1. Broadway Center Phoenix Partners, LLC David Hansen (Development) Amy Merritt (Finance) Thacher Tiffany (Planning) Yew Chin Tan (Legal)

2. Phoenix Partners, LLC Team Objectives oCreate financially viable retail development oImprove retail shopping options for residents in underserved area oUnderstand the New Market Tax Credits program Development Team

3. Broadway Center Development Team Site Overview Market Study Design and Program New Market Tax Credits Finance A grocery-anchored neighborhood shopping center BROADWAY

4. Site Overview

5. 30 Miles North of Boston Location & Context

6. Outside of Historic Downtown Lawrence Location & Context

7. Site METHUEN LAWRENCE

8. Streets

9. Context

10. Views from the site Location & Context

11. Malden Mills Facility Location & Context

12. Zoning Site Analysis: Zoning *overlay district under development

13. Market Study

14. Primary Trade Area Market Analysis

15. o 12,500 Households o 70% Latino o 25% Single Mother Families o $28,500 Median Household Income o 13,200 Average Daily Traffic o Center of Latino business sector o Neighborhood based on geography and relationships What this means... Market Analysis Trade Area Profile

16. Grocery Stores BROADWAY

17. Grocery Stores One mile Grocery Store BROADWAY Super Stop & Shop (2.5miles) Market Basket (2.5miles) DeMoula’s (1.8miles) Market Basket (1.3miles)

18. Grocery Store Absorption

20. National Chain Pharmacies 0.6 Miles Pharmacy BROADWAY Walgreen's (1mile) CVS (0.6miles) CVS (0.8miles) Brooks (1.8miles) Conlin’s (0.7miles) Walgreen’s (0.6miles)

21. Pharmacy Absorption

23. Design and Program

24. Center Alternatives Site Planning Base case2 nd Story3 PadsHybrid 3rd4th1st2ndLand Residual

25. Site Plan 40’ Anchor 45,000 sf Pharmacy 13,440 sf Inline 22,760 sf BROADWAY \

26. Project Timeline 4 12 6

27. New Market Tax Credit

28. What is the NMTC: Federal tax credit allocated annually to qualifying CDEs Goal of NMTC: Encourage investment in low income communities Financial Terms: Credit equal to 39% of equity investment, received over 7-year period New Markets Tax Credit

29. o MIHC was allocated $169 million in NMTC credits in 2006 o Leverage tax credit equity with debt in order to fund economic development projects o Provide a subordinate loan at 1% Massachusetts Housing Investment Corp

30. NMTC Structure Project Finance CDE Phoenix Properties LLC NMTC Fund I MHIC equity subordinate loan CDFI Fund (US Treasury) credits debtequity LenderInvestor

31. NMTC Structure Project Finance LenderInvestor CDE Phoenix Properties LLC NMTC Fund I MHIC $ and credits $ CDFI Fund (US Treasury) $$ and credits

32. NMTC Structure Project Finance CDE Phoenix Properties LLC NMTC Fund I MHIC equity subordinate loan CDFI Fund (US Treasury) credits debtequity LenderInvestor equity

33. o $15 billion between 2002 and 2007 o 2006 and 2007’s authorization will each equal $3.5 billion o Applications for 2007 funding are due in September of 2006 o Congressional reauthorization in 2008 is likely Future of the NMTC Project Finance

34. Finance

35. Project Finance Land Price o Land residual analysis based on alternatives Up to $1.6 million o Brokers $1 to 5 million o Lawrence Community Works $1.5 million o Developers “not much” RESULT: $1.3 million

36. Project Finance Development Cost

37. Project Finance Retail Rents

38. Project Finance Capital Structure

39. Project Finance Assumptions Sources: Eastern Development, Linear Retail, Commercial Real Estate Listing Service, Urban Land Institute, Meredith and Grew, COSTAR, Black’s Guide, LoopNet

40. Project Finance Financial Results

41. Project Finance Effect of Reduced Land Price

42. Project Finance Effect of Higher Inline Rents

43. Project Finance CONCLUSION

44. o Proposal benefits from large vacant parcel o Site plan fits within urban context o Capital structure includes application of NMTC o Tenant mix addresses unmet demand However… o Insufficient returns to attract private capital

45. Broadway Center

47. Project Finance