Verdigris Development

* Land Acquisition / Green Development / Disposition

* LEED® Commercial Property Development

* Residential & Commercial Retrofit / Adaptive Re-Use

Verdigris Group's Development Perspective:

We know that each of our projects serves as a leading example of what conscientious real estate development can achieve. Our projects bring forth a triple bottom-line asset to the community - generating aesthetic resonance, economic value and positive social impact; thus serving as a catalyst for future sustainable development as well as further depth of thought in sustainability as it relates to our built environment.

As a proud, veteran member of the US Green Building Council, Verdigris Group is an active participant in the advancement of the green building movement by requiring that ALL of our development projects achieve LEED Certification - the gold standard for green building set forth through the USGBC's LEED rating system.

Verdigris Group's Development Strategy:

A mission-critical element of our operating strategy is to empower our stakeholders with the opportunity to earn highly competitive returns on capital investment from the sale and/or management and operation of high-performance, highly-efficient, strategically differentiated, state-of-the-science residential and commercial LEED Certified properties.

It is the responsibility of Verdigris Group's development division to maintain complete control of each project for the entire duration of development, including identifying and securing land acquisitions, completing the entitlement and infrastructure improvement processes, obtaining financing, managing architectural and interior design, coordinating construction activities, managing the LEED Certification process and implementing sales and marketing strategies.

Verdigris Group's all-encompassing, vertically-integrated development process not only encourages greater synergy and efficiency, but also creates additional value which the Company believes hedges against downward market movements and further supports our sustainable business philosophy.

Non-Traditional Real Estate Assets = Exceptional Value.

Highly diversified property-type (LEED Certified) leads to reduced risk & market exposure

Enhanced Asset Value driven by quality, reduced operating expenses, greater marketability

Strategically differentiated, increasing ability to weather property market fluctuations

Benefit of varied construction types while all seeking LEED Certification

Opportunity for investment in multiple regional markets (Mid-West, Mountain Regions)

Superior Return on Investment compared with traditional construction projects

Optimal convergence of vertically integrated development and brokerage divisions

Additionally, Verdigris Group's Principals invest personally in each of our real estate development projects. In doing so, we ensure that members of our professional team have a personal financial commitment to each investment we undertake, further aligning our interests with those of our investors and our operating partners.

For more information about our Verdigris Group Development Strategy, please contact us by phone or email.

Green Building By the Numbers

U.S. Housing Market

• Residential investment – including new home construction, residential remodeling, production of manufactured homes, and brokers’ fees – represented 4.6% of the $13.8 trillion U.S. GDP in 2007. When combined with spending on other housing services, including rent, the housing market made up 15.2% of the GDP, according to the National Association of Home Builders.

• According to the 2007 McGraw-Hill SmartMarket Report on Attitudes & Preferences for Remodeling and Buying Green Homes, the value of the “true” green home market was $2 billion in 2005. Given forecasts of the housing market and other trends, green homes are expected to be worth $60 billion by 2010, making up 10% of the overall housing market.

• More than 1.8 million residential buildings are built annually, according to the 2006 Annual Housing Starts report from the U.S. Census Bureau.

• Renovation is one of the largest construction sectors. The industry was worth $275 billion in 2005, according to the U.S. Department of Commerce.

Energy Consumption

• Buildings account for nearly 40% of total U.S. energy consumption. Source: American Council for an Energy-Efficient Economy

• Households use about one-fifth of the total energy consumed in the United States each year; the residential sector is responsible for 21% of the nation’s carbon dioxide emissions, according to the U.S. Department of Energy’s Energy Information Administration.

• Based on their Home Energy Rating System (HERS) scores, the average home certified under LEED for Homes since its launch in February 2008 is predicted to use an estimated 30-60% less energy than a comparable home built to International Energy Conservation Code. Based on the average HERS ratings for each level of LEED certification, these homes could potentially see energy reductions of:

Certified: Up to 30%.

Silver: Approximately 30%.

Gold: Approximately 48%.

Platinum: 50-60%.

• The average household spends some $1,500 each year on energy bills. By choosing ENERGY STAR-rated products, consumers can cut this by 30%, saving about $400 each year. Source: ENERGY STAR.

• Energy cost increases are the No.1 trigger cited by home builders when considering building green homes, according to the 2006 McGraw-Hill Construction SmartMarket Residential Report.

• Electronic devices in standby mode account for 10% of home energy use – up from 2% in 1980, according to the U.S. Environmental Protection Agency. That includes most devices with a remote control, such as televisions, that are in “power off” mode but are still plugged in.

Water Consumption

• Building occupants use 12% of the total water consumed in the United States, according to a 2008 study by the Commission for Environmental Cooperation. According to the National Energy Technology Laboratory at the U.S. Department of Energy, roughly 7% of U.S. water use is in the residential sector.

Waste

• Building-related construction and demolition debris totals approximately 136 million tons per year, 43% of which is generated from residential sources, according to estimates by the U.S. Environmental Protection Agency.

Health

• 64 million homes, 83 percent of the privately owned housing units built before 1980, have lead-based paint somewhere in the building. Twelve million of these homes are occupied by families with children younger than 7, according to the U.S. Environmental Protection Agency’s 1995 National Survey of Lead-Based Paint in Housing.

• In a 2004 study by Perth, Australia’s, Curtin University of Technology, children who had been exposed to volatile organic compounds of more than 60 micrograms per cubic meter as toddlers were four times more likely to have asthma than those exposed to lower levels of VOCs. The U.S. Environmental Protection Agency has identify more than 900 VOCs, many of which are found in some common household products, including paints, adhesives and cleaning products.

A Few More Compelling Statistics

The US Green Building Council has identified some very compelling statistics that we believe show an ever-increasing market for green property ownership, particularly LEED Certified residential and commercial properties. Several interesting and important statistics include:

The latest study by McGraw-Hill Construction, released Nov. 18, 2009 states, "The value of green building construction starts has grown five-fold, rising from $10 billion to an estimated range of $36 billion to $49 billion over the 3 year period of 2005 to 2008." That report continued on, "that value could triple by 2013 and attain an upper range of $96 billion to $140 billion."

The 2009 Green Building Impact Report states that green building as a part of the overall construction market is growing exponentially - "The 295 million square feet of LEED-certified floor space existing today in the U.S. could balloon to 5.6 billion square feet by 2015, and to 11.1 billion by 2020.

Opportunities are boundless for Green Building as a significant contributing factor to the positive economic growth of our U.S. Economy - "The construction market accounts for 14.2% of the $10 trillion U.S. GDP." (Source: 2006 DOE Buildings Energy Data Book)

Between 40% and 50% of the homes built in 2010 are expected to be green.

(Source: National Association of Home Builders, March 2007)

The green building products market is projected to be worth $30-$40 billion annually by 2010. (Source: Green Building Alliance)

Every business day, $464 million worth of construction registers with LEED.

(Source: USGBC, Green Building by the Numbers Report, July 2008)

The value of annual green building construction is projected to increase to $60 billion by 2010

(Source: McGraw-Hill Construction Analytics, SmartMarket Trends Report 2009)

These staggering statistics and forecasts of the near-term future prove investment in green-built and LEED Certified projects will continue at an unprecedented pace, enabling investors to earn the benefits of environmentally sustainable and socially responsible property development opportunities.

We look forward to discussing Verdigris Development opportunities with you!