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Pyatt Broadmark Real Estate Lending
Fund I (“PBRELF I”)
August 2015
InvestorPresentation
Fund Summary
PBRELF I invests in short-term, first lien notes
issued against real estate projects in the Pacific
Northwest (Washington, Oregon, Idaho) with
Seattle as the core market
The goal of PBRELF I is to provide investors with a
high-yield debt investment while minimizing the risk
of principal loss and maintaining near-term liquidity
Roughly $132.6M in assets under management
2
InvestorPresentation
Background
Pyatt Broadmark Management, LLC (“PBM”) launched the
PBRELF I in August 2010 in partnership with Broadmark
Capital, LLC, a FINRA member broker-dealer established in
1987
PBRELF I is satisfying an unmet need in the US credit market
by providing short-term loans secured by real estate to home
builders, developers, real estate investors and businesses looking
to expand real property facilities
Since launch, PBRELF I has written 313 loans and has delivered
an annualized return since inception of 11.76% to investors
3
InvestorPresentation
Fund Advantage vs Individual Loans
Provides a high benefit to cost way to invest in loans
Investor avoids the hassle of qualifying loans on the front end
Consistent and proven management team monitors each
loan and addresses and cures defaults
Offers a diversified loan portfolio with 150 loans
Measurable performance with a 5 year history
Fund offers either monthly interest paid by ACH or
automatic reinvestment
Audited financial statements and monthly reporting
4
InvestorPresentation
Why Pyatt Broadmark:
Seasoned team with proven management structure
No leverage
First position, senior secured loans only
Consistent Performance
Personal guarantees required of borrowers
Rigorous underwriting standards (see next page for specifics)
Max Loan to Value: 65%
Regionally focused in the Pacific Northwest
5
InvestorPresentation
Underwriting Process
Our team adheres to a strict underwriting process
Documents necessary prior to underwriting
6
From Borrower
Credit Application
Operating Agreement
Business Financials
Business Tax Returns
Guarantor Financials
Guarantor Tax Returns
Collateral Confirmation:
Independent Appraisal Report
Preliminary Title Report
Purchase & Sale Agreement
Itemized Budget Review
Building Permit, Plans, Specs
Borrower’s Marketing Plan & Material
Tax Records & Property Info
InvestorPresentation
Investor Terms
The Fund raises capital through the issuance of membership
interests in a limited liability company
$100,000 minimum investment with the current capacity to
accept up to $5M per month
Investor return:
Investors receive 20% of origination fee income, and 80% of
interest income (less direct fund expenses, e.g. taxes and audit). The
balance represents management fees and operating costs.
Monthly cash distributions paid directly to investor’s bank account
Redemption option after 1 year; then quarterly
7
InvestorPresentation
Monthly Cash Distributions
8
Historical Cash Distributions through July 2015
Note: Return data as of July 31, 2015. Assumes reinvestment.
InvestorPresentation
Consistent Performance
9
Historical returns have remained steady over time, even as AUM has increased
November 2010 dip: due to excess cash on hand.
December 2013 spike: due to accrued penalty interest recovered from a loan in default.
InvestorPresentation
Loan Economics
10
Loan economics:
Avg. Life of Loan 8.5 months
Avg. Origination fee 3.4%
Avg. Interest rates 12.2%
Annualized loan return target 18% to 20%
Out of 359 loans written across both funds, only three have been put into
foreclosure.
Of these foreclosures, two have been completed with no loss of principal.
The third, a strip center in Spokane, WA, is recently REO (real-estate owned).
PBM has engaged a commercial real estate brokerage firm to fill vacancies
and sell the property. Principle owed at the time of foreclosure was 64.3% of
appraised value.
InvestorPresentation
Current Loan Portfolio: Snapshot
11
Current portfolio
150 loans
Face value of $149.6M
Appraised collateral of $257.4M
Repaid portfolio
163 repaid loans
Face value of $88.3M
Appraised collateral of $151.7M
Max Loan
to Value:
(65%)
Current
Portfolio Loan
to Value
58%
Borrower
Equity 42%
PBRELF I
InvestorPresentation
Why does this opportunity exist?
12
Historically these types of loans were offered by regional banks
“ … Private builders have traditionally relied on small or regional banks for funding. But many of those lenders
stopped making loans for construction and development during the financial crisis and have been slow to
resume…”
Robbie Whelan and Dawn Wotapka, WSJ, July 15, 2013
As a result of the real estate downturn, the remaining regional banks
were left with too much real estate on their balance sheet
Surviving regional banks have completely discontinued this type of
lending due to Dodd-Frank
“Community banks lost 6 per cent in market share between 2006 and mid-2010, during the worst of the crisis.
But, since the passage of Dodd-Frank in early 2010, the decline in market share has doubled to more than 12
per cent.”
Financial Times, February 8, 2015
Traditional lenders have become strictly cash flow lenders as
opposed to asset based lenders.
InvestorPresentation
Why does this opportunity exist?
13
Equity partners take a big bite out of profits
Outside equity partners demand to be paid first
Outside equity partners still require coupon payments
50% or more of the profits
Banks may not be able to lend in the future
“Dodd-Frank’s regulatory burdens are driving consolidation, and could result in lending markets less able to
serve core economic demands”
Marshall Lux, Boston Consulting Group, February 9, 2015
The outlook on construction activity and demand for our loans
looks strong
“Overall, forecast results on a construction spending basis is that overall activity for non-residential buildings is
predicted to be up 7.7 percent in 2015 and 8.2 percent in 2016.”
Kermit Baker – American Institute of Architects, February 10, 2015
InvestorPresentation
Diversifying away from volatility
As the Federal Reserve raises interest rates, financial
markets will likely become more volatile
Historically, real estate asset backed loans have had a
low correlation to stocks and bonds
This makes them a desirable investment with which
to diversify a portfolio and potentially provide
protection against shocks to the market
14
InvestorPresentation
Reporting and auditing
15
The Fund is valued and reported to investors monthly
All sales through 25 year old FINRA broker-dealer
Fund audited by Bader Martin P.S., Seattle, WA, a large
regional CPA firm
2014 audit is available for review
Loan recording numbers available for independent review
Loan files available for inspection in our office
Multiple investor references
InvestorPresentation
Risk Factors & Disclaimers
Prospective investors should be aware that an investment in PBRELF I is speculative and involves a high degree of
risk. Identified risks include a dependence on senior management, the quality and quantity of potential loans available
given the Fund’s stated investment criteria, real estate valuations and market dynamics, borrower risks, interest rate risk,
regulatory risk. Additional risks and uncertainties not presently known to Pyatt Broadmark Management, LLC (“PBM”),
manager of PBRELF I, or to affiliate, Broadmark Real Estate Management (“BREM”), or which PBM currently deem
immaterial, may also have an adverse effect on the performance or success of PBRELF I. In particular, the Fund’s
performance may be affected by changes in market or economic conditions and in legal, regulatory and tax requirements.
Loans in PBRELF I are considered Level III assets, meaning there is no active secondary market and no observable
pricing mechanism. PBRELF I does not anticipate a secondary market for these loans developing. Thus, pricing of loans
is at par unless the loan is impaired. An immediate 10% write down against all capital accounts is taken on any loan in
default. Income is distributed or reinvested monthly.
This material has been prepared as a matter of general information. It is not intended to be a complete description of any
security or Fund mentioned and is not an offer to buy or offer to sell any security. All facts and statistics are from
sources believed reliable, but are not guaranteed as to accuracy. Some of the information in this document may contain
projections or other forward-looking statements regarding future events or the future financial performance of the
PBRELF I. We wish to caution you that these statements are only estimates and that actual events or results may differ
materially. Broadmark Capital, LLC has been engaged by Pyatt Broadmark Management, LLC, manager of PBRELF I,
to assist in raising capital for PBRELF I. Broadmark has also been engaged by Broadmark Real Estate Management
(BREM) to assist in raising capital for Broadmark Real Estate Lending Fund II (Fund II). BREM manages Fund II in a
manner similar to PBRELF I, with an exception being a focus on the Mountain West region. Broadmark will receive a
cash commission upon success. For further detail, please see the complete set of closing documents.
Broadmark Capital, LLC – August 2015
16
InvestorPresentation
Risk Factors & Disclaimers, cont.
The Pyatt Broadmark Real Estate Lending Fund I (“PBRELF I”) units may be sold only to “accredited investors,”
which for natural persons are investors who meet certain minimum annual income or net worth thresholds; the units
are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not
required to comply with specific disclosure requirements that apply to registration under the Securities Act; the
Securities and Exchange Commission has not passed upon the merits of or given its approval to the units, the terms
of the offering, or the accuracy or completeness of any offering materials; the units are subject to legal restrictions
on transfer and resale and investors should not assume they will be able to resell their units; investing in units
involves risk, and investors should be able to bear the loss of their investment; the units offered are not subject to
the protections of the Investment Company Act; the performance data presented here represents past performance;
past performance does not guarantee future results; current performance may be lower or higher than the
performance data presented; PBRELF I is not required by law to follow any standard methodology when calculating
and representing performance data; the performance data may not be directly comparable to the performance of
other funds or investment products; performance presented here are net of fees, assumes reinvestment, is current as
of July 31, 2015, and is based on the Fund’s inception August 1, 2010.
Broadmark Capital, LLC – August 2015
17
InvestorPresentation
Borrower Testimonials
18
Economics
“PBM has financed numerous development, construction, and rehab loans for us. Their
ability to close a loan quickly combined with their prompt draw funding has allowed us to
make bargain purchases and take advantage of vendor and subcontractor discounts.”
Opportunity Cost
“I really appreciate all you did for us. Having our original construction loan mature before
we qualified for conventional financing could have cost us our business. You stepped up
and helped us. I would recommend you in the future without hesitation!”
Customer Service
“Pyatt Broadmark separates themselves by doing what they say they are going to do. I have
worked with other private lenders and they do not compare to the service and execution that
Pyatt Broadmark delivers. They will always have a first right of refusal on my future projects.”
“Being a young developer/builder I encounter a lot of challenges. Pyatt Broadmark has been a
valuable business partner to have through the process of guidelines, budgeting, and
management. I know that I can pick up the phone and call these guys at a drop of a hat and
they will always respond and assist me with whatever I need .”
InvestorPresentation
Team Bios
Jeffrey Pyatt, Founder: Mr. Pyatt has served as Chairman, CEO, or President of several Northwest companies
over the last 22 years, in addition to leading in various capacities within the community.
Mr. Pyatt is an owner of Private Lenders Group, a private lending fund based in Bellevue, Washington. Mr. Pyatt
served as President and CEO of Pacific Financial Services Corporation from July 1994 through March 1999. Pacific
Financial was an asset-based lender located in Bellevue, Washington. Mr. Pyatt built Pacific from a start-up to being
a leader in its market, before orchestrating the successful sale of the company.
After receiving his undergraduate degree in accounting and a Master of Taxation degree from the University of
Denver, Mr. Pyatt joined the tax department of Moss Adams, a regional CPA firm in Seattle. After leaving public
accounting, Mr. Pyatt was involved in a number of acquisitions, dispositions and turn-around of companies in the
Northwest. These companies had revenues ranging from less than $1 million to more than $700 million, both
privately and publicly held.
He has also participated in the initial financing rounds of a number of telecommunications companies and currently
serves as a Director of 911 ETC, Inc.
Mr. Pyatt is active in the community, both civically and politically. He has served on the boards of three Boys and
Girls Clubs in King County since 1984 and other charitable boards. He is a past President of Park Hill Rotary of
Seattle and Eastside F.C. He currently serves on the board of directors of King County Sexual Assault Resource
Center and is a founding member of Lake Washington Velo.
19
InvestorPresentation
Team Bios
Joseph Schocken, Founder Mr. Schocken is the founder and president of Broadmark Capital, LLC and its
predecessor, Broadmark Capital Corporation. He is an honors graduate of the University of Washington and holds an
MBA from Harvard University. He holds Series 7, 24, 63 and 79 FINRA registrations.
With over 30 years as an investment banker, Mr. Schocken has extensive knowledge of the financial services industry and
established relationships with both strategic and institutional investors in the United States and internationally. These
projects have included private placements, debt offerings, mergers, asset purchases and public offerings in a broad array
of industries including technology, life science, broadcasting and travel. Prior to forming Broadmark Capital in 1987, Mr.
Schocken was a partner in several private investment banking firms, including a small New York Stock Exchange
member firm where he managed the corporate finance and real estate departments.
Throughout his career as an investment banker, Mr. Schocken has also been an active private investor and has worked
with a number of exceptional entrepreneurs. As an investor, board member and mentor, Mr. Schocken has played a
pivotal role in the development of numerous significant enterprises. Notable examples include Bennett Environmental
(AMEX: BEL), Optiva (acquired by Phillips) and Universal Access, Inc. (NASDAQ: UAXS), HipCricket, Inc., and
Omeros Corporation (NASDAQ: OMER). In each case, Mr. Schocken served as an influential advisor to management in
the development of a capital formation strategy that positioned the company for growth. Broadmark Asset Management
Company, which he helped form, received both direct investment and a $100-million allocation from CALPERS in 2000.
In addition, Mr. Schocken is significantly involved in national economic policy development, playing a major role in the
2012 JOBS Act. He is a member of the National Advisory Board of the Democratic National Committee and an avid
cyclist.
20
InvestorPresentation
Team Bios
Adam Fountain, Managing Director Mr. Fountain graduated with a B.A. in International Relations from Stanford
University in 2001. He holds Series 7, Series 63, Series 66 and Series 79 FINRA registrations. Mr. Fountain's responsibilities
at Broadmark include investor and client sourcing, and transaction management across all of Broadmark's focus areas
including life sciences, technology, new media, middle market, real estate, telecommunications and financial services. His
current interests include life science companies that have demonstrated proof of concept, particularly drugs with clinical data
and devices with at least animal data, and some mitigation of risk, e.g. shortened regulatory paths, 505(b)2, etc. Areas of
interest in technology include SaaS, new media, and any revenue generating high growth companies. Responsibilities also
include all activities related to Broadmark's merchant banking function: identifying and qualifying potential direct investments
and producing Broadmark white papers. In addition to these responsibilities, Mr. Fountain is a part owner of Pyatt
Broadmark Management, LLC and responsible for their investor relations and fund management. He also has a significant
support role for Broadmark relating to regulatory compliance.
Prior to joining Broadmark, Mr. Fountain was an Associate at L.E.K. Consulting in Los Angeles, CA from 2001 through
2003, an international strategic consulting firm headquartered in London. While at L.E.K., he worked primarily in the life
sciences practice. Key projects included developing a product marketing and distribution strategy for an established European
pharmaceutical company, formulating a product development and partnering strategy for a start-up biotechnology company,
and preparing for the likely adoption of a new product in the medical device industry.
Outside of Broadmark, Mr. Fountain was a co-founder of WINGS: The Washington Medical Technology Angel Network,
and formerly served as a Director. In addition to his role at WINGS, he has served on the Executive Committee for the
WBBA’s annual life science conference for several years. He is active in his church and resides north of Seattle with his wife,
Emily, and their son, Samuel, and daughter, Stella. He enjoys riding his bike, cooking, brewing, fantasy baseball, and
beekeeping.
21
InvestorPresentation
Team Bios
Alan Seidner, Senior Consultant A graduate of University of Southern California School of Business, Seidner began his career with Merrill
Lynch and then joined Security Pacific Bank as a Trust Investment Officer responsible for several large investment advisory accounts.
Thereafter, he served as the Senior Government Securities Sales Representative in the Investment Department of the Bank for National
Accounts. In 1980, Seidner formed his own investment management and consulting firm, Seidner & Company, Pasadena, CA, managing
investment portfolios in excess of $700 million. Seidner & Company’s client roster included healthcare organizations, high net worth private
investors, major corporations, non-profit institutions and municipalities. In 1998, Seidner & Company ceased and its clients were invited to
become clients of Fiduciary Trust International of California (FTIC). From 1998 until 2002, Seidner was an independent consultant and a
Senior Consultant to FTIC and its parent, Fiduciary Trust International, which merged with Franklin Resources, parent of Franklin
Templeton. From October 2002 to June 2004 he served as a Senior Vice President with FTIC with business development and client service
responsibilities. From 2005 thru 2007, Seidner was a Senior Vice President at Denver Investment Advisors. Currently he is a Senior
Consultant for Client Development with the Pyatt Broadmark Real Estate Lending Funds. He holds Series 7 and Series 63 FINRA
registrations.
As an author, Seidner has written financial reference works, including: Corporate Investments Manual: Short & Intermediate Term Fixed
Income Securities (Warren Gorham & Lamont Publishers, January 1989), which was used as a course text by the American Management
Association. He co-authored with William O. Cleverley, Ph.D., Professor of Finance at Ohio State University, Cash and Investment
Management for the Healthcare Industry (Aspen Publishing, November, 1989). He co-authored, with John Zietlow, Ph.D., a former
Professor of Finance at Indiana State University, and JoAnne Hankin, former Vice President, Finance at the UCLA Foundation, Financial
Management for Nonprofit Organizations (John Wiley & Sons, Inc., May 1998) and Financial Management for Nonprofit Organizations:
Policies & Practices (John Wiley & Sons January 2007). He also co-authored Cash & Investment Management for Nonprofit Organizations
with John Zietlow, Ph.D. (John Wiley & Sons April 2007).
He has served as a speaker on investment techniques and strategies at prominent financial conferences, such as those of The American
Institute of Certified Public Accountants, as well as at the Graduate Schools of Business of Duke University, Ohio State University, the
University of California (Berkeley), the University of North Carolina and the University of Southern California. Seidner has also provided
testimony before Federal Government agencies on the measurement of pension fund investment performance.
22
InvestorPresentation
Team Bios
Geir Watland, Senior Consultant Mr. Watland is an independent contractor representing Broadmark Capital and
the Broadmark Real Estate Fund family as a strategic marketing consultant and is an instrumental part of
Broadmark’s business development efforts. Through his consulting firm, Viking Financial Consulting, Mr. Watland
has assisted a number of asset managers including numerous hedge funds, fund of hedge funds and our own real
estate lending practice and has provided consultancy to a number of institutional and individual investors.
Mr. Watland began his career with the National Association of Securities Dealers (Now FINRA). He has since
worked with Canterbury Consulting, Bank of America/US Trust, BlackRock/Merrill Lynch Investment Managers,
Russell/Mellon Analytical Services and Rainier Investment Management in a variety of capacities including sales,
marketing, institutional client relations and consulting. In these roles Mr. Watland has built networks of investors
and asset managers in multiple countries.
Mr. Watland holds dual degrees in Business Administration and Economics from the University of Washington. He
also holds the Chartered Financial Analyst designation, the Chartered Alternative Investment Analyst designation
and the Series 7, 63 and 65 securities licenses.
23
InvestorPresentation
Team Bios
Joanne Van Sickle, Controller Ms. Van Sickle has served as Controller for Private Lenders Group since 2005.
Ms. Van Sickle began her career in 1983 as a CPA in the auditing department of Touche Ross.
Between 1991 and 2004, she maintained a private accounting practice, working with small companies, mainly in the
construction, real estate, and retail industries.
She continues to act as the part time administrator for The Glaser Foundation, a local private foundation with $15
million in assets, a position she has held since 1991. The foundation makes up to 100 grants each year to local
charitable organizations providing direct line services, primarily to children and the elderly in the Pacific Northwest.
Ms. Van Sickle has lived in Bellevue since 1985 with her husband and three sons. Her two older sons are now
serving in the US Navy.
24
InvestorPresentation
Team Bios
Bryan Graf was born and raised in Central Washington, surrounded by a family actively involved in the real estate
business there. At the University of Washington, he earned a Bachelor of Arts in Business Administration with a
focus on finance and marketing. He also successfully completed a sales certificate program through the UW’s
Foster School of Business and was part of the Undergraduate Management and Consulting Association. Bryan is an
alumni of University of Washington’s Beta Theta Pi fraternity.
Before joining Pyatt Broadmark Management, LLC, Bryan spent 3 years at Ewing and Clark, Inc., managing the
personal real estate portfolio of the owner and specialized in leasing. This portfolio includes multi-family, mixed-
use, and commercial buildings throughout the greater Seattle area.
Bryan is a licensed real estate broker in Washington State and is in the process of obtaining the CCIM (Certified
Commercial Investment Member) designation. He currently lives in the Queen Anne neighborhood of Seattle and
is a Tyee season ticket holder to University of Washington football. In his spare time he plays golf, basketball, and
skis. Bryan recently joined the Board of Directors at the Wallingford Boys and Girls Club and will continue
developing the Club’s success and help it remain fiscally healthy.
25
InvestorPresentation
Sample Loan Profiles
Seattle, WA - Loan 2015-012
In January 2015, PBRELF I wrote a first deed of trust, $1,340,000 bridge loan on two
5,500 SF parcels (11,000 SF total) in the Eastlake neighborhood of Seattle. The
commercial appraisal valued the land for both parcels at $2,260,000 ($226,000 per
buildable unit) giving the Fund a 59% LTV. Although the Fund generally does not lend
over 50% LTV against vacant land, because the borrower already had a master use permit
(MUP), had submitted an application for the building permits, and was building highly
marketable townhomes in a desirable neighborhood, we allowed a 59% LTV. The
borrower needed a bridge loan because his purchase loan was coming due but he had not
yet obtained the building permits necessary for a bank construction loan. He planned to
obtain the building permits, secure traditional construction financing and repay the Fund
in full in 90 days. In case the borrower was unable to secure bank financing, we
underwrote the entire project and concluded that we could provide financing to complete
the project if necessary. The building permits were issued, the borrower obtained a bank
loan and the Fund was repaid in full within 90 days.
26
InvestorPresentation
Sample Loan Profiles cont.
Seattle, WA - Loan 2015-029
In March 2015, PBRELF I wrote a first position acquisition and construction loan for a
16 unit townhome site. Located in the Columbia City neighborhood of Seattle, the
subject site is flat and near a Link Light Rail Station. The Borrower/Builder acquired the
fully permitted property, including the engineering and architectural plans, from Quadrant
Homes for $106,000/unit.
PBRELF I’s loan is $4,600,000, which includes acquisition funds and costs to build. At
an appraised value of $7,104,000 ($444,000/unit), PBRELF I’s loan-to-value ratio (LTV)
is 64.75%. Each modern 4-Star Greenbuilt townhome will be approximately 1,500 square
feet and include 3 bedrooms, 2.5 baths, and a 1 car garage. The borrower is a current
client of PBRELF I, and we introduced him to the real estate agent who found this
opportunity. This agent, who specializes in finding off market land for sale, often asks us
to find builders who would like to purchase land for development. We then provide the
financing on these deals. By providing not only a good loan product, but by also
facilitating business opportunities for all parties involved, PBRELF I has established itself
as an active member of the local real estate community. 27
InvestorPresentation
Sample Loan Profiles cont.
Graham, WA - Loan 2015-060
In May 2015, PBRELF I, LLC wrote a $165,000 construction loan for a single family home
with an as-completed appraised value of $254,000, giving Fund I a loan-to-value ratio
(LTV) of 65%. Located about 20 miles from Tacoma and 15 miles from Joint Base Lewis-
McCord, the home will be a 1,684 square foot rambler with 3 bedrooms, 2 bathrooms on a
3.6 acre site. The home has been presold for $254,000 with an executed purchase and sale
agreement and an earnest money deposit in place. Because our primary goal is capital
preservation, the Fund required a third party appraisal to confirm the value of the property
despite the pre-sale.
The Fund has written other loans for this borrower, including a construction loan (loan
2014-061) in June 2014 for a single family home in Graham. In May 2015, the borrower
sold the home and repaid the Fund prior to the loan maturity. To date, PBRELF I has
funded 8 loans with this borrower in this area, four of which have been repaid in full.
PBRELF has helped this small builder increase his production and make solid profits,
enabling him to continue to purchase land for development, and stay active in a vibrant real
estate market. 28
InvestorPresentation
Sample Loan Profiles cont.
Kirkland, WA - Loan 2015-069
In June 2015, PBRELF I wrote a $900,000 acquisition and development loan in the
Juanita neighborhood of Kirkland, WA. The property is a permitted and approved 6 unit
short plat. The borrower will use the proceeds of this loan to purchase the property and
further develop it into finished, buildable lots. The value of the completed lots is
$1,650,000, giving the Fund a loan to value ratio (LTV) of 55%. As with all development
or construction loans, PBRELF I does not release all of the funds at one time. In this case
the Fund released approximately $345,000 at closing towards the purchase. The “as is”
appraised value of the lots is $892,000, giving the Fund an LTV of 39% at closing.
As the improvements progress, additional funds are released, keeping the LTV consistent
with our underwriting standards during the entire term of the loan. Coincidentally, the
seller of this property had also used PBRELF I financing to purchase and develop the
property into short plats in April 2015. The opportunity arose for him to sell the property
at a profit, including the grading and development permits issued by the city, and he chose
to do so. The buyer will continue the development process and construct homes.
29
InvestorPresentation
Contact Info
30
Adam J. Fountain
Broadmark Capital, LLC
1800 One Union Square
600 University Street
Seattle, WA 98101
(206) 623-1200, x120
afountain@broadmark.com

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Pyatt Broadmark Investor Presentation Fund I

  • 1. Pyatt Broadmark Real Estate Lending Fund I (“PBRELF I”) August 2015
  • 2. InvestorPresentation Fund Summary PBRELF I invests in short-term, first lien notes issued against real estate projects in the Pacific Northwest (Washington, Oregon, Idaho) with Seattle as the core market The goal of PBRELF I is to provide investors with a high-yield debt investment while minimizing the risk of principal loss and maintaining near-term liquidity Roughly $132.6M in assets under management 2
  • 3. InvestorPresentation Background Pyatt Broadmark Management, LLC (“PBM”) launched the PBRELF I in August 2010 in partnership with Broadmark Capital, LLC, a FINRA member broker-dealer established in 1987 PBRELF I is satisfying an unmet need in the US credit market by providing short-term loans secured by real estate to home builders, developers, real estate investors and businesses looking to expand real property facilities Since launch, PBRELF I has written 313 loans and has delivered an annualized return since inception of 11.76% to investors 3
  • 4. InvestorPresentation Fund Advantage vs Individual Loans Provides a high benefit to cost way to invest in loans Investor avoids the hassle of qualifying loans on the front end Consistent and proven management team monitors each loan and addresses and cures defaults Offers a diversified loan portfolio with 150 loans Measurable performance with a 5 year history Fund offers either monthly interest paid by ACH or automatic reinvestment Audited financial statements and monthly reporting 4
  • 5. InvestorPresentation Why Pyatt Broadmark: Seasoned team with proven management structure No leverage First position, senior secured loans only Consistent Performance Personal guarantees required of borrowers Rigorous underwriting standards (see next page for specifics) Max Loan to Value: 65% Regionally focused in the Pacific Northwest 5
  • 6. InvestorPresentation Underwriting Process Our team adheres to a strict underwriting process Documents necessary prior to underwriting 6 From Borrower Credit Application Operating Agreement Business Financials Business Tax Returns Guarantor Financials Guarantor Tax Returns Collateral Confirmation: Independent Appraisal Report Preliminary Title Report Purchase & Sale Agreement Itemized Budget Review Building Permit, Plans, Specs Borrower’s Marketing Plan & Material Tax Records & Property Info
  • 7. InvestorPresentation Investor Terms The Fund raises capital through the issuance of membership interests in a limited liability company $100,000 minimum investment with the current capacity to accept up to $5M per month Investor return: Investors receive 20% of origination fee income, and 80% of interest income (less direct fund expenses, e.g. taxes and audit). The balance represents management fees and operating costs. Monthly cash distributions paid directly to investor’s bank account Redemption option after 1 year; then quarterly 7
  • 8. InvestorPresentation Monthly Cash Distributions 8 Historical Cash Distributions through July 2015 Note: Return data as of July 31, 2015. Assumes reinvestment.
  • 9. InvestorPresentation Consistent Performance 9 Historical returns have remained steady over time, even as AUM has increased November 2010 dip: due to excess cash on hand. December 2013 spike: due to accrued penalty interest recovered from a loan in default.
  • 10. InvestorPresentation Loan Economics 10 Loan economics: Avg. Life of Loan 8.5 months Avg. Origination fee 3.4% Avg. Interest rates 12.2% Annualized loan return target 18% to 20% Out of 359 loans written across both funds, only three have been put into foreclosure. Of these foreclosures, two have been completed with no loss of principal. The third, a strip center in Spokane, WA, is recently REO (real-estate owned). PBM has engaged a commercial real estate brokerage firm to fill vacancies and sell the property. Principle owed at the time of foreclosure was 64.3% of appraised value.
  • 11. InvestorPresentation Current Loan Portfolio: Snapshot 11 Current portfolio 150 loans Face value of $149.6M Appraised collateral of $257.4M Repaid portfolio 163 repaid loans Face value of $88.3M Appraised collateral of $151.7M Max Loan to Value: (65%) Current Portfolio Loan to Value 58% Borrower Equity 42% PBRELF I
  • 12. InvestorPresentation Why does this opportunity exist? 12 Historically these types of loans were offered by regional banks “ … Private builders have traditionally relied on small or regional banks for funding. But many of those lenders stopped making loans for construction and development during the financial crisis and have been slow to resume…” Robbie Whelan and Dawn Wotapka, WSJ, July 15, 2013 As a result of the real estate downturn, the remaining regional banks were left with too much real estate on their balance sheet Surviving regional banks have completely discontinued this type of lending due to Dodd-Frank “Community banks lost 6 per cent in market share between 2006 and mid-2010, during the worst of the crisis. But, since the passage of Dodd-Frank in early 2010, the decline in market share has doubled to more than 12 per cent.” Financial Times, February 8, 2015 Traditional lenders have become strictly cash flow lenders as opposed to asset based lenders.
  • 13. InvestorPresentation Why does this opportunity exist? 13 Equity partners take a big bite out of profits Outside equity partners demand to be paid first Outside equity partners still require coupon payments 50% or more of the profits Banks may not be able to lend in the future “Dodd-Frank’s regulatory burdens are driving consolidation, and could result in lending markets less able to serve core economic demands” Marshall Lux, Boston Consulting Group, February 9, 2015 The outlook on construction activity and demand for our loans looks strong “Overall, forecast results on a construction spending basis is that overall activity for non-residential buildings is predicted to be up 7.7 percent in 2015 and 8.2 percent in 2016.” Kermit Baker – American Institute of Architects, February 10, 2015
  • 14. InvestorPresentation Diversifying away from volatility As the Federal Reserve raises interest rates, financial markets will likely become more volatile Historically, real estate asset backed loans have had a low correlation to stocks and bonds This makes them a desirable investment with which to diversify a portfolio and potentially provide protection against shocks to the market 14
  • 15. InvestorPresentation Reporting and auditing 15 The Fund is valued and reported to investors monthly All sales through 25 year old FINRA broker-dealer Fund audited by Bader Martin P.S., Seattle, WA, a large regional CPA firm 2014 audit is available for review Loan recording numbers available for independent review Loan files available for inspection in our office Multiple investor references
  • 16. InvestorPresentation Risk Factors & Disclaimers Prospective investors should be aware that an investment in PBRELF I is speculative and involves a high degree of risk. Identified risks include a dependence on senior management, the quality and quantity of potential loans available given the Fund’s stated investment criteria, real estate valuations and market dynamics, borrower risks, interest rate risk, regulatory risk. Additional risks and uncertainties not presently known to Pyatt Broadmark Management, LLC (“PBM”), manager of PBRELF I, or to affiliate, Broadmark Real Estate Management (“BREM”), or which PBM currently deem immaterial, may also have an adverse effect on the performance or success of PBRELF I. In particular, the Fund’s performance may be affected by changes in market or economic conditions and in legal, regulatory and tax requirements. Loans in PBRELF I are considered Level III assets, meaning there is no active secondary market and no observable pricing mechanism. PBRELF I does not anticipate a secondary market for these loans developing. Thus, pricing of loans is at par unless the loan is impaired. An immediate 10% write down against all capital accounts is taken on any loan in default. Income is distributed or reinvested monthly. This material has been prepared as a matter of general information. It is not intended to be a complete description of any security or Fund mentioned and is not an offer to buy or offer to sell any security. All facts and statistics are from sources believed reliable, but are not guaranteed as to accuracy. Some of the information in this document may contain projections or other forward-looking statements regarding future events or the future financial performance of the PBRELF I. We wish to caution you that these statements are only estimates and that actual events or results may differ materially. Broadmark Capital, LLC has been engaged by Pyatt Broadmark Management, LLC, manager of PBRELF I, to assist in raising capital for PBRELF I. Broadmark has also been engaged by Broadmark Real Estate Management (BREM) to assist in raising capital for Broadmark Real Estate Lending Fund II (Fund II). BREM manages Fund II in a manner similar to PBRELF I, with an exception being a focus on the Mountain West region. Broadmark will receive a cash commission upon success. For further detail, please see the complete set of closing documents. Broadmark Capital, LLC – August 2015 16
  • 17. InvestorPresentation Risk Factors & Disclaimers, cont. The Pyatt Broadmark Real Estate Lending Fund I (“PBRELF I”) units may be sold only to “accredited investors,” which for natural persons are investors who meet certain minimum annual income or net worth thresholds; the units are being offered in reliance on an exemption from the registration requirements of the Securities Act and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act; the Securities and Exchange Commission has not passed upon the merits of or given its approval to the units, the terms of the offering, or the accuracy or completeness of any offering materials; the units are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their units; investing in units involves risk, and investors should be able to bear the loss of their investment; the units offered are not subject to the protections of the Investment Company Act; the performance data presented here represents past performance; past performance does not guarantee future results; current performance may be lower or higher than the performance data presented; PBRELF I is not required by law to follow any standard methodology when calculating and representing performance data; the performance data may not be directly comparable to the performance of other funds or investment products; performance presented here are net of fees, assumes reinvestment, is current as of July 31, 2015, and is based on the Fund’s inception August 1, 2010. Broadmark Capital, LLC – August 2015 17
  • 18. InvestorPresentation Borrower Testimonials 18 Economics “PBM has financed numerous development, construction, and rehab loans for us. Their ability to close a loan quickly combined with their prompt draw funding has allowed us to make bargain purchases and take advantage of vendor and subcontractor discounts.” Opportunity Cost “I really appreciate all you did for us. Having our original construction loan mature before we qualified for conventional financing could have cost us our business. You stepped up and helped us. I would recommend you in the future without hesitation!” Customer Service “Pyatt Broadmark separates themselves by doing what they say they are going to do. I have worked with other private lenders and they do not compare to the service and execution that Pyatt Broadmark delivers. They will always have a first right of refusal on my future projects.” “Being a young developer/builder I encounter a lot of challenges. Pyatt Broadmark has been a valuable business partner to have through the process of guidelines, budgeting, and management. I know that I can pick up the phone and call these guys at a drop of a hat and they will always respond and assist me with whatever I need .”
  • 19. InvestorPresentation Team Bios Jeffrey Pyatt, Founder: Mr. Pyatt has served as Chairman, CEO, or President of several Northwest companies over the last 22 years, in addition to leading in various capacities within the community. Mr. Pyatt is an owner of Private Lenders Group, a private lending fund based in Bellevue, Washington. Mr. Pyatt served as President and CEO of Pacific Financial Services Corporation from July 1994 through March 1999. Pacific Financial was an asset-based lender located in Bellevue, Washington. Mr. Pyatt built Pacific from a start-up to being a leader in its market, before orchestrating the successful sale of the company. After receiving his undergraduate degree in accounting and a Master of Taxation degree from the University of Denver, Mr. Pyatt joined the tax department of Moss Adams, a regional CPA firm in Seattle. After leaving public accounting, Mr. Pyatt was involved in a number of acquisitions, dispositions and turn-around of companies in the Northwest. These companies had revenues ranging from less than $1 million to more than $700 million, both privately and publicly held. He has also participated in the initial financing rounds of a number of telecommunications companies and currently serves as a Director of 911 ETC, Inc. Mr. Pyatt is active in the community, both civically and politically. He has served on the boards of three Boys and Girls Clubs in King County since 1984 and other charitable boards. He is a past President of Park Hill Rotary of Seattle and Eastside F.C. He currently serves on the board of directors of King County Sexual Assault Resource Center and is a founding member of Lake Washington Velo. 19
  • 20. InvestorPresentation Team Bios Joseph Schocken, Founder Mr. Schocken is the founder and president of Broadmark Capital, LLC and its predecessor, Broadmark Capital Corporation. He is an honors graduate of the University of Washington and holds an MBA from Harvard University. He holds Series 7, 24, 63 and 79 FINRA registrations. With over 30 years as an investment banker, Mr. Schocken has extensive knowledge of the financial services industry and established relationships with both strategic and institutional investors in the United States and internationally. These projects have included private placements, debt offerings, mergers, asset purchases and public offerings in a broad array of industries including technology, life science, broadcasting and travel. Prior to forming Broadmark Capital in 1987, Mr. Schocken was a partner in several private investment banking firms, including a small New York Stock Exchange member firm where he managed the corporate finance and real estate departments. Throughout his career as an investment banker, Mr. Schocken has also been an active private investor and has worked with a number of exceptional entrepreneurs. As an investor, board member and mentor, Mr. Schocken has played a pivotal role in the development of numerous significant enterprises. Notable examples include Bennett Environmental (AMEX: BEL), Optiva (acquired by Phillips) and Universal Access, Inc. (NASDAQ: UAXS), HipCricket, Inc., and Omeros Corporation (NASDAQ: OMER). In each case, Mr. Schocken served as an influential advisor to management in the development of a capital formation strategy that positioned the company for growth. Broadmark Asset Management Company, which he helped form, received both direct investment and a $100-million allocation from CALPERS in 2000. In addition, Mr. Schocken is significantly involved in national economic policy development, playing a major role in the 2012 JOBS Act. He is a member of the National Advisory Board of the Democratic National Committee and an avid cyclist. 20
  • 21. InvestorPresentation Team Bios Adam Fountain, Managing Director Mr. Fountain graduated with a B.A. in International Relations from Stanford University in 2001. He holds Series 7, Series 63, Series 66 and Series 79 FINRA registrations. Mr. Fountain's responsibilities at Broadmark include investor and client sourcing, and transaction management across all of Broadmark's focus areas including life sciences, technology, new media, middle market, real estate, telecommunications and financial services. His current interests include life science companies that have demonstrated proof of concept, particularly drugs with clinical data and devices with at least animal data, and some mitigation of risk, e.g. shortened regulatory paths, 505(b)2, etc. Areas of interest in technology include SaaS, new media, and any revenue generating high growth companies. Responsibilities also include all activities related to Broadmark's merchant banking function: identifying and qualifying potential direct investments and producing Broadmark white papers. In addition to these responsibilities, Mr. Fountain is a part owner of Pyatt Broadmark Management, LLC and responsible for their investor relations and fund management. He also has a significant support role for Broadmark relating to regulatory compliance. Prior to joining Broadmark, Mr. Fountain was an Associate at L.E.K. Consulting in Los Angeles, CA from 2001 through 2003, an international strategic consulting firm headquartered in London. While at L.E.K., he worked primarily in the life sciences practice. Key projects included developing a product marketing and distribution strategy for an established European pharmaceutical company, formulating a product development and partnering strategy for a start-up biotechnology company, and preparing for the likely adoption of a new product in the medical device industry. Outside of Broadmark, Mr. Fountain was a co-founder of WINGS: The Washington Medical Technology Angel Network, and formerly served as a Director. In addition to his role at WINGS, he has served on the Executive Committee for the WBBA’s annual life science conference for several years. He is active in his church and resides north of Seattle with his wife, Emily, and their son, Samuel, and daughter, Stella. He enjoys riding his bike, cooking, brewing, fantasy baseball, and beekeeping. 21
  • 22. InvestorPresentation Team Bios Alan Seidner, Senior Consultant A graduate of University of Southern California School of Business, Seidner began his career with Merrill Lynch and then joined Security Pacific Bank as a Trust Investment Officer responsible for several large investment advisory accounts. Thereafter, he served as the Senior Government Securities Sales Representative in the Investment Department of the Bank for National Accounts. In 1980, Seidner formed his own investment management and consulting firm, Seidner & Company, Pasadena, CA, managing investment portfolios in excess of $700 million. Seidner & Company’s client roster included healthcare organizations, high net worth private investors, major corporations, non-profit institutions and municipalities. In 1998, Seidner & Company ceased and its clients were invited to become clients of Fiduciary Trust International of California (FTIC). From 1998 until 2002, Seidner was an independent consultant and a Senior Consultant to FTIC and its parent, Fiduciary Trust International, which merged with Franklin Resources, parent of Franklin Templeton. From October 2002 to June 2004 he served as a Senior Vice President with FTIC with business development and client service responsibilities. From 2005 thru 2007, Seidner was a Senior Vice President at Denver Investment Advisors. Currently he is a Senior Consultant for Client Development with the Pyatt Broadmark Real Estate Lending Funds. He holds Series 7 and Series 63 FINRA registrations. As an author, Seidner has written financial reference works, including: Corporate Investments Manual: Short & Intermediate Term Fixed Income Securities (Warren Gorham & Lamont Publishers, January 1989), which was used as a course text by the American Management Association. He co-authored with William O. Cleverley, Ph.D., Professor of Finance at Ohio State University, Cash and Investment Management for the Healthcare Industry (Aspen Publishing, November, 1989). He co-authored, with John Zietlow, Ph.D., a former Professor of Finance at Indiana State University, and JoAnne Hankin, former Vice President, Finance at the UCLA Foundation, Financial Management for Nonprofit Organizations (John Wiley & Sons, Inc., May 1998) and Financial Management for Nonprofit Organizations: Policies & Practices (John Wiley & Sons January 2007). He also co-authored Cash & Investment Management for Nonprofit Organizations with John Zietlow, Ph.D. (John Wiley & Sons April 2007). He has served as a speaker on investment techniques and strategies at prominent financial conferences, such as those of The American Institute of Certified Public Accountants, as well as at the Graduate Schools of Business of Duke University, Ohio State University, the University of California (Berkeley), the University of North Carolina and the University of Southern California. Seidner has also provided testimony before Federal Government agencies on the measurement of pension fund investment performance. 22
  • 23. InvestorPresentation Team Bios Geir Watland, Senior Consultant Mr. Watland is an independent contractor representing Broadmark Capital and the Broadmark Real Estate Fund family as a strategic marketing consultant and is an instrumental part of Broadmark’s business development efforts. Through his consulting firm, Viking Financial Consulting, Mr. Watland has assisted a number of asset managers including numerous hedge funds, fund of hedge funds and our own real estate lending practice and has provided consultancy to a number of institutional and individual investors. Mr. Watland began his career with the National Association of Securities Dealers (Now FINRA). He has since worked with Canterbury Consulting, Bank of America/US Trust, BlackRock/Merrill Lynch Investment Managers, Russell/Mellon Analytical Services and Rainier Investment Management in a variety of capacities including sales, marketing, institutional client relations and consulting. In these roles Mr. Watland has built networks of investors and asset managers in multiple countries. Mr. Watland holds dual degrees in Business Administration and Economics from the University of Washington. He also holds the Chartered Financial Analyst designation, the Chartered Alternative Investment Analyst designation and the Series 7, 63 and 65 securities licenses. 23
  • 24. InvestorPresentation Team Bios Joanne Van Sickle, Controller Ms. Van Sickle has served as Controller for Private Lenders Group since 2005. Ms. Van Sickle began her career in 1983 as a CPA in the auditing department of Touche Ross. Between 1991 and 2004, she maintained a private accounting practice, working with small companies, mainly in the construction, real estate, and retail industries. She continues to act as the part time administrator for The Glaser Foundation, a local private foundation with $15 million in assets, a position she has held since 1991. The foundation makes up to 100 grants each year to local charitable organizations providing direct line services, primarily to children and the elderly in the Pacific Northwest. Ms. Van Sickle has lived in Bellevue since 1985 with her husband and three sons. Her two older sons are now serving in the US Navy. 24
  • 25. InvestorPresentation Team Bios Bryan Graf was born and raised in Central Washington, surrounded by a family actively involved in the real estate business there. At the University of Washington, he earned a Bachelor of Arts in Business Administration with a focus on finance and marketing. He also successfully completed a sales certificate program through the UW’s Foster School of Business and was part of the Undergraduate Management and Consulting Association. Bryan is an alumni of University of Washington’s Beta Theta Pi fraternity. Before joining Pyatt Broadmark Management, LLC, Bryan spent 3 years at Ewing and Clark, Inc., managing the personal real estate portfolio of the owner and specialized in leasing. This portfolio includes multi-family, mixed- use, and commercial buildings throughout the greater Seattle area. Bryan is a licensed real estate broker in Washington State and is in the process of obtaining the CCIM (Certified Commercial Investment Member) designation. He currently lives in the Queen Anne neighborhood of Seattle and is a Tyee season ticket holder to University of Washington football. In his spare time he plays golf, basketball, and skis. Bryan recently joined the Board of Directors at the Wallingford Boys and Girls Club and will continue developing the Club’s success and help it remain fiscally healthy. 25
  • 26. InvestorPresentation Sample Loan Profiles Seattle, WA - Loan 2015-012 In January 2015, PBRELF I wrote a first deed of trust, $1,340,000 bridge loan on two 5,500 SF parcels (11,000 SF total) in the Eastlake neighborhood of Seattle. The commercial appraisal valued the land for both parcels at $2,260,000 ($226,000 per buildable unit) giving the Fund a 59% LTV. Although the Fund generally does not lend over 50% LTV against vacant land, because the borrower already had a master use permit (MUP), had submitted an application for the building permits, and was building highly marketable townhomes in a desirable neighborhood, we allowed a 59% LTV. The borrower needed a bridge loan because his purchase loan was coming due but he had not yet obtained the building permits necessary for a bank construction loan. He planned to obtain the building permits, secure traditional construction financing and repay the Fund in full in 90 days. In case the borrower was unable to secure bank financing, we underwrote the entire project and concluded that we could provide financing to complete the project if necessary. The building permits were issued, the borrower obtained a bank loan and the Fund was repaid in full within 90 days. 26
  • 27. InvestorPresentation Sample Loan Profiles cont. Seattle, WA - Loan 2015-029 In March 2015, PBRELF I wrote a first position acquisition and construction loan for a 16 unit townhome site. Located in the Columbia City neighborhood of Seattle, the subject site is flat and near a Link Light Rail Station. The Borrower/Builder acquired the fully permitted property, including the engineering and architectural plans, from Quadrant Homes for $106,000/unit. PBRELF I’s loan is $4,600,000, which includes acquisition funds and costs to build. At an appraised value of $7,104,000 ($444,000/unit), PBRELF I’s loan-to-value ratio (LTV) is 64.75%. Each modern 4-Star Greenbuilt townhome will be approximately 1,500 square feet and include 3 bedrooms, 2.5 baths, and a 1 car garage. The borrower is a current client of PBRELF I, and we introduced him to the real estate agent who found this opportunity. This agent, who specializes in finding off market land for sale, often asks us to find builders who would like to purchase land for development. We then provide the financing on these deals. By providing not only a good loan product, but by also facilitating business opportunities for all parties involved, PBRELF I has established itself as an active member of the local real estate community. 27
  • 28. InvestorPresentation Sample Loan Profiles cont. Graham, WA - Loan 2015-060 In May 2015, PBRELF I, LLC wrote a $165,000 construction loan for a single family home with an as-completed appraised value of $254,000, giving Fund I a loan-to-value ratio (LTV) of 65%. Located about 20 miles from Tacoma and 15 miles from Joint Base Lewis- McCord, the home will be a 1,684 square foot rambler with 3 bedrooms, 2 bathrooms on a 3.6 acre site. The home has been presold for $254,000 with an executed purchase and sale agreement and an earnest money deposit in place. Because our primary goal is capital preservation, the Fund required a third party appraisal to confirm the value of the property despite the pre-sale. The Fund has written other loans for this borrower, including a construction loan (loan 2014-061) in June 2014 for a single family home in Graham. In May 2015, the borrower sold the home and repaid the Fund prior to the loan maturity. To date, PBRELF I has funded 8 loans with this borrower in this area, four of which have been repaid in full. PBRELF has helped this small builder increase his production and make solid profits, enabling him to continue to purchase land for development, and stay active in a vibrant real estate market. 28
  • 29. InvestorPresentation Sample Loan Profiles cont. Kirkland, WA - Loan 2015-069 In June 2015, PBRELF I wrote a $900,000 acquisition and development loan in the Juanita neighborhood of Kirkland, WA. The property is a permitted and approved 6 unit short plat. The borrower will use the proceeds of this loan to purchase the property and further develop it into finished, buildable lots. The value of the completed lots is $1,650,000, giving the Fund a loan to value ratio (LTV) of 55%. As with all development or construction loans, PBRELF I does not release all of the funds at one time. In this case the Fund released approximately $345,000 at closing towards the purchase. The “as is” appraised value of the lots is $892,000, giving the Fund an LTV of 39% at closing. As the improvements progress, additional funds are released, keeping the LTV consistent with our underwriting standards during the entire term of the loan. Coincidentally, the seller of this property had also used PBRELF I financing to purchase and develop the property into short plats in April 2015. The opportunity arose for him to sell the property at a profit, including the grading and development permits issued by the city, and he chose to do so. The buyer will continue the development process and construct homes. 29
  • 30. InvestorPresentation Contact Info 30 Adam J. Fountain Broadmark Capital, LLC 1800 One Union Square 600 University Street Seattle, WA 98101 (206) 623-1200, x120 afountain@broadmark.com