(#7212) US, $21m, debt fund: Commercial mortgage diversified loan pool

EXECUTIVE SUMMARY - $21 Million Commercial Mortgage Loan Pool

Offering Overview

A mixed performance, $21 million diversified loan portfolio in two pools and eight standalone offerings.

The loans represent more than twenty loans in ten borrower relationships. The loans are all backed by commercial real estate, including:

1. 85 thousand SF of industrial space in Little Rock, Arkansas

2. A 128 unit apartment building in St. Louis, Missouri

3. Three retail home centers in greater Albany, New York

4. 3 office condos and a daycare facility in Southern New Jersey

5. A 16 unit apartment building and 20 single-family rental homes in Greater Clarksville, Tennessee

We expect to acquire the pools for approximately 65% of Unpaid Principal Balance.

Return: 35-40% IRR

Strategy: The majority of the loans are non-performing - the borrowers are not making regular principal and interest payments - thus, we will first attempt to work with borrowers to help them begin to make regular payments again using payment modification methods or extension of maturities. Alternatively, if a borrower chooses not to or is unable to work towards a regular payment plan, we will pursue a foreclosure process and sell the property at or close to market value upon completion of foreclosure. If the borrower commences regular payments, then, as an exit strategy, after 12-18 months, we expect to consider the option at any time to sell the top loans or the majority of the now reperforming loans at a price as close to par, or close to a price that achieves our target return objective.