The purpose of this Confidential Investment Offering Overview is to provide a summary of a possible future private investment opportunity that may be made available to a certain limited number of accredited investors. This is not an offer to sell real estate and/or any type of security, partnership interest, public or otherwise.

The contemplated offering, if made available formally, would provide Investors with the opportunity to acquire a partial interest in a 136,091 square foot, to-be-built hotel, rising 27 stories tall and featuring 311 rooms, located in New York City, New York. The hotel will be operated as an urban Courtyard by Marriott, a division of Marriott International, Inc., a leading worldwide hospitality company with over 3,600 lodging properties and operating units in the United States and 71 other countries and territories. 133 Greenwich Hotel, LLC, an SMB Equity, LLC sponsored entity, will co-invest in the property with two operating partners: Robert Finvarb Companies, a hotel and real estate development firm that has specialized in developing multiple Marriott branded hotels for over 10 years, and is considered a preferred Marriott developer; and, Hidrock Realty, a New York based real estate organization with 40 years of experience in developing and managing properties throughout Manhattan and Brooklyn.

The project has received a tremendous amount of interest and support from Marriott, who has offered $4 million in equity to brand the hotel as a Courtyard property; in comparison, Marriott typically offers, at most, $1 million for a new hotel development project. This financial commitment strongly exemplifies Marriott’s confidence that the location will be of great success and that the hotel will be a top-performing property for the Courtyard brand.

The property is located at 133 Greenwich Street, New York City, NY and is situated in what is considered the “Financial District,” in Lower Manhattan. The hotel will be located one block south from the World Trade Center redevelopment site and will be directly across the street from the recently completed National September 11 Memorial and Museum. Lower Manhattan is currently in the midst of major redevelopment of numerous properties and structures, including Wall Street, Battery Park, the Statue of Liberty, South Street Seaport and the Brooklyn Bridge all of which will increase the area’s attractiveness and draw for travellers. The area’s growing attractiveness is further evidenced by the commitment of firms, such as Goldman Sachs and Conde Nast, establishing their worldwide headquarters in Lower Manhattan. Lower Manhattan draws travellers from far and wide, and saw a record breaking 9 million visitors in 2010, with that number expected to be higher for 2012. Lower Manhattan has a strong, growing demand from both business and leisure travellers alike, and we believe this hotel is a unique and exciting opportunity to contribute to the rebuilding of the World Trade Center.

The hotel will be built upon vacant land that was recently acquired for approximately $30 million. The cost to build the hotel is expected to be $69 million, and will be built at a total cost of $330,000 per room; comparable hotels throughout New York City have been selling between $300,000 to $500,000 per room, depending on property age and location. In several years, the developer believes that the hotel can be sold in the mid to high $400,000’s per room, which the developer believes to be reasonable, if not conservative, allowing for a potential sizable profit.

The re-building area of the World Trade Center encompasses over 20 acres, and is currently the largest construction site in the entire United States, and one of the busiest redevelopment areas in the world. Over $24 billion has already been spent on the redevelopment, and there are over 3,000 workers on site every day, working twenty-four hours a day, to finish construction as quickly as possible. It is anticipated that the overwhelming majority of the buildings, or most of the office buildings, will be completed at the same time or before the hotel is expected to open for business. When finished with construction, the World Trade Center office complex will have over 15 million square feet of office space with additional retail and residential; all are expected to be fully occupied.

Only a block away from the hotel site, is a brand new $3.44 billion, Santiago Calatrava designed, transportation HUB; which, when completed, will connect the area to all of Manhattan and the surrounding Burroughs, with access to 13 subway lines and a future link to JFK International Airport. This location is anticipated to be a strong and well-performing property, which Finvarb was able to secure through well-established local relationships in an off-market deal. The vacant land was sold in 2007 for $45 million, but after the developer went bankrupt, Finvarb was able to acquire the land at just under $30 million, further emphasizing the strength of the project.

Courtyard is part of the Marriott International family of hotels, and operates more than 900 hotels in 37 countries. The first location was built in 1983 in Atlanta, GA, and was Marriott's first sister brand property. In the mid-1980’s Marriott spent $2 billion on building out the Courtyard by Marriott chain, which now competes with other mid-priced business-oriented hotels like Hilton Garden Inn, Wingate Inn and Hyatt Place. The brand has always intended to target business travellers who expected quality service at affordable prices. However, over the years, it has come to cater to the leisure travellers as well by now offering a swimming pool or fitness center, microwaves and mini-fridges for rent, and family rates at most of their locations. Courtyard rooms typically feature large desks, couches, free broadband Internet access, and “big” breakfasts, with the majority of locations having full-service restaurants, and all having 24-hour “mini carts” called “The Market.”

Our Operating Partner, Robert Finvarb, is the founder of Robert Finvarb Companies that specialize in developing Marriott branded hotels in high-growth markets that are historically underserved. Based in Florida, Finvarb has developed a diverse array of real estate projects including hotels, apartments, office and retail space. Robert Finvarb Companies focuses on developing their projects through the entire process; from the day the hotel opens for business, Finvarb’s company oversees sales, marketing, accounting and administration functions that are typically undertaken by Marriott’s management staff at each hotel. Currently, Finvarb owns 9 hotels that are open and operating under Marriott flags and 2 hotels that are in development. Within the Marriott family of hotels, Finvarb has chosen to focus on the Courtyard by Marriott, Residence Inn by Marriott and SpringHill Suites brands, as these products have long-standing track records of success. Our firm has previously participated in three different hotel projects with Finvarb Companies on projects in Ft Lauderdale, FL; Chantilly (Metro DC), VA; and Chicago, IL. All three hotels have been successful.

Finvarb is developing this property with Hidrock Realty, a New York City based developer and manager of office buildings, retail and residences with a 40 year track record of success. Hidrock has a great depth of experience in New York construction and navigating the bureaucracy of a large city. Finvarb and Hidrock are currently nearing completion on the construction of another hotel project in Midtown Manhattan, several months ahead of schedule. Finvarb believes Hidrock brings a great deal of construction experience and strong relationships within the New York real estate community to the process. Hidrock will be investing 50% of all equity for this project.

Marriott International, Inc. (NYSE: MAR), an internationally known chain of hotels employs over 120,000 people; and, based in Bethesda, Maryland is the world’s leading hospitality company. Marriott had 2011 revenues of over $12 billion, and a net income of $198 million.

The rebuilt World Trade Center and surrounding area has the potential of being considered the economic and commercial hub of the entire United States. Most major corporations will have, or already have, offices in the surrounding area and the cultural offerings will ensure that tourists are visiting this iconic location during the work week as well as over the weekends. The hotel site, overlooking the September 11 Memorial and Museum, with unobstructed and protected views, will only enrich an already thriving destination of business and leisure travel, and 133 Greenwich Hotel, LLC is excited to be partnering on a project that so strongly reinforces the re-building of Lower Manhattan and an iconic American city.

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