DEVELOPMENT CONCEPT FOR PIER 40

Presented by: Douglas Durst & Ben Korman

Cost Break Down

Area Office Parking Public Access Retail Active Recreational Space Ground Rent During Construction Ground Floor Circulation Field Total Hard and Soft Costs

Hard and Soft Costs

Costs $148,022,353 $74,842,908 $42,529,791 $36,861,676 $35,029,721 $27,167,363 $10,836,326 $8,768,624 $384,058,762 Size (SF) 414,973 351,770 300,324 98,951 158,328 N/A 10,000 186,029 1,520,375 $/Built SF $356.70 $212.76 $141.61 $372.52 $221.25 N/A $1,083.63 $47.14 $252.61

Capital Sources
Source Amount % of Total Debt $256,645,146 67% Equity Total $127,413,620 $384,058,766 33% 100%

Assumptions
Basic Assumptions Timing - Acquisition to Stabilization Free Rent-Office TI-Office Lease Term Leasing Assumptions Office Rent Ground Floor Retail 2nd Floor Retail Active Recreational Space Parking Market Rents $55.00 $120.00 $55.00 $25.00 $290 per month 4.5 Years 6 Months $45 15 Years

Income Summary-First Year of Stabilized Income and Expense

Category Office Retail Active Rec. Parking Vacancy Total Revenue Operating Expenses Rent to Trust Ongoing Pile Repairs Total Expenses Operating Income Debt Service Income/(Expense) $27,200,000 $12,900,000 $4,500,000 $6,500,000 ($5,800,000) $45,200,000 ($6,200,000) ($10,000,000) ($3,100,000) ($19,300,000) $26,000,000 ($15,900,000)

Cash Flow Yield On Development Costs Yield on Equity-First Stabilized Year

$10,100,000 6.8% 9.4%

Hudson River Park Act

Current Limitations Changes For This Concept

Lease Term for Pier 40 is capped at 30 years

A 49 year lease would be necessary for the finances to work

Commercial Office space is prohibited except when incidental to a permitted use

Broader scope of Commercial Office Space to allow for adaptive reuse ideas

Thank you