Fractional Dutch Auctions of Commercial Income-Producing Real Estate Properties - TIC Plan Ownership Syndications

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Due Diligence Documentation "Exhibit F-7"

Entitlements Review

The following notes are provided pertaining to this exhibit:

  1. What: commercial real estate development projects and programs may, to one extent or another, have access to certain statutory entitlements that serve to provide incentives to investors and/or lenders providing capital for the new business.  These can - in some cases - be quite materially significant to subscribers of a particular syndication.

  2. When: these are reviewed during the pre-construction phase and in the course of the conduct of the Market Feasibility Study (see Exhibit F-3).

  3. Why: these entitlements can make all the difference in whether or not a positive investment decision is warranted and can provide a considerable near-term boost to the property's cash flows.

  4. Where: these entitlement reviews are conducted at the local, state and federal levels in concert with the Market Feasibility Study.  

  5. How: the Developer will retain this document as an electronic file for the benefit of all parties.

  6. What's important: the entitlements review must be done and a complete canvassing made so that the pro forma financial presentation reflects the impact of these incentives and the resulting plan for incorporating the entitlements into the project capital funding plan.

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