ConfidentialPrepared by Jerry Lewless

Real Estate Broker, Smith McIntosh Properties, Inc

Largo, Florida

Mixed Use Developme

nt Opportunity

INTRODUCTION This project proposal summary highlights assessment for the highest and best use for two city blocks along the north side of West Bay Drive, Largo FL 33770. The site area includes twelve parcels of land totaling +/-2.76 acres bounded on the North by 1st Ave NW and on the South by West Bay Drive between 5th Street and Ridge Road. The site is located within the designated West Bay Drive Community Redevelopment District which provides a variety of financial incentives for redevelopment. It is zoned Mixed Use Development (MUD). After a thorough market and financial feasibility analysis of potential uses for the site, Square Peg Development LLC has determined that a mixed-use development featuring 123 residential units, 61,500+/- gross square feet of commercial space, and accompanying structured parking would garner the least risk and greatest return from the market.

Project Description: Based on the Investment Strategy, the Manger identified the target project as a mixed-use development project located on two city blocks along the north side of West Bay Drive, Largo FL 33770. The site area includes twelve parcels of land totaling +/- 2.76 acres bounded on the North by 1st Ave NW and on the South by West Bay Drive between 5th Street and Ridge Road. See Figure 1, below. It has frontage of almost 600 feet on West Bay Drive and is located between two major north/south arterial roadways that have daily traffic counts in excess of 36,000 AADT.

February 2016 Cautionary Note Regarding Forward-

Looking Statements: Information in this release that involves the expectations, plans, intentions or strategies of the Company regarding the future are forward‐looking statements that are not facts and involve a number of risks and uncertainties. In this release, they are

identified by references to dates after the date of this release and words such as

"will," "remains," "to be," "plans," "believes," "may," "expects," "intends," and

similar expressions. Factors that could cause actual future results to differ

materially from those expressed in the forward‐looking statements set forth in this release include, but are not limited to, the timing and successful completion of the

engagement. The forward‐ looking statements in this release are based upon

information available to the Company as of the date of this release, and the Company assumes no obligation to update any such

forward‐looking statements. Forward‐looking statements believed to be true when made

may ultimately prove to be incorrect. These statements are not guarantees of future performance and are subject to risks,

uncertainties and other factors, some of which are beyond our control and may

cause actual results to differ materially from our current expectations.

Unprecedented vitality in U.S. rental apartments

Rental apartments are still outperforming in the U.S., with rental growth accelerating to its highest pace this cycle and all major markets registering positive absorption. Institutional investment volumes continue to grow in Europe, with Germany achieving a record year for transaction volumes and the UK market expected to gather speed through 2016. Sales activity has continued to decline in Dubai, although falls in prices have been modest. In Asia, an accommodative policy stance, including a cut in interest rates, has provided support for high-end sales volumes in China.

Unprecedented vitality in U.S. rental apartments

Rental growth for apartments in the United States remained strong throughout tracked markets in 2015. Nationally, rents have accelerated to 4.3% growth year-on-year, representing the fastest rate of increase this cycle and the largest advance since the second quarter of 2008. Thirteen markets have seen rental growth in excess of 5% year-on-year, with Western and Southeast regional markets seeing the greatest uplifts in rents. Yearly absorption on a national level continues to be unchanged at 1.6%, with all major markets demonstrating positive absorption.

Average Rental Rates in Largo, FL

In order to provide you with the most relevant information during your apartment search in Largo, Florida, the following summary offers up-to-date statistics regarding average rental rates as of March. These averages were generated using 804 applicable apartment listings that were posted throughout this month in Largo. The average price of a studio apartment in Largo is $1,258. A one bedroom apartment has an average list price of $1,013. If you’re interested in an apartment with several rooms in Largo, then, on average, a two bedroom rental will cost you $1,095. Average rent for a three bedroom apartment is $1,561.

Average Rents for Locations Near Largo, FLIn Largo, Fl, a two bedroom rental will on average cost $1,095. Belleair Beach, Fl, where the average price of a two bedroom apartment costs $2,783. Indian Rocks Beach, Fl is another alternative. The average price of a two bedroom rental in Indian Rocks Beach, Fl is $2,267. In Clearwater, Fl, the average price of a two bedroom rental runs $1,430. The neighboring community of Seminole, Fl has an average rental price of $1,425 for a two bedroom rental. Also nearby is Indian Shores, Fl. The average cost of a two bedroom rental property in Indian Shores, Fl is $2,137. Another potential option is Redington Shores, Fl, where a two bedroom rental has an average cost of $1,900. Pinellas Park, Fl. The average price of a two bedroom apartment in Pinellas Park, Fl is $1,130.

Largo, FL, Rental History and TrendsAccording to rental history data, as of March, any changes to the average rental rates for Largo, Florida, from October to March is reflected in the following averages. These average rates were generated using 2364 apartment listings that were posted throughout the past six months in Largo. The average rental rate in October was $1,096, as compared to one-month later during November, which was $1,092. In December, the average rental rate was $1,102 while in January the average rental price was $1,120. Most recently, in February and March, the average rental prices were $1,119 and $1,095, respectively.

518 wBay

518 WBay

Premium redevelopment location

Largo officials focus on priorities City takes steps to improve growth, beautification and development

By CHRIS GEORGE

Article published on Wednesday, Feb. 17, 2016   Print E-Mail  

LARGO – Over the past decade, the city of Largo has put an emphasis on fostering redevelopment, growth and

beautification. All three of those priorities were on display during the City Commission meeting Feb. 16.

Development of downtown Largo took a step forward when the City Commission voted 6-0, with Samantha Fenger

absent, to authorize a development agreement with Central Largo LLC for properties in the 500 and 600 blocks of West

Bay Drive.

Local developer Gary Tave is seeking to build a seven-story and four-story building with commercial space making up the first two floors of both structures and residential space

occupying the rest, but the agreement needed to be confirmed in order to approve the building height and

density under the West Bay Drive Community Redevelopment Plan.

Jerry LewlessLicensed Florida Real Estate Broker407-353-8139JLewless@SmithMcIntosh.comwww.SmithMcIntosh.com1971 Lee Road, Suite BWinter Park, FL 32789

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