Urban Capital Partners is launching the UCP Rescue Capital Fund I to invest in commercial real estate facing maturing CMBS debt between 2014-2017. The $2 million fund will target office and multifamily properties in Southeast and Mid-Atlantic markets needing capital restructuring or asset repositioning to generate returns above 20%. The general partner will seek 5 deals annually and co-invest 5% of the fund's equity to capitalize on abundant distressed assets facing maturing commercial mortgage backed securities loans.

1. Urban Capital Partners, LLC
UCP Rescue Capital Fund I, LLC

2. CMBS Market Opportunity
• The Fund’s focus and objective will be to capitalize on the looming CMBS
debt crisis by providing rescue capital to owners who made highly
leveraged purchases of real estate assets when market conditions were
favorable to do so, but now face debt maturities with stricter underwriting
standards and much lower loan-to-value financing options
UCP Rescue Capital Fund I
• Urban Capital Partners Rescue Capital Fund I, LP (the “Fund” or UCP Fund
I”) will be a 506 Regulation D compliant, Delaware limited partnership
formed to make investments primarily in the Southeast and Mid-Atlantic
regions within the US. The GP will seek to generate a net leveraged IRR of
>20% and a net equity multiple of 2.0x - 2.2x over 7 years. The GP will
co-invest 5% of the Fund’s equity.
Urban Capital Partners, LLC
• Urban Capital Partners, LLC (the “GP”) is a Washington, DC-based vertically
integrated real estate investment company. The experience of its
managing partners gives it a competitive advantage as the principals have
individual skill sets in acquisitions, operations, and dispositions –
mirroring the life cycle of the real estate investment process.
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4. Maturity # of Loans Balance ($mln) # of Properties
2012 4,628 $41,523 5,694
2013 6,094 $63,008 8,342
2014 7,178 $82,296 9,910
2015 11,812 $152,334 16,735
2016 13,543 $171,257 19,442
2017 14,617 $214,528 21,174
2018 819 $12,145 1,772
Total 58,691 $737,094 83,069
• Years 2012-2017 will experience an average 27% yearly
increase of CMBS debt maturities
• 2014-2015 will experience the largest increase at 65%
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5. • Over $600bn of CMBS debt maturing between 2014-2017
• The Fund’s investment period will align with this 3-year time
window in order to capitalize on abundant excess supply
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6. Property Type # of Loans Balance ($mln) % of total
Office 1,106 23,689.07 29.67
Multifamily 854 19,076.58 23.90
Retail 1,362 17,118.76 21.44
Hotel 396 10,329.94 12.94
Industrial 286 3,482.91 4.36
Healthcare 10 228.69 0.29
Other 338 5,904.63 7.40
• $79.8 billion of loans in special servicing represents approximately
13% of the entire CMBS universe
• Over 50% of that volume, roughly 2,000 loans, is against office
buildings and apartment properties
Source: Morningstar
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8. Market Characteristics
 Geographic Focus
◦ Urban Markets
 Southeast, Mid-Atlantic
◦ MSA’s >1mm
 Core Profile
◦ Office
◦ Multifamily
◦ Some Mixed-use
 Asset Class
◦ Class B
◦ Class C
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9. UCP Rescue Capital Fund I
 Fund Size: $2MM
◦ Closed ended
◦ Commingled
 Investment Criteria
◦ Maturing CMBS Debt
◦ Asset types: Office & Apartments
◦ Unpaid Principal Balances(UPB): $3MM - $5MM
 Minimum Equity Commitment
◦ $200K
◦ Moderate leverage (2/3 debt)
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10. Commitment Period
 Fundraising Period
◦ 18 – 30 months
 Investment Period
◦ 24 - 48 months (2014-2017)
 Harvesting Period
◦ 48 – 60 months
◦ Exit strategies
 Financial buyer
 Developer partner
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11. Deals Per Year
 Deals Per Year = 5
?
◦ Fund size/equity comm./investment period
◦ 2MM/$200K/2 years = 5 Deals Per Year
 Fund Size: $2MM
 Avg. Equity Commitment: $200K
 Investment Period: 2 years
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13. Value Add Investing, Opportunistic Returns
 The Fund will employ a value add investment
style with opportunistic return targets
◦ Return Targets: >20%
◦ Preferred Return: 8% - 10%
◦ Equity Multiple Target: 2x
 Methodologies utilized will include
◦ Capital Restructuring
◦ Asset Repositioning
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14. Methodology: Capital Restructuring
 Scenarios that meet the following criteria will
be candidates for the Fund’s CAPITAL
RESTRUCTURING METHODOLOGY (CRM)
◦ Very little (if any) operational challenges
 Vacancy < 10%
 Competent property management already in place
 No simultaneous lease expirations
 Value creation may be attained via rent increases
◦ Minor exterior/interior upgrades (if any)
◦ Owner’s inability to refi due to lack of capital
◦ May not qualify for discounted payoff (DPO)
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15. Methodology: Asset Repositioning
 Assets that meet the below criteria will be
candidates for the Fund’s ASSET
REPOSITIONING methodology:
◦ Significant operational challenges exist
 Vacancy > 20%
 Poor management
 Below-market rents
◦ Poor curb appeal – repositioning req’d
◦ Deferred maintenance – TI’s for Major Tenant
◦ High likelihood of DPO approval from lender
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17.  Qualified Purchaser
◦ LP Investors (“Investors”) must comply with section
3(c)(7) of the Investment Company Act of 1940 in
that said Investors must have $5MM in investments.
 Accredited Investors
◦ Investors must have income in the last two years of
at least $200,000(individually) or $300,000(with
spouse), and with a reasonable expectation of the
same income in the current year.
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18.  Sponsor: Urban Capital Partners, LLC
 General Partner: UCP Rescue Fund 1
 Target Equity: $2MM
 GP Co-Investment: 5% of Fund Equity
 Senior Debt: Maximum 70% Stabilized LTV
 Target Market(s): Mid-Atlantic & Southeast MSA’s ≥ 1M
 Investment Strategy : Value Add Investing, Opportunistic Returns Through
Asset Repositioning and/or Debt Restructuring
 Term: 5 Years
 Investment Period: 2 Years
 Structure: Delaware LLC
 Distributions: Quarterly subject to capital requirements; Capital
Proceeds may be Recycled into new Investments During
the Commitment Period
 Reporting: Annual Audited, Quarterly Unaudited
 Advisory Committee: GP handles Major Decisions, LP’s mitigate COI’s
 Management Fee: 50 bps on Committed Capital; 1.5% on Invested Capital
 Carry/Incentive Fee: 20% Promote; 50% Catch Up Provision
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