“ Osborne” synergy

“Osborne” synergy

Chandan Singla: Kyungwon Kim : Sean Lee : Vipasha Dasgupta

MARKET RESEARCH o PROGRAM o FINANCIAL ANALYSIS o DEAL o DESIGN

Market Research


USE DEMAND RENT INFORMATION

Apartments 500 $3 – 3.5 / Month

Highest rent - $62/3 housing- rental

Condominium 250 units – 1BR1000 units – 2 BR

$ 500-600 psf Pipeline – 1500North point- 2700

Office 100,000 sf/ yr $ 50-55 psf-gross

Advantage- Proximity to MIT, Housing, Synergy

R& D Labs 200,000 sf/yr $ 60-75 psf-gross

Sound ,Stable Market Agglomeration

Hotel 300-400 rooms ADR $200-300 No pipeline for next 3 yrsHigh demand for midscale and extended stay

Retail 50000 sf $ 40 – 50 psf Cater to the adjacent uses

MIT Requirement

USES PRESCRIBED INFORMATION

ACADEMIC, RESEARCH, TEACHING, COMMUNITY SPACE

600,000 SFPhasing 2011-2015

CONFERENCE FACILITIES 1000 PARTICIPANTS

PERFORMING ARTS CENTER 36,000 SF

GRADUATE HOUSING 500 Beds – 1 BR, 2 BR

MIT Museum , Zeta Psi Fraternity Relocated


OUR PROGRAM

USE REQUIRED PROVIDED

ACADEMIC, COMMUNITY

600,000 SF 450,000 + 30000 SF

FACULTY HOUSING 92 Units- 92000

STUDENT HOUSING 500 BEDS 480 , Phased

PERFORMING ARTS 36,000 SF 36000 SF

APARTMENTS 500 units 560 units

CONDOMINIUMS 1000 + 250 units 223 units

OFFICE 100,000 sf/yr 503500 sf , Phased

R&D LAB 200,000 sf/yr 515200 sf , Phased

HOTEL 300-400 rooms 400 rooms

RETAIL 50,000 sf 43,700 sf, Phased


FAR

• Program Summary

• FAR: 3.52 (including Shire building), otherwise 3.12

USES: % of total 　 GSFMarket

Absorption Phasing

Office 19% 503,500 300,000 sf/yr 2 (60:40)

Retail 1.61% 43,700 50,000 sf 2 (40:60)

Hotel 7% 190,000 300-400 rooms 1 (100)

R&D-Lab 19% 515,200 200,000 sf/yr 2 (70:30)

Residential 18% 475,830 500 2 (70:30)

Faculty&Student Housing 7% 188,000 500 beds 1 (100)

Academic 18% 486,800 - 2 (70:30)

Affordable 3% 83,970 - 2 (70:30)

Condos 8% 223,200 220 units 1 (100)

Total 100% 2,710,200


Financial Analysis

• Assumptions

• [email protected]% : $325 million

USES: Ann　Gross　Rent Market　rate

Office 　$50.00　 Psf 　$40　–　50　 psf

Retail 　$45.00　 Psf 　$35　–　45 psf

Hotel 　$200.00　 ADR $200　–　300 ADR

R&D-Lab 　$65.00　 psf　　$60　–　75　 psf　

Residential 　$40.00　 psf　　$30　–　36　 psf　

Faculty&Student　Housing 　$40.00　 psf　　- psf　

Academic 　$40.00　 psf　 -　 psf　

Affordable 　$10.00　 psf　 -　 psf　

Condos 　$700.00　 Per　unit　 $500　-　600 per　unit

* Terminal　cap　rate:　7.0%


Deal Structure

• Forms of entities

– MIT holds the ownership of the land– For sales properties, MIT has the first right of purchase & refusal after

75 years of time period (for lease properties, 10 years)– Equity partner and the development split returns pari passu until they

reach 12% of the hurdle rate. After that, they go 50:50 for promote Within LLC, MIT and developer split 90:10.

Developer MIT

LLCEquity Partner

$345 M

The project

Cash: $20 M Land: $325 M

Equity: 35%

Debt : 65%


DESIGN CONCEPT

• SYNERGY– Weaving the development in the fabric of the

community– Be sensitive to the community – since MIT is

a partner to the Cambridge communities– Create a vibrant community


Neighborhood

RESIDENTIAL

R&D & RETAIL

TECH SQUARE, MARRIOT

INSTITUTIONAL

OFFICES & RETAIL

R&D


Retail gateway --

Subway exit /People/Retail/Food court


Community - Residential

Achieving a height which mirrors the residential neighborhood


Office district with Mass Av address


Shadow Study 9am


3 -d

Shadow Study 1 pm


Shadow Study 5 pm


Thank you

“ Osborne” synergy

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