Columbia MSRED Capstone Deal Book by Maxwell Djakasaputra

GREENPOINT ROW WATERFRONT INTERCOMMUNAL LIVING

27 WEST STREET BROOKLYN, NY 11222

M CAPITAL & DEVELOPMENT Prepared by Maxwell Djakasaputra (‘21)

2 // GREENPOINT ROW

EXECUTIVE SUMMARY M Capital & Development seeks an equity partner to invest in Greenpoint’s most exciting waterfront, mixed-use development: Greenpoint Row. Greenpoint Row comprises of new construction residential units (luxury, market, senior, & affordable) that foster intercommunal living and urban amenities that meet the area’s need for incubator space (co-working & ghost kitchen spaces) while bolstering its artisan, entrepreneurial spirit. Located on the former site of the Greenpoint Terminal Market, in between Oak Street and Quay Street, Greenpoint Row is on a 369,380 SF lot with 1,890,117 RSF of residential space and 627,946 RSF of commercial space. Designed to remain contextual to its post-industrial site, the development comprises of four 15-story tall brick and steel buildings. Greenpoint Row is positioned to become a premiere, waterfront community with an incubator hub as its anchor identity, creating a unique destination for New Yorkers. With an extensive marketing campaign that includes partnering with New York’s premiere creative agencies and PR firms, M Capital & Development is confident Greenpoint Row will lease up on schedule without offering any concessions. Given our track record in ground-up development in Greenpoint & other parts of the Brooklyn borough and utilizing our existing relationships with the community and our consultants, M Capital & Development is confident the project will be delivered on time and on budget. The entire development will cost approximately $1.45B, including the land purchase and financing costs. Stabilization is expected to be at the 6th year. M Capital & Development will contribute 5% of the required equity and leverage its extensive design, development, and construction expertise. M Capital & Development is under contract to purchase the site for $231M. The ideal investor would have a long-term outlook, a holding period of ten years, and be offered pragmatic terms with above average returns. M Capital & Development is asking for the LP to invest approximately $357M into this deal. Based on conservative assumptions, M Capital & Development estimates that the LP will receive a 22.97% levered IRR, 6.16x equity multiple, and a 516% return on development over the 10-year development time frame.

$356,947,742.47 LP EQUITY (95%)

22.97% IRR 6.16X EQUITY MULTIPLE

M CAPITAL & DEVELOPMENT // 3

INVESTMENT HIGHLIGHTS BOROUGH

BLOCK & LOT

ADDRESS

LOT SIZE

BROOKLYN

2570, 1

27 WEST STREET

369,380 SF

RESIDENTIAL ZONING

RESIDENTIAL FAR

AS-OF-RIGHT RESI. BSF

LOT DEPTH

6.02

2,223,667.6 SF

803’

COMMERCIAL ZONING

COMMERCIAL FAR

AS-OF-RIGHT COMM. BSF

LOT FRONTAGE

C2-4

2.0

738,760 SF

460’

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BROOKLYN’S “NEXT WILLIAMSBURG” Just north of Williamsburg, Greenpoint is experiencing rapid gentrification, just like what had happened to Williamsburg 15 years ago. With a similar industrial past, Greenpoint’s warehouses are being converted into co-working spaces for start ups, music producers (Pirate Studios), and other entrepreneurial, artisanal pursuits. This opportunity positions investors right before Greenpoint is “juiced.”

LAST WATERFRONT SITE Within the last decade, Greenpoint has been the subject of rapid development by the likes of Brookfield and other developers. Therefore, there are very few undeveloped sites available to construct this scale of mixed-use development, let alone a new building. The site’s large footprint and corner lot-like condition at the most southern tip of Greenpoint’s waterfront, in between Williamsburg and Greenpoint, allows for both markets to be captured.

STRONG RENTAL DEMAND Greenpoint has outperformed the Brooklyn market as a whole in terms of average rental price per square foot. Greenpoint saw a 9.4% increase in studio rents, 4.8% increase in one-bedroom rents, and a 3.5% increase in two-bedroom rents. In Brooklyn,the average rental price for a studio unit increased only by 4.65%, a one-bedroom unit increased by 3.18%, and a two-bedroom unit increased by 4.18%. Trends show positive growth and momentum as COVID-19 is relatively under control, workers are returning to the city, and restrictions are being dismissed.

UNRIVALED VIEWS OF MANHATTAN The proposed development provides residents and guests with unbeatable views of the Manhattan skyline, thus helping us achieve nearly incomparable, above-market pricing.

ATTRACTIVE RISK-ADJUSTED RETURNS The proposed development provides an attractive risk-adjusted return. The expected project-level levered return, with modest leverage of 74.1%, is 26.24%. The return to LP investors is projected to be 22.97%.

EXPERIENCED SPONSORSHIP M Capital & Development, the General Partner and Developer, has over 10 years of experience developing, building, and managing residential and mixed-use developments in Greenpoint and throughout the greater Brooklyn borough. Our expertise, along with the relationships we have built with city agencies and consultants will add significant value to the development. M CAPITAL & DEVELOPMENT // 5

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PROJECT OVERVIEW

M CAPITAL & DEVELOPMENT // 7

DEVELOPMENT CONCEPT WATERFRONT INTERCOMMUNAL LIVING OVERVIEW

SQUARE FOOTAGE BREAKDOWN

Greenpoint Row is a mixed-use development, comprising of (4) 15-story buildings,a intercommunal, waterfront neighborhood, centered around the theme of incubation and intergenerational wellness. The goal is to create an affordable yet quality or even luxurious residences in a gentrifying neighborhood with superior on-site amenities, access to the waterfront park, and views of the Manhattan skyline. Greenpoint Row is comprised of 1,809,117 SF of rentable residential area and 627,946 SF of rentable commercial area, and 100 parking spaces.

LIVE LUXURY The northwestern building will be luxury apartments taking maximum advantage of unobstructed riverfront views of the Manhattan skyline. The luxury apartment offering consists of units, ranging from studios at 500 square feet to 2-bedrooms at 1,000 square feet. Rents start from $3,991 to $7,657 per month. The unit mix is as follows: 30% studios, 40% 1-bedrooms, and 30% 2-bedrooms.

MARKET The northeastern and southeastern buildings will be mixed-income apartments, including inclusionary housing, primarily marketed to artists and music producers who would rent out space in the co-working lab or in a retail space. The market rate apartment offering consists of units, ranging from studios at 500 square feet to 2-bedrooms at 1,000 square feet. Market rents start from $3,197 to $5,163 per month. The market rate unit mix comprises of: 30% studios, 40% 1-bedrooms, and 30% 2-bedrooms.

AFFORDABLE The affordable apartment offering consists of units, ranging from studios at 400 square feet to 2-bedrooms at 725 square feet per HPD/HDC guidelines. Affordable rents start from $1,094 to $2,105 per month based on the local AMI of $93,488. The affordable unit mix comprises of: 27% studios, 36% 1-bedrooms, and 37% 2-bedrooms.

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SENIOR HOUSING To address community needs for additional senior services and house Greenpoint’s aging population, the southwestern building will be a senior housing community. The retiring population will also have unobstructed waterfront views of Manhattan’s skyline. The senior housing apartment offering consists of units, ranging from studios at 500 square feet to 1-bedrooms at 750 square feet. Senior housing rents start from $3,197 to $3,777 per month. The unit mix is 25% studios and 75% 1-bedrooms.

WORK CO-WORKING SPACES/GHOST KITCHENS On the 3rd and 4th floors of the southeastern building, there will be incubation co-working spaces (123,126 SF) for music producers, artists and other creators renting at $50 PSF annually. On the 3rd and 4th floors of the northeastern building, ghost kitchens and event space (123,126 SF) will be rented out at $50 PSF annually to rising chefs to test out concepts while meeting the demand for takeout from busy young entrepreneurs.

SHOP FLEA MARKET SPACE, RETAIL SPACES, SUPERMARKET The southeastern building is a response to Greenpoint’s craftsmanship spirit. On the 2nd floor, there will be retail space (61,5633 SF) rented out at $59 PSF annually for boutique stores and a flea market space for artisans to sell their crafts. The supermarket (61,563 SF) rented out at $60 PSF annually will be on the 2nd floor of the northwestern building.

DINE RESTAURANTS, CAFES, EVENT SPACES The northeastern building will be dedicated to the culinary arts as a response to Greenpoint’s burgeoning food scene. The 2nd floor (61,563 SF) rented out at $60 PSF annually will have mainstay restaurants, cafes, and pop up spaces for chefs to host supper clubs and other events.

REJUVENATE MEDICAL OFFICES, WELLNESS STUDIOS, PHARMACY The southwestern building will be dedicated to health and wellness. The 3rd and 4th floors (123,126 SF) rented out at $50 PSF annually will be for medical offices. The 2nd floor (61,563 SF) rented out at $59 PSF annually will have wellness studios, pharmacy, and other health related vendors. The gym (61,563 SF rented at $42 PSF annually), will be on the 4th floor of the northwestern building. M CAPITAL & DEVELOPMENT // 9

THE NEIGHBORHOOD GREENPOINT - BROOKLYN

Over the past 15 years, Greenpoint has undergone gentrification via demographic shifts and new trendy retail offerings in the neighborhood. To be more exact, there has been a decrease of about 15,000 Latinx residents in Greenpoint & Williamsburg between 2000 and 2015 despite a population increase of over 20,000 during the same time period. There has also been a loss of over 5 million square feet of industrial/manufacturing space in Greenpoint & Williamsburg as they have been converted into trendy eateries, such as Rule of Thirds, loft-style apartments, and gallery/market spaces like the Greenpoint Terminal Market. There has been a loss of 942 rent-stabilized units in Greenpoint & Williamsburg which has created tension between landlord and working-class tenants. The influx of artists, chefs and creatives have accelerated this demand and put Greenpoint on the map for its burgeoning culinary and arts scene, trailing behind Williamsburg. Despite Greenpoint’s inevitable course towards complete gentrification, the local community has become on edge and remain tenacious in preserving their community by expressing concern over land use trends (zoning, development, neighborhood preservation), increasing affordable housing to avoid further displacement due to rent burden, and senior services to provide for their aging population.

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M CAPITAL & DEVELOPMENT // 11

F+B & RETAIL MAPPED OUT

FOOD + BEVERAGE IN

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RETAIL IN

M CAPITAL & DEVELOPMENT // 13

WELLNESS & POINTS OF INTEREST MAPPED OUT

WELLNESS IN

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POINTS OF INTEREST IN

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THE SITE

27 WEST STREET BROOKLYN, NY 11222 The site is located in between Oak Street and Quay Street, the most southern lot on Greenpoint’s waterfront. The 369,680-square-foot site is currently cleared of the previous Greenpoint Terminal Market that burned down in 2006. The site is ready to be redeveloped into a mixed-use community. Based on the site’s lot area, the site is zoned R-8 for 2,223,667.6 square feet of residential space and zoned C2-6 for 738,760 SF of commercial space.

Greenpoint Row will be the southern bookend of Greenpoint’s waterfront development “necklace” and create synergy with the nearby developments by offering unique urban amenities not found at any nearby sites.

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NEW DEVELOPMENT PIPELINE SYNERGY FOR GREENPOINT ROW

Directly across from the site is 26 West Street, a luxury, 96-unit apartment building built in 2016. The Greenpoint, a 39 story luxury residential tower built in 2019 is down street at 21 India St. Right next door is 1 Java Street, a 134,000 SF lot that was sold to Lendlease with 610,000 BSF being designed by SOM. On 161 West Street is 53 Huron, a 14 story, 173 apartment unit building that broke ground in January 2020. At the northern tip of Greenpoint, is Greenpoint Landing, 8 residential towers developed by Brookfield and Park Tower Group that will produce 5,500 units at completion.

M CAPITAL & DEVELOPMENT // 17

ZONING ANALYSIS OVERVIEW The site is located at 27 West Street Brooklyn, NY, block 2570, lot 1 and is zoned for residential (R6 and R8) with a commercial overlay (C2-4) that lends itself to be a mixed-use development. After completing an assemblage of tax lots, the total lot area is 369,380 sf with lot frontage 460’ and lot depth 803’.

RESIDENTIAL ZONING - R8 R8 allows for a maximum FAR of 6.02, an open space ratio range from 5.9 to 11.9. The building must be set within a sky exposure plane, beginning at a height of 85 feet above the street line and then slopes inward over the zoning lot. Off-street parking is generally required for 40 percent of a building’s dwelling units. Off street parking requirements can be waived if 15 or fewer parking spaces are required or if in a transit zone.

RESIDENTIAL ZONING - R6 R6 allows for a maximum FAR of 2.43 at a typical height of 13 stories, the open space ratio ranges from 27.5 to 37.5. The building must be set within a sky exposure plane, beginning at a height of 60 feet above the street line and then slopes inward over the zoning lot. Off-street parking is generally required for 70 percent of a building’s dwelling units. Parking can be waived if five or fewer spaces are required or if in a transit zone.

COMMERCIAL ZONING - C2-4 C2-4 is a commercial overlay within residential districts. C2 allows for typical retail uses and a slightly wider range of uses, such as funeral homes and repair services. In mixed buildings, commercial uses are limited to one or two floors and must always be located below the residential use.

CHALLENGES & OPPORTUNITIES The biggest zoning challenges of the site are that it’s in an Inclusionary Housing Zone, Coastal Zone, and Flood Zone. In other words, the development will need to be financially feasible while including inclusionary housing, which would satisfy the community’s concern for affordable housing, and design for future floods while also being part of the beautification process of the East River Waterfront.

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ARCHITECTURAL VISION & PROGRAMMING

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PRECEDENT CASE STUDY 6AM - LOS ANGELES’ ARTS DISTRICT DESIGNED BY HERZOG DE MEURON

6AM by Herzog de Meuron is located in Los Angeles’ Arts District. This massive development’s 2,824,245 square feet is spread out into 7 sectors of varying program. In total, it would contain 1,305 apartments, 412 hotel rooms, 431 condominium units, 253,514-square-feet of office space, a 29,316-square-foot K-12 school for approximately 300 students, 127,609 square feet of community-oriented retail, and 22,429 square feet of art and gallery spaces. From its gridded concrete base where commercial spaces are located, 5 stories of residences rise above. Similarly, to address the flood plain, M CAPITAL & DEVELOPMENT proposes the ground floor to be raised off the ground on pilotis where parking will be located underneath. The commercial uses will be on 2nd, 3rd and 4th floors and residential will be from the 5th to 15th floor.

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M CAPITAL & DEVELOPMENT // 23

DESIGN OVERVIEW DESIGN INTENT The development will seamlessly connect to the surrounding Greenpoint neighborhood architecturally and culturally, as the buildings will resemble the surrounding brick warehouses but contain tenants that foster Greenpoint’s creative and health-conscious spirit. ADDRESSING THE FLOOD ZONE To account for the flood zone, the ground floor will be raised on pilotis, to allow open, flexible space for pop-up farmer’s markets, artisan flea markets, outdoor fitness classes and any other temporary public programming. Under two of the buildings, the space will be dedicated to parking for visitors and residents.

CONCEPTUAL STREET VIEW RENDERING 24 // GREENPOINT ROW

EXTERIOR DESIGN The design of Greenpoint Row is cognizant of its surroundings in which it exists. The exterior of Greenpoint Row is designed such that it pays homage to Greenpoint’s industrial past while also a nod to nearby recent and pipeline developments. Greenpoint Row aims to be cohesive with adjacent developments, like 1 Blue Slip and 2 Blue Slip by Handel Architects, but still be unique. The architectural features consists of brick, exposed steel, and large windows to give off an industrial loft-style appearance, almost as if the building had been a conversion. Over the past few years, Greenpoint has seen a proliferation of successful conversions from warehouse space to both office and residential use. The stacked setbacks from floors ten through fourteen are used as opportunities to provide certain units with large outdoor spaces. A common rooftop is provided for all residents to use as an amenity.

Greenpoint Row will be KPF’s first Brooklyn waterfront project-a discerning feature of the project but complimentary to the string of starchitect designed waterfront developments.

M CAPITAL & DEVELOPMENT // 25

RESIDENTIAL INTERIORS The living spaces of Greenpoint Row are modern yet timeless, and reflect a fusion between Greenpoint’s industrial past and its industrious spirit. Ceiling heights are 10 feet, open layout kitchens are furnished with stainless steel appliances while keeping in mind the development cost. Layouts are designed such that dramatic views are the centerpiece of each apartment. The bathrooms and kitchens are designed with upscale yet industrial-looking finishes to stay in line with Greenpoint Row’s post-industrial aesthetic. The luxury, market rate, senior housing, and affordable units will all have the same material palette but the quality will be adjusted appropriately to reflect the asking rents.

Greenpoint Row will be rockwell group’s first Brooklyn waterfront project-a key feature of the project as it will create an experience unlike any other development on the Brooklyn waterfront.

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AMENITY SPACES Amenities include lounge, library, game room, beer brewery, mail room, bike storage, rooftop pool and private terraces for upper floor units. The common areas will be designed with dark wood and exposed steel and concrete, staying true to the industrial aesthetic of the exterior of the building. There will also be a spiritual concierge to offer holistic wellness to residences.

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COMMERCIAL / RETAIL OVERVIEW The 627,946-square-foot commercial spaces are on the 2nd, 3rd and 4th floors of each building. The space is to be delivered to tenants and operators in a white box condition with a glass entry, maximizing a tenant’s potential creativity in using the space. The retail space is divisible and can be delivered to tenants as small as 2,000 square feet or as large as a single 38,000-square-foot user. Ceiling heights for the retail space soar 15 feet high, and the space includes venting so that it can be used by a café or restaurant.

TARGET CO-WORKING OPERATORS: NEUE HOUSE - Focuses on iconic, designdriven co-working spaces. PIRATE STUDIOS - Hourly, private music studios.

TARGET GHOST KITCHEN OPERATOR: C3 - A division of SBE that focuses on rapidly evolving customer preferences such as ghost kitchens, food halls, etc.

TARGET GYM OPERATOR: TMPL - A boutique luxury fitness club that focuses on delivering an elevated aesthetic and mood that creates an uplifting experience. 28 // GREENPOINT ROW

TARGET WELLNESS TENANTS - Forward-thinking wellness tenants that focus on providing a unique, design-driven space for holistic healing.

TARGET RETAIL TENANTS: Tenants that focus on quality, artisan products and creating experiential spaces for their pop-up stores or permanent boutiques.

TARGET FOOD & BEVERAGE TENANTS: Vendors who not only offer balanced, nutrient rich foods but also have a track record of expanding bi-coastally.

TARGET GROCERY TENANTS: Grocers that offer affordable (Trader Joe’s) yet high quality food for different socio-economic levels (Erewhon) who value health. M CAPITAL & DEVELOPMENT // 29

SITE PLAN

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GROUND FLOOR PLAN

NORTHWEST FL 1 - RESIDENTIAL PARKING FL 2 - GROCERY STORE FL 3 - GYM FL 4 - AMENITY FLOOR FL 5 - 15 LUXURY APARTMENTS

NORTHEAST FL 1 - GUEST PARKING FL 2 - RESTAURANTS / FOOD HALL FL 3 - GHOST KITCHENS FL 4 - EVENT SPACE FL 5 - 15 MIXED-INCOME APARTMENTS

OAK STRE

72’

280’

ROW ST

10’

280’ 76’

R CALYE

62’ PUBLIC WATERFRONT PARK

T WEST S

. (NEW)

200’

62’

D) TENDE X E ( T E E

STR

200’

10’

280’ 72’ 280’

165’

10’

SOUTHWEST FL 1 - OPEN FLEX SPACE FL 2 - WELLNESS STUDIOS FL 3 - MEDICAL OFFICES FL 4 - MEDICAL OFFICES FL 5 - 15 SENIOR HOUSING

STRE QUAY

SOUTHEAST FL 1 - OPEN MARKET SPACE FL 2 - RETAIL BOUTIQUES FL 3 - PRIVATE MUSIC PRODUING SPACES FL 4 - CO-WORKING SPACE FL 5 - 15 MIXED-INCOME APARTMENTS

GROUND FLOOR PLAN GROUND FLOOR PLAN SITE PLAN

M CAPITAL & DEVELOPMENT // 31

STACKING DIAGRAM

ROOF - MECHANICAL FL 15 - 53,625 RSF - RESIDENTIAL SPACE FL 14 - 56,836 RSF - RESIDENTIAL SPACE FL 13 - 56,836 RSF - RESIDENTIAL SPACE FL 12 - 59,161 RSF - RESIDENTIAL SPACE FL 11 - 59,161 RSF - RESIDENTIAL SPACE FL 10 - 59,161 RSF - RESIDENTIAL SPACE FL 9 - 59,161 RSF - RESIDENTIAL SPACE FL 8 - 59,161 RSF - RESIDENTIAL SPACE FL 7 - 59,161 RSF - RESIDENTIAL SPACE FL 6 - 59,161 RSF - RESIDENTIAL SPACE FL 5 - 59,161 RSF - RESIDENTIAL SPACE FL 4 - 61,563 RSF - COMMERCIAL SPACE FL 3 - 61,563 RSF - COMMERCIAL SPACE FL 2 - 61,563 RSF - COMMERCIAL SPACE

STACKING DIAGRAM (BUILDING REPEATS 4X ON SITE)

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TYPICAL RESIDENTIAL UNIT PLAN

ONE BEDROOM UNIT

TWO BEDROOM UNIT

STUDIO UNIT

UNIT MIX

M CAPITAL & DEVELOPMENT // 33

CO-WORKING SPACE FLOOR PLAN

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GHOST KITCHEN FLOOR PLAN

M CAPITAL & DEVELOPMENT // 35

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MARKET ANALYSIS

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DEMOGRAPHIC OVERVIEW DEMOGRAPHICS SUPPORTING THE PROPOSAL The median age in Greenpoint is 34.9 years old, 51% female and 49% male, and a median household income of $93,488. 27% are making under $50K, 26% are making $50K to $100K, 30% are making $100K to $200K, and 17% are making over $200K. This shows there is almost an equal distribution of income levels in the area and a relatively young population with only 38% married. In other words, the area is relatively wealthy with decent disposable income. Therefore, there needs to be a diverse offering of retailers and food & beverage options for anyone with any income level be able to be attracted to the site and have places for them to spend at.

STRONG RENTER’S MARKET Nearly 83% of the 18,822 housing units are renter occupied with an occupancy rate of 93%. This shows a robust renter’s market in the area.

PROVIDING PARKING FOR COMMUTERS Nearly 66% of the people living here use public transit and take an average of 38.1 minutes to commute. This means that most people in the area do not own a car and rely on public transit. Thus, parking will not be an absolute necessity for the development but beneficial for those commuting to and from.

HIGHLY EDUCATED POPULATION The area also has stellar educational attainment with 91.4% are high school grad or higher and 58.9% have a bachelor’s degree or higher. This shows there is a strong potential for continued higher education which would mean a future higher earning potential and higher disposable income.

THE CULTURAL VIBE OF THE MARKET The predominant race is white at 74% and Hispanic at 15%-this will inform the cultural tastes of the local consumers and the kinds of tenants we will target for the site. Thus, the market supports our development proposal considering the target tenants will appeal to the diverse socio-economic backgrounds of a young, entrepreneurial demographic but also service Greenpoint’s aging population.

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TRANSPORTATION G at Greenpoint Av 0.29 miles at India Street Ferry Landing 0.33 miles G at Nassau Av 0.37 miles at North 5th Street Ferry landing 0.56 miles L

at Bedford Av 0.65 miles

M CAPITAL & DEVELOPMENT // 39

COMPARABLES

DATA-DRIVEN ASSUMPTIONS ROBUST RENTAL & LEASING MARKET Over the past month, the average rental price in Greenpoint has increased by 2.2%, to $2,411. The average rental price for a studio unit increased by 2.2%, to $2,411 The average rental price for a one-bedroom unit increased by 6.4%, to $2,853. The average rental price for a two-bedroom unit increased by 8.4% to $3,366. Overall, there is a steady growth in rental rates in the area. The average absorption rate is in between 8 units per month to 30+ per month.

LAND COMPARISONS Address 18 India Street 470 Kent Ave 79 Quay Street 33 Franklin 26 North 12th St. 20 North 12th st. 8 Meserol e Ave 56 Greenpoint 259 Banker St.

Price $110,825,000 $180,000,000.00 $16,000,000.00 $18,500,000.00 $53,000,000.00 $160,000,000.00 5,280,000 $4,325,000.00 $10,000,000.00

SF 156,074 161,172 23,500 18,537 59,405 259,600 6000 5,880 18,144

Price psf $710 $1,117 $681 $998 $892 $616 $880 $736 $551

Site Location Cl eared, waterfront Waterfront, next to site Across front site within 1/4 mi radius Waterfront, next to site Waterfront, south of site within 1/4 mi radius within 1/4 mi radius within 1/4 mi radius

Date Sold 10/19/20

# of Units 413 421 96 368 22

Studio $2,571.00 $3,562.00 $2,650.00 $2700-$3840 n/a

1 Bedroom $4350-$5220 $4815-$6180 $3,255.00 $3670-$4480 $4233-$4075

2 Bedroom $6151-$7645 $8,280.00 $3,618.00 $5,100.00 $4,200.00

Year Completed 2018 2020 2016 2018 2021

Notes Waterfront Waterfront Across the street from site Waterfront

197

$1894-$2875

$2298-$3675

$3440-$5165

2018

Inland

Year Built

Available SQFT

Starting Annual Rent

Lease Term Negotitable Negotitable Negotitable 1-20 years

Type Modified Gross

RENTAL SUPPLY Name / Address One Bl ue Sl ip Two Bl ue Sl ip 26 West Street The Greenpoint, 21 India Street The West, 144 West Street OTTO Greenpoint, 211 McGuiness Blvd. RETAIL SUPPLY Street Address 56 N 9th Street Brookl yn, NY 61-63 N 6th St. Brookl yn, NY 29 Wythe Ave 222 Johnson Ave RESTAURANT SUPPLY Street Address 338 Bedford Ave 740 driggs Ave

CO-WORKING SUPPLY Street Address 29 Wythe Ave 61 N. 11th St. Brookl yn, NY 73 Montrose Ave 1067 Manhattan Ave 222 Johnson Ave 503 Evergreen

SENIOR HOUSING SUPPLY Name/Address The Watermark at Brooklyn Heights Brookdale Battery Park City

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2018 2018 2021 2020

11,670 14,100 217,277 1750-5250

$45.00 $125.00 $48.00 $50.00

7/29/16 4/2/20 3/0/16 4/26/17 2/19/16 6/15/16 6/5/15

Year Built

Available SQFT

Starting Annual Rent

Lease Term 10 Negotiabl e

Type NNN NNN

Year Built

Available SQFT

Starting Annual Rent

$48.00 $75.00 $51.43 $39.00 $50.00 $34.00

Lease Term Negotiabl e Negotiabl e 5 years 5-8 years 1-20 years 5-25 years

Notes

# of Units 145 216

Studio $2,650.00 $3,562.00

1 Bedroom $3,255.00 $4815-$6180

Year Completed 1928, 2020 1998

Notes Upper middle Upper middle

2017 1930

2021 2018 2015 2020 2020 2020

900 900

217,277 15,749 1,400 1,300 1750-5250 2150-3850

$113.00 $56.00

Notes 800 rentals with 30% affordable 431 units 83 apartments, 25% affordable To be cl eared To be cl eared To be cl eared Exisiting Building Exisiting Building Exisiting Building

M CAPITAL & DEVELOPMENT // 41

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FINANCIAL OVERVIEW

M CAPITAL & DEVELOPMENT // 43

LAND ACQUISITION & PROJECT FINANCING The total cost of the project is approximately $1.5B with the land accounting for 16% or $231M. At this price, the land is trading at $77.30 per buildable square foot based on existing zoning and $625 per square foot. The average $/SF for land sales is $648.80. The project is initially financed with a 60% loan-to-value acquisition loan on the $231M purchase price, and a total construction loan based on a 75% loan-to-cost. The loan is an interest-only floating rate with a 5% spread over the 30-day LIBOR. The term of the loan is 10 years with $31M in interest accumulating over the course of the loan.

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PROJECT COSTS Construction Hard Costs total $279 per square foot or $826M. This number is based on an itemized line-by-line budget broken down into: $640M for Trade Costs, $64M for General Conditions, $32M for Development Fee, $22M for Insurance, $32M for Design Contingency, and $35M for CM Contingency. Construction Soft Costs total $159M or $54 per square foot. The Soft Costs include: $62M for Professional Fees, $83M for Other Development Costs, and $14M for Contingencies. Labor costs total $148M or 15% of the total construction costs. CONSTRUCTION LOAN RESERVE CALC

DEVELOPMENT BUDGET Land Acquisition Construction Hard Costs Trades General Conditions Development Fee Insurance Design Contingency CM Contingency Total Hard Costs Soft Costs Professional Fees Other Development Costs Contingencies Total Soft Costs Labor Cost Total Development Budget (Before Reserves) Interest Reserve Total Development Budget

$230,862,500.00

10.0% 5.0% 3.5% 5.0% 5.0%

$640,763,486.00 $64,076,348.60 $32,038,174.30 $22,426,722.01 $32,038,174.30 $35,241,991.73 $826,584,896.94

7.50% 10% 10%

$61,993,867.27 $82,658,489.69 $14,465,235.70 $159,117,592.66

15%

$147,855,373.44

Construction Loan Interest NOI lease-up Lease Up Period Constructed in Yr. 1 Constructed in Yr. 2 Constructed in Yr. 3 Constructed in Yr. 4 Est. Yr1 Int Est. Yr2 Int Est. Yr3 Int Est. Yr4 Int Total Est. Int Cost

20% 35% 30% 20%

Lease Up Period Est Int. Cost Est. NOI Lease Up Est. Net Int Cost Est Total Int. Cost Est Total Cons Loan with Reserve

$850,168,397.28 7.88% 65% 12 $170,033,679.46 $297,558,939.05 $255,050,519.18 $170,033,679.46 $13,394,990.19 $23,441,232.83 $20,092,485.28 $13,394,990.19 $70,323,698.49 $43,533,718.11 $28,296,916.77 $15,236,801.34 $85,560,499.82 $935,728,897.10

$1,364,420,363.04 $85,560,499.82 $1,449,980,862.86

CAPITALIZATION Debt Acquisition Loan Construction Loan Interest Reserves Total Debt Equity Sponsor Equity LP Equity Total Equity Total Capitalization

$138,517,500.00 $850,168,397.28 $85,560,499.82 $1,074,246,397.10 $18,786,723.29 $356,947,742.47 $375,734,465.76 $1,449,980,862.86

M CAPITAL & DEVELOPMENT // 45

ANNUAL PRO FORMA ANNUAL PRO FORMA Date Year Base Income RESI Luxury Senior Market Affordable Residential PGI Less Vaccancy Residential EGI COMMERCIAL Gym Supermarket Retail + Flea Market Co-Working Space Restaurant + Ghost Kitchen Commercial PGI Less Vaccancy Commercial EGI Parking Total EGI Operating Expenses Residential Expenses NOI (operating) Replacement Reserves NOI (Property) w/ Cap Ex res Reversion Price Sales Costs Net Sale Proceeds Capital Costs Acquisition Costs Consturction Costs Total Capital Costs Total Unlevered NOI Unlevered IRR Unlevered Equity Multiple Profit Development Return Acquisition Loan Construction Loan Draw Current Cash Interest Expense Loan Repayment Total Debt Cash Flow Total Levered Cash Flow Levered IRR Levered Equity Multiple Profit Development Return

8/31/22 0

8/31/23 1

8/31/24 2

8/31/25 3

8/31/26 4

3% 2% 2% 2%

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

2% 2% 2% 2% 2%

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$0.00

$0.00 $0.00 $0.00 $0.00

Increases

3% 2%

14.46% 2.61x $2,214,376,328.46 161%

26.24% 7.09x $2,698,699,389.67 609%

Debt Schedule Beginning Loan Balance Construction Loan Draw Accrued Interest Expense Less: Current Cash Interest Paid Less: Loan Repayment Ending Loan Balance

($230,862,500.00) ($39,779,398.17) ($270,641,898.17) ($270,641,898.17)

$0.00 ($23,867,638.90) ($23,867,638.90) ($23,867,638.90)

$0.00 ($189,184,618.29) ($189,184,618.29) ($189,184,618.29)

$0.00 ($313,172,352.83) ($313,172,352.83) ($313,172,352.83)

$0.00 ($271,843,107.98) ($271,843,107.98) ($271,843,107.98)

$138,517,500.00 $0.00 $0.00 $0.00 $138,517,500.00 ($132,124,398.17)

$0.00 $0.00 $0.00 $0.00 $0.00 ($23,867,638.90)

$0.00 $0.00 $0.00 $0.00 $0.00 ($189,184,618.29)

$0.00 $282,614,542.42 $0.00 $0.00 $282,614,542.42 ($30,557,810.41)

$0.00 $271,843,107.98 ($748,810.15) $0.00 $271,094,297.83 ($748,810.15)

$0.00 $0.00 $0.00 $0.00 $138,517,500.00

$138,517,500.00 $0.00 $3,690,488.55 $0.00 $0.00 $142,207,988.55

$142,207,988.55 $0.00 $3,884,077.23 $0.00 $0.00 $146,092,065.78

$146,092,065.78 $282,614,542.42 $7,940,872.08 $0.00 $0.00 $436,647,480.28

$436,647,480.28 $271,843,107.98 $15,743,146.80 ($748,810.15) $0.00 $723,484,924.91

($125,518,178.26)

($22,674,256.95)

($179,725,387.37)

($29,029,919.89)

$6,705.42

($12,551,817.83)

($2,267,425.70)

($17,972,538.74)

($2,902,991.99)

$352.92

LP Cash Flows (After Waterfall) LP Cashflow LP IRR LP Equity Multiple Profit Development Return

22.97% 6.16x $1,840,300,056.17 516%

GP Cash Flows (After Waterfall) GP Cashflow GP IRR GP Equity Multiple Profit Development Return

46 // GREENPOINT ROW

50.93% 39.14x $1,361,430,574.61 3814%

8/31/27 5

8/31/28 6

8/31/29 7

8/31/30 8

8/31/31 9

8/31/32 10

8/31/33 11

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$43,587,431.71 $30,485,231.98 $31,085,155.26 $16,733,820.14 $121,891,639.10 ($12,189,163.91) $109,702,475.19

$44,895,054.66 $31,094,936.62 $31,706,858.37 $17,068,496.54 $124,765,346.20 ($12,476,534.62) $112,288,811.58

$46,241,906.30 $31,716,835.36 $32,340,995.54 $17,409,866.47 $127,709,603.67 ($12,770,960.37) $114,938,643.30

$47,629,163.49 $32,351,172.06 $32,987,815.45 $17,758,063.80 $130,726,214.80 ($13,072,621.48) $117,653,593.32

$49,058,038.39 $32,998,195.50 $33,647,571.76 $18,113,225.08 $133,817,030.74 ($13,381,703.07) $120,435,327.66

$50,529,779.55 $33,658,159.41 $34,320,523.19 $18,475,489.58 $136,983,951.73 ($13,698,395.17) $123,285,556.56

$0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

$3,878,490.00 $5,540,700.00 $10,896,710.00 $3,924,662.50 $7,849,325.00 $32,089,887.50 ($4,813,483.13) $27,276,404.38 $180,000.00 $137,158,879.56

$3,956,059.80 $5,651,514.00 $11,114,644.20 $4,003,155.75 $8,006,311.50 $32,731,685.25 ($4,909,752.79) $27,821,932.46 $183,600.00 $140,294,344.04

$4,035,181.00 $5,764,544.28 $11,336,937.08 $4,083,218.87 $8,166,437.73 $33,386,318.96 ($5,007,947.84) $28,378,371.11 $187,272.00 $143,504,286.41

$4,115,884.62 $5,879,835.17 $11,563,675.83 $4,164,883.24 $8,329,766.48 $34,054,045.33 ($5,108,106.80) $28,945,938.53 $191,017.44 $146,790,549.30

$4,198,202.31 $5,997,431.87 $11,794,949.34 $4,248,180.91 $8,496,361.81 $34,735,126.24 ($5,210,268.94) $29,524,857.30 $194,837.79 $150,155,022.76

$4,282,166.35 $6,117,380.51 $12,030,848.33 $4,333,144.53 $8,666,289.05 $35,429,828.77 ($5,314,474.31) $30,115,354.45 $198,734.54 $153,599,645.56

$0.00 $0.00 $0.00 $0.00

$28,313,817.52 $108,845,062.05 $1,016,400.00 $107,828,662.05

$29,163,232.04 $111,131,112.00 $1,036,728.00 $110,094,384.00

$30,038,129.01 $113,466,157.41 $1,057,462.56 $112,408,694.85

$30,939,272.88 $115,851,276.42 $1,078,611.81 $114,772,664.61

$31,867,451.06 $118,287,571.69 $1,100,184.05 $117,187,387.65 $3,019,404,274.06 ($120,776,170.96) $3,135,203,246.48

$32,823,474.59 $120,776,170.96 $1,122,187.73 $119,653,983.23

$0.00 ($271,843,107.98) ($271,843,107.98) ($271,843,107.98)

$0.00 ($147,855,373.44) ($147,855,373.44) ($39,010,311.40)

$0.00 $0.00 $0.00 $111,131,112.00

$0.00 $0.00 $0.00 $113,466,157.41

$0.00 $0.00 $0.00 $115,851,276.42

$0.00 $0.00 $0.00 $3,253,490,818.18

$0.00 $0.00 $0.00 $120,776,170.96

$0.00 $271,843,107.98 ($28,238,793.78) ($38,403,615.85) $205,200,698.36 ($66,642,409.63)

$0.00 $147,855,373.44 ($28,742,885.09) ($79,254,225.23) $39,858,263.11 $847,951.72

$0.00 $0.00 ($28,368,914.35) ($81,897,559.76) ($110,266,474.12) $864,637.88

$0.00 $0.00 ($2,570.28) ($112,581,937.55) ($112,584,507.83) $881,649.58

$0.00 $0.00 ($2,243.16) ($114,951,873.82) ($114,954,116.98) $897,159.44

$0.00 $0.00 ($1,911.82) ($115,155,229.77) ($115,157,141.59) $3,138,333,676.59

$0.00 $0.00 ($144.36) ($9,763,637.64) ($9,763,782.00) $111,012,388.97

$723,484,924.91 $271,843,107.98 $258,129.92 ($28,238,793.78) ($38,403,615.85) $928,943,753.19

$928,943,753.19 $147,855,373.44 $0.00 ($28,742,885.09) ($79,254,225.23) $968,802,016.31

$968,802,016.31 $0.00 $0.00 ($28,368,914.35) ($81,897,559.76) $858,535,542.19

$858,535,542.19 $0.00 $0.00 ($2,570.28) ($112,581,937.55) $745,951,034.36

$745,951,034.36 $0.00 $0.00 ($2,243.16) ($114,951,873.82) $630,996,917.38

$630,996,917.38 $0.00 $0.00 ($1,911.82) ($67,140,006.45) $563,854,999.12

$563,854,999.12 $0.00 $0.00 ($144.36) $0.00 $563,854,854.76

$598,391.38

$986,533.09

$1,006,263.75

$1,026,389.02

$1,045,174.85

$2,192,578,341.14

$0.00

$31,494.28

$51,922.79

$52,961.25

$54,020.47

$55,009.20

$1,396,879,587.94

$0.00

M CAPITAL & DEVELOPMENT // 47

48 // GREENPOINT ROW

PROJECT DELIVERY

M CAPITAL & DEVELOPMENT // 49

PROJECT SCHEDULE Pre-construction is expected to take 12 months to account for planning, design and pre-approvals. Construction is estimated take four years, which is in line with other mixed-use developments of this scale. The lease-up period will begin once TCO has been granted for both residential and commercial and last for an additional 10 months post construction. The total residential lease-up period of 12 months is an estimate based on in depth research of rental lease-up periods in Greenpoint. On average, new construction projects in Greenpoint tend to lease-up within 12 months of completing construction. The commercial up period.

portion is expected to be complete by Year 6, assuming a 12-month lease-

GREENPOINT ROW Investment Timeline

Feb-27 Jan-27 Dec-26 Nov-26 Oct-26 Sep-26 Aug-26 Jul-26 Jun-26 May-26 Apr-26 Mar-26 Feb-26 Jan-26 Dec-25 Nov-25 Oct-25 Sep-25 Aug-25 Jul-25 Jun-25 May-25 Apr-25 Mar-25 Feb-25 Jan-25 Dec-24 Nov-24 Oct-24 Sep-24 Aug-24 Jul-24 Jun-24 May-24 Apr-24 Mar-24 Feb-24 Jan-24 Dec-23 Nov-23 Oct-23 Sep-23 Aug-23 Jul-23 Jun-23 May-23 Apr-23 Mar-23 Feb-23 Jan-23 Dec-22 Nov-22 Oct-22 Sep-22 Aug-22

Start Date

Duration

End Date

PRECONSTRUCTION

Due Diligence Acquisition

Aug-2022

Aug-22

DESIGN

Demo Drawing

Aug-22

2 Months

Sep-22

Pre-Schematic/Concept Design

Aug-22

1 Months

Aug-22

Schematic Design

Sep-22

2 Months

Oct-22

Design Development

Nov-22

4 Months

Feb-23

Construction Documentation

Mar-23

5 Months

Jul-23

Bid & GC Contract Negotiation

Aug-23

1 Months

Aug-23

Construction Administration

Sep-23

48 Months

Aug-27

Demo/ Excavation/Below Grade Construction Sep-22

12 Months

Aug-23

Above Grade Construction

Jun-23

48 Months

May-27

Sitework & Utilities

Jun-23

10 Months

Mar-24

Superstructure

Jan-24

16 Months

Apr-25

Interior

Feb-25

34 Months

Nov-27

Residential TCO

Aug-27

1 Months

Aug-27

Retail/Commercial TCO

Aug-27

1 Months

Hard Costs- Construction

Sep-22

63 Months

Nov-2027

Design and Construction

Aug-22

64 Months

Nov-2027

CONSTRUCTION

Aug-27

OPERATION

Marketing

Feb-25

43 Months

Aug-28

Residential Lease-up Retail/Commercial Lease-up

Aug-27

13 Months

Aug-28

Aug-27

13 Months

Marketing/ Operation

Feb-25

43 Months

Aug-2028

Total Development Period

Aug-22

73 Months

Aug-2028

Aug-28

FINANCING

Acquisition/Construction Loan Refinance

Aug-22

85 Months

Aug-29

37 Months

Aug-32

INVESTMENT

Hold Period After Stabilization Exit Date

8/31/32

Total Investment Period

50 // GREENPOINT ROW

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54

Jul-32

Aug-32

Jun-32

Apr-32

May-32

Mar-32

Jan-32

Feb-32

Dec-31

Oct-31

Nov-31

Sep-31

Jul-31

Aug-31

Jun-31

Apr-31

May-31

Mar-31

Jan-31

Feb-31

Dec-30

Oct-30

Nov-30

Sep-30

Jul-30

Aug-30

Jun-30

Apr-30

May-30

Mar-30

Jan-30

Feb-30

Dec-29

Oct-29

Nov-29

Sep-29 Aug-29 Jul-29 Jun-29 May-29 Apr-29 Mar-29 Feb-29 Jan-29 Dec-28 Nov-28 Oct-28 Sep-28 Aug-28 Jul-28 Jun-28 May-28 Apr-28 Mar-28 Feb-28 Jan-28 Dec-27 Nov-27 Oct-27 Sep-27 Aug-27 Jul-27 Jun-27 May-27 Apr-27 Mar-27

120 119 118 117 116 115 114 113 112 111 110 109 108 107 106 105 104 103 102 101 100 99 98 97 96 95 94 93 92 91 90 89 88 87 86 85 4 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84

M CAPITAL & DEVELOPMENT // 51

PROJECT MANAGEMENT ON TIME, ON BUDGET

M CAPITAL & DEVELOPMENT is an experienced NYC real estate developer with a reputation for completing projects on-time, on-budget, through clear communication between project investors and team members at every step of the way. Several steps will be taken to control the schedule and budget throughout the duration of the development in order to mitigate all risks within the development team’s control.

PRECONSTRUCTION PERIOD

The 12 month preconstruction period means that a thorough process will be undertaken from schematic design through design development, and onto permitting and construction documentation phases. The adequate preconstruction period ensures that clear, completed and easily implementable construction documents will be produced to guide construction in the field. Clarity of such documents is one of the keys to ensuring on-time completion, with no schedule delays caused by a plethora of RFIs and change orders.

GMP CONTRACT & COST SAVINGS INCENTIVE CLAUSE

Because of the thorough preconstruction process that will lead to a well defined and clearly articulated design, the construction contract will be a Guaranteed Maximum Price contract, ensuring that cost overruns from unforeseen market swings are paid for by the contractors rather than the SPV development entity. A cost savings incentive clause will be included where if Greenpoint Row is delivered under the projected and agreed upon budget, cost savings will be split between the owner and the contractor. This shared savings clause will help motivate the construction manager to undertake stringent cost control measures.

QUALIFICATIONS-BASED CONTRACTOR SELECTION

In addition to selecting a construction manager based on competitive bid pricing, a qualificationsbased selection process will be used to ensure that a highly competent CM is selected. Engaging a highly qualified CM with a proven track record of completing similar projects will allow construction of Greenpoint Row to commence efficiently and according to plan.

CRITICAL PATH SCHEDULE & WEEKLY MEETINGS

The construction manager will be responsible for creating, and continuously updating, a critical path construction schedule. Identification of the critical path will allow for the team to focus on areas of greatest importance to the project’s overall construction progress, helping guide Greenpoint Row to an on-time completion. Weekly meetings with the development, design, engineering and construction teams will help facilitate communication about the project’s schedule, budget, and current progress.

EARLY PROJECT BUYOUT AND MATERIALS PROCUREMENT

Careful analysis of NYC development activity will be conducted prior to the start of construction and throughout in order to identify risks of extreme construction cost escalation or undersupply in select materials. When necessary, the construction manager will buy out high-demand trades early on in the project’s construction, and materials with rapidly inflating prices will be purchased well in advance.

BUILDING INFORMATION MODELING

M CAPITAL & DEVELOPMENT will seek out a construction manager with extensive experience using Building Information Modeling (BIM) technologies. Architectural, structural, and MEP coordination will be done using BIM in advance, and clash detection will be run in the software to eliminate such problems in the office, not in the field.

52 // GREENPOINT ROW

M CAPITAL & DEVELOPMENT // 53

MARKETING & EXIT STRATEGY WATERFRONT INTERCOMMUNAL LIVING

The marketing strategy will be executed by corcoran sunshine for the residential and CBRE for commercial, in partnership with creative and PR agencies. With the assistance of a qualified creative team, Greenpoint Row will be branded as an exciting new development that merges Greenpoint’s industrial past with its innovative and vibrant future. The creative agency will brand the building and create a logo, as well as marketing collateral including renderings, a press kit, brochure, and website. The PR team will focus on a grand opening event, as well as creating promotional items and executing smaller consumer events throughout the construction and lease-up phases. The leasing office will be located in the luxury, northwestern building, and will include a model unit. The advertising strategy will focus on both digital and print advertising, as well as a direct mailer. The $12.2M total marketing budget will ensure best-in-class marketing materials and a timely sellout. Given the diverse product type offerings depending on income level and stage in life, the commonality among all target renters will be that they are looking for a vibrant community that also serves as Greenpoint’s incubator hub for culinary, music, art, etc.

54 // GREENPOINT ROW

CAPITAL STRUCTURE M CAPITAL & DEVELOPMENT proposes a Joint Venture structure whereby the Limited Parter puts in 95% of the required equity. In exchange, M Capital & Development will contribute 5% of the equity and take on the responsibility of developing, leasing, and selling the property.

PLAN A - SALE AT STABILIZED Exit Year Exit Month Exit Date Exit Cap Rate Discount Rate Exit Value - Cap Rate Calc Exit Value - Discount Rate Calc

6 72 8/31/28 4.50% 6.50% $2,521,470,164.61 $2,829,307,865.88 $2,521,470,164.61 $1,123.60 4.00%

Exit Value

$/RSF or Unit Sales Cost Return Metrics Net Profit IRR Equity Multiple Development Yield

Levered Unlevered $991,234,020.38 $1,928,519,322.10 17.54% 44.54% 1.74x 5.35x 7.66%

PLAN B - REFI & HOLD Refi Year Refi Month: Refi Date: Stabilized Value

Holding Period After Refi Exit Year Exit Month Exit Date Exit NOI Cap Rate Exit Value

$/RSF Sales Cost Return Metrics Net Profit IRR Equity Multiple Development Yield

Unlevered $2,214,376,328.46 14.46% 2.61x 8.33%

7 84 8/31/29 $2,521,470,164.61 3 10 120 8/31/32 $120,776,170.96 4.00% $3,019,404,274.06 $1,199.10 4.00% Levered $2,698,699,389.67 26.24% 7.09x

EXIT STRATEGY On August 31, 2027, M CAPITAL & DEVELOPMENT will start leasing out the residential units and commercial spaces units and begins paying down the construction loan. By August 31, 2031, Greenpoint Row will be sold for approximately $3B to an institutional investor such as Avalon Bay, Oxford Properties or Brookfield. The development was modeled multiple ways using a discounted cash flows analysis to determine the maximum value over the holding period of its new owner. The development was valued using the hypothetical sale at stabilization at year 6 and the hypothetical refinance at year 7 and hold until year 10 and a 6.5% discount rate. The latter scenario is shown to derive maximum value. PLAN C If the state of the economy does not bode well with the projected timing of the sale, the development will be sold as 4 different buildings to 2-4 different buyers, more comfortable with a smaller asset.

M CAPITAL & DEVELOPMENT // 55

PROJECT RISKS & MITIGATIONS

UNDER-PERFORMING RETAIL MARKET The retail market is generally under-performing due to the growth of online retail and a sharp increase in retail rents over the past 5 years.

MITIGATION The retail space is not the primary focus of the overall development, but it is viewed as an amenity that will activate the streetscape and attract residents. M Capital & Development is underwriting conservative retail rents, in line with where retail leases are being executed today in Greenpoint.

CONTROLLING HARD COSTS

MITIGATION

The underwritten hard cost of $826M may be difficult to maintain while achieving a construction quality that will be attractive to a diversity of renters and patrons.

To mitigate the risk of unplanned cost overruns, a contingency of 10% was included in the underwriting model to account for change orders and select upscale design elements. Stringent emphasis must still be placed on only adding cost where there is corresponding value, such as for value engineering and floor plan optimization.

CONSTRUCTION COST ESCALATION

MITIGATION

Due to COVID-19, construction costs have risen as much as 20% due to operational delays, social distancing measures, and other disruptions that have caused materials to be more expensive.

Although construction cost inflation of 5% was underwritten, commensurate with the annual construction inflation since 2013, there is still a risk that costs may escalate at a faster rate. Indications of a peak market underpin the belief that costs will not grow much faster than 5%, but to err on the side of conservatism, early project buy-out and advanced early project buy-out and advanced procurement of volatile materials will be emphasized where necessary to mitigate runaway hard cost escalation.

OVERSUPPLIED MARKET

MITIGATION

The Brooklyn waterfront is becoming oversaturated with newly erected residential towers and mixed-use developments.

By offering a truly unique product and community, Greenpoint Row will generate a incomparable offering to the market that will bring people to the site regardless of other nearby options. The architect, interior designer, and tenants will sign a non-compete agreement that will not allow them to open another store or work on another project in Greenpoint or on the Brooklyn waterfront.

56 // GREENPOINT ROW

M CAPITAL & DEVELOPMENT // 57

WATERFRONT INTERCOMMUNAL LIVING

M CAPITAL & DEVELOPMENT Prepared by Maxwell Djakasaputra (‘21)