PowerPoint Presentation

620 Eighth Avenue - E35 Remaining Obligation

Seyfarth Shaw | New York

Analysis Detail (Lessee Perspective)

Printed: May 1, 2020 at 6:43 PM

Key Assumptions

1X Costs Hard Construction Soft Costs

Electric is estimated based on initial rent invoices received. Analysis is truncated to Feb. 29, 2024 for common term comparison purposes.

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Analysis Period Lease Type

Analysis Term 3 Yrs, 9 Mos

Discount Rate 7.00%/Yr.

Jun. 1, 2020 - Feb. 29, 2024

OpEx Base ReTax Base

Direct

$10.08/SF $10.48/SF $2.00/SF

4.535% Pro Rata 2017 4.508% Pro Rata 2017/18

FF&E IT & Security Moving

Total Rentable Area Lease Commencement Lease Expiration Analysis Truncation Rent Schedule Initial Free Rent: Lease Term

32,623 SF Jun. 1, 2020 3 Yrs, 9 Mos Feb. 29, 2024 Feb. 29, 2024

Submetered Electric Fixed Annual Increase

No Mark-Up

None None

TI Allowance

Commissions (1.5X)

$0.00/SF

$0K

Start

End

$/SF/Year

$/Year

Total

None

Tranche 1: Tranche 2: Tranche 3: Tranche 4: Tranche 5: Tranche 8:

$83.00/SF $90.00/SF

28 Mos. (1 - 28) 17 Mos. (29 - 45)

Jun. 1, 2020 Sep. 30, 2022 Oct. 1, 2022 Feb. 29, 2024

$2.7M $2.9M

Direct Expenses BID Tax

+8.4%

$0.35/SF

$11K

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Total

$0.35/SF

$11K

Expense Projections 3.50%/Yr.

2020

2021

2022

2023

2024

2025

2026

2027

Operating Expense Real Estate Tax Submetered Electric Direct Expenses

11.98 11.15

12.40 11.43

12.84 11.72

13.29 12.01

13.75 12.31

14.23 12.61

14.73 12.93

15.25 13.26

3.50%/Yr. FMV Increase 3.50%/Yr. 3.50%/Yr.

2.00 0.35

2.07 0.36

2.14 0.37

2.22 0.38

2.30 0.40

2.38 0.41

2.46 0.43

2.54 0.44

Cash Flow | $/SF

7 Mos 2020

12 Mos

12 Mos

12 Mos

2 Mos 2024

45 Mos

2021

2022

2023

2025

2026

2027

Total

NPV @ 7.0% Annuity

Base Rent Free Rent

48.42

83.00

84.75

90.00

15.00

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321.17

282.69

85.43

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Operating Expense Real Estate Tax

1.11 0.45 1.99 1.17 0.20

2.33 0.95 3.45 2.07 0.36

2.76 1.24 3.54 2.14 0.37

3.21 1.53 3.78 2.22 0.38

0.61 0.28 0.63 0.38 0.07

10.02 4.44 13.40 7.98 1.38 $335.63 $22.76 $358.39

8.72 3.84

2.64 1.16 3.56 2.12 0.37

$10.08/SF, 2017 Base $10.48/SF, 2017/18 Base

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5 Gross Rent SubTotal Commercial Rent Tax Submetered Electric 6 7

$49.98

$86.28

$88.75

$94.74

$15.89

$295.26

$89.23

11.79 7.02 1.22

No Mark-Up 3.90% of the Gross Rent

Direct Expenses

8

9 Additional Cost SubTotal

$3.36 $53.34 $91.44

$5.87 $92.15 $92.15

$6.06 $94.80 $94.80

$6.38

$1.08 $16.98

$20.03 $315.28

$6.05 $95.28

10 Total | $/SF

$101.12 $101.12

$101.85

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Annualized Cost (Omitting 1X Costs)

Cash Flow | $M

7 Mos 2020

12 Mos

12 Mos

12 Mos

2 Mos 2024

45 Mos

2021

2022

2023

2025

2026

2027

Total

NPV @ 7.0% Annuity

1.6M

2.7M

2.8M

2.9M

0.5M

10.5M

9.2M

2.8M

Base Rent Free Rent

11

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12

0.0M 0.0M

0.1M 0.0M

0.1M 0.0M

0.1M 0.0M

0.0M 0.0M

0.3M 0.1M 0.4M 0.3M 0.0M

0.3M 0.1M

0.1M 0.0M

Operating Expense Real Estate Tax

13

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15 Gross Rent SubTotal Commercial Rent Tax Submetered Electric 16 17

$1.6M 0.1M 0.0M 0.0M $0.1M $1.7M

$2.8M 0.1M 0.1M 0.0M $0.2M $3.0M

$2.9M 0.1M 0.1M 0.0M $0.2M $3.1M

$3.1M 0.1M 0.1M 0.0M $0.2M $3.3M

$0.5M 0.0M 0.0M 0.0M $0.0M $0.6M

$10.9M

$9.6M 0.4M 0.2M 0.0M $0.7M $10.3M

$2.9M 0.1M 0.1M 0.0M $0.2M $3.1M

Direct Expenses

18

19 Additional Cost SubTotal

$0.7M $11.7M

20 Total | $M

Annualized Cost (Omitting 1X Costs)

$3.0M

$3.0M

$3.1M

$3.3M

$3.3M

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Strategic Advisory Group © 2020 Cushman & Wakefield

All information furnished is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and same is submitted subject to errors, omissions, change in price, rental or other conditions, prior sale, lease, or financing or withdrawal without notice.

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