Development • Project Management • Construction • Capital

www.lscdallas.com

LONE STAR COMPANIES OF DALLAS

CORPORATE INFORMATION

16980 Dallas Parkway #101 Dallas, TX 75248

972-267-2715

Development • Project Management • Construction • Capital

www.lscdallas.com

Table of Contents I Company Profile

A. Overview of Business B. Services Provided

II History/Corporate Strategy

III Development, Project Management and Construction A. Current Activities B. Additional Activities

IV Summary of Completed Projects

A. Construction Projects B. Development Projects

V Personnel VI References VII Affiliates VIII Letters of Recommendation

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Company Profile Overview of Business

Lone Star Companies of Dallas (LSC), LLC is a privately held real estate

company which focuses on premier properties that create value for investors,

clients, partners, and owners. LSC offers real estate development, general

contracting, project management, and structured finance services in multifamily

housing, townhomes, and commercial markets.

LSC’s Development Division completed a 160 acre mixed use development in

Bentonville, Arkansas with partner LandPlan of Frisco, Texas. Currently, LSC is

developing Village of Frisco Square, a 400 lot residential development in Frisco,

Texas and Flagstone Corners, an office park in Rockwall, Texas. Additionally,

LSC is marketing and developing more than 1,000 acres in the “288 Corridor” of

Houston, Texas with partner, LyBrand Commercial (Lybrand-LSC, LLC.). Other

projects are under contract with feasibility and financial arrangements pending in

Rowlett, Pearland, and Dallas.

LSC’s Contracting Division has more than 2,600 multifamily housing units in

process in Houston, Manvel, Conroe, and Frisco, Texas. This division has

completed more than 2,200 units in Dallas, Houston, Austin, Roundrock, Allen,

Frisco and Lewisville, Texas on time and within budget.

LSC’s Luxury Home Division will construct over 550 town homes and

condominiums at Village of Frisco Square. This division will develop, construct,

and market the entire project. Additionally, LSC owns land in Dallas (near NW

HWY and Inwood) for future construction of a luxury custom home.

LSC's Capital Division structures debt, equity, and guaranty needs for LSC

projects. This division works with both individuals and institutional funds to

create solid acquisition, development, and disposition strategies.

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Services Provided

Lone Star Companies of Dallas offers services of real estate development,

general contracting, project management, and structured finance services in

multifamily, townhome, condominium, and commercial markets. All services are

designed to enhance communities while creating additional value for investors,

clients, and partners.

The scope of services is to:

• Identify potential development sites

• Arrange for or provide financing

• Negotiate and contract with sellers

• Oversee planning, zoning, engineering, platting, and architecture

• Provide general contracting and project management

• Market and sell completed products

• Provide brokerage services

• Offer ultimate resale and final disposition services

• Provide asset management through stabilization and sale

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History/Corporate Strategy

Lone Star Companies of Dallas has a history of quality and performance that has

led to an excellent professional reputation as a general contractor, project

manager, and developer. Strategic alliances with financial partners and industry

professionals have allowed us to meet and exceed our financial goals. Our

ability to complete all projects on time and under budget continues to be a

contributing factor in our growth.

LSC's corporate strategy is to:

• Foster alliances with investors, partners, and industry professionals to

advance the continued growth of LSC

• Attract additional capital to create new projects and to enhance the value

of those projects for the investor

• Maintain a professional staff in order to complete all projects on time and

in budget

• Preserve and build upon the reputation as having the experience and

expertise to develop investment grade multifamily and mixed use projects

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Development, Project Management and Construction Current Activities Town homes, Stacked Flats and Condominiums - Frisco, Texas

LSC has started the development of Village of Frisco Square, a residential development in Frisco, Texas. LSC will develop lots and design, build and market over 550 luxury town homes, stacked flats and condominium units. Construction will begin in 2009. The estimated sales value of the completed project is $150,000,000.

Park Avenue at Boulder Creek (496 apartment units) - Houston, Texas Development is complete and construction started in the summer of 2007. This two phase project is located at the corner of Beltway 8 and Pearland Parkway in Houston, Texas. The project cost is approximately $43,000,000 with a completed value at stabilization of approximately $47,000,000. Fountains of Conroe (270 apartment units) - Conroe, Texas

LSC is developing this site for a national apartment development group. The site is located in NW Conroe at N Loop 336W and W Davis Street. Construction began in the spring of 2007. The total project cost is approximately $26,000,000, with an estimated value at stabilization of $31,000,000.

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Lebanon Ridge (684 apartment units) - Frisco, Texas

This two phase apartment project began construction in the fall of 2007. The property is located at the SE corner of Lebanon and Teel in Frisco. The project cost is approximately $62,000,000 with a completed value at stabilization of approximately $73,000,000.

Cobblestone Park Phase II (270 apartment units) - Houston, Texas Cobblestone Park II is the second phase of a 562 unit project. This project is located 15 minutes south of Texas Medical Center, the largest medical facility and medical research center in the southwest. Phase 2 construction started in August of 2007. The total project cost is approximately $26,000,000 with a value at stabilization of approximately $31,000,000. Kensington Crossings (254 apartment units) - Houston, Texas

The project consisting of 254 garden style apartments is located at Philippine and Beltway 8 on the west side of Houston, Texas. Construction commenced in January 2008 and this project has a projected total cost of $24,000,00 and a value at stabilization of $30,000,000.

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A 160 Acre Planned Unit Development - Bentonville, Arkansas

LSC and an investor group are developing THE CORNERS, a Planned Unit Development located at the Southeast corner of SR-12 and SR-112 in Bentonville, Arkansas. THE CORNERS will consist of multifamily, office, and retail and estimated cost is $26,000,000. Infrastructure is complete on phase I and 20% of the development is sold.

Flagstone Corners Office Park - Rockwall, Texas LSC and an investor group are developing an 8.263 acre tract located in Rockwall, Texas at the Southeast corner of Ralph Hall Pkwy and Mims Road. Flagstone Corners will consist of multiple pads sites suitable for small office or retail buildings or bank use. This site is in close proximity to major retail, Interstate 30 and Lake Ray Hubbard. CR 518 &521 – Pearland, Texas

Lybrand-LSC and Chicago based Strategic Capital Partners have teamed up to acquire a 9.6 acre commercial tract located in Pearland, TX at the Southeast corner of CR 518 & 521. LSC will subsequently be marketing the property for its future disposition.

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Additional Activities Lone Star Companies of Dallas is currently involved in pre-development and due diligence activities on several other proposed projects in the Dallas and Houston metropolitan areas as well as assisted living facilities in rural communities throughout Texas. These projects are in various stages of development.

Summary of Completed Projects Construction Projects Hidden Creek (244 apartment units) - Allen, Texas Hidden Creek apartments were completed in August, 2006. The site is located in the southwest quadrant of McDermott and Watters Road in the center of the fast developing Allen/McKinney market to the north of Dallas, Texas. The total project cost was approximately $20,000,000, with a value at stabilization of approximately $24,000,000. Cobblestone Park (292 apartment units) - Houston, Texas

Cobblestone Park is the first phase of a project completed by LSC in March of 2006. This project is located 15 minutes south of The Texas Medical Center, the largest medical facility and medical research center in the southwest. The total project cost is approximately $23,000,000 with a value at stabilization of approximately $30,000,000.

The Bluffs at Vista Ridge (272 apartment units) - Lewisville, Texas The Bluffs at Vista Ridge is the second phase of a project completed by LSC in March of 2002. This project is directly across the street from the initial project, Limestone Ranch® at Vista Ridge. The Bluffs cost approximately $20,700,000 and has an estimated market value of $24,500,000. The Bluffs was completed in 2005 with LSC serving as project manager, general contractor, and developer.

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Completed Construction Projects (continued)

Limestone Ranch® at Vista Ridge (252 apartment units) - Lewisville, Texas

In 2001 The Company was retained by a real estate investment trust to develop and construct the project on land already owned by the trust. Total project cost was approximately $16,250,000 with an estimated value of approximately $19,000,000. The project was completed in 9 months. The Company served as project manager, general contractor, and developer.

Limestone Canyon Apartments (260 apartment units) - Austin, Texas In January 1998 The Company purchased the land for this project. Construction began in August 1998 and was completed in December of 1999. The total development cost was approximately $15,500,000. The Company served as project manager, general contractor, and developer receiving ownership interest as a bonus. Limestone Ranch® Apartments (512) apartment units - Round Rock, Texas

In 1996 The Company in conjunction with Hunt Capital Group, L.L.C. (an affiliate of the Lamar Hunt Family) developed 512 apartment units north of Austin, Texas. Total project cost was approximately $28,250,000 and was sold in February 1999 for $33,500,000. The Company served as project manager, general contractor, and developer.

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Completed Construction Projects (continued) Limestone Ranch® at the Crossroads (256 apartment units) - Houston, Texas In June 1997 The Company purchased land for this project located at Highway 290 and Highway 1960 in Houston, Texas. This HUD 221(d) (4) project cost approximately $14,350,000. The Company served as project manager, bonded general contractor, and developer. Ladera Condominiums (83 condominium units) - Austin, Texas

Construction began in May 1997 and was completed by the summer of 1998. All units sold by July 31, 1999 resulting in total sales exceeding $12,000,000. The Company served as project manager, general contractor, marketer and developer.

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Development Projects The Corners 160 Acre Planned Unit Development - Bentonville, Arkansas Spicewood Springs Lot Development - Austin, Texas Glen Lakes (83 lots) - Dallas, Texas Limestone Creek (200 apartment units) - Austin, Texas Hunter’s Creek (113 Lots) - Carrollton, Texas Hidden Lake Estates (117 Lots) - Grapevine, Texas The Woods and The Creek at Lake Forest (176 lots) - Flower Mound, Texas Whispering Meadows (101 Lots) - Arlington, Texas Glade Meadows (35 Lots) - Grapevine, Texas

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Personnel Lone Star Companies of Dallas has a dedicated team of real estate and construction professionals. Our team of progressive and productive individuals designs all services to enhance communities while creating additional value for investors, clients, and partners. To reach one of our dedicated professionals, call (972) 267-2715. Bill Boyd – President Shayne Whitehead – Vice President – Chief Operating Officer Eldon Frost, CPA – Vice President – Chief Financial Officer Greg Minton – Vice President – Construction Larry Crosby – Vice President – Development Charles Anglin – Vice President - Structured Finance Russell Moore – Construction Project Manager – Multifamily Projects Wes Graves – Construction Project Manager – For Sale Projects Douglas Nguyen – Assistant Project Manager- Multifamily Projects Laura Brundett – Construction Administrator Shawn Delaney – Corporate Comptroller

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References Partners and Investors LandPlan, Inc. & WDW, LLP 214-618-3800 Jim Williams, Jr., President Bill C. Dotson, CCIM 3400 Dallas Parkway Frisco, Texas 75034 Florida Capital 407-333-1604 C. Thomas Selby, President/CEO 300 International Parkway Suite 300 Heathrow, Florida 32746 RCHS Investments 214-240-9024 James W. Whitehead PO Box 2351 Addison, Texas 75001-2351 The Lamar Hunt Trust Estate 214-720-1621 J.R. (Jim) Holland, Jr., Trustee 1962 Thanksgiving Tower 1601 Elm Street Dallas, Texas 75201 Real Estate Capital Partners 212-843-6114 Paul Doocy 1185 Avenue of the Americas 18th Floor New York, NY 10036-2601

Consultants Robb Barker, CPA 972-644-3801 Robb Barker, CPA 8111 LBJ Freeway, Suite 835 Dallas, Texas 75251 SNB Bank of Dallas 972-624-2900 Len McLaughlin, President 5300 Town & Country Suite 100 Frisco, Texas 75034 Wachovia Bank (formerly South Trust Bank) 602-508-6081 Matthew K. Mains, Vice President 7934 E. Hanover Way Scottsdale, Arizona 85255 Higier Allen & Lautin, P.C. Robert M. Allen, Esq. 5057 Keller Springs Suite 600 Addison, TX 75001

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Affiliates (Partners and Investors in selected ventures)

LandPlan Development Corporation (Landplan.net) In 2003, LSC established an affiliation with LandPlan Development Corporation.

This relationship created a framework through which LandPlan Development

Corporation will provide credit enhancement services as well as equity capital for

projects and developments initiated by either LSC or LandPlan.

Jim Williams, Jr., President LandPlan Development Corporation

RCHS INVESTMENTS, LLC In 2007, LSC established an affiliation with RCHS. This relationship created a

framework through which RCHS will provide credit enhancement services as well

as equity capital for certain projects and developments initiated by either LSC or

RCHS.

Jim Whitehead, Principal-Manager

RCHS Investments, LLC

LYBRAND COMMERCIAL (Lybrandcommercial.com) In 2008, LSC established a partnership with LyBrand Commercial, a Houston

based Real Estate Brokerage, Investment, and Development Company. This

partnership (Lybrand-LSC, LLC.) created a framework through which over 1000

acres in the Houston metropolitan area will be marketed and developed along the

“288 Corridor” in the cities of Pearland and Manvel.

Julio Lybrand, President

Lybrand Commercial