| Developer Guide

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What inspires your project?

u A new approach to green development—

buildings that respect and showcase the

surrounding landscape

u Connections with nature—"letting the outside in"

u Authenticity

u Healthy living spaces using ecofriendly materials

u Beautiful finishes and buildings of incredible

quality and durability

u Forward thinking design for modern consumers

u Innovation in design and technology

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Beautiful, Versatile Designs to Fit Your Concept

Blu’s architects and designers have spent years

researching and engineering our line of precision-

built, beautiful, spacious and healthy homes. Each

model has its own look and feel, but all make use

of Blu’s innovative design technology, steel framing,

and eco-friendly materials.

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Working ModelsBlu has two primary ways of partnering with developers

Landowner purchases Blu home(s) for use as model units or spec homes in their development.

u Landowner commits all or a substantial portion of their development project exclusively for Blu homes:

u Included Blu Services: – Project Budgeting

– Site Layout

– Marketing Renderings

– Model Home Design

– Additional Services, Per Project Size & Scope**

u Key Blu Benefits: – Dedicated Page on Blu Website

– Blu Marketing Events at Model Home

– Strong Existing Demand: 25,000+ Database of Leads, plus National Media Exposure and Branding

– Recommendation of your Lots to Land-Seeking Leads

– Unique Customer-Controlled 3-D Design Tools

– Hit Products

– Precision Building Technology—Faster Process and Reduced Subcontractor Management

– Faster Sales Absorption and Increased Marketability of Remaining Lots

Landowner does not purchase model or spec homes, but has entitled land and a vision for a green community.

u Landowner commits all or a substantial portion of their development project exclusively for Blu homes:

u Blu provides the following developer services, free of charge: Project Budgeting & Initial Sales Site Visits

u Blu provides the following developer services on a time and materials basis, depending on project scope & timing:

– Site Layout

– Project Management

– Marketing Renderings

– Additional Services, Per Project Size & Scope**

Get the benefits of our designs, technology, and high quality products.

** Every project is unique, and we tailor relationships with our developer partners to fit with their vision, capabilities, needs, and goals. For larger-scale projects Blu can offer specific house design and renderings for each site, market analysis, and project management services.

Note: Developer discounts are considered only for volume purchases of homes, and are estimated based on pass through cost savings. Blu considers these, as well as any other cost sharing on sales and marketing, on a case by case basis.

Model or Spec Homes Agreement Developer Services Agreement

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How Blu Works with Developers: Services

Site Layout

We marry our homes perfectly to the land, siting them for best use of views and orienting them for best energy efficiency.

Project Budgeting

Blu Homes believes in transparency in the homebuilding process, which is why from the moment you sign a contract our prices are fixed.

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Model Home

Blu sales representatives will help you choose specs to fit the style you envision for your land, and for your future buyer.

Homesite Renderings

Blu’s team of talented designers and architects works to create gorgeous site specific renderings so buyers can picture the home on the site.

From initial project budgeting through the siting and construction of each home, Blu project managers guide developers and

their prospective buyers through the entire process, making building green simpler and easier than ever before.

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Expensive, time-consuming design process Painful, long, weather-dependent contsruction on site

Traditional Stick-Built

Finish

on

Site

Blu Benefits | Faster Process

Blu’s operations back end—including experienced project

managers and skilled factory craftspeople—allows Blu to

deliver an ‘end to end’ solution for developers. The final

product is a beautiful, healthy, superior home constructed

in just 6-8 weeks.

This benefits developers through:

u Reduced stress of managing subcontractors

u Reduced financing/carry costs

u Time spent on-site cut from 18 months to 18 days

u Simpler planning

u Greater predictability

u Less risk for financiers

And all of this produced by our cost-effective factory labor—you

simply cannot get this quality for this cost with stick-built homes.

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Blu’s processes and technology tools make financing easier

to secure, with significantly lower initial capital costs.

u Interest and carry costs dramatically lower due to faster process

u Sales and Marketing costs significantly lower due to existing Blu leads and sales efforts

u Architect costs dramatically reduced with pre-engineered, architect-designed models that can be tailored to each development

u Project management of Blu product installation and finish work reduces developer costs, and for smaller developments reduces developer staff requirements

– Blu also offers low-cost full-service project management of site work

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000Architect/Construction Docs

Master Planning

Project Management

Sales and Marketing

Total Interest Paid

Model Home Construction+ Foundation + Project Engineering

Infrastructure

Developer Capital Requirements - Blu vs. Stick Built

TraditionalStick-Built

Development

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$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000Architect/Construction Docs

Master Planning

Project Management

Sales and Marketing

Total Interest Paid

Model Home Construction+ Foundation + Project Engineering

Infrastructure

Developer Capital Requirements - Blu vs. Stick Built

TraditionalStick-Built

Development

Blu Benefits | Lower Capital Costs

Developer Capital Requirements – Blu vs. Stick Built

Assumes 20 unit development with equal land costs (not depicted) and interest rates. Assumes 2 year build out for Blu Homes project and 4 year build out for Stick Built Development.

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Blu Existing Project Locations

Blu Benefits | Demand and Media Coverage

Working with Blu Homes provides extensive client

demand and media coverage.

u Database of 25,000+ Leads in our top markets

u 80% of buyers don’t have land and are looking for land opportunities

u 100,000+ web visits per month

u PR and media coverage generating 90 million impressions

u Publicity across all 50 states

u 7 hit models

u Model or show homes across the country

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“It is so exciting to see how the Breezehouse design

has evolved since we helped introduce it to the world

in 2005.” “Blu’s innovative combination of advanced

building technology, striking design featuring the

best of indoor-outdoor living, and the highest green

and quality standards is a perfect reflection of how

our readers dream of living in the West.”

— Shannon Thompson, VP of Marketing, Sunset Magazine.

home tour

Blu Homes is named on the 2012

list by

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Blu Benefits | Hit Products

Our architectural design teams have worked for years to create and

refine our line of beautiful, precision-built homes.

Many clients and developers today are combining multiple Blu models

and site-built elements to create their ideal family or resort compound.

Breezehouse

Glidehouse

Lofthouse

Balance

Evolution

Element

Origin

Garages

u Combinations

u Decks

u Walk-out lower levels

u Trellises

u Carports and garages

u Solar panels

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Blu Benefits | Inspired Customers

“In considering building the Blu Homes, we wanted to construct

buildings that were not only beautiful, not only energy efficient, but also

ones that could maintain. The sense we got from our own operations

folks was that once a Blu Home is up, it’s a rock. It’s there forever.”

— James DeVecchi, Headmaster, Portsmouth Abbey School

“For us, the decision was not just because we liked Blu’s design, but

because we could move forward very rapidly. We purchased our land

in July 2010 and the house arrived 6 months later. A few short months

later, our finished home was showcased by Dwell Magazine.”

— Steve and Jo Cooper, Healdsburg, CA

“My wife and I had been coming up to the lake ever since we first met,

and decided to build a home there to make it a more permanent part

of our lives as our children grew up. We chose the Glidehouse because

of how it blurs the line between the indoors and outdoors.” “Blu’s

unwavering price and short time on site helped put us at ease and

minimized disturbance to our neighbors”

— Chris Chesney, Nelson, NH

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Blu’s proprietary 3-D design technology allows your

customer to:

u Determine floor plan and bedroom configuration

u Design finishes & fixtures (e.g., tile, flooring, cabinetry)

u Choose optional upgrades to appliance packages, cabinetry, and more

u Visualize the home in 3-D, while “walking through” each room

u Have full transparency into pricing - all upgrades and color palette options

u Link through to product websites to understand every detail

u Send design to Blu, developer, or family and friends

Blu’s proprietary site design allows customers to:

u Visualize their site with topography, in 3-D on Google Earth

u Design a “compound” or configuration with their Blu home, garage, and optional decking or trellis package

u Understand the site orientation in terms of solar exposure, views, and wind patterns

Blu Benefits | Unique Customer-Controlled Design Tools

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Blu Benefits | Precision-Built Quality

Blu builds to a level of quality simply unattainable in site built

construction. Our buildings are precision-built, engineered, and

incredibly durable.

Precision-engineered steel of extreme strength allows Blu buildings

to have uniquely high ceilings, beautiful wide open spaces, and

soaring glass walls as well as unmatched resistance to high seismic,

snow loads, wind zones, and other challenging environments.

Up to 16’ high ceilings

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Sample Energy Costs of a 48’ Blu | Element vs a Similarly-sized Existing, Energy-compliant Home

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$300

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$900

$1200

Annual Energy Cost

Existing Energy-Compliant Home

48' Blu | Element

Sample Energy Costs of a 36’ Blu | Element vs a Similarly-sized Existing, Energy-compliant Home

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$300

$600

$900

$1200

AnnualEnergy Cost

Existing Energy-Compliant Home

36' Blu | Element

Sample Area: Worcester, Mass.

Clients save $7,000+ per home over 10 years in energy costs

Blu Benefits | Energy Savings

Blu uses exceptional high tech energy systems

u High-performing insulation and high

efficiency, gas-filled windows help self-

regulate the interior home climate

u Innovative 3-D modeling technology to

optimize the sun, wind, and weather patterns

specific to a particular building site

u Energy-saving products and appliances

u Optional solar integration for high efficiency or even "Net Zero" homes!

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Blu Benefits | Healthy and Green Materials, Finishes and Systems

HealthyEnvironment

WaterConservation

EnergyEfficiency

EcoMaterials

SmartDesign

Bamboo, forest stewardship council (FSC), and reclaimed wood flooring options

Interior eco-friendly paint primer

Factory built home ensures quality and a controlled environment that keeps

moisture and mold out

Andersen window and door configurations allow for abundant natural light, and contain recycled content wood fiber and glass

Facades designed based on specific orientation for passive solar siting

Radiant flooring and mini splits with high seasonal energy

efficiency rating (SEER)

Energy efficient CFL and LED lighting options available

Structural and light steel are up to 77% recycled

Steel frame has the highest strength to weight ratio, produces less waste (2% vs. 20% for lumber) and is recyclable

Rigid foam provides a tight air seal and radiant barrier

Low flow fixtures for water efficiency

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Blu | Case Studies

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Hudson, New York

The developer for this property in Hudson, New

York feels a strong connection with his land and

wants to conserve the majority of it. Buyers will

escape the buzz of New York City to a private,

protected retreat.

Four lots on a rise provide expansive views of

the conservation area as well as the Catskills in

the distance. The other two lots, nestled into the

foothills, are perfect for our larger floorplans or

combinations of multiple units.

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Topaz Lake, Nevada

Fairfield Ranch is a seventy-one lot planned

development on the Walker River in Douglas

County, Nevada. The property provides a perfect

year-round getaway. It boasts easy access to fly

fishing and various summer activities and is just an

hour from some of Lake Tahoe’s best ski resorts.

The property is expected to draw buyers from all

over Northern California and Nevada.

Finishes specifically selected for Fairfield Ranch

will offer a rustic, natural look. Cedar siding,

expansive windows, and graceful decks create a

peaceful environment that blends perfectly with

the surrounding land.

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Columbia County, New York

The beauty, peace and comfort of the outdoors

await in Columbia County just two and a half hours

outside of the city. Blu partnered with a developer

committed to providing an escape from the rush

of New York City in the form of eleven lots on 200

acres overlooking the Hudson River Valley.

Blu worked with the landowner to design a beautiful

model Breezehouse, as well as devise plans for

each of the other lots to take full advantage of the

land and views. Even before the model was built,

New York City buyers were clamoring to see the

home sites and find the perfect place to build their

Blu Home.

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FeatureTypical

Stick-built Home

Blu Home

precision-built by factory craftsmen - building homes in a controlled setting for faster construction at a fixed price n n

recycled structural steel - steel frames have up to 77% recycled content n

recycled light gauge metal steel in fill framing - have up to 77% recycled content and resists mold, pests and degradation n n

rigid insulation on exterior - controls your interior climate to your comfort level and saves on energy costs n n

ecofriendly batt insulation - made from 30%+ recycled materials, with no phenol, formaldehyde or acrylics used n n

advanced air filtration sealing - improves indoor air quality n n

structural insulated panels - controls your interior climate to your comfort level and to save on energy costs n n

energy star windows and doors - for a beautiful indoor/outdoor lifestyle with lower energy costs n n

energy / heat recovery ventilator - controls your interior climate to your comfort level and saves on energy n n

radiant heat system - maximizes comfort and reduces indoor allergens n n

Greenguard certified interiors - higher standard of air quality and reduced exposure to harmful chemicals n n

low volatile organic compounds (voc) finishes - better air quality and reduced exposure to harmful chemicals n n

forest stewardship council (FSC) certified or reclaimed wood or bamboo floors - beautiful and environmentally-responsible n n

SFI solid wood cabinet boxes - sourced in accordance with the Sustainable Forestry Initiative and made in the US n n

LEED certifiable - achieves super efficient energy performance n n

optimal site orientation - maximize natural daylight and reduce energy usage n n

solar pv or thermal-ready - we can provide conduit and roof attachments to simplify installation n n

Blu’s Processes and Materials Dramatically Outperform Any Site-built House

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The time to act is now!

u Single family market is recovering

u Buyers regaining their confidence and taking

advantage of low interest rates

u Developers who are ready to build and market

units benefit from pent-up demand

u Financing

– Lender confidence from controlled construction setting, shorter time on site, and proven market appeal

u Blu’s modern technology and national brand

draw many consumers interested in buying a

site for their Blu home

u Integrated sales, design, and construction

processes reduce much of the stress and

management of typical development projects

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Base Pricing Includes u Blu house

u Standard materials and finishes

u Delivery and set on your foundation

u Finishing by our own skilled crew

u All appliances

Other Costs to Consider* u Local Permitting

u Excavation

u Foundation

u Utility hook-ups

u Finish painting

u Decks, garages, driveways, landscaping

* Additional charges may apply based upon geographic location, site-specific conditions and applicable state and local sales tax. Please contact our sales team at build@bluhomes.com for more details. All prices are USD.

† Base pricing contained herein is subject to change at any time. Such changes will be reflected on Blu’s website. For current pricing, see bluhomes.com

Blu charges a premium in the State of California in order to cover additional services and material costs that allow us to better serve our customers. The “California package” includes the following:

•AdditionaldocumentationservicestomeetCalGreenandbasiclocalpermittingrequirements;•Highercranemobilizationfeesatdelivery;•Certaincode-requiredbuildingmaterialssuchassprinklersystemsandadditionalexteriorlights;•Calculationofsite-specificengineeringloadssothatfoundationcostsfromyoursitecontractorwillbereduced

Blu Homes Pricing

Blu is committed to providing the greatest transparency possible on home

pricing. Standard Blu Homes come designed for free. All prices and premiums

are published online, and Blu strives to minimize any extra delivery or building

charges due to difficult sites or engineering requirements. In addition, Blu

builds in its factory, where costs are often a fraction of what they would be on

site. Thus, your home will come fully equipped and set by our Blu team with

appliances, cabinets, countertops, lighting, and floors—all eco-friendly, and

all at a transparent, fixed price.†

ModelStarting Price*

California & Canada Starting Price*

Origin 24 $125,000 $135,000

Origin 36 $150,000 $165,000

Origin 48 $180,000 $200,000

Element 36 $160,000 $175,000

Element 48 $195,000 $215,000

Evolution $295,000 $325,000

Balance $315,000 $345,000

Lofthouse $355,000 $390,000

Glidehouse $385,000 $425,000

Breezehouse $515,000 $565,000

Pod 16 $105,000 $115,000

Pod 24 $120,000 $130,000

Garages $35,500 $39,000

Carports $22,000 $24,000

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East Coast760 Main St. Waltham, MA 02451

1(866) 887-7997

West Coast200 Pine St., Suite 800 San Francisco, CA

1(866) 887-7997

Contact Blu Homes at:

developer@bluhomes.com

Next Steps

Blu Homes can work with developers in a number of

ways. Here are a few steps we typically take:

u Initial conversation to decide whether Blu and

developer project are a good fit

u Preliminary design discussion to envision how Blu

homes will integrate with site concept

u Developer Services or Model/Spec Homes

Agreement signed by developer, expressing desire

to use Blu Homes as primary builder and allowing

Blu Homes to commit design resources and project

management support

u Site layout drawings produced from property

documents (e.g. CAD file) and/or site renderings

created showing model home(s) on developer's site

u Home(s) purchased by developers and designed in

conjunction with Blu’s creative team

Let’s get started!

Want to learn more about collaborating with Blu Homes?

Reach out to us at any of our home offices, or at the email

listed below.

05/29/1228

East Coast760 Main St. Waltham, MA 02451

1(866) 887-7997

West Coast500 Third St., Suite 230 San Francisco, CA 94107

1(866) 887-7997

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760 Main St . , Wal tham, MA | 200 P ine St . , Su i te 800, San Franc i sco , CA760 Main St . , Wal tham, MA | 500 Th i rd St . , San Franc i sco , CA