$15 Million Personally Guaranteed, Fully Secured, Cross Collateralized Loan Request

Dear Potential Client,

I am writing to ask you to provide one of my best clients with a $15 million personal loan, which will be secured by his personal guarantee as well as subordinate interests in two cross-collateralized highly valuable properties.

My client is worth in excess of $200 million, and needs the requested loan to facilitate a newly originated $63 million construction loan that we have obtained for him to build a 52-story condo/hotel tower in Florida.

The $15 million loan that we want you to provide will be cross-collateralized with a subordinate interest in this 52-story condo tower, and you will also get a subordinate interest in a fully leased residential tower in a prime Manhattan Upper East Side location.

Your $15 million loan will be used to pay off an existing first mortgage, which presently sits on this partially constructed condo tower. Our construction lender is going to be coming in to provide the newly originated $63 million construction loan that will allow my client to build the remainder of the highly desirable oceanfront project. This project is anticipated to be highly successful, and already has $90 million of hard condo sales on it.

In addition, the developer has presold the hotel component of this 52-story tower for $33 million.  As discussed, the new construction loan is for $63 million, and as indicated, we have approximately $130 million in condo and hotel sales, which will assure not only repayment of the $63 million new first mortgage, but also your $15 million mortgage.

In addition, there will still be approximately 70,000 sf of remaining condo inventory, which we anticipate will be sold for at least $50 million in sales proceeds (which is about $710 psf).

With respect to the New York collateral, this fully occupied Upper East Side residential tower boasts an NOI of $5 million.  As such, the property is worth at least $90 million.  There is an in-place $66 million first mortgage, which has an interest-only 5.5% coupon which matures in 2017.  Therefore, there is approximately $25 million in net value (the difference between the first mortgage and the fair market value of the property) which will provide you with additional comfort that your $15 million loan will be repaid promptly.

We are seeking a 3-year term with the lowest possible pay rate and interest rate.

This is an excellent opportunity to provide a personal loan on a highly secured basis to a credit-worthy individual with a clear path for repayment.

Thanks, and we look forward to hearing back from you.

Howard L. Michaels
Chairman

Carlton Advisory Services, Inc.
560 Lexington Avenue – 10th Floor
New York, NY 10022
(212) 545-1000 office
(212) 867-1305 fax
Email: howardmichaels@howardmichaels.com
Website: www.howardmichaels.com
Carlton Exchange: www.carltonexchange.com

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