Sanctuary, Towne Lake Recreational Park, and the whimsical Adriatica Village. The city offers beautiful array of master-planned, HOA managed communities, and a variety of affordable living communities. There is access to a plethora of shopping and amenities within a short drive to the surrounding cites of Prosper, Frisco, Plano, Allen, Richardson, and Dallas, making McKinney an increasingly desirable area to live.

Market Overview

Known for its noted quality of living, with several cities consistently rated as one of the most livable places in the United States, the North Dallas region has been one of the hottest real estate markets in the country for the past decade or more. However, although the desire to own a home remains strong, increasing home prices still make it difficult for many first-time buyers to afford one. As a result, aspiring homeowners are turning instead to rural cities in the northern I-75 corridor, where they can find more affordable homes without giving up access to the cities.

As the North Dallas economy and population continue to grow, so will the demand for homes forecasted to be added, which currently stands at 42,422 new starts in 2023. Source - Dallas Business Journal On the job front, the DFW has shown job gains of approximately 600K new positions added in the last five years, with most of the growth occurring in the east side of the metro area in that timeframe. Source – The Dallas Morning News

Why BLACKWOOD HILLS

First and foremost, America is facing an affordable housing crisis. Secondly, the North Dallas region has a problem too, and that is a lack of supply of these types of housing products. As of June 2022, there were 11,108 active listings on the DFW market. That’s been on a steady trend upward from a low of 4,154 in February. There were 4,524 active listings in DFW in March, 5,350 in April, and 7,976 in May. Source - Federal Reserve Economic Data

The development will create a home solution for 156 families, along with 72 units of multi-family, and 84 units of boutique mixeduse space. BLACKWOOD HILLS will be situated on 15 acres of prime real estate, with walkable green space, a low energy / low carbon footprint, amenities usually seen in high-end master-planned communities, and state-of-the-art technology to help support the ecosystem of residents. Lots will be priced in the $400K – $650K price range, enabling hard-working families to become homeowners for a price they can afford.

We are projecting a 3-4 year phased development on the residential side from start to finish, with a 10-year hold on the mixeduse and multi-family, and a backend sell-off of the MU/MF. We are offering investors an 9% preferred return plus 45% equity/waterfall upon project completion.

Why BLACKWOOD HILLS cont.

BLACKWOOD HILLS is well positioned to capitalize on the opportunity that is before us, with respect to the current affordable housing supply crisis. In addition, this dilemma is not limited to our local or regional market. Rather, it is a challenge we face on a national level.

Furthermore, BLACKWOOD HILLS will be positioned on a prime with close access to Interstate highway I-75, only 10 minutes from the Historic Downtown McKinney Square, only 15 minutes from Shops at Legacy, Stonebriar Mall, Legacy West, and only 30 minutes from Downtown Dallas.

We have acquired the land at a remarkable price of $130K per acre, which has provided a solid foundation to form a profitable project. Moreover, this property only has a very minimal portion located in a Level A flood zone. The good news is, unlike other types of flood plain land that is unbuildable, with some basic civil engineering, the flood plain issue is easily mitigated, and the area can become buildable.

Why Modular Housing

Modular housing, often touted as the future of sustainable and efficient construction, is gaining momentum for several compelling reasons. At its core, the "why" of modular housing revolves around addressing key challenges facing traditional construction methods while offering a plethora of benefits to homeowners, developers, and the environment alike.

First and foremost, modular housing promises unparalleled efficiency. By leveraging off-site fabrication in controlled factory environments, construction timeframes are significantly reduced. This accelerated process minimizes delays due to weather conditions, labor shortages, and logistical complexities, ultimately leading to faster project completion and cost savings.

Moreover, modular housing champions sustainability. With a focus on precision engineering and resource optimization, modular construction generates less waste compared to traditional methods. Additionally, the ability to incorporate eco-friendly materials and energy-efficient systems further reduces environmental impact, aligning with the global imperative for greener building practices.

Why Modular Housing cont.

Beyond efficiency and sustainability, modular housing offers versatility and customization. Modular units can be tailored to suit diverse architectural styles, functional requirements, and aesthetic preferences. Whether it's a single-family home, a multifamily complex, or a commercial structure, modular construction affords flexibility in design and configuration, providing the tools to create spaces that truly reflect one’s vision and needs.

Furthermore, modular housing promotes affordability and accessibility. By streamlining the construction process and reducing overhead costs, modular construction often comes in at a lower price point, when compared to their site-built counterparts. This affordability opens doors to homeownership for a broader demographic, addressing housing shortages and affordability challenges in urban and rural areas alike.

In essence, the "why" of modular housing encapsulates a transformative approach to construction one that prioritizes efficiency, sustainability, versatility, affordability, and accessibility. As the demand for innovative housing solutions continues to grow, modular construction stands poised to revolutionize the way we build and live, shaping a more resilient and inclusive future for generations to come.

J.D. Lee

The JDL Group

J.D. Lee, Principal and Founder of The JDL Group, a North Dallas based development firm, has a history of playing significant roles in groundbreaking ventures, spanning over 3 decades. During his tenure as Director at Blackard Advisors, J.D. was an integral part of the creative efforts that led to the visualization of Adriatica Village, a 50-acre $350M mixed-used planned development in McKinney, TX.

One of his more significant deliveries while at Blackard, was the creation of the now popularized idiom called NeoRetroism™ along with a significant bulk of its published resources. The philosophy, defined as “The Utilizing of Old-World Characteristics in Modern-Day Development Environments” has flourished within the real estate development world, giving birth to ventures like the $100M Scereno Village in Bixby OK, the $1B Wolf Lakes Village in Georgetown, TX, the $30M Lighthouse Pointe in Corpus Christi, TX, and the $750M Barisi Village in Corpus Christi, TX.

J.D. is an Allied Professional Member of the American Institute of Architects, American Planning Association, and Project Management Institute. His passion for serving communities can be directly traced to his time in the Municipal Public Safety Sector during his early 20’s and 30’s.

J.D. is the author of several books including: The 48 Laws of Virtue, Urban Villages, The 5 Rules of Racial Equity, and Closing the 7 Gaps. His greatest pleasure, however, comes from being a husband of 28+ years to his loving wife, the proud father of 4, and investing in the lives of young innovators, whom he regularly mentors.

Cam Deaver Deaver Capital

Cam Deaver is CEO and Founder of Deaver Capital, a Frisco, TX based real estate investment firm. He studied Accounting at NC Wesleyan University, before eventually becoming an investor in residential and multi-family properties. He would go on to establish Deaver Capital, whose primary focus is on building a diversified portfolio of prime real estate assets, financial planning, and business development.

Heidi Boutwell

StrongArm Consulting

Heidi Boutwell has 20+ years of civil engineering experience. She has designed wastewater treatment plants, water line projects, sewer rehab projects, stormwater detention facilities, and is a flood plain analysis expertise.

She’s been the Infrastructure Content Manager for all Autodesk infrastructure related products over the past decade. Heidi has an Associates of Applied Science in Civil Engineering Technology from Mount Hood College.

Moti KC, PE Equagen Engineering

Moti KC is CEO and Founder of Equagen Engineering, an SBA 8(a), CPUC, DBE and nationally certified Minorityowned Business Enterprise. Moti is a 20+ year Professional Engineer with deep domestic and international experience. In 2023 Equagen made the Inc. 5000 list of the fasting-growing private companies in America.