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nexstep llc

A Belgravia Group Company

Belgravia Group, Ltd. 833 N. Orleans, Suite 400, Chicago, IL 60610 312.751.2777

nexstep llc
A Belgravia Group Company

TABLE OF CONTENTS

1. MISSION STATEMENT

2. RECENT NEXSTEP ACQUISITIONS

3. ACQUISITION PROCESS

4. ABOUT: Belgravia Group, Ltd.

5
5. ABOUT: Greg Merdinger,
Merdinger Managing Principal

nexstep llc
A Belgravia Group Company

Mission Statement

nexstep llc is a venture formed to address the extraordinary market conditions found in today's real
estate environment.
i Nexstep brings
bi capital
i l andd expertise
i together
h andd provides id solutions
l i f
for
institutional ownership with the goal of maximizing value for challenged real estate assets.

nexstep llc’s
’ strategy is
i to align
li the
h interests
i off the
h institution
i i i andd nexstep, the
h operating
i partner,
through a shared risk and reward structure.

nexstep llc
ll is
i focused
f d on acquiring
i i partially
i ll completed
l d or partially
i ll sold
ld urban
b multi-family
l i f il residential
id i l
projects requiring both capital and technical expertise. In addition, nexstep, through its relationships
with institutional land funds, has developed a myriad of structures to acquire or control infill land,
which is difficult to value at present. These structures range from an outright purchase to joint ventures
with
i h ownership
hi allowing
ll i the h owner to participate
i i i future
in f profits
fi while
hil mitigating
i i i the h impact
i that
h
discounted cash flows have on current value.

• Size: Total project costs ~$7. Briar Lakeview Condominium Conversion • Acquisition Date: September 1.5mm. B note revolving for finish construction of units. • Units: 18 two and three bedroom condominium units (out of 34). Recent Acquisitions 433 W. Sales prices are at or above pro forma pricing and ahead of closing schedule. 2010. • Type: REO – broken condominium. 2011. 12 units are closed and 3 are under contract. • Current Status: as of May 31. • Structure: A/B note from seller (bank): A note for acquisition. .

all units are leased at or above pro forma rents and ahead of our leasing schedule . Newgard Rogers Park Condominium Conversion • Acquisition Date: October 8. 2010. Recent Acquisitions 1412-18 W.. 2011. p • Units: 20 two and three bedroom condominium units (out of 25). • Cu Current e Status: S us ass oof May y 31. nexstep will lease and hold units. . • Size: Total pproject j costs ~$2. $ • Structure: 3 year loan from seller (bank)..3mm. • Type: REO – broken condominium. Arthur & 6503-9 N. negotiated g deed in lieu with developer.

Recent Acquisitions CA23 – West Loop Broken Condominium Development • Acquisition Date: March 25.2mm. 2011. • Units: 11 luxuryy three bedroom condominium units (out of 24). • Current Status: as of May 31. • Size: Total project costs ~$5. Purchased by an affiliate of Nexstep LLC . 2011. • Structure: All cash. • Type: REO – broken condominium. 4 units have been sold.

It is through this team process that we continue to find opportunities to deploy capital in value-added real estate ventures. underwrite otherwise complex acquisitions. This vertical integration provides us with the unique ability to quickly. underwriting hundreds of deals. we have been able to acquire three distressed real estate assets to date and have many other potential acquisitions in process. nexstep’s principals have engaged in a perpetual conversation with dozens of banks. process It is apparent in the past two years that the bid/ask spread has diminished between lender’s book values of distressed assets and the valuations of those assets by groups like nexstep. local and national.. Belgravia g Group p maintains an in-house legal team. obtain favorable financing with low interest rates. From this constant interaction. /h ld Nexstep’s (and its parent. Acquisition Process General: Since its inception. and construction managers. . This creates a narrow window of time to acquire assets. Belgravia Group’s) ability to provide offers and responses to banks on short notice. including short due diligence and closing time frames. p . sales division. through both existing and new relationships. has kept us in a favorable light with these institutions and results in follow upp calls on other. mortgage company. “off market” p properties. and effectively. and effectively turn-around the asset for resale or for l lease/hold. providing both unsolicited and requested guidance and knowledge to the banks and otherwise “staying in front” of their respective decision makers. p In addition to its access to capital.

nexstep llc A Belgravia Group Company About: Belgravia Group. Ltd. .

BELLA COMO ~ 20 condominiums. UNION ROW ~ 35 townhomes. 530 LAKE SHORE DRIVE ~ 195 condominiums. SCHILLER PLACE ~ 39 townhomes. 2910-2920 W. completed 2000. 005. LTD. VIA COMO ~ 34 townhomes. completed 1996. completed 2002. completed 2003. do u s. has developed numerous residential properties. Lincoln Park mixed-use properties and River North office buildings. 2921-2931 W. completed 2005. VIA COMO DUE ~ 34 townhomes. completed 2010. Ltd. KENSINGTON PARK ~ 39 townhomes. TAMERLANE ~ 64 townhomes. completed 2004. FULTON STATION ~ 172 condominiums and 24 townhomes. 950 W. completed 1996. completed 1994. completed 2001. COMMONWEALTH ~72 condominiums. ROSLYN ~ 15 condominiums. and its affiliated companies are as follows: Residential Developments Completed: HARTLAND PARK I & II ~ 80 townhomes. HURON ~ 40 condominiums. THE APEX ~ 54 co condominiums. completed 1986. BELGRAVIA TERRACE ~ 36 townhomes. 441 W. CHELSEA TOWNHOMES ~ 69 townhomes. completed 2010. EMERALD CITY ~ 19 condominiums. which. GREENVIEW PARK ~ 12 townhomes. 2300 N. completed 2006. LILL ON THE PARK ~ 18 townhomes. . completed 2001. HARTLAND PARK ~ 35 townhomes.BELGRAVIA GROUP. completed 2003. completed 2007. with its affiliates. completed 2005. completed 2002. Chicagoland retail centers. SUMMERDALE ~ 21 condominiums. completed 2002. completed co p eted 2005. completed 2003. ROSLYN ~ 6 condominiums. BERWYN ~ 21 condominiums. completed p 2004. completed 2006. Some of the recent real estate developments of Belgravia Group. completed 1998. has been involved in real estate development in Chicago for over 60 years. KENSINGTON PARK II ~ 45 townhomes. 444 W.

r t il 61 apartments. a 32. North and Clybourn Avenues. . completed 1991.000 square feet of retail and 20 apartments. completed 1989.Retail Projects Completed: THE LINCOLN PARK GARAGE ~ 2431 North Clark Street. Chicago’s first freestanding garage condominium conversion. A a 7-story 7 t r building b ildi containing t i i 50. 555 NORTH MICHIGAN AVENUE ~ a 50. 33. 6-screen movie theater and 13.000 square foot addition for Barnes & Noble completed in 1997 and a 15. completed 1988. completed 1991.000 square foot shopping center. a 120. WEBSTER PLACE SHOPPING CENTER ~ 1435-1471 West Webster Avenue.938 square feet of retail.000 square foot movie theater addition and an additional 225 car parking garage completed in 1998. renovation and sales in 1999. A 15.000 50 000 square r feet f t off retail. 800 NORTH AVENUE ~ at the northwest corner of Halsted.000 square foot 4-story retail building completed in 1998. ESQUIRE CENTRE ~ 58 East Oak Street. BELDEN CENTRE ~ 2301-2315 2301 2315 North N rth Clark Cl rk Street/350 Str t/350 West W t Belden B ld Avenue. and a 140 car garage. 270 parking stalls.000 square foot.

Weiss Memorial Hospital and a member of the Dean’s Advisory Council of Northwestern University School of Law. Mr. Additionally he was named a 2007 Key Legend of the Home Builders Association of Greater Chicago and serves as a member of the Cornerstone Advisory Council and the Executive Committee of the Greater North Michigan Avenue Association. Lakewest Inc. past trustee of the Louis A. “Buzz” Ruttenberg Founder Tenure in Industry: 40 40-plus plus Years Buzz Ruttenberg David W. exceeds one billion dollars. . principally located on the north side of Chicago. Inc and Founder of Belgravia Group. The total value of all developments.David W. retail and commercial properties. For more than 40 years. Ruttenberg is an active member of numerous Chicago area civic and charitable organizations. lifetime trustee of the Francis W. from Northwestern University School of Law.. cum laude. Law Additionally. past and present. Ltd real estate development companies.. EDUCATION BA in Economics from Cornell University J. W Ruttenberg is president of Lakewest. Parker School. companies and a Partner in the law firm of Ruttenberg & Ruttenberg. These activities include his role as trustee of the Marwen Foundation. School of Economics. Group Ltd. He was the past Chairman of the Board of Trustees of Chicago’s SSA #23 (a Special Service Area for North Clark Street). Erikson Institute and the Museum of Contemporary Art. Post-graduate studies in economics at London University. Ruttenberg has been actively involved in the development of residential.D. INVOLVEMENT Mr.

Recognized R i d as an expert in real estate. Appraisal Institute. University of Illinois at Champaign-Urbana. In his spare time. Alan has appeared as a guest and keynote speaker at numerous industry events. Lev President/CEO Tenure in Industry: 20 Years Alan D. Accounting. G Ltd.. University of Illinois Chicago and Big Builder. He is past President of the Homebuilder’s Association of Greater Chicago and currently serves as Vice Chairman of the Illinois Division of the American Cancer Society. Loyola University of Chicago CPA since 1985 Licensed real estate broker since 1989. and exercise .D. and the Illinois Bar. EDUCATION BS. INVOLVEMENT Alan is a proud member of the Chicago Association of Realtors. J.Alan D.. the Chicago Bar. Lev President P id andd CEO C O off theh Belgravia B l i Group. Alan enjoys charitable activities. d Alan Al D.D Lev has h a strong attachment h to the h Chicago Chi area. including the International Builders Show.

2011: • North Tower: $142.00 (99% sold) • South Tower: $189. Lake Shore Drive • Architect: Papageorge/Haymes Ltd. p .135. 2009. Illinois .000.255. Lake Shore Drive Chicago. Current Development p Project j Overviews 600 N.000. Chicago. • Sales as of April.00 (83% sold) • Construction loan paid-off in January. • General Contractor: McHugh Construction 600 N. Illinois 60611 • 400 new construction high rise condominiums in two towers • Sales began Summer. 2004.

putting green. Quincy Chicago. viewing room. Quincy Chicago. 2011. lounge and fitness center. • 241 total units: 54 lofts and 187 tower condominiums • 229 units sold or closed as of April. 2010. • General Contractor: Belgravia Construction Corp. . complete with bowling alley. Current Development p Project j Overviews 565 W. • State of the art basement recreation room. • Construction loan paid-off in September. Illinois 60661 • Sales began Summer 2007. Illinois • Architect: Pappageorge/Haymes Ltd. 565 W.

nexstep llc A Belgravia Group Company About: Greg Merdinger. managing principal .

Center Due to the complexity of this transaction. France Masters in Architecture from the University of Illinois MBA from the University of Illinois g Registered architect INVOLVEMENT Previous member of International Council of Shopping Centers and the Greater North Michigan Avenue Association’s Board of Directors Member of REBNY / Real Estate Board of New York . a 270. million EDUCATION B. Tennessee In 2002. Merdinger completed the development of 2 East Erie. a one million square foot 50-story. California • A 143 room aloft Hotel in Cool Springs. Merdinger was responsible for 600 North Michigan Avenue. Mr Mr. Mr. 196 rental unit building totaling 147. a bank headquarters building.000 SF) and parking. Chicago. Prior to joining JBC. Mr. a one billion dollar. From 1997 to 2001. a 40-story. Greg was recently responsible for the following projects: • The Standard Hotel in New York’s Meat Packing District consisting of an 18-story.000 SF of retail • RiverEast at 92nd Street & 1st Avenue in New York. the 17-acre assemblage and rezoning received national press attention. working on the asset valuation of the entire UIDC portfolio and culminating in the sale of UIDC to JMB Realty for an estimated $250 million. which was completed in the summer of 1994. 84 condominium building with 15. Mr. The project is located on Michigan Avenue. Merdinger's responsibilities have also included the development of a 280. mixed-use residential and hotel development in Chicago's River North district. developed by JBC for First Chicago Investment Advisors. 337 guest room hotel • 57 Reade Street in New York. Merdinger completed the development of River East located in New York City. a nine block mixed-use development in Chicago. The final result of the assemblage and rezoning was a transfer of development rights to Oak Brook Shopping Center.000 SF of retail. The project is a 32-story.000 square foot retail center.000 square foot office building in Austin. Avenue in River North. North Chicago Chicago’ss entertainment district and one of the most vibrant shopping areas in North America America. Merdinger was a project manager and a financial analyst for Urban Investment and Development Company (UIDC).000 SF including 4. Mr.000 square foot retail development and Plaza 440.Tenure in Industry: 30 Years Greg Merdinger joined The John Buck Company in 1984 and served as the Principal-in-Charge of JBC’s Development Group. State Street in Chicago which is a development containing a 261 room Palomar Hotel and 145 rental units Greg Merdinger • A 136 room aloft Hotel in Rancho Cucamonga. Merdinger was responsible for the assemblage and rezoning of 46 separate home sites directly north of Oak Brook Shopping Center. Previously.A. and a 110. office (60. In 2005. In 1986 1986. Texas. 196 unit luxury apartment tower • 505 N.000 SF building with 254 residential units. Mr. 500. a 32-story. Merdinger served as Principal-in-Charge of North Bridge. Mr. a 20-story. in Architecture from the Ecole de Beaux Art in Versailles.

Development p Project j Overviews The Standard Hotel West 13th Street & Washington Street N New Y York. HotelsAB. Dune Capital & The John Buck Company • 18-story.000 SF building • 337 guest room hotel • General Contractor: Pavarini McGovern • Architect: Polshek Partnership The Standard Hotel New York. 200. k NNew YYork k • Soft opening December 2008 with anticipated grand opening in June 2009 • Joint Venture between Greenfield Partners. New York .

N ew York . 141. k NNew Y York k • Foundation work commenced June 2006 and scheduled for completion 2010 • 20-story. Development p Project j Overviews 57 Reade Street Broadway & Reade Streets N New Y York.000 SF of retail • General Contractor: Pavarini McGovern • Architect: SLCE Architects 57 Reade Street New York.298 GSF building • 84 unit condominium building • 15.

k N New Y York k • Completed in 2005 • Joint-venture between The John Buck Company. 194. which qualifies the property for federal. N ew York • Architect: SLCE Architects . Ri RiverEast E t • General Contractor: Bovis Lend Lease New York. The property and its tax credits were subject to $57.766 SF building • 196 rental unit building • 4.3 million in bond financing. Madison Equities and Capri Capital • 32-story. Development p Project j Overviews RiverEast 92nd & 1st Avenue N New Y York.325 SF of retail • Developed under the New York City Housing Development Corporation’s 80/20 program. state and city economic benefits.

Development p Project j Overviews 505 North State Street Chicago. Illinois • Joint Venture with Landowner – Royal Properties • Currently under construction.000 SF restaurant • Ability to convert rental units to “for sale” housing within 3 years • Forward sale agreements executed for hotel and residential/parking components 505 North State Street Chicago. 353.000 GSF • 261 room hotel • 145 rental units built to condominium standards • 119 parking spaces • 7. scheduled for completion 4rd Quarter 2009 • 36 story. Illinois • Architect: GREC Architects .

alofthotels. 69. Development p Project j Overviews aloft Hotels Various Locations • Five hotels proposed in joint venture • Partner: Interstate Hotels and Greenfield Partners • www. California • August 2008 • 5 story.com aloft Rancho Cucamonga Rancho Cucamonga. 74. Tennessee • September 2008 • 6 story.500 SF building • 136-room hotel aloft Cool Springs Cool Springs.600 SF building aloft Hotels • 143-room hotel Various Locations .

2005 sell-out ll completed in 12 months • Architect: Graham.000 SF retail • 235-car garage • U Units i were convertedd to condominium d i i in i 2005. Illinois • Completed March 2002 • Joint-venture development between The John Buck Company and the and Northeast Illinois District Council of Carpenters • 254-unit. 500. Illinois .000 GSF residential tower • 60.000 60 000 SF office • 3. Anderson. Probst and White 2 East Erie Chicago. Development p Project j Overviews 2 East Erie Street Chicago.

000 SF • 90 townhome units • Architect: Bauhs Dring Main 18th & Indiana Chicago. Illinois Illi i • Completed in 2002 • Joint venture between Belgravia Group. Development p Project j Overviews Kensington Park 18th Street & Indiana Chi Chicago. Illinois . • 200. Ltd. and The John Buck Company.

200 parking spaces • Morgan Stanley Real Estate was the joint-venture partner • Total Project Value – Over $1. Development p Project j Overviews North Bridge Development Chicago. Illinois .400 rooms • One million square feet of office • 457 apartments • 2. Illinois A nine city block mixed-use development with: • Approximately 1 million square feet of retail space anchored byy a Nordstrom Store • 5 hotels with 2.0 billion • Development D l t between b t 1986 andd 2001 North Bridge Development Chicago.

000 RSF Retail – 970.7 Million SF Office – 715.415 rooms Residential – 457 units Parking – 2. Size 5. Illinois .516 stalls North Bridge Development Chicago.000 970 000 RSF Hotel – 2.

Michigan / Interior Retail Conrad Hotel / Lobby 520 N. Nordstrom / Grand & Rush Streets 520 N. Michigan / Nordstrom. Michigan / Interior Walkway Block 120 / Room & Board 520 N. Prime Steak & Stone Crab . Michigan Pavers Throughout District Block 119 / Hilton Gardens Inn Block 116 / Harley-Davidson Block 120 / ESPN Zone Block 124 / Retail Block 120 / Joe’s Seafood. Marriott Hotel & Retail Block 121 / Kenneth Cole 520 N. Michigan / Interior Retail 520 N. Michigan / Retail Arcade 520 N.

190 SF retail • 391-car garage • Apartments subsequently converted to condominium in 2005 • Architect: Solomon. Illinois Illi i • Completed in 1991 p • Joint-venture development between The John Buck Company and the American Medical Association • Part of the North Bridge development • 457 457-unit unit residential tower • 14. Development p Project j Overviews Plaza 440 440 North Wabash Chi Chicago. Illinois . Cordwell & Buenz Plaza 440 Chicago.

Cordwell & Buenz . Development p Project j Overviews Marriott Courtyard at Plaza 440 Chicago. Illinois • Architect: Solomon. sold as vertical parcel interest to Marriott • Part of North Bridge development Marriott Courtyard at Plaza 440 Chicago. Illinois • Completed in 1990 • Part of the North Bridge development • 330 room hotel • First urban Marriott Courtyard.

000 SF retail space • Part of the North Bridge development • Original Anchor Tenants: Eddie Bauer. Development p Project j Overviews 600 North Michigan Avenue Chicago. L Levi’s. i’ H2O. Illinois • Completed in 1996 • 270. Illinois . Linens & Thi Things. O Ci Cineplex l OdOdeon Th Theater. t Vi Viacom 600 North Michigan Avenue Chicago.

y 299.070 SF buildingg • 283 rental units • 39.700 SF of retail. Illinois . including Whole Foods Market • 296 parking spaces • Architect: Harry Weese Associates The Park Evanston Evanston. Development p Project j Overviews The Park Evanston 1630 Chicago Avenue E Evanston. t Illi Illinois i • Completed in 1997 • Joint-venture i d l development bbetween The h John h Buck k Company and Washington National Insurance Company • 24-story.

square foot retail center • Pre-sold to Ohio State Police and Fire Pension Fund • Architect: Archideas Oak Brook Commons Oak Brook. Development p Project j Overviews Oak Brook Commons Oak Brook. Illinois . Illinois • Completed in 1994 q • Acquisition of 48 residential parcels p (17 ( acre assemblage) and rezoning resulted in the transfer of development rights to Oak Brook Shopping Center.000 . q created a bank headquarters building g and 110.

Development p Project j Overviews 8303 MoPac Austin. Texas • Completed in 1985 • 280.000 RSF office building • 389-car parking spaces c ec : Hammond • Architect: a o d Beebe eebe Babka ab a 8303 MoPac Austin. Texas .

Development p Project j Overviews 200 South Wacker Chicago. 850. Illinois . Illinois • Completed in 1981 • Joint Venture with Irvine Associates.000 SF office tower • 50% pre-leased to Continental Insurance • Currently managed and leased by The John Buck Company • Architect: Harry Weese Associates 200 South Wacker Chicago. Urban Investment & Development and The John Buck Company • 40 story.