OVATION PARTNERS

M E M O R A N D U M

February 7, 2006


To: Friends of the Brexton Hotel and Beyond

From: Lou Steadwell

Subject: Wonderful New Prospect!

At long last, I have found a new prospect in the Mount Vernon section of Balitmore. Attached you will find the detailed descriptions of the properties and the pro forma for prospective conversion project. As you can see, this property has income. Not a lot of income relative to the price (which is probably negotiable), but enough to operate the property at "breakeven" for one or two years, or even three years, just in case we need the time to allow the market to catch up to the proposed sellout price of $350 per foot. I have been inside and have seen all the units. The buildings are newly renovated and are very well maintained. The development idea is to combine the units on the upper floors of both buildings prior to conversion to produce six large flats, to extend the interior and exterior (decks) square footage in the rear to cover the parking, and to create a common meeting area.

Please note also the proximity to Pennsylvania Station, where both the Amtrak and the MARC trains stop.

RESUME

Louis Raymond Steadwell
3022 Chestnut Street, Northwest
Washington, D.C. 20015
magusdc@ix.netcom.com
http:www.washingtondchomes.com

MISSION

To give fully of my competence and energy to serve my family, my clients and customers, and my community.

EDUCATION

MCP, City Planning & Urban Design, University of California, Berkeley 1969-71
B.A., Political Science, University of Connecticut, Storrs 1965
Real Estate Broker Preparation, Lumbleau Institute, Sherman Oaks, CA 1984

PROFESSIONAL EXPERIENCE

Present:     Realtor and Sales Associate. The New Washington Land Company, Inc.

Previous:          Founder and Executive Director. Meridian Public Charter School. 1999-2001
     
     Realtor and Sales Associate. Evers & Company 1999-2004
     Realtor and Sales Associate. RE/MAX Capital Properties 1996-99
     Long & Foster Realtors, 1994-96, Prudential Preferred Properties, 1986-94 Sales Associate.
     
     Broker and Sales Associate. Wagner-Jacobson Brokerage, 1985-86.  
     Sold commercial and investment property in Los Angeles, CA

Partner. Morrow, Steadwell & Associates, 1982-84.  
Organized acquisition, rehab, financing and conversion of multi-unit housing projects in Washington.

Management Trainer. SRA Technologies, 1982-84.
Developed management training for the Department of Labor and Equal Employment Opportunities Commission.

Research Associate. Urban Institute, 1980-82.
Directed site operations for the national evaluation of the CETA employment training program.

Program Administrator. Legal Services Corporation, 1976-80
Directed the Office of Program Support which provided national training and technical assistance to Legal Services lawyers and paralegals.

PERSONAL

I moved to Washington in 1976 to take a position with the Legal Services Corporation. I am married, and make my home with my wife, Christine, and family in Northwest Washington.  My children, Kate 25, Laura 23, Rebekah 17, and my nephew Courtney 21, attended DC public schools.  Kate, a Spelman College graduate, is a second-year law student at NYU, Laura, Amherst College graduate, is an active poet and writer, Rebekah a senior at The Field School, will attend Oberlin College in the Fall, and Courtney, is a student at Virginia State University. I am a member of St. Margaret's Episcopal Church and direct the junior choir. I sit on the Board of Trustees for Capital City Public Charter School and the Chelsea School of Silver Spring,am a member of the Trust for Historic Preservation and an occasional volunteer for Habitat for Humanity.

Ovation Development

Ovation Development


M E M O R A N D U M

December 28, 2005


To: Friends of the Brexton Hotel

From: Lou Steadwell

Subject: Brexton Project At Last!

At long last, the updated plan for the Brexton has been approved by the Commission for Historical and Architectural Preservation  of the Planning Department for the City of Baltimore. (See link to 12/26 Baltimore Sun article: http://www.baltimoresun.com/business/realestate/bal-to.archcol26dec26,0,2292949.column?coll=bal-search-headlines&track=mostemailedlink

I met with the owner, Steve Mowbray, who has restated his intention to sell the building. This time, the price is $1.6 million with the updated historic preservation tax deferral and tax credit (estimated to be at least $400,000) intact. At this point Steve has one other offer, which he says is too low.

Things have changed some since we first looked at this project. Mortgage interest rates, though still historically low, have increased and prices have begun to level off. The condo market in the District is loaded with inventory and so sales have slowed dramatically. The market in Baltimore is still pretty strong (prices keep rising and the inventory is much lower than DC). I think this project can still be done and am still interested.

I have also obtained the updated plans for the proposed renovation, including the redesigned stair tower. The changes by the Preservation Commission require that the stair tower be brick and reiterate the exterior design of the building with the large round windows facing the back street. I have my own copy of the key and plan to visit the building later next week with the contractor. If you are interested in walking the building with us call or drop me an email and I’ll let you know the time.

At this moment, we are in a good position as one of two interested parties. I am working toward gathering the information I need to submit an offer on the building sometime early in January.

Lou Steadwell 

Exterior Staircase Studies

These are concepts for the new exterior fire escape required by the fire marshall. The owner is obtaining more detailed design drawings for this element.

Ovation Development

Ovation Development
 
M E M O R A N D U M
 
October 7, 2005
 
 
To: Friends of the Brexton Hotel
 
From: Lou Steadwell
 
Subject: Brexton project update
 
Well, I'm back from Key West in one piece and learning how to wear shoes again.  I've had a couple of conversations this week with Steve Mowbray, the owner and real estate broker for the Brexton. He reports that although the property is officially "off the market", he has decided NOT to do it himself and will sell it. At this time, however, he is having more detailed plans drawn for the exit stairway and is updating the historic preservation documents for the building. In his eyes, this is an investment that "adds value" to the building, which of course will be reflected in the sales price when he puts it back on the market. The bad news is the further inflation of the sales price, the good is that it will eventually be sold to somebody.
 
I also met with a real estate attorney, Lex Ruygrok, in Baltimore to discuss the idea of the purchase of the existing LLC and its assets (to avoid transfer tax) and the plan for structuring the financing of the project to allow for different levels of financial commitment within the LLC on the part of the investors -- more benefit for higher risk, and finally, the rules for private offerings that affect our proposed financing plan. He was aware of the project and is eager to work with us if we get the building.
 
I spoke with Paul Littman, of Southway Builders, referred to me by my architect, Saskia Van Groningan, a Baltimore contractor who is very familiar with the building. I sent him the preliminary plans for the project and talked to him about our construction estimates. He is willing to help refine our estimates IF we get "site control".
 
Finally, I proposed, in writing, that the owner give us an option on the building (at the "value added" price) during the interval while the stairway plans are being redrawn.
 
We'll see what happens.

LS

Ovation Development

Ovation Development


M E M O R A N D U M

September 15, 2005


To: Friends of the Brexton Hotel

From: Lou Steadwell

Subject: Brexton project update

I held off as long as I could before contacting Steve Mowbray, the owner of the Brexton to see where he stood regarding our proposal to purchase the property with a contingency period. He informed me that he had taken the property off the market in order to explore furthe the possibility of doing the conversion and renovation project himself. I told him that I was going on vacation for two weeks and he suggested that I check back with him at the end of the month to see where he was on the project.

Let’s look a some others.

From Louis Steadwell

From: Louis Steadwell [mailto:magusdc@ix.netcom.com] Sent: Wednesday, September 07, 2005 1:51 PMTo: Cheryl Paul Jones; Christine M. Swearingen; Cleve Harrigan; David Domenici; Greg; Jonathan McClelland; Julia Lara; June Gardner; Leonard Rockett; Linda Hanten; Manuel Gomez; Mark Oliphant; Sandra Rubin; Saskia van Groningen; Soledad Labarca; Sylvia Correa; Tatjana Misulic; Wanda RestoSubject: Update2
 
Ovation Development
 
M E M O R A N D U M
 
September 7, 2005
 
 
To: Friends of the Brexton Hotel
From: Lou Steadwell
Subject: Brexton project update
I spoke with the owner about our request for a study period. He said that he would consider a 30 day period with a 2-week kick-out. He said he would think about it and get back to me. I think that we can complete our due diligence in 30 days if we have to. We're not there yet, but we may be a bit closer.
One of our prospective investors, Luana Lewis found this article in the archives: http://www.citypaper.com/news/story.asp?id=4999
I have found a few other prospect projects in Baltimore, but we'll wait to see where this one goes.
 
 
 
Louis Steadwell
magusdc@ix.netcom.com
Why Wait? Move to EarthLink.
 

Ovation Development

Ovation Development


M E M O R A N D U M

September 6, 2005


To: Friends of the Brexton Hotel

From: Lou Steadwell

Subject: Brexton project update

I dropped the keys off to the owner today with a note expressing our interest in purchasing the property (not a contract) provided he ratify our offer with a study period to allow time for due diligence. I haven’t heard back on this yet.

At this moment, we are in a holding pattern regarding the acceptability of our terms for an offer. I will call the owner tomorrow to hear what he has to say about our proposal. If he is willing to accept our terms, I have asked Vincent Eades, a mortgage banker with First Home Mortgage, to meet with us to talk about the details of financing the project and to answer our questions. At that time we should have all the information we need to decide to offer or to pass on the Brexton project.

In the meantime, I am looking at other prospects in Baltimore that we may want to consider if this project does not work out.

Brexton Condominium

The Brexton Condominium

The Brexton, a triangle-shaped, turret-topped residence hotel built in 1880, is a landmark in the Mount Vernon neighorhood of Baltimore in the 800 block of Park Avenue. Designed by prominent architect Charles Cassell, the hotel was the one-time lodging for Wallis Warfield Simpson, Duchess of Windsor when she lived in Baltimore. The Hotel went through many incarnations as low-rent apartments and artist digs in the 1970’s and 80’s until it closed in 1987.

The Brexton, 15,000 square feet and 6 storeys above a full-height basement, looks good as a prospect for development. Located 1 block from the MARC train and 3 blocks from the Meyerhoff Symphony Hall and a short, walk or bus ride to Amtrak Pennsylvania Station and rail transportation to the Washington area.