1. Penn Commons
An Integrated, Complete Community on DC’s
Iconic Monumental Boulevard

2. Subject
Property
National Mall and
Monumental Landmarks
Verizon Center/7th Street
Entertainment Corridor
Hines City Center
(Under Construction)
Federal Triangle/Trump’s Post
Office Hotel (Planned)
Union
Station
Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
[Site Location and Surrounding Uses]

3. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
0
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Space Scheduled to be Available (Million SF)
OFFICEHOTEL
MULTIFAMILY RETAIL
Class A Ground-Up Office
is rare in downtown
DC, especially east of the
White House
The nearest grocery
store serving the
community is a 22
minute walk away
Emerging micro-unit
concept highly desired
by young professionals
Demand for hotel
space on the National
Mall remains strong
200
250
300
350
2010 2011 2012 2013 2014 2015
Average Daily Rate (Historical and Projected)
4%
5%
5%
6%
6%
7%
7%
8%
8%
9%
9%
Vacancy in Downtown DC
0
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4000
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6000
7000
8000
2011 2012 2013 2014 2015 2016
Change in Supply vs. Change in Demand

4. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
Link Downtown with the National Mall
Create a Vibrant Mixed Use
Development, Particularly Supplying
Additional Housing in the Downtown DC
Area
Enhance Public Space and Pedestrian
Walkability by Reducing Block Scale
Construct D Street, the Paper Street
Running East to West
Provide a Commemorative Public Space
[Master Plan Recommendations]

5. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
[Proposal]
Residential
Multifamily
(Including
Micro-Units)
Signature
Office Space
Hotel in
Prime DC
Location

6. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
[Project Connectivity]
Retail
Connections
Programmed Public Space
Connections

7. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
Northern Anchor – Grocery
Store Draws Locals
Southern Anchor – Hoover
Tower Draws Tourists
D Street Pedestrian Street
Archway Design Allows 160
Foot Height
Public Space Allows
for Seasonal Events
Capital Bikeshare Station
Near Metro
Use of Crowdsourcing
for Small Retail
[Big Ideas]

8. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
Micro-Units
135,108 Sq Ft
359 Units
328 Market
31 Affordable Units
Multifamily
699,676 Sq Ft
879 Units
805Market
74 Affordable Units
Hotel
214,291 Sq Ft
225 Keys
20,495 Sq Ft Meeting
Space
Office
672,937 Sq Ft
Retail
147,885 Sq Ft
1,796,841 Total Sq Ft
[Stacking Plan]

9. [Entitlements Strategy]
Existing Zoning Proposed Zoning
C-4/DD D-6-B-1
10.0 FAR (Min 2.0
FAR Residential)
8.5 Nonresidential
FAR; No Cap on
Residential
10% Affordable
Housing Set-Aside
8% Affordable
Housing Set-Aside
160 ft/110 ft Heights 160 ft/110 ft Heights
Parking:
1 per 4 Resi DUs
1 per 1,800 Office sf
1 per 8 Hotel Keys
1 per 3,000 Retail sf
(25% Reduction Due
to Metro Proximity)
No Minimum
Parking
Requirements
Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
Strategy: Seek entitlements just
before FBI vacates space.
Proposed DC Zoning
Regulations should be adopted
and will provide beneficial
requirements (No
parking, higher FAR, lower set-
aside)

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[Project Schedule]
Equity
Raise
Buy
Lease Existing Building to FBI
Begin Architecture and Engineering Feasibility
Secure
Debt
Lease Office, Retail, Residential; Secure Hotel Flag and Operator, Crowdsourcing
Demolition and Construction
Open and Stable
Sale
Entitlements
Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion

11. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
1. Team 26 will serve as developer and will provide 10 percent of the
equity
2. Partner with a sovereign wealth fund or pension fund to provide the
remaining 90 percent of the equity
3. Together, we will seek debt financing commitment of 65percent of
total project costs at a 5.5 percent interest rate
[Deal Structure]

12. [Development Costs]
Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion

13. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
Project Cash Flowlow and Sensitivity Analysis
[Cash Flow]
Summary of Project Cash flow
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Acquisition Price -$110,000,000
Development Cost (Less Rent) -$40,619,644 -$17,450,447 -$33,117,411 -$148,836,162 -$274,171,877 -$141,002,680
Building 1 $2,020,294 $5,782,963 $5,931,758 $6,084,401
Building 2 -$4,246,515 $5,789,818 $11,979,182 $12,412,309
Building 3 -$14,175,231 $11,354,178 $17,031,035 $20,128,966
Building 4 $1,632,259 $19,842,620 $24,377,859 $24,996,684
Building 4 Hotel $11,085,868 $11,929,736 $12,399,268 $13,175,747
Reversion (less cost of sale) $1,280,263,964
NCF -$150,619,644 -$17,450,447 -$33,117,411 -$148,836,162 -$274,171,877 -$141,002,680 -$3,683,325 $54,699,315 $71,719,102 $1,357,062,070
NPV $697,460,960
IRR 11.6%
Owner Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Acquisition Price -$110,000,000
Development Cost (Less Rent) -$40,619,644 -$17,450,447 -$33,117,411 -$72,984,375 $0 $0
Building 1 $2,020,294 $5,782,963 $5,931,758 $6,084,401
Building 2 -$4,246,515 $5,789,818 $11,979,182 $12,412,309
Building 3 -$14,175,231 $11,354,178 $17,031,035 $20,128,966
Building 4 $1,632,259 $19,842,620 $24,377,859 $24,996,684
Building 4 Hotel $11,085,868 $11,929,736 $12,399,268 $13,175,747
Debt Service -$29,848,493 -$29,848,493 -$29,848,493 -$29,848,493
Mortgage Repayment -$519,104,233
Reversion $1,280,263,964
NCF -$150,619,644 -$17,450,447 -$33,117,411 -$72,984,375 $0 $0 -$33,531,819 $24,850,821 $41,870,609 $808,109,343
NPV $555,460,257
IRR 15.0%

14. Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion
[Returns and Waterfall]

15. Penn Commons
An Integrated, Complete Community on DC’s
Iconic Monumental Boulevard
Introduction Site Context Project Overview Financing Strategy Return Analysis Conclusion