FORTIS – Parcel 42

FORTIS – Parcel 42TheFORTISCompanies,inconjunction with R2L:Architects andKettler Management, appreciatesthe opportunity to respond to the RFPfor this exciting project at Parcel 42(the “Project” or “Parcel 42”). Ourproposal envisions an eight-storymixed-use project featuring 197micro-unit apartments, 7,500 squarefeet of ground-level retail, 35 belowgrade parking spaces, and a publicpark/art installation in the adjacentsmall triangular lot (Lot 803).Expanding upon the unique design characteristics of the Shaw Library, we envision Parcel 42 asa signature gateway to the arts, entertainment and rich history of the Shaw neighborhood. OurLEED Gold design will feature neighborhood-enhancing retail and sophisticated, yet affordable,residential units. The Project’s efficiently-designed units (averaging approximately 400 sf) andthoughtful amenity space allow us to reach a more reasonable price point for the District’smiddle-income Millennials including young professionals and the working and creative classes.Our target monthly rent for our market units will be approximately 20% below asking rents forcomparable buildings in Shaw and Logan Circle. In addition to our lower-price-point marketunits, we will include 60 dedicated affordable units at 30% - 50% AMI representing more than30% of the residential units in the building.For the retail component of the Project, we have identified District-based businesses that wouldinvigorate this important corner. We have secured Letters of Interest from three potential retailpartners for Parcel 42 that include a local hardware store, a fitness/health club, and a gourmetmarket.In addition, our proposal includes funds to sponsor a pocket-park design competition throughHoward University’s School of Architecture for the adjacent triangular lot (Lot 803). Park designrequirements would include unrestricted community access, stormwater management elementsand opportunities for art installations that reflect the history and culture of Shaw.At Parcel 42, we hope to combine affordable, smart-density, with high quality design toinvigorate this important neighborhood corner.

PARCEL 42Presentation to the Shaw CommunityApril 2016

The Parcel 42 Team QUALIFICATIONS &EXPERIENCEWe have assembled an experienced team of industry professionals that are committed toachieving a successful development for the Shaw communityCOMPANYDC-BASEDCBEDevelopment TeamDesign TeamOperations & PropertyManagementLegal CounselFinancial PartnerTenant PartnersRetail Leasing PartnerParcel 42FORTIS, R2L & Kettler Management2

FORTIS’ Qualifications & ExperienceQUALIFICATIONS &EXPERIENCE FORTIS is a Washington, DC based real estate development and investment company that isfocused on creating exceptional residential and mixed-use projects With combined experience of over 30 years, the FORTIS team has built more than 2,500multifamily units in the DC region with a combined value in excess of 800 million Below are selected current and prior projects developed by FORTIS’ principals:Zoso FlatsThe OtisPullman Place1628 11th St, NWLocationArlington, VAColumbia HeightsNOMA / H StreetLogan CircleProgram114 units23,000 sf retail27 units42 units32 units2008201420162017Delivery DateParcel 42FORTIS, R2L & Kettler Management3

R2L’s Qualifications & ExperienceQUALIFICATIONS &EXPERIENCE R2L is a Washington, DC based design firm specializing in multifamily residential and mixed-use,transit-oriented development R2L is currently designing numerous multifamily projects in the District, throughout theWashington metropolitan area, and across the US Southeast region Below are selected current and prior projects designed by R2L:82 Eye Street450K2101 ChamplainElement 28LocationCapitol RiverfrontMount Vernon TriangleAdams Morgan / DupontBethesda, MDProgram220 units233 units7,000 SF of retail132 units101 units2016201420172016Delivery DateParcel 42FORTIS, R2L & Kettler Management4

Our Vision for Parcel 42PROJECT &DESIGN VISION At Parcel 42, we hope to create a gateway to the arts, entertainment and rich history of theShaw neighborhood through timeless design and thoughtful programming This Project will solidify 7th Street as a primary commercial and residential corridor in the DistrictKEY FACTSSignature Architectural DesignBuilding111,000 GSFResidential197 UnitsMarket137 UnitsAffordable60 UnitsA Focus on Affordability through a Unique Product TypeNeighborhood Enhancing RetailDesign Competition for Public Park / Art InstallationVibrant Streetscapes and Thoughtful LandscapingParcel 42Retail (SF)7,500 SFEnvironmental Sustainability through LEED Gold DesignParking35 SpacesInvestment in the CommunityPublicSpace1,700 SFParkFORTIS, R2L & Kettler Management5

Signature Architectural Design Modern aesthetic thattakes cues from history ofDC apartment houses Designed to enhance andframe the Shaw Library Metallic and greyscalecolor palette Use of metal screens andcorrugated metal panels Bay windows to createshadows and volume Glass base to maximizeconnectivity of retail spacewith the streetscape Parking and access fromalleyPROJECT &DESIGN VISIONIntersection of 7th Street and Rhode Island AvenueParcel 42FORTIS, R2L & Kettler Management6

Signature Architectural Design (cont.)PROJECT &DESIGN VISIONLooking North East from R StreetParcel 42FORTIS, R2L & Kettler Management7

Signature Architectural Design (cont.)PROJECT &DESIGN VISIONLooking East from 7th StreetParcel 42FORTIS, R2L & Kettler Management8

“Class A” Affordable Alternative Residential component features efficiently-designed, micro-unitapartments with sophisticated communal lounges and Class Abuilding amenities Innovative unit layouts maintain open space by utilizing designfeatures that maximize usage and feel Target rent on market units will be 20% below asking rents forcomparable buildings in Shaw and Logan Circle Micro-unit buildings have been very successful in DC and havemany benefits to the community:DEVELOPMENTPROGRAM Achieves affordability for the District’s young, creative andworking class residents seeking a live-work-play lifestyle Frees up family-sized housing in the community that isoccupied by “roommate renters” Smart density around public transportationreduces stresses on critical infrastructure Micro-units are NOT a new type of housing – weare simply taking advantage of advances intechnology and interior design to meetdemand at a more affordable price pointParcel 42FORTIS, R2L & Kettler ManagementIllustrative Potential Unit Layouts9

Neighborhood Enhancing RetailDEVELOPMENTPROGRAM Our design includes approximately 7,500 SF of ground level retail facing 7th Street and R Street We have secured letters of interest from three potential retail partners – Ace Hardware DC,MINT Health Club & Spa, and Rodman’s Discount Gourmet Our partners are District-based retailers that fill particular underserved retail needs of theShaw community These businesses create a daytime draw and spur pedestrian activity on this importantneighborhood corner We will rely on community input to ensure the retail meets YOUR needs and desiresParcel 42FORTIS, R2L & Kettler Management10

Active & Accessible Public SpaceDEVELOPMENTPROGRAM We will fund and administer a small-park design competition for Lot 803 in conjunction withHoward University’s School of Architecture This will enable young design students to shape the urban fabric around them and gaintangible design experience Park design guidelines will include unrestricted community access, storm water managementelements and native/sustainable landscaping Community input will be incorporated throughout the design competition to create a truecommunity resource on this spaceInspiration from the CommunityParcel 42FORTIS, R2L & Kettler Management11

A Project that “Checks All The Boxes”CONCLUSIONINNOVATIVE DESIGN THAT ESTABLISHES A SIGNATURE GATEWAYAFFORDABILITY – MARKET UNITS PRICED 20% BELOW COMPARABLE BUILDINGSAFFORDABLE HOUSING – 60 PERMANENTLY AFFORDABLE UNITS (45 AT 50% AMI; 15 AT 30% AMI)VIBRANT, NEIGHBORHOOD-ORIENTED RETAIL MIXENVIRONMENTALLY SUSTAINABLE DEVELOPMENT THAT WILL EXCEED LEED GOLD REQUIREMENTSWIDE STREETSCAPES AND AMPLE LIGHTING TO STIMULATE DAYTIME AND EVENING PEDESTRIAN ACTIVITYACTIVE AND ACCESSIBLE PUBLIC SPACE – 1,700 SF PUBLIC PARKINVESTMENT IN THE COMMUNITY THROUGH LOCAL HIRINGFUNDED ENTIRELY BY DEVELOPER EQUITY AND CONVENTIONAL FINANCING REQUIRING NO SUBSIDIESFROM THE DISTRICTParcel 42FORTIS, R2L & Kettler Management12

FORTIS – Parcel 42. The FORTIS Companies, in conjunction with R2L:Architects and Kettler Management, appreciates the opportunity to respond to the RFP for this exciting project at Parcel 42 (the “Project” or “Parcel 42”). Our proposal envisions an eight-story mixed-use