Mixed-use, Mixed-income Housing Development Proposal

3rd & Binney Apartments and Condos Mixed-use & Mixed-income Development

Katherine Mella Yuqi Wang

Instructors: Peter Roth Alexis Wheeler

December 2013

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3rd & Binney Apartments and Condos

TABLE OF CONTENTS

COVER LETTER

COVER LETTER ........................................................................................................................1

Dear Lenders,

EXECUTIVE SUMMARY ...........................................................................................................2

I’m applying for funding for two components of a large development project consisting of 425 rental (affordable and market-rate) and condominium units. This project will be developed in Cambridge, Massachusetts, on a parcel situated on the corner of 3rd and Binney Streets.

COVER SHEET ...........................................................................................................................3 INTRODUCTION ........................................................................................................................5 MISSION STATEMENT .............................................................................................................5 CONTEXT ...................................................................................................................................6 THE NEIGHBORHOOD .............................................................................................................7 ZONING ANALYSIS ..................................................................................................................8 NEIGHBORHOOD PLAN ..........................................................................................................9 PROGRAM SUMMARY...........................................................................................................11 SITE PLAN ...............................................................................................................................13 PLOOR PLAN...........................................................................................................................15 SECTIONS ................................................................................................................................19 DESIGN FEATURES ................................................................................................................24 TYPICAL UNIT PLANS ...........................................................................................................25 PROJECT PROGRAM.............................................................................................................25 OUTLINE SPECIFICATION MEMO .......................................................................................26

For the rental component of the project, I am applying for the following: ·

$49,000,000 for a Construction/Bridge Loan from MassHousing

·

$43,500,000 for a MassHousing Permanent loan

·

$10,000,000 of 9% Low Income Housing Tax Credits

·

$9,397,822 of 4% Low Income Housing Tax Credits

·

$2,704,367 of MassHousing Priority Development Funds

·

$1,000,000 of Massachusetts HOME

·

$1,000,000 of Cambridge HOME

·

$3,000,000 of Cambridge Housing Trust funds

·

$1,000,000 of Affordable Housing Trust funds

·

$12,556,249 of cash equity

For the condominium component of the project, I am applying for the following: ·

$35,100,000 for a Construction loan

·

$13,682,182 of cash equity

FINANCING PLAN ..................................................................................................................27 MARKETING PLAN .................................................................................................................28 APPENDIX A: CONDOMINIUM AND RENTAL PROFORMAS...........................................29

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The mission of the project is to create a mixed-income and mixed-use project that will cater to a variety of demographics, including young professionals, families, and retired couples at both marketrate and affordable pricing. In addition, the commercial and retail components will bolster the existing amenities in the Kendall Square/East Cambridge neighborhoods, particularly with the addition of a sorely needed grocery store. The development will also offer community features through the creation of abundant open, green space and a day care center.

Mixed-use & Mixed-income Development

EXECUTIVE SUMMARY The 3rd and Binney Apartments and Condos development is situated in East Cambridge, in the heart of action and continuous growth by Kendall Square. In responding to the neighborhood context and distinct opportunities, the project’s mission centers around creating a dense, mixed-use and mixed-income development that responds to the existing demand of residential options, in addition to bolstering the neighborhood’s amenities through commercial and retail, as well as community uses.

To reflect this mission, the development’s program centers around three major components: residential, commercial and retail, and community uses.

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Financing Plan To cover the development costs of the mixed-income component of the project, 9% and 4% tax credits are being used to fund the affordable units at 60% AMI. In addition Priority Development funds are used to support the use of 4% credits. The rest of the sources involve substantial grants from Massachusetts and Cambridge HOME funds, as well as Cambridge housing trust sources. A construction/bridge loan and equity round out the sources.

For the condominium portion of the project, a construction loan equal to 65% of costs as well as proceeds from condo sales and cash equity cover the development costs. The resulting profit is equal to 16% of costs.

Residential To address the need of both affordable and market rate rental units in the city and in the East Cambridge neighborhood, the project has a for-sale condominium component, which is a 15-story high-rise tower with a total of 123 market-rate units. The second residential section is mid-rise at 7 stories and high-rise at 10 stories. This component has 120 affordable rental units, which are 60% of the area median income, in addition to 182 market-rate rental units. The 402 residential units in the entire development range from studios to 3-bedroom units.

Commercial and Retail Over 15,000 square feet of commercial space will be dedicated to a grocery store to be anchored by Whole Foods, an amenity that is sorely lacking in East Cambridge. In addition, over 4,000 square feet of retail space will be created along 3rd Street, extending the existing retail from Kendall and along 3rd Street up through East Cambridge. This retail space would ideally add to the variety of options currently available in close proximity to the site.

Community 2,500 square feet will be dedicated to a day care center to fill an existing demand for additional childcare options in East Cambridge. This will be a valuable community amenity and aid in attracting more families to the neighborhood and our residences.

Open green space will also be created on the ground level off of Munroe Street as well as on two of the rooftops of the development. This will be a wonderful feature for both residents and the Cambridge community at large.

Target Demographic Given the site’s proximity to both institutional as well as office and laboratory space, which is continuously expanding, the development is a prime residential location for young professionals moving to the city for employment, as well as recently graduated individuals. The existing and key amenities being developed will also attract families and retired couples, who are looking for convenient access to public transportation and desirable amenities like restaurants and coffee shops.

3rd & Binney Apartments and Condos

Overall, the development will activate a prime location, which currently exists as a large gap in the streetscape. The generated activity created from the dense residential uses, as well as retail, commercial, and outdoor space will be key in turning Kendall Square and East Cambridge into a truly vibrant 18-hour community.

COVER SHEET Proposed building by type Proposed buildings by and typesize and size

Proposed Building Market‐rate Condominiums Market‐rate and Affordable Apartments

Type Residential

Grocery store

Commercial

3rd street retail space

Retail

Day Care Center

Community

Parking

Underground Parking

Residential

Size 15 story high rise tower 7 story midrise and 10 story high rise tower one story – first floor of 10 story high rise one story one story – first floor of 15 story high rise 2 levels

Rental Apartments (10 stories of units)

Rental Type 60% AMI

Dwelling unit destribution by floor, size, bedroom/bath number and handicap designation For Sale Condos (14 stories of units)

Unit Type

Floors 2‐7

Studio A Studio B 2 bedroom A 2 bedroom B 3 bedroom A 3 bedroom B 3 bedroom C

Subtotal Floors 8‐15

Subtotal Total Condo Units

Studio C 1 bedroom A 2 bedroom C 2 bedroom B 2 bedroom A 3 bedroom C 3 bedroom B 3 bedroom A

Market Rate # of Units 6 18 6 6 6 6 6 54 7 16 8 8 8 8 8 6 69 123

# of Baths

Handicap Accessibility

1 1 2 2 2 2 2

Yes Yes Yes Yes Yes Yes Yes

Net Sq. Ft. 432.0 435.0 913.5 918.0 1030.0 1109.0 1134.0

1 1 1 2 2 2 2 2

Yes Yes Yes Yes Yes Yes Yes Yes

518.0 609.0 823.5 918.0 913.5 1134.0 1109.0 1030.0

Total Rental Units

Unit Type

120

Studio A Studio B Studio C 1 bedroom 2 bedroom 3 bedroom A 3 bedroom B 3 bedroom C 3 bedroom D 182 Studio A Studio B Studio C 1 bedroom 2 bedroom 3 bedroom A 3 bedroom B 3 bedroom C 3 bedroom D

Net Sq. Ft.

1 1 1 1 2 2 2 2 2 1 1 1 1 2 2 2 2 2

Handicap Accessibility Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes

# of Units # of Baths 4 4 4 18 67 6 6 5 6 9 8 11 85 60 1 1 3 4 302

435.0 443.5 525.0 609.0 913.5 1134.0 1160.0 1224.0 1247.0 435.0 443.5 525.0 609.0 913.5 1134.0 1160.0 1224.0 1247.0

Mixed-use & Mixed-income Development

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Square footage breakdown between commercial, residential, community and other usage in the buildings.

4

Building Usage Residential Market‐rate Condominiums Market‐rate and Affordable Apartments Commercial & Retail Grocery store 3rd street retail Community Day Care Center Other Parking (underground)

Square Footage (Footprint)

8757 40,198.5

15,707 4,386

2,522

45,542

Number of parking spaces, parking ratio required and proposed

Residential Spaces Whole Foods Spaces Total Parking Spaces

Required Parking Ratio @ 1 425 75 500

Proposed Parking Ratio @. 4 170 75 245

2 levels of underground parking will offer 330 total spaces.

Dwelling units per acre under current zoning The majority of our parcel (71,862 square feet) is zoned C-2B residential under the base district and requires a minimum lot area of 600 square feet per unit. This equals about 120 units for the parcel and 72 units per acre.

Percentage breakdown of the tract to be occupied by buildings, by parking and other vehicular areas, and by open areas

• 65% of the parcel occupied by buildings • 35% occupied by open areas

3rd & Binney Apartments and Condos

INTRODUCTION The goal of 3rd & Binney Apartments and Condos is to create additional housing to serve the Kendall Square and East Cambridge parts of the city giving young professionals and families more options for comfortable living, as well as adding to the overall affordable housing stock of the Cambridge. In addition, we also want to create more commercial space and extend the existing retail corridor along 3rd Street.

MISSION STATEMENT Our mission is to create quality, affordable and market-rate units in an increasingly dense and popular urban area with convenient access to public transit and burgeoning job opportunities. As a mixed-use development, we will also provide attractive commercial uses and desired community amenities.

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Mixed-use & Mixed-income Development

CONTEXT The 77,752 square feet parcel is located on the corner of 3rd and Binney Streets near Kendall Square, in the East Cambridge neighborhood of the city, which has undergone quite a transformation in recent years.

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0.6 mile to Lechmere Square

2000 ft N

In addition to being near MIT’s campus, the site is also in close proximity to a large and continuously growing volume of office and laboratory space, home to predominantly high-tech companies. In addition, three luxury residential developments are within several blocks. To the north of the site is a more residential area of single and multi-family homes with a strong neighborhood and community feel.

Cambridge Facts & Figures • 39.6% of all households are family households • 40.7% of all households are single persons living • • • •

alone 19.7% are roommates As of 2010, the average household size is 2.0 people The median family income in Cambridge is $92,965 The average annual wage earned in Cambridge in 2012 was $96,200

0.25 mile

2 miles`to Harvard Square

Median monthly rents in Cambridge:

• • • •

Studio: $1800 1 bedroom: $2300 2 bedrooms: $2800 3 bedroom: $3175

1.28 miles to Central Square

0.24 mile to Kendall Square

1.85 miles to Boston Downtown

Starting monthly rents in Kendall Square area:

• • • •

Studio: $2100 1 bedroom: $2700 2 bedrooms: $3200 3+ bedrooms: $3800

The median market rate sales price for a condo in Cambridge is $445,500.

3rd & Binney Apartments and Condos

T Station

Zipcar

Hubway

Bike Route

Bus Stop Destination

THE NEIGHBORHOOD Our site is located to a variety of residential uses, particularly market-rate and luxury housing.

PLAYGROUND

1000 ft

N

BASEBALL FIELD

OTHER

Archstone Kendall Square Apartments

BASKETBALL

• “Provide modern living in one of the hottest neighborhoods in

OTHER

Cambridge”

PLAYGROUND

• Offers studios, one-bedroom and two-bedroom units in loft and duplex

BASKETBALL

floor plans • Studio rents start at $2,260/month; 1-bedrooms start at $2,185 and 2-bedrooms start at $2,575 • Amenities include 9-feet ceilings and a fitness center

PLAYGROUND PLAYGROUND

St.

3rd

5rd

Binney

Third Square Apartments

St.

St.

PLAYGROUND

PLAYGROUND PLAYGROUND

0.25 mile

• “Kendall’s premier property” • Offers a greater variety of unit sizes, from studios to 4-bedrooms • 2-bedroom rents start at $2,945/month while their 3+ bedrooms start at $5,667/month • Amenities include private patios/balconies and indoor swimming pool Watermark Kendall West

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ad

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• • • •

PLAYGROUND OTHER

“Brings a new level of apartment living to Cambridge” Offers 1 and 2 bedroom units 1-bedroom rents start at $3112 and 2-bedrooms start at $3,427 Amenities include 24-hour concierge service and a Zen garden

Transportation The site has excellent access to public transportation and is located a mile or less away from the following options:

PLAYGROUND

Main St.

• The red line and bus routes at Kendall Square • The green line and bus routes at Lechmere Station • Zipcar car-sharing location • NAVTEQ, Hubway bike-sharing location Copyright:© 2013 Esri, DeLorme, TomTom

Land Uses Residential Mid-rise Residential High-rise Commercial Mixed Use (O+C) Mixed Use (R+C) Under Construction

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Neighborhood Amenities Office Institution Industry Parking Lot On Street Meter Parking

Restaurant Cafe Bar T Station Zip-car Hubway

School Daycare Church Green Space Outdoor

The site also located near major roadway access to other parts of Cambridge, Boston and Somerville via the following:

Zipcar

• • • • •

Monsignor O’Brien Highway Binney Street Memorial Drive Storrow Drive Longfellow Bridge

Mixed-use & Mixed-income Development

ZONING ANALYSIS

Transfer of Development Rights (TDR) District of East Cambridge

Zoning District Designations: • 71,862 square feet of the parcel is zoned C-2B (residential) • 5,889 square feet of the parcel along 3rd Street is zoned BA (business) Allowed Development As-of-right

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Allowed Uses Residential Retail Business and Consumer Service

Other

Townhouse dwellings and multifamily dwellings (apartments, condos) (1) Stationery and office supply store.

(2) Printing and reproduction service establishment, photography studio.

(3) Other store for retail sale of merchandise located in a structure primarily containing non‐retail use provided no manufacturing, assembly or packaging occur on the premises.

(4) Barber shop, beauty shop, laundry and dry‐cleaning pick‐up agency, shoe repair, self‐service laundry or other similar establishments.

(5) Restaurants or other eating and drinking establishments listed in Subsection 4.35 e, f, and g.

(6) Theater or hall for public gatherings.

Any use not listed in subsections 13.12.1 through 13.12.4, otherwise allowed in a Business B District may be allowed by the Planning Board only upon written determination by the Board that such use is consistent with the objectives of the PUD‐KS district and the policies and guidelines set forth in the ECaPS Plan.

Transportation, Communication, Utility, Institutional Uses

Planned Unit Development Overlay – Kendall Square (PUD-KS)

The entire parcel is also zoned PUD-KS. According to the city of Cambridge Community Development Department, PUDs allow for flexibility in terms of integrating different land uses and densities. The developer can choose to follow the PUD controls instead of the base district requirements with a special permit.

PUD-KS: “Kendall Square. Mixed use with office and retail, residential, and a required public park.”

PUD‐KS Maximum FAR Maximum Height

Special requirements

3.0 65’ with areas allowing up to 85’, 120’, 180’, or 250’ and 45’ adjacent to public open space Under Article 13.00 of Cambridge’s Zoning Ordinance, residential uses, townhouse development and multi‐family dwellings are allowed, which fits in with our development plans. For retail business and consumer service establishments, the total amount of gross floor area (GFA) in the Kendall Square district cannot exceed 70,000 square feet, and no individual establishment can be greater than 10,000 square feet unless the Planning Board decides that more retail GFA better serves the residents within the district and also advances the policies of the Eastern Cambridge Plan and the Eastern Cambridge Design Guidelines.”

3rd & Binney Apartments and Condos

Our site is also in the TDR District of East Cambridge and specifically, in the Receiving District. According to Article 21.00 of the TDR Regulations, the purpose of the district is to “establish regulations by which Gross Floor Area (GFA) permitted on one lot or lots, as determined by the zoning district applicable to that lot [the Donating Lot(s)], may be transferred and used on another lot or lots [the Receiving Lot(s)] in the same or different zoning district.”

Parking Requirements Article 13.00 of the zoning ordinance also has the following guidelines for parking: 13.17.1 Off Street parking facilities shall be provided as follows: (1) Residence: 1 space per unit minimum, 1.5 spaces per unit maximum.

(2) Public Assembly: Number of seats requiring one space: 15.

(3) Institutional: 1 space per 1,800 square feet.

(4) Retail (except as noted in Section 13.17.2 below) and Office: Ground floor: 1,125 square feet Other level: 1,800 square feet The Eastern Cambridge Planning Study suggests the use of underground parking, but if parking is built above ground, it should not be visible from public Streets.

Variances to Be Proposed Parking Although Article 13’s parking guidelines provide 1 space per unit minimum for residential parking, we are using a .4 ratio for parking spaces to units given the excellent public transportation accessibility from the site.

Whole Foods Grocery stores do not fall under any of the accepted business establishments listed, but the ordinance also states that “any use not listed…but otherwise allowed in a Business B District may be allowed by the Planning Board only upon written determination by the Board that such use is consistent with the objectives of the PUD-KS district and the policies and guidelines set forth in the ECaPS Plan.”

We can argue for a variance to build the grocery store since it will be an amenity that is consistent with the Eastern Cambridge Planning Study (ECaPS). The Planning Study identifies our site to be in a “key position to affect the character of Kendall Square.” In addition, it wants to transform this district into one that encourages 18-hour activity “that residents desire in Kendall Square.” The addition of a grocery store in particular would serve the current and future residents of the area, especially families, in addition to attracting patrons who live and work nearby into the evening, thus creating more foot traffic after 5PM. Moreover, in 2011 a study was conducted by the Economic Division of Cambridge’s Community Development Study cited a grocery store as the second most desired amenity residents wanted to see in Kendall Square.

Day Care Center Under Article 4.33 a daycare center is listed under institutional use within “educational purposes.” Article 13.00 of the zoning ordinance permits institutional use provided that it is allowed under the base zoning district. The base zoning of Residence 2B and Business A both allow for daycare centers, so we should not need any relief if we choose to have a daycare center as part of our development.

Density and FAR PUDs maximum FAR is 3.0; however, our proposed development will have an FAR of 5.5. Given the height of the neighboring buildings (the majority are at least 5 stories, with Kendall Watermark at 22 stories) and the infill development that has been occurring in the neighborhood in recent years, we are responding with added density on our site. The PUD’s FAR of 3 would not have been able to support our 15 story high rise, which is appropriate for the site and location. The location’s proximity to convenient public transportation also support the transit-oriented development’s principle of added density. Thus, the project should get a variance for exceeding the site’s existing FAR maximum.

NEIGHBORHOOD PLAN Site The site on 3rd and Binney Streets is currently occupied by the Research and Innovation Technology Administration of the U.S. Department of Transportation, and hosts the Center for Human Factors Research in Transportation (Volpe Center). Beyond a one-story building, the parcel has some parking and green space and is underdeveloped overall.

Surrounding Uses The site is surrounded by dense residential developments in addition to a large number of biotechnology and pharmaceutical companies on 3rd Street and along Binney Street. These buildings house both office and laboratory spaces for companies like Genzyme, Momenta Pharmaceuticals, and Alnylam US.

Existing Amenities There are a variety of amenities in Kendall Square, along Broad Canal Way, and 3rd Street, which are all within walking distance of the site. The retail related amenities include restaurants, bars, coffee shops, dry cleaners, banks, the post office, and other small shops. A major shopping center, the Cambridgeside Galleria, is also half a mile away. The site is in close proximity to other great features like the Museum of Science and the Charles River. In addition the site is close to a variety of public transportation options.

Despite the varied existing amenities, there are still some uses that are much needed in this area. A grocery store, a day care center and more public green space have been highlighted as needed uses.

Transportation The site has excellent access to public transportation and is located near the following options:

• .24 mile away from the red line at Kendall Square and also has access to the following bus lines – 64, 68, 85, CT2;

• .6 mile from the green line at Lechmere with access to the following bus lines – 69, 80, 87, 88; • .25 mile away from the bike sharing port, Hubway; • The site is also near car-sharing opportunities like Zipcar and other rental locations.

There is also roadway access via the Monsignor O’Brien Highway north of the site, via Binney Street and Memorial Drive in the west, and the Longfellow Bridge to the south.

All of the above transportation options allows for convenient travel to other parts of the city, including Central and Harvard Squares, as well as Somerville and Boston.

Current and Future Development Alexandria Center A parcel diagonally situated from our site at 75-125 Binney Street is currently being developed into a life science complex, which will house Ariad Pharmaceuticals and will be part of Alexandria Center, a science and technology campus. This development is one of a total of 8 separate construction sites covering areas around Kendall Square.

Mixed-use & Mixed-income Development

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Kendall Square Initiative In addition to individual development projects currently in the construction phase, MIT is undertaking a large-scale redevelopment of properties it owns in East Campus and in Kendall Square. This will result in 1.1 million square feet of new development in the form of office space, labs, retail, commercial, housing, and open space. Currently, the initiative is undergoing a gateway study to create a long-term framework for this development.

All of these development projects in the Kendall Square area signal a large influx of activities, which will in turn attract both residents and new employees given the excellent access to public transportation and desirable amenities.

Thus, Kendall Square and East Cambridge is poised to become a much more vibrant, 18-hour neighborhood.

St.

ANALYSIS 3rd

Opportunities Density Although three major residential buildings are within walking distance of the site, there is still a lack of much needed residential use in East Cambridge. The volume of office and laboratory space in Kendall is large and continues to grow, which increasingly attracts more professionals to the area. The influx of employment opportunities coupled with easy access to surrounding amenities like retail and public transportation makes our site a prime location for additional housing options.

In addition, the site currently exists as a gap along 3rd Street, which has become much more active and dense with residential, retail, office and laboratory uses. Moreover, except for the parking lot to the west of the site, the buildings on the other three sides of the site are over five stories, and the residential buildings within three blocks are midrise and high-rise developments. Thus, the site is poised for both dense, vertical development.

Amenities Although a variety of retail options exist near our site, the development has the opportunity to extend the retail corridor along 3rd Street in particular, as well as add more desired and needed amenities, like a grocery store, day care

3rd & Binney Apartments and Condos

30 feet N Binney St .

St.

Existing

3rd

10

Binney St.

Proposal Concept Circulation Barriers

High-rise Residential

Grocery Store

Vehicle Route

Mid-rise Residential

New Retail

Yard / Green Space

Daycare

Neighborhood Connection

New Pedestrian Route

Buildings > 50’ height

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Kendall Square

center and green open space, to the benefit of both residents and employees.

PROGRAM SUMMARY

Green space

The development has the following components:

The 2001 Eastern Cambridge Planning Study highlighted the site as part of a geographic area in need of a community park. Although some green space has been added in Eastern Cambridge since the publication of this report, it has not been nearly enough. The Third Square Apartments have a green in the middle of their development, but it is not used often and rarely used by the public. Because of the location and size of the 3rd and Binney parcel, there is an excellent opportunity to add much needed green space that is accessible by both our development’s residents and the public.

Residential (424,227 gsf)

Constraints Circulation Barriers One of the major site constraints is its adjacency to Binney Street, which is a very active main road, which experiences heavy traffic on a daily basis. This activity makes it the ideal location for our grocery store, but mitigation must occur to make it a more pedestrian friendly street along our development.

Another circulation barrier that exists is in the navigation around our parcel from Binney or 3rd Street.

Because 5th Street does not cut through the parcel to Binney Street, it makes circulation less than optimal. To address this barrier, the development will create a pedestrian corridor, which will allow residents to walk from 5th Street to Binney Street.

• Market-rate condominiums in 15-story high rise tower • Market-rate and affordable apartments in 7-story mid-rise and 10-story high rise tower Commercial & Retail

• Whole Foods grocery store (15,707 gsf) • Leasable retail space (4,386 gsf) Community

• Day care center (2,522 gsf) • Green space • Pedestrian walkway Parking

• Residential parking • Whole Foods parking Total FAR: 5.5

Residential The residential portion of the development will have a total of 425 residential units – 302 in the rental component and 123 in the for-sale component of the project. In both components, unit types range from studios to 3-bedrooms.

Commercial & Retail

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Whole Foods Despite the varied retail offerings in East Cambridge and Kendall Square, a grocery store and day care center were highlighted as two uses that were sorely lacking. As part of the development, we will be creating a grocery store on the edge of the site on Binney Street, with the intention of having Whole Foods as the tenant. The creation of 428 new units in a burgeoning residential area and an already bustling employment area ensures that there will be high demand for such an amenity.

Whole Foods is the ideal tenant for this space given the demographics of the immediate neighborhood, which can afford a more upscale offering. In addition, Whole Foods’ prepared food section is particularly attractive as another lunch/dinner option for both residents and employees in the area.

Retail Space Beyond the grocery store, 4,386 gsf will be available as retail space. Although specific businesses have not been identified for the space, the intention is to extend the 3rd Street retail corridor and create further

Mixed-use & Mixed-income Development

activity in the neighborhood. Potential tenants for this space include a pharmacy and more varied dining options.

Community Day Care Center During the research phase of the project, a need for a daycare center emerged, which fit into the overall program given the desire to attract families to the development. As such, 2,522 gsf will be dedicated to this community use. The day care center is located off of 3rd Street on Munroe Street and will have an adjacent playground and access to the green space.

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Green Space The 2001 Eastern Cambridge Planning Study highlighted our parcel as part of the area in need of a community park. The development will be adding a total of 3 green spaces, two of which are roof parks.

The main open space will be located off of Munroe Street and be most accessible to both residents of the development and the public.

Pedestrian Walkway A pedestrian walkway will be created to activate the edge of our parcel and allow access to Binney from 5th Street and create another convenient route to Whole Foods. Because Whole Foods will be open late into the evening, it will help create a well-lit and safe corridor for pedestrians.

Parking Two levels of underground parking will be provided for both residents of the development and customers of Whole Foods. The main entry and exit point in and out of the parking level will be off of Binney Street located between the Whole Foods and mid-rise component of the development.

Because the development has very convenient access to public transportation, a .4 parking ratio will be used, which allocates 170 spaces for residents of the development. Another 75 spaces will be allocated to Whole Foods based on comparable urban grocery stores in Cambridge.

As such, a total of 245 spaces are needed. 165 spaces are available on each parking level, offering a total of 330 spaces. The remaining 85 spaces can be rented or sold to future development projects.

The entire development program is meant to advance the creation of an 18-hour neighborhood, where the added amenities of both retail and Whole Foods in particular will serve both the employee population as well as the residents through the evening.

3rd & Binney Apartments and Condos

SITE PLAN

13

30 feet

N

Mixed-use & Mixed-income Development

14

Residential Unit Entrance (Condos / Rental) Walk-up Rental Units Green Space Access (Public / Private) Commercial Frontage Kids Activities Parking Entrance & Exit (Residential & Grocery Store)

30 feet N

March 10am

3rd & Binney Apartments and Condos

March 3pm

October 10am

October 3pm

FLOOR PLAN

Rental Apartment Plan L1

30 feet

N

15

Parking Plan -L1 & -L2

30 feet

N

Mixed-use & Mixed-income Development

L2-L7 TR

Laundry

16

Storage/ Common room

Roof Garden (L2)

30 feet

N

L8-L10

Roof Garden (L8)

30 feet

3rd & Binney Apartments and Condos

N

Condo Plan

N

Man Offic ager e

30 feet

Leasing Office

Storage

TR

L1

L2-L7

L8-L15

17

Mixed-use & Mixed-income Development

30 feet

18

3rd & Binney Apartments and Condos

SECTIONS

19

Mixed-use & Mixed-income Development

30 feet 20

3rd & Binney Apartments and Condos

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Mixed-use & Mixed-income Development

30 feet 22

3rd & Binney Apartments and Condos

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Mixed-use & Mixed-income Development

DESIGN FEATURES

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3rd & Binney Apartments and Condos

TYPICAL UNIT PLANS

PROJECT PROGRAM

10 feet

2,335,236 s.f. Rental Flat Units 101 one-bedroom

99,783 s.f. Condo Units 16 one-bedroom

Studio 435 s.f.

36 two-bedroom 40 three-bedroom 31 studio

2,522 s.f. Daycare Center with playground

Green Space 19,929 s.f. Walk-up Rental Units 2 one-bedroom

4,386 s.f. Retail

1 bedroom 609 s.f.

18 two-bedroom 2 three-bedroom

Pedestrian Walkway

330 Underground Parking 170 residential parking

109 two-bedroom 30 three-bedroom 40 studio

75 grocery store parking

15,707 s.f. Grocery Store

2 bedroom 913.5 s.f.

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RENTAL

3 bedroom 1160 s.f.

Market Rate Affordable FOR-SALE

Total Number of Units Unit Type Square Footage Monthly Rents 60% AMI Rents

40 Studio (A, B, C) 435 sq. ft. - 525 sq. ft. $2,100-$2,175 $892-942

103 1 bedroom 609 sq. ft. $2,700 $991

127 2 bedroom 914 sq. ft. $3,200 $1,134

32 3 bedroom (A, B, C, D) 1,134 sq. ft. -1,247 sq. ft. $3,825-3,925 $1,200-$1,275

Total Number of Units Unit Type Square Footage Sales

31 Studio (A, B, C) 432 sq. ft.-518 sq. ft. $280,000 - $320,000

16 1 bedroom 609 sq. ft. $380,000

36 2 bedroom (A, B, C) 823 sq. ft. - 918 sq. ft. $525,000 - $580,000

40 3 bedroom (A, B, C) 1030 sq. ft.-1134 sq. ft. $685,000 - $725,000

TOTAL UNITS 302

123

425

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Mixed-use & Mixed-income Development

OUTLINE SPECIFICATION MEMO 174-182 Binney Street, Cambridge, MA New Construction Scope of Work

446,842 gsf New Construction

26

The entire development is concrete and steel construction given the 15-story high rise tower along 3rd Street and the connected mid-rise and high rise tower along Binney Street.

PROGRAM

• Laundry Room on each floor accommodating 2 coin op washers and 2 coin op gas • Trash Room on each floor with access to Trash Chute and area for recycling bins • Access to rooftop garden is available in the elevator lobby on the 8th floor Rooftop Open Space:

• A rooftop garden will be above the 2nd floor on the mid-rise portion of the building • Access is available from the 2nd floor elevator lobby Condominium Component

Site:

• Site work includes a new curb cut on Binney Street to allow for temporary parking for three vehicles, as well as a general drop-off and pick-up location in front of the Binney street residential lobby entrance.

• There will also be substantial landscaping involved, which includes adding trees and plantings along Binney Street and the pedestrian walkway. In addition, a lawn will be planted off of Munroe Street, as well as new trees and plantings along the perimeter of the open space and periodically between stoop entrances. Roof lawns will be added on two other areas of the development.

• Other minor site improvements include installing outdoor seating and bike racks.

Rental Component First Floor:

• Trash Room accommodating compacter and 3 rolling 2 dumpsters for residential garbage, with • • • • • •

space for storing recyclables. Trash room is located on the ground floor with relatively easy access to the outdoors for pickup by dumpster truck.

Electric room sized to accommodate switchgear and meter banks; Space for gas meters (no need to enclose, just protect); Residential barrier-free entrance lobby as per plans accommodating mailboxes; 22 residences with direct access to Binney Street and the green space on the Munroe Street side of the development 22 residential apartments per plans Laundry Room on first floor accommodating 2 coin op washers and 2 coin op gas dryers

Floors 2 through 7:

• 220 residential apartments per plans • Laundry Room on each floor accommodating 4 coin op washers and 4 coin op gas dryers • Trash Room on each floor with access to Trash Chute and area for recycling bins Floors 8 through 10:

• 60 residential apartments per plans

3rd & Binney Apartments and Condos

First Floor:

• Retail space per plans along Third Street between Munroe and Binney Streets to include 13 feet • • • • •

ceiling height to underside of lowest structure, separately metered gas and electric and conventional forced air HVAC system, and modern retail finishes.

Trash Room accommodating compacter and 3 rolling 2 dumpsters for residential garbage, with space for storing recyclables. Trash room is located on the ground floor with relatively easy access to the outdoors for pickup by dumpster truck.

Electric room sized to accommodate switchgear and meter banks; Space for gas meters (no need to enclose, just protect); Residential barrier-free Entrance Lobby as per plans accommodating mailboxes; Property Management office adjacent to Lobby plus storage closet and barrier free restroom;

Floors 2 through 7:

• • • • •

54 residential apartments per plans Trash Room on each floor with access to Trash Chute and area for recycling bins Storage space available adjacent to elevator lobby There will be laundry machines in each unit Electric Closet on each floor, minimum 2x5 ft, accommodating telephone and cable boxes

Floor 8 through 15:

• • • •

80 Residential Apartments per plans Trash Room on each floor with access to Trash Chute and area for recycling bins There will be laundry machines in each unit Electric Closet on each floor, minimum 2x5 ft, accommodating telephone and cable boxes

Rooftop Open Space:

• A rooftop garden will be above the 7th floor on the mid-rise portion of the building • Access is available from the 7th floor elevator lobby

FINANCING PLAN Residential Units Rental Units 120 = 40% of units at 60% AMI 182 = 60% of units at market-rate 302 units total

Funding Source Funding Source $49,000,000 for a Construction/Bridge Loan

Features Features $17 million in affordable portion reflects 50% of the affordable unit’s total project costs for 9%

$49,000,000 for a Construction/Bridge Loan from tax credits eligibility; bridge and construction loan to help finance construction phase $17 million in affordable portion reflects 50% of the affordable unit’s total project costs from MassHousing MassHousing for 9% tax credits eligibility; bridge and construction loan to help finance construction $43,500,000 for a MassHousing Permanent loan Loan to help pay short‐term construction and bridge loan phase $10,000,000 of 9% Low Income Housing Tax Maximum allocation for 9% tax credits for a total of 40 units at 60% $43,500,000 for a MassHousing Permanent loan Loan to help pay short‐term construction and bridge loan Credits $10,000,000 of 9% Low Income Housing Tax Credits Maximum allocation for 9% tax credits for a total of 40 units at 60% $9,397,822 of 4% Low Income Housing Tax Balance of tax credits needed help fund the remaining 80 affordable units at 60% AMI $9,397,822 of 4% Low Income Housing Tax Credits Balance of tax credits needed help fund the remaining 80 affordable units at 60% AMI Credits $2,704,367 of MassHousing Priority Development Funds available to incentivize developers to build affordable and mixed income housing. This Funds available to incentivize developers to build affordable and mixed income housing $2,704,367 of MassHousing Priority Funds using 4% credits. This allocation helps close the funding gap.

Development Funds allocation helps close the funding gap. $1,000,000 of Massachusetts HOME

Affordable housing grant; 100% of benefiting residents will have incomes that do not Affordable housing grant; 100% of benefiting residents will have incomes that do not exceed exceed 60% AMI 60% AMI

$1,000,000 of Cambridge HOME $3,000,000 of Cambridge Housing Trust fund

Match for state HOME funds Match for state HOME funds Project meets the high quality, sustainable design and creation of family housing criteria Project meets the high quality, sustainable design and creation of family housing criteria

$1,000,000 of Affordable Housing Trust fund

Funds available for the creation of affordable units in mixed‐income developments; Funds available for the creation of affordable units in mixed‐income developments; incomes incomes do not exceed more than 110% of AMI at 60% AMI. do not exceed more than 110% of AMI at 60% AMI.

$12,556,249 of Cash Equity

Equity helps to close the funding gap Equity helps to close the funding gap

27

Condominium Units Condominium Units 123units unitsatatmarket-rate market-rate 123 Funding Source $35,100,000 of BCC Construction Loan $63,351,650 of Gross Unit Sales $13,682,182 of Cash Equity

Features 65% of total development costs Reflects gross sale proceeds of 123 units 25% of total development costs

See Appendix A: Condominium and Rental Proformas

Mixed-use & Mixed-income Development

MARKETING PLAN

Advertising and Promotion:

• Website/Social Media 3rd and Binney Apartments and Condos The site on 3rd and Binney Streets is located north of Kendall Square along the 3rd Street Corridor in East Cambridge that has undergone quite a transformation in recent years. In addition to being near MIT, the site is also in close proximity to a large and continuously growing volume of office space, home to predominantly high-tech companies. In addition, three luxury residential developments are within several blocks.

28

Most people search for housing via the internet. Like other projects in Kendall square, this project’s website should include floor plans, pricing, amenities and good pictures in order to attract potential customers. We should put ads in search engines such as google.

In addition, the ads easily access target renters and purchasers by Social Media which customizes users by age, gender, and address.

• Direct Mail There are many similar affordable rental apatments in Cambridge as well as Boston and the renters in those apartments would be looking for new apartments before their contracts are expired. The renters might be thinking to purchase condominium units. The marketing team should send direct mails to the potentital renters or purchasers to show the appeal of our property.

Typical Affordable Unit Renters

• Small, Young Families with Kids The site offers a total of 90 2- and 3- bedroom units, ideal for small families with kids.

• Free Magazines

• Roommates Young singles will be also be attracted to the 2-bedroom units, ideal for sharing at a more reasonable rent.

• Other Young Professionals Young professionals working in the bio-tech offices and labs nearby are ideal targets for the studio and 1-bedroom units in the development.

• Retired Couples Retired couples in search of a smaller residence to meet their lifestyle needs and may not have enough income and savings. The site location is near Kendall square, which has easy access to MGH and other hospitals in Boston.

Typical Market Rate Unit Renters

The free magazines such as Apartment Finder could be an option for the advertisement. We can install the magazines at offices, restaurants, university campuses, research centers and stations in Kendall. The installation would be a good appeal for people who live or work in Kendall.

• Advertising Signs/Posters The signs for affordable rentals should be located at the site during the construction. In addition, poster advertisements in public spaces such as community centers are effective for people in Boston and Cambridge.

• Local Newspaper Ads in the local newspaper such as the Boston Globe, the Boston Herald, the Phoenix, and Cambridge Civic Journal might catch the retired parents, which would encourage them to be interested in the project. Also the ads could be on local free newspapers such as the Metro.

• Single Young Professionals The project has studios which attract professionals who are working around Kendall Square; studios and 1 bedrooms are ideal for them.

2014 Jan: Construction starts & press release

• Young Families with Kids The project has a day care center and green spaces for the kids. The project has 3-bedroom units that fit families’ needs.

• Young Scholars and Researchers The site is surrounded by new office buildings and MIT campus. The site would be dential place for them.

an ideal resi-

Typical Market Rate Units Purchasers

• Young Professionals Young professionals who work around the site are potential purchasers since they can live and potentially lease out the unit in the future. The project also has the units from studios to 3 bedrooms. Therefore, the professionals could be singles or families with or without kids.

3rd & Binney Apartments and Condos

Marketing Schedule:

2015 Jan: The affordable leasing website started and advertising signs are installed on the site Aug: Start general marketing, put ads on social media, newspapers and magazines and send out the direct mails Oct: Deadline for affordable rent applications and take lottery Dec: The selection is completed 2016 Jan: The construction is completed and occupancy process is started

Marketing budget for the market rate rental units: $200,000 Marketing budget for market rate sale units: $3,277,032.50

APPENDIX A: CONDOMINIUM AND RENTAL PROFORMAS

3rd and Binney Condos Sources and Uses of Funds 12/13/13 Sources (cash) BCC Const Loan BCCConst Loan Repayment Gross Unit Sales Cash Equity Repay Cash Equity Total

Total Units

Total Per Unit $35,100,000 285,365.85 ($35,100,000) (285,365.85) $63,351,650 515,054.07 $13,682,183 111,237.26 ($13,682,183) $63,351,650

Developer fee Profit/(Loss) As a percent of cost

$0 $8,622,916 $13,768,457 16%

Uses (cash) ACQUISITION Land

TOTAL

8.66 5% 0.50%

of loan amt 3.50% ew Ecology 5% 2%

$ 225.00 $ 35,000.00

PER UNIT

$14,379,600 116,907.32 $14,379,600 116,907.32

subtotal

HARD COSTS 122,598 Construction 49 Shared Parking Cost Contingency 882 0.4 5% 0.75% 1%

123

% of TDC 26.27% 26.27%

subtotal SOFT COSTS A/E Design & Inspection A/E Additional Services Bond Permits Survey Geo/Environmental Assessment Clerk Insurance & Condo Fees RE Taxes Marketing/Lease Up Environmental Contingency Title and Recording Appraisal Traffic Study Lender & LP Review and Inspection Cost Certification/Accounting Developer Legal Const Loan Fee & Legal Const Loan Interest Other Consultants Testing Developer Overhead Soft Cost Contingency

$27,584,550 1,722,000 $1,465,328 $30,771,878

224,264.63 14,000.00 11,913.23 250,177.87

50.40% 3.15% 2.68% 56.23%

$1,379,228 $16,000 $206,884 $404,909.50 $6,000 $23,757 $100,000 $170,975 $374,781 $3,167,582.50 $30,000 $318,350 $10,000 $15,000 $20,000 $25,000 $225,000 $351,000.00 $1,500,000 $ 20,000 $25,000 $1,000,000 $187,789.34

11,213.23 130.08 1,681.98 3,291.95 48.78 193.15 813.01 1,390.04 3,047.00 25,752.70 243.90 2,588.21 81.30 121.95 162.60 203.25 1,829.27 2,853.66 12,195.12 162.60 203.25 8,130.08 1,526.74

2.52% 0.03% 0.38% 0.74% 0.01% 0.04% 0.18% 0.31% 0.68% 5.79% 0.05% 0.58% 0.02% 0.03% 0.04% 0.05% 0.41% 0.64% 2.74% 0.04% 0.05% 1.83% 0.34%

subtotal

$9,577,256

77,863.87 444,949.05

17.50%

Total Development Costs

$

$54,728,734

100.00%

Mixed-use & Mixed-income Development

29

3rd and Binney Condos Cash Flow During Construction

SOURCES of Funds

30

Construction/Bridge Loan Repay Const/Bridge Loan Cash Equity Repay Cash Equity Unit Sales Total Sources USES of Funds

Construction Loan Balance Equity Balance UnSold Unit Balance RE Taxes Sources $35,100,000 ($35,100,000) $13,682,183 ($13,682,183) $63,351,650 $63,351,650

$3,811,440.68 $13,682,183

$5,005,825 $13,682,183

Jan‐14 Closing

Feb‐14 Month 1

$10,519,661 $13,682,183

$11,427,123 $13,682,183

$12,415,640 $13,682,183

Mar‐14 Month 2

Apr‐14 Month 3

May‐14 Month 4

Jun‐14 Month 5

Jul‐14 Month 6

Aug‐14 Month 7

Sep‐14 Month 8

Oct‐14 Month 9

$1,232,498

$622,628

$622,777

$933,238

$903,161

$907,462

$988,517

$13,682,183

$0

$0

$0.00

$0

$0

$0

$0

$0

$0

$17,493,624

$1,194,384 $0

$14,379,600

SUBTOTAL: ACQUISITION COST

$14,379,600

$14,379,600

$0

Construction Costs: Construction Shared Parking Cost Contingency SUBTOTAL: CONSTRUCTION COST

$27,584,550 $1,722,000 $1,465,328 $30,771,878

$0 $0

$551,691 $574,000.00 $0 $1,125,691

3rd & Binney Apartments and Condos

$9,616,500 $13,682,183

$1,199,534

$14,379,600

$54,728,734 $8,622,916

$8,683,263 $13,682,183

$1,194,384

Acquisition Costs: Land

Total DEVELOPMENT COST Surplus/(Deficit) Price per Unit

$8,060,485 $13,682,183

$3,811,441

Closing

$1,395,228 $25,000 $206,884 $6,000 $404,910 $23,757 $30,000 $100,000 $170,975 $374,781 $3,167,583 $318,350 $10,000 $15,000 $20,000 $25,000 $225,000 $351,000 $1,500,000 $20,000 $1,000,000 $187,789

$7,437,858 $13,682,183

8.66

USES

General Development Costs: A/E Design & Inspection & Additional Services Construction Testing Bond Survey Permits Geo/Environmental Assessment Environmental Contingency Clerk Insurance & Condo Fees RE Taxes Marketing Title and Recording Appraisal Traffic Study Lender & LP Review and Inspection Cost Certification/Accounting Developer Legal Construction Loan Fees & Legal 3.50% Construction Loan Interest Other Consultants Developer Overhead Soft Cost Contingency

$6,205,359 $13,682,183

$1,116,182 $0 $206,884 $5,500 $404,910 $23,757 $170,975 $31,132 $33,268 $10,000 $15,000 $5,000 $25,000 $213,750 $351,000 $0 $1,666.67 $500,000.00 $17,493,624 $0

Month 1

$1,199,534 $0

Month 2

$1,232,498 ($0)

$0 2%

$551,691 $574,000.00 $0 $1,125,691

Month 3

$622,628 $0

$0 2%

Month 4

$622,777 ($0)

$0

$551,691 $574,000.00 $0 $1,125,691

2%

$551,691 $0 $0 $551,691

Month 5

$933,238 ($0)

$0 2%

Month 6

$903,161 $0

$0

$551,691 $0 $0 $551,691

2%

$827,537 $0 $0 $827,537

Month 7

$907,462 ($0)

$0 3%

Month 8

$988,517 ($0)

$0

$827,537 $0 $0 $827,537

3%

$827,537 $0 $0 $827,537

Month 9

$0 3%

$827,537 $0 $0 $827,537

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$11,627 $2,500

$10,000 $4,166.67

$10,000 $4,166.67

$10,000 $4,166.67

$4,166.67

$4,166.67

$4,166.67

$4,166.67

$4,166.67

$4,166.67

$31,132

$625

$11,117 $20,833.33 $7,824.56 $1,194,384 $0

$625

$14,600 $1,667 $20,833.33 $7,824.56 $1,199,534 $0

$625

$18,099 $20,833.33 $7,824.56 $1,232,498 $0

$31,132

$625

$21,694 $1,667 $20,833.33 $7,824.56 $622,628 $0

$625

$23,510 $20,833.33 $7,824.56 $622,777 $0

$625

$25,326 $1,667 $20,833.33 $7,824.56 $933,238 $0

$0

3%

$31,132 $48,943

$625

$28,048 $20,833.33 $7,824.56 $903,161 $0

$625

$30,682 $1,667 $20,833.33 $7,824.56 $907,462 $0

$625

$33,329 $20,833.33 $7,824.56 $988,517 $0

$13,378,632 $13,682,183

Nov‐14 Month 10

$14,762,644 $13,682,183

Dec‐14 Month 11

$16,183,492 $13,682,183

Jan‐15 Month 12

$17,575,685 $13,682,183

Feb‐15 Month 13

$18,948,605 $13,682,183

Mar‐15 Month 14

$20,630,840 $13,682,183

Apr‐15 Month 15

$22,288,517 $13,682,183

May‐15 Month 16

$23,949,362 $13,682,183

Jun‐15 Month 17

$25,647,849 $13,682,183

Jul‐15 Month 18

$27,589,338 $13,682,183

Aug‐15 Month 19

Sep‐15 Month 20

Oct‐15 Month 21

Nov‐15 Month 22

Dec‐15 Month 23

$1,392,193

$1,372,920

$1,682,235

$1,657,677

$1,660,845

$1,698,488

$0

$0

$0

$0

$0

$0

$0

$0

$0

$962,992

$1,384,012

$1,420,847

$1,392,193

$1,372,920

$1,682,235

$1,657,677

$1,660,845

$1,698,488

$1,941,488

$1,948,818

$1,837,434

$0 $2,089,174

$0 $2,095,045

Month 18

Month 19

Month 20

Month 21

Month 22

Month 23

$0

$0

$0

$0

$0

$0

Month 10

($0)

$0

$827,537 $0 $0 $827,537

Month 11

($0)

$0 3%

$11,627 $2,500

Month 12

$0

$0

$1,103,382.00 $0 $146,532.75 $1,249,915

4%

$11,627

$1,103,382.00 $0 $146,532.75 $1,249,915

Month 13

$0

$0 4%

$11,627

Month 14

$0

$0

$1,103,382.00 $0 $146,532.75 $1,249,915

4%

$11,627

$1,103,382.00 $0 $146,532.75 $1,249,915

Month 15

$0

$0 4%

$11,627

Month 16

$0

$0

$1,379,228 $0 $146,532.75 $1,525,760

5%

$11,627

$1,379,228 $0 $146,532.75 $1,525,760

Month 17

($1)

$0 5%

$11,627

$1,379,228 $0 $146,532.75 $1,525,760

5%

$11,627

$1,379,228 $0 $146,532.75 $1,525,760

5%

$11,627

$0

$1,655,073 $0 $146,532.75 $1,801,606

6%

$11,627

$0

$1,655,073 $0 $146,532.75 $1,801,606

6%

$11,627

$0

$0

$1,655,073.00 $0

6%

$2,089,174

$35,559,808 $13,682,183

$1,420,847

$0

$1,837,434

$33,464,764 $13,682,183

$1,384,012

$0

$1,948,818

$31,375,590 $13,682,183

$962,992

$0

$1,941,488

$29,538,156 $13,682,183

$0

$0

$1,930,918.50 $0

7%

$2,095,045 $0

$0

$1,930,918.50 $0

$1,655,073

$1,930,919

$1,930,919

$11,627

$11,627

$11,627

7%

$250

$4,166.67

$4,166.67

$4,166.67

$50,000

$50,000

$31,132 $50,000

$625

$625

$625

$36,212 $1,667 $20,833.33 $7,824.56 $962,992 $0

$39,021 $20,833.33 $7,824.56 $1,384,012 $0

$43,058 $1,667 $20,833.33 $7,824.56 $1,420,847 $0

$4,166.67

$4,166.67

$4,166.67

$50,000

$25,000

$31,132 $25,000

$625

$625

$625

$47,202 $20,833.33 $7,824.56 $1,392,193 $0

$51,262 $1,667 $20,833.33 $7,824.56 $1,372,920 $0

$55,267 $20,833.33 $7,824.56 $1,682,235 $0

$4,166.67

$4,166.67

$4,166.67

$25,000

$25,000

$31,132 $25,000

$625

$625

$625

$60,173 $1,667 $20,833.33 $7,824.56 $1,657,677 $0

$65,008 $20,833.33 $7,824.56 $1,660,845 $0

$69,852 $1,667 $20,833.33 $7,824.56 $1,698,488 $0

$4,166.67

$4,166.67

$4,166.67

$20,000

$20,000

$31,132 $20,000

$20,000

$21,194

$625

$625

$625

$625

$625

$74,806 $20,833.33 $7,824.56 $1,941,488 $0

$80,469 $1,667 $20,833.33 $7,824.56 $1,948,818 $0

$4,166.67

$4,166.67

31

$86,153 $20,833.33 $7,824.56 $1,837,434 $0

$91,512 $1,667 $20,833.33 $7,824.56 $2,089,174 $0

$97,606 $20,833.33 $7,824.56 $2,095,045 $0

Mixed-use & Mixed-income Development

$7,463,958 $13,682,183

Jan‐16 Month 24 ($28,095,850) $0

32

$31,675,825 $3,579,975

$4,489,881 $13,682,183 $31,675,825 $22,859 Month 25 ($2,974,077) $3,167,583 $193,506

$0 $15,187,027 $28,508,243 $20,573 Month 26

$0 $12,186,609 $25,340,660 $18,288 Month 27

$0 $9,183,904 $22,173,078 $16,002 Month 28

$0 $6,178,914 $19,005,495 $13,716 Month 29

$0 $3,171,637 $15,837,913 $11,430 Month 30

$0

$0 $12,670,330 $9,144 Month 31

$0

$0 $9,502,748 $6,858 Month 32

$0

$0 $6,335,165 $4,572 Month 33

$0

$0 $3,167,583 $2,286 125,727 Month 34

Total Sources $35,559,808 ($35,559,808) $13,682,183 ($13,682,183) $63,351,650 $63,351,650 ($1) Total Uses

($4,489,881) $1,504,844 $3,167,583 $182,545

($3,000,419) $3,167,583 $167,164

($3,002,705) $3,167,583 $164,878

($3,004,990) $3,167,583 $162,592

($3,007,276) $3,167,583 $160,306

($3,171,637) $3,167,583 ($4,055)

$3,167,583 $3,167,583

$3,167,583 $3,167,583

$3,167,583 $3,167,583

Month 24

$14,379,600 $0 $14,379,600

$0

$1,930,919 $0

7%

$1,930,919

$0

$0

$0

$0

$0

$0

$0

$0

$0

$27,584,550 $1,722,000 $1,465,328 $30,771,878

$0

$11,627 $250

$4,166.67 $1,346,223 $142,541

$22,859 $134,622 $14,254

$20,573 $134,622 $14,254

$18,288 $134,622 $14,254

$16,002 $134,622 $14,254

$13,716 $134,622 $14,254

$11,430 $134,622 $14,254

$9,144 $134,622 $14,254

$6,858 $134,622 $14,254

$4,572 $134,622 $14,254

$2,286 $134,622 $14,254

$21,770

$13,095

$0

$0

$0

$0

$0

$0

$0

$0

$193,506 $0

$182,545 ($0)

$167,164 $0

$164,878 $0

$162,592 ($0)

$160,306 $0

$158,020 ($162,075)

$155,734 $3,011,848

$153,448 $3,014,134

$151,162 $3,016,420

$625 $11,250 $103,716 $20,833.33 $7,824.56 $3,579,975 $0

total

$1,395,228 $25,000 $206,884 $6,000 $404,910 $23,757 $30,000 $100,000 $170,975 $374,781 $3,167,582 $318,350 $10,000 $15,000 $20,000 $25,000 $225,000 $351,000 $1,242,588 $20,000 $1,000,000 $187,789 $0 $54,471,322 $8,880,328

$0 ($0) $0 $0 ($0) ($1) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ($0) $0 $0 $0 $0 $0 $0 $257,412 $0 $0 $0 $0 $257,412 ($257,412) $1 $0

3rd & Binney Apartments and Condos

100.000%

3rd and Binney Condos Sales Schedule 12/13/13

# of Units 6 18 6 6 6 6 6 Subtotal 54 Floors 8-15 7 16 8 8 8 8 8 6 Subtotal 69 Total Condo Units 123 Floors 2-7

Unit Type studio A studio B 2 bedroom A 2 bedroom B 3 bedroom A 3 bedroom B 3 bedroom C

Net Sq Ft 432.0 435.0 913.5 918.0 1030.0 1109.0 1134.0

Cost/Sq Ft 648.1 655.2 629.4 631.8 665.0 631.2 639.3

For Sale PricTotal Sales Proceeds $280,000 $1,680,000 $285,000 $5,130,000 $575,000 $3,450,000 $580,000 $3,480,000 $685,000 $4,110,000 $700,000 $4,200,000 $725,000 $4,350,000

studio C 1 bedroom A 2 bedroom C 2 bedroomB 2 bedroom A 3 bedroom C 3 bedroomB 3 bedroom A

518.0 609.0 823.5 918.0 913.5 1134.0 1109.0 1030.0

617.8 624.0 637.5 631.8 629.4 639.3 631.2 665.0

$320,000 $380,000 $525,000 $580,000 $575,000 $725,000 $700,000 $685,000

13,027

$2,240,000 $6,080,000 $4,200,000 $4,640,000 $4,600,000 $5,800,000 $5,600,000 $4,110,000 $63,670,000 Unit type studio 1 bedroom 2 bedroom 3 bedroom TOTAL less recording costs

Sales Proceeds $9,050,000 $6,080,000 $20,370,000 $28,170,000 $63,670,000 $318,350

NET SALE PROCEEDS $63,351,650

33

0.50%

Mixed-use & Mixed-income Development

3rd and Binney Condos Estimated Condominium Fees/Operating Expenses

Total Units

123 Condominium Budget: Landscaping Snow Removal Master Condo Fee Condo Mgmt Fees Condo Manager Payroll Banking Fees Telephone Legal Exterminating General Repairs Janitorial Supplies Janitor Payroll Trash Removal Elevator HVAC ‐ Maintenance Insurance Fire System Sprinkler Systems Electricity Gas Water/Sewer Tax Preparation Misc Admin Replacement Reserves Total Condo Fees Per Unit Average

34

3rd & Binney Apartments and Condos

Monthly 0.0 0.0 4000.0 3690.0 3600.0 100.0 1000.0 208.3 100.0 400.0 300.0 2520.0 1666.7 3000.0 1000.0 3587.5 800.0 500.0 4100.0 5125.0 3587.5 300.0 300.0 3988.5 43873.5 356.7

Annual Notes 0 included in Master Condo Fee 0 included in Master Condo Fee 48000 (master mgmt, snow removal, landscaping) 44280 $30/Per Door 43200 40 hours/week at $30/hour 1200 Checking Account/Reserve Account/Direct Deb 12000 Answering Service/Fire Alarm Line/Elevator Lin 2500 Collection Issues/Recording of Trustee docume 1200 Preventative Maintenance Contract 4800 Exterior Repairs//Hallway Repairs 3600 Cleaning products/Shovel/Rock Salt/Keys 30240 30 hours/week @$21/hou6 hours per week‐Part‐time cleaner 20000 Trash/Recycling 36000 600 per high rise cab Elevator contract/State‐testing/permits 12000 Bi‐Annual Service 43050 Insurance policy for 126 units in one bldg 9600 Fire Alarm Contract/Monitoring/Testing 6000 Quarterly Testing 49200 Common Area only 61500 Common Area only 43050 350 per unit per year 3600 Annual Tax Preparation/Filing 3600 As Needed 47862 10% of Condo Fees‐ Fannie Mae Freddie Mac 526482

3rd and Binney Apartments Sources and Uses of Funds 12/13/13

DHCD allowable fee

Total

Sources (cash) Const/Bridge Loan ‐ MassHousing (Tax Exempt) Const/Bridge Loan Repayment MassHousing Permanent Loan 9% LIHTC Syndication Proceeds ‐ 40 units 4% LIHTC Syndication Proceeds ‐ 80 units Priority Development Fund ‐ MassHousing State HOME Cambridge Housing Trust Cambridge HOME Affordable Housing Trust Cash Equity Total Surplus/(Gap)

$49,000,000 ($49,000,000) $43,500,000 $10,000,000 $9,397,822 $2,704,367 $1,000,000 $3,000,000 $1,000,000 $1,000,000 $12,556,249 $0 $84,158,438 $0

Affordable 120 units $17,000,000 ($17,000,000) $6,000,000 50,000 $10,000,000 $1.00 $9,397,822 $1.00 $2,704,367 $1,000,000 $8,333 $3,000,000 $40,000 $1,000,000 $8,333 $1,000,000 $8,333 $0 $34,102,189 $0

ACQUISITION Land HARD COSTS Construction Shared Parking Cost Contingency

Cost

per unit per unit per unit per unit per unit

Calculated Fee

75%

$0 $0 $0 $ 12,556,249 $50,056,249 ($0)

3.25% 4% Credit Rate

1.3

$33,365,048.56 $43,374,563.13 $1,409,673.30 $14,096,733.02 $117,472.78

Market Rate Per Unit

% of TDC

Cost

Per Unit

$149,850 $149,850

$1,248.75 $1,248.75

0.4% $ 183,150 0.4% $ 183,150

$1,006.32 $1,006.32

$ 225.00 $ 60,222,487.50 $ 35,000.00 $4,228,000 $3,222,524 subtotal $ 67,673,011.88

$23,929,465 $1,680,000 $1,280,473.26 $26,889,938

$199,412.21 $14,000.00 $10,670.61 $224,082.82

70.2% $ 36,293,022 4.9% $ 2,548,000 3.8% $1,942,051 78.9% $ 40,783,073

$199,412.21 $14,000.00 $10,670.61 $224,082.82

$3,383,651 $1,344,496.92 $16,000 $6,000 $507,548 $201,675 $ 676,730.12 $268,899.38 $15,000 $7,500 $23,757 $9,503 $150,000 $50,000 $128,000 $57,600 $7,160 $580 $215,000 $15,000 $60,000 $20,000 $35,000 $20,000 $12,000 $6,000 $15,000 $7,500 $20,000 $10,000 $35,000 $30,000 $325,000 $175,000 $20,000 $20,000 $499,580 $92,290 $490,000 $170,000 $1,886,500 $654,500 $10,000 $10,000.00 $20,000 $15,000 $25,000 $12,500 3,249,290 1,624,645 $2,436,968 $1,624,645 $285,244 $129,066.67 $120,000 $120,000 $1,485,000 $360,000

$11,204.14 $50.00 $1,680.62 $2,240.83 $62.50 $79.19 $416.67 $480.00 $4.83 $125.00 $166.67 $166.67 $50.00 $62.50 $83.33 $250.00 $1,458.33 $166.67 $769.08 $1,416.67 $5,454.17 $83.33 $125.00 $104.17 $13,538.71 $13,538.71 $1,075.56 $1,000.00 $3,000.00

subtotal

LIHTC Basis with basis boost Annual Credit using 4% Creits Total 4% Credits per unit 9% LIHTC equity per unit

13.1% ROE* *based on 90% of CF to Mkt Rate

$333,000 $333,000

subtotal

SOFT COSTS A/E Design & Inspection A/E Additional Services Bond Permits Survey Geo/Environmental Assessment Clerk Insurance RE Taxes Marketing/Lease Up ENV Contingency Title and Recording Appraisal Traffic Study Lender & LP Review and Inspection Cost Certification/Accounting Legal Developer City Counsel Perm Loan Appl, Legal + Loan Fees Const Loan Fee & Legal Const Loan Interest DHCD Tax Credit Fees Other Consultants Testing Developer Overhead Developer Fee Soft Cost Contingency Syndication Costs Operating Reserves

Total Development Costs

raise raise

Affordable

Total Uses (cash)

Market Rate 182 units $32,000,000 ($32,000,000) $37,500,000 $0

Fee Cost Basis: $30,492,899 15% 3,000,000 450,000 12.5% 2,000,000 250,000 10% 25,492,899 2,549,290 3,249,290 1,624,645 fee 1,624,645 overhead

$16,152,426

$7,062,400

$58,853.33

$84,158,438

$34,102,189

$284,184.90

3.9% 0.0% 0.6% 0.8% 0.0% 0.0% 0.1% 0.2% 0.0% 0.0% 0.1% 0.1% 0.0% 0.0% 0.0% 0.1% 0.5% 0.1% 0.3% 0.5% 1.9% 0.0% 0.0% 0.0% 4.8% 4.8% 0.4% 0.4% 1.1%

100.0%

$ 2,039,153.67 $ 10,000 $305,873 $407,830.73 $ 7,500 $ 14,254 $ 100,000 $ 70,400 $ 6,580 $ 200,000 $ 40,000 $ 15,000 $ 6,000 $ 7,500 $ 10,000 $ 5,000 $ 150,000 $ ‐ $407,290 $320,000 $1,232,000 $ ‐ $ 5,000 $ 12,500 $ 1,624,645 $ 812,323 $156,176.98 $ ‐ $ 1,125,000

$11,204.14 $54.95 $1,680.62 $2,240.83 $41.21 $78.32 $549.45 $386.81 $36.15 $1,098.90 $219.78 $82.42 $32.97 $41.21 $54.95 $27.47 $824.18 $0.00 $2,237.86 $1,758.24 $6,769.23 $0.00 $27.47 $68.68 $8,926.62 $4,463.31 $858.12 $0.00 $6,181.32

$ 9,090,026

$49,945.20

$50,056,249

% of TDC 0.4% 0.4% 0.0% 72.5% 5.1% 3.9% 81.5% 0.0% 4.1% 0.0% 0.6% 0.8% 0.0% 0.0% 0.2% 0.1% 0.0% 0.4% 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.3% 0.0% 0.8% 0.6% 2.5% 0.0% 0.0% 0.0% 3.2% 1.6% 0.3% 0.0% 2.2%

0.4%

35

55.0%

3.5% 1.0% 3.0%

$275,034.34

Mixed-use & Mixed-income Development

3rd and Binney Apartments Cash Flow During Construction 12/13/2013

SOURCES of Funds Const/Bridge Loan ‐ MassHousing (Tax Exempt Const/Bridge Loan Repayment MassHousing Permanent Loan 9% LIHTC Syndication Proceeds ‐ 40 units 4% LIHTC Syndication Proceeds ‐ 80 units State HOME Cambridge Housing Trust Cambridge HOME Affordable Housing Trust Cash Equity

36

$81,454,071

USES of Funds

USES

6.00%

Jan‐14 Closing

Feb‐14 Month 1

Mar‐14 Month 2

Apr‐14 Month 3

$0 ($9,010,930) Closing

$0 ($1,496,028) Month 1

$0 ($1,496,923) Month 2

$0 ($1,496,028) Month 3

May‐14 Month 4

Jun‐14 Month 5

Jul‐14 Month 6

Aug‐14 Month 7

Sep‐14 Month 8

Oct‐14 Month 9

Nov‐14 Month 10

Dec‐14 Month 11

$49,000,000 ($49,000,000) $43,500,000 $10,000,000 $9,397,822 $1,000,000 $3,000,000 $1,000,000 $1,000,000 $12,556,249

Total Sources

Acquisition Costs: Acquisition: Land SUBTOTAL: ACQUISITION COST

3rd & Binney Apartments and Condos

Sources

$333,000 $333,000

$333,000 $333,000

$0

Construction Costs: Construction Shared Parking Cost Contingency

$60,222,488 $4,228,000 $3,222,524

$1,204,449.75 $84,560 $64,450.49

SUBTOTAL: CONSTRUCTION COST

$67,673,012

General Development Costs: A/E Design & Inspection A/E Additional Services Bond Permits Survey Geo/Environmental Assessment Clerk Insurance RE Taxes Marketing/Lease Up ENV Contingency Title and Recording Appraisal Traffic Study Lender & LP Review and Inspection Cost Certification/Accounting Legal Developer City Counsel Perm Loan Appl, Legal + Loan Fees Const Loan Fee & Legal Const Loan Interest DHCD Tax Credit Fees Other Consultants Testing Developer Overhead Developer Fee Soft Cost Contingency Syndication Costs Operating Reserves SUBTOTAL: SOFT COSTS TOTAL ACQ., CONSTR., & SOFT COSTS

$3,383,651 $16,000 $507,548 $676,730 $15,000 $23,757 $150,000 $128,000 $7,160 $215,000 $60,000 $35,000 $12,000 $15,000 $20,000 $35,000 $325,000 $20,000 $499,580 $490,000 $1,886,500 $10,000 $20,000 $25,000 $3,249,290 $2,436,968 $285,244 $120,000 $1,485,000 $16,152,426 $84,158,438

$2,706,920

Total DEVELOPMENT COST

$84,158,438

$9,010,930

$507,548 $676,730 $15,000 $23,757 $128,000

$35,000 $12,000 $15,000 $5,000 $11,000 $308,750 $14,000 $499,580 $490,000 $10,000 $20,000 $0 $1,624,645 $90,000 $1,485,000 $8,677,930 $9,010,930

$0 2%

$0

$0 $0 ($1,476,028) ($1,470,673) Month 4 Month 5

$0

$0

$0 $0 $0 $0 $0 $0 ($1,469,778) ($1,469,778) ($2,147,403) ($2,146,508) ($2,146,508) ($2,824,133) Month 6 Month 7 Month 8 Month 9 Month 10 Month 11

$0

$0

$0

$0

$0

$0

2% 2% $1,204,450 $1,204,450 $84,560 $84,560 $64,450 $64,450

2% 2% 2% 2% 3% 3% 3% 4% $1,204,450 $1,204,450 $1,204,450 $1,204,450 $1,806,675 $1,806,675 $1,806,675 $2,408,900 $84,560 $84,560 $84,560 $84,560 $126,840 $126,840 $126,840 $169,120 $64,450 $64,450 $64,450 $64,450 $96,676 $96,676 $96,676 $128,901

$1,353,460

$1,353,460

$1,353,460

$1,353,460

$1,353,460

$1,353,460

$1,353,460

$2,030,190

$2,030,190

$2,030,190

$2,706,920

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$894.94

$895

$895

$895

$20,000

$20,000

$20,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$6,250 $67,693.54

$6,250 $67,693.54

$6,250 $67,693.54

$6,250 $67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$142,567 $1,496,028

$143,462 $1,496,923

$142,567 $1,496,028

$122,567 $1,476,028

$117,212 $1,470,673

$116,317 $1,469,778

$116,317 $1,469,778

$117,212 $2,147,403

$116,317 $2,146,508

$116,317 $2,146,508

$117,212 $2,824,133

$1,496,028

$1,496,923

$1,496,028

$1,476,028

$1,470,673

$1,469,778

$1,469,778

$2,147,403

$2,146,508

$2,146,508

$2,824,133

Jan‐15 Month 12

Feb‐15 Month 13

Mar‐15 Month 14

Apr‐15 Month 15

May‐15 Month 16

Jun‐15 Month 17

Jul‐15 Month 18

Aug‐15 Month 19

Sep‐15 Month 20

Oct‐15 Month 21

Nov‐15 Month 22

Dec‐15 Month 23

Jan‐16 Month 24

Jan‐16 Month 25

Total Sources $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

$0 $0 $0 ($2,823,238) ($2,823,238) ($3,500,863) Month 12 Month 13 Month 14

$0

$0

$0 ($3,499,968) Month 15

$0 ($3,499,968) Month 16

$0 ($3,500,863) Month 17

$0 ($4,176,698) Month 18

$0 ($4,176,698) Month 19

$0 ($4,177,593) Month 20

$0 ($4,176,698) Month 21

$0 ($4,932,512) Month 22

$0 ($4,933,407) Month 23

$0 ($4,962,512) Month 24

5% $3,011,124 $211,400 $161,126

5% $3,011,124 $211,400 $161,126

5% $3,011,124 $211,400 $161,126

6% $3,613,349 $253,680 $193,351

6% $3,613,349 $253,680 $193,351

6% $3,613,349 $253,680 $193,351

6% $3,613,349 $253,680 $193,351

7% $4,215,574 $295,960 $225,577

7% $4,215,574 $295,960 $225,577

7% $4,215,574 $295,960 $225,577

$2,706,920

$2,706,920

$3,383,651

$3,383,651

$3,383,651

$3,383,651

$4,060,381

$4,060,381

$4,060,381

$4,060,381

$4,737,111

$4,737,111

$4,737,111

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$28,197 $666.67

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$6,250.00

$71,666.67

$895 $71,666.67

$71,666.67

$895

$625 $1,000

$625 $1,000

$895

$625 $1,000

$625 $1,000

$625 $1,000

$895

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000

$625 $1,000 $5,417 $2,000

$625 $1,000 $5,417 $2,000

7%

$0

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$67,693.54

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15

$11,885.15 $30,000

$116,317 $2,823,238

$116,317 $2,823,238

$117,212 $3,500,863

$116,317 $3,499,968

$116,317 $3,499,968

$117,212 $3,500,863

$116,317 $4,176,698

$116,317 $4,176,698

$117,212 $4,177,593

$116,317 $4,176,698

$195,401 $4,932,512

$196,296 $4,933,407

$225,401 $4,962,512

$2,823,238

$3,500,863

$3,499,968

$3,499,968

$3,500,863

$4,176,698

$4,176,698

$4,177,593

$4,176,698

$4,932,512

$4,933,407

$4,962,512

$67,673,012

$4,323,468 $4,323,468

$4,323,468

$0 $0 $0 $84,158,438

$625 $1,000 $5,417 $2,000

$67,693.54

$60,222,488 $4,228,000 $3,222,524

$3,383,651 $16,000 $507,548 $676,730 $15,000 $23,757 $150,000 $128,000 $7,160 $215,000 $60,000 $35,000 $12,000 $15,000 $20,000 $35,000 $325,000 $20,000 $499,580 $490,000 $1,886,500 $10,000 $20,000 $25,000 $3,249,290 $2,436,968 $285,244 $120,000 $1,485,000 $16,152,426 $84,158,438

$1,886,500

$2,823,238

$0 ($84,158,438) Total Uses $333,000 $333,000

$0

4% 4% 5% $2,408,900 $2,408,900 $3,011,124 $169,120 $169,120 $211,400 $128,901 $128,901 $161,126

$625 $1,000

$0 ($4,323,468)

$2,436,968

($49,000,000) $49,000,000 ($43,500,000) ($10,000,000) ($9,397,822) ($1,000,000) ($3,000,000) ($1,000,000) ($1,000,000) ($12,556,249) ($81,454,071) ($84,158,438) $0 $0 $0 $0 $0 $0 $0 $0 $0

107%

$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

37

Mixed-use & Mixed-income Development

3rd and Binney Apartments 15‐Year Operating Projection 12/13/13

Units

Affordable Market Rate

Total Units 60% AMI Vacancy Rate Market Rate Vacancy Rate Commercial Vacancy Rate MRVP Income Trending 60% Income Trending S8 income Trending Other Income Trending Operating Expense Trending Water and Sewer Trending Real Estate Taxes Trending

38

Year Revenue

Gross Rental Revenue Less Vacancy Total Vacancy Net Rental Income Other Income Draw on Reserve Total Net Revenue Operating Expenses Administrative

Total Administrative Maintenance

Total Maintenance Utilities

Total Utilities MIP Real Estate Taxes ‐ Affordable Real Estate Taxes ‐Market Insurance Replacement Res. Total Operating Expenses Net Operating Income Debt Service Net Cash Flow

Year 1

$7,792,776 60% AMI Market Rate Commercial

Year 4

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 5

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 6

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 7

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 8

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 9

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 10

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 11

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 12

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5% Year 13

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5%

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5%

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 4.0% 2.5%

Year 14

Year 15

Year 16

$1,691,752 $6,578,004 $0 $8,269,756 $84,588 $526,240 $0 $610,828

$1,725,587 $6,709,564 $0 $8,435,151 $86,279 $536,765 $0 $623,044

$1,760,099 $6,843,755 $0 $8,603,854 $88,005 $547,500 $0 $635,505

$1,795,301 $6,980,630 $0 $8,775,931 $89,765 $558,450 $0 $648,215

$1,831,207 $7,120,243 $0 $8,951,450 $91,560 $569,619 $0 $661,180

$1,867,831 $7,262,648 $0 $9,130,479 $93,392 $581,012 $0 $674,403

$1,905,188 $7,407,901 $0 $9,313,089 $95,259 $592,632 $0 $687,891

$1,943,292 $7,556,059 $0 $9,499,350 $97,165 $604,485 $0 $701,649

$1,982,157 $7,707,180 $0 $9,689,337 $99,108 $616,574 $0 $715,682

$2,021,801 $7,861,324 $0 $9,883,124 $101,090 $628,906 $0 $729,996

$2,062,237 $8,018,550 $0 $10,080,787 $103,112 $641,484 $0 $744,596

$2,103,481 $8,178,921 $0 $10,282,402 $105,174 $654,314 $0 $759,488

$2,145,551 $8,342,499 $0 $10,488,050 $107,278 $667,400 $0 $774,678

$7,217,179 $45,300

$7,361,523 $46,659

$7,508,753 $48,059

$7,658,928 $49,501

$7,812,107 $50,986

$7,968,349 $52,515

$8,127,716 $54,091

$8,290,270 $55,713

$8,456,076 $57,385

$8,625,197 $59,106

$8,797,701 $60,879

$8,973,655 $62,706

$9,153,128 $64,587

$9,336,191 $66,525

$9,522,915 $68,520

$9,713,373 $70,576

$7,262,479

$7,408,182

$7,556,812

$7,708,429

$7,863,092

$8,020,864

$8,181,807

$8,345,984

$8,513,460

$8,684,303

$8,858,581

$9,036,361

$9,217,715

$9,402,715

$9,591,435

$9,783,949

$254,187 $325,000 $65,000 $25,000 $20,000 $150,000 $24,000 $12,000 $6,000 $20,000 $40,000 $10,000 $951,187

$261,812 $334,750 $66,950 $25,750 $20,600 $154,500 $24,720 $12,360 $6,180 $20,600 $41,200 $10,300 $979,722

$269,667 $344,793 $68,959 $26,523 $21,218 $159,135 $25,462 $12,731 $6,365 $21,218 $42,436 $10,609 $1,009,114

$277,757 $355,136 $71,027 $27,318 $21,855 $163,909 $26,225 $13,113 $6,556 $21,855 $43,709 $10,927 $1,039,387

$286,089 $365,790 $73,158 $28,138 $22,510 $168,826 $27,012 $13,506 $6,753 $22,510 $45,020 $11,255 $1,070,569

$294,672 $376,764 $75,353 $28,982 $23,185 $173,891 $27,823 $13,911 $6,956 $23,185 $46,371 $11,593 $1,102,686

$303,512 $388,067 $77,613 $29,851 $23,881 $179,108 $28,657 $14,329 $7,164 $23,881 $47,762 $11,941 $1,135,767

$312,618 $399,709 $79,942 $30,747 $24,597 $184,481 $29,517 $14,758 $7,379 $24,597 $49,195 $12,299 $1,169,840

$321,996 $411,700 $82,340 $31,669 $25,335 $190,016 $30,402 $15,201 $7,601 $25,335 $50,671 $12,668 $1,204,935

$331,656 $424,051 $84,810 $32,619 $26,095 $195,716 $31,315 $15,657 $7,829 $26,095 $52,191 $13,048 $1,241,083

$341,606 $436,773 $87,355 $33,598 $26,878 $201,587 $32,254 $16,127 $8,063 $26,878 $53,757 $13,439 $1,278,315

$351,854 $449,876 $89,975 $34,606 $27,685 $207,635 $33,222 $16,611 $8,305 $27,685 $55,369 $13,842 $1,316,665

$362,410 $463,372 $92,674 $35,644 $28,515 $213,864 $34,218 $17,109 $8,555 $28,515 $57,030 $14,258 $1,356,165

$373,282 $477,273 $95,455 $36,713 $29,371 $220,280 $35,245 $17,622 $8,811 $29,371 $58,741 $14,685 $1,396,850

$384,480 $491,592 $98,318 $37,815 $30,252 $226,888 $36,302 $18,151 $9,076 $30,252 $60,504 $15,126 $1,438,755

$396,015 $506,339 $101,268 $38,949 $31,159 $233,695 $37,391 $18,696 $9,348 $31,159 $62,319 $15,580 $1,481,918

$125,000 $25,000 $25,000 $50,000 $75,000 $75,000 $25,000 $40,000 $30,000 $10,000 $30,000 $12,500 $522,500

$128,750 $25,750 $25,750 $51,500 $77,250 $77,250 $25,750 $41,200 $30,900 $10,300 $30,900 $12,875 $538,175

$132,613 $26,523 $26,523 $53,045 $79,568 $79,568 $26,523 $42,436 $31,827 $10,609 $31,827 $13,261 $554,320

$136,591 $27,318 $27,318 $54,636 $81,955 $81,955 $27,318 $43,709 $32,782 $10,927 $32,782 $13,659 $570,950

$140,689 $28,138 $28,138 $56,275 $84,413 $84,413 $28,138 $45,020 $33,765 $11,255 $33,765 $14,069 $588,078

$144,909 $28,982 $28,982 $57,964 $86,946 $86,946 $28,982 $46,371 $34,778 $11,593 $34,778 $14,491 $605,721

$149,257 $29,851 $29,851 $59,703 $89,554 $89,554 $29,851 $47,762 $35,822 $11,941 $35,822 $14,926 $623,892

$153,734 $30,747 $30,747 $61,494 $92,241 $92,241 $30,747 $49,195 $36,896 $12,299 $36,896 $15,373 $642,609

$158,346 $31,669 $31,669 $63,339 $95,008 $95,008 $31,669 $50,671 $38,003 $12,668 $38,003 $15,835 $661,887

$163,097 $32,619 $32,619 $65,239 $97,858 $97,858 $32,619 $52,191 $39,143 $13,048 $39,143 $16,310 $681,744

$167,990 $33,598 $33,598 $67,196 $100,794 $100,794 $33,598 $53,757 $40,317 $13,439 $40,317 $16,799 $702,196

$173,029 $34,606 $34,606 $69,212 $103,818 $103,818 $34,606 $55,369 $41,527 $13,842 $41,527 $17,303 $723,262

$178,220 $35,644 $35,644 $71,288 $106,932 $106,932 $35,644 $57,030 $42,773 $14,258 $42,773 $17,822 $744,960

$183,567 $36,713 $36,713 $73,427 $110,140 $110,140 $36,713 $58,741 $44,056 $14,685 $44,056 $18,357 $767,309

$189,074 $37,815 $37,815 $75,629 $113,444 $113,444 $37,815 $60,504 $45,378 $15,126 $45,378 $18,907 $790,328

$194,746 $38,949 $38,949 $77,898 $116,848 $116,848 $38,949 $62,319 $46,739 $15,580 $46,739 $19,475 $814,038

200 300 0 325

$60,400 $90,600 $0 $98,150 $249,150

$62,212 $93,318 $0 $104,039 $259,569

$64,078 $96,118 $0 $110,281 $270,477

$66,001 $99,001 $0 $116,898 $281,900

$67,981 $101,971 $0 $123,912 $293,864

$70,020 $105,030 $0 $128,869 $303,919

$72,121 $108,181 $0 $134,023 $314,325

$74,284 $111,427 $0 $139,384 $325,095

$76,513 $114,769 $0 $144,960 $336,242

$78,808 $118,212 $0 $150,758 $347,779

$81,173 $121,759 $0 $156,788 $359,720

$83,608 $125,412 $0 $163,060 $372,079

$86,116 $129,174 $0 $169,582 $384,872

$88,699 $133,049 $0 $176,366 $398,114

$91,360 $137,041 $0 $183,420 $411,821

$94,101 $141,152 $0 $190,757 $426,010

500 3500 350 $350.00

$60,000 $637,000 $105,700 $105,700 $2,631,237

$61,500

$63,038

$64,613

$66,229

$67,884

$69,582

$71,321

$73,104

$74,932

$76,805

$78,725

$80,693

$82,711

$84,778

$86,898

$108,871 $108,871 $2,056,708

$112,137 $112,137 $2,121,223

$115,501 $115,501 $2,187,853

$118,966 $118,966 $2,256,673

$122,535 $122,535 $2,325,281

$126,211 $126,211 $2,395,989

$129,998 $129,998 $2,468,861

$133,898 $133,898 $2,543,964

$137,915 $137,915 $2,621,367

$142,052 $142,052 $2,701,141

$146,314 $146,314 $2,783,359

$150,703 $150,703 $2,868,096

$155,224 $155,224 $2,955,432

$159,881 $159,881 $3,045,445

$164,677 $164,677 $3,138,218

150

3.50% 20%

50

Payroll Payroll Taxes & Ben Janitorial Mat. & Svc Landscaping Decorating (int. only) Repairs Trash Removal Elevator Maintenance Snow removal Exterminating Alarm & Sprinkler Maint.

Misc.

3rd & Binney Apartments and Condos

Year 3

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 6.0% 2.5%

$1,658,581 $6,449,023 $0 $8,107,604 $82,929 $515,922 $0 $598,851

Management Fee Payroll Payroll Taxes & Ben Legal Audit Marketing Telephone Office Supplies LIHTC monitoring Asset Management Resident Services Misc.

First Mortgage

Year 2

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 6.0% 2.5%

$1,626,060 $6,322,572 $0 $7,948,632 $81,303 $505,806 $0 $587,109

Laundry

$8,712.70 per unit

5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 6.0% 2.5%

$1,594,176 $6,198,600 $0 $7,792,776 $79,709 $495,888 $0 $575,597

60% AMI Market Rate Commercial

Electricity Gas Oil Water & Sewer

120 182 302 5.0% 8.0% 8.0% 2.0% 2.0% 2.0% 3.0% 3.0% 6.0% 2.5%

20%

$4,631,242 $5,351,473 $5,435,589 $5,520,576 $5,606,420 $5,695,583 $5,785,818 $5,877,123 $5,969,497 $6,062,937 $6,157,440 $6,253,002 $6,349,619 $6,447,284 $6,545,990 $6,645,731 (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) (2,802,209) $1,829,034 $2,549,265 $2,633,380 $2,718,367 $2,804,211 $2,893,374 $2,983,609 $3,074,914 $3,167,288 $3,260,728 $3,355,231 $3,450,794 $3,547,410 $3,645,075 $3,743,782 $3,843,522

3rd and Binney Apartments Revenue Schedule 12/13/13

Household size 60% 1 person (studio) $39,660 1 person (1 bedroom$39,660 2 persons (2 bedroo $45,360 3 persons (3 bedroo $51,000 total

RENTAL: 40% of total units

Total Residential Un 60% AMI

Market Rate

Total Rental Units

# of Units

302 120 4 4 4 18 67 6 6 5 6 182 9 8 11 85 60 1 1 3 4 302

Unit Type

Net Sq FtGross Monthly RenRent/Sq Ft Yearly Rent

studio A 435 studio B 444 studio C 525 1 bedroom 609 2 bedroom 914 3 bedroom A 1,134 3 bedroom B 1,160 3 bedroom C 1,224 3 bedroom D 1,247 studio A 435 studio B 444 studio C 525 1 bedroom 609 2 bedroom 914 3 bedroom A 1,134 3 bedroom B 1,160 3 bedroom C 1,224 3 bedroom D 1,247 15,382

$892 $917 $942 $992 $1,134 $1,175 $1,200 $1,225 $1,275 $2,100 $2,150 $2,175 $2,700 $3,200 $3,800 $3,825 $3,900 $3,925 $37,525

2.05 2.07 1.79 1.63 1.24 1.04 1.03 1.00 1.02 4.83 4.85 4.14 4.43 3.50 3.35 3.30 3.19 3.15

$42,792 $43,992 $45,192 $214,164 $911,736 $84,600 $86,400 $73,500 $91,800 $226,800 $206,400 $287,100 $2,754,000 $2,304,000 $45,600 $45,900 $140,400 $188,400 $7,792,776

Affordable sf Market rate sf Total

Net Square Footage 105,147 130,767 235,914

Affordable Market Rate Total

Yearly Revenue $1,594,176 $6,198,600 $7,792,776

39

total

Mixed-use & Mixed-income Development