136 E MARKET ST Indianapolis IN 46204-3204

Everwood Hospitality Partners (Everwood or EHP) is seeking $11.3M from LP equity partners for the investment in the Aloft Indianapolis Downtown discussed herein (the “Project”). An affiliate of Everwood will contribute an additional $1.26MM as GP equity.

The investment offering will allow investors to participate in the cash flows of a brand new redeveloped Aloft by Marriott that was originally a historic office building in the heart of downtown Indianapolis. The Project is in an Opportunity Zone allowing investors to take advantage of unique federal capital gains tax benefits.

As the developer of the Project, Everwood is also offering investment partners the rare opportunity to invest at the development basis of the nearly complete project. Proceeds from the investment will be used to recapitalize the hotel near construction completion at a competitive development basis thus investors will enter a development deal with significantly mitigated development risk.

Investor Returns

20.1% IRR

12% Cash on Cash

2.16x Equity Multiple

Development Basis With Significantly Mitigated Risk

The investor will have the opportunity to enter at the development basis shortly before completion of the multi-year development phase. Everwood thereby significantly mitigated development risk for the investor.

Brand New Marriot-Branded Asset At Desirable Basis

Brand new re-developed Aloft Indianapolis is recapitalized at the projected all-in development basis of $35.25M or $275.4k per key. Marriot is the most desirable chain in the industry with 120 million Marriot Bonvoy members. Marriott has 192 Aloft locations around the world and more than 117 properties in the pipeline.

Indianapolis Market

Indianapolis is one of the fastest growing real estate markets in the United States. CBRE projects Indianapolis RevPAR to be among the quickest to recover post Covid-19 pandemic. Indianapolis is also ranked in the top 30 markets by PWC and top 20 markets by CrowdStreet in 2021. The cost of living is relatively low compared to similarly sized cities/ Five-year projected population growth outpaces the greater United States and is like other fast growth cities such as Nashville and Tampa. As the state capital, Indianapolis provides a steady base of jobs and is home to numerous companies.

Opportunity Zone Tax Benefits

Federal Opportunity Zones were created as part of the 2017 Tax Cuts and Jobs Act to promote private investment in certain communities. Opportunity Zones promote investment by eliminating capital gains evenly over a ten-year period. The Indianapolis Aloft is in the heart of the Indianapolis CBD Opportunity Zone. Investors of the Project will receive capital gains tax benefits by entering the Everwood investment structure.

Desirable A+ Downtown Location

Located in the heart of Indianapolis downtown business, entertainment, and sports district, the location will provide leisure, business, and benefit from future convention center demand. Notable points of interest that are minutes from the hotel are: Bankers Life Fieldhouse-Indiana Pacers stadium (3 blocks), Lucas Oil Stadium-Indiana Colts (8 blocks), entertainment district (2 blocks), Cummins logistic campus - Fortune 500 company (2 blocks), medical district (12 min bike ride).