225 REINEKERS CASE STUDY – CLOSED MARCH 2025

Silverline Equities was offered a unique, off-market opportunity to invest $3.0M in a preferred equity tranche in the entity that owns 225 Reinekers Lane in Alexandria, Virginia (the "Property"). This investment was made at an $18M valuation compared to the prior basis in the Property of $55.6M. We are partnered with Golden Aspen Partners on this acquisition.

225 Reinekers is an approximately 130,000 sf office building in the King Street Station submarket of Alexandria. The Property was originally developed in 1987 and renovated in 2015 and 2020. The ownership agreed to a loan modification with Key Bank that bifurcated its $25M first mortgage loan into an $18M A Note and a $7M B Note. Our investment was used to pay down the A Note by $2.5M to $15.5M, with those funds being available to redraw to fund spec suite buildouts and leasing costs. Silverline Equities will co-manage the property to ensure the leasing strategy is successful.

The preferred equity position is entitled to a 20% IRR after repayment of the first mortgage but before any principal payments are made on Note B and to continue to share in the waterfall through the B Note and Equity distributions.

Since closing:

- Executed 20,827 square feet of leases across four transactions

- Designed and started construction on 16K square feet of “spec suites” with a prelease of 5,553 SF already signed.

- Partnered with Alexandria Economic Development Partnership and the four other owners of King Street Station to launch a new farmers market.

- Working with the King Street Station Association of owners to redevelop and significantly improve the user experience in the shared parking garage.

Underwriting Summary:

• Initial Contribution: $3.1M

• Investor Return: 32.3% (based on 3-year hold and 9% exit cap)

• Base Case Multiple: 2.3x

• WalkScore: 97