SIXTEENTH ELEGANCE SOPHISTICATION LOCATION

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1 ELEGANCE SOPHSTCATON LOCATON

2 ELEGANCE, SOPHSTCATON, LOCATON Delivering in 208 with approximately 7,000 square feet of office condo space available, 6th Street will offer your business a prime location with superior amenities With an outstanding Walk Score of 99 and Rider Paradise score of 00, this location is a commuter s delight from riding the Metro to using the bus system and more Amenities also frame this location in abundance to provide any and every option for lunch, dinner, errands and anything the day may present This unique boutique office space will be the talk of the town and sought by all - your chance to own a piece of downtown Washington, DC

3 AT A GLANCE: 7,003 SQUARE FEET AVALABLE FLOORS -4 4-STAR OFFCE CONDOS 4,669 SF TYPCAL FLOOR 9 FNSHED CELNG HEGHTS FEBRUARY 208 DELVERY COMPLETED WTH OFFCE MPROVEMENTS NDOOR/OUTDOOR ROOFTOP TERRACE OWNER/DEVELOPER: JONT VENTURE LED BY ELLSDALE & RED MULTFAMLY GENERAL CONTRACTOR: ELLSDALE CONSTRUCTON

4 6TH STACKNG PLAN R PRVATE/SHARED ROOFDECK 8 RESDENTAL 7 RESDENTAL 6 RESDENTAL 5 RESDENTAL 4 OFFCE: 4,738 SF 3 OFFCE: 4,669 SF 2 OFFCE: 4,656 SF OFFCE: 2,949 SF BULDNG LOBBY B RESDENTAL

5 Ma ssa NEGHBORHOOD AMENTES ue chu sett sa ven ven nd A sla de Rho ue Neighboring Amenities Scott Circle 23 ssa 6th Street, NW Street 4 H Street Lafayette Square 3th Street 4th Street 6 Franklin Square McPherson Square n Ave G Street 5th Street 7th Street The White House 5 2 Ne G Street 3 ue Ave n ork wy McPherson Square ue F Street 6 ue 6th Street e 8th Street en u Farragut7 Square 0 22 K Street 5 nt A ven Av Farragut North 2 nia 4 8 Ver mo t ticu L Street 8 lva Farragut West nsy 2 Thomas Circle 5 5 Pen th Street n ec 3 Street sa ven 25 Con 2 sett ue 4 0 M Street 20 9th Street chu 7th Street 22 Ma F Street E Street HOTELS The St Regis Hotel Capital Hilton Hotel Hotel Sofitel Washington, DC Hay Adams Hotel Mayflower Renaissance Hotel Hamilton Crowne Plaza Hotel Marriot Residence Hotel Westin Hotel The Madison Hotel The Jefferson Hotel Courtyard by Marriot Washington Plaza Hotel Hilton Garden nn W Hotel Worldwide The Willard Hotel JW Marriott Hyatt Place RESTAURANTS Georgia Brown s Siroc Rural Society BLT Steak Blackfinns American Saloon The Bombay Club McCormick & Schmick s Seafood Equinox The Oval Room Cafe Soleil Kellari Taverna Taberna del Alabardero Morton s The Steakhouse Plume PJ Clarkes Lincoln Potenza Pennsylvania 6 Old Ebbit Daily Grill Boqueria Teddy & The Bully Bar The Palm Mirabelle Le DeSales 5

6 EXTEROR & LOBBY 6

7 ROOFTOP TERRACE 7

8 ROOFTOP TERRACE PLAN 8

9 FRST FLOOR PLAN 4' s i 4' o a o 92' s t i 24 -o, s -o REAR YARD MEAS RED TO C?HERLNE O AUY i ii 0 VAN, F ACE CF ' BULDNG ABOVE, , - l - L \ ) 'b LGHT(" b, El '\ Cl L t- J 9-o,,3-0 t L 'b 2 b, PROPERl v LNE 'b b, 3, Cl Cl lj,, 0, - - LGHT WELL r " i- ', C8J -"'- J 7' o , - - 'be Cl!, - -- Ji - Cl Cl \ \-,-J \ \ r!,_ i,j,,, 2s -s l '" i- _ 0 ao, 0 'b U"J FRST FLOOR PLAN /8" -'-0" N 9

10 SECOND FLOOR PLAN r 00 s t r a a,-j PRVATE TERRACE a a, U"J a lj - - J -,, a,, LGHT WELL,, - _, r r 2s -s " ' L SECOND FLOOR PLAN /8" -'-0" N 0

11 THRD FLOOR PLAN 4' s r l lqe J\_ \ D %, 00 s cg] (- D "" v PRVATE TERRACE D a, D lj " 0 - LGHT WELL 2s -s - -,, J r "" "'", v / ) THRD FLOOR PLAN /8" -'-0"

12 FOURTH FLOOR PLAN 4' s r l lqe J\_ \ %, 00 s cg] (-,_ r ) r- D D J!L PRVATE TERRACE D a, "' 0 D lj L" 0 - LGHT WELL 2s -s - -,, J r L, - -o C' - 0 i- i- FOURTH FLOOR PLAN /8" -'-0" 2

13 SAMPLE TEST FT: FLOORS 2-4 3

14 SAMPLE TEST FT: FLOORS 2-4 4

15 NVESTMENT CONSDERATONS FOR ASSOCATONS AND NON-PROFTS RELATNG TO OWNNG THER OFFCE SPACE Ownership is available to associations and non-profits for space needs as small as 3,000 square feet by purchasing office condominiums Return on nitial Cash nvestment: The Key to Understanding the Value for an Association to Own its Office Space t takes vision to even consider owning versus leasing, and for good reasons that need to be examined Concerns Related to Buying Office Space: They pertain primarily to speculative investment commercial office space and not to the organization that is an owner and the primary occupant - Vacancy There is none if the association is using the office space to house its own and/or related organizations staff - Financing The three concerns for commercial real estate are loan to value ratios, balloon payments, and rates - Loan To Value Ratios Commercial buyers typically need to post 30% to 50% equity; not so with associations There is the potential for credit worthy 50(c)(3) organizations to finance up to 00% of the purchase price plus their furniture, fixtures, and equipment We run our assumptions on a 0% down payment/equity investment - Balloon Payments Most investment commercial loans are structured with time horizons of 5 to 7 years and many are interest only Associations can secure amortizing financing for up to 25 or 30 years, with fixed rates possible for the full term - Rates Have never been better and qualifying 50(c)(3) organizations can get tax-exempt bond financing at rates as low as 35% for fixed rate financing and around 2% with a floating rate FACT: n % of the top 50 associations in the DC Metro area with the largest annual incomes own their office space The biggest financial advantage for an association to own office space is the potential for significant growth in the value of the actual cash investment and the return on that invested portion of the purchase price Using an example of a purchase of the 2nd and 3rd floors at the 6th Street, NW office condominium, they are selling for about $6,76,000, including the Allowances to build out the space Cash Equity nvestment might be 0% or $67,000 Let s say that the organization owns their space for 0 years (but it would probably be much longer) Two factors are at work for that investment in the organization s office space: - Appreciation The historic increase in value for DC office buildings over a 20 year period up to 206 was about 46% annually notwithstanding the 2009 setback Through compound interest, over 0 years at a more conservative 35% annual appreciation rate, the property could be worth 4% more The original $6,76,000 property would increase in value by $2776 Million to $9,537,000 That $2,776,000 increase divided by the $67,000 initial investment is equal to more than four times the money put into the project - Principal Curtailment (mortgage pay down) After 0 years of paying down a tax-exempt 35% fixed rate borrowing of $6,090,000 with a 25 year term, the principal has been reduced by $, 825,250 Add that to the appreciation above, and the organization s initial $67,000 cash investment has earned about $4,600,000 The office space is a piggy bank that has exploded by more than six and a half times the money laid out As all of us know who might have struggled to buy a first residence, it s always more expensive initially to buy than to rent, and owning office space is certainly analogous HOWEVER, office rents typically have 25% annual escalators (or more), so that after 0 years, the rent has gone up 28% versus the even keel, flat payment mortgage which is now less costly than an escalated rent 5

16 ELEGANCE SOPHSTCATON LOCATON EUGENE KENNEY (202) JOSHUA KREDER (202)