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HomeMy WebLinkAboutR33 EDAt r ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO FROM: Ronald E. Winkler, Director SUBJECT: EXCLUSIVE RIGHT TO NEGOTIATE Development Department - ARTHUR PEARLMAN CORPORATION/HOPKINS REAL DATE: July 23, 1999 OR I 1 NA I ESTATE GROUP Synopsis of Previous Commission /Council /Committee Action(s): On July 22, 1999, the Redevelopment Committee recommended that this item be forwarded to the Community Development Commission for approval Recommended Motion(s): (Community Development Commission) MOTION: That the Community Development Commission authorize staff to proceed with the necessary owner participation notices and preparation of a draft Exclusive Right to Negotiate Agreement - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Contact Person(s): Gary Van Osdel/ R. Winkler Phone: 5081 Project Area(s) Supporting Data Attached: FUNDING REQUIREMENTS SIGNATURE: IVDA Ward(s): Three (3) El Staff Report ❑ Resolution(s) ❑ Agreement(s) /Contract(s) ❑ Map(s) ❑ Letter /Memo Amount: $ N/A Source: N/A Commission /Council Notes: thority: N/A --r Ronald E. Wi ler, Director Development Department REW:lag:99 -08 -02 ERN Pearlman COMMISSION MEETING AGENDA Meeting Date: 08/02//19999 Agenda Item Number: R-" ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Exclusive Right To Negotiate - Arthur Pearlman Corporation/Hopkins Real Estate Group Background At the meeting of July 12, 1999, The Mayor and Common Council and the Community Development Commission approved a Cooperation Agreement with the Inland Valley Development Agency (IVDA). This agreement provides the City's Redevelopment Agency with authority to conduct redevelopment activities in the area north of the I -10 Freeway between Orchard Drive and Ferree Street. Recently, we received a request for an exclusive right to negotiate for development in the area. The request is from the Arthur Pearlman Corporation in conjunction with Hopkins Real Estate Group as venture partners. Both are experienced retail development firms with financial resources needed for development. Attached is information regarding each of the firms. The proposed development would entail 29 acres of land with 230,000 to 290,000 square feet of building area. Upon completion development value is estimated at $28,000,000. Further, 600 full time jobs are projected together with 600 construction jobs. It is anticipated the retail users will generate $75,000,000 in retail sales annually resulting in $750,000 in annual sales tax to the City. Attached is a preliminary site plan of the proposed development. It should be noted that the plan might change as a result of further discussions with Caltrans concerning reconfiguration of the freeway ramp system. Execution of an Exclusive Right to Negotiate will assist the development team in negotiations with major retail tenants. We have been advised that IVDA records indicated no prior statements of interest in owner participation from area property owners or tenants. However, to avoid any future questions or issues relating to owner participation it is recommended that existing property owners and tenants in the area be noticed regarding their rights as owner participants to submit competing development proposals. Staff would follow IVDA's owner participation rules and notify the owners or tenants by certified mail regarding their right to submit competing proposals. Pursuant to those rules, they will be given a 30 day period to submit a written statement of intent to submit a proposal. Any interested owners would then be provided additional time to submit supporting information including site plans, proformas, experience, financial statements, etc. Any proposals received from owners, tenants would be evaluated against the proponent's to finalize a recommendation as to granting an Exclusive Negotiating Agreement. REW:lag:99 -08 -02 ERN Pearlman COMMISSION MEETING AGENDA Meeting Date: 08/02/1999 Agenda Item Number: &3 Economic Development Agency Staff Report ERN - Pearlman July 23, 1999 Page Number -2- Fiscal Impact There is no immediate fiscal impact on the Agency apart from staff time commitment. Recommendations That the Community Development Commission authorize staff to proceed with the necessary owner participation notices and preparation of a draft Exclusive Right to Negotiate Agreement Ronald El Winkler, Director Development Department REW:lag:99 -08 -02 ERN Pearlman COMMISSION MEETING AGENDA Meeting Date: 08/02/1999 Agenda Item Number: Z&— July 7, 1999 Mr. Ronald E. Winkler Director of Development CITY OF SAN BERNARDINO 210 North E Street, Suite 301 San Bernardino, CA 92401 -1507 Re: Tippecanoe and Highway 10 Exclusive Right to Negotiate Dear Ron: I A t%i k—Tearlman C O R P C. 12 A,1T 1 O N This letter is in follow -up to our conversation this week at which time we discussed our need for an Exclusive Right to Negotiate for the Reference site. We also briefly explored the next step to developing the entire acreage between Highway 10 — Tippecanoe Avenue — Hospitality Lane and the Flood Control Channel. As you are aware, we began developing this real estate approximately six years at which time we first approached the City /Agency with a plan to develop a 53 -acre Power Center on the subject property. The timing of this along with our original plan to include a 30- screen theater matched neither the Agencies desires nor that of the economy. It is our opinion that we now have the correct project and an economy that will allow us to proceed with a viable retail project, without the need to include a movie theater (see enclosed preliminary site plan). We believe some background information about our team is important so we can present some of our history with the City and this site. Specifically, Aaron Mendelsohn obtained ownership of 26 -acres of land almost seven years ago (he and his partners have a substantial eight figure net worth). It was their desire to convert their land ownership into one or more viable retail projects. To date we have developed millions of dollars of retail developments within the subject area. Our success include: • The development of the 5 acre "Best Buy" facility on Harriman (about six years ago). • The development of the 14.4 acre "Costco Wholesale" facility at the corner of Tippecanoe and Hospitality (October 1998). • The development of the 4.04 acre "Staples Center" on Hospitality Lane, just west of Costco (now under way). • Ownership of the 2.5 acre parcel of land on Harriman Street between Best Buy and the existing homes (now negotiating with prospective tenants). 1621 IMichael Cane, Pacific Palisades, CA 90272 Tel: 310/454 -7810 Fax: 310/454 -5228 ( l Page Two Exclusive Right to Negotiate Ron, the focus of this letter is to request an Exclusive Right to Negotiate ( "ERN ") for the remaining land within the proposed development. In that we own a portion of the subject land, the ERN would include the Steward Parcel along with the land under the existing homes and the relevant public Rights of Way. We propose to develop this property into a unified shopping center, which will interact and connect with the existing retail developments we already noted above. The site plan we provided to you and your staff several weeks ago, though preliminary, will provide you with the overall concept we propose. As you are aware, we can not begin negotiations for this site with the majority of our major tenants until we are in control of the real estate and thus, have the authority to deliver a completed building/project to them. As discussed with you and your Staff, we have received preliminary interest from several anchor tenants. These tenants have also told their management and us they will not begin their store's volume projections or real estate approvals until we can assure them the land can be developed. In order to accomplish this, we will need the assistance of the Redevelopment Agency for the condemnation of the existing homes. We understand the final details of our proposal will be included as a part of the negotiated DDA. We believe the proposed project, when fully completed will provide San Bernardino with a new and powerful retail focus for the entire Inland Empire. In fact, this should provide the catalyst needed to complete the Tri- Cities development plan. For you information, our preliminary estimates for the proposed project will provide the following benefits: • 29+ acres of new retail development. • 230,000 to 290,000 square feet of buildings (depending upon number of "Big Boxes" we include in the final plan. • 600 full time jobs plus part time workers. • 600 construction job. • $28,000,000 million dollars of construction. • $75,000,000 million dollars in retail sales. • Property tax increment. Page Three Exclusive Right to Negotiate Ron, the above is very preliminary and will be refined once we get your go -ahead so we can develop our site plans around specific tenant requirements. To that end, we are herewith submitting our Resume and Project Experience profile. You will note we pioneered the concepts of Power Centers in the 1980's and are confident that this experience along with our Development and Redevelopment background will make this project viable. As stated, we need the Agency's assistance with the condemnation process. On behalf of my partners, we look forward to continuing our very successful San Bernardino development work with you. Sincerely, ARTHUR PEARLMAN CORPORATION 04- Arthur L. Pearlman President ALP /ep/ Enclosures: Preliminary Site Plan Resume Project Listing T i \ wy \ . lti� IS7�eo M� ICU � R 0 ` \\ 17- --------------- � -' "� li at's o----0 �� t! -!A N.W.C. FREEWAY 10 & TIPPECA-OE SAN BERNALR.RINO CALIFORNIA Air UR PEZiUAAN OORPORATION LKjVffNrTt06T/*10110MfTz A ASSOCLAT= = �,�, EEE A thur Pearlman C O R P O R A T I O N RESUME ARTHUR L. PEARLMAN Arthur L. Pearlman is the founder of the Arthur Pearlman Corporation. This company is focused towards the development of select retail real estate developments, consultation and brokerage assignments and is currently developing shopping centers throughout California. Mr. Pearlman brings over thirty years of real estate experience into the company, twenty of which were involved with the development and ownership of shopping centers. Previously, Mr. Pearlman was Co- President, Partner and Founder of the Riley/Pearlman Company. Riley/Pearlman is a recognized leader in the development of approximately six million square feet of quality shopping centers throughout California. The centers ranged in size from 100,000 to 750,000 square feet consisting of some of America's best retail stores. These shopping centers included grocery anchored neighborhood centers, mixed use centers, state of art entertainment -based retail centers and large, value oriented power centers. Mr. Pearlman was also Founder and CEO of Riley /Pearlman Crow Company, a joint venture with his company and the Trammell Crow Company. Mr. Pearlman began his real estate career in 1968 with the founding of Foresight Systems, Inc., a Century City based, international management consulting firm. During his 10 years in that business, prior to selling the company to United Telecommunications, Inc., he consulted with more than three hundred - Fortune 500 companies regarding their corporate strategy, real estate holdings, business and financial plans. Previously, as a Senior Consultant with Peat, Marwick, Livingston & Co., his duties and responsibilities included the management and performance of client engagements within the commercial industry, as well as with U.S. and foreign government agencies. Mr. Pearlman's technical experience was obtained during his association with TRW, Litton Industries and Space General Corporation. His responsibilities at these firms covered administrative and technical project management assignments. Mr Pearlman received his B.S. degree in Chemistry and Chemical Engineering from the University of California, Los Angeles and his M.B.A. degree from Pepperdine University's "Presidential/Key Executive Program ". He was selected as Chairman of the Board and, previously, President of California Business Properties Association (CBPA). Today, he remains an active member of its Board. Mr. Pearlman was elected as California's State Director and, previously Program Chairman for the International Council of Shopping Centers (ICSC). He serves on the Board of Directors for UCLA's Anderson Graduate School of Management, Real Estate Alumni Association. He is a licensed real estate broker. 1621 Michael Lane, Pacific Palisades, CA 90272 Tel: 310/454 -7810 Fax: 310/454 -5228 w Arthur Pearlman C O R P O R A T 1 ^, STEVEN J FELDERMAN Steven J Felderman is the Vice President of Development for the Arthur Pearlman Corporation where he is responsible for the development and construction of the company's retail projects. These projects include special purpose, single tenant build -to- suit buildings as well as complete shopping center projects which are ten acres and larger. Prior to joining the Arthur Pearlman Corporation, Mr. Felderman was Project Manager for Haagen Property Management, Inc. His project responsibilities included the development of preliminary budget, schedule and proforma evaluations for project feasibility studies. His job required the hiring and management of consultants to assist in the management and construction of projects from entitlement through tenant move -in. While at the Haagen company, he was responsible for the rehabilition and development of the 30 Screen AMC theater complex (Covina Town Square, Covina, CA); Project management of the Fullerton Town Center (Fullerton, CA), including the expansion of various tenants; project management for various tenants within the Media City Center Mall (Burbank, CA); and project manager for the development of the 12 screen Magic Johnson Theater complex, including parking structures and pedestrian bridges at the Baldwin Hills Crenshaw Plaza Mall (Baldwin Hills, CA). Previously, Mr. Felderman was Project Manager for the retail, residential and commercial project management functions at Tyrell Management, Inc. This company specialized in the consultation with various Owners and Developers to provide comprehensive construction and project management services. Mr. Felderman's consulting responsibilities were varied and included projects which ranged from ten to seventy five acre shopping centers, law and medical building tenant improvements and large, single family development projects. Steven Felderman began his professional career with the McDonnell Douglas Aircraft Company as Buyer of Avionics and Electronic equipment. He received his Bachelor of Arts Degree from the University of California at Los Angeles in June 1988. Mr. Felderman is a member of the International Council of Shopping Centers (ICSC). lo2l Michael Lane, Pacific Palisades. CA 90272 Tel: 310;454 -7810 Pax: 310 /454 -5228 .Anhui C O R P O R AGOURA, CALIFORNIA OAK PARK SHOPPING CENTER An 11 -acre neighborhood center containing Ralphs Supermarket, Thrifty Drug, Blockbuster, specialty stores and free - standing buildings. Opened in Fall of 1990. BAKERSFIELD, CALIFORNIA TOWN & COUNTRY CENTER A 21 -acre center anchored by Albertson's Supermarket, Longs Drug Store and Millers Outpost with 120,000 square feet of specialty tenants. Opened in 1983. CALABASAS, CALIFORNIA GELSONS VILLAGE AT CALABASAS A 7 -acre neighborhood "village" style shopping center containing a 40,000 square foot Gelsons Supermarket and specialty shops. Opened February 1996. CAMERON PARK, CALIFORNIA CAMERON PARK SHOPPING CENTER A 12 -acre shopping center anchored by Safeway Supermarket, including McDonald's, Taco Bell, Bank of America and 61,000 square feet of shops. Opened in 1978. HESPERIA, CALIFORNIA MIDTOWN SQUARE An 18 -acre project including K -Mart, H &E Home Improvement center and Payless Superstore. Opened Spring 1988. LA CANADA, CALIFORNIA SPORT CHALET VILLAGE An 11 -acre mixed use, office /retail/park oriented neighborhood shopping center anchored by Sport Chalet, Vons Supermarkets with select specialty tenants within a village setting. Under development, scheduled opening is Summer 2000. LANCASTER, CALIFORNIA WEST LANCASTER PLAZA A 17 -acre neighborhood shopping center with 170,000 square feet of retail space. Major tenants include Albertson's Supermarket, Thrifty, Downey Savings & Loan, and a 6 -plex theater. Phases I and II opened in 1986, Phase III opened in 1988. SHOPPERS DEPOT A 5 -acre shopping center with 42,000 square feet of specialty retail tenants. Opened in 1988. 1621 :Michael Lane, Pacific Palisades, CA 90272 Tel: 310/454 -7810 Fax: 310/454 -5228 LANCASTER, CALIFORNIA (CONTINUED) VALLEY CENTRAL A 75 -acre, 750,000 square foot "Power Center" with 126,000 square foot Costco, 113,000 square foot HomeBase and California's first Wal -Mart store. The Power Center was completed with a Promotional Center (Marshalls, Circuit City, Michaels, Fashion Bug), a Community Center (Food 4 Less, Petsmart) and an Entertainment Center (12 -plex Cinimark Theater, Black Angus Restaurant, Chuck E. Cheese and many other tenants). Initial phase opened Summer 1988; Phase II opened Summer 1990. LANCASTER TRIANGLE A 3.5 -aacre center consisting of 36,000 square feet of specialty tenants such as Coco's, Burger King, Goodyear, Color Tile and 12,000 square feet of shops. Opened in 1981. LOMPOC, CALIFORNIA LOMPOC SHOPPING CENTER A 13 -acre neighborhood center consisting of 161,000 square feet of GLA. Includes Lucky Supermarket, J.C. Penney, and Millers Outpost. Built in 1960; rehabilitated in 1991. LOS ANGELES, CALIFORNIA TASTE & STYLE PLAZA A 2.4 -acre center consisting of 58,000 square feet of GLA, including Wherehouse Records, Kentucky Fired Chicken, Frazee Paints & Hardware and a unique mix of ethnic tenants. Opened Spring 1986. MADERA, CALIFORNIA MADERA MARKETPLACE A 27 -acre, 280,000 square foot community shopping center anchored with a 125,000 Wal -Mart, Pak -N -Save Supermarket, J.C. Penney, shops and pads. Opened in Spring 1992. MANTECA, CALIFORNIA MISSION RIDGE PLAZA A 27 -acre shopping center with 280,000 square feet of GLA, including Wal -Mart, Mervyns Department Store, Pak -N -Save, shops and pads. Opened in Spring 1992. MONTEREY PARK, CALIFORNIA ATLANTIC SQUARE A renovated 14.5 -acre shopping center of 208,000 square feet, anchored by Ralphs Supermarket, Thrifty Drug Store, Big 5, Music Plus and specialty tenants. Renovated Summer 1991. ONTARIO, CALIFORNIA ONTARIO VILLAGE A 12 -acre shopping center anchored by Stater Brothers Supermarkets and Payless Drug Store. Opened December 1988. IF ONTARIO, CALIFORNIA (CONTINUED) ONTARIO APARTMENTS 58 apartment units built as a part of Ontario Village. Opened December 1988. PALMDALE, CALIFORNIA PALMDALE PLACE A 17 -acre project including Albertson's Supermarket, Thrifty Drug Store, H &E Home Improvement Center and other tenants. Opened Fall 1986. PALMDALE MARKETPLACE A neighborhood shopping center of 9- acres, anchored by Lucky Supermarkets, Thrifty drugs and specialty shops. Opened in Spring 1991. QUARTZ HILL CENTER An 11 -acre neighborhood shopping center, anchored by a Ralph's supermarket, pads and specialty shops. Opening spring 2000. PORTER RANCH, CALIFORNIA PORTER RANCH TOWN CENTER Development of a 43,000 square foot Sport Chalet store as a part of the 53 acre, 551,000 square foot Community center containing Wal -Mart, Best Buy, Toys R Us and Ralph's Supermarket as co- tenants. Opened in summer of 1998; Sport Chalet to open in June 1999. POMONA, CALIFORNIA BONAVENTURE CENTER A 15 -acre Hispanic focused community shopping center to contain a specialty supermarket, drug store, 10 -plex theater, and other specialty stores. Under development with scheduled opening Spring 2000. RENO, NEVADA THE MEADDOWS MARKETPLACE A 70 -acre Power Center of 800,000 square feet including Wal -Mart, Sams Club, Safeway Supermarkets and other large tenants. Opened Spring 1995. SACRAMENTO, CALIFORNIA LAGUNA/99 PLAZA A 19 -acre neighborhood center with Wal -Mart, Pak -N -Save Supermarket and shops. Opened Spring 1991. NORTHRIDGE PLAZA A 10 -acre neighborhood center anchored by Raley's Supermarket and specialty shops. Opened in 1960 and rehabilitated in 1992. SANTA BARBARA, CALIFORNIA FIVE POINTS SHOPPING CENTER An 11 -acre community center consisting of 142,000 square feet anchored by Lucky Supermarket, Ross Department Store, Thrifty Drug Store and Big 5 Sporting Goods. Opened in 1960 and rehabilitated in 1982. SAN BERNARDINO, CALIFORNIA San Bernardino Center A 21.5 acre Value Oriented Community Shopping Center consisting of a 147,000 square foot Costco Wholesale, 24,000 square foot Staples Office Superstore and other retailers. Costco opened in October 1998, Staples to open in November 1999, the remainder to open in summer 2000. SANTA PAULA, CALIFORNIA SANTA PAULA SHOPPING CENTER A 17 -acre shopping center consisting of 173,000 square feet of GLA including Vons Supermarket, Thrifty Drug Store, 7 -plex Wallace Theater, Fashion Bug Blockbuster and other specialty stores. Opened in 1961 and rehabilitated in 1992. STOCKTON, CALIFORNIA NORTHTOWN VILLAGE AN 18 -acre community center of 180,000 square feet of GLA, anchored by Wal -Mart, Petsmart and other retail stores. Opened in 1991. TURLOCK, CALIFORNIA COUNTRYSIDE MEADOWS A 38 -acre community center of 330,000 square feet of discount type tenants, including Wal -Mart, J.C. Penney, Savemart Supermarkets, 10 -plex theater and other shops. Opened in Fall 1995. VALENCIA, CALIFORNIA VALENCIA MARKETPLACE An 83 -acre "Power center" of 743,000 square feet of GLA, anchored by Wal -Mart, Toys R Us, Sport Chalet, Michael's, Circuit City, Strouds, State Line Tack, Vons Supermarkets and numerous specialty tenants. Opened in Fall 1996. y Our goal is to develop projects which Hopkins Real Estate Group... benefit all parties, increase asset Your Partner in Success values, strengthen communities, and Hopkins Real Estate Group is committed to creating provide excellent locations for quality shopping centers. Since 1972, the professionals at retailers. Helping our partners achieve HREG have successfully developed more than one hundred success is the indicator of our own commercial retail centers throughout California. success in any project. With an emphasis on urban infill projects, includ- Steve Hopkins, President ing those from the ground up and rehabilitation, HREG Hopkins Real Estate Group works together with community leaders, retailers, investors and landowners to create the most innovative and profit- able retail centers in the marketplace today. Relationship building has been a standard method of doing business at HREG since its inception. Long before "partnering" became a fashionable term, HREG defined itself by its relationships. As the company moves forward, these relationships will continue to serve as the cornerstone of HREG. uroan Mousing (aroup • Multi- family housing Urban Housing Group represents the expansion of HREG's highly successful involvement in the commercial real estate business, which • Professional property management has concentrated on neighborhood shopping center and mixed -use • Affordable housing solutions development since 1972. • Tax-exempt bond financing The Company specializes in the acquisition, rehabilitation, • Public /private partnerships and management of multi - family housing throughout the Western United States. In addition to acquiring stabilized properties, the Company also seeks turnaround and redevelopment opportunities Richard W. Harris and will invest additional equity capital to improve future economic President performance. Urban Housing Group welcomes the involvement of municipalities in projects - including public /private partnership ventures. The Company's apartments often include units set aside for 110 Newport Center Drive moderate - income residents when combined with tax - exempt bond Suite 200 financing or tax credits. Urban Housing Group operates as a for - Newport Beach, CA 92660 1949) 640.2551 Telephone profit owner but partners with non - profit sponsors to provide the (949) 640 -2991 Fax community with safe but affordable housing options. 13 Corporate Plaza, Suite 200 • Newport Beach, California 92660 • 949 - 640 -1770 Fax 949 - 644 -8631 Asset Management • Aggressive leasing program Hopkins Real Estate Group intensely manages and consistently • Comprehensive operations analysis adds value to its assets. Each project is painstakingly analyzed using a broad • Monitoring of tenant sales histories range of economic, market and situation - specific indicators. • Provision of market comparahles The primary factor of consideration is the opportunity to add • Asset renovation and expansion value, whether through refinancing, expansion, re- tenanting and/ or re- merchandising. Through the rehabilitation process, HREG has demon- strated its ability to turn a non - performing shopping center into an asset with increasing revenue and value. HREG's asset management team has completed numerous rehabilitation projects which involve the acquisition and refurbishment of projects. The rehabilitation often includes major activity, such as tenant move -out, demolition, change of product type, creative financing, governmental partnership, construction, marketing, and lease -up. The result of this all- encompassing management process is a track record of consistently creating solid solutions to a diverse array of challenges and successfully completing even the most difficult projects. 13 Corporate Plaza, Suite 200 • Newport Beach, California 92660 • 949 - 640 -1770 Fax 949 - 644 -8631 Ei Brokerage and Consulting Services • Entitlement processing, Tenant relationships are a key to the strong performance of development and leasing Hopkins Real Estate Group's projects. • Tenant representation and The care with which HREG selects centers for its tenants site selection and tenants for its centers translates into long -term relationships • Owner representation for with the nation's best retailers, both large and small. Many of these acquisition and disposition retailers return to the firm to lease additional spaces within other HREG centers. 'Tenant and owner leasing representatives have the entrepreneurial freedom required for aggressive and quick -paced decisions, yet operate under the guidance, support and experience i; of HREG's senior executives. From the initial site selection process through tenant space build -our, tenants are provided Xvith timely, attentive response from knowledgeable professionals. The firm's consulting services wrap around the entire process. From acquisition of sites providing the greatest opportu- nity for value enhancement through disposition of assets timed to meet its clients' short -term and long -term portfolio strategies, all parties involved can expect extensive and comprehensive consultation that is best suited to their needs. IWWW 13 Corporate plaza, Suite 200 . Newport Beach, California 92660 • 949 -640 -1770 Fax 949 -644 -8631 Development Expertise • Neighborhood and community Expertise and relationships are the keys to developments that shopping centers succeed. HREG is committed to developing projects that work for • Power centers everyone involved. To accomplish that goal, the perfect blend of Entertainment centers expertise and relationships must exist. • Regional mall redevelopment Initially, a synthesis takes place between the needs of • Build -to -suit for credit tenants the community, the retailers, investors, and the landowners who sell or venture. From the beginning of the acquisition through the moment of purchase, HREG's acquisition team selects only the strongest opportunities to ensure success. The process continues with an expert team project- . managing the development, including answering community needs, addressing retailer requirements, crafting financing solutions for investors, reaching entitlement decisions with governmental teams, and creating long -term value for landowners. Through this process, the end result is a development which helps communities eliminate blight, create jobs and generate sales tax revenues. HREG is attentive to its partners' diverse needs and takes the steps necessary to meld them into a singular success. 13 Corporate Plaza, Suite 200 • Newport Beach, California 92660 • 949 - 640 -1770 Fax 949- 644 -13631 Financial Partner Developers Diversified Realty Corporation 00 Retail development is a complex process. In fact, many who. start don't ever reach the finish line. Access to capital is one of the key challenges faced by those in development. HREG has been able to eliminate this challenge through its strategic alliance with Developers Diversified Realty Corporation, a publicly traded real estate company with a market capitalization in excess of one billion dollars. This alliance allows acquisitions to be completed without financing contingencies. Therefore, HREG provides its tenants with the confidence that projects which are started will open on schedule. Landowners and municipalities know that HREG will work closely with them throughout the entire process and complete their projects in a timely manner. Developers Diversified Realty Corporation is a publicly traded, fully integrated real estate investment trust based in Moreland Hills, Ohio. The thirty- one - year -old commercial real estate firm has operated nation -wide, and this alliance will provide the vehicle to expand its presence on the West Coast. With one of the most impressive real estate portfolios in the United States, Developers Diversified Realty Corporation is noted for its superior financial performance and has been a leader in acquiring and developing community and power strip shopping centers. The alliance with Developers Diversified Realty Corporation allows Hopkins Real Estate Group to deliver maximum value to its tenants, consultants and communities, and leverage its local market knowledge and longstanding tenant relationships.