Johnson Capital Capabilities 111208

Real Estate Mortgage Banking

Thomas M. CohenPrincipal

Johnson Capital Of Kansas7201 129th Street, Suite 110Overland Park, KS. 66213

(o) 913-685-9200(f) 913-685-9213(c) 913-226-1001

Email: thomascohen@johnsoncapital.comwww.johnsoncapital.com

Johnson Capital Overview Headquartered in Irvine, California Founded in 1987 by CEO Guy Johnson Specialize in permanent debt, bridge, mezz, and

structured financing– Transactions ranging from $1 million to over $300

million

– Over $1 billion in closings so far in 2008

Trusted, Valuable Brand One of the largest independently owned,

integrated real estate finance companies in the country

17 offices

– Irvine, CA Los Angeles Dallas– Encino, CA San Diego, CA Chicago– San Jose, CA Phoenix Washington, DC (Freddie Mac)– Denver Salt Lake City (FHA)– Little Rock (FHA) Kansas City– New York City Norwalk, CT (FHA)– Boca Raton San Francisco

Business Overview Operates numerous business platforms:

– Life Insurance Correspondent– Multifamily Lending Groups (FHA,

Freddie)– Johnson Capital Servicing– Johnson Capital Express (Small loans)– JCR Capital (Mezz, Preferred Equity,

special situations)– JCSS (Special Servicing)

Financing for All Property Types Multifamily

Office

Retail

Industrial

Hotels

Mixed-Use

Manufactured Housing

Credit-Tenant Leases

Assisted Living/Nursing homes

Hospitality

Loan Parameters Fixed or floating Min size: $1m. Max size: no max Recourse: historically none except for standard

carveouts (for fraud, environmental indemnity, waste). Currently, recourse required more frequently

Prepayment Penalty: yes (however some lenders, i.e. Credit Unions are open to prepay)

Permanent Financing Five to thirty year term

Up to thirty year amortization (multifamily only)

Interest only: typically not available today

Multifamily: Up to 80% LTV

Commercial: up to 65% LTV

Permanent Financing Players Agencies – Fannie, Freddie, and FHA

Insurance Companies (currently out of the market or only lending 60-65% LTV)

Credit Unions

Banks

Fannie Mae and Freddie Mac Solutions

Fixed Rate

ARM

Early Rate Lock

Supplemental mortgages

Affordable Housing

Bonds & Credit Enhancement

Seniors

Student Housing

Freddie Mac: Early Rate Lock Program Advantages

Ability to rate lock prior to receipt of appraisal or other third party reports

Rate held for four months with no addl premium

Can go forward well beyond four months for property in lease up with approx. 3-5bps/mo. premium

Max loan: 80% LTV and 1.25x dscr

Life Insurance Companies

Strong borrowers with Class A/B properties

Portfolio lenders (can be more flexible on terms & predictable in execution)

Max LTV: 65%

Amortization: max to 20 yrs

Life Insurance Companies American Family (out of the market) American Fidelity (quoting) American National (quoting) Babson Capital (formerly Mass Mutual) Country Companies (quoting) Farm Bureau of Michigan (out of the market) John Hancock (quoting) New York Life (quoting) One America (formerly AUL) (quoting) Protective (out of the market) Prudential

HUD/FHA FHA insures mortgages originated by HUD lenders

FHA 221(d)(4) non recourse construction/perm and substantial rehab program (40 year fully amortizing)

FHA 223(f): non recourse acquisition/rehabs and refi’s (35 year fully amortizing)

FHA 232 Program: seniors housing

2008 ClosingsMidwest Nephrology Medical Office Building

Independence, MO

Description: 12,558sf, built in 2007, 2 tenantsLoan Amount: $2,300,000Term: 10 YearsAmortization: 25 YearsRate: 6.00%Lender: Country LifeRecourse: NoneClosed: January, 2008Comments: High $/sf mitigated by strong tenants

and sponsor 75% LTV

70% occupied by Fresenius Medical (BB by S&P) 10 year leases

Value Place Extended Stay – Wichita West

Wichita, KS

Description: 121 Units, 43,403sf, built in 2006Loan Amount: $4,200,000Term: 5 YearsAmortization: 25 YearsRate: 6.75%Lender: Business Partners (Credit Union)Recourse: Yes – Full RecourseClosed: February, 2008Comments: Represents one of a total of 5 Value

Place loans closed with the franchisor. No pre-payment penalty

Wycliff West Apartments

Overland Park, KS

Description: 150 Units, built in 1971Loan Amount: $5,250,000Term: 10 YearsAmortization: 30 YearsRate: 5.88%Lender: Freddie MacRecourse: NoneClosed: August, 2008Comments: Early rate locked in 5/08 – closed

8/08 Monthly replacement reserves - deferred

Strong Management Company & sponsor 64% LTV

Sunset Village Apartments

Pine Bluff, AR

Description: 144 Units, built in 1971Loan Amount: $2,744,000Term: 7 YearsAmortization: 30 YearsRate: 6.18%Lender: FNMARecourse: NoneClosed: June, 2008Comments: Repeat FNMA borrower Acquisition

Strong Management Company & sponsor 82% LTTP / 80% LTV

Yarco Office Building

Kansas City, MO

Description: 25,250sf, Single TenantLoan Amount: $1,900,000Term: 10 YearsAmortization: 25 YearsRate: 6.38%Lender: Protective LifeRecourse: Yes – Full RecourseClosed: July, 2008Comments: owner occupied No lease was required.

Subject was newly renovated Rate locked at application

Carriage House Apartments

Topeka, KS

Description: 282 Units, built in 1969Loan Amount: $4,600,000Term: 7 YearsAmortization: 30 YearsRate: 6.23%Lender: FNMARecourse: NoneClosed: July, 2008Comments: Repeat FNMA sponsor Acquisition

80% LTPP / LTV