Starfire Energy Proposal



TRANSACTION MANAGEMENT Due to the size & overall scope of the proposed facility, it’s imperative both on & off market opportunities are uncovered throughout the search process. Once the facility & land plot size has been determined, Steve, Drew, & Rob will work in tandem with C&W’s Colorado Springs & Fort Collins’ offices to locate any off-market opportunities that aren’t formally being marketed for sale / lease throughout the Front Range. With over 90 brokers throughout Colorado, C&W is uniquely positioned to locate ALL viable opportunities for Starfire’s consideration. Throughout the vetting phase, the Project Team will create a customized real estate feasibility evaluation of potential sites / buildings to include the following as appropriate: • General location attributes such as soft-support for production and manufacturing facilities • Access to transportation nodes, railways, ports, and interstates

• Zoning and entitlements support in key industrial areas • Local permitting processes • Quantity of potential sites, existing facilities and under construction buildings that could potentially meet project objectives The real estate feasibility study is an iterative process that starts after identifying potential sites that meet labor and workforce requirements. This study will also be conducted in parallel to the incentives feasibility study. As both studies complete, C&W will combine all relevant data into integrated deliverables for a holistic view of the top candidate market locations and all of the appropriate attributes. Each market location will be benchmarked against each other with scorecards. As it relates to deal structure itself, the options below represent various transaction structures Starfire could utilize to finance this project.


Benefits: Investor fully funds construction and takes forward pricing risk Risks: Forward premium required by Investor (to compensate for construction and timing risk) means rent could be higher than in the Post Construction Sale-leaseback scenario. The opposite could be also true if there are material changes in capital markets environment.

1. Forward Take-Out / Fee Developer • Company identifies a BTS site that it controls

• C&W markets the BTS opportunity to the net lease community on behalf of Company, selects an investor and negotiates a lease • Company simultaneously selects a developer who will construct the facility for a fee; Developer executes Construction Agency Agreement with Investor • Upon lease execution, investor funds construction of facility and upon construction completion, Company begins paying rent 2. Post-Construction Sale-Leaseback / Fee Developer • Company identifies and purchases a BTS site which they control • Company selects a developer who will construct the facility for a fee • Company fully funds construction (on balance sheet) and upon construction completion markets, sells and leases back the facility to an investor 3. Developer Lease • Company identifies a developer-controlled BTS site or selects developer to purchase identified site • Company negotiates a lease and development agreement with developer • Upon lease execution, developer constructs the facility for Company • Developer maintains ownership and may retain ownership or sell to an investor upon construction completion

Benefits: No forward premium paid to Investor Risks: Company fully funds construction (on balance sheet) and takes forward pricing risk

Benefits: Developer takes forward pricing and construction risk Risks: Likely the highest cost scenario to Company as a result of the leverage a developer could exercise via control of the desired site. Developer would require a spread between yield-on-cost (used to compute rent) and the underwritten cap rate resulting in additional developer profit and higher rent for Company

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