NXT 50_RFP_BHFS_5.29.19_Link

50 Response for A.9. EXTRAORDINARY SERVICES

KEY SERVICES THAT DRIVETHENEEDLE FORBROWNSTEIN

Visioning

Market Evaluation

Best in Market Negotiators

4-TIME NAIOP TOP BROKER

WHAT DOES IT COST? V.2.0 1/22/18

BROWNSTEIN BASECASE and POTENTIAL OCCUPANCY ALTERNATIVES - Denver

Baseline /Basecase:May'18 -May'23 (61months)

LongTermOccupancyAlternatives:May'18 -Apr'33 (180months)

ANALYSIS OVERVIEW ($ IN MILLIONS)

BASECASE -Current+Expand 18th

ALT2:Relocate toBlock 162at Expiration (May'23)

ALT3:Terminate410 17th, Relocate (WFC)

BASELINE -Current

ALT 1:ExpandandStay at410 17th

PremisesSize (SF)

111,307SF

130,163SF

130,163SF

105,000SF

120,000SF

#ofAttorneys SF /Attorney

145 768

160 814

160 814

160 656

160 750

$ inMillions

TotalCostMetrics

NetPresentValue

$14.5

$17.4

$48.0

$55.7

$52.8

AnnuityEquivalent 1

$3.3

$3.9

$4.9

$5.7

$5.4

Capital and 1-TimeSpend 2

TotalRequiredBuildout andMove

$0.0

$0.8

$4.3

$18.5

$20.4

$0.0

$0.8

$4.3

$9.1

$11.4

Less: LandlordProvidedTenant Improvements

N/A

N/A

N/A

N/A

$3.7

Plus: TerminationFee

TotalCapital / 1-TimeOutOfPocket

$0.0

$0.0

$0.0

$9.5

$12.7

126mos term* <-132mos term* -> 165KSF

BROWNSTEINBASECASEandPOTENTIALOCCUPANCYALTERNATIVES -Denver $ inMillions ($'s inmillions)

[1]TotalNPVenables comparisonofequivalent length investments.Annuityequivalent converts totalNPV intoa seriesofannual cash flows therebyprovidingaway to compareprojects / scenarios ofunequal life.

FINANCIAL METRICS CHART

[2]Capitaland1-Time Items=Tenant ImprovementBuildoutPLUSMoveCostsPLUSTerminationFee (ifapplicable) LESSany LandlordProvidedTenant ImprovementAllowance

$60.0

$55.7

$52.8

$48.0

$45.0

TotalScenarioPre-TaxNPVCost

ScenarioCapitaland 1-TimeExpense- NetofTI(1)

$30.0

AnnuityEquivalent (2)

$17.4

$14.5

$15.0

$12.7

$9.5

[1]Capitaland 1-Time Items=Tenant ImprovementBuild-out PLUSMoveCostsPLUSTerminationFee (ifapplicable)LESS anyLandlordProvidedTenant ImprovementAllowance [2]TotalNPVenablescomparisonofequivalent length investments.Annuityequivalentconverts totalNPV into a seriesofannualcashflows therebyprovidingaway to compareprojects / scenarios ofunequal life.

$5.7

$5.4

$4.9

BROWNSTEIN BENEFIT Helping Brownstein Decide

$3.9

$3.3

$0.0

$0.0

$0.0

$0.0

BASELINE -Current

BASECASE -Current+Expand 18th

ALT 1:Expand andStay at410 17th ALT 2:Relocate toBlock 162 atExpiration (May'23)

ALT 3:Terminate410 17th,Relocate (WFC)

<-------------------------------~5YearPeriod (May'18-May'23)----------------------------------->

<-----------------------------------------------------------15YearPeriod (May'18-Apr'33)------------------------------------------------------>

V1.0_1-18-18

BrownsteinHyattFarberSchreck | Cushman&Wakefield 12

If aplan toextend for 5-10 years,whatwould be the anticipated scope ofworkneeded?

Future Square Footage

Estimated Costof Work (PSF/ Total)

Estimatedout-of- pocket cost (without free rent credit)

Lease Expiration

SquareFeet (Total)

Subleased SF

Ageof Asset

Renovation condition and anyplan to vacate?

Landlord Provided Concessions

City

DRAFT _AlternativeComparison_ 1/25/2018 Page1

BocaRaton,FL 11/14/201 8

1

2,163

2,000 5 years Plan to vacate later this year

No extension

$10/$20,000 $0

BROWNSTEIN BENEFIT Helping Brownstein Act & Execute

Completebuild-out 13 years ago -willmost likely vacate Completebuild-out 10 years ago -opportunity todemise& surrender space (someCAPEX req’d) Completebuild-out 12 years ago -willmost likely vacate (CAPEX req’d) Completebuild-out 10 years ago Completebuild-out 13 years ago - renovation for densificationpurposesor possible vacate (CAPEX req’d) Oldbuilding –not conducive to lawfirmpractice,possible vacate (CAPEX req’d) Inplace renovation for densification (CAPEX req’d)

Extensionnot likely –plan tomove for locationpurposes

LINK TO FULL SAMPLE

$40-$50TI and6-12months free rent (relocation)

2 NewHaven,CT 2/28/2018 9,481

3,947

6,000 12 years

$100/$600,000

$330,000

Possible extension -needs cosmeticupgrade (paint, carpet)

$15TI and0-3months free rent (renewal)

$40/$328,000

$205,000

3 WestHartford,CT 2/28/2018 11,239

8,200 10 years

Capital Projections OperatingExpense Comparison Building

Extensionnot likely –plan tomove for locationpurposes

$180/ $4,500,000

$60-65TI and 10-12months free rent (relocation)

$2.94Million

4 Stamford,CT

3/31/2019 33,735

25,000 13 years

Brownstein Denver - 21 st Floor

$70TI and 7months free rent (10 year renewal);$35TI and3 months free rent (5 year renewal) $20-30TI and 2-3months free rent (5 year renewal);$40-50TI with5-7 freemonths rent (10 year renewal)

Possible extension -needs cosmeticupgrade (paint, carpet)

5 Washington,DC 4/30/2019 5,820

5,620 10 years

$10/$56,200

ExcessFunds

Possible extension - renovation for densificationpurposes

$200/ $4,000,000

$4million

6 NewYork,NY 7/31/2019 58,709

22,279

20,000 13 years

Renew/extension likely -needs cosmeticupgrade (bathrooms, paint, carpet) Likely extension - renovation for densification Extensionnot likely -$200/ SF asumption for relocationon densification Possible extension (5 year renewal) -needs cosmeticupgrade (paint, carpet)

7 DelrayBeach,FL 2/29/2020 4,137

4,137

15 years

$10/$41,370 $10TIminimum

$0

$30-35TI and 1-2months free rent (renewal) $5-$15TIon a5 year;$15-$25TI on 10 year and0-4months free rent (renewal); $45-$60TI and 6-18months free rent (relocation)

8 Boston,MA

8/31/2020 41,609

9,467

32,133 12 years

$100/$3,213,300

$2.17million

Completebuild-out 11 years ago

$200/ $12,000,000

9 Hartford,CT

10/31/2023 80,399

600

60,000 11 years

$8.85million

Enhanced Reporting

2018 Total Expenses (psf) RE Taxes (psf)

OpEx net ofRE Taxes (psf)

Moved in - substantial renovation4 years ago

$25-35TI and6-7months free rent (renewal)

555 17 th Street 1401 Lawrence 1670 Broadway 1801 California CO StateBank Republic Plaza 1401 17 th Street 1331 17 th Street TABOR CENTER

10 Greenwich,CT 11/30/2023 7,900

7,900 4 years

$20/$158,000

ExcessFunds

$13.91 $17.86 $12.73 $14.20 $11.59 $16.79 $17.69 $16.71 $17.14

$5.71

$8.20 $7.74

65,000 (renewal); 60,000 (relocate)

Possible extensionormove - renovation fordensification purposes

Potentialout-of-pocket capital by2020 Potentialout-of-pocket capital between 2021-2023 Totalpotentialout-of-pocket capitalbetween 1997-2023 $20TI and6months free rent (renewal); $45TI and 12months free rent (relocation)

$10.12

Completebuild-out 7 years ago

$200/ $13,000,000

11 Parsippany,NJ 8/31/2025 100,010

17,742

7 years

$9.3million

$5.65 $6.66 $4.66 $6.58 $9.17 $8.50 $6.71

355,202 54,044 $7.08

$12,758,870

$9,645,000 $18,150,000

TotalRSF

$25,158,000

$7.54 $6.93

$37,916,870

$27,795,000

$10.21

$8.52 $8.21

$10.43

Detailed Comparison 1401,555 and Tabor OperatingExpense Categories 1401 Lawrence

BROWNSTEIN BENEFIT Making Sure Brownstein Gets Value

555 17 th Street Tabor Center

PSF 1.17 1.25 0.29 0.19 1.13 0.44 1.10 1.76 10.12 0.40

PSF

PSF

Utilities Cleaning Elevator

1.94 1.28 0.35 0.20 1.30 1.20 0.66 1.21 5.71 0.06

1.71 0.88

SeeR&M SeeR&M

HVAC

Repair & Maint Lot & Landscape

1.83

3.46*

Security

0.51 1.67 6.71 0.37

Admin & PM Fee

RE Taxes Insurance

TOTALS

$17.86

$13.91

$17.41

Alternative Vision

• AtTabor thisamount reflectsRETaxesandparking costs that cannotbebilledbackasOpEx.

Tenacious Audit & Reporting

LegalSectorAdvisoryGroup | ADVISING FOREXCELLENCE

C&W Saltmine Platform - Building Consensus

Cushman & Wakefield | Brownstein Hyatt Farber Schreck

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