Norwegian Cruise Line_OM_C&W Miami FINAL RSF

SUBURBAN OFFICE BUILDING DEVELOPMENT PRO-FORMA (MIAMI MARKET) This Development Pro-Forma has been established as a result of validating hard and soft costs with Turner Construction and is also in alignment with pricing parameters for proposed projects in suburban Miami Dade. This is indicative pricing related to what it would cost to build a new campus aligned to NCLH’s needs and is juxtaposed to the $423/SF required to deliver the campus utilizing the existing buildings yileding a discount of neraly 50% over new construction

SUPERIOR FLEXIBILITY ON RESIDUAL VALUE

Pro-forma Development Specifications

The Landings has a mixed-use zoning designation allowing for use as office, hotel or industrial. Given the limited vacant land in South Florida and continued demand for Industrial space, should NCLH not renew, or should ownership desire to repurpose the property, Industrial is likely the highest and best reuse given adjacency to MIA airport.

NCLH is committing to a long-term lease at the project. They have been in the project for nearly 30 years and may simply renew in the future providing uninterrupted future cash flow.

Campus Size

425,000 SF

Structured Parking Garage

5/1000 (2125 Spaces)

Land Size

11.5 acres (assume fully entitled)

Construction Modality

Class A Suburban Office (glass buildings)

Development Costs

Miami is just beginning to hit its inflection point of growth which is not expected to assuage in the near-term. The buildings could revert back to multi-tenant office buildings in a top tier location with increased rates at NCLH expiration.

Given proximity to the airport and regional access, the property could be evaluated as an ancillary support facility for MIA airport either on a long-term lease to the FAA/ Airport authority or to Miami Dade County.

Hard Costs (Office Building Shell):

$300/SF

$127.5M

Hard Costs (Interior Tenant Improvements)

$175/SF

$85M

Soft Costs (Permitting, A&E Fees, Advisory Costs, Legal, etc.)

$92.41/SF

$39.3M

Structured Garage: $25,000/Space

$125/SF

$53.125M

Land Costs ($5M/Acre)

$5M/Acre

$57.5M

($828/SF)

$351.8M

Total Projects Costs

17 | Norwegian Cruise Line Holdings

Cushman & Wakefield | 18