Six Peak IC Weekly Meeting

• The meeting reviewed pipeline, portfolio stress, and reporting changes related to LV’s affordable housing activity and near-term asset dispositions.
• Discussion centered on an HVN partnership that expects to deliver 700 affordable units per year across 8–10 projects; HVN’s CEO is working with seven GCs, LV is ranked first, and that program could translate to roughly 2–4 projects per year for LV.
• A proposed Skylar engagement at $150,000/year was discussed and characterized as an asymmetric, option-value investment with no significant objections.
• Portfolio and transaction status: Wilton’s lender granted a six-month extension; there are no firm written buyers and verbal interest is at unattractive pricing that could trigger capital calls if sale proceeds are insufficient.
• The Edgemont written offer of approximately $4.5M (around a 6–6.5% yield) was cited as evidence of market softness, and the team concluded that Normandy and Westaf likely need to be marketed for sale within three to four months.
• For Wilton and Francis, outstanding financials and draw details remain; Chris projected roughly 75% capital recovery at closing pending a finalized cost review, but many items are unresolved.
• Francis and development opportunities: Francis closing is feasible but on a tight timeline with an internal June 23 drop-dead date (an earlier June 3 target had been missed); the cost review is the longest lead item.
• A separate development opportunity emerged where a local developer won a MIP award but lacks capacity; Chris circulated an underwriting showing a tax-credit gap in the high-70 cents range and an overall funding gap of about $3.5M.
• Participation options discussed included charging development/services fees, underwriting/pre-dev for cash or equity, bringing in MRK for asset management, or guaranteeing construction while the developer signs debt.
• Bonding and a few remaining processes are required to close three other deals.
• Reporting, documentation, and controls: The team debated moving from PowerPoint to an AI-driven dashboard; consensus supported dashboards provided data definitions, historical snapshots, and periodic data saves are preserved.
• Steven recommended tracking pipeline value, on-time/on-budget delivery, safety, and working-capital/cash-efficiency metrics (retention, subcontractor payables, retention-release variance).
• The portal currently contains projections and a May 5 supplementary deck with 3/31 financials; Chris committed to add Yardi actuals and Q1 financials to enable budget-to-actual reporting and monthly projection updates by the end of the month with Chris Andreessen.
• Documentation was reported mostly complete with Jasmine’s feedback received and Anthony to deliver remaining feedback imminently.

• ✓
  Patrick Patrick will ask the lender whether capital returned at closing can be used to fund the anchor and report back
  → To-Dos
• ✓
  Steven Cooney Steven Cooney will join calls to review the portal and provide feedback on metrics and models as needed
  → To-Dos
• ✓
  Ivan Ivan will start the next call in about 10 minutes as scheduled
  → To-Dos

None.