dr. andrew rothschild tucker bartlett september 24, 2008

Dr. Andrew Rothschild

Tucker BartlettSeptember 24, 2008

Presentation Outline• Scientific Properties background• Golden Belt overview• Lessons Learned by the Developer

historic textile mill

campus

35 artist studios

37 live work lofts

LEED-registered

30,000 SF retail

70,000 SF office

historic textile mill campus

35 artist studios37 live work loftsLEED-registered30,000 SF retail70,000 SF office

historic textile mill campus

35 artist studios37 live work loftsLEED-registered30,000 SF retail70,000 SF office

historic textile mill campus

35 artist studios37 live work loftsLEED-registered30,000 SF retail70,000 SF office

historic textile mill campus

35 artist studios37 live work loftsLEED-registered30,000 SF retail70,000 SF office

historic textile mill campus

35 artist studios37 live work loftsLEED-registered30,000 SF retail70,000 SF office

historic textile mill campus

35 artist studios37 live work loftsLEED-registered30,000 SF retail70,000 SF office

The Structure

Tucker’s Top 10 Closing LessonsThe Speed Points

1. Select the right teamAccountant, lawyer, architect (or historic

consultant), lender (and lender’s lawyer), title insurance

2. Don’t let your “to do’s” slow the process3. Start survey, appraisal, insurance asap4. Set a hard closing date, mini-milestones, and

weekly check-ins5. Stay involved and try to understand the

issues

Tucker’s Top 10 Closing LessonsThe Other Points

6. Don’t be afraid to challenge the professionals7. Don’t let the structure drive business

decisions8. Don’t let the structure create taxable income9. Don’t let the structure let cash out of the

deal10.Negotiate a cap on the legal expenses you

pay on behalf of your investor and lender

Think About the FutureOngoing Concerns

1. Ongoing accounting fees- limit the number of audits and tax returns required

2. Get your accounting and reporting processes set up right away• Write a memo to yourself explaining the

transaction in your own words right after closing

Think About the FutureExit Concerns

1. Think of legal incentives as well as financial to push your investor to leaver after five years

2. Understand tax consequences of the exit• Are any funds structured as loans that will be forgiven• 32/39ths- negative amortization; who pays the taxes?

Dr. Andrew Rothschild

Tucker BartlettChief Operating Officer

tucker.bartlett@scientificproperties.com919-967-7700