36

GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

This presentation has been prepared by National Realty & Investment Advisors, LLC (NRIA) on the basis of information obtained from NRIA and other public
sources, as of the specified date. NRIA does not undertake any duty or obligation to update the information. NRIA does not make or gives any representation,
warranty or guarantee, whether express or implied, that the information contained in this presentation or otherwise supplied to the recipient, at any time
by or on behalf of NRIA whether in writing or not, relating to the oering discussed herein is complete or accurate or that it has been or will be audited or
independently verified, or that reasonable care has been taken in compiling, preparing or furnishing the information. This presentation provides a guide only
and it is not intended to be exhaustive and, in particular, does not contain disclosure of any of the risks associated with the opportunity. This presentation is
not to be construed as investment, tax or legal advice in relation to the relevant subject matter. You must seek your own legal or other professional advice.
This presentation contains statements that are forward-looking statements. These forward-looking statements, which are subject to numerous risks, uncertainties
and assumptions, include projections of future financial performance, anticipated growth strategies and anticipated trends in the business. These statements
are only predictions based on current expectations and projections about future events, subject to change due to actual results, level of activity, performance
or achievements. Any estimate or forecast contained in this presentation is not a promise or representation by NRIA as to future matters and nothing contained
in the information should be relied upon as a representation as to future matters.
The projections based on financial and other pro forma data set forth in this presentation were not prepared with a view toward compliance with U.S. Generally
Accepted Accounting Principles or any other published standards. Projections and other pro forma data are derived from estimates, as of the date of this
presentation, based on certain hypothetical assumptions, which are inherently subject to significant business, economic and competitive uncertainties and
contingencies. Independent estimates about the future benefits of the opportunity and pro forma data should be developed by investors before any decision
is made on whether or not to invest in the opportunity and investors should not rely on the projections and pro forma data contained herein. Summaries of
any documents about the opportunity discussed herein are not intended to be comprehensive or all inclusive, but rather only outline some of the provisions
contained therein and are qualified in their entirety by the actual document to which they relate.
This presentation does not constitute an oer or invitation to make an investment, in any form, in the opportunity discussed herein. It has been prepared to
obtain indications of interest about an investment to be made which will only be made upon the basis of the negotiations and executions of full investment
documentation. This is not an oer of an investment opportunity in any jurisdiction where it is prohibited or where a pre-filing or other action is required.
You understand that the information is confidential and is furnished solely for the purpose of your review in connection with the opportunity discussed herein.
You further understand that the information is not to be used for any other purpose or made available to any other person without the express written consent
of NRIA. This oering is subject to prior placement and withdrawal, cancellation or modification without notice.

TABLE OF CONTENTS
1 Executive Summary
2 Property Description
3 Area Overview
4 Comparable Properties
5 The Market

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

EXECUTIVE
SUMMARY

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

ORTLIEB SQUARE
Experience the excitement of Ortlieb Square 36 groundbreaking luxury townhomes in Philadelphias Northern Liberties.
Enjoy everything the neighborhood has to oer, all within walking distance of your front door: take in a free concert at the Piazza
at Schmidts, stroll and shop along Liberty Walk or dine alfresco at critically acclaimed restaurants, bars and cafes. Walking the
cobblestone streets of Northern Liberties, the neighborhoods rich industrial heritage is impossible to ignore. Our name pays
homage to Ortlieb Brewery, one of the 150 breweries that stood on and around our location not so long ago. And our high ceilings,
large windows, and hardwood floors evoke the industrial loft- a melding of traditional warmth and contemporary urban living. All
units enjoy a breathtaking common space and gourmet kitchen, equipped with high-end stainless steel appliances and granite
countertops. Feel free to entertain, relax, or unwind- our open floor plans are suited for any mood and any occasion. Enjoy the
view from your private roof deck, and pamper yourself in the master suite with its walk-in closets and a spa-like master bath. We
invite you to leave your car in your private garage- with direct access to bus and train routes, community gardens, and shopping

36
GROUNDBREAKING

centers, you will rarely need it. Welcome to Northern Liberties, welcome to Ortlieb Square.

LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

PROPERTY
DESCRIPTION

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

RENDERINGS

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

RENDERINGS

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

RENDERINGS

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

RENDERINGS

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

RENDERINGS

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

RENDERINGS

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
NORTHERN
LIBERTIES

10

SITE MAP

TYPE 1

TYPE 1A

UNIT A

UNIT A

FULL FINISHED BASEMENT; PRIVATE

DRIVE AND GARAGE

FULL FINISHED BASEMENT; PRIVATE

DRIVE AND GARAGE

3 BR + 2 FULL BATHS, 1 HALF BATH

GFA

2,246 SF

PARTIAL BASEMENT; PILOT HOUSE

SUITE; PRIVATE DRIVE AND GARAGE

PARTIAL BASEMENT; PILOT HOUSE

SUITE; PRIVATE DRIVE AND GARAGE

3,082 SF

TYPE 2

3 BR + 3 FULL BATHS, 1 HALF BATH

GFA

3,070 SF

TYPE 3

36

UNIT A - END UNIT

UNIT A

FULL FINISHED BASEMENT; PRIVATE

DRIVE AND GARAGE

FULL FINISHED BASEMENT; PRIVATE

DRIVE AND GARAGE

3 BR + 2 FULL BATHS, 1 HALF BATH

GFA

2,241 SF

3 BR + 2 FULL BATHS, 1 HALF BATH

GFA

2,444 SF

UNIT B - END UNIT

3 BR + 3 FULL BATHS, 1 HALF BATH

UNIT B

PARTIAL BASEMENT; PILOT HOUSE

SUITE; PRIVATE DRIVE AND GARAGE

PARTIAL BASEMENT; PILOT HOUSE

SUITE; PRIVATE DRIVE AND GARAGE

GFA

3,084 SF

TYPE 4

3 BR + 3 FULL BATHS, 1 HALF BATH

GFA

3,084 SF

UNIT A

FULL FINISHED BASEMENT; PRIVATE

DRIVE AND GARAGE

FULL FINISHED BASEMENT; PRIVATE

DRIVE AND GARAGE

GFA

2,377 SF

3 BR + 2 FULL BATHS, 1 HALF BATH

GFA

2,371 SF

UNIT B

UNIT B

PARTIAL BASEMENT; PILOT HOUSE

SUITE; PRIVATE DRIVE AND GARAGE

PARTIAL BASEMENT; PILOT HOUSE

SUITE; PRIVATE DRIVE AND GARAGE

3 BR + 3 FULL BATHS, 1 HALF BATH

GFA

GROUNDBREAKING
LUXURY
TOWNHOMES

TYPE 4A

UNIT A

3 BR + 2 FULL BATHS, 1 HALF BATH

2,246 SF

UNIT B

GFA

GFA

UNIT B

3 BR + 3 FULL BATHS, 1 HALF BATH

3 BR + 2 FULL BATHS, 1 HALF BATH

3,180 SF

3 BR + 3 FULL BATHS, 1 HALF BATH

GFA

3,197 SF

IN
PHILADELPHIAS
NORTHERN
LIBERTIES

TYPE 5 - COMMERCIAL & RESIDENTIAL

5A - GROUND FLOOR
COMMERICAL UNIT

5C - BI-LEVEL UNIT (FRONT)

2 BR + 2 FULL BATHS, 1 HALF BATH

COMMERCIAL STORAGE;
ADA TOILET ROOM

CMX-3 COMMERCIAL ZONING CRITERIA

GFA

LOT REQUIREMENTS
MAX % OCCUPIED AREA
MIN % OPEN AREA

REQUIRED

PROPOSED

75% (80% OF CORNER LOTS)

25% (20% OF CORNER LOTS)

57%
43%

BUILDING DIMENSIONS
FRONT YARD SETBACK
SIDE YARD SETBACK
REAR YARD SETBACK
MAX FAR

NONE REQUIRED
0 / 8 IF USED
NONE REQUIRED
500%

NA
8
NA
315%

1,469 SF

5B - SECOND FLOOR UNIT

2 BR + 2 FULL BATHS

GFA

1,541 SF

GFA

1,965 SF

5D - BI-LEVEL UNIT (REAR)

2 BR + 2 FULL BATHS

GFA

1,547 SF

11

FLOOR PLAN
Unit Type 1
ROOF LEVEL

FOURTH FLOOR

THIRD FLOOR

OUTDOOR
BEDROOM 2

BEDROOM 1

12'-0" x 13'-10"

12'-0" x 10'-0"

OFFICE
8'-0" x 7'-0"

CL
LIVING ROOM
16'-4" x 18'-2"

BATH 1

CL
36" VANITY

BATH 2

DN 11R
@ 7.09"

LAUNDRY
24" DW

LC
DN 18R
@ 7.33"

HWH

W.I.C.

UP 18R
@ 7.33"

HVAC

UP 20R
@ 7.5"

8'-7" x 7'-0"
DN 20R
@ 7.5"

UP 6R
@ 7.0"

36" VANITY

36

72" X 36"
SHOWER

PILOT HOUSE

KITCHEN / DINING

GROUNDBREAKING

17'-10" x 24'-6"

MASTER BEDROOM

MASTER
BATHROOM

17'-0" x 11'-7"

60" VANITY

POWDER
ROOM

LUXURY
TOWNHOMES

SECOND FLOOR

FIRST FLOOR

IN

BASEMENT

PHILADELPHIAS
BEDROOM 1
10'-0" x 12'-0"

BEDROOM 2

GARAGE

GARAGE

12'-2" x 18'-0"

12'-2" x 18'-0"

NORTHERN

12'-0" x 12'-0"

CL

LIBERTIES

BATH 1

DN

HVAC

KITCHEN
11'-0" x 10'-0"

W.I.C.

24" DW

UP 13R
@ 7.31"

DN 6R
@ 7.0"

UP 12R
@ 7.5"

UP 11R
@ 7.09"

DN 21R
@ 7.71"

72" X 36"
SHOWER

CL

DN 13R
@ 7.31"

DN 9R
@ 7.39"

UP 6R
@ 7.0"

DN 12R
@ 7.5"

MASTER
BATHROOM

LAUNDRY

60" VANITY

DN

48" VANITY

LC

SUMP

UP 21R
@ 7.71"

DN

CL

UP 13R
@ 7.31"

7'-6" x 5'-6"

UNFINISHED
STORAGE SPACE
LR/DR

FOYER - UNIT B

17'-10" x 9'-9"

FINISHED
BASEMENT
14'-9" x 17'-0"

MASTER BEDROOM

SUMP

17'-7" x 11'-6"

METER

OUTDOOR

UNIT A
ENTRY

UNIT B
ENTRY

12

FLOOR PLAN
Unit Type 1A
ROOF LEVEL

FOURTH FLOOR

THIRD FLOOR

OUTDOOR
BEDROOM 2

BEDROOM 1

12'-0" x 13'-10"

12'-0" x 10'-0"

OFFICE
8'-0" x 7'-0"

CL
LIVING ROOM
16'-4" x 18'-2"

BATH 1

CL
36" VANITY

BATH 2

DN 11R
@ 7.09"

LAUNDRY
24" DW

LC
DN 18R
@ 7.33"

HWH

W.I.C.

UP 18R
@ 7.33"

HVAC

UP 20R
@ 7.5"

8'-7" x 7'-0"
DN 20R
@ 7.5"

UP 6R
@ 7.0"

36" VANITY

36

72" X 36"
SHOWER

PILOT HOUSE

KITCHEN / DINING

GROUNDBREAKING

17'-10" x 24'-6"

MASTER BEDROOM

MASTER
BATHROOM

17'-0" x 11'-7"

60" VANITY

POWDER
ROOM

LUXURY
TOWNHOMES
IN

26'-0"

SECOND FLOOR

FIRST FLOOR

BASEMENT

PHILADELPHIAS
BEDROOM 1
10'-0" x 12'-0"

GARAGE

GARAGE

12'-2" x 18'-0"

12'-2" x 18'-0"

NORTHERN

18'-0"

BEDROOM 2
12'-0" x 12'-0"

CL

LIBERTIES

BATH 1

11'-0" x 10'-0"

HVAC

24" DW

UP 13R
@ 7.31"

DN 6R
@ 7.0"

UP 12R
@ 7.5"

UP 11R
@ 7.09"

DN 21R
@ 7.71"

W.I.C.

45'-0"

KITCHEN

72" X 36"
SHOWER

CL

DN 13R
@ 7.31"

DN
DN 9R
@ 7.39"

UP 6R
@ 7.0"

DN 12R
@ 7.5"

MASTER
BATHROOM

LAUNDRY

60" VANITY

DN

48" VANITY

LC

SUMP

UP 21R
@ 7.71"

DN

CL

UP 13R
@ 7.31"

7'-6" x 5'-6"

UNFINISHED
STORAGE SPACE
LR/DR

FOYER - UNIT B

17'-10" x 9'-9"

FINISHED
BASEMENT
14'-9" x 17'-0"

MASTER BEDROOM

SUMP

17'-7" x 11'-6"

METER

OUTDOOR

UNIT A
ENTRY

UNIT B
ENTRY

13

FLOOR PLAN
Unit Type 2
ROOF LEVEL

FOURTH FLOOR

THIRD FLOOR
OUTDOOR

BEDROOM 2

BEDROOM 1

12'-0" x 13'-10"

12'-0" x 10'-0"

CL
LIVING ROOM
16'-4" x 18'-2"

BATH 1

CL
36" VANITY

BATH 2

DN 11R
@ 7.09"

LAUNDRY
24" DW

LC
DN 18R
@ 7.33"

HWH

W.I.C.

UP 18R
@ 7.33"

HVAC

UP 20R
@ 7.5"

8'-7" x 7'-0"
DN 20R
@ 7.5"

UP 6R
@ 7.0"

36" VANITY

36

72" X 36"
SHOWER

PILOT HOUSE

KITCHEN / DINING

GROUNDBREAKING

17'-10" x 24'-6"

MASTER BEDROOM

MASTER
BATHROOM

17'-0" x 11'-7"

60" VANITY

POWDER
ROOM

LUXURY
TOWNHOMES

SECOND FLOOR

BEDROOM 2

BEDROOM 1

14'-0" x 16'-3"

11'-9" x 16'-3"

FIRST FLOOR

BASEMENT

IN
PHILADELPHIAS

GARAGE

GARAGE

12'-2" x 18'-0"

12'-2" x 18'-0"

NORTHERN

CL

CL

CL

LIBERTIES

BATH 1

DN

HVAC

KITCHEN
11'-0" x 10'-0"

W.I.C.

24" DW

UP 13R
@ 7.31"

DN 6R
@ 7.0"

UP 12R
@ 7.5"

UP 11R
@ 7.09"

DN 21R
@ 7.71"

72" X 36"
SHOWER

CL

DN 13R
@ 7.31"

DN 9R
@ 7.39"

UP 6R
@ 7.0"

DN 12R
@ 7.5"

MASTER
BATHROOM

LAUNDRY

60" VANITY

DN

48" VANITY

LC

SUMP

UP 21R
@ 7.71"

DN

CL

UP 13R
@ 7.31"

7'-6" x 5'-7"

UNFINISHED
STORAGE SPACE
LR/DR

FOYER - UNIT B

17'-10" x 9'-9"

FINISHED
BASEMENT
14'-9" x 17'-0"

MASTER BEDROOM

SUMP

17'-7" x 11'-6"

METER

OUTDOOR

UNIT A
ENTRY

UNIT B
ENTRY

14

FLOOR PLAN
Unit Type 3
ROOF LEVEL

FOURTH FLOOR

THIRD FLOOR

OUTDOOR

CL

BEDROOM 2

BEDROOM 1

12'-0" x 13'-10"

10'-0" x 12'-0"

OFFICE
8'-0" x 6'-6"

LIVING ROOM
16'-4" x 18'-2"

BATH 1

CL
36" VANITY

BATH 2

DN 11R
@ 7.09"

LAUNDRY
24" DW

LC
DN 18R
@ 7.33"

HWH

W.I.C.

UP 18R
@ 7.33"

HVAC

UP 20R
@ 7.5"

8'-7" x 7'-0"
DN 20R
@ 7.5"

UP 6R
@ 7.0"

36" VANITY

36

72" X 36"
SHOWER

PILOT HOUSE

KITCHEN / DINING

GROUNDBREAKING

17'-9" x 24'-6"

MASTER BEDROOM

MASTER
BATHROOM

17'-0" x 11'-7"

60" VANITY

POWDER
ROOM

LUXURY
TOWNHOMES

SECOND FLOOR

FIRST FLOOR

BASEMENT

IN
PHILADELPHIAS

BEDROOM 1

BEDROOM 2

12'-7" x 16'-2"

13'-4" x 16'-2"

GARAGE

GARAGE

12'-2" x 18'-0"

12'-2" x 18'-0"

NORTHERN
LIBERTIES

48" VANITY

KITCHEN
11'-0" x 10'-0"

W.I.C.

24" DW

UP 13R
@ 7.31"

DN 6R
@ 7.0"

UP 12R
@ 7.5"

UP 11R
@ 7.09"

DN 21R
@ 7.71"

72" X 36"
SHOWER

CL

DN 13R
@ 7.31"

MASTER
BATHROOM

DN

HVAC

DN 9R
@ 7.39"

60" VANITY

LAUNDRY

DN 12R
@ 7.5"

UP 6R
@ 7.0"

DN

BATH 1

SUMP

UP 21R
@ 7.71"

DN

CL

UP 13R
@ 7.31"

7'-6" x 5'-6"

UNFINISHED
STORAGE SPACE
LR/DR

MASTER BEDROOM

FOYER - UNIT B

17'-10" x 9'-9"

FINISHED
BASEMENT
14'-9" x 17'-0"

17'-10" x 11'-6"

SUMP

METER

OUTDOOR

UNIT A
ENTRY

UNIT B
ENTRY

15

FLOOR PLAN
Unit Type 4
ROOF LEVEL

FOURTH FLOOR

THIRD FLOOR

OUTDOOR
BEDROOM 2

BEDROOM 1

12'-0" x 13'-10"

12'-0" x 10'-0"

OFFICE
8'-0" x 7'-0"

CL
LIVING ROOM
16'-4" x 18'-2"

BATH 1

CL
36" VANITY

BATH 2

DN 11R
@ 7.09"

LAUNDRY

36" VANITY

ROOF DECK

UP 6R
@ 7.0"

24" DW

17'-8" x 30'-8"

LC
DN 18R
@ 7.33"

HWH

W.I.C.

UP 18R
@ 7.33"

DN 20R
@ 7.5"

HVAC

UP 20R
@ 7.5"

8'-7" x 7'-0"

36

72" X 36"
SHOWER

PILOT HOUSE

KITCHEN / DINING

GROUNDBREAKING

17'-10" x 24'-6"

MASTER BEDROOM

MASTER
BATHROOM

17'-0" x 11'-7"

60" VANITY

POWDER
ROOM

LUXURY
TOWNHOMES

SECOND FLOOR

FIRST FLOOR

IN

BASEMENT

PHILADELPHIAS
BEDROOM 1
10'-0" x 12'-0"

BEDROOM 2

GARAGE

GARAGE

12'-2" x 18'-0"

12'-2" x 18'-0"

UNEXCAVATED

UNEXCAVATED

NORTHERN

12'-0" x 12'-0"

CL

LIBERTIES

BATH 1

DN

HVAC

KITCHEN
11'-0" x 10'-0"

W.I.C.

24" DW

UP 13R
@ 7.31"

DN 6R
@ 7.0"

UP 12R
@ 7.5"

UP 11R
@ 7.09"

DN 21R
@ 7.71"

72" X 36"
SHOWER

CL

DN 13R
@ 7.31"

DN 9R
@ 7.39"

UP 6R
@ 7.0"

DN 12R
@ 7.5"

MASTER
BATHROOM

LAUNDRY

60" VANITY

DN

48" VANITY

LC

SUMP

UP 21R
@ 7.71"

DN

CL

UP 13R
@ 7.31"

7'-6" x 5'-6"

FINISHED BASEMENT
13'-8" x 21'-2"

UNFINISHED
STORAGE SPACE

FOYER - UNIT B

LR/DR
16'-0" x 12'-0"

MASTER BEDROOM

SUMP

17'-7" x 11'-6"

METER

OUTDOOR

UNIT A
ENTRY

UNIT B
ENTRY

16

FLOOR PLAN
Unit Type 4A
ROOF LEVEL

FOURTH FLOOR

THIRD FLOOR

OUTDOOR
BEDROOM 2

BEDROOM 1

12'-0" x 13'-10"

12'-0" x 10'-0"

OFFICE
8'-0" x 7'-0"

CL
LIVING ROOM
16'-4" x 18'-2"

BATH 1

CL
36" VANITY

BATH 2

DN 11R
@ 7.09"

LAUNDRY

36" VANITY

ROOF DECK

UP 6R
@ 7.0"

24" DW

17'-8" x 30'-8"

LC
DN 18R
@ 7.33"

HWH

W.I.C.

UP 18R
@ 7.33"

DN 20R
@ 7.5"

HVAC

UP 20R
@ 7.5"

8'-7" x 7'-0"

36

72" X 36"
SHOWER

PILOT HOUSE

KITCHEN / DINING

GROUNDBREAKING

17'-10" x 24'-6"

MASTER BEDROOM

MASTER
BATHROOM

17'-0" x 11'-7"

60" VANITY

POWDER
ROOM

LUXURY
TOWNHOMES

SECOND FLOOR

FIRST FLOOR

IN

BASEMENT

PHILADELPHIAS
BEDROOM 1
10'-0" x 12'-0"

BEDROOM 2

GARAGE

GARAGE

12'-2" x 18'-0"

12'-2" x 18'-0"

UNEXCAVATED

UNEXCAVATED

NORTHERN

12'-0" x 12'-0"

CL

LIBERTIES

BATH 1

DN

HVAC

KITCHEN
11'-0" x 10'-0"

W.I.C.

24" DW

UP 13R
@ 7.31"

DN 6R
@ 7.0"

UP 12R
@ 7.5"

UP 11R
@ 7.09"

DN 21R
@ 7.71"

72" X 36"
SHOWER

CL

DN 13R
@ 7.31"

DN 9R
@ 7.39"

UP 6R
@ 7.0"

DN 12R
@ 7.5"

MASTER
BATHROOM

LAUNDRY

60" VANITY

DN

48" VANITY

LC

SUMP

UP 21R
@ 7.71"

DN

CL

UP 13R
@ 7.31"

7'-6" x 5'-6"

FINISHED BASEMENT
13'-8" x 21'-2"

UNFINISHED
STORAGE SPACE

FOYER - UNIT B

LR/DR
16'-0" x 12'-0"

MASTER BEDROOM

SUMP

17'-7" x 11'-6"

METER

OUTDOOR

UNIT A
ENTRY

UNIT B
ENTRY

17

BUILDING SPECIFICATIONS
Overall
Standard Building Specifications
Up to 5,900 SF of living space (including basement)
Water tight 9 high concrete walls in basement
Brick faade with metal, cement board, wood, or stucco siding
O street parking (see site plan if appliacble)
Fiberglass roof deck and 100+ SF pilot house suite
(see site plan if applicable)
3+ Bedrooms
Minimum 2.5 Bathrooms
Upper floor laundry room (if permits)
Finished basement/ media room (if no garage)
Energy ecient dual zone hvac systems
Wood stairs with stained risers and treads
10 Year tax abatement pending

Hvac
Dual zone hvac
Duct-work and exterior venting for bathroom exhaust fans
Duct-work & exterior venting for dryer venting provided

Drywall and paint

5/8 gypsum wallboard on all locations
Double 5/8 drywall in garage
All drywall, trim, baseboard, casing to be painted with low VOC paint.
All white paint throughout

Foundation
Concrete foundations, cast-in-place basement walls and basement slab
Footings and foundation walls built with reinforced bars (rebar)
Continuous vapor barrier under basement slab
Waterproof coating applied to foundation walls
Sump pump & pit in basement with french drain around perimeter
of basement

Electrical
200 amp electrical service
Decora outlets and switches per code
Recessed lights throughout
Smoke detectors & carbon monoxide detectors hard-wired per code
Recessed lights throughout - 6 in main house & bedrooms,
low voltage in bathrooms
Most closets lighted
Exhaust fans in each bathroom
Lighting package provided on roof & exterior

Exterior siding
Flashings and caulking as necessary to provide water-tight system
Brick faade with metal, cement board, wood, or stucco siding
All exterior wall surfaces shall receive home wrap

Insulation
Exterior walls on 2nd & 3rd floor - R19
Exterior walls on ground floor - R19
Roof insulation - R38

36
GROUNDBREAKING
LUXURY
TOWNHOMES
IN
PHILADELPHIAS
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Windows
Vinyl Jeld-Wen or equal

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BUILDING SPECIFICATIONS
Overall continued
Plumbing
Kohler toilets, tubs, and bath fixtures Grohe bath fixtures and faucets
Gas HVAC system, hot water heater, dryer and oven
Public water/sewer service
Drain, waste and vent piping
Sump pump
75 gallon Bradford White gas hotwater heater
Garbage disposal on all kitchen sinks
Cast iron waste lines
PEX water system
French drain in basement

Finish carpentry
5 1/4 flatstock baseboards
3 1/2 flatstock door and window casing
Fully enclosed stairs, hardwood treads and risers
Modern style, brushed nickel lever handles and locksets

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Roofing
Fiberglass roofing
Aluminum flashings, roof edging, gutters and downspouts as required

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Rough carpentry
2 X 12 or TGI wood joists for floor framing and roof framing
Advantec sub-flooring shall be 3/4 tongue and groove
Zip Wall system (or similar material) sheathing on exterior walls
Sub-flooring shall be glued to floor trusses with low voc adhesive
Demising partitions shall be 2 x 6 wood studs, 16 on center with 5/8
Zip Wall system on the exterior surface and 5/8 drywall on the interior
Front and rear exterior partition walls shall be 2 x 6 wood studs,
16 on center
Interior partition walls shall be 2 x 4 wood studs, 16 on center

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Typical Ground Floor

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BUILDING SPECIFICATIONS
Kitchen & Living Rooms
Living Room
4-5 x 1/2 engineered Flooring
9 0+ ceilings
Phone, cable and internet ready
5 1/4 baseboard moulding
Recessed lights (6)

Kitchen
Granite or manufactured quartz counters
Stainless steel appliances - Bosch appliance package
3/4 HP garbage disposal
Recessed lights (6)
Ultra Craft custom cabinetry with self close draws and contemporary
stainless hardware
5 1/4 baseboard moulding
9 0 + ceilings
4-5 X 1/2 engineered flooring
Tile backsplash

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Powder room
Tiled floors
Mirror over vanity
Ceiling exhaust fan

Dining room
4-5 X 1/2 engineered flooring
9 0+ ceilings
5 1/4 baseboard moulding
Recessed lights (6)
Ceiling pendant light junction box

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BUILDING SPECIFICATIONS
Secondary Bedroom Levels
Hallway
4-5 X 1/2 engineered flooring
5 1/4 baseboard moulding
8 0+ ceilings
Recessed lights (6)
Laundry/ mechanical room
Full sized washer/ dryer units - front or top loading
Tile flooring and baseboards (4 high)
Recessed lights (6)
Custom cabinetry where applicable
Bedroom #1 - front
4-5 X 1/2 engineered flooring
8.5+-0 ceilings
Walk in closet with white laminate shelving and lighting
Phone, cable and internet ready
Recessed lights (6)
Ceiling fan junction box

Bedroom #2 rear
4-5 X 1/2 engineered flooring
8.5 + ceilings
Walk in closet with white laminate shelving and lighting
Phone, cable and internet ready
Recessed lights (6)
Ceiling fan junction box
Full bathroom including:
Ultra Craft custom cabinetry with self close draws and contemporary
stainless hardware w/ marble or quartz tops
Tiled floors and baseboard (4 high)
5 drop in tub with tile to ceiling or shower
Mirror over vanity (or medicine cabinet)
Ceiling exhaust fan (panasonic or equal ultra quiet)
Recessed lighting
Linen closet
White laminate shelving

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GROUNDBREAKING
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IN

Full bathroom including:

Ultra Craft custom cabinetry with self close draws and contemporary
stainless hardware w/ marble or quartz tops
Tiled floors and baseboard (4 high)
5 drop in tub with tile to ceiling
Mirror over vanity (or medicine cabinet)
Ceiling exhaust fan (panasonic or equal ultra quiet)
Recessed lighting

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Typical Second Floor

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BUILDING SPECIFICATIONS
Master Bedroom Level
Master Bathroom
Ultra Craft custom cabinetry with self close draws and contemporary
stainless hardware w/ marble or quartz tops
9 + ceilings
Ceiling exhaust fan
Custom tile shower with frameless glass enclosure
Overhead rain shower, ceiling & handheld shower heads
Mirrors over vanities (or medicine cabinet)
6 recessed lighting

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Hallway
4-5 X 1/2 engineered flooring
5 1/4 baseboard moulding
9+ ceilings
Recessed lights (6)

Linen closet
White laminate shelving

Master bedroom
4-5 X 1/2 engineered flooring
5 1/4 baseboard moulding
9+ ceilings
Up to 2 walk-in closets with built in shelving system - white
(if layout permits)
Phone, cable and internet ready
Recessed lights (6)
Junction box for ceiling fan

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Typical Fourth Floor

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BUILDING SPECIFICATIONS
Roof Deck
Roof Deck
Fiberglass roof deck
Hose bib (frost free)
Surface mount light fixtures

Storage Closet (If layout permits)

White laminate shelving

Pilot House Suite

100+ SF
Ultra Craft custom cabinetry with self close draws and contemporary
stainless hardware w/ marble or quartz tops
Beverage center or wine cooler
Prep sink
Recessed lights (6)
5 1/4 baseboard moulding
4-5 X 1/2 engineered flooring
Tile backsplash
Powder Room
Tiled floors
Mirror over vanity
Ceiling exhaust fan

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GROUNDBREAKING
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Typical Roof Deck Suite

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Basement

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Basement - Main Room/ Media Room

Fully carpeted or tiled
Phone, cable and internet ready
5 1/4 baseboard moulding
Powder Room (If applicable)
Porcelain tile flooring and baseboards (4 high)
Mirror over sink
Ceiling exhaust fan (panasonic or equal ultra quiet)
Single vanity with granite or quartz countertop
Typical Basement

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AREA
OVERVIEW

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PHILADELPHIA
The 6th Largest Metropolitan Area in the United States
Philadelphia is the largest city in the Commonwealth of Pennsylvania and the fourth largest metropolitan area in the United States
with over eight million residents. As the second most powerful city on the East Coast after New York, Philadelphia serves as the
business capital of Pennsylvania and one of the most important economic andcultural hubs in the country. The City is ideally
situated 100 miles from New York City and 140 miles from Washington, DC, strategically located in the epicenter of the wealthiest
corridor in the United States.

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AREA OVERVIEW
Northern Liberties, formerly known as a red-light district," is a neighborhood in Central Philadelphia. The neighborhood extends
from Girard Avenue to Callowhill Street and from North 6th Street to the banks of the Delaware River. Northern Liberties was in
existence long before the city of Philadelphia had even been established. Its name comes from Northern Liberties Township, which
appeared in local legislature from the 1770s. By 1854, it was annexed to the district of Philadelphia, allowing Philadelphia to surpass
Baltimore as the second largest city in the United States. Being located outside of the bustling city allowed Northern Liberties to
thrive industrially. Many manufacturing mills, factories, and plants produced the tools and commodities needed within the city. By
the 19th century, many Immigrants began to populate this area. Their heritage can still be seen today in the areas numerous and

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highly varied churches. In 1985, the area was declared as a historic district that is now dedicated to preserving the Italianate, Greek
Revival, and Federal style buildings that characterize the area. Today Northern Liberties is a beautiful community with close to 4,500
residents and known for its eclectic collection of restaurants, shops, and art galleries.

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NORTHERN LIBERTIES
Neighborhood Boundaries

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Subject Property
ORTLIEB SQUARE

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PHILADELPHIA
Diversified Economy
Philadelphias economy has undergone a dramatic transformation

The citys large and diversified economy has helped generate

from its traditionalmanufacturing base to one driven by a variety

a GMP of $364 billion, oneof the highest in the United States.

of industries, with a special emphasis on the healthcare and

As of August 2014, the Philadelphia Metropolitan Areas

higher education sectors. Philadelphia is home to 98 hospitals

unemployment rate stood at 6.7%, lower than major U.S. cities

and more than 90 institutions of higher education, which

such as Atlanta, Chicago, and LosAngeles. More recently,

employed more than 580,000 highly educated professionals

Philadelphias fast-growing biomedical and pharmaceutical

across the region. The Philadelphia Metropolitan Area is

industrieshave brought 14 major pharmaceutical firms and

also home to nine Fortune500 companies, including

nearly 100 biotech firms to the area. Eight of theworlds largest

AmerisourceBergen, Aramark, Campbell Soup Company,

pharmaceutical companies are located within a 50-mile radius

Comcast,Crown Holdings, E.I. du Pont de Nemours, and Lincoln

of Philadelphia, including AstraZeneca, Bristol-Myers Squibb,

National, among others. In 2013, thesenine companies generated

GlaxoSmithKline, Janssen Biotech, Merck, and Novo Nordisk.

in excess of $249 billion in annual revenues, representing nearly

Philadelphia is also one of the top 15 markets in the U.S. for

67%of the Philadelphia Metropolitan Areas gross metropolitan

venture capital investment with nearly $350 million of

product (GMP).

committed capital across 105 dierent investments.

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PHILADELPHIA
Diversified Economy
Within a 5-hour drive of 25% of the U.S. population
State-of-the-art international airport within a two-hour flight of half of the U.S. population

Amtraks 30th Street Station serves nearly 4.2 million riders per year and oers high-speed trains to New York, Washington, DC,
and Boston

SEPTA has the 6th largest rapid transit system by ridership in the country

Home to 98 hospitals and over 90 institutions of higher education

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Headquarters of 9 Fortune 500 Companies with revenue of over $249 billion

CHOP expected to add ~500 full-time doctors, researchers and other employees

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Penn Health gearing up for $1.5 billion hospital expansion, nearly doubling bed count

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PHILADELPHIA
Home to the Nations Leading Universities
Philadelphias educational leadership began in 1740 with the founding of
one of the countrys first universities, the Ivy League, world-class University
of Pennsylvania. Over 250 years later, the region is home to leading
universities specializing in biotechnology, business, finance, medicine,
and technology, which produce highly skilled graduates that continue to
stimulate Philadelphias economy. Philadelphia is also home to five nationally
recognized schools of medicine, including Drexel University College of
Medicine, Philadelphia College of Osteopathic Medicine, Temple University
School of Medicine, Jeerson Medical College, and the Perelman School of
Medicine at the University of Pennsylvania.

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Second highest number of four-year colleges in the country after

New York, with more than 90 degree-granting institutions

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The second largest student population of any city on the East Coast,
with approximately 368,000 students and more than 66,000 graduates
each year
Highly educated workforce with more than 75% of Center City residents

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holding at least a Bachelors degree

Drexel University strategic plan to increase student population by 10,405
students by 2021 and full time employees by 4,119 during same period.
32,000 students downtown with an additional 54,000 across the Schuylkill
River in University City

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CENTER CITY
Impressive Population Growth
Center City has experienced the largest and most geographically

trac counts in the city( approximately 23,000 people per day),

concentrated growth in Philadelphia.Since 2000, the Center City

and is especially pedestrian-oriented.

core population has grown by more than 24% driven by a persistent migrationof young, urban professionals seeking to live in

Over 61% and 63% of residents in a one-mile radius of

an amenity-rich, urban mixed-use environment.By comparison,

Walnut and Chestnut, respectively, take alternative means

the core Center City population growth since 2000 has exceeded

of transportation to work, far exceeding the national

that of major cities,including Boston (7.5%), San Francisco (6.2%),

average of 19%.

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and New York (5.4%). Center City has one of the highest concentrations of residents with post-secondary education in the United

This trend is being further encouraged by the City of Philadelphia,

States: in 2000, nearly 68% ofCenter Citys residents held at least

which is revealing a new Bike Shareprogram this fall. With an

a Bachelors Degree. By 2013, the figure had grown to more than

initial rollout of 150 to 200 stations and over 2,000 bikes to be

75%.This incredible population growth, particularly among

spread acrossthe city over the next year, anticipated ridership is

educated residents, has contributed to a boom inmultifamily

around 500,000 trips annually by 2015, with localuse anticipated

deliveries. Since 2000, approximately 2,100 multifamily units

to surpass 2.5 million trips per year over the first six years of

have been delivered in Center City.

operations. The growingrole of bicycles in Philadelphia will

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increase the dynamism and connectivity of the market,

As the third largest downtown population in the US (behind NYC

significantlyexpanding the pedestrian count in Rittenhouse

and Chicago), Philadelphia is ranked asone of the most walkable

Square and Society Hill.

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/ bikeable city in America. The Center City neighborhood epitomizes

this trend(scoring 98 for each) reflecting the new generation of
renters favoring walkable, urban neighborhoods.Within Philadelphia,
Rittenhouse Square boasts the highest pedestrian

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CENTER CITY
By the Numbers
288,500 jobs, or 44% of Philadelphias total workforce, with a total purchasing power of $13 billion

Most diversified workforce in the region with the oce sector generating 31% of all jobs

305,000 daily commuters with SE PTA recording a 10.2% and 13.1% increase for subway and bus routes, respectively,
into downtown over the last decade

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409 cultural institutions as well as 14 colleges / universities and 5 hospitals

GROUNDBREAKING
2nd nationally behind only Manhattan in the number of downtown art and cultural institutions

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More than 3,200 retail establishments, 11,300 hotel rooms, and 37.5 million square feet of Class A oce space

IN
24.2% population growth from 2000 to 2013

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The adjacent University City is one of the nations preeminent education, health, and R&D nodes with UPenn, Drexel, and CHOP,
creating a significant opportunity for Philadelphias two largest employment centers to further integrate and drive growth for the

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region

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THE COMCAST INNOVATION AND TECHNOLOGY CENTER

A Key Center City Growth Driver
Comcast has broken ground on a $1.2 billion (or $800 PSF), 1,121-foot
skyscraper at 1800 Arch Street in late 2014. Designed by world-renowned
architect Lord Norman Foster, Comcasts new tower will become the tallest
building in the city and will accommodate the companys rapid growth, as
Comcast expects to add approximately 3,000 employees from around the
country. The project is expected to create 6,300 temporary construction
related jobs and an additional 14,400 jobs in Pennsylvania, and bring an

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abundance of talent to the region, making Philadelphia a central hub for

broadcasting and technology.

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Ortlieb Square is ideally positioned to benefit from the delivery of the

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The Comcast Innovation and Technology Center. Even though Ortlieb

Square is located a to the northeast, it will be a unique residential
alternative to capture Comcast-related residential growth, while providing
a contrasting historical aesthetic to the ultra-modern and high-tech vertical

IN
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oce campus.

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COMPARABLE
PROPERTIES

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COMPARABLE PROPERTIES

Subject Property
ORTLIEB SQUARE

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GROUNDBREAKING
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322 Brown Street

444 Fairmount Avenue

718 N. 4th Street

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310 Fairmount Avenue

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COMPARABLE PROPERTIES
Comparable Sale # 1
322 Brown Street, Unit A, Philadelphia, PA
Sale Date: 12/05/2014

Sale Price: $835,000

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Comparable Sale # 2
718 N. 4th Street, Philadelphia, PA
Sale Date: 12/03/2014

Sale Price: $750,000

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COMPARABLE PROPERTIES
Comparable Sale # 3
310 Fairmount Avenue, Philadelphia, PA
Sale Date: 07/29/2014

Sale Price: $749,900

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GROUNDBREAKING
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Comparable Sale # 4
444 Fairmount Avenue, Unit C, Philadelphia, PA
Sale Date: 06/25/2014

Sale Price: $729,000

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THE
MARKET

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PHILLY HITS SWEET SPOT IN OFFICE SPACE DEMAND

By Angelly Carrion | October 22, 2014 | http://www.phillymag.com

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In recent weeks, weve been covering news of Phillys flourishing
housing boom and rising home values. Now, we might soon add
oce properties to that increase: Finance & Commerce reports
the city has hit a sweet spot in oce demand with sales doubling
to $1.4 billion:
Real estate values approaching or surpassing peak levels
in New York, Boston and Washington have buyers turning
to Philadelphia for its higher yields, rising rents and falling
vacancies. Thats bolstering oce deals in the fifth-largest
U.S. city at a time when Manhattan-like towers have
opened with luxury condominiums and cable operator
Comcast Corp. is developing a skyscraper that will be the
areas tallest.
The website adds that this boom in demand could be part of larger
Philadelphia renaissance attributed to local university graduates
sticking around instead of leaving for jobs in other cities, as
Bob Walters, CBRE Groups executive managing director, put it.

Photo credit: Dominic Lacivita via Flickr.

A recent study by City Observatory backs this idea with

findings that show young college grads spur on economic
and neighborhood revitalization.
As a result of all this, real estate investors growing
interest has prompted landlords to cash out:
About $400 million of oce buildings are for sale within a
four-block radius in the Market Street West district of
downtown that is being marketed by Jones Lang LaSalle,
said Doug Rodio, a broker at the company.

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OIL, NATURAL GAS SURGE MAKES PHILADELPHIA

THE NEW ENERGY HOTSPOT
Tom DiChristopher | Javier E. David | November 16, 2014 | http://www.cnbc.com
The city best known for Rocky, cheese steaks and sharp-elbowed
sports fans is developing a new reputation as a nexus of oil and
gas transportation, which bodes well for its economy.
With little fanfare, Philadelphia is undergoing a revolution powered
by the U.S. energy renaissance. Renewed investment and activity
in the regions sprawling railway network and aging infrastructure
is turning the City of Brotherly Love into a potential energy hub
that some believe can rival Houston.
Energy experts cite two major factors working in Phillys favor:
its proximity to the booming Marcellus Shale, where 5,400 shale
wells churned out nearly 2 trillion cubic feet of natural gas during
the first six months of the year; and the citys bustling commercial
railroad system, which has made it a transit point for oil being
shipped from North Dakotas Bakken formation.
Along the Northeast corridor, there are maybe six distribution
pipeline proposals for natural gas, said Vincent Devito, a law
partner at Boston-based Bowditch & Dewey. A lot is intended for
exports and the quickest and easiest way is through Philadelphias
infrastructure.
Devito, a former Department of Energy ocial, said the city is
already a draw for gas and energy related businesses that like
to be close to the pipeline for easy access, he said. Philly is in a
fortunate spot because they are part of the Northeast corridor,
theres a lot of business and remarkable opportunities for
business and economic development.

With the U.S. experiencing an embarrassment of fossil fuel riches,

Sunoco and other companies are channeling billions into pipeline
investment across the country. As local rail companies like Monroe
Energy negotiate for increased access to Bakken crude, Philadelphia
is one of several regions that stands to benefit from the influx of
oil and gas.
Philly has physical infrastructure, land and access to export
markets, or you can transport [natural gas] to other markets in the
U.S., said Adam Karpf, a portfolio manager at Atlantic Trust, which
has $24 billion in assets under management.
The new Houston?

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Most recently, Philadelphias profile in the energy sector got a

large boost from Sunoco Logistics Partners, a pipeline investment
vehicle that announced it would construct a $2.5 billion pipeline
from the Marcellus into Philly. The new pipeline will complement
an existing gas artery that may hike the regions natural gas
transport by fourfold.

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OIL, NATURAL GAS SURGE MAKES PHILADELPHIA

THE NEW ENERGY HOTSPOT
Tom DiChristopher | Javier E. David | November 16, 2014 | http://www.cnbc.com
Once its up and running, Sunoco Limiteds pipeline will funnel
nearly 300,000 barrels per day of natural gas liquids (NGL) to
Philadelphias Marcus Hook Industrial Complex.
The city is not what most would normally consider an energy hub.
Traditionally, oil and gas production has taken place in locations
further south, like Houston and New Orleans.
However, the U.S. energy boom has upended many of those assumptions, transforming unlikely cities into hubs of fossil fuel
production. Combined with a set of refineries that are being
retrofitted for natgas purposes, Philadelphia could eventually rival
energy powerhouses in Texas and Louisiana, some energy watchers say.
Houston is not as close to the demand centers as Philadelphia
is. The East Coast is an amazing engine of demand, said Michael
Krancer, chair of the energy industry practice at Blank Rome law
firm.

The citys 8.4 percent unemployment rate is well above the national
average, and even above Pennsylvanias. Many of the cities and
states that are ground zero for shale production have seen jobless
rates plummet. For that reason, energy watchers are reasonably
optimistic that Philly can see some of the same magic other oil and
gas producing regions have experienced through the shale boom.
Energy development in the region can help stem a brain drain of
educated professionals out of the area, Krancer added.
The potential is even greater than Houston, he said. The parts
of the state that are benefiting the most from this are the parts of
the state that have been economically challenged for a generation
or two.

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THE $10 MILLION HOME, NEVER HOTTER

By Jonathan J. Miller | November 26, 2014 | http://www.bloombergview.com

As the U.S. housing market cools from last years overheated state,
sales of homes at the top havent been following the same script.
Prices and sales at the upper reaches are soaring.
Sales of homes in Southern California costing $2 million and more
are at record levels. Sales of homes costing more than $10 million
in Los Angeles are up almost 400 percent since 2007. In Miami,
luxury home sales are roughly double 2007 totals.

Buyers of expensive homes, many flush with stock market gains

and benefiting from a rebounding economy, have been using cash
to sidestep tight mortgage-lending conditions. Foreign buyers
have
continued to view U.S. real estate as a haven, also using cash to
snap up luxury real estate.
But the rise in high-end sales isnt just a cash phenomenon. Low
mortgage rates are crucial because the well-o tend to have good
credit records and can secure loan approval.

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Although New Yorks high-end real estate prices have been setting
records too, their sales havent jumped as in other markets largely
because the 2007 volume and prices were already so high as a
result of record Wall Street bonuses.

GROUNDBREAKING

Unless economic and credit conditions improve a lot, I expect

continued and disproportionate strength at the top of the housing
market.

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IS PHILADELPHIA IN A HOUSING BUBBLE?

By Emma Jacobs | Next City | October 6, 2014

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One morning in August, Philadelphias deputy mayor for economic
development, Alan Greenberger, was headed to the groundbreaking
for a new mixed-use complex near the citys Art Museum. The
project will include nearly 300 luxury apartments and a Whole
Foods. On his way there, he stopped at the construction site for
a luxury apartment building on a busy central corridor, Chestnut
Street.
Greenberger had come to take part in an announcement with the
Associated General Contractors of America, who had just ranked
Philadelphia metro region number three in the number of
construction jobs added.
Ive been here now, this September, this will be my 40th year in
Philadelphia, he told assembled architects and dignitaries. He said
hed been discussing this the day before with a local developer.
Neither of us can remember, in our lifetimes in this city, a
construction boom of this magnitude.
A whole lot of those workers are building housing.

Construction job numbers have been rising in about two-thirds of

U.S. metro areas tracked by the general contractors association
over the past year, and most of the top regions are located in
southern states with housing a major driver throughout the
country. In 2012, Philadelphias Center City District (CCD), an
economic development non-profit, calculated that developers
had completed 463 residential units in central Philadelphia. In
2014, the CCD estimated, that number could soar to 2,600. Most
of it will be luxury and mid-market housing, with monthly rents
above the citys average.

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Whos Moving to Center City Philadelphia?

The short version: Most of the people who will occupy these new
homes and apartments will fall into two growing Philadelphia
demographics. Theyre the young and employed, and those
nearing or over retirement age.
The urban aspirations of young professionals and empty
nesters, isnt stu we talk about generally, this is a very
specific relationship, Greenberger told me recently. Young
people in particular, specifically specifically those 25 to 34, he

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IS PHILADELPHIA IN A HOUSING BUBBLE?

By Emma Jacobs | Next City | October 6, 2014
says, want to be here because they can the live city life they want,
can get to work, and its more aordable than other cities.
An upscale housing market driven by millennials may sound
counterintuitive. After all, headlines about the generations
struggles abound. However, Steve Mullin says that in a metro
region with six million residents, it doesnt take too many people
changing their behavior to result in market shifts. That is to say,
the suburbs dont have to empty out for the city to require new
housing. Mullin, president of Econsult Solutions, adds that for 50
years, Philadelphia basically had no new, quality housing.
Normally, he says, people move into more expensive housing
as their income improves, freeing up better housing to the next
income level until structures in the worst condition get demolished,
and he didnt see that happening in Philadelphia, for years.
Whats going on in Center City is causing it to expand outward,
says Victor Pinckney, vice president of the Homeowners
Association of Philadelphia. Hes focused on rehabbing homes
in Philadelphia neighborhoods north and northwest of Center
City.
Banks are lending again, he says. Two years ago, three, I tried to
do a refinance and it wasnt going nowhere. A year and a half later
they were trying to throw money at me. Nothing had changed on
my end.
Will the Market Break?
Mullin thinks Philadelphians are natural pessimists about their
long-suering economy. Its a very Philadelphia thing to say,
how can we support two water ice stands?

Boom cycles end, he acknowledges, but do they just sort of

retreat back to some sort of manageable level or do they bust? In
this case, he thinks the strength of the citys other sectors make it
unlikely the floor would fall out of the housing market.
Brad Doremus of realty data tracking firm Reis says the metros
vacancy rate fell from 4.4 percent at the close of 2011 to 3.3
percent as of mid-2014, and the market seems ready to absorb
new units through the end of the year.
Past 2014, new construction is projected to outpace net absorption
on an annual basis for a few years, he added, but, this is not a big
worry the markets long-term average vacancy (since 1980) is
around 4.6 percent so it isnt a surprise that it would begin slowly
moving up again.
When the CCD presented its figures in March, President Paul Levy
identified two potential market constraints: the Philadelphia school
districts funding crisis and the pace of job growth.
To the extent that people are unsure about schools in every
neighborhood, thats going to limit peoples willingness to stay or
buy homes within the city, he says.
In an update two weeks ago, he told me, Every indicator we have
seen, as well as discussions with lenders and developers, suggests
that the demand remains strong for the new units that are coming
on line.

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Greenberger notes theres some natural anxiety that comes with a

construction boom.

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PHILADELPHIA OFFICE SALES DOUBLE AS INVESTORS

SEEK YIELDS
By Brian Louis | Bloomberg | October 20, 2014
The City of Brotherly Love is finally getting some aection from
commercial real estate investors.
Philadelphia, where oce properties last year attracted about half
the investment of Washington and less than a 10th of Manhattans
total, is seeing a boom in demand that has sent the average price
per square foot to a record. Oce sales in the first half of this year
more than doubled to $1.4 billion, the highest since close to the
markets peak in 2006, according to New York-based research firm
Real Capital Analytics Inc.
Real estate values approaching or surpassing peak levels in New
York, Boston and Washington have buyers turning to Philadelphia for its higher yields, rising rents and falling vacancies. Thats
bolstering oce deals in the fifth-largest U.S. city at a time when
Manhattan-like towers have opened with luxury condominiums
and cable operator Comcast Corp. is developing a skyscraper that
will be the areas tallest.
We view Philadelphia as really on the upswing, said Gerard
Sweeney, chief executive ocer of Brandywine Realty Trust (BDN),
which owns 13 properties in the citys main business district, including one under development. Theres certainly an expectation
that rents will continue to move up.
The average capitalization rate -- a measure of yield that moves inversely to price -- for a Philadelphia oce building was 7.5 percent
in the second quarter, according to data compiled by Real Capital.
While thats down from a high of 8.9 percent two years earlier, its
more than the averages of 4.6 percent in Manhattan, 6.1 percent
in Washington and 6.5 percent in Boston, the data show.
Bigger Neighbors
The average price per square foot of a Philadelphia oce building reached $283 in the first quarter, the highest in Real Capital
records dating to 2001.

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Photographer: Bradley C. Bower/Bloomberg

Philadelphia has long been overshadowed by its big-city East Coast

neighbors to the north and south. Institutional investors such as
sovereign-wealth funds gravitate to the perceived safety of New
York or Washington, where rents frequently climb faster and values rebounded first in the recovery.
Unlike New York, with its heavy concentration of financial, media
and technology tenants, and Washington, with its work force tied
to the federal government, Philadelphia doesnt have a single large
oce-tenant base. Government, universities and hospitals are
among the biggest employers in Philadelphia County, according to
the
Pennsylvania Department of Labor & Industry.

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The largest public companies by market value with headquarters

in the city are Comcast; oil pipeline operator Sunoco Logistics
Partners LP; and FMC Corp., a research company in the chemical
industry, according to data compiled by Bloomberg.

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PHILADELPHIA OFFICE SALES DOUBLE AS INVESTORS

SEEK YIELDS
By Brian Louis | Bloomberg | October 20, 2014
Mispriced Oces
Keystone Property Group, a Bala Cynwyd, Pennsylvania-based
company with about 30 properties in the region, has purchased
about 5 million square feet (465,000 square meters) in the area
in the past couple of years. While investors were seeking to put
money in apartment buildings locally and around the country, the
company invested in oce properties, said Bill Glazer, president
and chief executive ocer of the closely held landlord and
developer.
What we had seen over the past couple of years was a mispricing
in the oce space, Glazer said in a telephone interview. It seems
that the rest of the capital markets now are seeing what we saw
over the past couple of years.
Philadelphia Renaissance
More restaurants are opening and graduates of local universities
are sticking around instead of leaving for jobs in other cities, said
Bob Walters, an executive managing director at CBRE Group Inc. in
Philadelphia. Stuart Weitzman, Swarovski and Ulta boutiques have
opened stores in the area around Rittenhouse Square in Center
City in Philadelphia. Luxury housing has risen in the area, including
10 Rittenhouse Square, which has a Mercedes Benz car and driver
and a pool and a wine storage room.
Other retail businesses are also entering the market. Century 21 is
opening a store in the Market East area of Center City on Oct. 28
and there has been new construction of apartment buildings and
loft conversions.

venture that paid $125 million in June for Curtis Center, an

885,000-square-foot oce and retail building that overlooks
Independence Hall and Washington Square Park downtown.
The investors plan to convert 90,000 square feet of the oce
space into luxury apartments.
Historical Building
Its such a spectacular, historic building, Glazer said. You could
never reinvent this location, this building, this opportunity.
Keystone also expects to begin construction on a $200 million
oce, hotel and retail project in the suburb of Conshohocken next
year.
New oce projects are under way in Philadelphia, including
Brandywines FMC Tower at Cira Centre South. The $385 million
building is the last phase of a 2.7 million-square-foot project along
the western bank of the Schuylkill River.
The 49-story tower will be anchored by the headquarters of FMC
Corp. The building will have 622,000 square feet of oce space
and 268 luxury apartments and a bar and restaurant, according to
a May 14 statement by Brandywine, based in Radnor, Pennsylvania.
Penns Hat

Its got a buzz, said Bill Lu, a senior managing director with
brokerage Colliers International. Were in a sweet spot.

Comcast, the largest U.S. cable company, is working with Malvern,

Pennsylvania-based Liberty Property Trust (LPT) to build a $933
million, 1,121-foot (342-meter) oce tower that is poised to be the
countrys tallest building outside of New York and Chicago. That estimated cost doesnt include tenant-funded interior improvements.
The 59-story tower on Arch Street will include 1.3 million square
feet of rentable oce space and a 222-room Four Seasons hotel.

Keystone and Edison, New Jersey-based Mack-Cali Realty Corp.

(CLI) are seeking to capitalize on that buzz through a joint

Comcast, whose headquarters is next to the planned building,

signed a 20-year lease for 74 percent of the oce space. The

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PHILADELPHIA OFFICE SALES DOUBLE AS INVESTORS

SEEK YIELDS
By Brian Louis | Bloomberg | October 20, 2014
development is scheduled to be completed in the first quarter of
2018.
A gentlemens agreement for decades discouraged construction
of buildings taller than William Penns hat atop Philadelphia City
Hall, which had been the citys tallest building, according to a city
of Philadelphia website. That pact was broken in 1987 with the
building of the 61-story One Liberty Place.
Not Much
New construction has stayed under control, helping to reduce
vacancies, said Ryan Severino, a senior economist at Reis Inc.
(REIS), a New York-based property research firm. Philadelphias
vacancy rate in the third quarter was 14.1 percent, compared with
a high of 15.4 percent in the third quarter of 2011, according to
Reis. While demand for oce space has improved in Philadelphia,
new building hasnt picked up that much, Severino said.
Theres been some construction, but not much, he said.
Eective rents, the amount paid after landlord discounts, climbed
1 percent in the Philadelphia metropolitan area to $20.50 a square
foot in the third quarter from a year earlier, according to data from
Reis.
Investors betting on fast-growing rents will probably be disappointed.
Oce demand isnt rising as fast as other areas of the country
such as northern California and Seattle, where a booming
technology industry is driving growth, Severino said.

Cashing Out
Leasing improvement in the city and increased investor interest
is prompting some landlords to cash out. About $400 million of
oce buildings are for sale within a four-block radius in the Market
Street West district of downtown that is being marketed by Jones
Lang LaSalle, said Doug Rodio, a broker at the company.
Each seller has dierent motivations, Rodio said. Not only is it a
good time to sell, its a great time to buy.
Demand for properties on the market should be good, Walters of
CBRE said. Investors are looking at Philadelphia as a safe, stable
place to make purchases, he said.
As you see more asset sales and a trend toward firming vacancy
rates and firming rental rates, youre seeing a lot more interest
from capital who is really starting to recognize that Philadelphia is
a phenomenal market to be an investor in, Glazer said.

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PHILLY HOUSING IS HAVING A GROWTH SPURT

By Angelly Carrion | October 27, 2014 | http://www.phillymag.com

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Photo credit: Flickr user Jeanette Runyon.

In a contributing article to Next City, Emma Jacobs reports that

Philadelphia could be in the midst of an unprecedented housing
boom. The growth spurt is evident throughout the city, which was
ranked in third place by the Associated General Contractors of
America in a list of metro regions who saw a rise in construction
jobs.
Neither of us can remember, in our lifetimes in this city, a
construction boom of this magnitude, said deputy mayor of
economic development Alan Greenberger during the
announcement.
According to Jacobs, the Center City District estimated that in
2012, developers had constructed 463 residential units in the
area. The CCD now predicts developers could build up to 2,600
residential units, most of which would be luxury and mid-market
housing, this year. Victory Pinckney of the Homeowners Association
of Philadelphia added that whats going on in Center City is causing
it to expand outward.

But how long could this housing bubble last? Heres more from
Next City:
[Steve] Mullin [of Econsult Solutions] thinks Philadelphians are
natural pessimists about their long-suering economy. Its a
very Philadelphia thing to say, how can we support two water
ice stands?
Boom cycles end, he acknowledges, but do they just sort
of retreat back to some sort of manageable level or do they
bust? In this case, he thinks the strength of the citys other
sectors make it unlikely the floor would fall out of the housing
market.

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Jacobs writes that realty tracking firm Reis says [e]very indicator
we have seen, as well as discussions with lenders and developers,
suggests that the demand remains strong for the new units that
are coming on line.

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INVESTMENT
REQUIREMENT

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EQUITY OVERVIEW
838-52 N. American Street @ 3rd Street, Philadelphia, PA 19123

Units B: 2, 4, 6, 8, 10, 12, 14, 16, 18, 20, 22, 24, 25, 27, 29, 31, 33, 35
CASH PURCHASE & REFI: 5/1 ARM 3.75%
Construction Overview Estimates:
Gross Living Interior:

2,900 SF 5th Story Entertainment Suite

Financial Summary Estimates:

Land Purchase Price:

$166,667

1,000 SF 5th Story Roof Deck

New Construction:

$378,547

Closing & Initial Project Management:

No. of Bedrooms:

No. of Bathrooms:

3.5

1 Car Garage

Finished Basement:

Yes

4,025 Useable SF

New HVAC CAC:

Yes

Total Cost Amount:

$555,214

New Water Service:

Yes

After Built Value (ABV/ARV):

$756,000

New Gas Service:

Yes

ASAP Built In Equity Profit:

$200,786

New Electric Service:

Yes

+ Fee Deposit Required:

$10,000

$11,900

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50

EQUITY OVERVIEW
838-52 N. American Street @ 3rd Street, Philadelphia, PA 19123
CASH REQUIRED: $11,900 Retainer + $0 C-loan payments + $290,231 (land, initial construction draw, closing cost) = for Total

upfront cost of $302,131+ (9 future draws of $29,442.54) for a Total cash in of $567,114, a $0 C- loan; $538,095 is returned at
the Refinance from the $538,095 Refinance loan. Thus, Only $29,019 of Net Cash stays in!

Rent Economic Benefits:

-$4 per year estimated negative net loss + $10,873 annual pay down of your mortgage = $10,869 annual economic
benefit from rents: $10,869/$29,019 (Cash Flow + Principal Pay Down/ Cash In) = 37.4% Return

Thats Before Your $200,786 CASH OUT PROFIT at RE- SALE!

At Re-Sale you will have $217,905 Total Equity in the Property for Cash Out RETURN TO YOU
Notes: Homeowners Insurance of about $1,000 will be billed to you by Downie Insurance to insure your home during Construction.
Construction sizes, lay outs, and total financial returns are realistic estimates but vary as detailed in your disclosure contract. All Government
Licensing, Taxes, & Homeowners Association/Maintenance Fees due to legally own, maintain, or rent your property are Owner responsibilities.
Estimates are involved in this project and it can typically vary 2% - 3% - see your disclosures signed for full variable details. Any deposit on
the property made by NRIA on your behalf will be refunded on the settlement statement to NRIA at closing. Financing when qualified will be
obtained for you, but after underwriting, if you cancel the financing & switch to paying by cash, there will be a $400 financing cancelation fee
on your closing settlement statement from the title company.

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________________________________________________________________
Client SIGNATURE of RECEIPT

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REALTY WEALTH RENTAL PORTFOLIO BUSINESS PLAN

Date Created: 3/6/2015
Assumptions

Annual Growth

Property Info
Purchase Price

$166,667

Construction

$378,547

Closing Costs

$10,000

Total Purchase

$555,214

Appraised Value

$756,000

Built-in Equity

$200,786

Annual Taxes

$400

0.00%

Annual Insurance

$700

0.00%

Property Mngt Fee

$50

2.00%

Closing Costs

$10,000

Total Initial Investment

$11,900

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Loan Info (refi)

Mortgage Type
Mortgage Term

TOWNHOMES

Full Cash Out

0%

Interest Rate

3.75%

Loan to Value %

Closing Cost as %

3.00%

71.18%

First Mort %

$0

Equity Remaining
0.000%

% Equity Remaining

Other Info

Amount

Annual Growth

Rents

$2,750.00

3.00%

IN
PHILADELPHIAS

$538,095

Second Mort %
Second Mort Int Rate

Asap 120-180 Cash Out

$217,905
28.82%

NORTHERN
LIBERTIES

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REALTY WEALTH RENTAL PORTFOLIO BUSINESS PLAN

Date Created: 3/6/2015
Year 1

Year 2

Year 3

Year 4

Year 5

$2,750

$2,833

$2,917

$3,005

$3,095

$0

$0

$0

$0

$0

Total

Monthly Revenue (Income)

Monthly Rent Revenue
Monthly CD Revenue
Annual CD Revenue

$0

$0

$0

$0

$0

$0

Annual Rent Revenue

$33,000

$33,990

$35,010

$36,060

$37,142

$175,201

Total Annual Revenue

$33,000

$33,990

$35,010

$36,060

$37,142

$175,201

$2,492

$2,492

$2,492

$2,492

$2,492

HOA

$110

$110

$110

$110

$110

Property Taxes

$40

$40

$40

$40

$40

Property Insurance

$58

$58

$58

$58

$58

Property Mngt Fee

$50

$50

$50

$50

$50

$2,750

$2,750

$2,750

$2,750

$2,750

$33,004

$33,004

$33,004

$33,004

$33,004

$165,020

-$4

$986

$2,006

$3,056

$4,138

$10,181

Deduct: Annual Depreciation

$20,190

$20,190

$20,190

$20,190

$20,190

Taxable Gain or Loss

($20,194)

($19,204)

($18,184)

($17,134)

($16,052)

Monthly Expenses
First Mortgage Payment

Total Monthly Expenses

Annual Expenses
Net Annual Income/Loss

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REALTY WEALTH RENTAL PORTFOLIO BUSINESS PLAN

Date Created: 3/6/2015
Year 1

Year 2

Year 3

Year 4

Year 5

Total

-$4

$986

$2,006

$3,056

$4,138

$10,181

Year-end Property Value

$771,120

$786,542

$802,273

$818,319

$834,685

Annual Increase to Prop Value

$15,120

$15,422

$15,731

$16,045

$16,366

$78,685

$0

$0

$0

$0

$0

$0

Economic Impact
Net Annual Rent Income/Loss

less: Total Deferred Interest

36

Tax Rate
add: Tax Benefit

36%

$7,270

$6,913

$6,546

$6,168

$5,779

$32,676

Equity Remaining

$217,905

Net Economic Gain

$339,448

GROUNDBREAKING
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TOWNHOMES
IN
PHILADELPHIAS

5 Year Economic Benefit

Return on initial $11,900 Investment

$339,448

NORTHERN

2853%

LIBERTIES

Note: Actual results will vary based upon bank margin, realty appreciation, index interest rates, and actual investment rates. Past performance is not
a guarantee of future results. See your disclosure documents reviewed and closing documents for loan details. See your tax and investment advisors
for actual tax savings and investment review. This illustration does not include tax, investment, or legal advice. For concept illustration purposes only.

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