1. 505 Congress Street South Boston R E C REATE, LLC Tim Johnson, Jennifer Balkcom, Scott Nguyen, Arvind Pai, Alison Novak, Charu Singh Re-imagining the Boston Waterfront Canonical & Investment Goals

2. Program Green Landmark / Showcase 107 residential units 19,000 sf office 70 parking spaces FAR 4 Slender residential tower Mid-range Multifamily & On-Demand Office PROGRAM TIMEFRAME

3. Risk Estimation for Residential Permitting and Lease-up represent the riskiest phases. ResidentialRiskQuarterly Rate Rate Justification Time 0 -1 24 months Construction Cost escalation Permitting risk 1.23% 8.54% Assume 5% annual growth in construction costs Based on 29.5% over stabilized annually due to greatest risk Time 0 18 months Construction1.15% (3-yr T Bond, quarterly) 4.66% annual Risk free rate Time 1 12 months Lease-up2.43%Stabilized rate + 1.3% = 10.61% Time 2 Stabilized2.25%Based on KORPACZ IRR 9.31% annual

4. Risk Estimation for Commercial Commercial development poses slightly higher lease-up and stabilized risks. CommercialRiskQuarterly Rate Rate Justification Time 0 -1 24 months Cost escalation Permitting risk 1.23% 8.72% Assume 5% annual growth in construction costs Based on 29.54% over stabilized due to greatest risk Time 0 18 months Construction1.15% (3-yr T Bond, quarterly) 4.66% annual Risk free rate Time 1 12 months Lease-up2.76%Stabilized rate + 1.3% =11.51% Time 2 Stabilized2.46%Based on KORPACZ commercial IRR 10.21%

5. From Tod McGrath’s analysis of Massachusetts 40B projects…

6. NPV Part of soft cost taken as pre-development costs and compounded to time T(0) = $2.3m Quarterly construction costs broken out based on construction schedule Assuming an evenly distributed 12-month lease-up period Reversion value calculated using Korpacz cap rate for multi- family Growth rates for rents projected from TWR Boston forecast NPV: $9.5M, Canonical OCC:31.9% Project does meet NPV rule.

7. Ownership Goals Team ownership is based on a LLC structure. Property ownership is driven by greatest financial benefit Sell after entitlements? Sell after building and stabilization. Sell after building and 10yr operation? ReCreate’s ownership goals are driven by profit… … subject to cost constraints of non-financial returns

8. Investment Objectives Pecuniary Maximize financial return subject to equity and debt cost of capital… Investor’s Circle: 4-15% pre-tax (9.5%) KeyBank Equity:15% pre-tax KeyBank Loan: 6.54%, interest-only, $25k fees Deutsche Bank: 5.6% … and cost of non-pecuniary objectives Non-pecuniary Green building Affordable housing Quality project  reputation Foothold in South Boston Experience in development Triple Bottom Line led by profit.

9. 505 Congress Street Q & A