the 75-unit “class a” apartment building … · 75-unit “class a” apartment building...

75-UNIT “CLASS A” APARTMENT BUILDING BOSTON, MASSACHUSETTS

F O R S A L E THEBUILDING

INVESTMENT SUMMARY

INVESTMENT SUMMARYTHE SIGNAL BUILDING , BOSTON, MA

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2BOSTON REALTY ADVISORS • THE SIGNAL BUILDING

Boston Realty Advisors has been exclusively retained to market The Signal Building in Boston, MA.

The Signal Building is a 75-unit luxury loft-style, urban infill transit oriented apartment community located in Boston Massachusetts. The Signal Building was designed to cater to the high-tech/high-style renter looking for the latest innovations in luxury living with a hip Boston location. Located just minutes from downtown Boston, The Signal Building offers residents unparalleled access to employment, transportation and all of the lifestyle amenities that Boston has to offer. Located approximately one mile from downtown Boston, the property is blocks from the Broadway MBTA Red Line station, providing access to Boston and Cambridge, and one-half mile from both I-90 (Mass Pike) and Interstate 93, offering outstanding access to Boston’s Financial District, Back Bay and Logan International Airport.

Due to its exceptional quality of life, cultural offerings, diversified employment and well-developed infrastructure, Boston is considered one of the nation’s most desirable areas to live and work. Contrary to the national economy, the Boston market continues to expand in the areas of education and health services and professional, scientific and business services having added over 64,300 jobs since December of 2009. Massachusetts is the nation’s epicenter for biotechnology, with over 300 biopharmaceutical companies located in the state. Biotechnology in Massachusetts is highlighted by industry leaders such as Wyeth, Genzyme Corporation, Biogen Idec, Millennium Pharmaceuticals, Amgen, Novartis, Pfizer, Abbott, Astra Zeneca, and Merck to name a few.

The Signal Building represents a complete redevelopment of an existing loft industrial building plus the addition of two new wings encompassing 75 units. Originally built in 1920, this four-story building is now a striking example of urban loft styling. Exclusive apartment homes just minutes from the Boston CBD create some of the finest in apartment living in Boston. With exposed brick walls (select units), original wood beams (select units), Italian kitchens with custom cabinets, stainless steel appliances, granite counter tops, marble bathrooms, laundry in unit, central A/C, 15 foot ceilings (select units) and private roof decks (select units). The Signal Building has much more to offer than a traditional apartment building. The unit mix includes six (8.0%) studio apartments (633 SF), 43 (57.3%) one-bedroom apartments (943 SF) and 25 (33.3%) two bedroom, two bath apartments (1,524 SF), and 1 (1.3%) three bedroom, two bath apartment (2,131 SF) with an average apartment size of 1,128 square feet. Community amenities include a panoramic common roof deck with views of the Boston skyline and waterfront.

As a luxury living community, with unsurpassed unit designs and finishes, The Signal Building is ideally suited to realize the gains fueled by a tightening rental market. In addition, the current finishes ideally position the property for a condo conversion exit strategy. We are offering this unique investment opportunity for sale on an unpriced basis.

Sales Process & Timeline

We are offering this unique investment opportunity for sale on an unpriced basis. We will be conducting tours over the next several weeks with a call for offers to follow. Additional due diligence materials are available on www.thesignalbuildingboston.com to qualified buyers. These materials include rent rolls, operating statements, tax bills and other documents.

75-unit luxury loft-style apartment buildingCurrently 95% occupiedStabilized core investment opportunityOutstanding in-fill location, just minutes from The Financial District and the vibrant Seaport neighborhood of BostonSuperior amenity package featuring private and common rooftop terraces with unri-valed harbor/city views, elevatored building and garage parkingUnsurpassed finishes: Italian kitchens with custom cabinets, stainless steel appliances, granite counter tops, marble bathrooms, hardwood floors, laundry in unit, central AC, 15 foot ceilings (select units), brick and beam exposures (select units) and private roof decks (select units).Outstanding subway access to Boston’s Financial District, Back Bay and Logan Air-port and excellent highway access to Interstate 93, I-90 (Mass Pike) and Routes 1/1ACondo Conversion Exit – Opportunity to convert units to condos with minimal conversion costs

PROPERTY HIGHLIGHTS

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Boston Common

Boston HarborFINANCIAL

DISTRICT

Fort Point Channel

SOUTH BOSTON BYPASS ROAD

W BROADW

AY

FORT POINT

Boston Federal Courthouse

South Station

INVESTMENT SUMMARY

INVESTMENT SUMMARYTHE SIGNAL BUILDING , BOSTON, MA


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Foundation: Poured concreteFraming: Combination for wood frame, brick and beam and

steel beams. Steel deck over the parking garage.Roof: Flat roof with rubber membrane

Exterior: Brick exterior and copper panelsWindows: Vinyl clad windowsExterior Doors: Glass in aluminum frame

Ceiling Height: 9’6” in the new construction buildings15’6” in the brick and beam building

The Signal Building is a 75-unit luxury loft-style, urban infill transit oriented apartment community located in Boston Massachusetts. The property is located just minutes from downtown Boston and one-half mile from both I-90 (Mass Pike) and Interstate 93.

Building Construction


PROPERTY DETAILS

PROPERTY DESCRIPTIONTHE SIGNAL BUILDING , BOSTON, MA

Heating & Cooling: Individual gas-fired Goodman HVAC units with pad or roof mounted condensers that provide forced hot air and central A/C.

Domestic Hot Water: Units have individual 60-gallon hot water tanks.Fuel Source: Natural gasUtility Metering: Tenants are responsible for heat, hot water and

electricity.Sprinkler System: 100% sprinklered (all units and common areas)Electrical to Each Unit: 125 AmpsLife Safety Service: Units offer hardwired smoke and CO detectors.

Fire alarm system is monitored by a third party company.

Security: The building has controlled access entry. Door King Access system allows residents to connect buzzer directly to their cell phones. Residents also have a key fob for entry.

Mechanical Systems

Address: 154 West Second Street, Boston, MA

Site Size: 18,150 +/- SF: 154 West Second Street9,281 +/- SF: 171 West First Street8,921 +/- SF: 160 West Second Street36,352 +-/ SF: Total

Access: Via West First or West Second Street

Utilities: Water: City of BostonSewer: City of BostonElectricity: NSTARGas: National GridTelephone: VerizonCable/Internet:RCN- Revenue sharing contract

Parking: 74 Tandem Spaces – Garage B4 Single Garage Spaces – Garage B22 Single Garage Spaces – Garage A100 Total Spaces (1.3 spaces/unit)

Site Information

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# of Units: 75 Units

Building Height: Four (4) story buildingYear Built/Renovated: 1920 – Original construction

2010 – Redevelopment/New ConstructionTotal Rentable Area: 84,577 SFUnit Mix:

Building Specifications

Unit TypeStudio- AFFStudio1 Bed, 1 Bath- AFF1 Bed, 1 Bath2 Bed, 2 Bath- AFF2 Bed, 2 Bath3 Bed, 2 BathTotal/Average

# of Units335

381

241

75

Unit SF642624961940

1,3141,5332,1311,128

Total SF1,9251,8724,806

35,7311,314

36,7982,131

84,577

UNIT MIX • THE SIGNAL BUILDING

*These are approximate SF measurements


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Washer/Dryer: Either full size, stackable or all-in-one washers and dryers in units.

Community Amenities:

Community amenities include a panoramic common roof deck with views of the Boston skyline and waterfront. The deck also offers full bathroom and kitchen. Select units have private roof decks. Elevatored buildings with garage parking.

Common Area Finishes

Floors: Carpet

Walls: Painted sheetrock

Ceilings/Lighting: Painted sheetrock/central lighting

Front Door: Solid core wood doors

Kitchens- Market Rate Units

Flooring: Engineered hardwood (oak) floors with either a walnut or honey stain

Countertops: GraniteCabinets: Custom Italian cabinetsSink: Stainless steel, double bowlCeiling/Lighting: Painted sheetrock/track

lightingRefrigerator: Stainless steel- KitchenaidStove/Exhaust Fan: Stainless steel- Kitchenaid-

Natural gasDishwasher: Stainless steel- WhirlpoolDisposal: Yes

Interior Detail

Other


PROPERTY DESCRIPTION9 SUMMIT AVENUE

Kitchens- Affordable or Former Artist Units

Flooring: LaminateCountertops: LaminateCabinets: Espresso woodSink: Stainless steel, double bowlCeiling/Lighting: Painted sheetrock/track

lightingRefrigerator: Stainless steel- WhirlpoolStove/Exhaust Fan: Stainless steel- Whirlpool-

Natural gasDishwasher: Stainless steel- WhirlpoolDisposal: Yes

Living Room/Dining Room/Bedrooms

Floors: Engineered hardwood (oak) floors with either a walnut or honey stain. Laminate flooring in affordable or former artist units.

Walls: Painted sheetrockCeiling/Lighting: Painted sheetrock/track

lightingClosets: Ample

Doors: Hollow core wood

Bathrooms

Floors: Marble tile in fifty-six (56) units. Ceramic, cultured marble or travertine tile in nineteen (19) units.

Walls: Painted sheetrockCeiling/Lighting: Painted sheetrock/central

lightingVanity: European style vanity with

marble top. Affordable and former artist units have an espresso vanity.

Tub/Shower: Either combination or show with marble tile surround. Ceramic tile in nineteen (19) units.

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Occupancy Covenants

The Signal Building was originally permitted through the Article 80 permitting process as a live/work development with 24 of units being set aside for artists. On July 20th, 2010 the Boston Redevelopment Authority approved the Notice of Project Change. The terms of which are detailed below.

As of July 20, 2010

• Project will include 57 units (Non-Artist), five (5) of which will be set aside as affordable • Project will include 18 units (Artist), four (4) of which will be set aside as affordableAs of October 20, 2010

• If by October 20, 2010, after an aggressive marketing to the artist community via the Proponent’s marketing agent, the market-rate units remain vacant, then those units will be released and be allowed to be rented to both artists and non-artists. • Project will include 71 units (Non-Artist), five (5) of which will be set aside as affordable • Project will include 4 units (Artist), all of which will be affordable

Permitting Documents

A summary of the permitting documents posted to www.thesignalbuildingboston.com are listed below:

• Zoning Board of Appeals – August 22, 2006 • Notice of Project Change Memo – Boston Redevelopment Authority – July 20, 2010 • Determination Waiting Further Review – Boston Redevelopment Authority – August 10, 2010

Affordable Units

As part of the approval process for The Signal Building, nine (9) units are required to be set aside as affordable. This requires that all of the on-site affordable units must be rented to household earning 80% of AMI. Below is the schedule of affordable units:


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The Signal BuildingSchedule of Affordable Units

Unit # Type SF Location107 1 Bed, 1 Bath 995 First Floor110 1 Bed, 1 Bath 1,001 First Floor218 1 Bed, 1 Bath 1,000 Second Floor221 1 Bed, 1 Bath 1,001 First FloorG-1 2 Bed, 2 Bath 1,314 First Floor101 1 Bed, 1 Bath 809 First Floor105 Studio 628 First Floor205 Studio 609 Second Floor213 Studio 688 Second Floor

Total/Average 9 8,045

Environmental

As with most urban infill properties, the property had some environmental matters that had to be addressed as part of the redevelopment. Most of the environmental centered around the discovery of a “tar-box” underground. A summary of the findings are as follows:

RAM Completion Report – RTN 3-28438


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On March 9 and 10, 2009, approximately 110 cubic yards of the tar/soil mixture was removed from the wood container and transported off-Site for disposal. A copy of the hazardous waste manifest was previously submitted to DEP.On March 11, 2009, approximately 1,500 gallons of the rainwater/groundwater mixture that accumulated within the wood tar container was pumped out and disposed off-Site. A copy of the hazardous waste manifest was previously submitted to DEP.On March 13, 2009, the wood tar container was excavated and removed from the Site.From March 13 to April 20, 2009, Wadleigh excavated and removed 454.64 cubic yards of PAH containing soil from the area of the former wood tar container and transported the material off-Site for disposal and recycling. Copies of the Bills of Lading (BOLs) were previously submitted to DEP.From July 7 to November 24, 2009, a joint MWRA/BWSC Sewer Use Discharge Permit was used to discharge 300,680 gallons of treated groundwater into the combined MWRA and BWSC sewerage system.On February 26, 2010, fourteen 55-gallon drums of sand and silt generated during cleaning of the frac tank, were picked up and transported off-Site for disposal by United Industrial Services of Meriden, Connecticut under a hazardous waste manifest.

A RAM (Release Abatement Measure) Completion Report was prepared by Wadleigh Environment, Inc. in March 2010. Wadleigh concluded that the RAM activities performed at the Site were conducted in compliance with the RAM plan submitted to the DEP for RTN 3-28438, and were successful in achieving a condition of No Significant Risk at the Site.

RAM Completion Report – RTN 3-21489

During the excavation of footing and foundations from November 1, 2008 to February 2009 and approximately 5,000 cubic yards of HFM was generated and disposed of at various disposal facilities.From November 19, 2008 to February 20, 2009, approximately 4,508.94 tons of HFM generated during activities was transported to and disposed of at Waste Management’s Taunton Landfill in Taunton, MA, to be reused as daily cover via Bill of Ladings certified by Donald H. Bruehl, LSP.From November 19 to December 19, 2008 approximately 2,764.48 tons of HFM generated during excavation activities was transported and disposed of at Waste Management’s Middleboro Landfill in Middleboro, MA, to be reused as daily cover via Bill of Landings certified by Donald H. Bruehl, LSP.From December 2-9, 2008, approximately 593.50 tons of HFM generated during exaction activities was transported and disposed of at Aggregate Recycling Corp’s (ARC) asphalt batching plant in Eliot, ME, to be recycled via Bill of Ladings certified by Donald H. Bruehl, LSP.

Copies of both RAM Reports and associated documents has been posted to the RCM website.

Summary

Full property documents including site plans, floor plans and approval letters, etc. have been posted to www.thesignalbuildingboston.com. If you do not have access to the website, please contact us to arrange access.



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AERIAL

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WEST FIRST STREET

WEST SECOND STREET

B STREET


EXTERIOR PHOTOS


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INTERIOR PHOTOS


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SAMPLE FLOOR PLANS


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UNIT #205STUDIO609 SF

UNIT #1111 BED, 1 BATH

1,021 SF


1,018 SF


SAMPLE FLOOR PLANS


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1,310 SF


1,571 SF


SAMPLE FLOOR PLANS


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1,393 SF

UNIT #G13 BED, 2 BATH

2,131 SF


SITE PLAN


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REGIONAL MAP

LOCATION & MARKETTHE SIGNAL BUILDING , BOSTON, MA

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Boston Inner Harbor

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In In

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LOCAL MAP


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SOWA/SOUTH END


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Boston Common

Boston HarborFINANCIAL

DISTRICT

Fort Point Channel


W BROADW

AY

FORT POINT


South Station


AERIAL


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Boston Harbor

BOSTON

EAST BOSTON


Logan Airport

Fort

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hann

el FORT POINT

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LOCATION & MARKET OVERVIEW


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Due to its exceptional quality of life, cultural offerings, diversified employment and well-developed infrastructure, Boston is considered one of the nation’s most desirable areas to live and work. Contrary to the national economy, the Boston market continues to expand in the areas of education and health services and professional, scientific and business services. In addition, Boston’s outstanding higher education institutions will continue to be drivers in the formation of new companies.

The Signal Building is located in the South Boston neighborhood of Boston, just minutes from downtown Boston and one-half mile from both I-90 (Mass Pike) and Interstate 93, the property offers outstanding access to Boston’s Financial District, Back Bay and Logan International Airport.

Economic Overview – Massachusetts

Despite the national economic downturn, the Massachusetts economy has weathered the recent turmoil quite well. As of March 2011, the Massachusetts unemployment rate was reported at 8.0%, which is below the national unemployment rate of 8.8%.

As a sign of the continuing economic recovery, since March 2010 the unemployment rate has dropped 0.7% with the Commonwealth adding 34,100 jobs. Over the last year the Commonwealth has since job growth in the following areas:

Leisure & Hospitality: 13,100 jobs - 4.3%Education & Health Services: 12,400 jobs – 1.9%Professional, Scientific & Business Services: 7,500 jobs - 1.6% Trade, Transportation & Utilities: 5,800 jobs – 1.1%Information: 1,800 jobs – 2.1%

In addition to the traditional economic drivers, eastern Massachusetts has a large, prestigious education sector. Colleges and universities employ 97,000 workers, account for three of the top ten employers and comprise the second largest industry in the Boston NECMA (New England County Metropolitan Area). Educational employment has had a stabilizing effect in the same manner as government employment.

The South Boston location offers residents an unparalleled commuting location to both downtown Boston and Cambridge. Boston’s highly educated workforce has

always offered a pool of local talent for the growth of companies and industries. Residents work with cutting-edge companies in high tech, financial services, bio-technology and manufacturing. The Signal Building is located in close proximity to the Boston Central Business District (CBD) office market, the largest office market, which consists 32 million square feet of office space. As of the first quarter 2011, the Boston CBD office submarket had an overall vacancy rate of 12.4%.

The Cambridge office and job market which encompasses 13.3 million square feet of office space and as of the first quarter 201 reported an overall vacancy of 10.2%.

Furthermore, The Signal Building is in close proximity to the MBTA Red Line which offers direct service to Cambridge. Cambridge serves as the nexus for the creation of new companies and employment growth. Cambridge and the associated research facilities receive substantial government funding, whether its NIH (National Institute of Health) grants, defense related grants or general grants associated with the universities. Cambridge is one of the major Biotechnology centers in the world and the research dollars from NIH alone amounted to $2.5 billion for Boston and Cambridge research universities and affiliated hospitals. This biotechnology and research presence will continue to be an important driver and economic engine for the area.


LOCATION & MARKET OVERVIEW


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Transportation & Access

Business and industry in Boston are served by well-coordinated intermodal transportation facilities. The strategic location within the densely populated Northeast provides significant regional market exposure. Boston is serviced by three main routes: I-90, (Mass Turnpike) from the west and I-93 and I-95 from the north and south. Other major highways include Routes 1, 3 and 128. Additional transportation options include Logan International Airport, Amtrak rail service and the MBTA commuter rail, subway and bus service throughout Greater Boston.

Boston is a member of the Massachusetts Bay Transit Authority (MBTA). The MBTA provides Red Line service to the neighborhood (Broadway stop) which in-turn connects to South Station, Park Street, Massachusetts General Hospital, Kendall Square, Central Square and Harvard Square.

Boston’s Logan International Airport, the region’s largest commercial airport is the nineteenth busiest airport in the country. Logan serves 55 scheduled and non-scheduled airlines, 8 major domestic carriers, 16 non-U.S. flag carriers and 13 regional and commuter airlines that provide service to practically every city in the Unites States and most countries across the globe.

Amtrak offers train service to Boston from New York, Washington D.C. and other points in the Northeast Corridor and is very popular with business travelers. The commuter rail line offers service from Boston’s suburbs into downtown’s North and South stations.

Demographics

As indicated on the following chart, The Signal Building has a strong resident base to draw upon with 780,760 people located within five miles.

Demographics - The Signal Building One-Mile Radius

Three-Mile Radius

Five-Mile Radius

Population2009 Estimated Total Population 38,869 329,467 780,769

2009 CensusTotal Population 34,800 316,947 765,248

Households

2009 Estimated Total Households 16,992 138,820 318,568

2009 Census Total Households 14,958 133,911 313,911

Income

2009 Estimated Average Household Income $71,073 $76,379 $75,851



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LOCATION & MARKET OVERVIEWRetail Amenities

Residents of The Signal Building enjoy the outstanding retail amenities in the neighborhood.

The Seaport District and Fort Point Channel neighborhoods have quickly become a true dining destinations with many high-end restaurants moving in to serve the needs of this bustling waterfront community. Dining in the Seaport and Fort Point Channel is highlighted by 606 Congress at the Renaissance Hotel, Morton’s Steakhouse, Barbra Lynch’s Menton & Sportello, B&G Oysters, Drink, Aura at the Seaport Hotel, LTK (Legal Test Kitchen), Salvatore’s and J. Pace & Sons, Anthony’s Pier 4, Strega Waterfront (opening this month) and Legal Sea Foods new concept now under construction at Liberty Wharf.

Retail/entertainment offerings in the area are highlighted by the Faneuil Hall Marketplace, which features more than 85 specialty shops, boutiques, bars and restaurants. The property is also conveniently located in close proximity to downtown Boston where residents may shop and dine at the Copley Place Mall, the Shops at Prudential Center, throughout the Back Bay and along trendy Newbury Street. Additionally, high-end retailer Louis Boston is now open at its new Fan Pier location with other retailers certainly to follow.

Academic Institutions

The Boston area is home to over 80 colleges and universities, and more than 250,000 students. University graduates and faculty have created the fast-growing businesses that characterize Boston’s economy.

The Boston area is unique in having the campuses of ten universities concentrated within a ten-mile radius of the city. The Massachusetts Institute of Technology, Harvard University, Boston College, Boston University, Brandeis University, Northeastern, Tufts University, Berklee College of Music and the University of Massachusetts are a regional community of over 500,000 people. The discoveries at these universities create industries, companies and thousands of jobs in the Boston economy. Furthermore, in order to tap into intellectual talent, International companies are locating major facilities in the area. These universities play a central role in stabilizing and renewing the region’s economy.

Recreation/Cultural Attractions

Residents can easily enjoy all that Boston has to offer. Boston is the region’s economic, commercial, cultural and social “hub”. This vibrant city is renowned for its cultural facilities, world-class educational institutions, champion sports franchises, as well as its American history. As such, over twelve million visitors come to Boston every year to take advantage of all it has to offer. Notable attractions include the Freedom Trail, Faneuil Hall Marketplace, Paul Revere’s House, the Boston Harbor Islands, Boston Common and Public Garden, the Emerald Necklace (1,100-acre chain of nine parks linked by parkways and waterways), Museum of Science, Children’s Museum and the Museum of Fine Arts to name a few. Popular shopping destinations include Newbury Street, Copley Place and the Prudential Center. The New England Patriots and Revolution and the Boston Red Sox; Celtics; Bruins are also immensely popular in Greater Boston.

Regionally, there are a large number of other activities within a few hours of the city – to the north, skiing; to the south, summer getaways on Cape Cod; to the west, the Berkshire Mountains; to the east, fishing and sailing along the Atlantic Coast.



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LOCATION & MARKET OVERVIEWThe Seaport Neighborhood Overview

Residents of The Signal Building enjoy excellent access to a multitude of employment, shopping, dining and entertainment offerings in the immediate neighborhood.

The Seaport District is home to more than 5.3 million square feet of office space with major employers including John Hancock, Fidelity Investments, AEW, JPMorgan Chase & Co., Gillette, as well as, numerous law firms, architects and other professional/financial services firms.

The Seaport District is quickly evolving from its industrial and maritime roots to a vibrant, diverse, mixed-use Boston neighborhood featuring office space housed in renovated historic brick and beam buildings and new high-rise towers, exciting new restaurants and retail establishments, stylish hotels, residential developments and state-of-

the-art convention facilities. In the last few years, public investment, quickly followed by private capital, has fueled a dramatic transformation of the area.

Additional development is planned, as the area’s unique character and strategic location continue to attract a wide array of developments. Planned or proposed developments include Fan Pier (500,000 square feet of commercial space – under construction), Boston Convention & Exhibition Center expansion (addition of a 400,000 square foot exhibit hall behind the main center, a 1,000 room hotel, a 5,000 seat auditorium, and a 65,000 square foot ballroom - proposed), Seaport Square (6.5 million square feet

of mixed-use development – in permitting), Waterside Place (69,000 square feet of grocery anchored retail, 235 residential units and 13,000 square feet of office space – in permitting), Liberty Wharf (20,000 square foot Legal Seafood’s high end concept, 22,000 square feet of additional retail space, 29,500 square feet of office space.

South Boston Neighborhood Overview

The Signal Building is located in the densely populated neighborhood of South Boston. South Boston is located just south of the Fort Point Channel and abuts the Dorchester Bay. South Boston has seen significant growth and redevelopment in the last five years. In the immediate neighborhood, there has been over five luxury condominium developments including Court Square Press, The Macallen Building and The Allelle, to name a few. Additionally, in 2007, Gillette (Proctor & Gamble) moved its world headquarters from the Prudential Center to its location on A Street, which is just blocks from The Signal Buildng.

South Boston has become one of the most popular neighborhoods for young professionals to live in. Residents are drawn to the location because of the close proximity to downtown and the local beaches; Castle Island and Carson Beach, while public transportation is extremely convenient to downtown. It is also important to note that the City of Boston is in the process of rezoning the West First Street Corridor, to spur additional development along West 1st and 2nd Streets. The proposed rezone would allow for significant development in the immediate area and offer additional services to residents.



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LOCATION & MARKET OVERVIEWGreater Boston Multi-Family Market

According to the research firm REIS, the Boston metropolitan multifamily market consists of nine submarkets and over 197,641 rental units. As of the fourth quarter 2011, REIS reported that the Boston metropolitan area had an overall vacancy rate of just 4.6% with an average “asking rent” of $1,742 per month.

Vacancy throughout the 197,000+/- unit Boston metropolitan apartment market decreased from 6.5% as first quarter 2010 to 4.6% by first quarter 2011 and experienced an increase in effective rental rates of 3.5% over the same period.

Properties in Boston and inside the Route 128 belt continue to lead the market with the strongest fundamentals. The urban infill markets are buoyed by the presence and growth of the Health & Education Service sectors, which experienced the highest employment growth over the past 12 months.

As a further testament to the strength of the Boston apartment market, Witten Advisors is projecting effective rent growth of 7.6% in 2011 and 9.6% in 2012, which puts Boston at the top of all 42 markets they track nationally. More can be learned at: www.wittenadvisors.com.

Central City/Back Bay/Beacon Hill Apartment Market

The Signal Building is located adjacent to the Central City/Back Bay/Beacon Hill apartment market of Boston as defined by REIS. According to REIS, as of the first quarter of 2011, the Central City/Back Bay/Beacon Hill market had a vacancy rate of only 3.9%. The market consists of a total of 22,323 units amongst all classes, and effective rents have increased by 2.7% since first quarter 2010 to $2,542 in the first quarter of 2011. REIS projects rental growth and vacancy stabilization over the next four years as the economy strengthens. The chart below presents the effective rents since 2002 and the projected rents through 2014.

Competitive Multi-family Market Information

To further understand how The Signal Building compares to other properties in the competitive multi-family market, we have surveyed five (5) properties totaling 1,401 units in Boston. This competitive set of properties is currently 96.0% occupied and shows an average studio rent of $2,333 ($4.17/SF), an average one-bedroom rent of $2,919 ($4.02/SF) and an average two-bedroom rent of $3,854 ($3.57/SF).

With the strengthening of the market, the strong location, level of finishes and amenity package offered at The Signal Building, the property is well-positioned to realize the potential gains fueled by a tight rental market.

The Rent Comparables Matrix on the following pages provides a summary comparison of those rental communities that compete with The Signal Building.

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Historical & Projected Effective Rents

Central City/Back Bay/Beacon Hill


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RENT COMPS MATRIX


Subject 1 2 3 4 5 Total / Averages

Property Address The Signal Building154 West Second Street,

Boston, MA

50 West Broadwaay, Boston, MA

Park Lane Seaport, 225 Northern Avenue,

Boston, MA

Archstone Boston Common

660 Washington Street, Boston, MA

Archstone Avenir,101 Canal Street,

Boston, MA

James Court Apartments, 45 East Newton Street,

Boston, MA

# of UnitsBuilt / RenovatedOccupancy

75201094.7%

139200995.0%

465200697.0%

420200692.9%

241200998.0%

1362006

100.0%

1,401

96.0%

Unit Style Studio Studio Studio Studio Studio Studio Studio

Low High Low High Low High Low High Low High Low High Min. Max. Avg.

RentSquare FeetAverage Rent / SF

$1,875527

$3.56

$1,875688

$2.73

$1,760561

$3.14

$2,000561

$3.57

$1,600491

$3.26

$2,000561

$3.57

$2,613550

$4.75

$3,920560

$7.00

$2,500546

$4.58

$2,600546

$4.76

$2,045518

$3.95

$2,045518

$3.95

$1,600491

$2.78

$3,920808

$7.00

$2,333566

$4.17

Unit Style 1 x 1 1 x 1 1 x 1 1 x 1 1 x 1 1 x 1 1 Bedrooms



$2,250700

$3.21

$3,0001,147$2.62

$2,150702

$3.06

$2,500744

$3.36

$2,100706

$2.97

$2,900764

$3.80

$2,756672

$4.10

$5,060745

$6.79

$3,600652

$5.52

$3,600842

$4.28

$2,195667

$3.95

$2,325775

$3.00

$2,100652

$2.97

$5,060842

$6.79

$2,919727

$4.02

Unit Style 2 x 2 2 x 2 2 x 2 2 x 2 2 x 2 2 x 2 2 Bedrooms



$3,2501,207$2.69

$4,2502,112$2.01

$2,6001,068$2.43

$3,5001,092$3.21

$2,6001.096$2.37

$4,1001,096$3.74

$4,000944

$4.24

$4,4001,140$3.86

$4,700924

$5.09

$6,4001,320$4.85

$2,9201,010$2.89

$3,3201,091$3.04

$2,600924

$2.37

$6,4001,320$5.09

$3,8541,078$3.57

Subject 1 2 3 4 5

Property Address The Signal Building154 West Second Street,

Boston, MA

50 West Broadwaay, Boston, MA

Park Lane Seaport, 225 Northern Avenue,

Boston, MA


660 Washington Street, Boston, MA

Archstone Avenir,101 Canal Street,

Boston, MA

James Court Apartments, 45 East Newton Street,

Boston, MA

Parking $250/month for a single space and $150/month for

a tandem space

$250/month for garage parking

$135/month for reverse$305/month for 24-hour

garage

$325/month for assigned garage parking

$400/month for assigned garage parking

$250/month for MTM for garage parking. $235/

month for 12 month lease

Concessions None None None None None None

Utilities Landlord pays for water and sewer. Tenant is

responsible for others.

Landlord pays for heat, water and sewer. Tenant is responsible for all others.

Landlord pays for heat, hot water and A/C. Tenant is responsible for all others

Landlord pays for heat, hot water and A/C. Tenant is responsible for all others.

Landlord pays for heat, hot water and A/C. Tenant is responsible for all others.

Landlord pays for heat, water, and sewer

Project Amenities Panoramic roof deck with views of Boston skyline and waterfront, the deck offers full bathroom and

kitchen, private roof decks, elevatored buildings, fitness center and garage parking.

Concierge services, 24-hr fitness facility, bicycle storage, underground

parking, private outdoor courtyard and community room equipped with WiFi

and flat screen TV.

24-hour concierge, two rooftop terraces, sports club, community lounge

with flat screen TV, conference room, dry cleaning, valet service,

direct access to the MBTA Silver Line and garage

parking.

Caliber Sports Club with indoor infinity pool, 24-hr concierge, direct access

garage parking, Click Cafe, screening room and resident lounge with flat

panel TV.

Caliber Sports Club, 24-hr concierge, rooftop sky

deck, ground floor retail and restaurants, garage parking and located at

the T.

24-hour concierge service, landscaped courtyard, fitness center, valet dry

cleaning & laundry, on-site laundry facilities and garage

parking.

Unit Amenities Italian kitchens with custom cabinets, stainless steel appliances, granite

countertops, marble bathrooms, hardwood floors, laundry in unit, central A/C, 15 foot ceilings (select units),

brick and beam exposures (select units) and private roof decks (select units).

Fully applianced kithcens with stainless steel appliances, granite

counter tops and high end cabinetry and washer/

dryer in unit.

Fully applianced kitchen with black on black

GE appliances, granite countertops, maple

cabinets, custom lighting and ceramic tile flooring, washer and dryer in unit, floor-to-ceiling windows,

wall-to-wall carpeting, central A/C and panoramic

views.

Contemporary kitchens with breakfast bars,

stainless steel appliances, island kitches, walk in

closets, in-unit washer and dryers, central A/C, walnut

hardwood flooring and private patios/balconies in

select units.

Fully applianced kitchens w/Bosch stainless steel

appliances, granite counters & breakfast bars, W/D in unit, hardwood

flooring, and loft-style units available.

Fully equipped kitchens with breakfast bar, walk-in closets, Central A/C, high

ceilings and large windows.


THEBUILDING

RENT COMPS MATRIX, CON’T



THEBUILDING

RENT COMPS MAP


Boston Inner Harbor

Reserved Ch

s River

L

In In

THEBUILDING

2

3

4

1

5

2

3

4

1

5

50 West Broadway

Park Lane Seaport


Archstone Avenir

James Court Apartments

Boston Housing Market

The following chart summarizes the median sales price for condominiums from 2001 through 2010. As this chart indicates, the median condominium sales price in Boston has increased by more than 49.2% since 2001. From 2001 to 2010, the Boston median condominium price increased at an average rate of 4.8%. The median price was $561,000 for a residential condominium as year end 2010.

According to H3MLS.com there are currently thirty-seven (37) condominiums being marketed for sale in the neighborhood of The Signal Building with similar finishes and amenities with an average asking price of $801,468 ($562/SF). There are also seventy-three (73) units within the same competitive set that have sold or are under agreement over the last twelve months with an average price of $574,078 ($511/SF) Additional condominium sales data is available on the following page.


THEBUILDING

BOSTON HOUSING MARKET

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Boston Median Housing Prices



THEBUILDING

CONDO COMPS


The Signal Building - Condo Comps • Previous 12 Months (As of 5-2-2011) • THE MACALLEN BUILDINGMLS # Community # Street Unit # SF Year Built Status List Price Sale Price $ / SF Sale Date Days on Market Condo Dues # of

Bedrooms# of

BathroomsGarage Parking

71050135 The Macallen Building 141 Dorchester Avenue 108 1,014 2006 SLD $489,000 $479,000 $472 5/14/2010 3 $581 1 1 1

71048347 The Macallen Building 141 Dorchester Avenue 704 969 2007 SLD $549,000 $535,000 $552 8/19/2010 60 $628 1 1 1

71050141 The Macallen Building 141 Dorchester Avenue 616 1,656 2007 SLD $889,000 $800,000 $483 4/12/2011 3631 $1,116 1 1 1



71093792 The Macallen Building 141 Dorchester Avenue 905 650 2007 SLD $479,000 $456,000 $702 10/8/2010 78 $574 1 1 1





71210865 The Macallen Building 141 Dorchester Avenue 904 969 2007 UAG $569,000 $587 0 $696 1 1 1

71050139 The Macallen Building 141 Dorchester Avenue 216 1,103 2006 ACT $524,000 $475 409 $600 1 1 1

71050230 The Macallen Building 141 Dorchester Avenue 711 1,864 2006 ACT $1,175,000 $630 409 $1,276 2 2 1



71156915 The Macallen Building 141 Dorchester Avenue 213 820 2006 ACT $469,900 $573 185 $521 1 1 1




71048787 The Macallen Building 141 Dorchester Avenue U301 1,850 2007 ACT $1,999,000 $648 411 $992 2 2 1


71052164 The Macallen Building 141 Dorchester Avenue 302 1,850 2007 ACT $1,155,000 $624 405 $990 2 2 1

71069562 The Macallen Building 141 Dorchester Avenue 610 2,132 2007 ACT $1,205,000 $565 375 $1,219 3 2 1




71047812 The Macallen Building 141 Dorchester Avenue U211 1,031 2007 ACT $519,000 $503 412 $607 1 1 1

Average 1,259 $708,007 $590,400 $553 $708


THEBUILDING

CONDO COMPS


The Signal Building - Condo Comps • Previous 12 Months (As of 5-2-2011) • COURT SQUARE PRESSMLS # Community # Street Unit # SF Year Built Status List Price Sale Price $ / SF Sale Date Days on Market Condo Dues # of Bedrooms # of Bathrooms Garage Parking

71026459 Court Square Press 9 West Broadway 519 690 1906 SLD $379,000 $337,500 $489 9/7/2010 90 $348 1 1 0


71055642 Court Square Press 9 West Broadway 522 1,322 1906 SLD $569,900 $560,000 $424 3/1/2011 285 $475 2 2 1







71183875 Court Square Press 9 West Broadway 612 2,224 1906 SLD $1,199,000 $1,112,500 $500 4/1/2011 0 $1,022 2 3 1

71179599 Court Square Press 9 West Broadway 307 1,410 1906 UAG $719,900 $511 77 $567 2 2 1

71188028 Court Square Press 9 West Broadway 608 1,371 1906 UAG $699,000 $510 1 $648 2 2 0

71182392 Court Square Press 9 West Broadway 207 1,496 1906 ACT $739,000 $494 96 $547 1 2 1

71186554 Court Square Press 9 West Broadway 609 1,309 1906 ACT $649,000 $496 82 $566 2 2 1

71179605 Court Square Press 9 West Broadway 209 862 1906 ACT $448,000 $520 106 $320 1 1 1

71197555 Court Square Press 9 West Broadway 613 1,713 1906 ACT $995,000 $581 54 $1,029 2 2 0



71212100 Court Square Press 9 West Broadway 618 2,700 1906 ACT $2,200,000 $815 26 $1,417 3 3 2

Average 1,228 $665,237 $502,250 $507 $551

The Signal Building - Condo Comps • Previous 12 Months (As of 5-2-2011) • THE LOFTS AT 36 A STREETMLS # Community # Street Unit # SF Year Built Status List Price Sale Price $ / SF Sale Date Days on Market Condo Dues # of Bedrooms # of Bathrooms Garage Parking

71086176 The Lofts at 36 A Street 36 A Street 5D 1,370 2007 SLD $669,000 $635,000 $464 8/30/2010 61 $333 2 2 1

71044419 The Lofts at 36 A Street 36 A Street 5B 1,002 2007 SLD $459,000 $445,000 $444 8/3/2010 114 $254 1 1 1

71137492 The Lofts at 36 A Street 36 A Street 3C 1,370 2006 SLD $639,000 $610,000 $445 12/1/2010 39 $333 2 2 1

71222010 The Lofts at 36 A Street 36 A Street 4E 1,140 2006 ACT $589,000 $517 6 $275 2 1 1

Average 1,221 $589,000 $563,333 $467 $299

The Signal Building - Condo Comps • Previous 12 Months (As of 5-2-2011) • FP3MLS # Community # Street Unit # SF Year Built Status List Price Sale Price $ / SF Sale Date Days on Market Condo Dues # of Bedrooms # of Bathrooms Garage Parking

71174540 FP3 346 Congress Street 305 1,019 2008 SLD $499,000 $485,000 $476 4/22/2011 81 $618 1 2 0

71172241 FP3 346 Congress Street 206 586 2008 SLD $299,000 $272,500 $465 12/21/2010 0 $341 0 1 0










71101315 FP3 346 Congress Street 613 1,159 2008 SLD $915,000 $915,000 $789 7/29/2010 0 $1,036 2 2 0









71188709 FP3 346 Congress Street 508 681 2008 SLD $385,000 385,000 $565 2/25/2011 0 $500 0 1 0



71204291 FP3 346 Congress Street PH2 1,808 2008 SLD $1,360,000 $1,360,000 $752 4/8/2011 0 $1,718 2 2 0

71204299 FP3 346 Congress Street PH4 2,315 2008 SLD $1,740,000 $1,740,000 $752 4/8/2011 0 $2,177 2 2 0


71044704 FP3 346 Congress Street 401 1,804 2008 UAG $890,000 $890,000 $493 394 $1,129 3 2 0

71212530 FP3 346 Congress Street 515 1.398 2008 UAG $710,000 $710,000 $508 2 $958 2 2 0

70977313 FP3 346 Congress Street PH3 2,178 2008 ACT $1,850,000 $849 591 $2,077 2 2 0

71069443 FP3 346 Congress Street 612 789 2008 ACT $589,000 $747 375 $659 1 1 0

71138706 FP3 346 Congress Street 410 660 2008 ACT $389,000 $589 173 $360 0 2 0

71184165 FP3 346 Congress Street 418 1,153 2008 ACT $619,000 $537 90 $725 2 2 0

Average 992 $601,030 $529,135 $580 $712


THEBUILDING

CONDO COMPS



THEBUILDING

CONDO COMPS


The Signal Building - Condo Comps • Previous 12 Months (As of 5-2-2011) • CHANNEL CENTERMLS # Community # Street Unit # SF Year Built Status List Price Sale Price $ / SF Sale Date Days on Market Condo Dues # of Bedrooms # of Bathrooms Garage Parking

71011939 Channel Center 25 Channel Center PH104 2,220 2003 SLD $1,649,000 $1,500,000 $676 11/9/2010 293 $1,367 3 3 2

71137156 Channel Center 25 Channel Center 805 1,768 2003 SLD $869,000 $800,000 $452 12/10/2010 17 $834 2 2 1





71168124 Channel Center 25 Channel Center 611 1,930 2004 SLD $849,000 $865,000 $448 1/21/2-11 7 $762 2 2 1

71182038 Channel Center 25 Channel Center 802 1,838 2003 UAG $879,000 $478 6 $863 2 2 1

71147477 Channel Center 25 Channel Center 201 1,398 2004 UAG $609,000 $436 194 $527 1 2 1

70989862 Channel Center 25 Channel Center PH103 1,528 2004 ACT $995,000 $651 541 $883 2 2 1

71187533 Channel Center 25 Channel Center 403 2,100 2004 ACT $835,000 $398 80 $854 2 2 1


71215236 Channel Center 25 Channel Center PH203 1,651 2004 ACT $945,000 $572 20 $1,079 2 2 1




Average $856,500 $484 $809

The Signal Building - Condo Comps • Previous 12 Months (As of 5-2-2011) • ALLELEMLS # Community # Street Unit # SF Year Built Status List Price Sale Price $ / SF Sale Date Days on Market Condo Dues # of Bedrooms # of Bathrooms Garage Parking

71206912 Allele 150 Dorchester Avenue 508 1,256 2008 ACT $599,000 $477 34 $409 2 1 1

70874850 Allele 150 Dorchester Avenue 503 1,014 2008 UAG $459,000 $453 726 $343 1 1 1

71181035 Allele 150 Dorchester Avenue 107 1,116 2007 UAG $419,000 $375 73 $380 1 1 1

70783153 Allele 150 Dorchester Avenue 501 2,075 2007 SLD $899,000 $862,500 $416 7/6/2010 602 $701 2 2 0


70874811 Allele 150 Dorchester Avenue 602 998 2008 SLD $499,000 $480,000 $481 4/27/2011 744 $337 1 1 1






Average $547,182 $528,313 $437 $401

FINANCIAL ANALYSIS


9 SUMMIT AVENUE9 SUMMIT AVENUE

FINANCIAL ANALYSISTHE SIGNAL BUILDING , BOSTON, MA

THEBUILDING

The Signal Building • Unit Mix (As of 4-25-2011)

Unit Type # of Units

Vacant % Vacant SF Actual Rent

$/SF Market Rent

$/SF Loss to Lease

Studio - AFF 3 0 0.0% 642 $1,137 $1.77 $1,194 $1.86 -5.00%

Studio 3 0 0.0% 624 $1,783 $2.86 $1,875 $3.00 -5.14%

1 Bed, 1 Bath - AFF 5 4 80.0% 961 $1,327 $1.38 $1,393 $1.45 -5.00%

1 Bed, 1 Bath 38 0 0.0% 940 $2,487 $2.64 $2,635 $2.80 -5.96%

2 Bed, 2 Bath - AFF 1 0 0.0% 1,314 $1,517 $1.15 $1,593 $1.21 -5.00%

2 Bed, 2 Bath 24 0 0.0% 1,533 $3,436 $2.24 $3,614 $2.36 -5.16%

3 Bed, 2 Bath 1 0 0.0% 2,131 $4,000 $1.88 $4,150 $1.95 -3.75%

Total 75 4 5.3% 1,128 $2,734 $2.34 $2,784 $2.47 -5.50%

Staffing / Personnel

Position Salary / Cost

Property Manager (Part Time) $37,500

Maintenance Tech $45,000

Total Base Salaries $82,500

Benefits / Bonuses

Total Benefits / Bonuses / Discounts $24,750

Total Benefits $24,750

Total Payroll $107,250

General InformationThe financial projections presented in the following pages are based on a combination of historical operations at the property and market-based assumptions.

Unit Count: 75 units

Income InformationMarket Rents: The following schedule highlights the current In-Place rents and the

Market rents for The Signal Building.

Rent Growth: Year 1: 0.0% - See Market RentsYear 2+: 5.0%

Vacancy Rate: As of April 25th, the property was 94.7% occupied. We have assumed a 5.0% vacancy throughout the analysis.

Parking Income: We have assumed the remaining 16 single garage spaces are leased for $250 per month and the last tandem space is leased for $150/month.

Other Income: We have assumed $450/unit for Other Income. This will include cable revenue, private deck rentals, pet fees, application fees, etc.

Concessions: We have assumed that there will be 50% turnover at the property and of those units that turnover, 25% will have a one-month concession. We have assumed that all concessions will burn-off by Year 2. Currently the property is not offering any concessions.

Expense InformationFor the expense pro-forma, we have relied on the trailing operating statements as well as ex-penses estimated based on expense comparables and typical underwriting parameters used in the marketplace. The chart on the following pages highlight the historical operating state-ment as well as our pro-forma.

Payroll: We have based our pro-forma Payroll expense on market based assumptions. We have assumed that the property is staffed with one (1) part-time Property Manager and one (1) full-time Maintenance Tech. The following chart details our assumptions.

Utilities: We have based our pro-forma Utilities expense on the trailing expenses at the property along with market based assumptions. The following details our assumptions:

Electricity: $24,000 ($320/unit)Gas: $10,800 ($144/unit)Water & Sewer: $19,800 ($264/unit)Recycling Removal: $1,080 ($14/unit)

Repairs & Maintenance

We have based our pro-forma Repairs & Maintenance expense on the current operations and market based assumptions. We have assumed the following:

Year 1: $500/unitYear 2: $600/unitYears 3+: $750/unit

Management Fee: 2.5 % of effective gross income

Real Estate Taxes: The following chart highlights the FY 2011 assessments and taxes for The Signal Building:

As presented in the above chart, the property is not currently assessed as a stabilized apartment building. For our analysis, we have assumed that our stabilized assessment will be $168,750 ($2,250/unit). The following chart provides tax comps for similar apartment communities throughout Boston.


FINANCIAL ANALYSIS



THEBUILDING

Apartment Tax Comprarables • FY 2011 Assessments

Property Name Tax Address Parcel ID # of Units

Assess-ment

$/Unit Taxes $/Unit

James Court Apartments 45 East Newton St.

801391024 196 $34,655,000 $176,811 $443,237 $2,261

Mezzo Design Lofts 48 Brighton St. 201912010 146 $24,553,500 $168,175 $314,039 $2,151

40 Boylston St. 38 Boylston St. 304894000 48 $6,198,021 $129,125 $79,273 $1,652

Navy Yard 33 Sixth Street 203512200 44 $9,606,000 $218,318 $122,861 $2,792

East Berkeley Lofts 160 East Berkeley Street

306266000 38 $7,366,000 $193,842 $94,211 $2,479

Total/Average 472 $2,267

FY 2011 Assessments

Address Parcel ID Assessment Taxes

154 West Second Street 601267000 $2,351,703 $30,078



Total/Average $4,710,000 $60,2411

FY 2011 Taxes: $60,241 FY 2011 Rate: $12.79

Tenant Improvements:

We have assumed $200/unit for Tenant Improvement expense or turnover expense.

Leasing Commissions:

We have assumed that there will be 50% turnover at the property and of those units that turnover, 25% will have a one-month leasing commission. We have assumed that all concessions will burn-off by Year 2. Currently the property is not offering any concessions.

Capital ReservesGiven the current condition of the improvements and age of the property, we expect minimal capital issues to arise and that replacement requirements will be low in the next few years.

Replacement Reserves: $200/unit

SummaryThe spreadsheet on the following page highlights the historical operating statements and BRA Pro-Forma.

The Signal Building • Operating Statements

Annualized $/Unit BRA Pro-Forma $/Unit Comments

REVENUES

Rental Income 866,844 11,558 2,505,254 33,403

Loss-to-Lease 0 0 (43,533) (580)

Concessions 0 0 (26,096) (348) Assumed 50% turnover and 25% of those units have a one-month concession. Burn-Off by YR 2

Parking Income 0 0 49,800 664 16 single spaces at $250/month and 1 tandem space at $150/month.

TOTAL RENTAL INCOME 866,844 11,558 2,485,425 33,139

Other Income 0 0 33,750 450 Assumed $450/unit

TOTAL REVENUES 866,844 11,558 2,519,175 33,589

Vacancy 0 0 (125,959) (1,679) 5.0% of Total Income

Effective Gross Income 866,844 11,558 2,393,216 31,910

Expenses

Payroll

Wages: Superintendent 21,060 281

Property Mgr 31,200 416

TOTAL PAYROLL 52,260 697 107,250 1,430 See payroll schedule.

Utilities

Electricity 20,404 272 24,000 320 Assumed $2,000/month

Gas 3,938 53 10,800 144 Assumed $900/month

Water & Sewer 13,517 180 19,800 264 Assumed $1,650/month

Recycling Removal 744 10 1,080 14 Assumed $90/month

Trash Removal 4,376 58 5,400 72 Assumed $450/month

TOTAL UTILITIES 42,978 573 61,080 814

Repairs & Maintenance

Janitorial Contract 14,400 192

Janitorial Supplies 1,440 19

Exterminating 0 0

Security Contract/Systems 0 0

Fire Alarm Systems 480 6

Snow Removal 3,876 52

General R&M Supplies 0 0

OPERATING STATEMENTS



CONTINUES ON NEXT PAGE

THEBUILDING




THEBUILDING

The Signal Building • Operating Statements, continued.

Annualized $/Unit BRA Pro-Forma $/Unit Comments

Plumbing Contract 0 0

Electrical Contract 0 0

HVAC Contract 0 0

Elevator Contract 0 0

Window Cleaning 0 0

Painting & Decorating 0 0

Roof R&M 0 0

Building R&M Interior 0 0

Building R&M Exterior 0 0

Sprinkler Systems 0 0

Interior Landscaping 0 0

Sign Expense 0 0

TOTAL REPAIRS & MAINTENANCE 20,196 269 37,500 500 Assumed $500/unit for YR 1, $600/unit for YR 2 and $750/unit for YRS 3+

Other Expenses

Telephone 927 12 955 13

Internet & Cable TV 1,614 22 2,200 29 Assumed $2,200

Management Fee 26,005 347 59,830 798 2.5% of EGI

Insurance 22,841 300 23,155 309

TOTAL OTHER EXPENSES 51,026 680 86,140 1,149

Subtotal Expenses 166,461 2,219 291,970 3,893

R.E. Taxes 39,067 521 60,241 803 Based on FY 2011 assessment. Assumed taxes increase to $2,250/unit in YR 2

Total 205,528 2,740 352,211 4,696

Non-Reimbursable

License & Fees 0 0 1,000 13 Assumed $1,000

Office Supplies 394 5 406 5

Professional Fees 0 0 5,000 67 Assumed $5,000

Bank Charge 0 0 500 7 Assumed $500

Audit fees 0 0 2,500 33 Assumed $2,500

Fire Alarm Systems 0 0 980 13 $40/month and annual systems

Tenant Improvements 0 0 15,000 200 Assumed $200/unit for turnover

Leasing Commision 0 0 26,096 348 Assumed 50% turnover and 25% of those units have a one-month broker fee

TOTAL NON-REIMBURASABLE 394 5 51,482 686

Total Operating Expenses 205,922 2,746 403,693 5,383

NET OPERATING INCOME 660,922 8,812 1,989,523 26,527

CASH FLOW



THEBUILDING

Cash Flow Projection • The Signal Building

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

INCOME• Potential Market Rent (Average Monthly Rent)• Loss to Lease

$33,403

($560)

$2,505,254$2,784

($43,533)

$2,630,516$2,923

($39,458)

$2,762,043$3,069

($41,431)

$2,900,144$3,222

($43,502)

$3,045,152$3,384

($45,677)

$3,197,409$3,553

($79,935)

$3,357,280$3,730

($83,932)

$3,525,144$3,917

($88,129)

Gross Potential Rental Income• Concessions Parking Income Other Income

$32,823($348)

$664$450

$2,641,721($26,096)

$49,800$33,750

$2,591,059$0

$51,294$34,763

$2,762,042$0

$52,833$35,805

$2,856,642$0

$54,418$36,880

$2,999,474$0

$56,050$37,986

$3,117,474$0

$57,732$39,126

$3,273,348$0

$59,464$40,299

$3,437,015$0

$61,248$41,508

Other Income $766 $57,454 $86,507 $88,638 $91,297 $94,036 $96,857 $99,763 $102,756

Total Potential Gross Income • General VacancyTotal Rental Losses

$33,589($1,679)

($1,679)

$2,519,175($125,959)

($125,959)

$2,677,115($133,856)

($133,856)

$2,809,250($140,462)

($140,462)

$2,947,940($147,397)

($147,397)

$3,093,511($154,676)

($154,676)

$3,214,331($160,717)

($160,717)

$3,373,111($168,656)

($168,656)

$3,539,771($176,989)

($176,989)

EFFECTIVE GROSS INCOMEEGI per Unit

$31,910 $2,393,216 $2,543,529$33,910

$2,668,787$35,584

$2,800,543$37,341

$2,938,935$39,184

$3,053,615$40,715

$3,204,455$42,726

$3,362,782$44,837

EXPENSES • Payroll • Electricity • Gas • Water & Sewer • Recycling Removal • Trash Removal • Repairs & Maintenance • Telephone • Internet & Cable TV • Management Fee • Insurance • R.E. Taxes • Non-ReimbursableTOTAL EXPENSESTotal Expenses per Unit

$1,430$320$144$264$14$72

$500$13$29

$798$309$803$686

$5,383

$107,250$24,000$10,800$19,800$1,080$5,400

$37,500$955

$2,200$59,830$23,155$60,241$51,482

$403,693

$110,468$24,720$11,124$20,394$1,112$5,562

$45,000$983

$2,266$63,581$23,850

$168,750$53,027

$530,837$7,078

$113,782$25,462$11,458$21,006$1,146$5,726

$56,250$1,013$2,334

$66,720$24,565

$173,813$54,617

$557,893$7,439

$117,195$26,225$11,801$21,636$1,180$5,901

$57,938 $1,043$2,404

$70,014$25,302

$179,027$56,262

$575,922$7,679

$120,711$27,012$12,155$22,285$1,216$6,078

$59,676$1,074$2,476

$73,471$26,061

$184,398$57,944

$594,556$7,927

$124,332$27,823$12,520$22,954$1,252$6,260

$61,466$1,107$2,550

$76,340$26,843

$189,930$59,682

$613,058$8,174

$128,062$28,657$12,896$23,642$1,290$6,448

$63,310$1,140$2,627

$80,111$27,648

$195,628$61,472

$632,931$8,439

$131,904$29,517$13,283$24,352$1,328$6,641

$65,209$1,174$2,706

$84,070$28,478

$201,496$63,316

$653,474$8,713

NET OPERATING INCOMENOI per Unit

$26,527 $1,989,523 $2,012,423$26,832

$2,110,895$28,145

$2,224,621$29,662

$2,344,279$31,257

$2,400,556$32,541

$2,571,524$34,287

$2,709,309$36,124

REPLACEMENT RESERVES • Replacement ReservesTOTAL REPLACEMENT RESERVESTotal Capital Expenditures per Unit

$200$200

$15,000$15,000

$15,450$15,450

$206

$15,914$15,914

$212

$16,391$16,391

$219

$16,883$16,883

$225

$17,389$17,389

$232

$17,911$17,911

$238

$18,448$18,448

$246

CASH FLOW BEFORE DEBT SERVICECash Flow per Unit

$26,327 $1,974,523 $1,996,973$26,626

$2,094,981$28,933

$2,208,230$29,443

$2,327,396$31,032

$2,423,167$32,309

$2,553,614$34,048

$2,690,861$35,878




DISCLOSURES

Christopher D. Sower Managing Director & [email protected]

Jason S. Weissman Founder & [email protected]

The information furnished in the Boston Realty Advisors (“BRA”) Offering Memorandum (“OM”) is highly confidential of nature and has privileged content. It has been furnished solely to the purchaser for the purposes of evaluating the potential acquisition of The Signal Building, 154 W Second Street, in Boston, Massachusetts.

The OM should not be distributed or made available to persons who have not executed in writing or completed our on-line confidentially agreement. The OM is the property of BRA and shall not be reproduced or distributed without the prior written consent of BRA.

The OM is subject to prior replacement, errors, omissions, changes or withdrawal WITHOUT notice. BRA will not be held responsible for any errors or omissions. Purchasers should evalu-ate the opportunity with their own assumptions, underwriting and building inspections. Purchasers should rely upon their own investigation, evaluation, judgment as to the feasibility of a purchase of the subject properties. BRA makes no claims of value and is not an appraiser. Purchasers should not rely on forward making predictions and/or the accuracy of market comps and/or market data provided.

BRA and Owner make no representation or warranty as to the accuracy or completeness of the information provided herein. Any prospective purchaser will rely on their own independent evaluation and underwriting pertaining to the acquisition of the properties. Prospective purchasers should make their own projections, assumptions and conclusions regarding the subject properties. Purchasers should conduct their own due diligence, including environmental and engineering inspections. Purchasers should determine the condition of the property and the potential existence of hazardous material used in the construction or on-going maintenance of the properties.

The OM is the property of BRA. The OM shall not be used by third parties, unless they are approved by BRA. By accepting the OM, the purchaser agrees to immediately return the OM to BRA upon request. The purchaser agrees not to contact the property tenants directly or indirectly, without prior written notice.

Cooperating brokers who are participating in the sales process are not representing the Owner. Cooperating brokers shall not advertise the property for sale in print, on-line or with mass email distribution.

CONTACT

THEBUILDING

BostonCommon

BostonHarborFINANCIAL

DISTRICT

Fort Point Channel


WBROADW

AY

FORT POINT

Boston FederalCourthouse

South Station

WWW.BRADVISORS.COM745 Boylston Street • Boston, MA 02116t: 617.375.7900 • f: 617.536.9566

Christopher D. Sower Managing Director & [email protected]

Jason S. Weissman Founder & [email protected]