NSV Development & Armada Hoffler Response to Request for Qualifications June 15, 2018

TableofContents

SECTION1:LETTEROFINTEREST 3

SECTION2:DEVELOPERTEAM 4

A. TEAMOVERVIEW 4B. PARTNEROVERVIEW 4C. BIOGRAPHIES 8D. MINORITY/WOMEN/VETERANENTERPRISE 10

SECTION3:EXPERIENCE 11

E. PARTNERSHIPEXPERIENCE 11F. CASESTUDIES 12ONECITYCENTER,DURHAM,N.C. 12VIRGINIABEACHTOWNCENTERMASTERDEVELOPMENT,VIRGINIABEACH,V.A. 13HAYSTREETREDEVELOPMENT,FAYETTEVILLE,NC 14HOUSEOFSWEDEN,WASHINGTON,D.C. 15SELECTEDPROJECTSINCLUDINGLIBRARIESANDMUSEUMS 16HAMPTONUNIVERSITYMUSEUM,HAMPTON,VA 16HAMPTONUNIVERSITYLIBRARY,HAMPTON,VA 16

SECTION4:FINANCIALCAPABILITY 17

SECTION5: PRELIMINARYDEVELOPMENTCONCEPT 18

SECTION6:DISCLOSURES 19

Section1:LetterofInterestMr. Chris Coudriet County Manager New Hanover County 230 Government Center Drive, Suite 195 Wilmington, NC 28403 Dear Mr. Coudriet: NSV Development and Armada Hoffler Properties are pleased to submit this response to your Request for Qualifications for a development partner for Project Grace. Within the following response, we provide detailed information as to our development team’s local and national experience, our background, qualifications, and strong financial capacity to execute the proposed development plan. Additionally, we bring a clear understanding of North Carolina local government regulations and abilities.

Our team possesses the capability and experience to realize the highest and best version of Project Grace. • We have significant experience in creating transformative projects that range from creating landmark

buildings to dynamic city center destinations. • NSV Development has more than 30 years of combined experience consulting for North Carolina local

governments, including the City of Wilmington, Wake County, Durham County, Cities of Raleigh, Kannapolis, Morganton and Fayetteville, among others.

• Collectively, we have successfully developed and constructed 26 public-private partnership projects, with extensive on-going developments in Durham, NC, Fayetteville, NC, and Virginia Beach, VA.

• Armada Hoffler brings nearly four decades of experience coupled with the financial strength of a thriving, publicly traded REIT; this also means that the capital is raised internally for its projects. In addition, our cost of capital is lower than a traditional developer – savings that get passed along to our partner organizations.

• Our team also has the in-house capability of providing construction services through the Armada Hoffler Construction Company, which allows us to control costs and schedule, better manage project risks and charge lower overall (general contractor/developer) fees than our competitors.

In addition to the project itself, we are excited by the opportunity to partner with New Hanover County. We believe we are the best partners to maximize revenue to the County through our deep experience with public private partnerships and the capital advantages of Armada Hoffler’s REIT structure. The project site provides the ability to create a modern library and Cape Fear Museum in conjunction with significant private development that will help decrease costs to the County. We believe this project presents an opportunity to create a national model for good governance and a beacon for government innovation. Sincerely, Michael Lemanski NSV Development michael@newsouthventures.com

Section2:DeveloperTeama. TeamOverview

NSV Development (NSV) and Armada Hoffler have successfully partnered on two projects in North Carolina totaling $110m and are currently working together on two additional projects anticipated to total another $150 million. Both firms specialize in placemaking: creating thriving, walkable, urban environments that add vibrancy and build off the character of an existing neighborhood. NSV brings their architecture partner of nearly 15 years as an integral component of the team. Built Form has received international recognition for design, yet maintains a long-standing connection with North Carolina having designed public private partnership projects in Durham, Fayetteville, Morrisville and Kannapolis.

b. PartnerOverview Local Partner: NSV Development NSV will lead the pre-development phase of the project. CEO Michael Lemanski has extraordinary experience working with local governments in North Carolina as he consulted directly with them for more than five years as the director of an economic development program at the UNC School of Government. This work including completing the predevelopment work on Wilmington’s Water Street Parking Deck project. NSV will work intimately with the County to further hone their ideas into a project that meets market demand, site constraints, financial hurdles and, most importantly, achieves the vision for Project Grace. NSV is the successor company to Greenfire Real Estate Holdings (Greenfire). Like Greenfire, NSV is managed by Mr. Lemanski and is focused on creating unique places in walkable, urban environments.

NSV projects create a distinctive sense of place by combining broad master development experience with deep public private partnerships knowledge. NSV prides itself on its customized approach to development. We spend the necessary time working with our partners and their stakeholders to make sense of the myriad of (sometimes competing) priorities and goals driving a project, and execute on a shared vision that fulfills those priorities. As a company, NSV has experiencing developing a wide variety of product types—residential, office, retail, multifamily and hospitality—both as lead developer and as part of a development team. In addition, our team has deep experience planning and advising on projects developed by others. We have represented public entities in negotiating public private partnerships and have a distinctive appreciation for what drives local government. Our experience with local government needs and challenges contributes to our unique advantage in making successful projects. The following are several notable examples of NSV’s willingness to work and engage in public relationships:

• Hay Street Master Development, Fayetteville, NC – Developed more than 70 residential units, 120 room Hyatt Place Hotel, 500 spaces of structured parking, 90,000 square feet of office space, and 20,000 of retail space.

• Mutual Plaza, Durham NC – Redeveloped a 16-story office building into Class A office space serving a mixture of institutional and creative class tenants. Currently developing a structured parking deck, hotel, residential and retail project on the same site.

• 21c Durham, NC – Redeveloped the historic Hill Building into modern art museum and 125-room boutique hotel.

Sample Projects, NSV Development

PROJECT LOCATION SIZE $Value in Millions

Durham City Center Durham, NC 1,000,000 $300

Hay Street Ballpark District Fayetteville, NC 300,000 $70

National Partner: Armada Hoffler The Armada Hoffler Construction Company was founded by Daniel A. Hoffler in 1982 and has consistently been ranked among the “Top 400 General Contractors” nationwide by Engineering News Record as well as among the “Top 50 Retail Contractors” by Shopping Center World. Armada Hoffler proudly acknowledges that the majority of their work consists of building multiple, negotiated projects for their clients. Repeat business, we believe, speaks for itself.

As a company, they offer general contracting, construction management, and a broad spectrum of preconstruction services designed to effectively reduce costs and streamline the construction process.

Their capabilities include site evaluation, conceptual estimating, comprehensive scheduling, constructability analysis and value engineering. Additionally, their staff possesses a wide range of experience and are intimately familiar with every facet of construction. Armada Hoffler manages challenges associated with budgets, schedules and safety through hard work, innovative management techniques, and stringent cost and scheduling controls.

Armada Hoffler is committed to guiding their clients through the complex decision-making process of sustainable building construction for each project. Through experience, best practices, and leadership they can deliver the most innovative and environmentally friendly structures that their clients desire. It is through the sustainable practices they employ today that they hope to leave a positive environmental impact on the communities in which they work. Armada Hoffler is focused on minimizing their impact on the environment and have constructed millions of square feet of LEED certified space.

Armada Hoffler’s extensive management experience, full-service capabilities and financial strength, make them one of the premier general contractors in the Mid-Atlantic United States.

Among Armada Hoffler’s unique development capabilities are public-private partnerships with municipalities, states, public and private universities,

the federal government, and other public entities. By completing 24 successful public-private partnerships, Armada Hoffler has shown true staying power and flexibility. The cornerstone of Armada Hoffler’s public-private portfolio is the $600+ million Town Center of Virginia Beach. This extremely successful public-private partnership currently contains over 800 residential units, two hotels, over 750,000 square feet of office space, over 250,000 square feet of retail space, a regional performing arts theater, and various public gathering areas. Over the last 17 years, Armada Hoffler worked in a strategic alliance with the City of Virginia Beach to fund the public infrastructure and parking needed to support this large private investment that has generated millions of dollars in tax revenue for the City. The following are several more notable specific examples of Armada Hoffler’s willingness to work and engage in public relationships:

• Developed and Constructed over 2 million square feet of conference and hospitality space in Baltimore, MD

• Developed and Constructed a 527,000 square foot shipbuilding apprentice school complex in Newport News, VA

• Developed and Constructed a 200,000 square foot, mixed-use government center and law office in Richmond, VA

• Developed and Constructed over 230,000 square feet of conference and hospitality space in Newport News, VA

• Developed and Constructed over 520,000 square feet of conference and hospitality space in Washington, DC

Sample Projects, Armada Hoffler

PROJECT LOCATION SIZE (sq. ft.) $ Value in Millions

Town Center of Virginia Beach (6 Phases/P3 Agreements) Virginia Beach, VA 3,857,50o $600

Four Seasons Hotel & Residences/ Legg Mason World HQ Baltimore, MD 1,000,000 $440

Mandarin Oriental Hotel Washington, D.C. 520,000 $165

Marriott Waterfront Hotel & Conference Center Baltimore, MD 1,100,000 $120

Newport News Apprentice School Newport News, VA 527,000 $70

Williams Mullen Center Richmond, VA 200,000 $68

Norfolk Waterside Marriott Hotel & Conference Center Norfolk, VA 390,000 $65

Newport News Marriott Hotel & Conference Center Newport News, VA 220,050 $62

Renaissance Portsmouth Hotel & Conference Center Portsmouth, VA 160,000 $48

House of Sweden Washington, D.C. 196,000 $29

Norfolk Public Health Center Norfolk, VA 196,000 $29

Emory Conference Center Hotel Atlanta, GA 180,000 $25

c. Biographies

Michael Lemanski, CEO, NSV Development

Mr. Lemanski is NSV Development’s chief executive officer and chief investment officer and will oversee the project. As of June 15, 2018 investment entities led by Mr. Lemanski have repositioned more than 4o distressed properties with an aggregate fair market value in excess of $400 million including over 1 million square feet including a mix of residential, office, retail and hospitality projects.

Prior to establishing NSV, Mr. Lemanski was the Founder and Managing Partner of Greenfire Real Estate Holdings (“Greenfire”), a real estate investment, asset management and development firm. Greenfire managed a

private investment pool focused exclusively on investing in real estate in downtown Durham and served as the lead master developer for the transformation of downtown Durham’s city center, for which Greenfire received many community awards. Greenfire developed one of the first large scale new construction multifamily projects in downtown Durham, the 21c Museum and Hotel, partnered in the creation of the first new high-rise building in downtown Durham in 30 years, redeveloped one of the most dangerous city center blocks in the Southeast, and led the creation of a vibrant Main Street level retail district.

Between 2011 and 2017, Mr. Lemanski also served as the Founding Director of the Development Finance Initiative, a real estate consulting entity associated with the UNC School of Government. Through this work, Mr. Lemanski applied the strategies and business models he utilized through Greenfire and fine-tuned the investment analysis protocol to apply it beyond the Durham market. Mr. Lemanski has advised on the development planning for more than 100 projects in more than 70 different communities across North Carolina.

Over his career, Mr. Lemanski has taught and lectured extensively on real estate development, urban revitalization and real estate finance. Select instructional venues include the University of North Carolina’s School of Government, the Kenan-Flagler Business School at the University of North Carolina, the Urban Land Institute sessions, and Duke University. Mr. Lemanski earned his MBA from the University of North Carolina at Chapel Hill and BS in Chemical Engineering and a MDS degree in Environmental Science from North Carolina State University.

Andrew Holton, Managing Principal, NSV Development

Mr. Holton is the Managing Principal of NSV. In this capacity he manages the day-to-day operations, including the work of NSV project managers and coordination with NSV partners.

Prior to working with NSV, Mr. Holton spent nearly seven years working for former N.C. State Treasurer Janet Cowell, the sole trustee of the North Carolina Retirement Systems. During his time working for the state, Mr. Holton served as the lead attorney for the Local Government Commission, Deputy Chief of Staff, Audit Director and General Counsel. In his various roles, Mr. Holton served as a regular advisor for state level public private partnerships. In

addition, he was the lead for the relocation of the Treasurer’s office from downtown Raleigh to the Atlantic Avenue campus, including the management of the retrofit and the coordination of the move.

Throughout his career, Mr. Holton has served as an expert and consultant on economic development, demographic, finance and legal issues for organizations such as the University of North Carolina, the Triangle Community Foundation, the Z. Smith Reynolds Foundation and Wake County.

Mr. Holton serves on the boards of Education North Carolina, the North Carolina Center for Public Policy Research and the Caris Foundation. He holds a JD cum laude from the University of Wisconsin Law School and at BA from the University of North Carolina at Chapel Hill.

Christy Raulli, Project Manager, NSV Development

Ms. Raulli is a Project Manager for NSV Development, currently overseeing two development projects totaling $87 million. She is the former Associate Director of the Development Finance Initiative, a real estate consulting entity associated with the UNC School of Government, where she lead a team of real estate, community, and economic development professionals and graduate students in an entrepreneurial and rapidly-growing program as well as advised local governments on economic development projects with a particular focus on public private partnerships.

Ms. Raulli has more than 15 years of community and economic development and project management experience, including having co-founded an affordable housing organization and having managed a NC Department of Commerce program that leveraged federal funding to attract private investment in small businesses across NC.

She graduated with honors from SUNY Fredonia, holds a Master’s Degree in City and Regional Planning from the University of North Carolina, is a licensed real estate broker, and is the former vice-chair of the Town of Hillsborough's Planning Board.

Chris Odle, Executive Vice President, Armada Hoffler Properties Mr. Odle is Armada Hoffler’s Executive Vice President of Development. He joined Armada Hoffler in 1995 as a Senior Pre-Construction Manager. With over 25 years of experience in planning, estimating and construction, his well-rounded resume allows him the ability to tackle problems from all angles. In his present capacity, Chris oversees activities that relate to company and entity ownership of development projects and supervises property acquisitions. He works closely with management to ensure that project development is economically feasible, financially viable and completed within the stated objectives. Chris graduated from the University of Florida with a Bachelor of Science degree in Building Construction. Chris is currently a member of the James City County Economic Development

Authority Board of Directors as well as the First Night Williamsburg Board of Directors. Bob Bistry, Partner, Built Form

Mr. Bistry is a Principal at Built Form Architecture in Chicago and has worked at some of the world’s largest firms. He has extensive experience working on a variety of projects domestically and internationally including high-rise office, hospitality, residential towers, large mixed-use developments and public and institutional facilities.

d. Minority/Women/VeteranEnterpriseThe development team as successfully exhibited “good faith” LSDBE & MBE business participation efforts in most projects we have constructed. We have been a leader in assuring minority, small and women-owned business participation in our industry for many years. At the beginning of each project, we set a goal of minority participation and make every attempt to satisfy our commitment. In addition, each partner is an equal opportunity and affirmative action employer. We have never been involved in any action or legal proceeding involving matters related to race, color, gender, nationality, religion, age or disability.

NSV and Armada Hofflter look at several criteria before selecting the appropriate subcontractors. We review their current work experience, work load, available capacity, the schedule and scope of work required, as well as price competitiveness. Our team understands the special challenges a minority subcontractor may have in acquiring new contracts. As such, we are willing to make concessions on relaxing our payment terms and at times we may buy the materials for them, asking them to provide labor only for their contract. These compromises are especially helpful to a subcontractor who may have limited capital to buy large quantities of materials. In short, we firmly believe in the minority subcontractor community and are eager to grant them every opportunity to succeed and prosper.

Specifically, team member Armada Hoffler is proud to have been among the first companies in the country to participate in the federal government’s Mentor/Protégé Program administered by the Small

Business Association. This arrangement allows minority contractors to borrow expertise, training and bonding capacity from larger firms, as needed. It further yields opportunity for the minority firm to compete, win and perform government contracts, as well as participate in private sector projects that would otherwise be unattainable. Armada Hoffler’s first endeavor in the Mentor/Protégé Program began in 1988 with the association with, what was then, the newly formed Section 8(a) certified minority firm, Curtex Construction. Our three-year alliance with Curtex provided the financial and management assistance which stimulated the opportunity for growth within their organization. During this tenure, Curtex successfully performed over $11 million worth of construction, and subsequently “graduated” from under our wings. In 1991, Armada Hoffler undertook the support of another newly formed construction group – S.W. Day Development Corporation – which is a licensed Class A, minority-owned and operated, general construction company. With substantial retained earnings and a formidable track record of successful projects, S.W. Day became fully independent of Armada Hoffler in 1996.

In sum, our team will solicit minority-owned, women-owned, and small businesses throughout the subcontractor and supplier community for participation in the performance of the project. An integral goal for each of our projects is committing to overall quality and excellence as well as providing opportunities for local, small, disadvantaged business enterprises.

Section3:Experiencee. PartnershipExperience

Our team has unique experience working with client groups that consist of multiple stakeholders and stakeholder groups, as is the case for local governments. We pride ourselves on being able to manage diverse client interests and to help establish a program that works for all parties involved.

One of our team’s core competencies is our ability to build partnerships that can ensure project success and maximize the economics for the Client. Specifically, our partners have advised or led in the creation of more than 150 different public private partnerships. In creating partnerships, we recognize that a one-size-fits-all approach does not work in most situations and focus on creating customized partnerships that address the distinctive needs of participating stakeholders. A project like Project Grace has the potential to attract both public and private partners.

Our team has a unique understanding of local governments. Collectively, members of our team have spent more than 30 years working for and advising local governments. We have a unique perspective on the local government ecosystem—a perspective that can support our Clients in finding other occupants and operators for the projects who can enhance the goals from the project vision.

On the private side, we understand the types of partners that can execute a customized development program and can help maximize the Clients’ economic interests. If selected, our team would bring a wide network of private-sector relationships to the project and would also work with the Clients to identify and establish other potential private funding partners.

f. CaseStudies

OneCityCenter,Durham,N.C. Through NSV’s predecessor company, Greenfire, Michael Lemanski acquired four parcels making up half of a city block in downtown Durham and combined them into a single redevelopment site. This project was the centerpiece of Greenfire’s redevelopment vision. To create the opportunity for the new Durham landmark on what was once the most distressed block of downtown, Greenfire had to redeveloped the surrounding blocks and attract both public and private partners including the City of Durham, Durham County, Duke University, Armada Hoffler and Austin Lawrence Partners. Each partner was able to focus on their area of expertise and to maximize the strong market opportunity Greenfire had created in Durham’s city center. The project is currently under construction and expected to be completed in the Fall of 2018. The $88 million project will be a one- of-a-kind feature in the Durham skyline and represents the exciting result of a detailed pre-development process. It is the tallest property in Durham and the first high-rise built in downtown in more than 25 years.

One City Center at a Glance Address 110 Corcoran Street, Durham, NC 27701 Building Area 430,000 sq. ft. Stories 27 Year Built 2018 Development Program • 22,828 sq. ft of street level retail space

• 130,000 sq. ft. of Class A office space • 21 floors of residential space: 30 condos, 109

apartments Project Cost $88 million

VirginiaBeachTownCenterMasterDevelopment,VirginiaBeach,V.A.

The Town Center of Virginia Beach is an on-going, $600 million public-private partnership between the City of Virginia Beach and Armada Hoffler Properties. The multi-phase, mixed-use development, which had its first groundbreaking in the summer of 2000, has become the city’s emerging downtown core. Town Center spans 17 pedestrian-friendly blocks over 25 acres and features a vibrant mix of upscale retail, Class A office space, luxury residential, dining options and entertainment venues.

The sixth phase of development is currently underway and, upon completion in 2018, will add to Town Center 38,000 square feet of retail space, more than 130 luxury apartment homes, and a 17,000 square foot performing arts theater. The new development will also feature an open-air public plaza and a pedestrian bridge connecting to the adjacent parking garage.

The Armada Hoffler Tower was the first phase of development in Town Center. It is a 23-story office tower, which also features an integrated nine-level parking structure and another mid-level office building, home to Hampton University’s College of Virginia Beach. In addition to 324,000 square feet of office space, the property also includes 38,500 square feet of street-level retail with nationally-recognized names such as P.F. Chang’s China Bistro, California Pizza Kitchen, lululemon athletica, Paper Source, free people and more.

The 4525 Main Street project was the fifth phase of the public-private partnership between Armada Hoffler Properties and the City of Virginia Beach. The mixed-use development encompasses a 15-story office tower with 238,000 square feet of Class A space, as well as 286 luxury apartment homes, approximately 950 parking spaces in a structured garage, and 23,000 square feet of ground-level retail which is 100% leased to Anthropologie, West Elm and Tupelo Honey Café.

4525 Main Street, currently the newest office tower in the Town Center of Virginia Beach, was recently awarded LEED Silver certification, while the Clark Nexsen office space within the tower is LEED Gold certified per the standards established by the U.S. Green Building Council (USGBC).

HayStreetRedevelopment,Fayetteville,NCThe Hay Street Master Development is a mixed-use development representing over $65M of private development surrounding the $40M City-financed minor league baseball stadium and public plaza in downtown Fayetteville, NC. The Houston Astros Class A Advanced team will begin playing in the new stadium beginning in 2019. The Master Development Team, PCH Development Co (PCH), has executed a master development agreement for a public private partnership with the City of Fayetteville. The planned private development (shown in the concept below) includes:

• Redevelopment of the historic Prince Charles into 62 apartments above retail (under construction)

• Purchase of the 45,000 SF Festival Park Plaza (FPP) office building to the north of the stadium • $15M parking garage and $2M public plaza (designed and built by PCH, financed by the City) • Development of a 120-room Hyatt Place Hotel above the garage (estimated Q2 2020 delivery) • 90,000 SF Stadium View Office Tower, also above the garage (estimated Q2 2020 delivery)

PCH has worked to maximize the development potential of the Hotel and Stadium View Office Tower in relation to the stadium, Hay Street commercial corridor and public plaza. Both buildings will share unobstructed views into the stadium.

HouseofSweden,Washington,D.C.

House of Sweden in Washington D.C. houses the Embassy of Sweden, the Embassy of Iceland, 19 office suites and an Event Center that features conference and exhibition halls. Situated on the Potomac River, House of Sweden has become the perfect place to meet and work in the heart of Georgetown.

The Embassy of Sweden in Washington, D.C. is one of the largest Swedish missions in the world. It is the official communications link between the Swedish and American governments and the flagship of Swedish public diplomacy in the United States. The building is owned and managed by the Kingdom of Sweden through the National Property Board Sweden.

With its modern design, House of Sweden is a stunning example of contemporary architecture and adds a distinctively Scandinavian touch to Georgetown Harbor and the waterfront. House of Sweden has been awarded Sweden’s most prestigious architecture award; the Kasper Salin Prize for best building. The award is a testament to the work and creativity that has gone into creating this unique building. Designed to rest like a shimmering jewel in the surrounding parkland, the blonde wood, stone, and glass structure is suffused with light, floating at night like an ethereal vision above its sparkling reflection in the Potomac River. The building is light and airy, with large glass segments. Light is a key element, both outside and in. All around the body of the building is a belt of light, backlit wood, which after dark gives the sense that the building is floating. The House of Sweden stands on white pillars and is suffused with Nordic light. The materials are blonde wood, glass and stone, often in layers.

SelectedProjectsIncludingLibrariesandMuseums

HamptonUniversityMuseum,Hampton,VA

Initially constructed as a library around 1909, this third renovation of the prestigious museum combined the original library and previous renovations into one cohesive structure. The result was a 34,293 SF modern, yet historically sensitive building home to an extensive collection of African-American and Indian-American artifacts and artwork.

HamptonUniversityLibrary,Hampton,VA

This 125,000 SF, five-story multi-purpose center includes a library, media center, conference rooms, and class- rooms. Besides housing an extensive collection of books and periodicals, it serves as a partial depository of U.S. government documents.

Section4:FinancialCapabilityAs the national development partner, Armada Hoffler Properties brings very strong financial capabilities to this project. As evidenced in their public filings, Armada Hoffler has access to a substantial revolving line of credit and are currently listed on the New York Stock Exchange (NYSE:AHH) as a nearly $1 billion market cap Real Estate Investment Trust (REIT). Their access to capital through the stock market, along with their long-standing relationships with many traditional banks, allow for our team to capitalize and finance project developments much quicker than most traditional developers.

Equity Depth and Sources

Armada Hoffler Properties has significant relationships with many equity providers and sources, and as a publicly-traded company, are required to make periodic public disclosure filings with the Securities and Exchange Commission (SEC). All of the Company’s publicly available information since its Initial Public Offering in May 2013 is available through the Investor Relations portal of the website (www.ArmadaHoffler. com), as well as with the SEC.

The Company’s publicly available documents include information regarding our balance sheet at the end of each fiscal quarter and year, including all outstanding loans and corporate credit facilities. As represented by the various asset-specific loans, as well as the breadth of local and national lenders participating on the credit facility, Armada Hoffler Properties works with many different resources and levels of financing to accomplish our various projects, just as we have done throughout the firm’s four-decade history.

Armada Hoffler manages its credit line and capital on an ongoing basis as they forecast potential projects and acquisitions and how they will be funded. As a publicly-traded REIT, Armada Hoffler Properties has the ability to raise equity on the capital markets as dictated by project and corporate metrics. Additionally, they maintain strong banking relationships with several large lenders such as Bank of America Merrill Lynch, Regions Bank, M&T Bank, Wells Fargo, and others. They will be able to provide competitive financing on all aspects of this development through these relationships.

Audited Financial Statements

Financial Statements including 2018 Q1 results and the 2017 Annual Report are publicly available on Armada Hoffler’s website (www.ArmadaHoffler.com) under Investor Relations or through the Securities and Exchange Commission’s website (www.sec.gov).

Section5: PreliminaryDevelopmentConcept

Our preliminary development concept meets the County’s interests in maximizing the site with a combination of public and private uses, while increasing connectivity and vibrancy.

Working within the height limit and other zoning constraints of the City of Wilmington, we propose a 2-phase project with a modern County library and Cape Fear Museum to be constructed in phase one along the Grace Street side of the project. This will allow the library to continue operations in its existing location through construction and require only one move, instead of requiring a move to temporary facilities during construction. The Library and Museum will share lobby space on the corner of Grace and 3rd Streets, with programmable green space at the entrance and street level retail along Grace Street. The Library and Museum spaces occupy the second floor and a portion of the third floor of the project. Approximately 225 residential

units will be constructed over the Museum and Library. Our parking calculations indicate that there is sufficient space in the County deck to park these uses in the immediate term.

Phase 2 of the project will replace the existing Library with a 100-key hotel. Currently, the hotel lobby is at grade, and an option exists to include additional street-level retail should the market support it at time of construction. Importantly, phase 2 of the project also proposed demolishing a small number of parking spaces at grade along 3rd Street to accommodate the street level retail needed to activate this critical corridor of the City.

Section6:DisclosuresTo the best of our knowledge, there exist no potential conflicts of interest with respect or relevancy to this project in any manner.

Neither Armada Hoffler Properties or NSV Development as the developer, nor any officer, director, or owner thereof, has had judgments entered against him or her within the last 10 years for the breach of contracts of governmental or nongovernmental construction or development.

Neither Armada Hoffler Properties or NSV Development has ever been in substantial noncompliance with the terms and conditions of prior construction contracts with a public body without good cause.

We proudly report that no officer, director, owner, project manager, procurement manager, or chief financial official herein has been convicted within the past 10 years of a crime related to financial fraud or to governmental or nongovernmental construction contracting.

We further proudly report that no officer, director, or owner is currently debarred pursuant to an established debarment procedure from bidding or contracting by any public body, agency of another state, or agency of the federal government.