Alex Lin Emily Schwartz Sarah Snider Kate Wittels

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Executive SummaryExecutive SummaryVision:

Redeveloping and revitalizing the 22-acre site (Osborn Triangle) into a 24-hr mixed-used community with flexible development options to adapt to future needs of MIT and the surrounding community.

Program:The program will consist of 2.4 Million Square Feet In a Mix of Uses

Phases:Phase 1 – 500,000 Square FeetPhase 2 – 1.3 Million Square FeetPhase 3 – 200,000 Square FeetPhase 4 – 400,000 Square Feet

Deal Structure: Three Way Partnership: Developer, MIT, Private Investor

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Development VisionDevelopment Vision

“This 22 acre redevelopment plan seeks to lead MIT into the future by re-branding the campus of the

world’s leading technical institute into a vibrant and urban

educational community.”

Master PlanMaster Plan

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ProgramProgram

Total Square Feet in Four Phases of Development: 2,400,000 (2,670,000, including Shire

Building)

Total FAR: 3.23

Total For MIT Use: 1,150,000 SF260,000 SF (Student Dorms & Fraternity –

600 beds)325,000 SF (Office)500,000 SF (Lab/R&D)64,00 SF (Conference/Special Use)

Total Speculative Development: 1,300,000 SF

630,000 SF (Residential – 630 Units)80,000 SF (Office)156,000 SF (Lab/R&D)300,000 SF (Hotel – 679 Units)22,000 SF (Retail)46,000 (Garage)35,000 (Special Use)

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MarketMarketResidential - Rental

Strong Demand From MIT and Surrounding Biotech

MIT Needs At Least 500 RoomsResidential Condo

NorthPoint to Bring Large Increase in Supply

Apartments With Option to Convert Are Good Choose

RetailNot a Location for Destination

RetailMix of Restaurants/Bars/Grocery

Will Add to 24-Hour Vibrancy$35.00 NNN Average Retail Rent

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Market Continued…Market Continued…Lab/R&D

Driven by Large Biotech Companies and Institutions

8.6% Availability Rate and $55.00 NNN Average Rents

OfficeDriven by Similar Users as R&D as

Well as Technology Companies11% Availability Rate and $49.00

Gross Average RentsHotel

Demand From Surrounding Businesses and Universities

Need for Extended Stay Hotel & Mid-Scale Options

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Design ApproachDesign Approach

Shire Building Serves as a Natural DivideGreenway Provides Continuity Through SiteFlexible Options Allow Project to Quickly

Respond to Market Conditions

Design Components100% Corner – Entertainment ZoneMass Ave Residential ZoneMain Street Residential ZoneDedicated Academic Zone

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Entertainment Zone100% Corner

Entertainment Zone100% Corner

Massachusetts Ave. and Osborn St.

Two hotels

Main entrance to convention center

Key retail elements

Access to performance artist space

24/hour corner

Site of Urban Ring Stop

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Mass Ave Residential Zone

Mass Ave Residential Zone

Maintain solid street edge along Mass Ave.

Student Housing

Luxury Housing Complex

Continuous first floor retail along Mass Ave.

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Main StreetResidential Zone

Main StreetResidential Zone

630 Market Rate Residential Units

Heights of Residential Buildings in line with Area Standard

Located residential zone on Main Street in keeping with neighborhood characteristics

Re-use of several existing buildings

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Academic ZoneAcademic Zone

Mix of R & D and Office Space

Closely integrated with existing campus facilities

Used Shire Building as Natural Buffer from Residential Zone

Agglomeration of academic uses

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Permitting ApproachPermitting Approach

Proposal includes 3.23 FARMaximum FAR If All Residential = 3.85Maximum FAR If No Residential = 2.81 Average FAR = 3.33

We are proposing 37% residential (including student housing)

Mixed use is in best interest of community3.23 is likely to be acceptable to Cambridge

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Community & Public Benefits

Community & Public Benefits

24-hour community with public amenities

Greenway and open space amenities

Preservation of historical structure – Shire Building integration

Redevelopment of under-used land, checking and cleaning up potential contamination

Promotion of flexible and green building standards

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Financial SummaryFinancial Summary

Total Development CostHard Costs $616.8 Million ($255/SF)Soft Costs $153.5 Million ($63/SF)Land Costs $200 Million ($75/SF)

Total Cash Flow $201.8 Million

Implied Land Value $200 Million ($75/SF)WACC 7.5%Terminal Cap Rate 6.5%

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Sensitivity AnalysisSensitivity Analysis

WACC: 7.0% 7.5% 8.0% 8.5% 9.0%

5.0%

388,320,550

342,119,440

299,496,673

260,176,508

223,905,237

5.5%

329,079,499

286,879,594

247,971,070

212,099,952

179,032,563

6.0%

279,711,957

240,846,389

205,033,067

172,036,156

141,638,668

6.5%

237,939,421

201,895,216

168,700,911

138,136,020

109,997,680

7.0%

202,134,390

168,508,496

137,559,062

109,078,761

82,876,833

Terminal Cap Rate:          

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Deal StructureDeal StructureSpecial Purpose Vehicle (e.g., Trust or LLC) Equity Capital Funding – Three-way partnership

Developer – “first in, last out”Developer feePromote

MIT Endowment – “second in, second out”Preferred returnPromote

Private Investor – “last in, first out”Preferred returnPromote

Debt Capital Funding: Commercial Lender Development Partnership Contribution Preferred Return PromoteEquity Capital

Developer Seed capital None 33%MIT Endowment Land Fixed 33%Private Investor Bridge Equity Fixed 33%

Debt CapitalCommercial Lender Construction Loan None None