Happy City

Development
Real Estate
Presentation
Happy City real estate is a n established real
estate development and contractor company
that specializes in fabricated condo and large
scale residential development in large cities
including New York, Miami, and Los Angeles. It
is seeking preferred equity and lending
Happy City
partners to finance the development of
Development
properties presently in its pipeline.
Real Estate
Presentation
 Real Estate Landscape
A Significant Opportunity Exists in Commercial Development

The market for real estate is not only

1
25% Of commercial projects are
residential in nature.

growing, but is most stable and has

the highest potential in the segment
and cities Happy City focuses on.
2
80% Of the market of existing
homes need significant repair.

3
50% Of consumers prefer a newly
build home or condo.

4
70% Or cities are investing in condo
and high rise development.

New home
owners represent
over 70% of sales.
Most new high rise
development
requires little
marketing effort.
Many homes are in
need of significant
repair beyond
investment.
5
60% Of home values are increasing
in the target geographies.

3
About our Company

Happy City is a commercial development company focusing on large scale

residential, condos, and high rise development in urban areas. The company
focuses on key cities where housing growth has shown significant demand such as
New York City, San Francisco, Miami, and Sacramento.

The company combines four main factors which drive the decision of where to
develop, how to develop, and ultimately exit the properties. Its strict methodology
has helped it to achieve alpha level returns on properties since inception.

Location Building Environment Community

Selection Type Awareness Development
The location of the property is based The building type is selected based The site and build structure is Happy City invests in the nearby
on several factors including on the budget, property price, and carefully designed around community to increase overall
population, growth, and income. overall location. environmentally friendly practices. housing prices.

4
Who
We Are ?
 Who We Are?
A team of experienced professionals across real estate construction, financial management, real estate sales, and management. We combine over 100 years of expertise
across all aspects of the real estate industry to produce a synergistic value centric company that develops communities and enables families.

1 2 3 4

Steven Wilks Amy Albreitch Roger Jones Sandra Miller

CEO/Founder COO/Co-Founder CFO Real Estate Agent

Steven has over thirty years in Amy has managed several large Roger is a senior finance Sandra is a real estate agent
the real estate industry as a companies including Century21 executive with experience at with thirty years selling
leading industry professional. and hotel chains. Goldman Sachs and JP Morgan. apartments and condos.

6
Our
services
Commercial developers which have acquired several
smaller contractor agencies in order to produce at a
cheaper cost and enable year-round revenue
generation opportunities.
Our
services
The service portfolio of Happy City extends
beyond commercial development. This yields two
values. First, it generates year-round cash flows to
avoid liquidity constraints between sales. Second,
it leverages economies of scale with a vertical
workforce to avoid unionization and dependency
on independent contract labor.
Construction focusing on residential and new
1 development of other companies.
Home renovation services for existing
2 residential homeowners.
Roofing services including metal roofing and
3 roof repair using shingles.
General contractor services which includes
4 small home repair and construction.
Property management and real estate
5 brokerage for buying, sales, and renting.
8
 Our Service Portfolio
Our combination of services is synergistic and generates a combined value

4
5

3
6

2 Development Renovation
New development
draws upon other Renovations of
Contractor services in the portfolio existing homes.
General contractor mix.
services.
Community
1 Consulting Investment into the
community to promote
Consulting is provided gentrification and
to help companies build safety.
and manage homes.
Agency
The real estate agency
serves to reduce
reliance on third-
parties.

9
 Our Services
The services offered by Happy City Real Estate are all operated through subsidiary companies acquired through M&A and has been expanded
in order to enable lower cost development and higher returns by avoiding unionized labor and allow steady year-round revenue streams.

Constructions Construction Consultant House Renovation

New construction Advisory on LEED building Renovations of previously
development and contract. management and development. developed properties.

Brokerage Services Metal Roofing Green Building

Real estate agency sales and Metal roofing services for Ever since the 1500s, when an
leasing for third parties. contracted homes. unknown printer took printer.

Property Management General Contracting Laminate Flooring

Contracted property management General contractor services Ever since the 1500s, when an
for portfolio and third-parties. unknown printer took unknown.
 Our Services

Constructions
Focused team of contractors and part-time
1 tradesmen avoid unionization.
The construction services of Happy City
are designed to assist companies in the Careful planning to ensure legal compliance,
2 environmental protection, and efficiency.
development of residential, commercial,
and multi-use buildings in cities where Directed by an experienced management
3
real estate construction is complex and team and construction consultants.

challenging such as dense urban areas Professional network of advisors and specially
4
and locations with environmental trained experts across thirty fields.
hazards.
First-hand development experience in condos
5
and high rise luxury real estate.

The construction services are presently offered in New York, Miami, Los Angeles, and
pending introduction in Quebec and Latin American cities.

11
 Our Services

Property Management
Focused team of contractors and part-time
1 tradesmen avoid unionization.
The property management services of
Happy City are designed to be applied to Careful planning to ensure legal compliance,
2 environmental protection, and efficiency.
the existing portfolio of Happy City, in
addition to new clients that are only Directed by an experienced management
3
seeking management service to ensure team and construction consultants.

that their tenants are properly cared for Professional network of advisors and specially
4
and that the building receives rent on trained experts across thirty fields.
time with maximum building protection.
First-hand development experience in condos
5
and high rise luxury real estate.

The property management services are presently offered in New York, Miami, Los
Angeles, and pending introduction in Quebec and Latin American cities.

12
 Our Services

Construction Consultant
Focused team of contractors and part-time
1 tradesmen avoid unionization.
As experienced construction
consultants, the team at Happy City Real Careful planning to ensure legal compliance,
2
environmental protection, and efficiency.
Estate has helped hundreds of
construction companies and real estate Directed by an experienced management
3
developers maneuver complex team and construction consultants.

environments, design and develop Professional network of advisors and specially

4
reliable build structures both on time trained experts across thirty fields.
and on budget.
First-hand development experience in condos
5
and high rise luxury real estate.

The construction consulting services are presently offered in New York, Miami, Los
Angeles, and pending introduction in Quebec and Latin American cities.

13
 Our Services

General Contractor

Focused team of contractors and part-time

The general contractor services of
Happy City Real Estate ensure that every
client is properly cared for while
avoiding unionized labor and ensuring
that projects are completely in a
professional, timely manner according
to budget and a specific project scope
for everything from residential to large
scale commercial.
1 tradesmen avoid unionization.
Careful planning to ensure legal compliance,
2 environmental protection, and efficiency.
Directed by an experienced management
3
team and construction consultants.
Professional network of advisors and specially
4
trained experts across thirty fields.
First-hand development experience in condos
5 and high rise luxury real estate.

The general contractor services are presently offered in New York, Miami, Los Angeles,
and pending introduction in Quebec and Latin American cities.

14
 There are several developments
presently in place for which Happy
City Real Estate is seeking limited
partners with the option to invest in
Property
Pipeline
equity for the entire project or to
purchase individual condos in the
facility in advance at a discount.
 Real Estate Service Mix
The real estate service mix is based on the current classification of services over the past four
months by category for development, general contractor, and real estate.

125
Percentage of revenue generation by
Development service mix classification.
100
Real Estate Development

Contractor
75
60% Generated from real estate
development services.

Services 50
Contractor Services

25
30% Generated from general
contractor and repair.

Real Estate
Services
Other Services
0
April May June July 10% Generated from other real
estate services.

The real estate segmentation is based on historical figures. Projected figures as

outlined in the financial projections (appended) are based upon these figures.

16
 Property Deals
An overview of current development projects in the pipeline for FY 2017

Property Name Code Number Deal Amount IRR Target Remark

SunShore South SKT8 002 88,002,180 22% Condo Development

Diamond Plaza UA10 012 10,012,050 15% Luxury Apartments

Summer Brooks CC689 560 689,560,000 12% Luxury Apartments

Summer Estates XM88 002 86,022,000 8% Multi-Use

Diamond Park T2 10 012 100,012,802 15% Multi-Use

Focused team of contractors and part-time Directed by an experienced management First-hand development experience in condos
1 3 5
tradesmen avoid unionization. team and construction consultants. and high rise luxury real estate.

Careful planning to ensure legal compliance, Professional network of advisors and specially Detailed development plan for new
2 4 6
environmental protection, and efficiency. trained experts across thirty fields. developments over the next ten years.

17
 Property Deals
An overview of current development projects in the pipeline for FY 2017

SunShore South Project Diamond Plaza Project Summer Brooks Project

1 2 3

Property Amount Target IRR Property Amount Target IRR Property Amount Target IRR

Single Unit 88,002 88,002 Commercial 88,002 88,002 Commercial 88,002 88,002

Single Floor 10,012 10,012 Condo 10,012 10,012 Condo 10,012 10,012

Commercial 689,560 689,560 Single Unit 689,560 689,560 Single Unit 689,560 689,560

Single Floor 88,002 88,002 Single Floor 88,002 88,002

Construction 10,012 10,012

18
 Some Exclusive
Properties 1
Code # 650 SKS 5640 Location : Chicago, IL Category: Residential

Sunshore DEVELOPED BY:

South
KAWABUiLD

Property Name Code Number Deal Amount Growth Target IRR

Single Unit SKT8 002 88,002,180 88,002,180 88,002,180

Condo Unit UA10 012 10,012,050 10,012,050 10,012,050

The SunShore South property is a planned will have three investment options for the sale of a complete the development which it intents to pay
development for FY 2020 that has already condo unit, apartment units, and floor level within thirty-six months of development completion.
commenced in conjunction with the build partner, investments. The company is also considering debt The full details of the investment and projected
KawaBuild in Chicago, IL. The residential property investments with high yield secured notes to returns are provided in the table above.

19
 Some Exclusive
Properties 2
Code # 650 SKS 5640 Location : New York, NY Category: Condo

Diamond DEVELOPED BY:

Plaza
KAWABUiLD

Property Name Code Number Deal Amount Growth Target IRR

Single Unit SKT8 002 88,002,180 88,002,180 88,002,180

Commercial Unit UA10 012 10,012,050 10,012,050 10,012,050

The Diamond Plaza property is a planned will have three investment options for the sale of a complete the development which it intents to pay
development for FY 2022 that has already condo unit, apartment units, and floor level within thirty-six months of development completion.
commenced in conjunction with the build partner, investments. The company is also considering debt The full details of the investment and projected
KawaBuild in New York, NY. The residential property investments with high yield secured notes to returns are provided in the table above.

20
 Some Exclusive
Properties 3
Code # 650 SKS 5640 Location : Miami, FL Category: Multi-Use

Summer DEVELOPED BY:

Brooks
KAWABUiLD

Property Name Code Number Deal Amount Growth Target IRR

Single Unit SKT8 002 88,002,180 88,002,180 88,002,180

Commercial Unit UA10 012 10,012,050 10,012,050 10,012,050

The Summer Brooks property is a planned have three investment options for the sale of a complete the development which it intents to pay
development for FY 2023 that has already condo unit, apartment units, and floor level within thirty-six months of development completion.
commenced in conjunction with the build partner, investments. The company is also considering debt The full details of the investment and projected
KawaBuild in Miami, FL. The residential property will investments with high yield secured notes to returns are provided in the table above.

21
Timeline The projected timeline for the company including the development
timeline for current pipeline projects and intended pipeline for new
projects in the consulting, agency/brokerage, and contractor space.

1 2 3
Landscaping
The acquired property
was prepared for
construction in Q3 2016.

Pipeline Approval Construction Development

The current pipeline has been Construction has started being
approved as of Q1 2016. planned as of Q2 2016.
 6 5 4

Finishing
The property interior Security Management
was completed as of Q1 The security features The management of the
FY 2017 were implemented as of facility is currently being
Q2 FY 2017 installed as of Q2 FY 2017.

7 8
The management
office continues to
ensure 100%
occupancy rates.

Ongoing environmentally friendly

practices continue to take place and
Interior Update are enforced by management.
Interior design of the
facility will be updated
on an ongoing basis.

23
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 Projected Operating Highlights By Year ($ M) Projected Revenues By Year ($ M)
2500 2500

Revenue
2000
2000

1500 Gross Margin

1500

1000
EBITDA 1000

500

500
Net Profit
0
Year 1 Year 2 Year 3 Year 4 Year 5
0
(500) Year 1 Year 2 Year 3 Year 4 Year 5

Projected Cash Flow By Year ($ M) Projected Income By Year ($ M)

1200
300

1000
250

Net Cash Flow

800
200

600
150

400 100

Cash Balance

200 50

0 0
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5
 Pro Forma Profit and Loss ($ M)
Year 1 Year 2 Year 3 Year 4 Year 5
Revenue 222,800 1,337,452 1,496,032 1,768,400 2,019,588
Subtotal Cost of Revenue 134,000 871,000 971,500 1,139,000 1,306,500
Total Cost of Revenue $ 134,000 $ 871,000 $ 971,500 $ 1,139,000 $ 1,306,500

Gross Margin $ 88,800 $ 466,452 $ 524,532 $ 629,400 $ 713,088

Gross Margin/Revenue 40% 35% 35% 36% 35%

Expenses
Property Management 3,600 3,708 3,819 3,934 4,052
Insurance 1,440 1,483 1,528 1,574 1,621
Property Tax 7,320 7,540 7,766 7,999 8,239
Professional Services 1,440 1,483 1,528 1,574 1,621
Maintenance & Supplies 600 618 637 656 675
Other SG&A 1,000 1,236 1,273 1,311 1,351
Total Operating Expenses $ 15,400 $ 16,068 $ 16,550 $ 17,047 $ 17,558
Wages & Payroll 283,374 341,697 352,149 363,624 376,224
Depreciation, Amortization & Taxes 9,542 14,129 20,258 32,335 41,510
Net Income $ 63,858 $ 94,558 $ 135,575 $ 216,395 $ 277,797
Net Income/Revenue 29% 7% 9% 12% 14%
 Year 1 Profit & Loss ($ M)
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Revenue 1,900 1,900 1,900 51,900 51,900 51,900 51,900 1,900 1,900 1,900 1,900 1,900
Subtotal Cost of Revenue - - - 33,500 33,500 33,500 33,500 - - - - -
Total Cost of Revenue $ - $ - $ - $ 33,500 $ 33,500 $ 33,500 $ 33,500 $ - $ - $ - $ - $ -

Gross Margin $ 1,900 $ 1,900 $ 1,900 $ 18,400 $ 18,400 $ 18,400 $ 18,400 $ 1,900 $ 1,900 $ 1,900 $ 1,900 $ 1,900
Gross Margin/Revenue 100% 100% 100% 35% 35% 35% 35% 100% 100% 100% 100% 100%

Expenses
Property Management 300 300 300 300 300 300 300 300 300 300 300 300
Insurance 120 120 120 120 120 120 120 120 120 120 120 120
Property Tax 610 610 610 610 610 610 610 610 610 610 610 610
Professional Services 120 120 120 120 120 120 120 120 120 120 120 120
Maintenance & Supplies 50 50 50 50 50 50 50 50 50 50 50 50
Other SG&A - - 100 100 100 100 100 100 100 100 100 100
Total Operating Expenses $ 1,200 $ 1,200 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300 $ 1,300

EBIT $ 700 $ 700 $ 600 $ 17,100 $ 17,100 $ 17,100 $ 17,100 $ 600 $ 600 $ 600 $ 600 $ 600
EBIT/Revenue 37% 37% 32% 33% 33% 33% 33% 32% 32% 32% 32% 32%
 Lets
Discuss
q&a

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T H E E N D

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