This confidential Project Overview (“Project Overview”) has been prepared by PF Capital, LP (the “Sponsor”) solely for your limited use in determining whether you desire to express any further interest investing in Harbor Hill (the “Property”), an approximately 400,000 GSF mixed-use development located within the Portland Foreside Master Development Plan This Project Overview does not purport to provide a necessarily accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information that prospective investors may need or desire All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Sponsor and are therefore subject to material variation. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective investors Neither the Sponsor nor any of its respective officers, agents, or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of this Project Overview or its contents Analysis and verification of the information contained in the Project Overview is solely the responsibility of the prospective investor The Sponsor expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers and/or terminate discussions with any entity at any time with or without notice This Project Overview and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the “Contents”), are confidential. By accepting this Project Overview, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Project Overview or any of its contents to any other entity (except for outside advisors retained by you if necessary, in your opinion, to assist in your determination of whether or not to make a proposal provided that such advisors agree to be bound by the terms of this confidentiality agreement) without prior written authorization of the Sponsor, and that you will not use this Project Overview or any of its contents in any fashion or manner detrimental to the interest of the Sponsor.
FINANCIALS
PROJECT TEAM
PROJECT SUMMARY
PROJECT SCHEDULE
REDFERN PORTFOLIO
CONTACT INFORMATION
TAVATA
An Innovative Multi-Family Approach
Redfern is raising Limited Partner Equity to fund Tavata, an innovative multi-family apartment in Portland’s East End. Key investment attributes are as follows:
Strategic Location
Tavata sits in Portland’s hippest neighborhood, the Washington Ave district, on public transit, and walkable to the Old Port and Northeastern University’s new Roux Institute campus.
Roux Institute Partnership
The Roux Instiitute expects to grow enrollment to 3,500 students in the new $500M waterfront campus, but plans no housing. Tavata is ideally located and designed to meet this housing demand. Redfern is Northeastern’s housing partner for Portland, and recnetlyt entered into a Housing Cooperation Agreement for Tavata
Designed for Affordability
Tavata will address Portland’s housing crisis by delivering high-quality housing at a lower cost per renter than other new construction. Creating more affordable housing is not just doing good, it is good business. More affordability means a larger addressable market and reduced downside risk.
Proven Operator
Redfern Properties is the leading developer and operator of Class A multi-family housing in Portland, with an excellent track record of completed projects.
PRIME DEVELOPMENT SITE
The Tavata parcel at 165 Washington Ave is a largely flat 1.5 development site with an old industrial building (to be demolished) and a large gravel parking lot.
The site is on Portland’s Munjoy Hill at the northern end of Portland’s peninsula and abuts Eastern Promenade Park and Mt. Joy Orchard
Redfern commissioned Phase I and Phase II Environmental Site Assessments and geotechnical investigations and found nothing atypical.
The property is subject to Purchase & Sale Agreement with price of $6.7M ($4.4M per acre or $20,600 per apartment unit). Land acquisition to close concurrent with equity financing.
URBAN WALKABLE/TRANSIT ORIENTED DESIGN
Tavata Is Directly Adjacent To A Bus Stop That Serves Four Different Greater Portland Metro Bus Lines – Local Routes 7, 9A And 9B, And The Breeze, Which Has Service To Falmouth, Yarmouth, Freeport, Brunswick, And Bath
The Target Demographic For Tavata Are Downtown Workers And Graduate Students Who Have Little Need For Private Vehicles Redfern Has Also Been Engaged With Administrators At Northeastern To Develop A Private Bike-share Program Between Two Anchor Points: Tavata And The New Northeastern Campus Across The Bridge.
In February 2024, The State Announced Its Plans To Create A New Pedestrian Bridge Connecting The Bayside Trail To The Roux Institute On The Other Side Of The Bay This Pathway Will Create Easier Transportation From The Roux Institute To The Rest Of The City
PORTLAND’S COOLEST NEIGHBORHOOD
“Portland Is In The National Spotlight...The Greatest Concentration Of Creativity And Talent Is Located On A Third Of-a-mile Strip Near A Highway Ramp. Inner Washington Avenue Is Home To More Than 20 Places To Eat And Drink, Ranging From Portland Institutions To Leaders Of The City’s Recent Restaurant Boom. With Less Than A Five Minute Walk Between The Farthest Points, There’s No Reason Not To Visit Them All”
Washington Avenue | The Food and Drink Capital of Maine
The Maine Mag
PORTLAND: A ‘BEST CITY’ IN AMERICA
Portland’s broad appeal is driven by an expanding local economy and high-quality of life. Portland has been recognized on a number of best of lists reflecting its growing popularity and reputation.
LIFESTYLE
#1 Best City in the US for Remote Work (2024)
#2 Most Livable Metro Areas (2025)
#4 Best Small City in America (2024)
Top 10 US City for Food and Drink (2024)
#7 Top Cities for Quality of Life (2025)
#3 Best Cities for Jobs (2026)
ECONOMIC MIGRATION
#7 Cities for Relocation Interest (2025)
#4 Top metros for Graduates (2025)
NORTHEASTERN UNIVERSITY ROUX INSTITUTE
Northeastern’s Roux Institute was founded with a mission to make Maine a leader in AI, data science, biotechnology, and other high-tech fields. With donations from David and Barbara Roux and the Harold Alfond Foundation, Northeastern is building a $500M waterfront campus, just across Tukey’s Bridge from Tavata. With enrollment projected to grow to 3, 500 in the coming years and no plans for oncampus housing, the Roux Institute will create substantial housing demand.
Redfern is Northeastern’s sole housing partner in Portland, currently occupyingleasing 91 apartments from Redfern. These leases will terminate upon opening of Tavata, which will become the primary student housing options. While Tavata is designed for the general market, the feedback of graduate students has been carefully considered, with Tavata design features including small but private bedrooms, co-working spaces, and communal rooms.
Redfern and Northeastern have entered into a Housing Cooperation Agreement dated Februaary 27. , 2026 that describes the parties’ intent to make Tavata the prominent housing option for Roux students. According to Chris Mallet, Chief Administrative Officer, of Northeastern’s Roux Institute:
“Our relationship with Redfern, and specifically the Tavata project, is an important part of Northeastern’s growth plan for the Roux Institute . ”
OTHER DEMAND GENERATORS
In addition to the Roux Institute, other important Portland-based institutions are growing. Maine Medical Center (“MMC”), the largest hospital in the state and the region’s largest employer, is currently undergoing major expansion The main component of this development is the Malone Family Tower, an eight-story facility adding additional private patient rooms, operating and procedure rooms, and pre- and post-surgical beds, which will add around 300 new jobs to the market This expansion is a long-term initiative aiming to secure MMC’s status as a world-class hospital meeting the region’s increasing healthcare needs.
University of New England (“UNE”) Medical School (right) is the only medical school in Maine and recently relocated from Biddeford to a new building in Portland. The new medical school building is expected to increase the medical school’s enrollment by 21%, and further boost Portland’s status as a medical hub.
UNE Medical School
RENT
GROWTH
FUELED BY HIGH COST TO OWN AND RESTRICTED SUPPLY
Multifamily Rent ($) New Mortgage Payment ($)
Cost To Rent Vs Own
Rising Mortgage Costs have widened the affordability gap, making home ownership unattainable for most
A more recent CBRE 2025 Mid-Year study reports…
The cost of owning now exceeds cost to rent by the highest margin in history Only 12% of current renter households could afford to buy in todays market
Apartment Rents Slow Where Supply Goes
Portland’s market is experiencing the highest rent growth of any Top 150 market
Strong Correlation between newly added supply and occupancy/rent growth
High supplied markets Austin, Denver, Nashville have seen rents decline (despite strong demand) due to oversupply
Northeast markets, including Portland with more constrained supply (often due to regulatory burden) seeing positive rent growth
PORTLAND MARKET OUTPERFORMING
2025 YoY Rent Growth: Portland vs Primary Markets
Average Rent: Portland vs National Average
PORTLAND’S MARKET RATE APARTMENT SUPPLY
Winchester Woods +48 units
units No Projected Supply
Rumery Loft s
+417 units
All recent supply has been quickly absorbed, keeping the market tight and further increasing rents.
+38 units
*Thompson’s Point development will also deliver in 2028, but it is a materially different product. It focuses on two and three-bedroom units with average rents ~$3,400. +246 units
Portland rent growth is outperforming larger east coast markets, such as Boston, NYC, and Washington DC
No new supply on the horizon in Portland until Tavata opens in 2028
Thompson’s Point (Cathartes)* +257 units
Redfern New Lease -Up Absorption
Redfern introduced 509 new units to Portland market Aug 2023 to April 2024
Leased 402 new units in 10 months (>40 per month)
263 units, opened March 2024, 80% occupied by August
68 move-ins in June 2024 alone
PORTFOLIO OCCUPANC Y
CHALLENGING REGULATORY ENVIORNMENT
Burdensome Regulations: Irritating but a Barrier to Entry
Site Plan Approval
On February 25, 2025, Tavata obtained unanimous Site Plan approval from Portland’s Planning Board. The Site Plan Approval confirms the projects compliance with all Zoning, Code, Regulatory, and Technical Standards. The project is fully entitled and can apply for a Building Permit when Construction Documents are complete.
Inclusionary Zoning
Currently, Portland’s Workforce Housing Ordinance, requires Tavata to deliver 81 units (25% of 325) affordable to households earning up to 80% of Area Median Income (AMI). This requirement is expected to change soon (See next page)
Rent Control
Portland also passed a Rent Control referendum in 2020, limiting rent increases to once per year with 90 days’ notice. Increases are tied to inflation with an additional 5% increase allowed on apartment turnovers.
INCLUSIONARY ZONING
Portland currently reviewing Inclusionary Zoning Policy
Consultant CZB has issued report recommending elimination or significant rollback of Inclusionary Zoning in Portland
City Council to meet in April to discuss elimination of IZ requirement of
Tavata Pro Forma assumes 10%/100% Workforce Housing Agreement
Alternatively, Redfern will negotiate an alternative Workforce Housing Agreement with the City
BUILDING DESIGN
Redfern hired Holst Architects, an award-winning firm from Portland, Oregon, to bring new perspectives and expectations to the project’s design, and Ryan Senatore Architects to complete the technical drawings and interface with the local code office and construction manager.
Holst’s design expertise is most notably in the way Tavata engages the street. The Washington Avenue façade is punctuated with masonry arches lined with brass-toned sheet metal, Juliett balconies, and large expanses of glass that bring natural light to all corners of the building.
The façade primary material, brick, is a durable and familiar material on Portland’s peninsula, but the white and tan color pallet is a contemporary variation of the traditional material.
The totality of the building’s design blends traditional Portland elements with contemporary touches that elevate Tavata in Portland’s built environment.
TYPE I CONSTRUCTION
Tavata will be Type I construction, meaning the frame will be made from reinforced concrete and protected steel, which will ensure durability, reduce insurance premiums, and cut long-term maintenance needs.
The exterior envelope (roof and walls) will be highly insulated, the roof to R-31 and the walls to R-33.5, and at 55, the Sound Transmission Class (STC) rating for units will exceed code requirements, which will provide a quieter and more comfortable living experience for Residents.
Because of the lower operating expense, and increased durability and longevity, concrete and steel buildings typically achieve lower Cap Rates, and thus higher values, than comparable wood-frame buildings.
INNOVATIVE PRODUCT MIX
Tavata will provide affordable, energy efficient, high-quality, homes for graduate students and downtown workers in flexible configurations that can accommodate Double Occupancy, thus reducing the rent cost per person below what is available in the Portland market.
EFFICIENT STUDIOS
The Tavata studio is designed to provide a fully functional living space with full kitchens, bathrooms (with laundry), along with discreet spaces to sleep, work or study, and relax. These studios provide all of the comfort, convenience, and function of Redfern’s roughly 400sf studios in existing buildings but with a target price 10% lower, providing a meaningful value proposition to Residents
This compact, flexible layout features a private bedroom, full kitchen, and in-unit laundry. For single occupants, the unit functions as a typical, though small one-bedroom apartment, at an attractive price. The convertibility is based on focus group discussions with Northeastern/Roux graduate students who desire private rooms, but often have limited budgets. In Double Occupancy configuration, the apartment still provides all amenities (full kitchens, bathrooms, laundry, etc.) but at price point below $1,200 per month per person.
TRADITIONAL ONE-BEDROOM
Tavata includes a limited number of larger, traditionally designed one-bedrooms ideal for singles or couples seeking more space. With market rents now exceeding $2,500, these units fall outside the project’s core affordability range and are instead tailored to downtown professionals or Northeastern/Roux Institute faculty looking for a spacious, highquality apartment in a central location.
TWO -BEDROOM
Tavata includes 78 two-bedroom units, designed primarily for roommate living. These units offer larger bedrooms and living spaces than the Convertible One Bedroom, with only a modest increase in cost per person. Of the total, 37 have windows in both bedrooms, while 41 feature one shared-light bedroom, allowing for more affordable pricing within this high-demand layout.
AMENITY LAYOUT
RETAIL
FITNESS GAME ROOM LOUNGE
MAIL/PACKAGE
SEATING
BUZZY BOOTHS
LIVING ROOM LOUNGE
AMENITIES
Tavata’s Amenities Are Designed For Residents Who Need Space To Work, Relax, And Connect.
There Are Quiet Spots To Focus, Open Areas To Hang Out With Friends, And A Gym To Recharge. They include:
• Co-working space
• Ten “Buzzy Booths”
• Fitness room
• Game room
• Roof-deck
• Courtyard
• Electronic package concierge
• Bike room
• A mini-market with snacks
BRANDING
Tavata’s branding encapsulates themes of harmony and balance. The word Tavata, in Finnish, translates to “to meet or come together.” The color palette consists of coral/orange, earthy beiges, and black accents. Redfern has carefully designed marketing and branding materials catered specifically to Tavata. The project’s identity will effectively translate across all marketing platforms, from digital to physical signage. The building will be home to a wide array of residents, and the communal spaces and active management are designed to facilitate a sense of community within the building
PORTLAND APARTMENT COMPARABLES
COMPARABLE STUDIO UNITS
COMPARABLE
COST PER BEDROOM
Tavata provides Class-A bedrooms at a lower cost than competitors
COMPARABLE RENT PER BEDROOM
TAVATA RENT PER BEDROOM
*Assumes double occupancy of all eligible units
DEVELOPMENT BUDGET
TDCs below $300,000 per unit for high-quality new construction represents attractive cost basis
GMP assumption of $71.9M is based on most recent Estimate from Penobscot General Contractors ($71.9M/209,000sf = $344 psf)
Developer fee of 3% of TDCs, of which Redfern will defer 2/3, taking as Class A member units (same security as Equity Investors)
Development Costs
STABILIZED OPERATING STATEMENT
PRO FORMA
Redfern has prepared a detailed Year 1 stabilized operating pro forma for Tavata, assuming stabilization in 2028
Revenue is based on the proposed unit mix, with rents trended at 3% annually through the lease-up period
A 3% vacancy and credit loss assumption is used, slightly above Redfern’s recent portfolio performance. Expenses generally increase at 3% annually
CAPITALIZATION
Redfern is currently negotiating Debt Tems with several Banks and expects a loan amount of $75.0M. Most likely the Bank Debt will come from a syndicate of 3 or 4 local banks.
The remaining $21.1M in Funding will come from the sale of Class A Member units. Of these units Redfern will contribute roughly $3.1M in the form of $1.5M cash and will take the majority (2/3) of its 3% Development Fee as equity (rather than cash). Redfern takes the majority of its Fee in Class A units, the same units held by Limited Partners, to maintain alignment of long-term objectives. In total Redfern would own roughly 3.1M ‘Class A’ units. The remaining equity, roughly 17. 9M Class A units, will be raised from Limited Partners. A ‘Preferred/Promote’ structure will be implemented whereby Class A units are paid a Preferred Return of 8%, after the construction period. Redfern will receive Class B units, amounting to 30% of the Total Member Units. (See slide ‘THE OFFERING’ for additional details).
BANK FINANCING
Redfern is seeking construction-to-permanent financing for Tavata in the amount of $75M Proceeds from the loan will be used primarily for construction Land acquisition, soft costs, and initial construction requisitions will be paid with equity, with loan drawdown beginning only after equity is expended.
The $75M loan amount represents roughly 78% of Total Project Costs, but is less than 65% of the expected ‘as-stabilized’ appraised value (see section ‘Valuation’). A 10-year term with a 5-year Interest-Rate SWAP (floating rate thereafter) may be preferred based on the current rate environment. Redfern would seek an interestonly period of 42 to 48 months, to cover the 24 months of construction plus a lease-up phase After the interest-only period, the loan should amortize over 30 years. The figure to the right shows the desired terms, though Redfern is pleased to consider alternative terms and proposals.
The table below shows the projected debt coverage ratios.
VALUATIO N
CBRE 2H Cap Rate Survey:
Tier 1 Multi-Family Cap Rate (Urban Infilll): 4.75%
No returns to limited partners (LPs) during construction
In ensuing years, LPs earn a preferred 8% return on unreturned capital contributions, and after preferred returns has been paid, LPs will receive 70% of any additional Cash Flow from Operations
After LPs’ initial capital contributions have been returned, LPs will receive 70% of all distributions
Distributions from major capital events (sales, refinancing, etc.) will be used first to pay any accrued preferred returns and second to pay back any unreturned capital balances. When additional amounts are available, LPs will receive 70% of related distributions
PROJECTED INVESTOR RETURNS
All figures shown are thousands ($000)
Contemplates a hypothetical Year 10 Exit sale at 5.5% Cap Rate Assumes 3% Revenue and expense growth annually
TAX ADVANTAGES OF MULTI -FAMILY INVESTING
Redfern’s previous projects have delivered Cash Distributions to Limited Partners alongside Tax Losses
Redfern Downtown LLC
NOTE: F igures shown are per $100,000 of cash invested as Class A member equity
Use of bonus Depreciation and Cost Segregation Studios allow for accelerating depreciation in the early years of investment.
Redfern Longfellow LLC
PROJECT TEAM
Redfern has assembled an experienced team of largely local firms. The key members of the design team RSA, Acorn Engineering, Structural Integrity, and Soren Deniord, have all be working with Redfern for more than a decade and together have an unblemished track record of delivering complex projects.
Lead Developer
CONSTRUCTION MANAGER
PGC is a 100% Employee-Owned Company that has evolved into one of Maine's most dynamic construction firms Their portfolio spans retail, commercial, and multifamily projects; notably, they recently completed the construction of The Armature, a 171-unit multifamily building in Portland’s Bayside, and The Eddy, a 250-unit multifamily building in Biddeford, Maine
Redfern intends to engage with PGC on a “CM at Risk” basis, an arrangement by which they will serve as Redfern’s partner during preconstruction, build the project with full disclosure of all actual costs, and take all risk for any costs above a contractually agreed upon Guaranteed Maximum Price (“GMP”) Redfern is targeting $73 1M for GMP and expects PGC to meet this target.
PROJECT HIGHLIGHT S
Prime Location
Located in Portland’s East End, a short walk to the Old Port, the Roux Institute, and the Atlantic Ocean, and along the Washington Ave restaurant corridor, Tavata is ideally suited for apartment living.
Innovative Product Design
Flexible and efficient floorplans allowing opportunities for rent -splitting (roommates), combined with thoughtful common amenities will allow Tavata to welcome Residents across a variety of price points and foster strong community .
Concrete/Steel Construction
Tavata will be Type I Construction. Concrete and steel buildings are more durable, and cheaper to maintain and insure over the long-term, yielding increased value versus wood-frame buildings.
High Demand Low Supply Market
Portland faces an acute housing shortage, with demand steadily rising due to Portland’s broad appeal. Regulatory burdens and geographic constraints will keep supply low .
Best -in -Market Developer/Operator
Redfern Properties has been Portland’s most active multi-family developer over the past decade, with a long track record of successful projects.
Elevated Architecture
Redfern hired a national architecture firm to create a landmark building. With arches and copper, the design palette and materials will be noteworthy .
Roux Institute Partnership
Redfern’s partnership with Northeastern/Roux will support demand for Tavata apartments by graduate students, likely accelerating initial lease-up and increasing long-term occupancy .
Affordability Increases Addressable Market
By reducing the entry price point for Residents, Tavata expands its universe of potential Residents.
SOCIAL, CIVIC, AND ENVIRONMENTAL IMPACT
Tavata: A Non-concessionary Impact Investment
A Solution to Portland’s Housing Crisis Portland has an acute housing crisis
• An estimate 84,000 new homes needed by 2030
• Supply shortage has led to meaningful increase in rent
• Workforce can no longer live near work
Supporting Economic Development through Roux Institute Partnership
The Roux Institute at Northeastern is building a $500M Campus focused on Tech and AI. Supporting
• 3,500 Students
• 400–500 New Jobs
Dense, walkable housing with no Fossil Fuels
• Transit/Bike/Ped Oriented (no parking)
• No fossil fuels (except for generator, where required)
• R-33.5 Insulated exterior walls and R-31 insulated roof
PROJECT SCHEDUL E
REDFERN TEAM
Jonathan Culley, Managing Partner, has extensive business, investment, and real estate experience. He co-founded Redfern Properties in 2005 and is responsible for the overall activities of the firm
Jonathan is the past Board Chair of Avesta Housing, the largest nonprofit affordable housing provider in Northern New England. He also serves on the Boards of the Project Home, Waynflete School, and Hearts of Pine, SC, where he is a Founding Partner.
Catherine Culley, Co-Founder/Partner, has broad experience in managing detailed projects and programs. She provides vision and project management on all of Redfern’s developments and has a keen focus on sustainability issues. Prior to Redfern Properties, Catherine was a founder/owner of Chaney, Culley & Associates, an event management and logistics firm based in Seattle.
Haynes Johnston, Director of Real Estate Development, joined Redfern Properties in 2021 and supports the firm’s development activities Prior to Redfern Properties, he worked as an architectural designer for the Knickerbocker Group.
Haynes holds a Masters Degree in Sustainable Real Estate Development and a Masters in Architecture, both from Tulane University and a B.A. from Bates College.
Peter Zimmons, VP of Finance and Accounting, manages Redfern’s finance and administrative activities. Prior to joining Redfern, Pete was the VP Finance at GL Rogers a real estate family office Earlier he worked in finance roles for best-in-class Boston Real estate firms including Related Beal and Northland
Jonathan holds an A.B. and an M.B.A., both from Duke University.
Catherine holds a B.A. from the University of Virginia.
Peter holds a B.A. from University of Delaware and a Certificate in Real Estate Finance from Boston University.
