Information Session

February 17, 2016

• 1700 member professionals

• 500 member companies

• 95% of top commercial real estate

businesses in North Texas

Our Work: Provide capital and technical assistance to

non-profit and for-profit developers for

commercial real estate projects.

Location: Dallas & Collin Counties

Application Period: Year-Round

Typical Funding Range:$25K-$250K, with opportunities to exceed

through partnerships

Our Work: Provide grants to non-profit organizations

for commercial real estate projects.

Location: Dallas County

Application Period: Applications due August 1st at 5:00PM

Typical Funding Range:$25K-$50K, in addition to pro bono

professional services

Education | Housing

Job Creation | Environment

• Real estate related project

• 501(c)(3) organization

• Professional Services opportunity

• Measurable impact in Dallas County

Reached more than 327,000 individuals in need

Contributed more than $10 million in grant funds

Contributed more than 3,000 volunteer hours worth more than $750,000 each year

Assisted more than 100 nonprofit organizations

Grant Cycle

June: Invitation to apply

August 1st by 5:00pm: Applications due

September – October: R&D team site visits to selected applicants

November: Funding notification

December: Public announcement of grantees,

Community Breakfast event

January: Grant funds available for disbursement

Real Estate 101 Course

What is it? A 5-session series of 2 hour workshops on the most important real

estate issues for nonprofits.

Who should participate? Nonprofit Executive Directors, Senior Staff and Board members or

anyone involved in real estate decisions for the organization.

Cost: FREE

Instructors: Eliza Solender, President Solender/Hall Inc.

Schedule: Module 1 Real Estate Overview

Module 2 Becoming a Savvy Tenant, Buyer or Seller

Module 3 Site Selection / City Planning & Zoning

Module 4 Lessons Learned from Construction

Module 5 Finding the Money

APPLICATION DUE July 1, 2016

Who We Are

As the next chapter of social venture investment for TREC Foundation,

TREC Community Fund will:

• Leverage existing funding sources

• Leverage long term relationships in the nonprofit sector

• Leverage volunteer capital of membership

• Leverage public/private relationships

What is a CDFI?

• Community development financial institutions (CDFIs)

• Private financial institutions that are 100% dedicated to delivering

responsible, affordable lending to help low-income, low-wealth, and

other disadvantaged people and communities join the economic

mainstream.

• By financing community organizations CDFIs spark job growth and

retention in hard-to serve markets across the nation.

• Profitable but not profit-maximizing. They put community first, not the

shareholder.

Provide access to capital for commercial

real estate projects through loans and

technical assistance to nonprofit and

for-profit organizations that serve

low-income communities in Dallas &

Collin Counties.

Our Impact

105,000-square-feet of community

facilities developed or rehabilitated to serve 58,000 adults and 400 children

per year

14,000-square-feet of commercial real estate developed and rehabilitated

4 single-family homes developed;

14 multifamily housing units rehabilitated

10 loans totaling more than $1.4 million in 3 years

Our Competitive Advantage

• Lender of last resort

• Flexibility of Terms

• Technical Assistance

Pro bono Technical Assistance

Services donated included:

• Architectural

• Brokerage

• Civil Engineering

• Construction

• Development

• Due Diligence

• Environmental

*Some services are at a reduced costs.

Access to capital

• Flexible to address gaps of

“traditional” real estate

financing

Pro bono Technical Assistance

• Decreased costs for

borrowers

Integrated with Foundation grants

Potential Borrowers Potential Funders

Gap Financing

Pipeline of loans

• Annual grant process

• Real Estate 101

Strong volunteer base

• Provides technical assistance

CRA credit

Program-related investments

SUSU Project

• In Dallas’ southern sector, a

neighborhood-based entrepreneur is

opening a Juice bar, market, & café.

• Neighborhood is a food desert,

minimal development in 40+ years

• 20+ TREC members Involved

• Partnership with local foundation

• In Greensboro, working to

remake Revolution Mill, a 512,000 square-

foot former textile mill, into a vital place

for living, commerce, and creative

collaboration.

• Reviving an under-used neighborhood

shopping center into a home for a start-

up healthy foods grocery store.

Lending Profile

Our Borrowers

• Affordable housing providers

• Community service providers (i.e.,

health care, childcare, training, arts,

social services)

• Nonprofit and for-profit developers

who are developing in low- to

moderate-income neighborhoods

Community Visionaries

Our Loan Products

• Pre-development loans

• Ex. Funding for appraisal, market study, environmental survey, etc.

• Construction loans for community, childcare, and healthcare facilities

• Ex: Funding for new development or rehab

• Participation loans

• Ex: Create a lending partnership with another funding source

• Gap/Bridge financing

• Ex: Have a primary lender, but need additional funding

• Capital campaign bridge loans

• Ex: Intermediary (timing) funding for a non-profit, while continuing to raise grant

funds

• Subordinate debt

• Ex: Gap funding that will take a position after the primary lender on the collateral

Project Profile

• Repayment risk we can identify and address

• Inability to access traditional loans due to lack of comparable projects in highly

distressed neighborhoods, i.e.. West Dallas, Southern Sector

• long term mortgages

• loans to individuals

• loans for operational funding

• (e.g., salaries, computers, etc.)

• zero interest loans

Loan Terms

• Typically 6% interest rate

• Term of no more than 5 years

• Flexible repayment terms

• (e.g., accrued/deferred until certain hurdles met)

• Generally secured by property

• No prepayment penalty

• 1% origination (new loan) fee

Information Needed

The Basics: Project Overview

Collateral (land, facility, other assets)

Appraised value of collateral

Desired Loan/Repayment Terms

Source(s) of Repayment

Further details are provided in our due diligence checklist:

Project Overview

Sources/Uses of Funds (i.e. development budget, pro forma)

Organization/Project Manager’s History

Property Description (i.e. market study, development plans)

Borrower’s History (i.e. financial statements, ownership structure)

Property Analysis (i.e. appraisal, environmental survey)

Community Fund

Board of Directors & Advisory Board

Community Fund Staff

Loan Underwriting

Technical Assistance

Community Fund Loan Committee

Loan Approval

TREC Members

Technical Assistance

TREC Community Fund Board of Directors

Gilbert Gerst, Bank of Texas Interim Chairman

*Maggie Parker, The Real Estate Council Secretary

Diane Chavez, JP Morgan Treasurer

*Troy Daniel, Thackeray Partners Loan Committee Chairman

Joe Griffith, JP Morgan

Mattye G. Jones, Coats Rose

Dora Ramirez, Wells Fargo Bank

Chris Roach, BBG

Chad Schieber, Beck Group

Matt Siekielski, NexBank

Yelda Tuz, Bank of America Merrill Lynch

*Linda McMahon, The Real Estate Council

*Robin Minick, The Real Estate Council Foundation

*Non-Voting Member

TREC Community Fund Advisory Board

Maribel De Leon, Dallas Metropolitan Small Business Development Center

Christian Evans, Goldman Sachs

Paige Flink, The Family Place

Susan Hoff, United Way of Metropolitan Dallas, Inc.

Libbie Lee, Golden SEEDS Foundation

Christopher Lewis, Nokia Networks

Roy Lopez, Federal Reserve Bank of Dallas

Denise Mason, BBVA Compass

Gregory May, Preston Hollow Capital

Emmanuel Obi, The Obi Law Firm

Ken Smith, Holistic Investments and Revitalize South Dallas Coalition

Rod Washington, Frost Bank

Cynthia Yung, The Boone Family Foundation

Thank you for your time!

Visit us at www.recouncil.com

Questions or Comments?

Our Work: Provide capital and technical assistance to

non-profit and for-profit developers for

commercial real estate projects.

Location: Dallas & Collin Counties

Application Period: Year-Round

Typical Funding Range:$25K-$250K, with opportunities to exceed

through partnerships

Our Work: Provide grants to non-profit organizations

for commercial real estate projects.

Location: Dallas County

Application Period: Applications due August 1st at 5:00PM

Typical Funding Range:$25K-$50K, in addition to pro bono

professional services

Visit us at www.recouncil.com