“Osborne” synergy Chandan Singla: Kyungwon Kim : Sean Lee : Vipasha Dasgupta MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Market Research MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN USEDEMANDRENTINFORMATION Apartments500$3 – 3.5 / Month Highest rent - $6 2/3 housing- rental Condominium250 units – 1BR 1000 units – 2 BR $ psfPipeline – 1500 North point Office100,000 sf/ yr$ psf- gross Advantage- Proximity to MIT, Housing, Synergy R& D Labs200,000 sf/yr$ psf- gross Sound,Stable Market Agglomeration Hotel roomsADR $ No pipeline for next 3 yrs High demand for midscale and extended stay Retail50000 sf$ 40 – 50 psfCater to the adjacent uses

MIT Requirement USES PRESCRIBEDINFORMATION ACADEMIC, RESEARCH, TEACHING, COMMUNITY SPACE 600,000 SF Phasing CONFERENCE FACILITIES1000 PARTICIPANTS PERFORMING ARTS CENTER36,000 SF GRADUATE HOUSING500 Beds – 1 BR, 2 BR MIT Museum, Zeta Psi FraternityRelocated MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

OUR PROGRAM USEREQUIREDPROVIDED ACADEMIC, COMMUNITY 600,000 SF450, SF FACULTY HOUSING92 Units STUDENT HOUSING500 BEDS480, Phased PERFORMING ARTS36,000 SF36000 SF APARTMENTS500 units560 units CONDOMINIUMS units223 units OFFICE100,000 sf/yr sf, Phased R&D LAB200,000 sf/yr sf, Phased HOTEL rooms400 rooms RETAIL50,000 sf43,700 sf, Phased MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

FAR Program Summary FAR: 3.52 (including Shire building), otherwise 3.12 USES:% of total GSF Market AbsorptionPhasing Office19% 503,500300,000 sf/yr2 (60:40) Retail1.61% 43,70050,000 sf2 (40:60) Hotel7% 190, rooms1 (100) R&D-Lab19% 515,200200,000 sf/yr2 (70:30) Residential18% 475, (70:30) Faculty&Student Housing7% 188, beds1 (100) Academic18% 486,800-2 (70:30) Affordable3% 83,970-2 (70:30) Condos8% 223, units1 (100) Total100% 2,710,200 MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Financial Analysis Assumptions : $325 million USES:Ann Gross RentMarket rate Office $50.00Psf $40 – 50psf Retail $45.00Psf $35 – 45psf Hotel $200.00ADR$200 – 300ADR R&D-Lab $65.00psf $60 – 75psf Residential $40.00psf $30 – 36psf Faculty&Student Housing $40.00psf - Academic $40.00psf- Affordable $10.00psf- Condos $700.00Per unit$ per unit * Terminal cap rate: 7.0% MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Deal Structure Forms of entities –MIT holds the ownership of the land –For sales properties, MIT has the first right of purchase & refusal after 75 years of time period (for lease properties, 10 years) –Equity partner and the development split returns pari passu until they reach 12% of the hurdle rate. After that, they go 50:50 for promote Within LLC, MIT and developer split 90:10. DeveloperMIT LLC Equity Partner $345 M The project Cash: $20 M Land: $325 M Equity: 35% Debt : 65% MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

DESIGN CONCEPT SYNERGY –Weaving the development in the fabric of the community –Be sensitive to the community – since MIT is a partner to the Cambridge communities –Create a vibrant community MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Neighborhood RESIDENTIAL R&D & RETAIL TECH SQUARE, MARRIOT INSTITUTIONAL OFFICES & RETAIL R&D MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Retail gateway -- Subway exit /People/Retail/Food court MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Community - Residential Achieving a height which mirrors the residential neighborhood MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Office district with Mass Av address MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Shadow Study 9am MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

3 -d Shadow Study 1 pm MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Shadow Study 5 pm MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

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