The document describes the typical phases and capital investment profile of a real estate development project. It shows that risk is highest in early phases like land acquisition and construction and decreases over time. The cumulative investment is lowest at the beginning and increases over the phases of shell completion, lease-up, stabilization and operation. It also outlines the common sources of capital at different phases, from entrepreneurial equity to construction loans to permanent financing.

1. LAND OPTIONING & ASSEMBLY, PERMITTING, & DEVLPT DESIGN  CONSTRUCTION  LAND PURCHASE “ Time 0” SHELL COMPLETION “ Time T 1 ” LEASE-UP & TENANT FINISHES STABILIZED  OPERATION  $ C UMULAT IVE INVESTME NT $ DEVLPMT COMPLETION “ Time T 2 ” Time  R I S K AS I N V E R S E S U C C E S S P R O B VERY HIGH RISK e.g.: 40% OCC HIGH RISK e.g.: 20% OCC MODERATE RISK e.g.: 10% OCC LOW RISK e.g.: 8% OCC Exhibit 29-1a: Development Project Phases: Typical Cumulative Capital Investment Profile and Investment Risk Regimes = CUMULATIVE INVESTMENT = RISK LEVEL

2. LAND OPTIONING & ASSEMBLY, PERMITTING, & DEVLPT DESIGN  CONSTRUCTION  LAND PURCHASE “ Time 0” SHELL COMPLETION “ Time T 1 ” LEASE-UP & TENANT FINISHES STABILIZED  OPERATION  $ C UMULAT IVE INVESTME NT $ DEVLPMT COMPLETION “ Time T 2 ” ENTREPRENEURIAL DEVLPR SEED EQUITY SOURCES OF CAPITAL: EXTERNAL EQUITY &/OR MEZZ DEBT INVESTORS: OPPTY FUNDS, INSTNS, FOREIGN INVSTRS, WEALTHY INDIVIDUALS, REITS DEVLPT CAPITAL Betw 0 & T… FROM COMMERCIAL BANKS: TRADITIONAL CONSTRUCTION LOAN DEBT, FROM Time 0 TO Time T 1 ; AND/OR MINI-PERM LOAN DEBT FROM Time 0 TO Time T 2 . PERMANENT FINANCE Beyond Time T… FROM LICs, PFs, PRIV EQUITY : L.T. EQUITY OR COMMERCIAL MORTGAGE (EITHER CMBS CONDUIT OR WHOLE LOAN) Time  ORDER OF INVESTMENT ORDER OF PRIORITY IN PAYBACK Exhibit 29-1b: Development Project Typical Sources of Investment Capital A B C D E F G H I O Z