A PowerPoint I formatted for the partners who used it to pitch potential investors.

1. 1 Opportunity Partners Fund II, LP “Current opportunity for value creation in the distressed Twin Cities real estate market”

2. 2 Opportunity Partners Fund II, LP Opportunity Opportunity Partners Fund II, LP Strategy Expertise

3. 3 Opportunity Partners Fund II, LP Opportunity Opportunity Partners Fund II, LP Strategy Expertise

4. 4 US Economy Today Stock market has rebounded some, but remains volatile Unemployment elevated Home foreclosures remain high Home prices remain depressed Commercial real estate values weak Financing for real estate (especially commercial) difficult

5. S&P 500 Index 5 31% 57% 59%

6. S&P/Case-Shiller Home Price Index 6 US 29% US 32% MSP 36% MSP 29% Source: Standard & Poor’s

7. Moodys/REAL Commercial Property Price Index (CPPI) 7 39%

8. 8 2009 Holders of Commercial Mortgage Loans 4% 28% 42% 10% 9% 7% Source: Mortgage Bankers Association

9. 9 CMBS Issuance 2000-2010 * As of 07/23/2010 Source: Mortgage Bankers Association

10. CRE Loans at US Banks 10 Gross Loans ($ in millions) Source: Federal Reserve

11. 11 Opportunity As real estate has historically been a very leveraged asset class, this lack of credit is greatly impacting real estate values The combination of the challenging economy and credit market turmoil is creating huge and continuing downward pressure on real estate values (all types) History suggests that this distressed market will provide many opportunities to make excellent buys on real estate

12. 12 Opportunity Partners Fund II, LP Opportunity Strategy Opportunity Partners Fund II, LP Expertise

13. 13 Cycle of Emotions

14. 14 Strategy Make opportunistic buys of real estate and real estate related assets Focus on assets in which our group has particular knowledge and/or expertise Attention to downside protection Remain patient – majority of value created on the buy

15. Bank Failures, 1970-2010 15 Annual U.S. Bank Failures S&L Crisis: 2,935 Bank Failures 2010: *Current -110 Est. - 172 2009: 140 Banks * As of 08/20/2010 Source: FDIC

16. 16 Bank Failures, 1970-2010 Annual U.S. Bank Failures – Total Assets 2008: $372B 1989: $164B S&L Crisis: $924B Total Assets Source: FDIC

17. Banks 17 Total Number of Problem FDIC-Insured Institutions, with Assets ($M) Source: FDIC Quarterly Banking Profile

18. Banks 18 Source: FDIC

19. Banks 19 Source: FDIC

20. Banks 20

21. Banks 21

22. 22 Strategy Much of real estate we intend to buy is owned by (or mortgaged to) regional and community banks We will utilize Strong bank relationships Proprietary bank research Government bank programs – loss sharing agreements

23. 23 Strategy - Example Skyscape Minneapolis, MN Investment ~$11.6MM 72 units purchased 50% below 2006 development cost 55% below 2007 prices Expecting a 25% unlevered return (net profit of ~$7 million)

24. 24 Strategy - Example Skyscape Minneapolis, MN Patience – 2 year pursuit Relationships – negotiated deal Downside protection – 50% below replacement cost Area of expertise

25. 25 Strategy Asset Types Residential real estate Commercial real estate Land assets Performing and non-performing loans secured by the above Purchase Formats Negotiated Auction

26. 26 Strategy Assets acquired to be aggressively managed during hold period (2-4 years) Assets sold as markets allow

27. 27 Opportunity Partners Fund II, LP Opportunity Opportunity Partners Fund II, LP Strategy Expertise

28. 28 General Partner

29. 29 General Partner

30. 30 General Partner More than 100 years collectively of real estate experience Bank ownership and management Impressive track record with Fund I Proven ability to remain patient Proven ability to close deals

31. 31 Fund I Investments Skyscape Minneapolis, MN Investment ~$11.6MM 72 units purchased 50% below 2006 development cost 55% below 2007 prices Expecting a 25% unlevered return Summercrest Brooklyn Park, MN Investment ~$2.3MM 18 units purchased 25% below 2004 development cost 45% below 2007 prices Expecting a 15% levered return

32. Fund I Investments Residential 1st mortgage land loan Bloomington, MN Investment ~$1.25MM Performing < 50% LTV at today’s values Expecting a 19% unlevered return SFH Foreclosure Portfolio Minneapolis, MN Investment ~$750k Buy and fix-up for ~$80k average Sell at ~$120k average Expecting a 30% unlevered return 32

33. 33 Fund I Returns Overall, Fund I expects to deliver a 16% IRR to limited partners Consistent with original expectation With limited downside risk In spite of very limited leverage

34. 34 Fund I Experience Fund II investors will benefit from Fund I experience Proven investment methodology Established relationships Market research Market credibility Deal pipeline

35. 35 Opportunity Partners Fund II, LP Opportunity Opportunity Partners Fund II, LP Strategy Expertise

37. Up to $25MM in total equity commitments

38. Five (5) year term

39. Investment period of 24 months

40. Leverage not greater than 67%

41. Market fees cover costs

42. 5% initial capital call, then called as needed

44. Allocation Example Assume: $1,000,000 purchase Sell in (1) year for $1,250,000 Profit is $250,000 Distribution: $1,000,000 to LPs (return of capital) $100,000 to LPs (preferred return) $25,000 to GP (“catch up”) $62,500 to LPs/GP in 80/20 ratio $62,500 to LPs/GP in 70/30 ratio Profit to LPs: $193,750 Profit to GP: $56,250 38

45. 39 Summary …To purchase at historic lows… Huge opportunity now exists… …Using our deep relationships, experience and proven track record to select the best opportunities! Opportunity Strategy Expertise

46. 40 Summary Opportunity Opportunity Partners Fund II, LP Strategy Expertise

47. 41 Opportunity Partners Fund II, LP “Current opportunity for value creation in the distressed Twin Cities real estate market”

48. Sample Opportunity 42

49. Sample Opportunity 43

50. Sample Opportunity 44