merritt board meeting november 2014

MERRITT BOARD MEETING

NOVEMBER 4, 2014

TABLE OF CONTENTS

Section 1 Virginia Market Overview

Section 2 Merritt Properties Projects

20700 Loudoun County Parkway

Geico

Miller’s Minuteman Press

NAFCO & Congressional Seafood Co.

Section 3 Merritt Properties Financial Reports

Section 4 Merritt Properties Occupancy Report

Section 5 Merritt Construction Services Third-Party Projects

Projects in Progress - Virginia

Projects in Progress - Maryland

Prospective Projects

Section 6 Merritt Construction Services Financial Reports

Section 7 groSolar Power Purchase Proposal Summary

Section 8 Merritt I-66 Package

Merritt vs Market

Synopsis:

The vacancy rate in the 28 North/Route 7 office market is currently 26.1%, down about 1% since the 1st Quarter of

the year. The high vacancy is comprised of approximately 2 million square feet of single and Class A, mid-rise office

space that is located within about a three-mile radius of our office parks. The significantly large blocks of space consist of:

• AOL’s 215,500-square-foot, plug-and-play leasing opportunity• The 101,875-square-foot building opportunity at Lakeside at Loudoun Tech Center• The 102,000-square-foot building opportunity at Lakeview.• The 75,000-square-foot sublet opportunity at 21000 Atlantic Boulevard

Approximately 40% of the vacant inventory in this submarket of Loudoun County is located within eight large blocks

of contiguous space (over 50,000 SF). Many of these large blocks of space are full building vacancies (Lakeview –

MRP, Ridgetop I – Bavar, Lakeside – Tischman Speyer (bank), and Prentice Drive - AOL). These largest blocks of

available office space are considered “Class A” and are located within buildings with two or more floors. During the

past six months, there was a slightly positive net absorption of approximately 39,308 square feet. The most

significant transactions during the first six months of FY 2014 were the GSA – Bureau of Safety & Environmental

Enforcement for 82,116 square feet at Woodland Road, and Orbcomm for 27,501 square feet in Loudoun Gateway.

The Class A vacancies will continue to put rental rate pressure on the single-story office product as companies may

see opportunities to upgrade their space and image at competitive rates. The trend towards shorter term leases has

helped Merritt to lease second generation office spaces as the landlords of shell space will require long-term leases

to justify the build-out and leasing concession packages. Therefore, this trend could lead to upward pressure on the

rental rates for second generation space availabilities.

There are currently four, speculative office buildings under construction. Buckeye Development is constructing a

55,681-square-foot medical office building adjacent to iNova Loudoun Hospital and will be marketed to medical

community. Comstock Partners is also under construction on a speculative 50,000-square-foot office building on

Central Station Drive along Shellhorn Drive in Ashburn, which is surrounded by apartments, retail, and is adjacent to

the future Loudoun Station Metro stop. One Loudoun is under construction on another +/- 36,000-square-foot

office/retail building and a +/- 33,000-square-foot office building is under construction along Broderick Drive

in Ashburn.

VIRGINIA MARKET OVERVIEW - Office

Square Feet Vacancy Results

Merritt Market Merritt (9/14)

Merritt (12/13)

Merritt (7/13)

Market Merritt Market Share

Office 771,266 7,583,723 9% 15% 14% 26% 17% 10%

410 298 2600 | www.MerrittProperties.com


The overall sentiment from owners and brokers in the market is that the activity is very slow. and there is a lack of

full-floor (+/- 25,000 SF) prospects. Sequestration measures by the US government will continue to negatively affect

the Northern Virginia market as federal contractors continue to downsize into more efficient floor plans and have

been using the term “right-sizing” when seeking such smaller space. This particular market relies heavily on the

government, and the slow-down in activity may be attributed to lack of confidence in government spending.

Government contractors will likely exercise early termination options and/or list underutilized space on the sublease

market. However, we have seen a recent growth trend for the smaller government contractors in the market.

Higher than usual vacancy rates in the neighboring submarkets of Reston & Herndon (14% of which comprises over

4 million square feet) have also contributed to heightened competition as prospects in the marketplace often view

those neighboring markets as more desirable. It is important to note that this available inventory of office in Reston

& Herndon is approximately 1/2 of the total rentable building area (RBA) in all of Loudoun County and Reston/

Herndon is just one submarket of Fairfax County, where the overall vacancy is 17% or approximately 18 million

square feet. Landlords continue to offer generous concession packages, mostly in the form of rental abatement and

tenant improvement packages, to lure tenants.

Despite the many unfavorable market conditions that have continued to affect the office market in Loudoun for over

12 years, Merritt has done considerably well and has sustained a higher occupancy than the overall marketplace.

We have completed approximately 43,056 square feet of new office transactions (includes tenant expansions) during

the first half of 2014. The majority of the renewals/extensions were done at market rates with little to no tenant

improvements. At Loudoun Tech Center, we leased 4,951 square feet to Dixon Godhardt, 4,865 square feet to

Sterling Crossfit, 2,413 square feet to Fairway Independent Mortgage, 2,626 square feet to Life Church International

and 7,744 square feet to INMED.

We are currently working on two significant renewals with Sky Courier (+/- 26,076 square feet) and the PCAOB (+/-

16,829). We have a signed Letter of Intent with both clients and are currently working towards finalizing lease

amendments.

Merritt’s strong reputation in the community, our cooperation with Loudoun County and our relationships with our

tenants should continue to fuel our success.

Important points to highlight:

• Of the approximately 280,000 SF of overall leasing/renewal activity from January through June 2014,

Merritt contributed to almost 18% (+/-53,706 square feet) of this overall activity.

• University Center is 100% leased, Loudoun Tech Center is 90% leased and Ashbrook is 86% leased.

Merritt has continued to outperform the office market.

• With the exception of University Center, Merritt’s office developments are located within walking-distance

to an abundance of retail amenities as well as major roadways. However, University Center’s retail

environment has been growing.

• Merritt’s largest vacancy is within Loudoun Tech Center, surrounded by competitive vacant office buildings

(Manekin Plaza, Bavar’s Ridgetop II and Lakeside at Loudoun Tech).

VIRGINIA MARKET OVERVIEW - Office (CONTINUED...)


• Approximately eight acres within Ashbrook are controlled by Merritt for future office/flex development.

We are under contract with Geico to perform a build-to-suit sale (32,675 SF on 3 acres).

• Loudoun County continues to implement business-friendly initiatives by forming committees comprised of

both county staff members and representatives of the business community. A revised and more

comprehensive signage ordinance was recently adopted, and a committee is currently working on zoning

amendments that will help the Loudoun County be more competitive with neighboring jurisdictions.

• Loudoun County ranks #1 nationally in household median income. Executive housing in Loudoun County,

as well as the top-ranked schools, continue to be a draw for families and businesses moving to the area.

• A recent, Washington Business Journal article named Loudoun County “The Fastest-Growing County in

Virginia”, with over 35,000 people moving to the area since last surveyed in 2010. It is now the third

largest county in Virginia, next to Fairfax and Prince William.

• A recent Loudoun Time Mirror article coined Loudoun as “Virginia’s only bright spot,” where per capita

personal income rose by $8,000 from 2008 to 2012. The average annual household income is $120,000.

• Loudoun’s population has doubled over the past 15 years. More younger people (Millennials) and families

without children are moving out to Loudoun. This is changing the demographic profile dramatically. This

is going to create distinct job centers as Loudoun transforms from a bedroom community.

• Dulles Rail, which is slated to be delivered to Loudoun County by 2018, should help to foster office and

mixed-use development.

• Dulles Airport should continue to help attract international businesses. It is the only major east coast

airport with expansion capabilities.

• Traffic congestion seems to be a driving factor among many tenants locating in Loudoun as it is often

closer to the business owners’ homes.


Merritt Office Renewals

Company Park SFNew Rate (Old Rate)

Term TI

GeoBridge Ashbrook 3,506 $18.50 NNN ($19.70 NNN) 5 Years $0.00 psf




Term TI

Life Church International Loudoun Tech 2,626 $13.75 NNN 5 Years +/- $6 psf

Fairway Independent Mortgage Loudoun Tech 2,413 $13.00 NNN 2 Years $0.00 psf

Dixon Godhardt Loudoun Tech 4,951 $13.75 NNN 5 Years $0.00 psf

INMED Loudoun Tech 7,744 $14.75 NNN 15 Years +/- $12.00 psf

MCW Solutions Ashbrook 8,220 $15.75 NNN 7 Years +/- $20.00 psf

Ian, Evan & Alexander Corp Ashbrook 5,323 $16.25 NNN 5 Years +/- $5.50 psf

Agensys Ashbrook 3,408 $15.97 NNN 5 Years +/- $15.00 psf

New Leases/Expansions/Relocations

Recent Market Comps


Term TI

GSA – Bureau of Safety & Environmental Enforcement Woodland Road 82,116 $28.40 FS 10 Years +/- $47.00 psf

Orbcomm Loudoun Gateway 27,501 $27.00 FS 10 Years, 7 Months $73.00 psf

MI Homes Loudoun Tech 11,000 $23.00 FS 6 Years, 5 Months +/- $5.00 psf

TerraGo Tech Woodland Road 4,293 $24.50 FS 7 Years, 9 Months +/- $55.00 psf

Summit IG Broad Run 2,344 $19.00 FS 2 Years, 3 Months $0.00 psf (sublease)

Movement Storage Dulles Town Center 4,028 $29.00 FS 2 Years $0.00 psf (sublease)

9Lenses Woodland Road 1,412 $25.00 FS 5 Years, 6 Months +/- $10.00 psf

Infused Solutions TransDulles 4,052 $21.50 FS 6 Years, 6 Months

+/- $15.00 psf (renewal)

Sonus Networks Loudoun Tech 14,584 $13.00 NNN 6 Years $0.00 psf (renewal/contraction)

Merritt vs Market

Synopsis:

The Route 28 North industrial market remains a bright spot in the overall commercial real estate market. The

development and demand for data centers continues to be very strong in the Ashburn, VA area due to the

abundance of low-cost power, fiber network providers and reclaimed water infrastructure, as well as low occurrence

of natural disasters and severe weather. Up to 70% of the world’s internet traffic travels through the Ashburn area of

Loudoun County each day. Equinix, Sabey, DuPont Fabros Technology, Carpathia Hosting, Amazon, Digital Realty

Trust and DBT-Data have been active in constructing and purchasing existing flex/industrial buildings in order to

convert them to data center space. Cyprus One has just purchased Bavar’s Cornerstone land parcel within Loudoun

Tech Center and is expected to complete an approximately 400,000-square-foot building by the end of 2014. The

data center growth trend has had a positive downward effect on the overall vacancy, has diversified the industrial

market and has limited the supply of newer and functional industrial product. Loudoun County is home to over

forty data center buildings comprising over 4.3 million square feet of space.

Dulles International Airport continues to be a draw for logistics, warehousing and fulfillment providers.

Metropolitan Washington Airports Authority (MWAA) is currently planning a 400-acre runway expansion at Dulles to

expand the airport’s capacity for larger cargo business. The project is being referred to as “cargo city” and will

enable air freight carriers to transport larger cargo than what currently fits in the bellies of passenger planes or

FedEx and UPS planes. Another industrial initiative being endorsed by the board of supervisors is the widening of

Route 606, which they plan to begin later this year. Route 606 is the main trucking route that connects Dulles with

I-66 West towards I-81. Widening this roadway would facilitate the flow of cargo to and from Dulles and should

increase the demand for warehouse and distribution space.

The overall leasing activity in the industrial/warehouse product during the first half of 2014 has resulted in positive

net absorption of approximately 89,284 square feet. The recently vacated 78,000-square-foot space, previously

occupied by Westcon, along with the former Easterns Automotive space consisting of 138,920 square feet in Broad

Run, are the largest blocks of contiguous space available. Easterns Automotive relocated into the former Ethan

Allen warehouse at Commerce Drive, west of the airport, and now occupies the entire 77,488 square feet of space.

VIRGINIA MARKET OVERVIEW - Industrial

Square Feet Vacancy Results

Merritt Market Merritt (9/14)

Merritt (12/13)

Merritt (7/13)

Market Merritt Market Share

Light Industrial 128,787 4,452,724 10%* 13%* 17% 10.5% .5%* 3%

Warehouse 364,080 8,116,737 2% 6% 6% 7.5% 5.5% 4.5%


*includes the flex/office space at Ashbrook.

The market vacancy is approximately 8.3%, down almost 1.2% since January 2014. Home service providers, moving

and storage companies, logistical companies (including airline services) and data center providers are currently the

most active in leasing warehouse spaces in this particular market. Merritt completed over 43,000 square feet of

warehouse leases during the first half of 2014 by signing Paul Davis Restoration (28,060 SF) and Northern Virginia

Badminton Club (15,033 SF). We have also recently completed a 14,205-square-foot lease with MITRE Corporation

at Beaumeade and now only have 7,248 square feet of warehouse space available.

Due to the relatively low vacancy in the warehouse/industrial market, Northwestern Mutual plans to break ground

during the fourth quarter of this year at Northwoods on the first of three 140 to 150 deep, 24’ clear warehouse

buildings totaling 282,000 square feet. Also, a developer who owns +/- 20 acres of land along Maries Road in

Sterling is planning to break ground on a +/- 100,000-square-foot, 32’ clear, 150’ deep warehouse building later this

year.

The light-industrial/flex product has experienced a decrease in vacancy of approximately 2.5% since January 2014,

or a positive net absorption of approximately 104,799 square feet. St. John Properties recently delivered two

54,000-square-foot flex buildings and has completed four transactions, totaling +/- 40,000 square feet during the

past nine months.

Merritt had a lot of success during the initial leasing of its industrial development at Beaumeade Corporate Park and

does not have any light industrial inventory available to date except for the 12,430 SF office/flex vacancy within

Ashbrook. Merritt recently completed a flex transaction with ESI for 7,557 square feet within Ashbrook. Merritt’s

single-story office/flex buildings in Ashbrook offer a better flex alternative to the properties closer to Dulles

International Airport, where amenities are sparse.

The major competitors in this market consist of Prologis, Seefried, Duke and PS Business Parks for warehouse

product, and First Potomac Realty, Northwestern Mutual Life Insurance Co (Minalter, Inc.) and St. John Properties

for flex product.

Important Points to Highlight:

• There are only four blocks of warehouse space greater than 50,000 square feet and one of them is a metal

building. The other three larger increments of space are located along Route 606 where the vacancy rate

in this particular industrial corridor is currently 10%, or approximately 451,182 square feet. The former

78,000-square-foot Westcon space (24’ clear) located at Commerce Center Drive and the former Easterns

Automotive space, consisting of 138,920 square feet, are the largest blocks of available space.

• Karma Distribution leased 24,050 square feet along Davis Drive in TransDulles, Metro Air Services leased

20,405 square feet at Gateway Distribution Center, CSVA Services leased 34,446 square feet at Gateway

VIRGINIA MARKET OVERVIEW - Industrial (CONTINUED...)


Distribution Center and Air Cartage Express leased 19,358 square feet at Gateway Distribution Center.

All of these leases are for freight forwarders (third-party logistics) who require close proximity to Dulles

International Airport.

• ProLogis is currently under construction on a 64,522-square-foot building that is leased by Amazon.com,

as well as three other sites within their Prologis Gateway project near Sterling Boulevard and Relocation

Drive. DuPont Fabros Technology is under construction on over 250,000 square feet of data center space

at Beaumeade. St. John Properties recently delivered two flex buildings comprising of 108,000 square

feet within Ashburn Technology Park.

• COPT is under construction on three data center buildings for Amazon.com on 34 acres on

Smith Switch Road.

• Merritt’s Beaumeade Corporate Park is currently 98% leased.

• The flex market is 11.06% vacant, comprising 503,434 square feet. Approximately 60% of the available

spaces are within buildings built before 1990.

• During the past six months, the flex market experienced 123,648 square feet of total leasing activity,

including renewals. The largest transaction during the first half of 2014 was the Thomas Sommerville lease

at Shaw Road for 27,888 square feet.

• Merritt owns seven acres of industrially zoned land (PD-IP) on Loudoun County Parkway in Ashburn and is

currently constructing a 72,900-square-foot flex building. In addition to being an ideal location for flex

tenants, this future building will be a good location for data center users due to multiple fiber carriers and

the 12 megawatts of power that run along Loudoun County Parkway. We have three existing tenants,

totaling +/- 33,000 square feet, who have expressed a desire to relocate to this building once completed.

This future building has great visibility along Loudoun County Parkway and Route 7. It is also located

across from One Loudoun, a new mixed-use commercial development. By 2015, it is estimated the traffic

count on Loudoun County Parkway will be approximately 40,000 cars daily.

• Merritt has signed a letter of intent to purchase approximately 50 acres of industrial land in Prince William

County, VA and is currently finalizing a formal purchase and sale agreement. The project consists of five

proposed warehouse and flex buildings totaling +/- 572,250 square feet. Due to the heavy industrial

zoning and the relatively low vacancy rate of approximately 8%, we believe that the Prince William County

submarket is a great opportunity to grow our industrial portfolio in the area.





Merritt Flex Renewals


Term TI

ScanCoin Ashbrook 9,702 $ 15.50 NNN ($14.60 NNN) 1 Year $0.00


Term TI

Paul Davis Restoration Beaumeade 28,060 $9.50 NNN 10 Years +/- $19.00 psf

Northern Virginia Badminton Club Beaumeade 15,033 $7.50 NNN 5 Years +/- $7.50 psf

ESI – Total Fuel Management Ashbrook 7,557 $14.00 NNN 10 Years +/- $55.00 psf

MCW Solutions Ashbrook 3,242 $9.75 NNN 7 Years +/- $16.50 psf

New Leases/Expansions/Relocations

Recent Market Comps


Term TI

Thomas Sommerville TransDulles (FLEX) 27,888 $8.50 NNN 5 Years Shell/demised.

NOVA Shredding Northpointe (FLEX) 3,800 $8.50 NNN 5 Years,2 Months

$15.00 psf. 2 months free.

Varia Systems TransDulles (FLEX) 5,146 $12.75 NNN 5 Years,3 Months

$35 psf, 3 months free.

Tree House Learning Ashburn Tech 3,000 $17.72 NNN 5 Years,5 months

$11.75 psf. 5 months free

SABMD, LLC (Easterns Auto) Commerce Center 77,488 $6.65 NNN 7 Years,4 Months $0.00, 4 months free

Karma Distribution TransDulles 24,050 $7.85 NNN 3 Years,3 Months $0.00, 3 months free.

The Noble Collection Executive Drive 25,737 $7.60 NNN 4 Years,2 Months $0.00, RENEWAL

Air Cartage Express Gateway 19,358 $7.75 NNN 10 Years, 5 Months $0.00, 5 months free

MERRITT PROPERTIES PROJECTS

20700 Loudoun County Parkway20700 Loudoun County Pkwy. | Ashburn, VA

Square Footage: 72,900 SF

Start Date: September 2014

Completion Date: February 2015

Cost/Fee Summary: LP1 is a going to be a stabilized building under the Merritt Properties banner. It is

going to cost $9,491,763 to build and should generate approximately $785,000 in

NOI when stabilized. At an 8% cap one could argue this is an immediate $190,124

value increase. Assuming the building sold in ten years, it would have an after debt

IRR of 13.28% and a total NPV of $1,674,487.

Located at the intersection of Loudoun County Parkway and Marblehead Drive, across from One Loudoun,

the 72,900-square-foot speculative building will feature 20-foot clear ceiling heights with typical bay sizes

of 2,700 and 3,300 square feet. Building uses will vary from distribution to recreational, to medical care and

educational.

This building will be the fifth Merritt development in Virginia and is specifically modeled after Beaumeade Corporate Park.



Pre-construction Capitalization

Construction Commencement: May-14

Projected Completion Date: February-15

Projected Stabilization Date: October-15

Product Type: Other

Square Footage: 72,900

Approved Budget Revised Budget

Additional Costs /

(Savings) Projected Investment

Actual Expenditures Balance to Fund

Investment SummaryLand 1,325,322$ 1,325,322$ -$ 1,325,322$ 1,006,168$ N/ADesign and Development 429,650 429,650 - 429,650 98,543 331,107Sitework 1,226,116 1,226,116 - 1,226,116 553,105 673,011Building 3,194,273 3,194,273 - 3,194,273 22,682 3,171,591TI 2,021,298 2,021,298 - 2,021,298 - 2,021,298Offsite Infrastructure 325,290 325,290 - 325,290 - 325,290Contingency 233,639 233,639 - 233,639 - 233,639Lease up Carry 265,000 265,000 - 265,000 265,000Construction Period Int and Lease 111,500 111,500 - 111,500 - 111,500Financing & Other Soft Costs 54,675 54,675 - 54,675 24,279 30,3963rd Party Leasing Commissions 305,000 305,000 - 305,000 - 305,000

Total Investment 9,491,763$ 9,491,763$ -$ 9,491,763$ 1,704,777$ 7,467,832$

Free Rent -Construction Period Interest and Lease-up Carry - prior to Construction Commencement - -

9,491,763$ 1,704,777$

Pre-construction Costs prior to Board approval -

Revised Pro Forma

Original Pro Forma

Total Sq Ft Land 1,325,322$ 1,325,322$ Shell (GLA) 72,900 4,850,039 4,850,039

Current Lease % 0.00%

Tenant Improvements Office % Cost Per Sq Ft Total Sq Ft

Spec Tenant 40% 27.73 72,900 2,021,298 2,021,298

Leasing Commissions Rent / Sq Ft Term Total Sq Ft Spec Tenant - 10 72,900 -

305,000 305,000Carry, Lease-up and Finance 166,175 166,175Projected Total Investment 8,667,834$ 8,667,834$

Rental Income Rent /mo Term Total Sq Ft Spec Tenant 69,862.50 10 72,900 838,350

838,350 838,350Less: Vacancy (5%) (53,764) (53,764)Add: Expense Reimbursements 236,925 236,925Less: Operating Cost (236,925) (236,925)

784,586$ 784,585$

Projected Return on Cost - Construction Commencement Forward 9.05% 9.05%Projected Value @ 8.0% CAP 9,807,328 9,807,313Projected Increase in Value Over Costs 315,565 315,550

Merritt Properties, LLC and SubsidiariesLoudon County Parkway (LP1)Pro Forma Variance Analysis

For The Period Ending September 30, 2014

Merritt Properties, LLC and SubsidiariesLoudoun County Parkway (LP1)Pro Forma Variance AnaylsisFor the Period Ending September 30, 2014

PRO FORMA: 20700 Loudoun County Parkway


A Development of Merritt Properties 410.298.2600 / MerrittProperties.com

270’ 480’

110’

90’

Loudoun County Parkway Mar

ble

head

Dri

ve

50’

30’ Typical

40’

3

5’

35

’

SITE PLAN20700 Loudoun County Parkway 72,900 SF


GeicoAshburn, VA

Square Footage: 32,675 SF on 3.06 acres of land

Start Date: Spring 2015

Completion Date: October 2015

Cost/Fee Summary: Merritt is selling the building and land at Ashbrook 8 at a purchase price of

$7,771,748.75, on which we expect to make at least $1,951,351 - a margin of 25%.

This is a build-to-suit sale transaction whereby Merritt will sell the land, building and interior improvements

at closing. Merritt is to build a 32,675-square-foot single-story flex building with brick façade. This will be a

training center and facility for Geico’s claims adjusters.


Miller’s Minuteman Press11195 Dolfield Boulevard | Owings Mills, MD


Start Date: April 2014

Completion Date: November 2014

Project Value: $5,456,817

Merritt Properties entered into an agreement with Miller’s Minuteman Press for a 36,450-square-foot office

and production facility in Owings Mills. The building will serve as the company’s new corporate headquarters,

allowing them to further centralize their production facility and expand their operations.

Located at 11195 Dolfield Boulevard, the single-story, build-to-suit project will be constructed on

approximately 7.5 acres within Merritt’s Owings Mills business park. Miller’s Minutemant Press will lease the

building from Merritt, but have an option to purchase.

Miller’s Minuteman Press, a graphic design, print and mailing company, is one of the largest Minuteman Press

franchises worldwide. The new building will allow Miller’s Minuteman Press to add new equipment, additional

employees and service offerings. With this expansion, they expect to increase their workforce by 30% initially

and double it by the end of their second year in the new facility.

Miller’s Minuteman Press


NAFCO & Congressional Seafood Company7775 S. Chesapeake Bay Court | Jessup, MD




Cost/Fee Summary: This is a 50% joint venture between Merritt and the tenant NAFCO. The building has

a budget of $9,740,200 and will generate $907,495.9 in NOI. That is value creation of

$1,603,499. There’s also an MCS site work component that is budgeted up to

$3,635,538 with a fee of 7% that we would for the Maryland Food Center Authority

(MFCA), the owner from whom we purchased the land.

Merritt Properties entered into a joint venture with NAFCO & Congressional Seafood Company on an

88,000-square-foot seafood distribution facility in Jessup, Maryland. The facility will serve as the company’s

new headquarters, allowing them to centralize their operation with the opportunity for an 18,000-square-foot

future expansion.

Located at 7775 S. Chesapeake Bay Court adjacent to the Maryland Seafood Market, the single-story building

is being constructed on 5.5 acres of land purchased from the Maryland Food Center Authority (MFCA). The lot

and building will be jointly owned by Merritt Properties and Stanley Pearlman, president of NAFCO. NAFCO

& Congressional will be the initial tenant while Merritt Properties will serve as managing partner.

Merritt Construction Services will develop the $8.9 million project as a 28-foot clear, tilt-up industrial/flex building with 8,000 square-feet of office.

NAFCO & Congressional Seafood Co.


MERRITT PROPERTIES, LLC AND SUBSIDIARIESSchedules of Calculation of Consolidated Funds from Operations (FFO) and Reconciliation to Net Income

September 30, September 30,2014 2013

Historical As Diluted * Historical As Diluted *

REVENUESRental income 95,816,720$ 95,816,720$ 93,802,299$ 93,802,299$ FAS 13 and FAS 141 income 420,428 420,428 1,127,173 1,127,173 Tenant recoveries and other tenant income 21,750,997 21,750,997 17,182,562 17,182,562 Income from third party activities, net of direct costs 3,116,351 3,116,351 2,849,859 2,849,859 Other income for services to Merritt Properties 10,296,668 10,296,668 10,174,837 10,174,837

Revenues 131,401,164 131,401,164 125,136,730 125,136,730

EXPENSESSnow removal 3,415,941 3,415,941 645,391 645,391 Real estate taxes 10,505,269 10,505,269 10,095,661 10,095,661 Repairs and maintenance 11,457,293 11,457,293 10,263,371 10,263,371 Utilities 6,060,045 6,060,045 5,950,197 5,950,197 Other expenses - direct property 7,632,549 7,632,549 7,376,527 7,376,527

Total operating expenses 39,071,097 39,071,097 34,331,147 34,331,147 Net Operating Income 92,330,067 92,330,067 90,805,583 90,805,583

General and administrative expenses (16,354,608) (16,354,608) (15,032,270) (15,032,270) Undeveloped land operating expenses (319,541) (319,541) (291,277) (291,277) Abandoned project costs (269,796) (269,796) (237,684) (237,684) Provision for bad debt (942,659) (942,659) (502,483) (502,483) Consolidation adjustments - - 360,980 360,980

Earnings from consolidated operations 74,443,463 74,443,463 75,102,849 75,102,849

First mortgage interest expense - operating properties (28,249,217) (28,249,217) (29,455,676) (29,455,676) Other interest expense - operating and properties held for dev (11,524,076) (6,412,061) (10,809,617) (6,139,775) Amortization - deferred financing costs - estimate (1,125,000) (1,125,000) (1,125,000) (1,125,000) Depreciation - corporate furniture and equipment - estimate (609,946) (609,946) (705,416) (705,416) Gain / (loss) on disposition of corporate furniture and equipment (71,997) (71,997) 3,743 3,743

Funds from operations - FFO 32,863,227 37,975,242 33,010,883 37,680,725

Gain / (loss) on disposition of land and building 2,749,514 2,749,514 17,758 17,758 Loss on extinguishment of convertible debt - other interest expense (3,371,900) (3,371,900) - - Depreciation and amortization of tenant leasing costs (25,569,768) (25,569,768) (26,700,980) (26,700,980) Equity in income of unconsolidated affiliates 12,823,355 12,823,355 2,133,410 2,133,410

Net income / (loss) 19,494,428 24,606,443 8,461,071 13,130,912

Net (income) / loss attributable to the noncontrolling interests (131,707) (131,707) (110,370) (110,370)

Net income / (loss) attributable to Merritt Properties and Subsidiaries 19,362,720$ 24,474,735$ 8,350,701$ 13,020,543$

* As Diluted assumes conversion of convertible debt to equity

MERRITT PROPERTIES, LLC AND SUBSIDIARIES

Schedules of Calculation of Consolidated Funds From Operations (FFO)and Reconciliation to Net Income

For the period ended


MERRITT PROPERTIES, LLC AND SUBSIDIARIESSchedules of Calculation of Consolidated Funds Available for Distribution (FAD)

September 30, September 30,2014 2013

Historical As Diluted * Historical As Diluted *

Funds from operations - FFO (1995 Definition) 32,863,227$ 37,975,242$ 33,010,883$ 37,680,725$ Straight-line rental and FAS 141 adjustments - operating properties (420,428) (420,428) (1,127,173) (1,127,173) Settlement costs for land sales paid with proceeds 56,635 56,635 - - Abandoned project costs (47,102) (47,102) - - Loan Fee Amortization 1,125,000 1,125,000 1,125,000 1,125,000 Noncontrolling interests' in consolidated FAD (438,414) (438,414) (388,247) (388,247) Equity interests' in unconsolidated affiliates' FAD 1,601,706 1,601,706 1,270,880 1,270,880 Non-incremental capital expenditures - operating properties (10,462,805) (10,462,805) (12,067,705) (12,067,705) Scheduled principal payments (13,658,653) (13,658,653) (9,967,696) (9,967,696)

Funds available for distribution 10,619,166$ 15,731,181$ 11,855,942$ 16,525,784$

* As Diluted assumes conversion of convertible debt to equity

MERRITT PROPERTIES, LLC AND SUBSIDIARIES

Schedules of Calculation of Consolidated Funds Available for Distribution (FAD)

For the period ended

MERRITT PROPERTIES OCCUPANCY REPORT


10/28/2014 12:31 PM

Page 1 of 1

Lease Type # of Units Total Rentable Total Rent/ Occupied Occupied 6 Month

Rent Area Rentable Area % RollOver

Area

Bulk

Vacant 11.00 0.00 159,928.00 0.00 0.00 0.00

Bulk 88.00 1,603,496.25 3,599,173.00 0.45 3,599,173.00 217,895.00

Utility Room 6.00 0.00 830.00 0.00 830.00 0.00

Total 105.00 1,603,496.25 3,759,931.00 0.43 3,600,003.00 95.75 217,895.00

Flex

Vacant 22.00 0.00 186,198.00 0.00 0.00 0.00

Flex 70.00 869,362.87 745,561.00 1.17 745,561.00 68,522.00

Utility Room 9.00 0.00 1,300.00 0.00 1,300.00 0.00

Total 101.00 869,362.87 933,059.00 0.93 746,861.00 80.04 68,522.00

Light Industrial

Vacant 85.00 0.00 528,655.00 0.00 0.00 0.00

Industrial 643.00 3,911,328.42 5,984,873.00 0.65 5,984,873.00 815,074.00

Utility Room 36.00 0.00 5,763.00 0.00 5,655.00 0.00

Total 764.00 3,911,328.42 6,519,291.00 0.60 5,990,528.00 91.89 815,074.00

Office

Vacant 108.00 0.00 483,182.00 0.00 0.00 0.00

Conference Room 3.00 0.00 2,138.00 0.00 2,138.00 0.00

Fitness Center 4.00 0.00 8,090.00 0.00 8,090.00 0.00

Office 548.00 5,923,004.36 3,256,183.00 1.82 3,254,725.00 141,985.00

Retail 1.00 300.00 1,255.00 0.24 1,255.00 0.00

Utility Room 5.00 0.00 1,476.00 0.00 1,476.00 0.00

Total 669.00 5,923,304.36 3,752,324.00 1.58 3,267,684.00 87.08 141,985.00

Other

Industrial 1.00 17,255.00 0.00 0.00 0.00 0.00

Office 2.00 23,694.50 17,150.00 1.38 17,150.00 0.00

Retail 1.00 15,416.67 0.00 0.00 0.00 0.00

Total 4.00 56,366.17 17,150.00 3.29 17,150.00 100.00 0.00

Retail

Vacant 4.00 0.00 12,805.00 0.00 0.00 0.00

Retail 37.00 253,783.08 149,400.00 1.70 149,400.00 8,170.00

Utility Room 1.00 0.00 73.00 0.00 73.00 0.00

Total 42.00 253,783.08 162,278.00 1.56 149,473.00 92.11 8,170.00

Under Construction

Vacant* 1.00 0.00 30,000.00 0.00 0.00 0.00 0.00

Total 1.00 0.00 30,000.00 0.00 0.00 0.00 0.00

Grand Total 1,686.00 12,617,641.15 15,174,033.00 0.83 13,771,699.00 90.76 1,251,646.00

* entire 30,000 is leased but occupancy will not occur until project is completed

Occupancy SummaryProperty: .lcoper From Date: 10/01/2014 By Attribute

MCS THIRD-PARTY PROJECTS

BioGrund23465 Rock Haven Way, Suite 125 & 225 | Dulles, VA

BioGrund is a company based out of Germany that

has established a presence in Loudoun County in

the pharmaceutical industry. They were introduced

to Merritt by the Loudoun County Economic

Development team, and we worked with them for six

months prior to being awarded this project. This was

a TI project consisting of 5,300 SF of office and lab

space.


Start Date: April 2014

Completion Date: September 2014

Cost: $482,970

Fee: $35,775

Telos Corporation19886 Ashburn Road | Ashburn, VA

Renovation of 90,000 square feet of office and

100,000 square feet of warehouse, including a total

reconfiguration of the space with upgrades to offices,

bathrooms and conference rooms and new finishes

throughout. Warehouse renovations to include a

lighting retrofit and installation of new HVAC system.

Also restoring building façade, replacing the roof,

replacing the chillers and chilled water plant and

replacing the boiler.


Start Date: May 2014

Completion Date: August 2014

Cost: $493,238

Fee: $14,366

BioGrund ribbon cutting


Subway20 M Street SE | Washington, DC

Interior build-out within 2,000 SF of existing shell space.

Existing building is currently LEED certified - new

Subway store will seek the same, the first of its kind.


Start Date: June 2014


Cost: $399,340

Fee: $36,303

Kohler EquipmentTrade West Drive | Sterling, VA

Development and design consulting services for the

acquisition, design and construction of a 17,000 SF

facility. Facility to include 3,000 SF mezzanine office,

showroom, storage area and shop space.


Start Date: Approximately Fall 2015

Completion Date: In progress

Cost: Currently charging hourly fee for consulting

services


Cornerstone ChapelSycolin Road | Leesburg, VA


Start Date: October 2014


Cost: $28,167,295

Fee: $687,007

The first phase of the building, expected to be complete

by the summer of 2016, will feature a sanctuary with

space to seat 2,000 people, as well as children’s

classrooms and auditoriums for middle and high school

students. Future phases for the building include plans

for a student center, an administration building and a

wedding chapel.

Once completed, it will be the largest church building in Loudoun County.

Potomac Metals42702 Dulles Trade Court | Sterling, VA


Start Date: November 2014

Completion Date: May 2015

Cost: $5,671,471

Fee: $261,022

Under contract to build a 24-foot clear, 64,475 SF

concrete tilt-up headquarters facility for Potomac

Metals. The building will include a 2,975 SF mezzanine

to serve their office needs and a customized warehouse

component that will allow their operations to be

streamlined and provide the necessary room for their

continual growth. MCS has provided consulting services

for Potomac Metals including the land search, acquisition,

entitlements, design.

Cornerstone Chapel


GBMC6701 N. Charles Street | Baltimore, MD

Pharmacy: Relocation and expansion of hospital

pharmacy, including narcotics room, IV room and

chemo room.



Completion Date: October 2014

Cost: $892,300

Fee: $43,374

Neurology Suite: Expansion and relocation including

exam rooms, physician offices and EEG room.



Completion Date: June 2013

Cost: $409,000

Bluebell Parking Expansion: Reconfiguration and

expansion of existing parking lot including a new

retaining wall.

Start Date: June 2013

Completion Date: July 2013

Cost: $123,000

5th Floor Respiratory Therapy: Relocation of

Respiratory Therapy area including offices, workroom,

oxygen storage, equipment room, break room and

locker room.



Completion Date: January 2013

Cost: $184,000

1st Floor Office Renovation: Expansion of their 3rd

party medical partnerships, patient access training

room, nap room.



Completion Date: January 2013

Cost: $175,000


Agora, Inc.1001 Cathedral Street | Baltimore, MD



Completion Date: May 2014

Cost: $2,584,757.95

Profit: $115,628.95

A renovation within a historical building in downtown Baltimore, the

16,500-square-foot office for Agora now features numerous open work areas

around the perimeter of the floors and several private offices within the middle

of the space to maximize daylighting. The first floor lobby was completely

upgraded and features one of the two new ornamental stairs, with the second

staircase connecting floors two through four.

The renovation also included four large conference rooms, one of which

features a dramatic design of glass interior walls and a wall of the historic

windows overlooking the city. The upgraded HVAC system that was installed

utilizes variable refrigerant technology in order to maximize energy efficiency

within the space. Furthermore, the lighting system uses a mix of T-5 fluorescent and LED fixtures. Finally, an entirely

new roof monitor was installed on the fourth floor to allow for more natural light within the space. This required a 60’

x 10’ opening to be cut into the roof.


Aberdeen Proving Grounds2 Halls Cross Roads | Aberdeen, MD

Building 3400: Renovation of existing chemical lab

facility including demolition of walls and ceilings,

patching of walls and ceilings, new paint, patching of

epoxy floor, minor electrical updates and connected

owner supplied hoods.

Square Footage: ~ 2,000 SF

Start Date: August 2014

Completion Date: December 2014

Cost: $102,200

Fee: $8,006

Building 5390: Renovation of existing chemical lab

facility including demolition of walls and ceilings,

patching of walls and ceilings, new paint, new epoxy

floor, minor electrical updates, minor plumbing

updates, new HVAC, new exterior concrete pads and

installation of owner supplied equipment.

Square Footage: ~ 3,000 SF



Cost: $365,750

Fee: $28,653

Ridgebrook910 Ridgebrook Road | Sparks, MD

Evaluation and repairs of existing building exterior

in order to remediate deficiencies leading to water

intrusion within the building.

Repaired flashing, completed miscellaneous caulking

and cleaned and applied a seal coat to the exterior

walls. This was applied to only two faces of the

building. Merritt will analyze for the year to determine

if repairs fixed the water penetration. If so, then

the remainder of the building will receive the same

repairs.

Square Footage: N/A

Start Date: July 2014

Completion Date: September 2014

Cost: $152,825

Fee: $19,933

Ridgebrook


Blind Industries & Services2100 Harrod Street | Raleigh, NC

Served as the owner’s representative/construction

manager. Conducted feasibility study for purchase

and renovation of exsiting beverage distribution

facility into textile manufacturing facility. Included:

Phase I Environmental Review

Property Condition Assessment

Mold Evaluation

Asbestos Evaluation

Title Search

ALTA Survey

Roof Assessment

Mechanical & Electrical Systems Assessment

Sprinkler & Life Safety Review

Zoning Compatibility Review


Start Date: February 2014


Cost: $3,000,000

Fee: $75,000

Cranston Building320 E Towsontown Boulevard | Towson, MD

Renovation of 40-year-old building including

basement, first floor and second floor offices, as well

as face lift for parking lot and landscaping.


Start Date: March 2014

Completion Date: April 2015

Cost: $728,989 with a 4% fee

Additional jobs within Cranston Building:

Community Acupuncture

September 2014 - December 2014

Cost: $47,174.60

Profit: $8,187.33

Second Floor Elevator and Common Area

October 2014 - February 2015

Cost: $181,864

Fee: $24,433

Blind Industries - MD

Blind Industries - MD

Cranston Building


Harbour School1277 Green Holly Drive | Annapolis, MD

Currently under contract to add a 667-square-foot

classroom to the Harbour School in Annapolis.

Square Footage: 667 SF

Start Date: January 2015

Completion Date: March 2015

Cost: $121,660

Fee: $11,060

Mattress Warehouse2091 West Street | Annapolis, MD

Under contract to combine two suites into one. This

will require heavy demolition and retrofit work. The

project also requires special concrete finishes, drywall

and ceiling work and mechanical and eletrical work.


Start Date: October 2014


Cost: $70,325

Fee: $7,500


Potomac Valley BrickUrbana Pike (MD Rt #355) | Frederick, MD

New 18,000-square-foot, single-story, warehouse/

office building. Currently under contract for the

design of this building, but on hold until PVB is ready

to begin.



Completion Date: December 2015

Cost: Budgeted around $1 million

Fee: 5%

Celebration Church (The Win Center)8775 Cloudleap Court | Columbia, MD

Currently under contract to conduct a feasibility study

for the acquisition of a former Safeway in Columbia,

MD. Celebration Church is anticipating closing on

the building in November 2014. Merritt is proposing

a cost-plus design-build contract and anticipate the

design in December with construction beginning in

February.


Start Date: February 2015


Cost: $1,200,000

Fee: $57,000

The Win Center

410 298 2600 | www.MerrittConstructionServices.com

Merritt Construction Services PROSPECTIVE PROJECTS

Adrian Steel7601 Energy Parkway | Gambrils, MD

Design, development and construction of a parking lot

We have prepared a budget for the design, development and construction of a parking lot at 7601 Energy Parkway

in Gambrills, MD. Once the site plan is submitted to Anne Arundel County, we estimate the time for the county

processing to be about 12 months. We estimate that the total cost for this project from engineering through

completion to be $2,760,000. Our budget includes all engineering, site work (including managing of fly ash), county

permitting fees and construction management needed to complete the job. To manage the fly ash, soil modification,

clay capping and piping seals for underground utilities will be necessary. The fly ash on site added approximately

$359,500 to the budget.

Square Footage: 11 acres

Start Date: TBD

Completion Date: ~ 12 months after start date

Building Cost: $2,760,000

Fee: 7.94%

Profit: $203,000

BombardierAddress

Project Description

Square Footage:

Start Date:

Completion Date:

Building Cost:

ZeroFoxAddress

Project Description

Square Footage:

Start Date:

Completion Date:

Building Cost:


10/28/2014 1:34 PM

Page 1 of 3

Job Code Name Description Total Value Billings Margin

mc0-13-017 Kaiser PermanenteCarry over from MRi remaining cost

MC00533,379,376.00 129,976.00 3.85%

mc0-13-019 Unicorn Transportation BWI- airport 325,731.00 12,585.00 3.86%mc0-13-021 Comm/Net Systems 175,700.00 13,015.00 7.41%

mc0-13-024 1001 Cathedral St., LLC- AgoraContract pending- 1001 Catheral street-

Do not invoice Legal fees per JAsbury/1-27-14- Job at 50% per JA at 2-28-2014//ecr

2,584,757.95 115,628.95 4.47%

mc0-13-028 GBMC- Pharmacy

renovations to Pharmacy- contract date 7-11-2013-PO#1105528, Per Skip, budget to change by about

$100k, 10-2-13, Lh. Per Skip, project extremely slow moving, 11-26-13, Lh.

892,300.00 43,374.00 4.86%

mc0-13-031 Baltimore RavensBuild Platforms in suites #325,329,428. Next week start work on second ste. per Buddy, 9-4-13, Lh.

Add suite 451 for paltforms 10-1-201319,200.00 600.00 3.13%

mc0-13-032 COE- NTP #6-25-2013 NTP Dated 6-25-2013 Replace HVAC wall unit at door 54

1,169.37 152.53 13.04%

mc0-13-033 Transplant resources- TBI Creation of secure door area in new TBI section 4,251.50 386.50 9.09%mc0-13-046 IPA- Confr Rm Interior Renovations to conference room 9,137.52 849.52 9.30%

mc0-13-049 USCG- FountainInstall water foutain. Per Mark, job on hold, wrong fountain was ordered, 10-16-13, Lh. Install correct

fountain 1/31/2014//ecr945.00 85.91 10.00%

mc0-13-050 USCG- Countertops Bathroom Countertops- upgrade 2,400.00 106.00 4.42%mc0-13-068 USCG- Outlet Add electrical outlet 495.00 15.00 3.03%mc0-13-070 Baltimore Blast-Dryer Install gas dryer 3,060.00 125.00 4.08%mc0-13-082 DBT Ashburn Holding 21800 ARU Removal- plus service calls per MR 5,800.00 2,052.31 35.38%

mc0-13-087 Ascend One CorporationAKA - NAVA wellness center Contract. Costs to be captured in this job code. (in place of other job

code: bh6-13-002a).533,221.63 25,391.51 4.76%

mc0-13-092 Hussman Institute -3rd flr

Contract 3rd Floor renovations. Per Mark, original contract cancelled, bill work to date, 1.22.14. Trying to collect invoices from vendors to bill to date per

Mark, 2/4/14. Invc $80k per Mark, 4.15.14.

3,999,917.93 135,262.93 3.38%

mc0-13-096 Bowles Fluidics Corp Build machine shop in warehouse. Finishing today, can final bill per MM, 4.15.14.

231,070.00

mc0-14-003 County of Loudoun Parks & Rec Install automatic door openers 13,023.12 1,183.92 9.09%

mc0-14-005 Cranston Building

Demo 1st & 2nd floor in stages. Add Building Renovations to $350K. Add work to space planning for Future tenants on 2nd floor cost +4% per SM.

First fl. complete 8.15.14.

341,073.44 9,800.00 2.87%

mc0-14-012 Firaxis Games, Inc. TI work per contract dated 1.17.14. Attached, Lh. Verify who will be PM for this job.

41,288.00 4,750.00 11.50%

mc0-14-014 Lifestar Response Phase I- Server Room 7,759.00 1,292.00 16.65%

mc0-14-016 Canon Solutions America, Inc. Add outlet for TV per contract- attached. PO# 2847369. Complete, can bill per Mark.

225.00 10.71 5.00%

mc0-14-018 Pack-It

aka grand brands. Per Whit paint & carpet front area. Contract pending. 93% complete per Mike B., 3.05.14, cleaning remains. Per Mike, new kitchen;

counter, elect., disposal- email Whit to see if billable, 3.20.14, Lh.

22,000.00 1,047.62 5.00%

mc0-14-021 Syracuse Research (SRC) Demo & repair of suite E, see attchd contract. PO#104713.

29,788.80 1,948.80 6.54%

mc0-14-024 Actavis Cooler

Preperatory work for cooler installation at room 122. Work to be done in 3 phases. Phase 2 to be done by Owner. Extras per Mike, 4.15.14. Job to total at

least $20k per Mike, 4.29.14. Still waiting on Actavis to have their cooler installed, 5.16.14, per MB.-Also

he's going over a list of extras w/ T, will submit week of 5.19.14, Lh. Per MB, cooler to be installed beginning of August, should be able to complete by

end of month, 7.10.14, Lh.

16,690.00 1,620.00 9.71%

Merritt Construction ServicesIn Progress Job Detail

Profit and Cost Summary

MERRITT CONSTRUCTION SERVICES In Progress Job Detail - Profit and Cost Summary

10/28/2014 1:34 PM

Page 2 of 3




mc0-14-028 NAVA Chevy ChaseInterior renovations for Wellness center

Parent Co- "Ascend One Corp". Per MM, started demo about 4.7.14.

890,656.20 42,412.20 4.76%

mc0-14-030 Bowles Fluidics Corp.Sprinkler work, Supply power and other material for

electric pump & fire alarm devices, Rework Fire alarm

78,900.00

mc0-14-036 Hitachi Data Systems Repair (1) door- rplace one section of double door and restain to match

1,025.00 100.00 9.76%

mc0-14-038 Biogrund GMBH Modifications and renovations to existing 482,970.60 35,775.60 7.41%mc0-14-041 IPA TV Installation Install TVs 1,540.00 140.00 9.09%

mc0-14-042 Potomac Metals Contract for metal bldg. structure- design only. Signed 4.18.14 per Eric Dunn, budget attch'd.

44,232.30 2,932.30 6.63%

mc0-14-046 SRA International, Inc. Interior renovations. Complete, can bill per MM, 4.29.14.

34,188.00 3,388.00 9.91%

mc0-14-051 Firaxis Games INC Live-streaming Room 34,847.00 4,009.00 11.50%mc0-14-054 Geobridge Corporation Remove Sidelight 485.00 44.61 9.20%mc0-14-055 Vector CSP Build Offices 9,786.00 466.00 4.76%

mc0-14-056 COE - Pavers & BollardsReplace pavers with Concrete

NTP dated 4-25-2014 INstall bollards & Pad

7,245.00 945.00 13.04%

mc0-14-057 CB Flooring

Waiting on copy of signed contract. Phase I budget entered ($30,910). First phase done per Mark,

5.13.14.- reduce Phs I cost (Not sure how many phases captured in this job #). Change job site

address- same job with budget. Per Ethel, capture all costs in this job, 7.30.14. Phase II $25,650 //ecr

26,070.00 2,370.00 9.09%

mc0-14-061 VCK Realty ( Concrete) Misc Concrete repairs per contract 21,790.00 1,980.00 9.09%

mc0-14-062 Her Mind, Her Body, LLCPer JB- install wall to seperate office area from WH area to the deck, relocate 3 sprinkler pipe drops to

above office area, see attch'd contract.5,790.00 790.00 13.64%

mc0-14-064 COE- PA System Intstall PA System- PTN 24395 54,246.00 7,076.00 13.04%mc0-14-065 Telos- Chillers only Install new chillers for Client 493,238.16 14,366.16 2.91%

mc0-14-066 COE- Gate Closer Intstall new Hydrolic Gate closer- NTP dated 5-19-2014

1,932.00 252.00 13.04%

mc0-14-067 COE- Push Button Intstall Push Button Station at Interior OHD 787.75 102.75 13.04%

mc0-14-068 Celebration Church- Feasibility Feasibility and As-built Study for Celebration Church 5,100.00 - 3.00%

mc0-14-069 Samuel Parker Clothier Polish Concrete work 5,896.00 536.00 9.09%mc0-14-070 Merritt Construction Services Install O/H Door, Racking and Misc. 500.00 - 0.00%

mc0-14-073 UMBC-#320 Remove Wall to create larger office, relocate existing door, paint & patch flooring

4,786.00 741.00 15.48%

mc0-14-076 CareFirst Of Maryland, Inc.

Contract attch'd. Per Mike, labor to be over budget since T required Dana to be there during the wkend while work was being done. Invoice orig. contract

amt. per Mike, added, $1k in extras, 6.24.14.

11,753.00 1,533.00 13.04%

mc0-14-078 Subway Restaurant @ 20 M Street

Construction of a LEED Certified Subway Restaurant. STore is being built in an existing multi-story office building owned by Lerner Enterprise. The space is

currently in a shell condition.

399,340.39 37,126.89 9.30%

mc0-14-079 Armada Install 25ft of Johnsonite Chaire rail on 3 walls in Huddle Room

950.00 95.00 10.00%

mc0-14-081 Cypress Fitness 3rd Story Restroom/Entry Way Renovations 59,921.40 5,447.40 9.09%

mc0-14-083 Arundel Christian SChool

* Per Jason, job can be billed wk of 7/28. -Install 2'x3' window kits into 9 existing doors -Install New Handle on 2 doors, fix latch on 1

door -INstall 3 new doors with 2'x3' window kits, use

existing frame & hardware -Install 1 new door, use existing frame &

hardware -Fix Door Frame

5,580.00 710.00 12.72%

mc0-14-085 USCG - Break Room/Conf. Room

-Demolish Existing Breakroom cabinets and install new ones.

-Reinforce wall in conference room to support large screen tv

Per MM, mtg. with T today, 7/9/14.

400.00 36.36 10.00%

mc0-14-086 APG - Bldg 3400 - SciTech Renovation of Building E3400, Room 310. W/ on equip. to go in before we can finish per SM, 9.30.14.

88,300.00 6,917.00 7.83%

mc0-14-087 Freezer Removal at OBBW1 Freezer Removal 387,000.00 35,181.82 10.00%

MERRITT CONSTRUCTION SERVICES In Progress Job Detail - Profit and Cost Summary (continued)


10/28/2014 1:34 PM

Page 3 of 3




mc0-14-089 L3 Airborne @ BM1 Furnish and Install 1 - 4" conduit stubbed through the roof

2,024.00 184.00 9.09%

mc0-14-090 Children's Choir Renovations per contract dated 6-12-14. Almost complete per SM 7.23.14.

95,000.00 7,150.00 7.53%

mc0-14-091 SC&H (910 Ridgebrook)Various repairs due to North and East balcony and Facade. Including: Clean and Seal Brick, Control

Joint Caulking, Window Caulking, Masonry.152,825.00 19,933.70 15.00%

mc0-14-093 VCK Realty (Misc Repairs) Misc repairs throughout property 7,000.00 518.52 8.00%mc0-14-094 New Wave Tenant - subleasing from Aegis 14,800.00 1,345.45 10.00%mc0-14-095 Maryland Allstar Athlectics LLC Install blinds 300.00 41.06 13.69%mc0-14-097 USCG - Bulletin Board 0 1,400.00 127.27 10.00%

mc0-14-098 Cardinal Shehan School We are doing a little clearing, fencing and basketball backboard installation for the school for free.

11,800.00 (11,800.00) -100.00%

mc0-14-100 Firaxis - NOW PHASE1 New office with Sidelight

Demo Wall & Paint new walls and ceiling Update Fire Protection

31,735.00 3,450.00 10.87%

mc0-14-101 USCG - Smoking Shelther Install Provided Smoking Shelter 6,359.50 829.50 13.04%mc0-14-102 DAC - Painting 140.00 12.73 10.00%mc0-14-104 Neustar Demo Lab Small job to Demo lab for Neustar with Fidelity 2,036.28 141.28 6.94%

mc0-14-105 Redskins HVAC HVAC work we did as a favor. Will not be putting profit

14,490.00 (14,490.00) -100.00%

mc0-14-106 MFCA Site Work

-To capture the costs associate with MFCA's share of site work done for the MP Food Ventures Deal.

MFCA will pay 100% on 67% of the total work done on the site.

3,732,365.00 244,173.41 7.00%

mc0-14-107 APG- Bldg E5390 365,750.00 28,653.23 8.50%

mc0-14-108 Carefirst - Drywall/Carpet/Ele Medium sized job for Carefirst, to replaced Drywall, Carpet, and Paint, along with some electrical Work

113,320.00 13,035.00 11.50%

mc0-14-109 COE - Lighting/Conduit Room 33Installation of Conduit, New Lighting and Receptacles for Room 33 at Dorsey Road

Warehouse76,083.00 9,924.00 13.04%

mc0-14-110 Sierra Pacific - ElectricalSupply and Install one Receptable - $650

Supply and Install cat 5e low voltage cable for copy machine - $450

1,100.00 100.00 9.09%

mc0-14-111 Prosync - Door Replace Door + Misc Drywall/paint/carpet/elec 1,650.00 323.51 19.61%mc0-14-112 Red Cross Antennas 5,850.00 585.00 10.00%

mc0-14-114 Holocaust Electric work per Porposal date 9-10-2014 for cnc machine. Tenant paid by CC on 10-1-2014

1,415.00 128.64 10.00%

mc0-14-115 Bon Secours - Feasibility Feasibility and As-built Study 32,650.00 1,255.77 4.00%mc0-14-116 Telos Renovation Work 450,000.00 27,000.00 6.00%mc0-14-119 Cranston Bldg -2nd Fl-Comm Accup Common Area renovation 47,174.60 8,187.33 17.36%

mc0-14-120 Cranston Bldg - 2nd Fl - ELEV/COM Adding a Second floor elevator and common area 181,864.90 24,433.17 13.43%

mc0-14-121 Carefirst - Dutch Door Installation of new dutch door for mail room 2,910.00 215.56 8.00%

mc0-14-125 Potomac Metals Construction 61,500 SF, 24fr Clear tilt up construction. MCS fee of 5%

4,751,438.00 226,258.95 5.00%

mc0-14-126 Mattress Warehouse Demolition and Retrofit 70,325.00 7,500.00 11.94%

mc0-14-127 Cornerstone Chapel Complete Ground up Construction of a huge fancy Church

28,075,062.00 684,757.61 2.50%

Grand Total : 54,048,503.34 1,990,707.98 3.82%

MERRITT CONSTRUCTION SERVICES In Progress Job Detail - Profit and Cost Summary (continued)


Job Code Name Description Total Value Billings Profit Margin

mc0-14-096 Ricoh Showroom DoorsInstall full-glass inserts into existing double wood doors; to

include glass panels, installation and over. Re-align doors to lock properly.

$915.86 $1,530.00 $614.14 67.06%

mc0-14-092 Advanced Medical 0 1,327.91 1,600.00 272.09 20.49%

mc0-14-084 Redskins Park and Fedex Field

Project 1 - Access Road Along Practice Field Project 2 - New Goal Posts (park)

Project 3 - New Goal Posts (Fedex Field) Project 4 - Redskin Park Drainage

20,564.67 29,715.00 9,150.33 44.50%

mc0-14-082 VCK Realty (Quadrangle Pest Damage)

Set up to capture costs for payroll. Remove all perimeter kneewall, drywall and wood furring, and fill space below window

system w/ cementitious material, inspect for further insect damage.

1,890.00 2,365.00 475.00 25.13%

mc0-14-059 Stardock Corporation Conference room 112, 113; drywall work (only). Skip to determine amount to bill.

1,000.00 1,100.00 100.00 10.00%

mc0-14-052 Redskin Bathroom Renovation Renovations to existing bathrooms Club Level 206,207.85 217,408.38 11,200.53 5.43%

mc0-14-043 State of Maryland Install (1) outlet for TV- cancelled per Buddy 4-29-2014 reinstated 5/23/2014

325.00 373.75 48.75 15.00%

mc0-14-026 Rolling Road Golf Club Install 2 windows in Club house (RRGC). Bill for work that has been done per Buddy, 4.29.14.

3,537.64 3,537.64 - 0.00%

mc0-14-025 VCK Realty ( White Box)Create a white box for vacant space at village of Cross Keys.

Bill 2nd payment per Skip, job on hold- waiting on electrician in order to finish, 4.29.14.

16,606.30 18,919.00 2,312.70 13.93%

mc0-14-022 Proove Biosciences Contract work 106,993.08 104,226.99 (2,766.09) -2.59%

mc0-14-019 Wounded Warrior House Per Mark, bill time for Wounded Warrior House, 16hrs @ $70/hr. Bill to MECC, forwarded 2.20.14, per Mark.

$0.00 $1,120.00 $1,120.00 0.00%

mc0-14-009 Carefirst- Area 2E-153-155 Electric Work & Merritt Supervision for Furniture move 800.00 1,600.00 800.00 100.00%

mc0-13-100 Blind Industries Raleigh Constr Project management of new construction- Hours at $80/he plus all expenses, travel,... and Fee

127,928.91 203,077.00 75,148.09 58.74%

mc0-13-094 Vision RT Bill directly design & Site inspection per Carroll Engineering - 350.00 350.00 0.00%

mc0-13-090 TMD Technologies, LLC Set up per Mark M. to capture costs for T&M job. Ok to bill per Mark- 1/8/14, Lh.

1,400.72 1,540.72 140.00 9.99%

mc0-13-088 Sky Courier/ DHL Install wall for sound in Conference room 1,916.54 2,826.90 910.36 47.50%

mc0-13-078 Jemicy School renovations. Add Rubber flooring per S Miller- straight pass through of cost only 7.15.2014 $4032.19 material plus labor.

96,121.12 98,909.44 2,788.32 2.90%

mc0-13-077 Jailbreak Brewing CompanyContract work- code all invoice except demo- tenant to pay final

invoice of $120K by 7/31/14 per Vince Bagli- Draw schedule//ecr

465,720.14 472,337.47 6,617.33 1.42%

mc0-13-067 Transplant Resources Interior renovations new construction. Just waiting on furniture as of 2/19/14.

167,993.60 186,660.00 18,666.40 11.11%

mc0-13-058 Merritt Athletic - Towson Snack bar Build Snack bar- carry over from MRi 66,122.46 66,122.46 - 0.00%

mc0-13-054 Techtronic Industries (TTI) Install Counter Bar with Granite and Trash Cabinet $6,011.22 $5,891.00 -$120.22 -2.00%

mc0-13-038 Costco - Conf Rm Demo demo conference room 12,332.25 17,449.27 5,117.02 41.49%

mc0-13-028 GBMC- Pharmacyrenovations to Pharmacy- contract date 7-11-2013-

PO#1105528, Per Skip, budget to change by about $100k, 10-2-13, Lh. Per Skip, project extremely slow moving, 11-26-13, Lh.

979,870.83 1,004,467.00 24,596.17 2.51%

MC0-13-003 COE BiocontainmentNTP25600 dated 8-12-2011- Design and Build Biocontainment

area at door #3. Cls job 06/2014- Wait for JE to correct A/R before closing

572,998.61 737,663.48 164,664.87 28.74%

MC0-13-007 Redskins Park-Kitchen Interior Renovations to Kitchen 765,080.89 893,019.15 127,938.26 16.72%

MC0-13-006 Redskins Park- Addition Build addition to existing Structure 1,500,742.32 1,597,863.00 97,120.68 6.47%

MC0-13-010 KDON Investment Group, LLC aka"Keeper Tech" - Interior Renovations 618,080.26 684,879.26 66,799.00 10.81%

MC0-13-020 Loudoun County Sanitation Auth Reclaimed Water Line 911,931.23 943,711.79 31,780.56 3.48%

MC0-13-029 Cyberhive Interior renovations, minor extras, per Mark, 9-18-13. Should be completely done by 11/1, per Mark.

212,148.89 235,926.00 23,777.11 11.21%

MC0-13-056 USCG- amend #2 major renovations to space- Carry over from MRI. Additional extras invoiced in june 2014 $4400.00

451,203.52 474,180.00 22,976.48 5.09%

MC0-13-030 L-3 Communications Interior renovations $197,313.11 $217,778.00 $20,464.89 10.37%

MC0-13-079 GBMC- Neurology Neurology - Carry over from MRi #MC1335 402,334.04 422,381.00 20,046.96 4.98%

MC0-13-025 Expedient Communications Interior renovations 189,507.74 208,598.40 19,090.66 10.07%

MC0-13-084 Redskin Demo Demo old hydrotheraphy Room 83,029.66 99,159.93 16,130.27 19.43%

MC0-14-001 CACI Renovations per Contract dated 11/8/2013. PO#S14-129986- need breakdown on general Conditions

89,912.34 102,698.64 12,786.30 14.22%

MERRITT CONSTRUCTION SERVICES Jobs Closed in 2014 - Profit and Cost Summary


MC0-13-095 Knight Takes King Productions Office Renovations for Tenant 186,065.45 196,065.45 10,000.00 5.37%

MC0-13-035 Renaissance art Gallery- Constr Interior Renovations 366,683.35 375,315.85 8,632.50 2.35%

MC0-13-097 The Harbour School Interior reonovations. Done- can bill per Mark, 1/8/14, Lh. 10,850.00 17,850.00 7,000.00 64.52%

MC0-13-051 GBMC- Bluebell BlueBell parking lot- carry over cost from MRI 117,582.96 123,252.00 5,669.04 4.82%

MC0-13-053 Concentrix -Generator Steel supports for roof to carry generator- carry over from MRI 11,892.20 14,472.00 2,579.80 21.69%

MC0-13-074 COE Access flooring Install Access flooring $16,650.00 $19,147.50 $2,497.50 15.00%

MC0-13-002 COE Fire Alarm NTP18889-Design new fire Alarm System. Invoiced $12K pd 2-15-2011/ Job on Hold-

16,502.58 18,969.25 2,466.67 14.95%

MC0-13-008 Carefirst of Maryland Renovations to Offices #119, 141, 142 per proposal dated 5-9-2013.

62,340.76 64,251.00 1,910.24 3.06%

MC0-13-011 COE -RTU #4 Replace RTU#4 NTP dated 5-22-2013 26,982.50 28,865.00 1,882.50 6.98%

MC0-13-098 COE - Conference Rm Convert Conference room into workstations in SCIF area NTP dated 9-26-2013 PTN 27221

6,527.00 8,081.00 1,554.00 23.81%

MC0-13-062 United Healthcare-T&M T&M craryover from MRI- JE to correct a/r pending- 7.17.14//ecr 25,333.72 26,833.72 1,500.00 5.92%

MC0-13-022 Prototype Productions Carry over from MRI - payment pending- Legal issues 12,548.69 14,036.30 1,487.61 11.85%

MC0-13-063 COE Stripe inside bldg NTP- dated 7-12-2013 stripe areas inside bldg- carryover from MRI

16,318.50 17,457.00 1,138.50 6.98%

MC0-13-057 Liebert Corporation PO#P02013015-Electric- Carry over from MRI 3,477.82 4,331.75 853.93 24.55%

MC0-13-089 ORKIN, Inc.

Remove wall between 2 offices, patch adjacent walls, replace carpet in both rooms, reswitch lights to one switch, remove

waste to tenant provided dumpsters. Per Buddy, waiting to put carpet in, 11-26-13, Lh. Still waiting on carpet per Buddy,

12.11.13, Lh.

1,382.22 2,200.00 817.78 59.16%

MC0-13-091 Irvine Access Floors Inc Renovations $7,172.42 $7,750.05 $577.63 8.05%

MC0-13-042 IMS Install sink & garbage disposal, total cost $1,850- see contract dated 9-5-13, Lh.

1,397.00 1,850.00 453.00 32.43%

MC0-13-064 COE Electric for camera NTP dated 7-10-2013/ electric - install (2) outlets for camera- carryover from MRI

5,633.00 6,026.00 393.00 6.98%

MC0-13-012 COE- Duct Clean Duct Work on L-side- NTP dated 5-25-2013 1,500.00 1,725.00 225.00 15.00%

MC0-13-004 Unicorn Transportation 0 2,678.00 2,870.00 192.00 7.17%

MC0-14-039 COE- Lunch Room #52 Paint Lunch Room #52 1,275.00 1,466.25 191.25 15.00%

MC0-13-101 US Holocaust Electric work - proposal dated 11-15-2013 1,075.00 1,236.25 161.25 15.00%

MC0-13-065 Vision Technology-cab Capture cost to deliver/install cabinet w/file drawers- carryover from MRI

3,446.27 3,590.00 143.73 4.17%

MC0-13-059 Mortgage Masters Install countertop- carryover from MRI JE to correct a/r pending close

2,116.00 2,250.00 134.00 6.33%

MC0-13-085 Brain Training of Columbia Sm. drywall job. 350.00 450.00 100.00 28.57%

MC0-13-061 Saxon Infotech, Inc Capture cost for Push button lock- carry over from MRI $600.00 $650.00 $50.00 8.33%

MC0-13-060 NRT Mid-Atlantic- Renovations carryover from MRI pending JE to correct AR//ecr

51,005.47 50,973.70 (31.77) -0.06%

MC0-13-055 Emjay Global Furnish & install (3) quad outlets in Warehouse walls- carry over from MRI

1,845.63 1,598.00 (247.63) -13.42%

MC0-13-034 Dorsey Residence Set up to capture cost for Construction 54,487.14 42,385.87 (12,101.27) -22.21%

MC0-13-001 Mechanical Engineering & Const Corp Renovations to Existing tenant building 1,746,034.58 1,727,061.60 (18,972.98) -1.09%

mc0-13-041 COE-water main Repair Water Main Leak 2,122.00 2,440.30 318.30 15.00%

mc0-13-048 Motor Vehicle Administration Sink 465.34 465.34 - 0.00%

mc0-13-066 Gym Source Mid Atlantic 1,500.00 1,650.00 150.00 10.00%

mc0-13-071 SRA International, Inc. Carpet & Paint, Inv. upon acceptance $35,363 & remaining 50% ($35,363) upon completion. Work to be done in LL's 60-120.

71,161.00 70,726.00 (435.00) -0.61%

mc0-13-073 Dunbar Armored, Inc. Contract pending. Ceiling work per Lee. 17,756.20 25,331.35 7,575.15 42.66%

mc0-13-075 COE Access Flooring #2 Install Access flooring $8,464.00 $9,733.60 $1,269.60 15.00%

mc0-13-076 IPA- Integration Room Interior Renovations to Integration Room Split 2,985.80 9,137.50 6,151.70 206.03%

mc0-13-093 Physiotheraphy Associates Inc Relocate (1) door and +/- 8 feet of countertop; Repair drywall and touch up paint at door removal location

1,430.97 3,869.80 2,438.83 170.43%

mc0-14-004 Loudoun Pro Sports Ducts 960.00 3,410.00 2,450.00 255.21%

mc0-14-010 Eurotherm Small contract job 2,141.26 3,694.90 1,553.64 72.56%

MERRITT CONSTRUCTION SERVICES Jobs Closed in 2014 - Profit and Cost Summary (continued)




$915.86 $1,530.00 $614.14 67.06%





20,564.67 29,715.00 9,150.33 44.50%




1,890.00 2,365.00 475.00 25.13%


1,000.00 1,100.00 100.00 10.00%



325.00 373.75 48.75 15.00%


3,537.64 3,537.64 - 0.00%



16,606.30 18,919.00 2,312.70 13.93%



$0.00 $1,120.00 $1,120.00 0.00%



127,928.91 203,077.00 75,148.09 58.74%



1,400.72 1,540.72 140.00 9.99%



96,121.12 98,909.44 2,788.32 2.90%



465,720.14 472,337.47 6,617.33 1.42%


167,993.60 186,660.00 18,666.40 11.11%






979,870.83 1,004,467.00 24,596.17 2.51%



572,998.61 737,663.48 164,664.87 28.74%






212,148.89 235,926.00 23,777.11 11.21%


451,203.52 474,180.00 22,976.48 5.09%






89,912.34 102,698.64 12,786.30 14.22%


mc0-14-013 UMBC- Ste. 230 Demo wall & repair area- including drywall, paint & carpet. Also add 2 recepticals. See attch'd contract.

875.00 1,875.00 1,000.00 114.29%

mc0-14-015 Lifestar Response Phase II- (2) New Offices. Keeps adding work per Buddy, 4.15.14.

26,935.36 38,407.23 11,471.87 42.59%

mc0-14-024 Actavis Cooler

Preperatory work for cooler installation at room 122. Work to be done in 3 phases. Phase 2 to be done by Owner. Extras per

Mike, 4.15.14. Job to total at least $20k per Mike, 4.29.14. Still waiting on Actavis to have their cooler installed, 5.16.14, per

MB.-Also he's going over a list of extras w/ T, will submit week of 5.19.14, Lh. Per MB, cooler to be installed beginning of

August, should be able to complete by end of month, 7.10.14, Lh.

6,598.88 10,480.00 3,881.12 58.81%

mc0-14-035 Bizerba Install fire doors. Per Mike, can bill for original work in contract, 4.29.14.

3,122.31 3,216.00 473.20 15.16%

mc0-14-040 KEYW/ Poole & Assoc.-SCIF Construct Wall & Closet in SCIF area 14,804.73 16,430.00 1,791.02 12.10%

mc0-14-050 Schindler Elevator Repaint training Room $795.00 $875.00 $80.00 10.06%

mc0-14-072 Broadmead Roof screen Design Work 3,750.00 7,500.00 3,750.00 100.00%

mc0-14-088 APG - Bldg E3375 Engineering and testing services to evaluate the existing concrete slab and underlying soils for exterior slab.

1,500.00 2,000.00 500.00 33.33%

mc0-14-103 UMBC - Goddard Earth Science Restorative Carpet Clean per Customer Service- To be paid by Credit Card

249.10 249.10 - 0.00%

mc0-14-074 COE- Room 34Design Build for Comms and Supplemental Cooling for Room

#34 PTN26940

29,696.00 36,495.00 6,799.00 22.90%

mc0-14-071 COE-Ice Maker Intstall Supplied ice maker NTP Dated 5/12/2014 825.00 948.75 123.75 15.00%

mc0-14-056 COE - Pavers & BollardsReplace pavers with Concrete

NTP dated 4-25-2014 INstall bollards & Pad

6,300.00 7,245.00 945.00 15.00%

mc0-14-034 FAVA Residence Contract- Water damage repairs. Per Skip, painting on 4.15.14. Skip needs to check w/ Quality before sending invc, 4.29.14.

14,420.00 16,500.00 2,080.00 14.42%

mc0-14-029 USCG- GSA Clean carpets - due to grease CS # WO4531

235.00 235.00 - 0.00%

mc0-14-027 Saxon Infotech, Inc.Installed digital entry. Bill for Chesapeake Safe & Lock Inv.

totalling $401.15, per Mark. Add'l electric work ($1,275) to bill tenant, 4.22.14, Lh.

1,676.15 1,676.15 - 0.00%


$3,537.64 $3,537.64 $0.00 0.00%

mc0-14-023 COE - Network/Break Rm Install VCT in Network room and Replace flooring in break room 2,861.00 3,290.00 429.00 14.99%

mc0-14-020 CareFirst- 1st floorconstruct a 9'X12' office at workstation locations 1E-071 and

077 on 1st floor, start Mid- March, schedule pending, Lh. Contract attached.

10,457.63 13,376.00 2,918.37 27.91%

mc0-14-017 CareFirst- Power Pole Disconnect power pole at 2E-257 to 260- on Friday 2/28 @ 6pm and reconnect the following day @ 11am.

175.00 400.00 225.00 128.57%

mc0-14-007 UMBC- Ste. 310 P & C of room, totalling $975 per contract dated 1-6-14. 813.00 975.00 162.00 19.93%

mc0-14-002 Subway( 20 M Street INC) Consulting agreement for building a subway 33,949.19 36,906.19 2,957.00 8.71%

mc0-13-094 Vision RT Bill directly design & Site inspection per Carroll Engineering 350.00 350.00 - 0.00%

mc0-13-083 BIOGRUND GbmH Design work to Existing building-Mech/Electrical 16,566.66 20,388.16 3,821.50 23.07%

mc0-13-081 Carefirst 2nd Flr Phs IIAdditional Renovations to Offices- 2nd Floor- (2) private offices Reconfigure Cubicals for new layout- Proposal date 8-22-2013

Signed 9-20-201333,018.09 34,646.00 1,627.91 4.93%

mc0-13-072 USCG- Power Supply Install power supply- Carry over from MRi MC1339- Tenant to pay by credit card

945.00 1,086.75 141.75 15.00%

mc0-13-069 Village at Cross Key Sidewalk repair 11,670.57 14,725.00 3,054.43 26.17%

mc0-13-052 Carefirst - Power poles Capture payment for power poles 2,640.48 8,400.00 5,759.52 218.12%

mc0-13-048 Motor Vehicle Administration Sink 465.34 465.34 - 0.00%

mc0-13-047 Lifestar Response of MD, Inc. Direct bill for painting. 385.00 385.00 - 0.00%

mc0-13-044 Sims Recycling PO# PN2060-set up for MC - replaced #005597. inv open at 6-29-2013//Invoice paid 7-1-2013 cost pending//7-10-2013//ecr

17,724.81 22,607.25 4,882.44 27.55%

mc0-13-043 Junior Achievement of C MD removal of Grid & tile with electric demo 4,440.00 4,440.00 - 0.00%

mc0-13-026 Carefirst 2nd Flr Phs I Renovations to Offices- 2nd Floor- (2) conference rooms & (3)

private offices. contract pending- capture light fixtures- long lead time- proposal Dated 6-24-2013. Signed.

52,039.62 57,421.48 5,381.86 10.34%

mc0-13-013 Blind Industries - Raleigh Consultant work for Purchase building in raleigh, NC 43,097.40 43,317.11 219.71 0.51%

Grand Totals: $11,497,527.50 $12,385,304.15 $888,321.91 7.73%

MERRITT CONSTRUCTION SERVICES Jobs Closed in 2014 - Profit and Cost Summary (continued)




$915.86 $1,530.00 $614.14 67.06%





20,564.67 29,715.00 9,150.33 44.50%




1,890.00 2,365.00 475.00 25.13%


1,000.00 1,100.00 100.00 10.00%



325.00 373.75 48.75 15.00%


3,537.64 3,537.64 - 0.00%



16,606.30 18,919.00 2,312.70 13.93%



$0.00 $1,120.00 $1,120.00 0.00%



127,928.91 203,077.00 75,148.09 58.74%



1,400.72 1,540.72 140.00 9.99%



96,121.12 98,909.44 2,788.32 2.90%



465,720.14 472,337.47 6,617.33 1.42%


167,993.60 186,660.00 18,666.40 11.11%






979,870.83 1,004,467.00 24,596.17 2.51%



572,998.61 737,663.48 164,664.87 28.74%






212,148.89 235,926.00 23,777.11 11.21%


451,203.52 474,180.00 22,976.48 5.09%






89,912.34 102,698.64 12,786.30 14.22%


groSolar Power Purchase Agreement (PPA)Proposal Summary

A local solar company, groSolar, has proposed a

project to Merritt Properties that would provide

energy to our office building portfolio at a fixed rate of

$0.065/KiloWatt Hour (kWh) for the next 25 years. This

project would require an agreement to purchase a set

quantity of power from groSolar each year for the next

25 years. The amount of power currently proposed is

equivalent to approximately 80% of the annual energy

use of our office building portfolio.

As a part of our agreement to purchase the power,

groSolar would purchase land somewhere within the

PJM electrical grid (the grid that serves BGE) and

construct a 28 MegaWatt (MW) solar farm facility that would be dedicated to Merritt Properties.

We currently purchase blocks of power through a third-party provider, like Washington Gas or Constellation

Energy, that provide locked-in rates for periods of 2-3 years. Once those agreements expire we have to go back

out to the market and purchase a new block of energy based on the current electricity pricing. This project would

substitute for those third-party providers and would provide locked-in pricing at $0.065/kWh for 80% of our

office building portfolio for 25 years. We would still have to purchase the remaining 20% based on the market

rates but this would significantly reduce our exposure to the volatility of the electricity commodity market. We

currently pay an average of $0.073/kWh, so this would already be an 11% savings from those rates.

The cost of electricity is only expected to rise in the future and we are currently reaping the benefits from a dip in

the market. We have paid more than $0.10/kWh within the past 5 years. If the electricity pricing increases at an

average rate of 3% per year over the next 25 years, the cumulative savings to Merritt over that time period would

be more than $35.5 million. This project would require no up-front capital from Merritt and could provide us with

a significant competitive advantage with regard to the future utility costs in our office buildings.


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