The Monterey

Transaction: Acquisition of senior loan on failed condominium conversion

Asset Summary: 432-unit, high rise apartment complex, including a 602-car underground garage

Location: Sited prominently at the intersection of Rockville Pike and Montrose Road, a short walk from the White Flint Metro Station in Rockville/North Bethesda, MD

Date Closed: March 2008

Investment Strategy:

• At the midst of a declining market, purchased a discounted senior loan on a partially-completed apartment to condominium conversion
• Utilized FCP’s access to capital, experience in structuring complex transactions, and ability to reposition high-rise apartments
• Took control of the asset through a “friendly” foreclosure with borrower, mezzanine lender, 60 trade creditors, and 42 condominium purchasers
• Completed $45 million demolition/renovation, resulting in a condo-finished, Class A apartment community delivered at a 20% discount to replacement cost

Exit Strategy:

• Sale to core buyer