The Dundas Edward Centre Master Plan

In this document

01. Our Big Idea 02. Detailed Design 03. Highest and Best Use 04. Planning Rationale 05. Construction 06. Sustainability 07. Schedule 08. Economic Essay

01. Our Big Idea We identified a potential to add density in a way that makes use of the existing and improves upon it: a new building enlarges the floor plate of 180 Dundas W from 11,000 sq ft to a more desirable 19,000 sq ft, and continues up as a slender residential tower.

Naama Blonder, OAA Misha Bereznyak, OAA, MUDS Mark Gaglione, P.Eng Brett Llewellyn-Thomas, Development Manager

Retail

Office

Residential

180 Dundas W

180 Dundas W

02. Detailed Design New Residential Tower

• Positioned above commercial uses to optimize suite views and property values.

University Ave

Chestnut St

Centre Ave

123 Edward Street

• A sequential modernization and conversion to “Office Condos” will take place as existing leases expire

Central Atrium

• Underground connectivity to future PATH extension beneath 481 Dundas • 3-storeys tall, unique character, glulam timber, food and beverage atrium

Dundas St W

180 Dundas W (Existing) New Building

North

• Extends the office floorplate of 180 Dundas office from 11,000 sf to a more desirable 19,000 sq ft.

• Hybrid Timber-Steel-Concrete structural approach achieves construction efficiency as well as aesthetically striking modern office spaces.

• Facade Retrofit - resulting in annual energy savings and increased curb appeal, without tenant displacement.

• Public realm improvements at street level & grade re-alignment of storefront retail

Built Form:

• Retain both existing office buildings: maximizes financial and environmental benefits and minimizes disruption.

• Add a tall building, attached to 180 Dundas St W: extends the floor plate of the office components to a larger and more attractive size, adds residential in a slender tower form on top.

• Create a spectacular glazed atrium space, integrating the PATH: maximizes retail potential, provides semi-public space for the community.

Public Realm The project contributes to the public realm in many ways: 1. Grade-related retail and streetscape improvements on Dundas St W and Centre Streets 2. Extension of the PATH system 3. Publicly accessible glazed retail atrium space

View from the Intersection of Dundas St W and Centre Ave

Land Use:

• Convert 123 Edward to condo office: generates revenue and cash-flow without major alterations.

• Use the lower part of the new tower for office: improves value of existing office by extending the floor plate; the distance that is insufficient to build a separate tower is made into an advantage. Attractiveness for employment justifies the larger floor plate to the City.

• Use the upper towers floor for residential: makes use of the smaller floor plates and the best views for residential.

Construction:

• Utilize a hybrid mass timber structure in the new tower to accomplish a variety of competing objectives including construction efficiency, branding and sustainable development. The structure will be a mix of conventional concrete cores, a steel gravity structure and mass timber floor panels.

• Re-clad the existing buildings with minimal disruption to their structure to increase building performance (energy, daylight, acoustic, and durability) and appeal.

Development Activity in the Area

03. Highest

Subject Site / Proposal Proposed Approved

and Best Use

Under Construction

The guiding principles in finding the highest and best use of the site were: Achieving the best value for the site in terms of: • the project brand • the combination of uses • the quality of rentable/leasable space • and density, while making maximum use of the existing, and minimizing: • adverse impacts to the urban environment, • negative ecological impact, • disruption to the tenants

Address

Project Name

100 Edward

595 Bay

n/a

Atrium on Bay: Expansion

Proposed

Proposed

We considered many alternatives during the process:

Status

Type

Residential

In all the scenarios, we retained 180 Dundas W since it was too valuable to demolish, and replaced the parking garage with a higher value use.

Number of Storeys Max Height (m) Number of Units FSI Gross Floor Area (m2) Gross Floor Area (sq.ft) Parking Spaces Parking Ratio (/1000sf)

22 19 72.2 79.9 526 ‐ 9.12 11.06 36,850.4 138,822.8 396,654.0 1,494,274.7 367 525 0.93 0.35

Office

20 Edward Panda Condos Proposed / Launched

363 Yonge

33 Gerrard

n/a

n/a

n/a

n/a

n/a

Proposed

Proposed

Proposed

Proposed

Proposed

Residential Residential Residential 30 107 560 15.40 46,154.2 496,799.2 255 0.51

250 415 Yonge Dundas W

8 Elm

234 Simcoe

292 Dundas W

193 McCaul

481 University

11 Centre Ave

Artist Alley Proposed / Launched

n/a

n/a

n/a

New Toronto Courthouse

Proposed

Proposed

Proposed

Approved

Mixed Use Mixed Use (Office and (Office and Mixed Use Rental Res) Rental Res) Residential Residential Residential

80 98 88 259.5 349.9 285 469 957 2138 45.50 25.90 16.64 29,965.0 97,386.0 155,953.0 322,540.3 1,048,253.2 1,678,662.5 0 340 1439 0.00 0.32 0.86

41 239.3 450 24.70 53,064.7 571,183.1 73 0.13

52 183 517 20.32 46,959.0 505,462.0 131 0.26

39 127.9 902 10.83 73,050.0 786,302.8 322 0.41

38 128 382 15.50 25,413.0 273,543.0 90 0.33

19 64.4 266 12.16 19,502.0 209,917.6 81 0.39

Mixed Use Institutional 55

70,141.9 755,000.0 378 0.50

22 109 n/a 11.10 73,531.0 791,481.1 100 0.12

Advantages:

Disadvantages:

• Proof of concept in 480 University Avenue.

• Retain both of the existing buildings.

• 180 Dundas Street can continue functioning as it is (except for the introduction of residential elevators).

• Atrium space on Dundas Street.

• The GFA is much lower than the other schemes because the height limit is similar for a new building or for the addition.

• The addition on top of the existing building is very expensive, but it is not necessary to achieve the maximimum density since there is room for a new building on the site.

• The residential use has higher value than Alternative 3: 123 Edward is office, contributing to the value of the project. converted to residential instead • The narrow floor plate of 123 Edward is well of office condo (otherwise similar suited for residential use, and the high ceilings to the selected scheme) and the existing office use would contribute to the quality and brand of the residential (similarly to industrial conversions).

• The conversion from office to residential is very expensive is not justified by the sales price.

• The office condo conversion allows the building to operate continuously without disruption to tenants and without losing rent during the renovation.

• The building is relatively low at 15 storeys, and suites in these low levels would not be very desirable when overlooking Edward Street to the south or looking into 180 Dundas to the North.

• While the shallow and small floor plate is not optimal for large tenants, it is well suited for small tenants.

Alternative 1: Remove 123 • The residential component, which is the more • The financial and environmental costs Edward St. to make room for a profitable, was a higher percentage of the total of demolishing 123 Edward and relading new tower-and-podium building.

GFA. it with a new building are much higher The lower portion would replace • The organization of the towers allows a little than the gains from a larger residential the office GFA of 123 Edward better views and daylighting. component and better building spacing. with office and retail in a large • The area under 123 Edward St. would become • The public open space facing Edward Street podium, while the slender tower available to build underground parking. is not adding much value to the city or the above would be residential. development.

It would create an open space facing Edward Street.

The resulting GFA was close to the selected scheme.

Alternative 2: Add residential on top of 180 Dundas. Replace the garage with an opens space or a glazed atrium space.

Advantages:

• Full retention of ownership, with increased Alternative 4: 123 Edward rent potential once the rest of the project is is retained as rental office realized. (otherwise similar to the selected scheme)

Disadvantages:

• The shallow and small floor plate cannot generate the same level of income as contemporary offices, however office condo ownership is desirable and affordable for the small tenants.

• Renovation is necessary to stay up-to-date, but it is harder to recoup the investment with a rental property.

• Loss of cash revenue to finance the other parts of the project.

Alternative 5: Rental residential • Full retention of ownership, with potential instead of condo residential for increased rents as the area is gradually (otherwise similar to the selected transformed by other redevelopment projects scheme) on Dundas, streetscape improvements, the extension of the PATH, and the emergence of the revitalized Yonge Street.

• The % of equity required for a rental property makes it harder to finance the project.

• More exposure to volatility in the residential market, compared to the locked-in sale prices of condo suites.

Alternative 6: Conventional concrete/steel structure instead of wood-steel hybrid

• Longer construction duration, resulting in extended duration of carrying costs.

• With a conventional structure there is little to differentiate this property from neighbouring developments.

• A heavier building results in more costly below grade foundation work.

• Traditional methods do not capitalize on the benefits of large format prefabrication.

• Subcontractor familiarity. The local subcontractor market is very experienced with conventional construction methodologies and therefore this scope could be completed by a large number of subcontractors.

• Streamlined approval process due to large body of precedent projects in planning jurisdiction.

04. Planning Rationale

City Hall Silhouette New Toronto Courthouse

3

Max Additional Height Above 180 Dundas Max Height - New Building

10

ty rsi

e Av

3. The building height was limited to protect the view corridor to the Toronto City Hall.

4. The tall building is setback from the street.

5. A street frontage with vibrant retail replaces the unwelcoming structured parking garage.

6. A new semi-public space at the street level 7. Sustainable development approach: building re-use, construction methods and improvements to the buildings’ energy efficiency.

8. Expansion of the PATH network 9. Addition of employment areas beyond what is required by the city (only maintaining/replacing the existing would have been required): makes the downtown attractive for business, creates jobs that are accessible by sustainable means of transportation, and increases the tax base.

10. Adds residents to an area with existing infrastructure.

9

ive

Un

2

4

7

1

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e Av e tr en

5

1. A mid-rise street-wall helps define Dundas Street and Centre Street.

2. The podium is responsive to the height of the historic building at 481 University.

6

e Ch

st

t nu

St

Du

nd

as

St

W

Where the proposal deviates from standard policies, this is justified by site-specific considerations, and the intention of the policies is still met: • Attaching the new building to 180 Dundas W creates a combined floor plate larger than the maximum 750 m². However, larger sizes are generally permitted for non-residential uses. In addition, since the building is located on the north side of the street, the larger size of the tower will not cause adverse shadows on Dundas Street.

• The floor plate of the residential component is limited to 750 m² per the Tall Buildings Urban Design Guidelines.

(It might have been possible to argue that a larger floor plate is justified by other positive aspects of the project, but design considerations did not allow for a significantly larger size anyway.)

• The new building and 123 Edward are only 12 m apart, less than the 25 m separation that is required by the Tall Building Design Guidelines. However, the buildings are on the same site, contain non-residential uses in the parts that overlook each other, and only 5 storeys (levels 12-16) comprise the tall part.

• Approximately 400 parking spaces are required by zoning by-law while the development only provides 90. Meeting this requirement is impossible when removing the parking structure (which is an eyesore), working with a small building footprint, and introducing the

PATH connection. Other downtown projects were approved with minimal or no parking, especially when building on top of existing structures.

• To compensate for the low parking ratio, the development will provide a car-share station and generous bike parking facilities.

• Timber structures exceeding 18m in height (likely to be extended to 10 or 12 stories in the near future) are not covered by an Acceptable Solutions in the Ontario Building Code. The height of the project will necessitate pursuing an Alternative Solution to demonstrate that

Privately-Owned Public Parking in the Area

the design meets the performance requirements. To reduce regulatory resistance, the proposed typical floor structure utilizes concrete and steel in a traditional configuration and only swaps the traditional composite steel deck for a composite mass timber deck.

05. Construction Reclad of 180 Dundas

To improve energy performance and overall curb appeal, the existing strip window glazing will be replaced with a higher performing structurally glazed unitized system. In opaque sections of the facade, an insulation upgrade will be undertaken, the precast transitions will be replaced and the existing precast will undergo a cleaning and sealing procedure (to prevent staining as observed on the existing south facade).

The façade retrofit will proceed from bottom-up with utilization of a series of swing stages and temporary construction access platforms erected above street level.

A bottom-up methodology for this tower offers some benefits to our project in terms of schedule and tenant comfort:

Schedule: The bottom-up approach allows the reclad to progress in advance of the neighboring new building construction. Select areas of the western facade can be demolished and prepared for the floor plate expansion in advance of the new tower construction.

Tenant Comfort: Advancing the recald in advance of the new-build allows for acoustic measures to be installed on the western facade to ensure minimal disruption to existing tenants.

It is anticipated that the reclad work will be completed largely from the exterior from swing stages to minimize tenant floor disruption.

Renovation of 123 Edward Street

The existing vertical strip glazing on 123 Edward appears to be nearing the end of it’s useful life. Our approach is to remove the existing glazing elements and reinstalling a modern, thermally broken curtain wall system.

Though the vertical precast strips and slab edge undulations will remain in place, we anticipate the new curtain wall system will provide significant performance and curb appeal upgrades.

In contrast to the 180 Dundas retrofit, this tower will follow a top-down sequence, providing some ancillary benefits with respect to costs and safety.

Costs: Deconstructing from the top down would likely result in an easier (cheaper) sequential demolition as the system has been designed to connect/disconnect in this direction.

Safety: As demolition work would be below the installation of the new curtain wall, there would be a reduced safety risk. In addition the potential of damaging the new curtain wall would be greatly reduced.

Estimated Construction Schedule

New Construction of Hybrid Timber/Concrete/Steel Structure

This is particularly important to this site as it is situated adjacent to operational commercial towers.

Headroom and Bay Size - Utilizing a steel Concrete Cores: beam structure off the core walls enables Due to the building height, and the AHJ Shorter Construction Duration - Without the need for the preservation of headroom available approval process in Toronto, a conventional concrete elevator core will be utilized. The reshoring beneath the leading edge of construction, within the office and also maintains an open floor plate without interior columns. An all concrete core will be advanced approximately the construction durations of a mass timber timber structure would include significantly 6 floors prior to the remainder of the steel/ structure are reduced, allowing trades to begin timber structure to ensure a safe separation subsequent tasks sooner than traditionally. deeper beams and therefore infringe on Safer and Quieter Site - With a higher level of headroom. distance. prefabrication than conventional steel or concrete buildings, more of the work happens off-site in Mass Timber/Steel Floor System a fabrication shop. With a higher percentage of A combination of a structural steel frame and a mass timber floor assembly will make work happening indoors, in climate controlled, safe up the gravity system of the proposed new facilities, there is a reduced need for onsite labor.

Mass Timber Construction Detail

tower. In addition to the aesthetic and sustainability benefits offered by this hybrid timber/steel assembly, it also offers various construction and functional efficiencies:

International House Sydney by Tzannes

06. Sustainability The project will be developed along principles of sustainability to contribute to reduced ecological footprint, improved social contribution, building brand and operational costs savings.

Some major sustainable aspects include: • Central and accessible location • Efficient land use and building on previously developed land • Eliminating demolition by the re-use of the existing buildings • Minimal provision of parking • Re-cladding of the existing buildings

Section 1-1: Glazed Atrium Space

• Adjustable shading devices for energy savings and comfort • The use of a hybrid concrete-wood structure (see below)

Certification

To guarantee that the design intentions do not fall through during the project development and to reassure potential buyers and tenants about the sustainability of the building, the project will pursue the following certifications: (The construction price premiums, where applicable, were incorporated in the pro-forma.

LEED Core & Shell Gold for the rental office (new building and 180 Dundas) LEED Core & Shell Gold for the condo office LEED Core & Shell Certified for the retail LEED Silver for the residential condos WELL Core & Shell Certification for the rental office component.

WELL is a certification system similar in structure to LEED, intended to advance health and well-building in building.

The Use of Mass Timber

The use of mass timber improves the carbon footprint of the building by both storing carbon and avoiding carbon from being released in the production of steel and concrete. The proposed development will store 1,080 tons of CO2 and avoid releasing 2,290 tons CO2.

Timber is a renewable material and the quantity of wood required for the project can be can be grown by North American forests in 4 minutes.

K8, Kyoto, Florian Busch Architects

07. Schedule Introduction

The proposal spans three phases in seven years from 2019 to 2025. Design, sales and marketing occur during the first two years.

Construction of the new atrium, office and residential tower during the third to fifth. The final two years see registration of the residential condominiums and multitenant occupancy stabilization. Renovations span the first two phases: interior work aligning with vacancy and lease rollovers; exterior with new construction. Final asset disposition meets fund expiry in 2025.

Existing tenants leases are honoured, and each can be presented the opportunity to purchase in 123 Edward Street or lease in the multi-tenant space. Suites are renovated as leases expire and move into sales or leasing. All existing tenant parking will be compensated and relocated to the nearby publicly available lots during demolition and construction in the second phase.

Each building targets specific users: expanded floorplates in multi-tenant space for larger institutions. Niche users will be inclined to buy smaller, more financially available suites at 123 Edward Street.

Phase-1: 2019 – 2020

Begins with acquisition and ends with issuance of construction permits. Includes design development, sales and marketing, and the start of interior renovations for the existing buildings. The project seeks to secure a renovation loan facility with additional equity and office condominium presale deposits to fund renovation expenditures.

Design Development: Architecture, Engineering, Planning, Drawings and Permitting.

Sales and Marketing: Launch Office Condominiums at 123 Edward Street; Launch Residential Condominiums. Preleasing for multitenant new construction and lease rollovers.

Renovations: Interior renovations 123 Edward and 180 Dundas - vacant suites, common area; sustainability / equipment modernization (mechanical, HVAC, electrical, plumbing etc); elevator modernization; life safety.

Phase-2: 2021 - 2023

Majority of site development occurs during this phase. Begins with garage demolition, covers new construction up to the start of residential occupancy. The acquisition mortgage is refinanced, and the office condominiums register. Facade renovation begins as demolition completes. Exterior preparation for the connection between towers lead the atrium and new construction upwards.

Finance: Refinance Mortgage; Construction Facility; Deposits; Construction and Renovation Equity; Registration of Office Condominiums; Close Renovation Facility.

Renovations: Façade remediation. Below grade renovation to align with new construction; Interior Renovations Complete.

New Construction: Demolition; New Garage; Below grade and PATH connection; At-grade commercial; Atrium; Podium; Office; Connection to retained structures; Residential; Site Improvements.

Phase-3: 2024 - 2025

Begins as residential construction completes and ends with the disposition of remaining multi-tenant space. Residential registration triggers positive cash-flow to pay down construction and renovation facilities.

Stabilized multi-tenant occupancy in 2025 for asset disposition. Sale pays down the outstanding balance of the mortgage and the proceeds pass to Fund; coincides with target fund expiry in 2025.

Occupancy : Residential condominium registration and unit closings; repay construction facility with proceeds. Stabilize leasing occupancy in multi-tenant office.

Disposition: Sale of remaining multi-tenant asset; close mortgage; proceeds for Fund to align with Expiry.

2019 2020 2021 2022 2023 2024 2025

Design Development Design: Architecture & Engineering Marketing Program Planning & Permiting Issuance Sales Launch: Residential Condos Sales Launch: Office Condos Construction and Renovation Suite Renovation: Ongoing Facade Retrofits (Staggered)* New Construction* Existing Tenant Rollovers (for Suite Renovation)

Duration (months) 18 18 24

Sequence

60 20 34

*See 05 - Construction

PHASE 1

PHASE 2

PHASE 3

2019 - 2020

2021 - 2023

2024-2025

PRESALES

REGISTRATION

DISPOSITION

Drawings & Permitting Marketing & Sales

Design Development Condominium Sales

1

Launch Office Condos Launch Residential Condos

4

Office Condo Registration

8

Residential Condo Registration

Commercial Leasing

2

Pre-Leasing

5

Tenant Rollover Pre-Leasing

9

Stabilize Occupancy Asset Disposition

Office Renovations

3

Office Renovations

6

Office Renovations

7

Garage Demolition New Office & Residential

$

Refinanced Mortgage Construction Loan

New Construction Financing

$

Equity & Deposits Renovation Loan

$

Residential Closings Multi-Tenant Office Disposition

08. Economic Essay Introduction: The proposal seeks to maximize returns while minimizing additional capital needed to implement redevelopment. Returns are maximized through investment in renovations and new construction. Multi-tenant space designed to AAA standards to compete with new financial core stock: sustainability; features and finishes; functionality; innovation; connection to PATH.

Occupancy Preleasing & Tenant Rollovers (For Sale /Lease) Office Condo Occupancy Office Condo Registration Residential Condo Occupancy Residential Condo Registration Stablilized Multi-Tenant Occupancy

48 08

Finance Acquisition: Primary Mortgage Refinanced Mortgage

36* 48

Renovation Facility (Equity, Debt) Construction Facility (Equity, Debt) Operating Facility (Debt or Equity)

48 36 66

Residential Deposits Office Deposits Equity Infusions Equity Returned *Remaining per case

Proposed Schedule

Maintaining existing tenant occupancy reduces income disruption and additional capital requirements. Retention of structure reduces demolition costs and scope of site plan approval process. Renovation and construction facilities secured by presale deposits and additional equity estimated at $66,000,000. This roughly doubles the equity stake in the complex alongside acquisition.

Office condominium registration in 2023 is the first redevelopment revenue and contributes to renovation facility repayment.

Residential condominium registration in 2024 funds repayment of remaining renovation and construction facility. Tenant rollovers peak in 2022. Stabilized occupancy and asset disposition in 2025 to align with Fund expiry. Net annual profit is returned to investors over the final three years of the development.

Equity: Additional equity infusion of $34,000,000 during Phase-1 and $32,000,000 during Phase-2.

Credit: Five loan facilities: acquisition mortgage; renovation loan; refinanced mortgage; construction loan; operating facility. Mortgage refinanced at 4.5% to reflect increasing rate environment. Other loans at 5.0%.

Sales & Deposits: Presales of 238 residential units in 2019-2020. Presales of office condominiums in 123 Edward Street: 18,000 sf available for immediate renovation and occupancy; 57,000 sf available in 2021; 63,000 sf in 2022.

Leasing: Preleasing for new multi-tenant ongoing; stabilized occupancy for 2025.

Existing tenants either negotiate purchase, are terminated, or re-lease in the new multi-tenant at higher market rates. Parking is relocated at neighbouring lots and tenants compensated during construction.

Revenue: Multi-tenant occupancy targeting rents at existing financial core AAA rates, marginally below new construction financial core. Positioning acknowledges sites increased distance from Union central.

Residential units targeting premium pricing due to location proximity to financial core, hospital complexes, subway and transport, lifestyle amenities, government and education campuses. Three tiers of units: Penthouse Suites, Teir-2 Suites, Tier-1 Suites.

Separated by average unit sizes; ceiling heights; features and finishes etc.

$66MM 2019-2020 Aditional Equity

$34MM 2019-2024

$530psf 2019-2025

Operating Facility

Total Costs

$57MM 2019-2023

$246MM 2019-2023

Renovation Loan

Hard Costs

$83MM 2021

$90MM 2019-2023

Refinanced Mortgage

Renovations

$124MM 2021-2024

$156MM 2021-2023

Construction Loan

New Construction

$3MM 2021-2023

Section 37 Contributions

$29.93psf 2025

Stabalized Rent (NOI $psf)

$20MM 2019-2023

From Maintaning Existing Tenant Income

65% 2019-2025

Increased Multi-Tenant NOI ($psf)

$12MM 2021-2023 Atrium

$246MM 2021-2023

$1,082psf 2019-2020 PATH & Below Grade Avg. Residential Condo Price

$741psf 2019-2020

Average Office Condo Price

$90MM 2021-2022 Facade Renovation

$13MM 2019-2021 Sustainability Upgrades

$360MM 2025

Disposition Income

Expenses: Hards costs estimated at $247,000,000; soft costs an additional $36,000,000 excluding acquisition and facilities. Multi-tenant facilities expenses deducted from gross rents to show net operating income (rate / square foot).

Section 37 via off-site parkland dedication and community improvements.

Capital: Bulk of additional capital needed during second phase, between 2021 and 2023. $37,000,000 of renovations in the first phase ; $53,000,000 in the second.

New construction of $156,000,000 in phase 2. Registration of office condos provide inflow of $102,000,000 in the second phase.

Residential condos totalling $150,000,000 to register at start of the third phase, in 2024.

Parking revenue is maintained during first phase, disrupted in second, and continued in the third as construction completes.

Atrium, PATH, Facade, Sustainability: Key features; Atrium anticipated at $564psf buildable, including mezzanines and roofed areas. Below grade commercial and future PATH connections anticipated at $20,000,000 or $729psf buildable. Combined facade renovation at $28,000,000. Upgrades of $13,000,000 to reach sustainability targets.

Disposition: Multi-tenant occupancy stabilization and resale in 2025 at anticipated exit cap rate of 4.5%, a 50bps improvement from acquisition. Multitenant space to increase from $360psf at acquisition to $667psf at disposition.

Budget Summary Overveiw of Redevelopment Budget; 7-Year Cash-flow Condensed into 3 phases.

Returns and Product Offering Forecasted Profit to Fund; Overview of Major Revenue.

Product Offering

Returns Phase 1 Presales 2019 ‐ 2020 238 units 37 units 416,603 sf

Residential Condo Sales (Units) Office Condo Sales (Units) Total Complex Square Feet (Leasable) 180 Dundas Sreet West (Multi‐Tenant) New Construction (Multi‐Tenant) 123 Edward Street (Office Condos) New Constrction (Residential Condos) REVENUE Unit Sales Residential Condominiums: New Construction (Registration & Closing) Office Condominiums: 123 Edward Street Renovation Conversion (Registration & Closing) Net Commercial Leasing Income: Office & Retail (Operating Costs Included) 180 Dundas Street West 123 Edward Street New Construction: Office, Retail at and Below Grade Other Income Asset Disposition (Net of Closing Costs @ 4% of Revenue; Cap Rate at 4.5%) Parking Revenue Total Revenue

Phase 2 Registration 2021 ‐ 2023

‐ ‐ 400,509 sf

Phase 3 Disposition 2024 ‐ 2025

Total

‐ ‐ ‐

278,212 sf ‐ 138,391 sf ‐

‐ 261,493 sf ‐ 139,016 sf

‐ ‐ ‐ ‐

2019‐2025 238 units 37 units 817,112 sf 278,212 sf 261,493 sf 138,391 sf 139,016 sf

34% 32% 17% 17%

$0 $0

$0 $102,537,150

$150,374,374 $0

$150,374,374 $102,537,150

$1,082 psf $741 psf

$9,591,954 $4,080,000 $0

$13,171,966 $3,106,665 $3,711,190

$13,059,355 $0 $14,737,187

$35,823,275 $7,186,665 $18,448,376

$129 psf $52 psf $71 psf

$0 $2,600,000 $16,275,993

$0 $0 $122,533,036

$359,935,013 $5,099,555 $543,209,533

$359,935,013 $7,699,555 $682,018,563

$667 psf $9 psf $835 psf

‐$25,726,239 ‐$11,268,446 $0 $0 $0

‐$35,384,543 ‐$18,021,037 ‐$141,857,753 ‐$11,542,844 ‐$2,800,000

$0 $0 $0 $0 $0

‐$61,110,783 ‐$29,289,482 ‐$141,857,753 ‐$11,542,844 ‐$2,800,000

‐$220 psf ‐$212 psf ‐$354 psf ‐$29 psf ‐$7 psf

‐$150,000,000 ‐$5,549,203 $0 ‐$1,705,046 $0 ‐$739,894 ‐$194,988,828

$0 ‐$8,010,837 ‐$3,500,000 ‐$4,101,486 ‐$2,635,463 ‐$4,192,124 ‐$232,046,086

$0 $0 $0 ‐$6,014,975 $0 $0 ‐$6,014,975

‐$150,000,000 ‐$13,560,040 ‐$3,500,000 ‐$11,821,507 ‐$2,635,463 ‐$4,932,017 ‐$433,049,889

‐$360 psf ‐$17 psf ‐$4 psf ‐$14 psf ‐$3 psf ‐$6 psf ‐$530 psf

DEVELOPMENT INCOME

‐$178,712,835

‐$109,513,050

$537,194,559

$248,968,674

$305 psf

$90,000,000 $0 ‐$4,408,596 ‐$7,113,557

$0 ‐$90,000,000 ‐$2,337,421 ‐$3,423,656

$0 $0 $0 $0

$90,000,000 ‐$90,000,000 ‐$6,746,017 ‐$10,537,213

$216 psf ‐$216 psf ‐$16 psf ‐$25 psf

$0 $0 $0 $0

$83,253,983 $0 ‐$4,359,646 ‐$6,869,489

$0 ‐$74,133,494 ‐$4,760,843 ‐$6,468,293

$83,253,983 ‐$74,133,494 ‐$9,120,489 ‐$13,337,782

$200 psf ‐$178 psf ‐$22 psf ‐$32 psf

$3,261,956 $0 $0 ‐$163,098

$53,405,580 ‐$56,667,536 $0 ‐$6,677,112

$0 $0 $0 $0

$56,667,536 ‐$56,667,536 $0 ‐$6,840,210

$136 psf ‐$136 psf $0 psf ‐$16 psf

$0 $0 $0 $0 $81,576,705

$123,795,233 $0 $0 ‐$10,006,355 $80,113,580

$0 ‐$123,795,233 $0 $0 ‐$209,157,863

$123,795,233 ‐$123,795,233 $0 ‐$10,006,355 ‐$47,467,577

$309 psf ‐$309 psf $0 psf ‐$25 psf ‐$58 psf

‐$97,136,130

‐$29,399,469

$328,036,696

$201,501,097

$247 psf

NET PROJECT CASHFLOW

EQUITY Asset Acquisition New Construction: Residential, Office, Retail at and Below Grade, Underground Parking Renovation: 123 Edward Street & 180 Dundas Street Total Equity Deficit Operating Line‐of‐Credit: Advance Operating Line‐of‐Credit: Repayment Loan Outstanding Interest @ 4.5% OPERATING CASHFLOW AGGREGATE CASHFLOW Deposits Residential Condominiums: New Construction Office Condominiums: 123 Edward Street Renovation Conversion Total Equity Invested Gross Return Net Return Total ROI (%) Annualized Return Project IRR

$126,000,000 $325,000,000 $199,000,000 158% 29% 15% 19%

Total Revenue ($$) Total Revenue ($psf )

$682,000,000 $835psf

Residential Condo Revenue Office Condo Revenue Multi-Tenant Disposition Revenue

$1,082psf $741psf $667psf

$60,000,000 $0 $33,732,729 $93,732,729

$0 $32,405,364 $0 $32,405,364

‐$60,000,000 ‐$32,405,364 ‐$33,732,729 ‐$126,138,093

$0 $0 $0 $0

$144 psf $233 psf $81 psf $115 psf

$3,470,845 $0

$29,893,449 ‐$31,340,331

$600,564 ‐$2,624,528

$33,964,858 ‐$33,964,858

$42 psf ‐$42 psf

‐$223,632

‐$2,428,719

$0

‐$2,652,351

‐$3 psf

‐$156,188

‐$869,705

$199,874,639

$198,848,746

$243 psf

‐$156,188

‐$1,025,893

$198,848,746

$198,848,746

$30,074,875 $2,574,740

$0 $17,932,690

$0 $0

$30,074,875 $20,507,430

‐$126,138,093 $324,986,839 $198,848,746 158% 14.5% 19.1%

Residential Condo 238 Units $1,050psf - $1,300 avg. list 525sf - 1100 sf avg. size 22% of Revenue

Office Condo 37 Units $700psf - $775 avg. list 2500sf - 9000 sf avg. size 15% of Revenue

Leasing (Stabilized Rental Rates*) 2019 : 417,000 sf; $18.19psf 2025 : 510,000 sf; $29.93psf 9% of Revenue

Multi-Tenant Asset Purchase/Sale 2019 : $150,000,000 (5.0% cap) 2025 : $335,000,000 (4.5% cap) 53% of Revenue

*Rental rates presented as Net Income Rates per Competition Breif assumptions. Office & Retail Weighted Average

Capital and Assumptions Leveraged Capital Flows; Major Assumptions for Budget.

Capital Summary

DEVELOPMENT EXPENSES Hard Costs 180 Dundas Street West: Renovation 123 Edward Street: Renovation New Construction: Residential, Office, Retail at and Below Grade, Underground Parking Atrium Garage Demolition Soft Costs Asset Acquisition (January 2019 for Budget) Design Development: Including Architecture & Engineering; Planning Fees & Permitting Section 37: Public Realm Community Improvements ; Offsite Parkland dedication Sales and Marketing (Commission Included) Parking Compensation During Construction Other Expenses (Operating, Management, Contingency) Total Development Costs

FINANCING Property Financing Primary Mortgage (Assumed 4.0% Int., 25yr amort, 60% LTV) Loan Advance Loan Repayment Principal Payments Interest Charges Refinanced Primary Mortgage (Assumed 4.5% Int., 25yr amort, 60% LTV) Loan Advance Loan Repayment Principal Payments Interest Charges Construction Financing 180 Dundas Street ‐ 123 Edward Street: Renovation Loan Loan Advance Loan Repayment Principal Payments Interest Charges New Construction: Office and Residential Principal (Loan Advance & Repayment) Loan Repayment Principal Payments Interest Charges Total Financing

Total Equity Invest Gross Return Net Profit Total ROI Profit Margin Annual Return Development IRR

Equity Invested*

Major Assumptions Refinance Mortgage

$126,000,000

$83,000,000

Other Loans

$214,000,000

Phase 1

Phase 2

Equity Advance Mortgage Advance Loan Advance (ex. Mtg)

$94,000,000 $90,000,000 $7,000,000

$32,000,000 $83,000,000 $207,000,000

$0 $0 $0

Equity Returned Mortgage Repayment Loan Repayment (ex. Mtg)

$0 $0 $0

$0 $83,000,000** $89,000,000

$325,000,000 $74,000,000*** $125,000,000

Phase 3

<> Acquisition Year = 2019 for underwritting and return purposes. <> Refinance primary Mortgage at 4.5% interest. <> Other Loans @ 5.0% interest. <> Rental rates presented as Net Income Rates per Competition Breif assumptions ; operating costs netted out. <> Multi-tenant exit cap rate at 4.5% in 2025. <> Multi-Tenant New Construction Office Stabilitized net income at $28.65; competitive to AAA Downtown New Construction. <> 84% Floorplate Efficiency residential; 90% Office ; 85% Atrium.

*Including Mortgage Equity **Refinance ***Outstanding Balance

Stats and Target Market Project Statistics Post Redevelopment; Target Occupants.

Completed Project Stats

Target Market

Total Prject Size - GFA (inc. Atrium) Total Project Size - Leasable (sf ) Multi-Tenant Commercial Area (62%) Office Condominium Area (18%) Residential Condominium Area (20%)

962,110 sf 817,112 sf 539,705 sf 138,391 sf 139,016 sf

Multi-Tenant Commercial Area (Leasable): Office Atrium: At-Grade Retail & Mezz PATH: Below Grade Retail

497,430 sf 14,827 sf 27,448 sf

Atrium GFA

20,451 sf

Total Residential Condominium Units Total Office Codominium Units

238 units 37 units

Residential Product Mix 1-Bedroom 2-Bedroom 3-Bedroom+

40% 45% 15% Levels 24 - 35 57%

Tier-2 Collection: Premium Spec.

Levels 36 - 43 38%

(9’ ceilings, hardwood floors , granite counters, upgraded appliances...)

Penthouse Collection: Platinum Spec

(10’ ceilings, hardwood floors, stone counters, upgraded appliances...)

Medium - Large Users (20,000 sf +) Anchor Tenant 100,000 sf - 150,000 sf Government & National/International Business Industries: Medical, Government, Finance, Law Education, International Non-Profit, International Agency;

Office Condominium Small - Medium Users (1,000 - 20,000 sf ) Anchor Purchaser 20,000 sf - 30,000 sf Local to National Business Community Industries: Medical, Finance, Law, Education, Resources, Real Estate; Personal Services; Industry Associations;

Multi-Tenant Retail

Tier-1 Collection: Base Spec

(8’6’’ Ceilings, Laminate floors, laminate counters, base applicances... )

Multi-Tenant Office

Small - Large Users (1,000 - 20,000 sf +) Anchor Tenant 10,000 sf National/International Retail; Local Food Services Industries: Grocery, Restaurants and Food Services, Personal Services, Consumer Retail.

Residential Condominium

Levels 44 - 44 5%

Small - Medium Users (500 - 1,100 sf ) Anchor Purchasers for Penthouses Affluent Young Couples, Wealthy Singles, Investors, Midmarket Families; Established Households Industries: Medical, Finance, Law, Consulting, Resources, Government.