We Are…• Over 35 years in business

• Specialists in multi-family, mixed-use, affordable and market-rate development

• Recognized experts in complex, multi-phase, mixed-finance, urban and suburban development

• 180+ Developments/14,000+ units

History

Developers with a depth of experience, a reputation for quality, a commitment to diversity, and a broad vision that allows us to consistently produce great spaces.

RAD UPDATE

RAD – Rental Housing Demonstration 1.7B – Total Construction Costs

Less than 25K in Rehab – 48% More than 25K in Rehab – 35%

New Construction – 17%

RAD FIRST

COMPONENT

UNITS PROJECTS

Transactions

2015 – RAD Closings

(53% of deals closed

in the 4th Qtr.)

13,653 124

TOTAL CLOSED 27,000+ 258

Financing Type Non-FHA FHA

4% Tax Credits 20l% 9%

9% Tax Credits 20% 2%

Mortgage Only 6% 6%

No Debt 83% 17%

RAD Stats (as published in the January 2016; Issue 15 RAD Newsletter)

W Y M A N H O U S EB a l t i m o r e, M D

1 7 5 u n i t s

RAD – Housing Authority Baltimore City (HABC)

PROCUREMENT PROCESS

18 mixed population (Seniors/NEDS) public housing projects

Issued Two Step Procurement:

June 2013 RFQ – Ranked Development Companies

Sept 2013 RFP – Determined Building(s) Awarded to:

11 Development Firms

Pennrose - Ranking of HABC 18

Buildings1. Location of Building (Neighborhood Characteristics)

2. Proximity to existing Pennrose Developments

3. % of Seniors vs. NEDS

4. # of Units

5. Financial Analysis

6. Physical Condition of Building

Pennrose only chose to rank 5 out of the 18 buildings. We were awarded Wyman House, our

2nd ranked building. Ultimately, this was a decision of knowing that the building would be a

part of our portfolio.

NOTE: Only 3 other developers chose to only rank their top 5 choices. Other developers

were awarded two projects.

Developer CollaborationMaryland Affordable Housing Coalition (MAHC) developed a subcommittee by

which the developers and their legal counsels worked together to deal with the

issues below:

Wyman House and 1st Component DealsDeal terms with HABC

RAD – Control Requirement

Investor & Lender Requirements

RAD Waivers (11 requested)

Resident Advocate Input – Resident Communications

Consent Decrees/DOJ - MDLC

Operational Complexities

– Waitlist Administration

- Antennae Leases/Insurance/Costs/Income

- Subsidy Payments/Deposits/

- Tenant Files/Over-Income Residents

- BED BUGS

Closing (Wyman House) – Dec 2015

Wyman House ApartmentsBaltimore, MD

Project Overview:• Partnership with the Housing Authority of Baltimore City

• In-Place Rehab of 168 Mixed Population Affordable Units (seniors

and non-elderly)

• Adding seven new units on 2nd Floor

• 168 PBRAs through RAD program/7 LIHTC (175 units)

• Renovation of kitchens, bathrooms, common areas, management

offices, etc.

• Total Project Cost: $31.2M

Schedule:• Closed December 2015

• Construction Completion February 2017

Wyman House – Sources and Uses

168 existing/175 total

CDA Form 202 (09/23/2008) 21 SUMMARY:11/4/15

SOURCES OF FUNDS

Debt Service Financing

Source of Funds Lender Amount

Taxable Bonds 14,600,000$

Tax-exempt Bonds AGM/Wells 7,339,000$

Total Debt Service Financing 7,339,000$

Cash Flow Financing and Grants

Source of Funds Lender Amount

Rental Housing FundsMaryland DHCD 961,773$

CIF Maryland DHCD 541,963$

Other (TAKE BACK NOTEHABC 12,300,000$

Total Cash Flow Financing 13,803,736$

Equity

Type of Equity Amount

Low Income Tax Credit Proceeds 9,985,860$

Interim Income (occupied rehabilitation projects)157,855$

Total Equity 10,143,715$

Total Sources of Funds (must equal Total Uses of Funds)31,286,451$

USES OF FUNDS

Type of Uses Amount Per Unit $

Construction or Rehabilitation Costs 11,731,957$ 67,040

Fees Related to Construction or Rehabilitation1,349,350$ 7,711

Financing Fees and Charges 2,071,710$ 11,838

Acquisition Costs 12,421,496$ 70,980

Total Development Costs 27,574,513$ 157,569

Developer's Fee 2,500,000$ 14,286

Syndication Related Costs 180,306$ 1,030

Guarantees and Reserves 1,031,631$ 5,895

Total Uses of Funds 31,286,451$ 178,780$

Wyman House ApartmentsExisting Conditions - Lobby

Existing Conditions – Community Room

Wyman House ApartmentsExisting Conditions

Wyman House ApartmentsExisting Conditions - Library

T H A N K Y O U

MISSION

P e n n r o s e , i n c o o p e r a t i o n w i t h i t s p a r t n e r s a n d k e y

s t a k e h o l d e r s , s t r i v e s t o d e v e l o p high-quality, expertly

managed p r o p e r t i e s - - w h i c h p r o v i d e long-lasting

enhancements t o residents, t h e i r communities, a n d h o s t

municipalities.

CORE PRINCIPLES

We are committed to high-quality developments:

Solidly financed; attractively designed; and constructed for energy efficiency and durability

We stay for the long-term:

Our business model is based on sustained ownership and our properties are designed to stand

the test of time

We understand that quality management is the key to our ongoing success:

Attentive maintenance, appropriate services, and a focus on our residents set Pennrose

developments apart