Tax Exempt Real Estate Fund

$150,000,000

Acquisition of Mortgages
Secured by Various Commercial Properties

22 States
December 2008 - May 2009

JDI purchased a $7,932,000 loan portfolio secured by 7 loans from a bankrupt finance company. JDI saw all of the collateral and closed all cash in less than 30 days.

JDI purchased a $9 million pool of performing gas station loans in a FDIC auction. We closed the transaction all cash in less than 10 days after our initial bid.

JDI purchased a $94,210,000 loan portfolio from a bankrupt finance company which included 54 properties in 17 states. JDI saw all of the collateral and closed all cash in less than 30 days.

JDI purchased a nationally flagged hospitality loan from a regional bank in the southeast. We closed the transaction all cash 6 days after initially learning about the opportunity.

JDI acquired a $14 million portfolio from a regional Chicago bank. We closed the transaction with all cash less than 10 days after commencing due diligence.

JDI and BRP formed TEREF to acquire tax-exempt debt secured by special assessments and thus "super senior" to any mortgages from recently developed commecial and large residential properties.

JDI purchased from a subsidiary of The Royal Bank of Scotland a $16,000,000 portfolio of 15 defaulted first mortgage loans secured primarily by multi-family apartment buildings on the south side of Chicago. JDI closed all cash within 10 days of submitting letters of intent.

JDI recently purchased two defaulted land loans being marketed for sale through a national loan sale advisor working on behalf of Chicago based Cole Taylor Bank. JDI closed all cash within one week of being selected as the winning bidder.

JDI recently purchased three defaulted loans totaling $5,000,000 from Chicago based Private Bank and Trust. The collateral consists of an infill parcel of land, a north suburban apartment building and a retail shopping center in Michigan. JDI closed all cash within one week after agreeing to a sale price with the seller.

JDI recently purchased four loans totaling over $7,000,000 which were marketed by a loan sale advisor on behalf of Milwaukee based M & I Bank. JDI closed all cash within days of being selected as the winning bidder. The loans were secured by prime locations on Chicago’s north side improved with two apartment complexes with ground floor retail, an 80% built condominium project and a vacant restaurant.

JDI recently joint ventured with Bixby Bridge Capital of Northbrook, IL to acquire a $120,000,000 land loan portfolio marketed by a loan sale advisor on behalf of Utah based Zions Bank. The loans are secured by over 5,000 acres of residential land developments located in California, Utah, Nevada, Arizona, Texas and Florida. The joint venture closed all cash less than one week after agreeing to a price with the seller.

In July 2009, the principals of JDI formed Tax Exempt Real Estate Fund I, LLC (“TEREF”) in conjunction with Brownfield Renaissance Partners LLC. TEREF will acquire tax-exempt debt secured by special assessments from recently developed commercial and large residential properties. This debt is typically issued by municipal entities on behalf of real estate developers to fund the infrastructure associated with large scale developments. Since it is generally backed by special assessments that are paid with a real estate tax bill, it is senior to even a first mortgage and as a result it is often called “super senior”. This market is a large, opaque and highly inefficient sector of the real estate capital markets that currently trades at substantial discounts, despite its super senior position. We believe this market offers strong performing or slightly stressed deals that can be purchased at very attractive tax-exempt yields. TEREF focuses primarily on debt secured by projects that are fully built out with a broad range of commercial and residential properties, including retail facilities, hotels, senior living facilities, student housing, apartments, industrial and warehouse buildings and office buildings.

Important aspects of TEREF are as follows:

Opportunity fund capitalizing on severe dislocation in tax-exempt real estate debt markets
“Super-senior” tax-exempt real estate debt, generally most senior 5-30% of a project’s capital structure
Generally backed by special assessments or special taxes, senior to first mortgage debt
Focus on “class A” real estate
Strong infill locations in major metropolitan areas
Recently-developed commercial and large-scale residential properties
25% – 40% discounts to face amount of debt
Excellent downside protection with high current income
Substantial upside potential through accretion of discounts and pro-active value enhancement activities

TAX EXEMPT REAL ESTATE FUND