Contract analysis

I. Executive Summary The purpose of this memorandum is to summarize and analyze the loan term sheet (the "Term Sheet") received on July 10, 2025, from Meridian Coast Bank, N.A. ("MCB" or the "Lender"), headquartered at 100 West Bay Street, Suite 1500, Jacksonville, Florida 32202, for a proposed first-mortgage acquisition loan (the "Loan") to finance PCG Delray Hotel LLC's (the "Borrower") acquisition of The Marisol H

II. Summary of Key Loan Terms A. Borrower and Guarantor Borrower. The Borrower under the proposed Loan will be PCG Delray Hotel LLC, a single-purpose entity to be formed under the laws of the State of Florida as a single-member limited liability company. PCG, the Sponsor, will serve as the sole member of the Borrower. The Borrower's Employer Identification Number ("EIN") will be obtained from the Internal Revenue Ser

I. Prepayment Provisions The Term Sheet sets forth the following prepayment structure: Years 1–3: Yield Maintenance. During the first three years of the Loan term (the fixed-rate period), any prepayment will be subject to a yield-maintenance premium. Yield maintenance is a prepayment penalty calculated to compensate the Lender for the present value of the interest income it would have received had the Loan remained o

III. Security Package A. First-Priority Mortgage Lien The Lender will require a first-priority mortgage lien (together with an assignment of rents) encumbering the Property, legally described as the real property located at 455 South Ocean Boulevard, Delray Beach, Florida 33483, and more particularly identified by Palm Beach County Property Appraiser Parcel Identification Number 12-43-46-27-01-005-0010. The Property

IV. Conditions to Closing / Conditions Precedent The Lender's obligation to fund the Loan at closing will be subject to satisfaction of the following conditions precedent, among others that may be specified in the formal loan commitment and definitive loan documents: A. Appraisal The Lender requires a satisfactory third-party appraisal confirming that the "as-is" fair market value of the Property is at least $35,000,

V. Key Negotiation Points and Recommendations This Section sets forth our detailed analysis and negotiation recommendations for the provisions of the Term Sheet that we have identified as most significant to the Borrower's interests. We recommend that the Borrower's markup of the Term Sheet address each of the following points. A. Interest-Rate Lock Timing The Term Sheet does not appear to specify when or how the 6.3