Crossgates, Inc. provides real estate development services for build to suit lease and multifamily residential projects, and as a consultant to owners, investors, and institutions. We follow a well structured process for each of our projects.

• Business Parks
• Industrial Parks
• Retail Centers
• Condominiums
• Affordable Housing
• Flex R&D
• Light Industrial / Warehouse / Distribution

I. Site Selection Phase

A Systematic Approach is required in considering a site for any real estate project. For the project envisioned by Crossgates, the development team conducts a comprehensive Review and Investigation of:

• Market conditions
• Demographics
• Market cap rates
• Visibility
• Community and governmental support
• Regional infrastructure
• Supply and demand of competing projects

If the conditions are favorable, a Purchase Contract is negotiated for the site selected with a sufficient option period to perform detailed analysis of all significant development factors.

II. Due Diligence Phase

The Due Diligence Phase is the most critical part of any real estate development project. We coordinate the team of professionals to address every significant aspect of the project.

Site Review - Analysis is required of the following site characteristics:

• Geotechnical conditions
• Topography
• Environmental assessment
• Transportation systems
• Utility location and capacity
• In addition, a title search is conducted to document all easements and encumbrances.

Zoning and Governmental Review - A detailed review of the local zoning ordinance is required to determine the uses, setbacks, height restrictions, parking ratios, and other factors required for the site in question. In addition, the nature, timing, procedures, and costs of all permits, fees, and approvals must be obtained.

Market Review - The market comparables must be understood and documented to determine the probable income stream for the development.

• Rental rates
• Escalation factors
• Budgeted expenses
• Tenant improvement allowances
• Sales projections
• Required amenities

Planning and Design - Preliminary site plans are reviewed to determine the rentable square feet which can be developed. This serves as the basis for preliminary cost estimates. In addition, we will lead the team in exploring the appropriate value engineering alternatives to maximize the project's qualitative and quantitative efficiencies.

Financial Planning and Structure - A Financial Plan for the project is prepared which establishes a debt and equity structure based upon the projected income stream and the budgeted construction and other costs anticipated for the project.
Closing

Assuming acceptance of the results of the detailed review and analysis conducted during the Due Diligence Phase, Agreements and Contracts are negotiated and finalized by Crossgates, including:

• Engineering
• Architectural
• Construction
• Brokerage
• Debt and equity agreements
• Tenant lease

The site is Purchased and the development begins.

III. Development Phase

Prior to construction, the following are finalized and secured:

• Site and building plans and specifications
• All governmental permits and approvals
• All professional contracts for the team
• Utility contracts for installation, extension, capacity reservation, and use
• Financial Plan and Project Budget

Upon commencement of Construction, Crossgates manages the development team to complete the project within the established time and budget constraints. Weekly job meetings are used by Crossgates to monitor the progress, and anticipate the issues to be resolved.

Crossgates' experience and organizational discipline ensures that if and when required, alternatives will be developed and all issues will be resolved in a time and cost effective manner.

IV. Operational Phase

Upon completion, Crossgates implements Property Management systems to safeguard the real estate assets, maintain the income stream, and enhance the Value.