DC4MS

March Newsletter

Welcome to the March edition of the M newsletter. We are very pleased with the progress of our company as the first quarter of 2008 comes to a close. We have had good sales in the first quarter and are seeing some very positive response from our first direct mail campaign. As a result, we can share with you some information in terms of the potential expansion of our portfolio.

Sincerely,
Paul Poscente - President & CEO

M PORTFOLIO - where will you go next?

We are currently under negotiations for two 2500 sq. ft. 3 bedroom units in the renowned district of the Biltmore in Phoenix. The Fairway Lodge is a new development situated along the 10th fairway of the Biltmore Adobe golf course (one of two championship golf courses on the property), and is located adjacent to the Arizona Biltmore Resort and Spa. We have a rare opportunity to be able to purchase quality units in an area with so much to offer our shareholders.

The famed Frank Lloyd Wright designed resort began construction in 1929 and is still among the most desired places to stay in the area. Every president from Franklin D. Roosevelt to George Bush has stayed and played golf at the resort. The development and the location offers an unmatched experience for the Phoenix area.

Located approximately 15 minutes from Phoenix Sky Harbor airport, the Biltmore area is generally recognized as starting from 24th and Camelback and extending north to Thunderbird. The Biltmore Fashion Park, which is a 3 minute drive from The Fairway Lodge, is a well-known upscale shopping plaza with tenants from Macy’s to Saks Fifth Avenue, as well as a number of excellent restaurants. Continuing east from the Biltmore for an additional 10 minutes is the world renowned Scottsdale Fashion mall. In terms of an epicurean experience, restaurants like Morton’s, Roy’s, Capital Grill, Tomassos, Mastros, The Ocean Club, and Wrights, are all within 10 minutes of the units.

5 minutes north the Fairway Lodge is the Phoenix Mountain Reserve (North Mountain Reserve). The reserve is a set of local Phoenix Mountains with about 25 different hiking trails ranging from novice to expert. At 2,104 feet, North Mountain (Squaw Peak) is a Phoenix landmark in its own right. The North Mountain area offers more than summit climbs; an array of trails of all levels of difficulty offers something for everybody. North Mountain Park is open from 5 a.m. to 11 p.m. and offers trailhead parking and reservable picnic ramadas.

Another distinctive feature of the property (just across the entrance to the Fairway Lodge) is the Dr. Art Mollen Fitness path for hiking or biking. Celebrity fitness expert Dr. Art Mollen teamed up with the Biltmore and the City of Phoenix to develop a network of fitness paths (44 miles) running along the Arizona canal.

From enjoying the views of the city of Phoenix from your unit, having a swim in the infinity pool, to having a latte at an outdoor café overlooking the grounds of the Biltmore, to hiking and golf, this opportunity at The Fairway Lodge offers the ultimate Phoenix experience.

We are under negotiations for a ground floor unit and a third floor unit and should be able to reach some conclusions in the next 14-21 days. Given the fluid state of the local real estate market, complete due diligence has become of even greater importance. Deeper assessments of appraisals and more investigation of potential encumbrances is a necessary requirement in the current environment, and thus the purchase process takes more time.

We believe this opportunity represents a better alternative for our shareholders than that of Kierland. Also, to address pent up demand for this area we are attempting to purchase 2 units. The purchase of these condominiums does not represent a change in real estate purchase strategy. We will still be buying predominantly single family homes. However, this situation allows us to offer a unique experience for shareholders and purchase two properties to address availability.

M Memories

Rancho Mirage from Deirdra (age 9), Tess (age7), Tracy (Mom) and Paul (Dad)

“We had such a good stay! We had lots of fun, when we got here I was so amazed. You guys did a great job, I wish I were staying here forever!”


M Forecast

Commodities have become the latest victim of the market turmoil. Traders had been parking dollars in commodities such as gold and oil, driving them to all time highs. In light of the Bear Sterns collapse, the subsequent FOMC move to drop US rates by 100 basis points in two days, and the general realization of a weak economy, money began to flee out of the commodity markets. The two biggest casualties of the commodity reversal have been the relative out performance by the TSX and the Canadian dollar. If we have seen a short term bottom in the $US, along with an aggressive Fed and a likely cyclical commodity retreat, we believe the $CDN will remain slightly below parity in the short term.

The US real estate market may also see some short term stabilization. Policy changes by the Federal Housing Commission will loosen credit markets and allow for greater latitude in mortgage qualifying. Having said that the sins of the past will not be quickly behind us. Five or six times the historical average of real estate inventory will cause further increases in foreclosures before any tangible improvement. All this is good news for M in terms of purchase opportunity. It does however highlight the need for hyper due diligence in our purchase processes.


M Memories

Barbados – Stephen Green and Janet Macphee

As we left Calgary a cold front was moving in and the weather was -25C. But we are here! With temperatures of+27C and a nice cool breeze off the ocean to help us sleep at night. The view from the terrace is spectacular. It amazes us all the time! We went to Champers on Carolyn’s recommendation – great food in a fabulous location.

Carolyn, thanks for everything, hope to see you again.


M People
In an effort to help you get to know the M team a little better we will be doing a short biography each month on an M team member.

We would like to introduce you to our Accounting Supervisor Jennifer Hendricks:

Hello everyone, my name is Jennifer Hendricks and I am your M Private Residences Accounting Supervisor. I am originally from Milton, Ontario and I moved to Calgary with my family when I was in grade 3. I have two children, Austen who is 15 and Adrianna who is 13. We can’t forget our dog Zeus, a 9 year old Rottweiler. Before M, I managed an Orthodontic practice for 6 years then I spent 5 years as a Human Resources/Trust Administrator for Beaumont Church LLP.

In my time away from the office I enjoy driving in demolition derbys, and in the past few years have been quite successful in a few events. I’m a fan of all sports and tend to plan outings that involve or are based on sports events. I would have to say hockey is my favorite sport to follow. I attend as many Hitmen and Flames games as possible each season. I also have a stubborn streak mixed with pure determination, so I tend to take challenges hands-on. Last year I took on the project of building a garage. I had decided that this was a challenge I could master. With my Dad at my side, his knowledge, ability and extreme patience matched with my klutzy unskilled hands we openly took the project on. It would have taken a few men the weekend but our project took a mere year to complete and is a lifetime’s worth of laughs and memories. Our family has a passion for music and with a music room in our basement, it is often quite noisy at my house. The majority of my time is spent with my children, my son Austen is in grade 10 - he plays guitar and is an avid athlete. He plays midget hockey, HS football, and any other sport he can fit into his busy schedule. Adrianna is in grade 8. She spends her time playing her drums and is involved in a youth leadership group.

The team here at M is one of the most dedicated and passionate teams I’ve ever had the privilege of working with. My education and life experience has been a great match with M. I look forward to being a part of M’s future.