INVESTMENT HIGHLIGHTS

Luxury Boutique Hotel Offered at Certificate of Occupancy

(Summer 2023 Opening) in One of the Nation’s Preeminent Lodging Markets

Anticipated to deliver in Summer 2023, the 37,330 SF Maison Kesh Hotel - a historic repositioned firehouse plus new construction - will provide a new owner with the rare opportunity to acquire a brand-new, luxury / boutique lodging asset at Certificate of Occupancy within a perennial Top 25 US Metropolitan Lodging Market which benefits from high barriers to entry – Washington DC. Boasting highly customized facilities and a tailored amenity base, sophisticated visual finishes, and a distinctive product offering upon completion, the Hotel is anticipated to ramp swiftly to stabilization with outstanding top and bottom-line performance, providing a new owner with an institutional-grade hotel that will deliver inherent value to a new owner throughout their hold period.

Substantial Ancillary Revenues Stemming from a Highly Curated Food & Beverage Experience

Enhanced with a Panoramic Rooftop Lounge & Impressive Local Demographics

The Maison Kesh will feature a contemporary and highly curated, full-service restaurant and bar with more than 200 seats on the ground floor of the Hotel. Moreover, guests’ food and beverage experience will be augmented by an eclectic atmosphere with floor-to-ceiling glass windows and additional seating on an adjacent outdoor patio. When coupled with a sought-after, +120-seat rooftop bar encompassed by glass hedging on the fifth floor of the Hotel, guests and neighborhood residents alike will enjoy unobstructed, 360-degree, panoramic views of the Capitol Dome and all of Washington, DC throughout all seasons of the year.

When considering the neighborhood’s impressive and rapidly growing demographics, in addition to proximity to a multitude of local Universities, a new owner is expected to drive approximately $206 in F&B POR at stabilization, significantly enhancing top-line performance for the Hotel while adding revenue diversification.

Berkadia Food & Beverage Projections

Projections

+200-Seat Ground-Floor Restaurant

+120-Seat Rooftop Bar & Lounge

Berkadia Anticipates the Hotel to Stabilize with a $206 F&B POR

Bloomingdale Average Household Income ($153,731) is 95% Higher than the National Average

47,970 Multi-Family Units

(5,266 Under Construction) within a 1.5-Mile Radius

+18,400 Students (4 Universities) within a 2-Mile Radius

Clean Offering Unencumbered of Management and with a Non-Unionized Workforce

Offered unencumbered of management and upon delivery of the luxury boutique Hotel, a new owner will have the ability to implement an operator of their choosing and customized business plan which leverages the Hotel’s brand-new, sophisticated product offering and unique amenity base to position the Hotel in the top-tier of the competitive set once stabilized. Moreover, with an efficiently programmed building layout – only 1,120 SF of meeting space and no pool – and a non-unionized workforce, potential buyers will be able to staff the hotel according to their customized operating model, providing margin upside and the ability to drive profitability, resulting in strong cash flow and attractive exit capitalization opportunities.

Optionality to Affiliate with an Industry-Leading Brand or ‘Soft’ Brand

While a new owner will have the optionality to operate the future Hotel as an independent/boutique lodging asset, offered unencumbered of brand, a potential buyer will have the ability to affiliate with one of the industry’s leading brands, inclusive of their ‘soft’ brands, such as Marriott, Hilton, Hyatt, and IHG and their respective distribution systems to maximize top-line performance. Furthermore, with a desirable and rapidly growing location in the nation’s Capital and the brands’ desire to increase their respective footprints in the submarket, there remains the possibility that a major brand may provide substantial ‘key money’ to prospective buyers, resulting in more attractive returns for a new owner.

Highly-Accessible, Multi-Modal Location within One of Washington, DC’s Fastest Growing Neighborhoods

Upon delivery, the Maison Kesh Hotel will boast a highly visible, easily-accessible, multi-modal location with prime frontage in the rapidly-growing Bloomington neighborhood of Washington, DC. Just a block north of the confluence of North Capitol Street and Florida Avenue – approximately a quarter-mile from New York Avenue – hotel guests will be provided with walkability to some of Bloomington and NoMa’s most frequented demand generators and amenities. Additionally, within a mile of several Metro bus stops, the Noma-Gallaudet Metro rail station (+4,000 daily riders), and Union Station which is currently reviewing a potential $10 billion expansion, the Hotel’s dynamic location will provide guests with seamless access throughout all of Washington DC and the greater Mid-Atlantic region. Lastly, the Hotel will be situated approximately a 15-minute drive from Reagan National Airport (DCA), allowing guests to easily access one of the region’s primary transportation hubs that served a record 23.9 million passengers in 2022.

INVESTMENT HIGHLIGHTS

Centered Among a Robust Mix of Diversified Demand Channels 6

CORPORATE OPERATIONS

• 17 Fortune 500 HQ’s in Washington, DC

• Notable Proximate Companies (Bank of America, Wells Fargo, Wolfram Mathematica, Advantage Financial)

• 18.4M SF of Office Space within a 1-Mile Radius (224K Under Construction)

• 2.3M SF Walter E. Washington Convention Center

Higher Education Institutions

• Howard University (9,689 Students)

• Trinity Washington University (1,800 Students)

• Gallaudet University (1,558 Students)

• Catholic University of America (5,366 Students)

Government

• Washington DC is Home to all 3 Branches of the US Government

• 714,700 Government Jobs Supported in Washington DC (22% of the Regional Work Force)

• New SEC Headquarters (0.25-Miles Away | 2025 Anticipated Delivery)

MEDICAL

• MedStar Washington Hospital Center (926 Beds)

• Children’s National Hospital (328 Beds)

• Howard University Hospital (300 Beds)

• Washington DC VA Medical Center (194 Beds)

• MedStar National Rehabilitation Hospital (137 Beds)

ENTERTAINMENT & LEISURE

• Union Market (+55 Vendors and Retailers

+15,000 Weekly Visitors)

• Audi Field (20,000 Seats)

• Nationals Park (41,339 Seats)

• Capital One Arena (20,356 Seats)

• National Mall (+25M Annual Visitors)

• Smithsonian Institutions (14.9M Visitors as of July 2022)