1 P3 CONNECT July 20, 2015 Jim Tucker Senior Vice President

SECTION TITLE | 2 2 WHY P3s? – FREEING CAPITAL FOR INVESTMENTS IN CORE ACADEMIC/RESEARCH MISSION Focus University investments on modernization of academic and research facilities Generate annual ground rents and unlocking the value of the land Add dynamic new street-level retail along major corridors Provide homeownership opportunities and neighborhood amenities such as childcare facility Papadakis Integrated Sciences Building, ,800 SF, $69M URBN Center, ,569 SF, $47M Gerri C. LeBow Hall, ,500 SF, $92M

SECTION TITLE | 2 3 CHESTNUT SQUARE – AMERICAN CAMPUS COMMUNITIES Winner, 2015 Philadelphia Urban Land Institute Willard G. “Bill” Rouse III Award for Excellence Opened Fall ,000 square feet, 861 beds $100 million 25,000 square feet of retail Yogorino, Shake Shack, Joe Coffee, Zavino, coZara, Plaza Artist Materials & Picture Framing, Franklin Mint Federal Credit Union

SECTION TITLE | 2 4 UNIVERSITY CROSSINGS – AMERICAN CAMPUS COMMUNITIES Winner INNOVATOR Award for “Most Creative Public/Private Partnership” by Student Housing Business magazine Land, sub-surface and air rights conveyed to Drexel in August 2013 Option to transfer building to Drexel at any time of DU’s choosing ACC investing $30M in renovations Total value: $68.5 million 1,016 beds 60-foot back-lit signage

SECTION TITLE | 2 5 THE SUMMIT – AMERICAN CAMPUS COMMUNITIES Winner, Philadelphia Business Journal’s Heavy Hitters of Real Estate “Top Deals” Award 2015 Opening September ,000 square feet, 1,316 beds $170 million 18,000 square feet retail 21,000 square foot student dining center

SECTION TITLE | 2 6 THE SUMMIT – URBAN EATERY $9.3M Capital Investment from Sodexo

SECTION TITLE | 2 7 THE STUDY AT UNIVERSITY CITY – HOSPITALITY 3 Opening Fall ,000 square feet 212 rooms Restaurant, Conference Center, Fitness Center Extended-stay rooms on top floor Operated by Study Hotels

SECTION TITLE | 2 8 UNIVERSITY CITY HIGH SCHOOL SITE – JOINT VENTURE 14-acre site adjacent to west end of Drexel’s campus Acquired June 2014 by Drexel University-Wexford Science & Technology joint venture Demolition of final building expected in fall million gross square feet of potential development $1 billion development value Wexford development plans include: residential, research, office, retail Winner, Philadelphia Business Journal’s Heavy Hitters of Real Estate “Top Deals” Award, 2015

SECTION TITLE | 2 9 MIXED-USE/CHILDCARE DEVELOPMENT – 3201 RACE 164 market-rate apartments 12 owner-occupied two-bedroom townhomes 175-capacity childcare facility run by third-party operator Currently in ground lease negotiations with Radnor Property Group

SECTION TITLE | 2 10 ADDITIONAL FUNDING STRATEGIES FOR CAPITAL PROJECTS RACP – State Grant Program: Used to help fund Papadakis ISB and LeBow Hall construction Tax Credits: Dornsife Center for Neighborhood Partnerships – New Market and Historic Tax Credits Sheller 11 th Street Family Health Services Center – New Market Tax Credits Kline Institute for Trial Advocacy – Pursuing Historic Tax Credits

SECTION TITLE | 2 11 Key Ground Lease Terms Key University Ground Lease Terms for P3 DEVELOPMENTS Ground Rent Fee Not Subordinated Completion Guarantee Restrictive Covenant Against the Land (Deed) Loan to Value Ratio Limits during construction and for permanent financing to keep Lessee's equity in the project Purchase Option Reserve Fund for Replacements

12