Al-Khafaji reviews development timeline and conversion process

For the development timeline for this project, the sponsor designation process has already occurred.

As previously mentioned, Lemley and Wolf has been designated.

We're currently in the pre-development phase.

We've had continuous tenant engagement.

Scope of work has been determined.

Budget and financing are currently in the works.

We have 94% tenant sign-off on layouts, and we plan to obtain 100% in the coming weeks.

And we plan to have all tenants relocated by fall of 2026.

We're anticipating that construction will take between 24 and 30 months.

During that period,

The deed of the buildings will be transferred from the city to restoring communities, the temporary owner of the buildings.

Then the construction loan will close and construction will begin as soon as the tenants are relocated.

Tenants will attend the previously mentioned co-op homeownership trainings and then the sponsor will engage an attorney to create an offering plan, which is what allows us to convert to co-op at the end of construction.

After construction finishes, we anticipate it will take between 9 to 12 months to go through the marketing conversion process so that the tenants can be moved back to the building as soon as it's ready.

Marketing for the vacant units will begin.

The buildings will convert to co-op once those units are being marketed and have signed purchasers, and the deed will be transferred to the co-op, and then the construction loan will be paid off at that co-op conversion point by permanent financing.

Next slide, please.

And here I'll pass it off to Mike McCarthy of Lemley& Wolfe to speak about their organization's experience.

Thank you.