Landlords can recapture previously invested equity by monetizing prior TI investments through Polestar.

• Polestar provides property owners with equity by stripping the portion of rent that represents the present value of TIs and selling it to the capital market at a coupon rate based on the tenant’s credit.
• Eliminates credit exposure to tenant’s unamortized TI allowance that cannot be recaptured if tenant defaults.
• The equity reacquired through the Polestar system can be reinvested in new developments, property acquisitions or used to de-leverage the balance sheet.
• Internal rate of return is increased through reduction of project equity investment
• No liens and non-recourse.
• Overall project risk is reduced by lowering permanent mortgage requirements and assigning the TI credit risk to Polestar.

• Tenants will need to agree to reopen the space lease and bifurcate it into two separate leases with the incentive that the resulting TI refinancing has a lower cost-of-funds and part of the spread differential can be passed on to the tenant.
• The program is easier to implement for REITs and other portfolio owners who finance properties with corporate and non-property specific debt.
• The program can take time to implement, since tenants may need to be educated on TI leases and the reassignment of rents, though Polestar’s bankers will assist in this process.