RED_SU21_01

CUIMC AUDUBON IV DEVELOPMENT

Investment Memorandum Patrick Kun Chen M.S. Real Estate Development Candidate, 2021 Columbia University

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CUIMC AUDUBON IV DEVELOPMENT • Executive Summary • About Life Plaza Properties • Background • • •

Life Science Industry in New York City The Audubon Biomedical Science and Technology Park City Incentives

• Market: A Blooming Sector in the City • Development Scheme • • •

Zoning and Entitlement Stacking Plan Architectural Synopsis

• Financial Analysis • • • • •

Deal Overview Key Assumptions Return Summary & Sensitivity Cash Flow Summary Capital Structure

• Risks and Mitigation • Appendix

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Executive Summary

Life Plaza Properties, as a leading developer in the life science arena, is pleased to present the investment proposal of CUIMC Audubon IV Development. The project, located in 3960 Broadway, provides the opportunity to capture the robust growth of the life science industry in New York City by developing a high-quality research and innovation facility preanchored by Columbia Medical School and its affiliates. In partnership with Columbia, the development is a build-to-suit project with significant financial profitability and limited risk.

Hosting highly dynamic and collaborative environment for future life science innovation, the brand-new building will have three levels below grade, 15 stories above grade, comprising approximately 280k GSF/170K RSF with LEED Gold V4 Certificate. It will be home to CUIMC’s research facilities, commercial labs and an incubator for mid to small scale start-ups.

LPP is seeking equity partner to form a join venture to create a life-science flagship for future collaboration and innovation. The project will be funded by $111M equity and 60% LTC leverage, totaling $278M investment. With Columbia University contributing ground lease and occupancy promise, the project will be able to make profit out of the low land tenure cost and the partner’s outstanding credit. LPP expect to earn a 17.47% levered IRR/2.10x EM after a 5-year development and hold.

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Life | Science | Real Estate Our mission is to DELIVER space solutions for innovators. CREATE value for our investors. PROVIDE economic benefit to our local communities through our capital intensive, environmentally responsible development projects.

ABOUT LIFE PLAZA PROPERTIES Life Plaza Properties (LPP), is a long-tenured, and pioneering owner, operator, and developer uniquely focused on collaborative life science and technology in AAA innovation cluster locations.

Founded in 1996, LPP pioneered this niche and has since established a significant market presence in key locations, including New York City, Greater Boston, San Francisco, San Diego, Seattle, Maryland, and Research Triangle. LPP has a longstanding and proven track record of developing Class A properties clustered in urban life science, technology, and research campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. LPP also provides strategic capital to transformative life science, technology, and R&D companies through our venture capital arm.

Background: Life Science Industry in New York City The life sciences are a collection of industry segments that are interrelated by a common commitment to improving human health and highlights cooperation, innovation and knowledge sharing. New York’s life sciences industry has performed exceptionally well during the COVID-19 pandemic and is becoming a significant source of job creation and business formation.

The growing performance has been supported by the unprecedented investment from both public and private sectors. Mayor Bill de Blasio announced additional $500 million into life sciences development in June 2021, bringing total investment up to $1 billion and signaling more expansion to come. The New York City metro area attracted $2.9 billion from NIH funding in 2020, also an all-time high. What’s more, private investors poured a record $2.3 billion into New York state life sciences companies between October 1, 2019 and September 30, 2020—nearly triple the $820 million invested the previous year.

Robust private and public investment has pushed the expansion of the city’s commercial life sciences sector, which has produced new highs in economic output, employment and business creation in recent years.

The city’s life sciences industry recorded a 9% growth over 2019 in a year where the citywide GCP declined by 4% due to the pandemic. Life sciences GCP has increased 4% annually since 2016, outperforming the average citywide growth of 3%.

Employment in the city’s life sciences industry has been strong since 2016. It has increased 31% since 2010 to 16,000 in 2020 with a growth rate at 3.6% annually. And the jobs in life science increase by 9% between 2018 and 2019 with the need for space escalating as well.

New businesses of the industry are forming at an increasing speed, signaling growing confidence in the city as a destination for life sciences activity. And more of the city’s established startups are maturing into commercially sustainable businesses and landing large funding rounds.

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Background: Life Science Industry in New York City

NYC LIFE SCIENCE ECOSYSTEM IS IN GROWTH MODE

An increase in startups, VC’s and applied research organizations, and interest from new players

A VIBRANT AND SUSTAINABLE INDUSTRY WITH STEADY DEMAND FOR SPACE

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Background: The Audubon Biomedical Science and Technology Park

In cooperation with the city and state, CUIMC built New York City’s first universityrelated research park—housing the only biotechnology business incubator in the city: The Audubon Biomedical Science and Technology Park. The research park is aimed to supply the structure and organization to facilitate developments in biotechnology that will ensure improved health care, while contributing to economic growth through the creation of private sector research collaborations and the generation of new biomedically related business. CUMC has over 4 million sf of space and is home to more than 4,000 faculty and research scientists.

The complex on CUIMC's eastern border is currently made up of 3 research buildings, with sites and plans for 2 more facilities, the park will consist of over 600,000sf of research laboratory space and 1 million sf of overall usable space upon completion. Additionally, the biomedical science and technology park is located within the Upper Manhattan Empowerment Zone, meaning special funding is available for businesses starting or relocating there.

The current research park facilities include three buildings: Mary Woodard Lasker Biomedical Research Building (containing the Audubon Business and Technology Center incubator), Russ Berrie Medical Science Pavilion and Irving Cancer Research Center.

Site 4 in the right map drawing will be the future 281K GSF Audubon IV development, and Site 5, next to Russ Berrie, will be another academic research building with appx. 237k GSF. 7

Background: The Audubon Biomedical Science and Technology Park The Russ Berrie Medical Science Pavilion was the second addition to the research park, comprising 175,000 GSF, with laboratories making up 6 of its 8 floors. It is home to the following Columbia affiliates: The Naomi Berrie Diabetes Center, The Institute of Cancer Genetics, Columbia Genome Center and Associates in Internal Medicine Clinic

The Irving Cancer Research Center was recently added to the cluster in 2005 to expand the biomedical research arm of the Herbert Irving Comprehensive Cancer Center at CUIMC. At 304,000 GSF, 9 of its 13 floors are made up of research laboratories.

The Mary Woodard Lasker Biomedical Research Building (Lasker Building) is a commercial laboratory facility and first building of the Columbia research park. Opened in 1995, the 100,000 GSF building houses Audubon Business and Technology Center, a life science startup incubator. There are 13 biotech tenants and 4 retail tenants in the building, creating 600 local jobs. It is attached to the renovated historic Audubon Ballroom (run by the city).

L-R: Berrie Medical Science Pavilion, Irving Cancer Research Center, Lasker Building (with Audubon Ballroom) Source: Davis Brody Bond

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Background: City Incentives

The NYCIDA Life Sciences Program provides life sciences companies and developers of related space with a range of tax benefits—to support the creation of good jobs and the growth of the life sciences industry in NYC. The program offers: • Real estate tax reductions • Mortgage recording tax reduction • Sales tax exemptions

Property Taxes Land and building taxes may be abated for a term determined by NYCIDA necessary to incentivize the development of life sciences space. A phase-out of the benefit begins four years prior to the last year of the term and increases by 20 percent until the taxes are increased to the full amounts.

Sales Tax The 8.875 percent sales tax on materials used to construct, renovate, or equip facilities may be waived.

Mortgage Recording Tax Mortgage recording tax relating to the project's financing may be reduced.

Source: NYCEDC - https://edc.nyc/program/ida-life-sciences-program 9

Market: A Blooming Sector in the City

In the heart of the northeast corridor, New York City is home to a largest concentration of medical academic institutions, including Columbia University Irving Medical Center (CUIMC). And the proximity to the prestigious research and innovative cluster has always been highly valued by the leading developer and operators of the sector. The footprint of life science facilities of the city also shows clear concentration adjacent to academic and research hubs.

Looking at the market, the sector has gained momentum since 2020 and it does not seem rest. NYC’s lab leasing activity has already reached a record high for a single year, at 257,000 SF through May 2021. According to CBRE, occupancy-ready, pre-built lab space in NYC remains in short supply and high demand. Current inventory for Lab/R&B in the city is 1.87MSF with 1.9 MSF under construction. The unmet demand is recorded to be 1.12MSF, 32.6% upside in 9-month. The total vacancy city-wide is 25.7% as of H1 2021, which is anticipated to be affected by the new deliverables in outer boroughs.

The Manhattan submarket is taking undoubtful lead, with 91% occupancy for all LS space and zero vacancy for pre-built lab space. In the meantime, Manhattan office vacancy rate reaches 18.3%, showing very contrary dynamics toward the LS space.

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Market: A Blooming Sector in the City

According to BCG analysis, the current unmet demand is mostly for Class B space close to academic institutions to host venture-backed start-ups. Such tenants will prefer premises with flexible size and lease terms and can be ready to move-in in a short time. The growth of the ecosystem would continue to put pressure on the supply of all types of space.

The Audubon IV Development is uniquely positioned to capture the surging growth of the life science industry in New York City. With growing initiatives and funds from both public and private departments, the demand for space will mount up as the industry expands in capital raising, employment, and entrepreneurship. The lease-up risk is generally offset by the Columbia University anchoring 49%, and the prestigious academic institution will bring in the other tenant to join the research community and take up market-rate space.

Also, the pre-built incubator space can not only meet the urgent demand for small business but also support the whole micro-ecosystem by placing common space and amenities in the property.

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Market: A Blooming Sector in the City Life science sector leaders are placing more exposure in the budding market. According to Alexandria’s FY20 annual report, there are two New York properties in their portfolio and they were 99.4% occupied with $72.24 rent PSF. Particularly, New York University is paying $95.4 PSF for their 204k SF premise in Alexandria Center on E 29th St. The $184M redevelopment project, Alexandria Center @ LIC, is expecting 5.5% yield upon completion. Alexandria also owns 122k SF under construction and 136k near term pipeline, planning to build a totaling 1,3MSF portfolio in the city.

Development Case Alexandria center FOR LIFE SCIENCE 430 East 29th Street Strategically located along Manhattan's East Side Medical Corridor, The Alexandria Center™ capitalizes on its proximity to the City's top academic, medical institutions and major hospitals. Upon completion of the North Tower will provide 1.3 million-square-feet of first-class office and laboratory space in a campus setting designed to foster cross-institutional collaboration.

Alexandria Real Estate Equities has completed construction of the first two towers, which includes a winter garden, restaurant, café, conference center, and several floors of laboratories and office space. Over 50 tenants are currently occupying space at both facilities including Bristol-Myers Squibb (NYC HQ), Eli Lilly, Accelerator Life Science Partners, Intracellular Therapies, Kallyope, MeiraGTx, and Cellectis in the West Tower. Tenants in the East Tower include Pfizer's Center for Therapeutic Innovation, NYU Langone, Petra Pharma, BlueRock Therapeutics, and Kadmon.

Street Address 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street Subtotal

Transaction Quarter 2012 - Q3 2016 - Q1 2017 - Q4 2017 - Q3 2018 - Q4 2018 - Q4 2018 - Q4 2020 - Q3 2020 - Q3

Tenant Name Roche Rocket Pharmaceuticals Bristol-Myers Squibb Prevail Therapeutics Prevail Therapeutics Prevail Therapeutics Prevail Therapeutics Opentrons Cellectis

Effective Rent 96.36 98.11 81.30 98.35 108.55 86.27 109.65 91 85.95 95.06

Rent Bump Floors Occupied Entire 15-16 3.0% /1y Partial 10 2.5% /1y 3.5% /1y Partial 9 3.5% /1y Partial 6 3.5% /1y Partial 15 3.5% /1y Partial 9 Entire 12 Partial 8

Lease Term 11 years 5 years,3 months 10 years,7 months 4 years,1 months 6 years,4 months 6 years,4 months 3 years,3 months 1 years 10 years,4 months 6 years,5 months

Expiration Date 2024-01-01 2021-07-31 2028-11-30 2021-10-31 2025-01-31 2025-01-31 2025-01-31 2021-12-15 2031-03-01

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Development Scheme: Zoning & Entitlement Zoning Summary Address Zoning district(s) Lot type Lot Area (sf) Land Use Commercial FAR Community Facility FAR Commercial ZSF Community Facility ZSF Lot Coverage Parking Requirment Existing SF

Block 2124 | Lot 43 3940 BROADWAY, 10032 C6-2 Whole parcel 42,856 Commercial 6.0 6.5 257,136 21,428 N/A N/A 126,744

The site is zoned under C6-2 District to develop high-density commercial uses outside of central business districts. The commercial FAR for the site is 6.0, representing 257,136 ZSF, and there is a 6.5 bonus FAR with additional 21,428 community facility. There are two existing building standing on the site, Mary Woodard Lasker Biomedical Research building (Lasker Building) and The Malcolm X & Dr. Betty Shabazz Memorial and Educational Center they leave the future Audubon IV development ~167,000 ZSF to build on a ~20,000 SF site according to the REFI. Yet not clear about the area of community facility already built in the existing building, the team plans to offer ground floor retail as a pleasant addition to the Washington Heights serving CUIMC and other community members.

The primary and only constraint towards the building envelop is the Basic Sky Exposure Plane starting from 85’/6th floor above grade. No parking space required but the facility is essential to the operation of the research complex as per REFI illustration. Hence, the current parking program will be placed back into the new development. CU has stated that rezoning attempts is not encouraged hence the development will be designed within the current zoning framework.

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Development Scheme: Zoning & Entitlement

Ground Lease Calculation Ground Lease Valuation Ground Lease Expiration Ground Rent Payment Remaining Term

$

yrs

500,000 3/31/2094 $21,196 72

The Site is City-owned, and CU has approximately 72 years remaining (when the project commencing in 2022) on a long-term ground lease (the City Lease) for the property.

The Lease includes the Lasker Building, the Site, and Additional Parcel II, also known as the Alianza Building, located at 1112 St Nicholas Ave. The City Lease between CU and the City through the New York City Economic Development Corporation (NYCEDC) contemplates the development of new buildings to foster the growth of the biomedical industry in New York City adjacent to a major scientific and medical center, including the incubation of new businesses. It is intended that Audubon IV will be developed in line with those goals.

The value of the ground lease is estimated, by a reliable source, to be $0.5M. With CU’s discount rate at 4%, we understand the annual payment of the ground rent will be $21,196. The development will require approval by NYCEDC. 14

Development Scheme: Staking Plan

Commercial Lab/R&D Incubator Commercial Lab/R&D (CU ROFO) CUIMC Space Lobby / Retail Commercial Parking

CU provides an illustrative guideline about their requirement on the space and the programming. The New Building was anticipated to have three levels below grade, 15 stories above grade, comprising approximately 281,400 SF. And CUIMC will expect the occupancy of 90,000 SF from the lower part of the building with 30,000 SF neat-term expansion option by late 2023. There will be a shared loading area on the ground floor between the New Building ang the Lasker Building and the two structure is supposed to be connected by a link bridge on the 6th floor.

The demo massing we purpose comprise 279,590 SF and is supposed to offer 169,535 rentable SF. The loading factor will be slightly higher than usual office buildings but that’s acceptable due to the sophisticated requirement of the cutting-edge research facilities. Upon completion of the project, Columbia will take up 80,150 RSF from the 2nd through 6th floor where the New building will be linked to the Lasker Building. And Columbia will also claim a ROFO over the 25,332 RSF premise on the 8th and 9th floor after the first commercial lease expires.

Area Instruction

Floors LL3 LL2 LL2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Type Mechanical Parking Parking Entrance/Lobby/Dry/Research Wet Lab Wet Lab Vivarium Wet Lab Core Share Facilities Mechanical Step Out Space Step Out Space Incubator Sapce Wet Lab Wet Lab Dry Lab Dry Lab Mechanical Building Total

ZSF Break Down Gross Area Wet Lab Lab Support Offices ICM 10,000 19,300 19,300 19,300 19,300 19,300 19,300 19,300 19,300 14,000 14,000 14,000 14,000 14,000 14,000 11,000 11,000 11,000 281,400

Core

ZSF Total

Mech

NASF

Usable

Rentable

10,000

5,975 5,975

4,004 4,004

8,122 2,581 2,581

5,975

4,004

2,581

3,535 3,535 3,535 3,535 3,535 2,361 2,361

3,614 3,614 3,614 3,614 3,614 2,443 2,443

1,628 1,628 1,628 1,628 1,628 1,350 1,350

40,322

34,968

26,705

12,560

12,560

4,033 3,180 3,180 3,180 3,180

12,155 15,740 15,740 15,740 15,740

5,504 2,246 2,246 2,246 2,246

944 2,847 2,847 2,847 2,847 2,847 2,949 2,949 300 38,130

944 11,624 11,624 11,624 11,624 11,624 9,103 9,103 300 152,685

13,056 1,357 1,357 1,357 1,357 1,357 1,357 1,357 10,500 57,543

8,122 12,560 12,560 12,560 12,560

9,763 14,669 14,669 14,669 14,669 16,915

8,122 16,915 16,915 16,915 16,915 19,300

8,777 8,777 8,777 8,777 8,777 6,154 6,154

10,508 10,508 10,508 10,508 10,508 7,431 7,431

11,865 11,865 11,865 11,865 11,865 8,788 8,788

114,555

152,755

171,982

Envelope 10,000 19,983 19,983 17,305 17,954 18,911 18,911 18,911 18,911 15,732 15,732 15,732 15,732 15,732 15,732 12,607 12,607 12,607

Massing Effective 95% 10,000 19,300 19,300 16,440 17,056 17,965 17,965 17,965 17,965 14,945 14,945 14,945 14,945 14,945 14,945 11,977 11,977 11,977 279,560

RSF

6,918 14,949 15,745 15,745 15,745 17,965 12,666 12,666 12,666 12,666 12,666 9,569 9,569 169,535

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Development Scheme: Architectural Synopsis

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Development Scheme: Architectural Synopsis

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Financial Analysis: Deal Overview

A life-science flagship for collaboration and innovation

5-year

Held 2022- 2027

6.25%

$111M Equity Invested

0%

60%

Leverage / LTC

49.3%

Stabilized YoC

Real Estate Tax by city incentive program

Pre-leased to CUIMC

17.47%

2.10x

$122M

Equity IRR

Equity Multiple

Dollar Profit

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Financial Analysis: Key Assumptions CU Discount Rate Develop Discount Rate Inflation

4% 6.50% 2.50%

Project Overview Project Name Address Property Type Deal Type Title Lot Area ZSF Stories Program Office/Lab Ground Floor/Retail Underground Parking Mechanical Total Expected Loss Factor Parking Space

CUIMC AUDUBON IV DEVELOPMENT 3960 Broadway, New York, NY 10032 Office/Lab Ground-up Development City Ground Lease 42,856 152,685 15+3 GFA RSF 187,598 162,617 16,440 6,918 38,600 36,922 279,560 169,535 33.39% 0.68 per 1kRSF 115

Inverstment Assumptions Ground Lease Valuation Ground Lease Expiration Ground Rent Payment Remaining Term Entry Date Holding Period Exit Date Total Development Budget Stablized NOI Stablized Yield Exit Cap Sales Cost Reversionary Value

$

yrs months $995 PSF $ $

$1,533 PSF $

500,000 3/31/2094 $21,196 72 3/31/2022 60 3/31/2027 278,065,114 17,378,009 6.25% 4.50% 3.00% 428,623,776

$

Development Assumptions Development Budget Pre-development Hard Costs Soft Costs Developer Fee Total Construction Cost Financing Costs Interest Reserve Total Development Budget Schedule Pre Development Entry Soft Cost Hard Cost Below Grade Construction Above Grade Construction

Construction Lease Downtime Stablization Total Holding Period

$ $ $ $ $ $ $ $

3,503,620 90 $995 $ Amount 750,000 220,448,749 31,346,153 10,071,796 262,616,698 3,503,620 11,944,795 278,065,114

$PSF $2.68 $788.56 $112.13 $36.03 $939.39 $12.53 $42.73 $994.65

% of Total 0.3% 79.3% 11.3% 3.6% 94.4% 1.3% 4.3% 100.0%

Start Period 9/30/2021

Duration 6 months

4/1/2022 5/1/2024 5/1/2024 5/1/2025 4/1/2022 5/1/2024 2/1/2025 3/31/2022

25 months 24 months 12 months 12 months 25 months 9 months 26 months 60 months

End Period 3/31/2022 3/31/2022 4/30/2024 4/30/2026 4/30/2025 4/30/2026 4/30/2024 1/31/2025 3/31/2027 3/31/2027

Operation Assumptions Insurance Real Estate Tax Management Fee CapEx Reserve

PSF $ PSF $ of EGI of NOI

0.75 2.50% 10%

Details see rent rolls

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Financial Analysis: Equity & Debt Assumptions General Partner

Equity Structure

Limited Partners

Joint Venture

10% Co-investing

Exit by Ownership Transfer

Next Buyer

90% Contribution $111M Equity

$166M Construction Loan

90% $ 10% $ $

100,143,183 11,127,020 111,270,203

New Ownership New Ownership

AUDUBON IV LLC.

Waterfall Tier 1 Tier 2 Tier 3

(Special Purpose Entity)

Bank

LP Contribution GP Contribution Total Contribution

$279M Development Investment

Hurdle 10% 14%

Investors 100% 80% 50%

Promote 0% 20% 50%

$PSF 398.02 596.79 994.81

% of Total 40.0% 60.0% 100.0%

994.65 0.16 994.81

100.0% 0.0% 100.0%

The Property

Financing Assumptions Construction Loan - Floater Interest Rate L+ 3.50% LIBOR Floor 1.00% LIBOR Cap 1.50% Term months 60 LTC 60% Loan Amount $166,839,068 Debt Maturity 3/31/2027 Interest Reserve $ 11,944,795

Origination Fee Mortgage Recording Tax Brokerage Fee Title Insurance Legal/Diligence/Closing Exit Fee 11944794.97

1.00% 0.00% 0.45% 0.15% 0.50% 0.50%

Sources & Uses Construction Loan Sources Equity Total Construction Loan Total Sources

$ $ $

$ Amount 111,270,203 $ 166,839,068 $ 278,109,271 $

Uses Total Development Budget Ground Rent during Construction Total Uses

$ $ $

278,065,114 $ 44,157 $ 278,109,271 $

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Financial Analysis: Return Summary & Sensitivity Return Summary

Sensitivity Analysis

Holding Period Unlevered IRR Unlevered MOIC Levered IRR Levered MOIC Equity Invested Profit Stabilized YoC Stabilized NOI Margin Avg. YoC(after completion) LP IRR LP MOIC GP IRR GP MOIC

60 months 13.20% 1.61x 17.47% 2.10x $ $

111,270,203 122,076,008 6.25% 79.12% 5.52% 16.52% 1.88x 40.46% 4.09x

Exit Cap & Holding Period Levered Return 17.47% / 2.10x 4.00% 4.25% 4.50% 4.75% 5.00%

9/30/2025 42 months 24.01% / 1.99x 19.07% / 1.74x 14.27% / 1.53x 9.56% / 1.34x 4.90% / 1.16x

3/31/2026 48 months 26.58% / 2.36x 22.95% / 2.12x 19.46% / 1.91x 16.08% / 1.72x 12.80% / 1.55x

9/30/2026 54 months 24.38% / 2.46x 21.31% / 2.22x 18.36% / 2.01x 15.50% / 1.81x 12.72% / 1.64x

3/31/2027 60 months 22.67% / 2.56x 20.02% / 2.32x 17.47% / 2.10x 15.01% / 1.90x 12.60% / 1.72x

3/31/2029 84 months 15.99% / 2.36x 14.16% / 2.13x 12.36% / 1.93x 10.57% / 1.74x 8.68% / 1.59x

3/31/2032 120 months 16.96% / 3.43x 15.93% / 3.15x 14.93% / 2.90x 13.96% / 2.67x 12.76% / 2.50x

Constrution Period & Cost Levered Return $ 17.47% / 2.10x $ 22 months 25 months 28 months 31 months 33 months

264,087,104 $ 944.65 22.22% / 2.51x 19.98% / 2.31x 19.65% / 2.28x 19.62% / 2.26x 19.08% / 2.22x

271,076,109 $ $969.65 20.97% / 2.40x 18.72% / 2.20x 18.38% / 2.17x 18.34% / 2.15x 17.78% / 2.11x

278,065,114 $ $994.65 19.74% / 2.29x 17.47% / 2.10x 17.12% / 2.06x 17.08% / 2.05x 16.51% / 2.01x

285,054,119 $ $1,019.65 18.54% / 2.19x 16.24% / 2.00x 15.88% / 1.97x 15.84% / 1.95x 15.26% / 1.91x

292,043,124 $ $1,044.65 17.35% / 2.09x 15.02% / 1.90x 14.66% / 1.87x 14.61% / 1.86x 14.02% / 1.82x

299,032,129 $1,069.65 16.18% / 1.99x 13.82% / 1.81x 13.44% / 1.78x 13.39% / 1.77x 12.79% / 1.73x

Construction Loan LTC & Interest Rate(Margin) Levered Return 17.47% / 2.10x L+3.00% 50% 17.30% / 2.03x 55% 17.83% / 2.10x 60% 18.43% / 2.17x 65% 19.18% / 2.26x 70% 20.15% / 2.37x

L+3.25% 17.02% / 2.02x 17.44% / 2.07x 17.95% / 2.13x 18.59% / 2.21x 19.42% / 2.31x

L+3.50% 16.70% / 1.99x 17.05% / 2.04x 17.48% / 2.10x 18.01% / 2.17x 18.69% / 2.25x

L+3.75% 16.38% / 1.97x 16.66% / 2.01x 16.99% / 2.06x 17.40% / 2.12x 17.94% / 2.19x

L+4.00% 16.05% / 1.95x 16.25% / 1.98x 16.49% / 2.02x 16.78% / 2.07x 17.12% / 2.12x

L+4.25% 15.72% / 1.93x 15.84% / 1.95x 15.98% / 1.99x 16.13% / 2.02x 16.25% / 2.05x

CU Starting Rent & Growth Rate Levered Return 17.47% / 2.10x 2.75% $ 80.0 14.93% / 1.90x $ 85.0 16.03% / 1.98x $ 90.0 17.10% / 2.07x $ 95.0 18.13% / 2.15x $ 100.0 19.13% / 2.24x

3.00% 15.05% / 1.91x 16.15% / 1.99x 17.22% / 2.08x 18.26% / 2.16x 19.26% / 2.25x

3.25% 15.17% / 1.92x 16.28% / 2.00x 17.35% / 2.09x 18.39% / 2.17x 19.39% / 2.26x

3.50% 15.29% / 1.92x 16.40% / 2.01x 17.47% / 2.10x 18.52% / 2.18x 19.53% / 2.27x

3.75% 15.41% / 1.93x 16.52% / 2.02x 17.60% / 2.11x 18.64% / 2.19x 19.66% / 2.28x

4.00% 15.53% / 1.94x 16.64% / 2.03x 17.73% / 2.12x 18.77% / 2.21x 19.79% / 2.29x

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Financial Analysis: Annual Cash Flow - 5-yr Hold Year Month Ending Date

0 0 3/31/2022

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

4 48 3/31/2026

5 60 3/31/2027

Potential Gross Income Rent Abatment Total Recoveries Lease Downtime Vacancy & Credit Loss Effective Gross Income

$ $ $ $ $ $

63,216,837 (4,203,505) 8,309,932 (3,298,304) (4,745,585) 59,279,373

$ $ $ $ $ $

-

$ $ $ $ $ $

-

$ $ $ $ $ $

-

$ $ $ $ $ $

19,210,646 (3,444,896) 2,521,364 (3,298,304) (1,085,659) 13,903,151

$ $ $ $ $ $

21,646,746 (758,610) 2,845,293 (1,769,832) 21,963,597

$ $ $ $ $ $

22,359,445 2,943,275 (1,890,095) 23,412,625

Operating Expenses Management Fee Insurance Real Estate Tax Total Operating Expense

$ $ $ $ $

(11,406,953) (1,481,984) (380,474) (13,269,412)

$ $ $ $ $

-

$ $ $ $ $

-

$ $ $ $ $

-

$ $ $ $ $

(3,470,114) (347,579) (116,556) (3,934,248)

$ $ $ $ $

(3,906,168) (549,090) (130,330) (4,585,588)

$ $ $ $ $

(4,030,672) (585,316) (133,589) (4,749,576)

Net Operating Income NOI Margin Growth Yield on Cost

$

46,009,961

$

17,378,009 $ 79.1% 74.3% 6.2%

18,663,049 79.7% 7.4% 6.7%

Tenant Improvement Leasing Commission CapEx Reserve Total CapEx

$ $ $ $

(4,759,403) (3,345,598) (4,600,996) (12,705,997)

$ $ $ $

-

$ $ $ $

-

$ $ $ $

-

$ $ $ $

$ $ $ $

(1,737,801) (1,737,801)

$ $ $ $

(1,866,305) (1,866,305)

Property Cash Flow

$

33,303,964

$

-

$

-

$

-

$

$

15,640,208

$

16,796,744

Ground Rent Payment Total Construction Cost Reversionary Price Transaction Cost Sales Proceeds

$ $

(105,978) (278,065,114)

$ $ $ $ $

-

$ $ $ $ $

$ $ $ $ $

(21,196) 428,623,776 (12,858,713) 415,765,063

Unlevered Total Cash Flow

$

170,897,935

$

$

432,540,612

$

13.20% 1.61x 170,897,935

Unlevered Ratio IRR MOIC Profit

$ 0.0% 0.0% 0.0%

(0) $

$ 0.0% 0.0% 0.0%

(21,196) (133,471,255) -

$ $ $ $ $

(133,492,450) $

$ 0.0% 0.0% 0.0%

(21,196) (133,471,255) -

$ $ $ $ $

(133,492,450) $

9,968,903 $ 71.7% 0.0% 3.6% (4,759,403) (3,345,598) (996,890) (9,101,891) 867,011 (21,196) (11,122,605) -

$ $ $ $ $

(10,276,789) $

(21,196) 15,619,013

22

Financial Analysis: Annual Cash Flow - 5-yr Hold Year Month Ending Date

0 0 3/31/2022

Unlevered Total Cash Flow

$

170,897,935

$

Construction Loan Financial Cost Interest Reserve Loan Draw Interest Payoff Balance Payoff Exit Fee

$ $ $ $ $ $

(3,503,620) (11,944,795) 183,406,536 (20,594,522) (195,351,331) (834,195)

$ $ $ $ $ $

Permanent Loan Loan Balance Debt Service Refi Cost

$ $

Levered Total Cash Flow

$

122,076,008

$

17.47% 2.10x 122,076,008

Levered Ratio IRR MOIC Profit

-

$ $ $ $

(0) $

(3,503,620) (11,944,795) -

-

$ $ $ $ $ $

$ $ $

(15,448,415) $

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

(133,492,450) $

(133,492,450) $

(10,276,789) $

37,670,663 -

-

$ $ $ $ $ $

133,492,450 -

$ $ $ $ $ $

12,243,423 (1,530,042) -

4 48 3/31/2026

$ $ $ $ $ $

$ $ $

-

$ $ $

-

$ $ $

(95,821,787) $

-

$

436,592 $

15,619,013

(9,376,975) -

-

5 60 3/31/2027 $

432,540,612

$ $ $ $ $ $

(9,687,505) (195,351,331) (834,195)

$ $ $

6,242,038 $

226,667,581

23

Financial Analysis: JV Waterfall Year Month Ending Date Levered Total Cash Flow JV CF Contribution Tier 1 Distribution Tier 2 Distribution Tier 3 Distribution Total JV CF JV Return IRR MOIC Profit Promote Tier 1 Promote Tier 2 Promote Tier 3 Promote Total Promote LP CF Contribution Tier 1 Distribution Tier 2 Distribution Tier 3 Distribution Total LP CF LP Return IRR MOIC Profit GP CF Contribution Tier 1 Distribution+Promote Tier 2 Distribution+Promote Tier 3 Distribution+Promote Total GP CF GP Return IRR MOIC Profit

0 0 3/31/2022

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

4 48 3/31/2026

5 60 3/31/2027

$

122,076,008

$

(15,448,415) $

(95,821,787) $

-

$

436,592 $

6,242,038 $

226,667,581

$ $ $ $ $

(111,270,203) 164,499,754 26,148,130 18,080,647 97,458,329

$ $ $ $ $

(15,448,415) (15,448,415)

(95,821,787) (95,821,787)

$ $ $ $ $

-

$ $ $ $ $

436,592 436,592

6,242,038 6,242,038

$ $ $ $ $

157,821,124 26,148,130 18,080,647 202,049,901

$

16.52% 1.88x 97,458,329

$ $ $ $

6,537,033 18,080,647 24,617,679

$ $ $ $

$ $ $ $

-

$ $ $ $

$ $ $ $

6,537,033 18,080,647 24,617,679

$ $ $ $ $

(100,143,183) 148,049,779 23,533,317 16,272,582 87,712,496

$ $ $ $ $

(13,903,574) (13,903,574)

$ $ $ $ $

(86,239,609) (86,239,609)

$ $ $ $ $

-

$ $ $ $ $

392,933 392,933

$ $ $ $ $

5,617,834 5,617,834

$ $ $ $ $

142,039,012 23,533,317 16,272,582 181,844,911

$

16.52% 1.88x 87,712,496

$ $ $ $ $

(11,127,020) 16,449,975 9,151,846 19,888,711 34,363,512

$ $ $ $ $

(1,544,842) (1,544,842)

$ $ $ $ $

(9,582,179) (9,582,179)

$ $ $ $ $

-

$ $ $ $ $

43,659 43,659

$ $ $ $ $

624,204 624,204

$ $ $ $ $

15,782,112 9,151,846 19,888,711 44,822,669

$

40.46% 4.09x 34,363,512

-

$ $ $ $ $

$ $ $ $

-

-

$ $ $ $ $

$ $ $ $

-

24

Capital and Deal Structure NYCEDC

Ground Lease

Ground Lessor

Columbia University

Limited Partnership

LPP “The Developer”

General Partner

Joint Venture

Ground Lessee

Limited Partners

Ownership Transfer by Equity Transaction After holding Period

Next Buyer

Ownership

Ground Leasehold

Sublease Sublessee

AUDUBON IV LLC. (Special Purpose Entity)

New Ownership

Develop& Hold

The Property

Bank Collateral (if applicable)

Potential Investors

25

Risk and Mitigation Inflation Risk

Construction Risk

The construction industry is currently experiencing an unprecedented mix of steeply rising materials prices, snarled supply chains, and staffing difficulties. According to the sensitivity analysis, $25 PSF/$6.6M increase in development cost will result in return going down ~125 basic points.

Recent surging inflation and the added construction cost will negatively impact the profitability of the project.

Common construction risk includes project approval & permits, design/technical issues, budget/cost overruns, schedule overdue and safety concerns.

Mitigation • Apply 3% inflation rate on recent rate to estimate the budget/rent in the next two years • Quote an average inflation of 2.5% in the underwriting • Reserve $10M contingency in hard cost budget which represents 4% of total cost

Mitigation • Coordinate closely with the City, CU and all the venders to manage the risk in project delivering process • Introduce cutting-edge construction management tool, such as OPENSPACE® products, to improve construction efficiency and safety • Hire responsible GC experienced in life science and use risk insurance

Leasing Risk

Exit Risk

One of the project highlights is CU promising to take up around 50% of the rentable area, diminish the overall leasing risk. And the prosperous market is also indicating a good leasing outlook. However, the fundamental risk residing in the sector is the tenant credit. A lot of life science tenants are start-ups with limited financial capacity and even lifespan, which could threaten the rental revenue.

As the land tenure is limited, the property will become less attractive and experience more significant discount when it approach the ground lease expiration, meaning it would be increasingly difficult to find a next buyer. That would substantially affect the reversionary price.

Mitigation • Offer CU below market starting rent and market level growth plus the terms of reviewing the rental rate every 5 years to catch up with at least 80% of the market rate • Place small tenants on the premises that CU have a ROFO on, as they might vacant the space after the first generation leases expire • Market the building to attract some tenants at mature stage with willing to pay premium rent and sign a long lease. Potential leverage: adjacency CU resources & affiliates, amenities and incubator.

Mitigation • Anchored by CU, a very reliable long-term tenant, the property could be considered as fixed-income product and the owner can use that to match buyers with certain risk appetite • Negotiate with CU to buy out their interest in the property overtime until they fully occupied the building

26

CUIMC AUDUBON IV DEVELOPMENT

Presented by Patrick Kun Chen M.S. Real Estate Development Candidate, 2021 Columbia University 27

Appendix: Development Budget CUIMC AUDUBON IV DEVELOPMENT Development Budget

Construction Comps Facility Name PSFFactory District-Taystee Building Alexandria Life Science Hub InnoLabs Alexandria Center North Tower Life Sciences Innovation Campus** Total

Development Budget

GSF 187,598 16,440 38,600 36,922 279,560

Office/Lab Retail Parking Mechanical Total

Type Lab/Office Lab/Office Lab/Office Lab/Office High-Rise Lab/Office

*The data was collected in 2019 ** 2/3 ofthe building will be dedicated wet lab space.

Owner Janus Property Alexandria GPF, Kingstreet Alexandria Deerfield

Yr Complete* 2020 TBD 2021 2022 2021

GSF Const. Spending 600,000 $360M 1,000,000 $75M 267,000 $240M 550,000 $700M 300,000 $635M 2,717,000 $2010M

RSF 162,617 Pre-development Cost 6,918 Residual Land Value(round-up) RFP Process Closing Costs Total Pre-development Costs(exl. Ground Lease Payment) 169,535

$ $ $ $ $ $

Hard Costs Demolition Cost PSF Environmental Site Improvement 600 Structure & Shell 75 Interior 899 MEP 1,273 2,117 LEED Certification 740 General Conditions Insuracne, Taxes, Bonds Cost Inflation Contingency Total Hard Costs

$40,000,000 $150,000 $600,000 $750,000 $139,780 $3,354,722 $1,956,921 $97,846,070 $41,934,030 $48,923,035 $55,912 $4,193,403 $4,408,975 $6,613,462 $11,022,437 $220,448,749

Soft Costs Professional Fees Permits&Testing Impact Fees Insurance Legal Real Estate Taxes Leasing & Marketing Total Soft Costs

$13,226,925 $698,901 $4,193,403 $4,408,975 $4,408,975 $0 $4,408,975 $31,346,153

Developer Fee

$10,071,796

Total Construction Cost Financing Costs Construction Loan Origination Fee Debt Brokerage Fee Title Insurance Legal/Dililgence/Closing Total Financing Costs Capitalized Interest Total Financing Costs&Capitalized Interest

Comps Source: New York Building Congress

Total

Total Development Costs

1.5%

2.0% 3.0% 5.0%

6%

2% 2% 2%

4%

$262,616,698

$1,668,391 $750,776 $250,259 $834,195 $3,503,620 $11,944,795 $15,448,415 $278,065,114

1.00% 0.45% 0.15% 0.50%

$/GSF

$/RSF

% Share

$143.08 $0.54 $2.15 $2.68

$235.94 $0.88 $3.54 $4.42

0.1% 0.2% 0.3%

$0.50 $12.00 $7.00 $350.00 $150.00 $175.00 $0.20 $15.00 $15.77 $23.66 $39.43 $788.56

$0.82 $19.79 $11.54 $577.14 $247.35 $288.57 $0.33 $24.73 $26.01 $39.01 $65.02 $1,300.31

0.1% 1.2% 0.7% 35.2% 15.1% 17.6% 0.0% 1.5% 1.6% 2.4% 4.0% 79.3%

$47.31 $2.50 $15.00 $15.77 $15.77 $0.00 $15.77 $112.13

$78.02 $4.12 $24.73 $26.01 $26.01 $0.00 $26.01 $184.89

4.8% 0.3% 1.5% 1.6% 1.6% 0.0% 1.6% 11.3%

$36.03

$59.41

3.6%

$939.39

$1,549

94.4%

$5.97 $2.69 $0.90 $2.98 $12.53 $42.73 $55.26

$9.84 $4.43 $1.48 $4.92 $20.67 $70.46 $91.12

0.6% 0.3% 0.1% 0.3% 1.3% 4.3% 5.6%

$994.65

$1,640.16

100.00%

28

Appendix: Project Delivery Schedule PROJECT NAME CUIMC AUDUBON IV DEVELOPMENT

Task Description

1 2 3 4

Pre-development Demo/ Excavation / Below Grade Construction Above Grade Construction Lease Downtime

PROJECT PROJECT START DATE END DATE 9/30/2021 4/30/2024

Start Date 9/30/2021 5/1/2022 5/1/2023 5/1/2024

Year0 Year1 Year 3 Year 2 End Date 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4/30/2022 4/30/2023 4/30/2024 1/31/2025

29

Appendix: Rent Roll Assumptions Lab Leasing Activities Start Date: Lab Leasing Activities Start Year: Lab Leasing Activities Start Month: Rent Roll Premise Floor 2-6 Floor 8-9 Floor 10 Floor 11-14 Subtotal

5/31/2024 Year 3 Month 26

Potential Tenant CUIMC Commercial(CU Expansion) Pre-built Incubator/Co-working Space Commercial `

Operating Assumptions General Vacancy Yr1 Operating Expense Operating Expenses Growth Expense Recovery Ratio

PSF $

Retail Leasing Activities Start Date: Retail Leasing Activities Start Year: Retail Leasing Activities Start Month: Rent Roll Tenant Ground Floor Retail Subtotal Operating Assumptions General Vacancy Opereating Expense Operating Expenses Growth Expense Recovery Ratio

% 49.3% 15.6% 7.8% 27.3% 100%

RSF 80,150 25,332 12,666 44,469 162,617

LCD Month 26 Month 26 Month 26 Month 26

LXD Month 265 Month 85 Month 145 Month 109

Term 20 yrs 5 yrs 10 yrs 7 yrs

% 100% 100%

10% $45.00 2.5% 100%

Amount Growth Rate $7,213,511 3.50% $2,913,171 3.50% $1,013,277 3.50% $5,002,759 3.50% $16,142,717

Free Rent 0 Months 6 Months 0 Months 6 Months

TI Budget $ $ 65.00 $ $ 70.00

$ $ $ $

TI Cost 1,646,575 3,112,828 $4,759,403

LC 0.0% 6.0% 6.0% 6.0%

$ $ $ $

LC Cost 786,556 607,966 1,951,076 $3,345,598

Lease Downtime 0 Months 9 Months 0 Months 9 Months

8.0% 15.00 2.50% 100% Parking Leasing Activities Start Date: Parking Leasing Activities Start Year: Parking Leasing Activities Start Month:

5/31/2024 Year 3 Month 26

Potential Tenant F&B or Others

$/SF $90.0 $115.0 $80.0 $112.5 $99.27

RSF LCD 6,918 Month 26 6,918

$/SF Amount Growth Rate $125 $864,790 3% $125.00 $864,790

Rent Roll Premise Reserved Market Subtotal

Potential Tenant Tenants Visitors

Operating Assumptions General Vacancy Opereating Expense Operating Expenses Growth

5/31/2024 Year 3 Month 26

% 40% 60% 100%

Amount 46 69 115

per space/mth

10% $750 2.5%

LCD Month 26 Month 26

$/Parking Occupancy Amount Rent Growth $450/mth 90% $223,560 2.5% $15/hr 10 hrs/d $3,777,750 2.5% $4,001,310

30

Appendix: Rent Roll Summary Rent Roll Summary

Scheduled Base Rental Revnue Lab/Office Retail Parking Potential Gross Income Rent Abatment Total Recoveries Lease Downtime Vacancy & Credit Loss Effective Gross Income Operating Expenses Lab/Office Retail Parking OpEx Capital Expenditure* Tenant Improvement Leasing Commission CapEx

Year Month Ending Date

0 0 3/31/2022

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

4 48 3/31/2026

5 60 3/31/2027

6 72 3/31/2028

7 84 3/31/2029

8 96 3/31/2030

9 108 3/31/2031

10 120 3/31/2032

11 132 3/31/2033

$ $ $ $ $ $ $ $ $

166,030,472 8,713,432 38,986,839 213,730,743 (8,810,707) 24,618,556 (7,391,988) (14,464,935) 207,681,670

$ $ $ $ $ $ $ $ $

-

$ $ $ $ $ $ $ $ $

-

$ $ $ $ $ $ $ $ $

-

$ $ $ $ $ $ $ $ $

14,797,491 792,725 3,620,430 19,210,646 (3,444,896) 2,521,364 (3,298,304) (1,085,659) 13,903,151

$ $ $ $ $ $ $ $ $

16,707,713 890,734 4,048,299 21,646,746 (758,610) 2,845,293 (1,769,832) 21,963,597

$ $ $ $ $ $ $ $ $

17,292,483 917,456 4,149,506 22,359,445 2,943,275 (1,890,095) 23,412,625

$ $ $ $ $ $ $ $ $

17,897,719 944,980 4,253,244 23,095,943 3,044,638 (1,951,640) 24,188,941

$ $ $ $ $ $ $ $ $

18,524,140 973,329 4,359,575 23,857,044 3,149,499 (2,015,222) 24,991,322

$ $ $ $ $ $ $ $ $

19,172,484 1,002,529 4,468,565 24,643,578 (1,505,712) 3,257,980 (1,441,639) (1,845,120) 23,109,088

$ $ $ $ $ $ $ $ $

19,843,521 1,032,605 4,580,279 25,456,405 (331,577) 3,370,204 (2,122,244) 26,372,789

$ $ $ $ $ $ $ $ $

20,538,045 1,063,583 4,694,786 26,296,414 (2,769,913) 3,486,303 (2,652,045) (1,785,124) 22,575,635

$ $ $ $ $ $ $ $ $

21,256,876 1,095,491 4,812,155 27,164,522 27,164,522

$ $ $ $

(25,088,129) (3,136,836) (10,216,677) (38,441,642)

$ $ $ $

-

$ $ $ $

-

$ $ $ $

-

$ $ $ $

(2,235,983) (285,381) (948,750) (3,470,114)

$ $ $ $

(2,524,628) (320,664) (1,060,875) (3,906,168)

$ $ $ $

(2,612,990) (330,284) (1,087,397) (4,030,672)

$ $ $ $

(2,704,445) (340,193) (1,114,582) (4,159,220)

$ $ $ $

(2,799,101) (350,399) (1,142,446) (4,291,946)

$ $ $ $

(2,897,069) (360,911) (1,171,008) (4,428,987)

$ $ $ $

(2,998,467) (371,738) (1,200,283) (4,570,487)

$ $ $ $

(3,103,413) (382,890) (1,230,290) (4,716,593)

$ $ $ $

(3,212,032) (394,377) (1,261,047) (4,867,456)

$ $

(4,759,403) (3,345,598)

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

(4,759,403) $ (3,345,598) $ (8,105,001) $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

$ $ $

-

*For the first generation tenant. Future capital expenditure will be cover by CapEx reserve, which is kept as 10% of operating NOI in annual cash flow 31

Appendix: Leasing Comps – Life Science The Alexandria Center for Science and Technology

Street Address 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street 430 East 29th Street Subtotal

Transaction Quarter 2012 - Q3 2016 - Q1 2017 - Q4 2017 - Q3 2018 - Q4 2018 - Q4 2018 - Q4 2020 - Q3 2020 - Q3

Tenant Name Roche Rocket Pharmaceuticals Bristol-Myers Squibb Prevail Therapeutics Prevail Therapeutics Prevail Therapeutics Prevail Therapeutics Opentrons Cellectis

Effective Rent 96.36 98.11 81.30 98.35 108.55 86.27 109.65 91 85.95 95.06

Rent Bump Floors Occupied Entire 15-16 3.0% /1y Partial 10 2.5% /1y 3.5% /1y Partial 9 3.5% /1y Partial 6 3.5% /1y Partial 15 3.5% /1y Partial 9 Entire 12 Partial 8

Lease Term 11 years 5 years,3 months 10 years,7 months 4 years,1 months 6 years,4 months 6 years,4 months 3 years,3 months 1 years 10 years,4 months 6 years,5 months

Expiration Date 2024-01-01 2021-07-31 2028-11-30 2021-10-31 2025-01-31 2025-01-31 2025-01-31 2021-12-15 2031-03-01

Source: CompStak 32

Appendix: Leasing Comps - Retail

Street Address 1200 Saint Nicholas Avenue 4020 Broadway 83-85 Audubon Avenue 83 Audubon Avenue 1225 Saint Nicholas Avenue 2153 Amsterdam Avenue 2092 Amsterdam Avenue 3954 Broadway 1227 Saint Nicholas Avenue 226-230 Fort Washington Avenue 79-81 Audubon Avenue 2190-2192 Amsterdam Avenue

Transaction Quarter 2019 - Q2 2019 - Q2 2018 - Q4 2018 - Q3 2018 - Q2 2018 - Q1 2018 - Q1 2017 - Q2 2017 - Q2 2015 - Q2 2015 - Q2 2015 - Q1

Tenant Name T-Mobile Tasty Deli Jaya Restaurant Restuarants 171 (Laundry) La Esperanza Jimbo's Hamburger Palace Walgreens Fashion Q The Corner Market Heights Burgers Merienda Snack Bar

Effective Rent Rent Bump $ 95.00 $ 120.00 $ 134.13 3.0% /1y $ 117.00 $ 44.21 $ 65.45 $ 54.96 $

$

Floors Occupied Ground Ground Ground Ground Ground Ground

38.82

50.00

Lease Term 10 years 10 years 10 years 10 years 16 years 10 years 10 years 10 years

Ground Ground Ground

10 years

Source: CompStak 33

Appendix: 10-yr Hold with Refinancing Return Summary 120 months 9.89% 2.14x 14.93% 2.90x

Holding Period Unlevered IRR Unlevered MOIC Levered IRR Levered MOIC Equity Invested Profit Stabilized YoC Stabilized NOI Margin Avg. YoC(after completion)

$ $

LP IRR LP MOIC GP IRR GP MOIC

Refinance Senior Loan Refi Fixed Rate Amortization Valuation NOI upon Refi Loan Amount LTV DSCR Debt Yield Monthly Debt Service Loan Balance Upon Exit Effective LTV

111,270,203 213,552,333 6.25% 79.12% 6.35% 14.68% 2.63x 24.28% 5.56x

TRUE 4.00% months 360 $428,623,776 $ 19,288,070 $ 280,562,712 70% 1.20 7% $1,339,449 $ 280,562,712 65.46%

Refi Time Origination Fee Recording Tax Brokerage Fee Title Insurance Legal/Diligence/Closing Loan Amount_LTV Loan Amount_DSCR Loan Amount_DY

$ $ $

60 0.75% 0.00% 0.35% 0.10% 0.50% 300,036,643 280,562,712 296,739,537

Refinance Sources Permanent Loan Total Sources

$ $

280,562,712 $ 280,562,712 $

1,003.59 1,003.59

100.0% 100.0%

Uses Construction Loan Repayment Exit Fee Origination Fee Brokerage Fee Title Insurance Total Uses

$ $ $ $ $ $

195,351,331 834,195 2,104,220 981,969 280,563 280,562,712

698.78 2.98 7.53 3.51 1.00 1,003.59

69.6% 0.3% 0.8% 0.4% 0.1% 100.0%

$ $ $ $ $ $

34

Financial Analysis: Annual Cash Flow - 10-yr Hold Annually Cash Flow

Year Month Ending Date

0 0 3/31/2022

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

4 48 3/31/2026

5 60 3/31/2027

6 72 3/31/2028

7 84 3/31/2029

8 96 3/31/2030

9 108 3/31/2031

10 120 3/31/2032

Potential Gross Income Rent Abatment Total Recoveries Lease Downtime Vacancy & Credit Loss Effective Gross Income

$ $ $ $ $ $

186,566,221 (8,810,707) 24,618,556 (7,391,988) (14,464,935) 180,517,147

$ $ $ $ $ $

-

$ $ $ $ $ $

-

$ $ $ $ $ $

-

$ $ $ $ $ $

19,210,646 (3,444,896) 2,521,364 (3,298,304) (1,085,659) 13,903,151

$ $ $ $ $ $

21,646,746 (758,610) 2,845,293 (1,769,832) 21,963,597

$ $ $ $ $ $

22,359,445 2,943,275 (1,890,095) 23,412,625

$ $ $ $ $ $

23,095,943 3,044,638 (1,951,640) 24,188,941

$ $ $ $ $ $

23,857,044 3,149,499 (2,015,222) 24,991,322

$ $ $ $ $ $

24,643,578 (1,505,712) 3,257,980 (1,441,639) (1,845,120) 23,109,088

$ $ $ $ $ $

25,456,405 (331,577) 3,370,204 (2,122,244) 26,372,789

$ $ $ $ $ $

26,296,414 (2,769,913) 3,486,303 (2,652,045) (1,785,124) 22,575,635

Operating Expenses Management Fee Insurance Real Estate Tax Total Operating Expense

$ $ $ $ $

(33,574,186) (4,512,929) (1,100,214) (39,187,328)

$ $ $ $ $

-

$ $ $ $ $

-

$ $ $ $ $

-

$ $ $ $ $

(3,470,114) (347,579) (116,556) (3,934,248)

$ $ $ $ $

(3,906,168) (549,090) (130,330) (4,585,588)

$ $ $ $ $

(4,030,672) (585,316) (133,589) (4,749,576)

$ $ $ $ $

(4,159,220) (604,724) (136,928) (4,900,871)

$ $ $ $ $

(4,291,946) (624,783) (140,351) (5,057,080)

$ $ $ $ $

(4,428,987) (577,727) (143,860) (5,150,575)

$ $ $ $ $

(4,570,487) (659,320) (147,457) (5,377,264)

$ $ $ $ $

(4,716,593) (564,391) (151,143) (5,432,127)

Net Operating Income NOI Margin Growth Yield on Cost

$

141,329,819

$

Tenant Improvement Leasing Commission CapEx Reserve Total CapEx

$ $ $ $

(4,759,403) (3,345,598) (14,132,982) (22,237,983)

$ $ $ $

-

$ $ $ $

-

$ $ $ $

-

$ $ $ $

Property Cash Flow

$

119,091,836

$

-

$

-

$

-

$

Ground Rent Payment Total Construction Cost Reversionary Price Transaction Cost Sales Proceeds

$ $

(211,955) (278,065,114)

$ $ $ $ $

-

$ $ $ $ $

Unlevered Total Cash Flow

$

319,307,255

$

$

9.89% 2.14x 319,307,255

Unlevered Ratio IRR MOIC Profit

$ 0.0% 0.0% 0.0%

(0) $

$ 0.0% 0.0% 0.0%

(21,196) (133,471,255) -

$ $ $ $ $

(133,492,450) $

$ 0.0% 0.0% 0.0%

(21,196) (133,471,255) -

$ $ $ $ $

(133,492,450) $

9,968,903 $ 71.7% 0.0% 3.6% (4,759,403) (3,345,598) (996,890) (9,101,891) 867,011 (21,196) (11,122,605) -

17,378,009 $ 79.1% 74.3% 6.2%

18,663,049 $ 79.7% 7.4% 6.7%

19,288,070 $ 79.7% 3.3% 6.9%

19,934,242 $ 79.8% 3.4% 7.2%

17,958,513 $ 77.7% -9.9% 6.5%

20,995,525 $ 79.6% 16.9% 7.6%

17,143,508 75.9% -18.3% 6.2%

$ $ $ $

(1,737,801) (1,737,801)

$ $ $ $

(1,866,305) (1,866,305)

$ $ $ $

(1,928,807) (1,928,807)

$ $ $ $

(1,993,424) (1,993,424)

$ $ $ $

(1,795,851) (1,795,851)

$ $ $ $

(2,099,553) (2,099,553)

$ $ $ $

(1,714,351) (1,714,351)

$

15,640,208

$

16,796,744

$

17,359,263

$

17,940,818

$

16,162,662

$

18,895,973

$

15,429,157

$ $ $ $ $

(21,196) 493,291,225 (14,798,737) 478,492,488

$

493,900,450

$ $ $ $ $

(10,276,789) $

(21,196) 15,619,013

$ $ $ $ $ $

(21,196) 16,775,549

$ $ $ $ $ $

(21,196) 17,338,067

$ $ $ $ $ $

(21,196) 17,919,622

$ $ $ $ $ $

(21,196) 16,141,466

$ $ $ $ $ $

(21,196) 18,874,777

35

Appendix : Annual Cash Flow - 10-yr Hold (Cont.)

Annually Cash Flow

Year Month Ending Date

0 0 3/31/2022

Unlevered Total Cash Flow

$

319,307,255

$

Construction Loan Financial Cost Interest Reserve Loan Draw Interest Payoff Balance Payoff Exit Fee

$ $ $ $ $ $

(3,503,620) (11,944,795) 183,406,536 (20,594,522) (195,351,331) (834,195)

$ $ $ $ $ $

Permanent Loan Loan Balance Debt Service Refi Cost

$ $

(80,366,958) (3,366,753)

$ $ $

Levered Total Cash Flow

$

213,552,333

$

$

16.05% 14.93% 2.90x 213,552,333

Levered Ratio IRR MOIC Profit

(0) $

(3,503,620) (11,944,795) -

-

$ $ $ $ $ $

$ $ $

(15,448,415) $

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

(133,492,450) $

(133,492,450) $

(10,276,789) $

37,670,663 -

-

$ $ $ $ $ $

$ $ $

(95,821,787) $

133,492,450 -

-

$ $ $ $ $ $

$ $ $ (0) $

12,243,423 (1,530,042) -

-

4 48 3/31/2026

$ $ $ $ $ $

$ $ $

436,592 $

15,619,013

5 60 3/31/2027

6 72 3/31/2028

$ $ $ $ $ $

(9,687,505) (195,351,331) (834,195)

$ $ $ $ $ $

$ $ $

280,562,712 $ $ (3,366,753) $

$ (16,073,392) $ $

$ (16,073,392) $ $

$ (16,073,392) $ $

$ (16,073,392) $ $

6,242,038 $

88,098,477 $

1,264,676 $

1,846,230 $

68,075 $

2,801,386 $

-

-

$

$ $ $ $ $ $

16,141,466

-

$

$ $ $ $ $ $

18,874,777

10 120 3/31/2032

$

$ $ $ $ $ $

17,919,622

9 108 3/31/2031

16,775,549

-

$

8 96 3/31/2030

$

(9,376,975) -

17,338,067

7 84 3/31/2029

-

$

$ $ $ $ $ $

493,900,450

-

(253,761,996) (16,073,392) 224,065,062

36

Appendix: JV Waterfall - 10-yr Hold Year Month Ending Date

0 0 3/31/2022

1 12 3/31/2023

2 24 3/31/2024

3 36 3/31/2025

Levered Total Cash Flow

$

213,552,333

$

(15,448,415) $

(95,821,787) $

-

$

LP Contribution GP Contribution Total Contribution

$ $ $

100,143,183 11,127,020 111,270,203

$ $ $

13,903,574 $ 1,544,842 $ 15,448,415 $

86,239,609 $ 9,582,179 $ 95,821,787 $

-

$ $ $

$

324,822,536

$

-

$

BOP Contribution Pref Tier 1 Distribution EOP

$ $ $

(111,270,203) (94,360,159) 205,630,361

$ $ $ $ $

GP Promote

$

JV CF@Tier 1 LP CF GP CF Tier 2 CF Overflow

$ $ $

94,360,159 84,924,143 9,436,016

$ $ $

$

119,192,175

$

BOP Contribution 2nd Hurdle Return Previous Distribution Tier 2 Distribution EOP

$ $ $ $

(111,270,203) (166,054,605) 205,630,361 71,694,447

$ $ $ $ $ $

GP Promote

$

17,923,612

$

JV CF@Tier 2 LP CF GP CF Tier 3 CF Overflow

$ $ $

166,054,605 149,449,145 34,529,072

$ $ $

$

29,574,116

$

-

$

-

Tier 3 Distribution GP Promote

$ $

14,787,058 14,787,058

$ $

-

$ $

-

JV CF@Tier 3 LP CF GP CF

$ $ $

180,841,664 162,757,497 50,794,836

$ $ $

Tier 1 CF for Distribution

10%

14%

4 48 3/31/2026

436,592 $ -

$ $ $

5 60 3/31/2027

6 72 3/31/2028

7 84 3/31/2029

8 96 3/31/2030

6,242,038 $

88,098,477 $

1,264,676 $

1,846,230 $

-

-

-

-

$ $ $

$ $ $

$ $ $

$ $ $

9 108 3/31/2031

68,075 $ -

$ $ $

10 120 3/31/2032

2,801,386 $ -

$ $ $

224,065,062 -

0.0261%

0.0359%

-

$

(15,448,415) (15,448,415) -

$ $ $ $ $ $ $

(15,448,415) $ (13,903,574) $ (1,544,842) $ (15,448,415) (15,448,415) -

$ $ $ $ $ $ $ $

(15,448,415) $ (13,903,574) $ (1,544,842) $

(15,448,415) $ (13,903,574) $ (1,544,842) $

(15,448,415) (95,821,787) (1,544,842) (112,815,044) -

$ $ $ $ $ $

(112,815,044) (11,313,913) (124,128,958)

$ $ $ $ $

436,592 $ (124,128,958) (12,412,896) 436,592 (136,105,261)

$ $ $ $ $

(136,105,261) (13,610,526) 6,242,038 (143,473,749)

-

$

-

(95,821,787) $ (86,239,609) $ (9,582,179) $

-

$ $ $

436,592 $ 392,933 $ 43,659 $

6,242,038 $ 5,617,834 $ 624,204 $

-

$

-

-

(15,448,415) (95,821,787) (2,162,778) (113,432,981) -

$ $ $ $ $ $ $

(113,432,981) (15,927,047) (129,360,028)

$ $ $ $ $ $

(129,360,028) (18,110,404) 436,592 (147,033,840)

$ $ $ $ $ $ $ $

-

$ $ $ $ $

$

-

$

6,242,038 $

(147,033,840) (20,584,738) 6,242,038 (161,376,539) -

$

$ $ $ $ $ $ $ $

88,098,477 $ (143,473,749) (14,347,375) 88,098,477 (69,722,647) -

$

88,098,477 $ 79,288,629 $ 8,809,848 $ (161,376,539) (22,592,715) 88,098,477 (95,870,777)

$

-

$

-

(95,821,787) $ (86,239,609) $ (9,582,179) $

-

$ $ $

436,592 $ 392,933 $ 43,659 $

6,242,038 $ 5,617,834 $ 624,204 $

$

-

$

-

$

-

$

-

$ $

-

$ $

-

$ $

-

$ $

-

(95,821,787) $ (86,239,609) $ (9,582,179) $

-

$ $ $

436,592 $ 392,933 $ 43,659 $

6,242,038 $ 5,617,834 $ 624,204 $

$ $ $ $ $

-

$ $ $ $ $ $ $ $

88,098,477 $ 79,288,629 $ 8,809,848 $

1,264,676 $ (69,722,647) (6,992,294) 1,264,676 (75,450,265) -

$ $ $ $ $ $

1,846,230 $ (75,450,265) (7,545,027) 1,846,230 (81,149,061) -

$ $ $ $ $ $

1,264,676 $ 1,138,208 $ 126,468 $

1,846,230 $ 1,661,607 $ 184,623 $

-

-

(95,870,777) (13,461,150) 1,264,676 (108,067,251) -

$ $ $ $ $ $ $ $

(108,067,251) (15,129,415) 1,846,230 (121,350,436) -

$ $ $ $ $ $ $ $

68,075 $ (81,149,061) (8,114,906) 68,075 (89,195,893) -

$ $ $ $ $ $

68,075 $ 61,267 $ 6,807 $ (121,350,436) (16,989,061) 68,075 (138,271,423) -

$ $ $ $ $ $ $ $

(89,195,893) (8,919,589) 2,801,386 (95,314,097) -

$ $ $ $ $ $

224,065,062 (95,314,097) (9,558,791) 104,872,888 -

2,801,386 $ 2,521,247 $ 280,139 $

104,872,888 94,385,599 10,487,289

-

$

119,192,175

$ $ $ $ $ $

(154,828,036) (21,739,298) 104,872,888 71,694,447 -

$

17,923,612

2,801,386 $ 2,521,247 $ 280,139 $

176,567,335 158,910,601 35,580,345

(138,271,423) (19,357,999) 2,801,386 (154,828,036) -

1,264,676 $ 1,138,208 $ 126,468 $

1,846,230 $ 1,661,607 $ 184,623 $

$

-

$

-

$

-

$

-

$

29,574,116

$ $

-

$ $

-

$ $

-

$ $

-

$ $

14,787,058 14,787,058

2,801,386 $ 2,521,247 $ 280,139 $

191,354,393 172,218,953 51,846,109

88,098,477 $ 79,288,629 $ 8,809,848 $

1,264,676 $ 1,138,208 $ 126,468 $

1,846,230 $ 1,661,607 $ 184,623 $

68,075 $ 61,267 $ 6,807 $

2,801,386 $

68,075 $ 61,267 $ 6,807 $

37

Appendix: JV Waterfall - 10-yr Hold (Cont.)

Year Month Ending Date JV CF Contribution Tier 1 Distribution Tier 2 Distribution Tier 3 Distribution Total JV CF

0 0 3/31/2022

$ $ $ $ $

(111,270,203) 205,630,361 71,694,447 14,787,058 180,841,664

JV Return IRR MOIC Profit

$

14.68% 2.63x 180,841,664

Promote Tier 1 Promote Tier 2 Promote Tier 3 Promote Total Promote

$ $ $ $

17,923,612 14,787,058 32,710,670

$ $ $ $

LP CF Contribution Tier 1 Distribution Tier 2 Distribution Tier 3 Distribution Total LP CF

$ $ $ $ $

(100,143,183) 185,067,325 64,525,002 13,308,352 162,757,497

$ $ $ $ $

(13,903,574) (13,903,574)

$ $ $ $ $

LP Return IRR MOIC Profit

$

14.68% 2.63x 162,757,497

GP CF Contribution Tier 1 Distribution+Promote Tier 2 Distribution+Promote Tier 3 Distribution+Promote Total GP CF

$ $ $ $ $

(11,127,020) 20,563,036 25,093,056 16,265,764 50,794,836

$ $ $ $ $

(1,544,842) (1,544,842)

$ $ $ $ $

$

24.28% 5.56x 50,794,836

GP Return IRR MOIC Profit

$ $ $ $ $

(15,448,415) (15,448,415)

1 12 3/31/2023

-

$ $ $ $ $

$ $ $ $

(95,821,787) (95,821,787)

2 24 3/31/2024

3 36 3/31/2025

$ $ $ $

-

$ $ $ $

(86,239,609) (86,239,609)

$ $ $ $ $

-

$ $ $ $ $

392,933 392,933

$ $ $ $ $

5,617,834 5,617,834

$ $ $ $ $

79,288,629 79,288,629

$ $ $ $ $

1,138,208 1,138,208

$ $ $ $ $

(9,582,179) (9,582,179)

$ $ $ $ $

-

$ $ $ $ $

43,659 43,659

$ $ $ $ $

624,204 624,204

$ $ $ $ $

8,809,848 8,809,848

$ $ $ $ $

126,468 126,468

$ $ $ $ $

-

$ $ $ $ $

$ $ $ $

88,098,477 88,098,477

-

$ $ $ $ $

$ $ $ $

1,264,676 1,264,676

7 84 3/31/2029

$ $ $ $ $

$ $ $ $

6,242,038 6,242,038

6 72 3/31/2028

-

-

$ $ $ $ $

5 60 3/31/2027

$ $ $ $ $

-

436,592 436,592

4 48 3/31/2026

-

$ $ $ $ $

$ $ $ $

1,846,230 1,846,230

8 96 3/31/2030

9 108 3/31/2031

$ $ $ $ $

68,075 68,075

$ $ $ $ $

$ $ $ $

-

$ $ $ $

1,661,607 1,661,607

$ $ $ $ $

61,267 61,267

$ $ $ $ $

184,623 184,623

$ $ $ $ $

6,807 6,807

$ $ $ $ $

-

2,801,386 2,801,386

10 120 3/31/2032

$ $ $ $ $

104,872,888 71,694,447 14,787,058 191,354,393

$ $ $ $

17,923,612 14,787,058 32,710,670

2,521,247 2,521,247

$ $ $ $ $

94,385,599 64,525,002 13,308,352 172,218,953

280,139 280,139

$ $ $ $ $

10,487,289 25,093,056 16,265,764 51,846,109

-

38