Alex Lin Emily Schwartz Sarah Snider Kate Wittels

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4 Executive Summary Vision: 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 Feet Phase 2 – 1.3 Million Square Feet Phase 3 – 200,000 Square Feet Phase 4 – 400,000 Square Feet Deal Structure: Three Way Partnership: Developer, MIT, Private Investor

5 Development 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 Plan

7 Program 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 SF 260,000 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)

8 Market Residential - Rental Strong Demand From MIT and Surrounding Biotech MIT Needs At Least 500 Rooms Residential Condo NorthPoint to Bring Large Increase in Supply Apartments With Option to Convert Are Good Choose Retail Not a Location for Destination Retail Mix of Restaurants/Bars/Grocery Will Add to 24-Hour Vibrancy $35.00 NNN Average Retail Rent

9 Market Continued… Lab/R&D Driven by Large Biotech Companies and Institutions 8.6% Availability Rate and $55.00 NNN Average Rents Office Driven by Similar Users as R&D as Well as Technology Companies 11% Availability Rate and $49.00 Gross Average Rents Hotel Demand From Surrounding Businesses and Universities Need for Extended Stay Hotel & Mid- Scale Options

10 Design Approach Shire Building Serves as a Natural Divide Greenway Provides Continuity Through Site Flexible Options Allow Project to Quickly Respond to Market Conditions Design Components 100% Corner – Entertainment Zone Mass Ave Residential Zone Main Street Residential Zone Dedicated Academic Zone

11 Entertainment Zone 100% 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

12 Mass Ave Residential Zone Maintain solid street edge along Mass Ave. Student Housing Luxury Housing Complex Continuous first floor retail along Mass Ave.

13 Main Street Residential 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

14 Academic 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

15 Permitting Approach Proposal includes 3.23 FAR Maximum FAR If All Residential = 3.85 Maximum 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 community 3.23 is likely to be acceptable to Cambridge

16 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

17 Financial Summary  Total Development Cost Hard 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) WACC7.5% Terminal Cap Rate6.5%

18 Sensitivity Analysis WACC:7.0%7.5%8.0%8.5%9.0% 5.0% 388,320, ,119, ,496, ,176, ,905, % 329,079, ,879, ,971, ,099, ,032, % 279,711, ,846, ,033, ,036, ,638, % 237,939, ,895, ,700, ,136, ,997, % 202,134, ,508, ,559, ,078,761 82,876,833 Terminal Cap Rate:

19 Deal Structure Special Purpose Vehicle (e.g., Trust or LLC) Equity Capital Funding – Three-way partnership Developer – “first in, last out” Developer fee Promote MIT Endowment – “second in, second out” Preferred return Promote Private Investor – “last in, first out” Preferred return Promote Debt Capital Funding: Commercial Lender