151 merrimac st om

151 MerriMAC streetBOSTON, MASSACHUSE T TS

Conf ident ia l O ffer ing Memorandum

151 MerriMAC street

O F F E R I N G M E M O R A N D U M

exeCutive suMMAry 5

property detAils 8

MArket overview 11

Boston Market Overview

Competitive Property Set

Aerial View

tenAnt inforMAtion 17

Stacking Chart

Rent Roll

Floor Plans

Tenant Profiles

finAnCiAl AnAlysis 24

Cash Flow Assumptions

Historical Operating Expenses

BOSTON, MASSACHUSETTS

ExClUSIVE ADVISORS

KARyN McFARlAND

Senior Vice President

(617) 772-7231

[email protected]

ANTHONy W. BIETTE

Vice President, Capital Markets

(617) 772-7205

[email protected]

TA B l E O F CO N T E N T S

PHIl GIUNTA

Executive Vice President

(617) 772-7280

[email protected]

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5151 MerriMAC street

ExECUTIVE SUMMARy

As exclusive agent, Grubb & Ellis’ Capital Market Group is pleased to offer for sale the fee simple interest in the lockhart Build-

ing at 151 Merrimac Street, a 43,495 square foot office building with first floor retail space located within the Bulfinch Triangle

in Boston, Massachusetts. Originally constructed in 1887, the building was renovated in 1989 and features a layout that

provides image conscious tenants a chance to obtain coveted full floor identity. This is a tremendous opportunity to purchase

quality real estate in an established district of Boston. The dismantling of the elevated MBTA and the conversion of the Central

Artery combined with the development of the Rose Kennedy Greenway has enhanced what is already a vibrant Boston location.

The area surrounding 151 Merrimac Street is amidst a transformation into a multi-use district allowing its residents and patrons

to experience 24-hour business, retail and entertainment options. Multifamily development plans for the Delaware North site

and the North Station Garage continue to move forward, which will further enhance the 24-hour character of the neighbor-

hood.

The Bulfinch Triangle DistrictCentral to the history as well as the future of Boston, the Bulfinch Triangle neighborhood in Boston’s new downtown has expe-

rienced a rebirth following the completion of Boston’s Big Dig project. This neighborhood has emerged as a neo-industrial hot

spot in Boston. A popular entertainment destination for Boston’s hip, young cosmopolitans, the Bulfinch Triangle is home to

numerous sports bars, gourmet restaurants and swank cocktail lounges. The neighborhood is also ideally located within walk-

ing distance to some of Boston’s most popular attractions. The TD Garden, home to the Boston Celtics and Boston Bruins, as

well as host to premier concert and entertainment events, anchors the Bulfinch Triangle. Boasting new upscale condo develop-

ments and two of Boston’s newest hotels, The Bulfinch Hotel and Kimpton’s Onyx Hotel, the Bulfinch Triangle is an ideal place

to live, work and play. North Station’s role as a cultural hotspot is home to Massachusetts General Hospital, Edward S. Brooke

Courthouse and the Thomas O’Neil Federal Building.

Also within steps from the Bulfinch Triangle are North Station, the North End, Beacon Hill, the Financial District, Faneuil Hall,

and the Boston Waterfront. North Station terminal, enjoying a 2007 facelift and expansion, is one of two major transporta-

tion hubs in Boston and is the primary rail service for commuters traveling to and from areas north of Boston, including Maine

and New Hampshire. This is also the site of the newly rebuilt MBTA Superstation, a $111 million project uniting the Green and

Orange lines under Causeway Street, a vast improvement for commuter travel. The newly rebuilt Merrimac Street now allows

cars to travel both east and west and immediately connects you to Storrow Drive. Interstate 93 offers easy access from 151

Merrimac to logan International Airport, the Mass Pike and the suburbs. Workers, visitors and residents enjoy the convenience

and accessibility of the numerous service lots and parking garages in the area.

The Bulfinch Triangle District is the site of some of Boston’s most significant new development initiatives and is one of Boston’s

most vibrant historic neighborhoods. The historic district extends from Merrimac Street down Causeway Street to North Wash-

ington Street and is nestled between the prestigious Beacon Hill and famous North End. No other neighborhood in Boston can

boast of its unparalleled community diversity.

The Bulfinch Triangle by day is a thriving community for the business, medical and legal professionals as well as a government

employee base. Mayor Thomas Menino and the City of Boston have launched a comprehensive planning program defining the

“new” downtown Boston through what is referred to as the “Crossroads Initiative.” This project includes six miles of key urban

streets – twelve in all – to act as “connectors” to its surrounding ethnic neighborhoods and important destinations along the

Greenway.

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live, Work, PlayThe TD Bank Garden anchors the Bulfinch Triangle and draws crowds to the neighborhoods numerous sports bars and restaurants

on game nights and for concerts and other special events. The Bulfinch Triangle draws young professionals, Boston residents and

tourists alike. Boasting new developments with pan-

oramic views of the Boston Waterfront and the new

leonard P. Zakim Bridge, Boston’s Bulfinch Triangle of-

fers upscale condo and apartment-style living options

for people who wish to live in the heart of Boston’s

new downtown.

New/Planned DevelopmentsSuffolk University - 20 Somerset Street

Project Address 20 Somerset Street

Neighborhood Beacon Hill/West End

Uses Institutional, Education, Cultural

Building Size 156,000 SF

Applicant Suffolk University

Project Description Suffolk proposes the removal of the existing building at the 20 Somerset Street site

and the construction of a new academic building not to exceed 156,000 SF. This

project is undergoing large Project Review and was listed in the approved Institutional

Master Plan. Suffolk University will move ahead with a new $68 million academic

building at the former MDC headquarters at 20 Somerset Street. The building is expected

to open January 2013. In addition, Suffolk will renovate nearby Romer Plaza, creating

an upgraded public space, at a cost of $2.5 million.

MGH Museum and History Center

Project Address 37 N Grove Street


Uses Institutional, Education, Cultural


Applicant Massachusetts General Hospital

Project Description A new two-story museum and history center with a rooftop garden, totaling 8,000 SF on

the MGH campus.

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Building for the Third Century - MGH IMP 2006

Project Address 255 Charles Street


Uses Institutional, Medical Clinical


Applicant Massachusetts General Hospital

Project Description 150 new acute and critical care beds, an expansion of the Emergency Department and

Radiation Oncology, relocation and expansion of the sterile processing department, and

a platform for procedural services and a new dock/receiving area.

Simpson Parcel 1

Project Address Causeway/Beverly/Haverhill/Valenti Way

Neighborhood Bulfinch Triangle District

Uses Retail, Residential


Project Description 286 apartments; 142 parking spaces; 17,000 SF of retail

Status Under construction with a mid-2013 expected delivery.

Parcel 1B

Project Address Causeway/Beverly/Haverhill/Valenti Way


Uses Hotel, Residential, Retail


Project Description Marriott Courtyard Hotel, 220 rooms; 240 apartments; 25,000 SF of retail

Parcel 2A

Project Address One Canal


Uses Residential, Grocery, Retail


Project Description 320 luxury apartments; 22,000 SF grocery store; 159 parking spaces

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PROPERTy OVERVIEW

Address 151 Merrimac Street - lockhart Building, Boston, MA 02114

Property Type Class A Office

lot Size 6,853 sq. ft.

Building Size 45,000 sq. ft.

Rentable Area 43,495 sq. ft.

Total Occupied 33,850 sq. ft.

Total Vacant 9,645 sq. ft.

Stories 6

year Built 1887 - Renovated 1989

Current Tenants Rankin & Sultan, General Hospital Corporation, Dr. John Niles, Tufts University, Dr. leslie S.T. Fang M.D. P.H.D.

SITE SPECIFICATIONS

Zoning Bulfinch Triangle District Dimension Regulations ▪ Maximum Height: 80’ ▪ Maximum Floor Area Ratio: 6.0 Dimension Regulations Via Special Permit/Appeal ▪ Maximum Height: 100’ ▪ Maximum Floor Area Ratio: 7.0 / 8.0

Utilities Electric: NStar Water & Sewer: Boston Water & Sewer Gas: National Grid

151 MERRIMAC STREET / BOSTON, MA

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PROPERTy SPECIFICATIONS

Structure Steel Frame & Concrete

Foundation Granite & Concrete

Roof Rubber roof with stone ballast

Exterior Façade Brick

Windows 1988; Dual Pane

Elevators Two; Otis Elevator

Tenant Finishes Typical First Class Office Finish

Ceilings Acoustical Tile

Floors Tile & Carpet

lobby Granite Floor / Marble & Cherry Walls

lighting Energy efficient lighting installed in 2011 in all common areas plus many tenant areas. Decorative exterior lighting to highlight architectural details.

BUIlDING SySTEMS

Electrical Sytems 2 x 1600 amp redundant service. One is servicing Causeway Street; the second is servicing Merrimac Street ▪ One service provides power to the common area and roof top HVAC units; the second provides power to the tenanted areas.

HVAC System HVAC system located on roof; gas fuel HVAC distribution system deploys ▪ VAV Boxes ▪ FPB with reheat on perimeter

Plumbing System Two restrooms on each floor; Two ejection pumps in basement

Fire/life Safety Fully Sprinklered

Energy Management 2010 - Energy management system - Johnson Controls

Security System Timed Building Entry

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Market Snapshot – Third Quarter 2011Downtown Boston

MARKET SIZE (numbers in thousands except dollar amounts)

Absorption Asking Rent

Submarket Tot SF Vacancy % Q3 YTD Class A Class B

Financial District (Tower) 22,778 15.8% 45 107 $48.09 $33.00

Financial District (Low Rise) 9,409 12.1% 23 206 $49.26 $31.46

Government Center 1,796 13.8% 0 24 $40.00 $29.37

MARKET SIZE (numbers in thousands, except dollar amounts)

Midtown 3,027 9.1% 12 (44) $35.00 $26.81

North Station 3,053 8.1% 16 (50) $35.51 $26.83

Seaport District 7,791 12.8% 110 32 $56.44 $26.83

South Station 3,163 10.9% 16 30 NA $31.00

Total 51,017 13.4% 221 305 $48.01 $29.56

MARKET HIGHLIGHTS

Notable third quarter transactions include the 60,000-square-foot renewal and expansion by Acadian Asset Management at 260 Franklin Street and Lois Paul & Partners relocating from Woburn into 17,751 square feet at One Beacon Street.

There are currently 436 tenants with active requirements in the CBD totaling 5 9 million square feet of demand The

MARKET FORECAST

Looking to 2012, while Boston weathered the storm better than most markets during the 2007 to 2009 and beyond downturn, a softer dip may transcend into a less vigorous recovery. Economists predict employment – the intrinsic driver for office space demand –will grow an average of one percent a year in Massachusetts; lagging the rest of the nation through 2017.

the CBD totaling 5.9 million square feet of demand. The median tenant requirement is 5,000 square feet while the average tenant requirement is 13,253 square feet.

With 10-year treasury yields at historical lows, expect the Class B and Class C investment sales market to heat up as investors grow a bigger appetite for risk.

At 6.0%, the October unemployment rate in Greater Boston stands 300 basis points lower than the national

As employment modestly improves and demand for office space rises, expect asking rental rates and vacancy to continue improving into 2012. With limited large block options in the Back Bay, and firms from the suburbs seeking to attract a talented labor pool in the city, tenants will look to the Financial District and other CBD submarkets for their space needs. Moreover, with vacancy at 13.8 respectively, marked improvements may take a substantial amount of time.

THE STATE OF THE DOWNTOWN MARKET

Class A Class B

Vacancy Asking RentsAbsorption (in thousands)

stands 300 basis points lower than the national unemployment rate of 9.0%.

Com

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$20$30$40$50$60$70

Class A Class B

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During the third quarter, vacancy decreased to 13.5%...

…while absorption was positive 111,393 SF…

…and Class A average asking rates decreased to $47.75/SF.

Grubb & Ellis / 470 Atlantic Avenue, 11th Floor / Boston, MA 02210 / www.grubb-ellis.com

OFFICE MARKET OVERVIEW

MARKET SIZE (numbers in thousands, except dollar amounts)

Absorption Asking rent

Submarket Total SF Vacancy % Q3 YTD Class A Class b

Financial District (Tower) 22,778 15.8% 45 107 $48.09 $33.00

Financial District (Low Rise) 9,409 12.1% 23 206 $49.26 $31.46

Government Center 1,796 13.8% 0 24 $40.00 $29.37

Midtown 3,027 9.1% 12 (44) $35.00 $26.81

North Station 3,053 8.1% 16 (50) $35.51 $26.83

Seaport District 7,791 12.8% 110 32 $56.44 $26.83

South Station 3,163 10.9% 16 30 NA $31.00

Total 51,017 13.4% 221 305 $48.01 $29.56

MARKET HIGHlIGHTS• Notable third quarter transactions include the 60,000 square-

foot renewal and expansion by Acadian Asset Management

at 260 Franklin Street and lois Paul & Partners relocating from

Woburn into 17,751 square feet at One Beacon Street.

• There are currently 436 tenants with active requirements in the

CBD totaling 5.9 million square feet of demand. The median

tenant requirement is 5,000 square feet while the average ten-

ant requirement is 13,253 square feet.

• With 10-year treasury yields at historical lows, expect the Class

B and Class C investment sales market to heat up as investors

grow a bigger appetite for risk.

• At 6.0%, the October unemployment rate in Greater Boston

stands 300 basis points lower than the national unemploy-

ment rate of 9.0%.

MARKET FORECAST• looking to 2012, while Boston weathered the storm better

than most markets during the 2007 to 2009 and beyond down-

turn, a softer dip may transcend into a less vigorous recovery.

Economists predict employment - the intrinsic driver for office

space demand - will grow an average of one percent per year

in Massachusetts, lagging the rest of the nation through 2017.

• As employment modestly improves and demand for office

space rises, expect asking rental rates and vacancy to continue

improving into 2012. With limited large block options in the

Back Bay, and firms from the suburbs seeking to attract a tal-

ented labor pool in the city, tenants will look to the Financial

District and other CBD submarkets for their space needs. More-

over, with vacancy at 13.8% respectively, marked improve-

ments may take a substantial amount of time.

THE STATE OF THE DOWNTOWN MARKET

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MARKET ACTIVITY & OPPORTUNITIES

Recent Lease Transactions

Tenant SF Building Business Service Sign Date Term Effective Rental Rate

($/SF/Yr.) gross

Success Factors 13,077 77 North Washington Street Software September 2011 3 Years $26.39

Bryant Associates 6,870 90 Canal Street Engineering March 2011 6 Years $24.08

Where, Inc. 6,330 77 North Washington StreetMobile

TechnologyMarch 2011 2 Years

1 Month $24.28

Klein Kavanagh & Costello

2,302 85 Merrimac Street Law October 2011 3 Years $23.67

Properties with Contiguous Availabilities – By Size Number of Tenants In the Market by SF Required

219

124

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50

100

150

200

250

Num

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perti

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Size in thousands of square feet

<5201

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25-5024

50-10020

100+9

0< 5 5-10 10-25 25-50 50-100 100+

Size in thousands of square feet5-10103

CENTRAL BUSINESS DISTRICT (CBD) TERRITORIES MAP

LEGEND

TanNorth Station

PurpleGovernment Center

Red

Com

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GreenMidtown

Yellow South Station

OrangeB k B

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BlueSeaport District

MARKET ACTIvITy & oppoRTuNITIES

Recent Lease TransactionsTenant SF building business

ServiceSign Date Term Effective Rental Rate

($/SF/Yr.) gross

Success Factors 13,077 77 North Washington Street Software Sep 2011(renewal)

3 years $26.39

Bryant Associates 6,870 90 Canal Street Engineering Mar 2011 6 years $24.08

Where, Inc. 6,330 77 North Washington Street Mobile Techonolgy

Mar 2011(sublease)

2 years1 month

$24.28


2,302 85 Merrimac Street Law oct 2011 3 years $23.67

General Hospital Corp. 2,900 151 Merrimac Street Medical LoI 6 years $34.50


MARKET ACTIVITY & OPPORTUNITIES

Recent Lease Transactions

Tenant SF Building Business Service Sign Date Term Effective Rental Rate

($/SF/Yr.) gross

Success Factors 13,077 77 North Washington Street Software September 2011 3 Years $26.39

Bryant Associates 6,870 90 Canal Street Engineering March 2011 6 Years $24.08

Where, Inc. 6,330 77 North Washington StreetMobile

TechnologyMarch 2011 2 Years

1 Month $24.28


2,302 85 Merrimac Street Law October 2011 3 Years $23.67

Properties with Contiguous Availabilities – By Size Number of Tenants In the Market by SF Required

219

124

81

3921 9

50

100

150

200

250

Num

ber o

f Pro

perti

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Size in thousands of square feet

<5201

10-2579

25-5024

50-10020

100+9

0< 5 5-10 10-25 25-50 50-100 100+

Size in thousands of square feet5-10103

CENTRAL BUSINESS DISTRICT (CBD) TERRITORIES MAP

LEGEND

TanNorth Station


Red

Com

pan

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Financial District

GreenMidtown

Yellow South Station

OrangeB k B

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CBack Bay


CENTRAl BUSINESS DISTRICT (CBD) TERRITORIES MAP

Properties with Contiguous Availabilities - By Size Number of Tenants in the Market by SF Required

LEGEND

TanNorth Station


RedFinancial District

GreenMidtown

YellowSouth Station

OrangeBack Bay


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Number of Tenants in the Market by SF Required

Competitive Property Set

BUIlDING SIZE AVAIlABlE SF ASKING STARTINGRENT PSF*

225 FRIEND STREET 59,763 SF 14,927 SF $26

226 CAUSEWAy STREET 193,000 SF 80,008 SF $35

100-124 N WASHINGTON ST. 52,945 SF 18,238 SF $28

90 CANAl STREET 78,462 SF 3,280 SF $28

200 PORTlAND STREET 100,868 SF 7,370 SF $28

25 NEW CHARDON 112,854 SF 14,889 SF $32

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Haymarket MBTA Stop T

Bowdoin Square MBTA Stop T

151 Merrimac Street

Thomas P. O’NeillFederal Courthouse

TD Garden

Cambridge Stre

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Staniford Street

93 North Station MBTA StopT

Massachusetts State House

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Boston City Hall

Rose Kennedy Greenway

Massachusetts State House

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Lease Expiration Legend

2015 2016 2017 2018 2019 +2014Vacant

Current rentable space - 43,495 Square Feet

Vacant space - 9,645 Square Feet ( 22% )

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Basement

Dr. John NilesFeb. 2014

Vacant

Tufts UniversitySept. 2017

MGH May 2018

Leslie FangMar. 2014

MGHMay 2018

Stacking Chart

MGH May 2018

MGH May 2018

Rankin & SultanOct. 2015

MGHMay 2018

Vacant

Vacant Vacant

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SuiTE TENaNT NaME SizE ( SF ) PRO RaTa ShaRE 1 STaRT DaTE ExPiRaTiON DaTE aNNuaL RENT $PSF /TOTaL RENT ChaNGE DaTE aNNuaL RENT $PSF OPERaTiNG ExPENSES REaL ESTaTE TaxES BaSE YEaR

100 Vacant 1 - (Merrimac R + B) 5,310 12.21% Sept 2012 - - - - - - -

101 Vacant 2 - (Causeway R + B) 4,335 9.97% Sept 2012 - - - - - - -

200 Rankin & Sultan 4,886 11.23% Dec 2008 Oct 2015 $26.35 / $128,746

Dec 2008Nov 2009Nov 2011Nov 2012Nov 2013Nov 2014

$24.35$25.35$26.35$27.35$28.35$29.35

12.40% 12.40% 2005 / 2006

201 General Hospital (2nd Floor)MGH 2,045 4.70% Sept 2008 May 2018 $28.50 / $58,283

Dec 2010June 2012June 2014June 2016

$28.50$29.50$30.50$31.50

5.65% 5.65% 2010 / 2011

300 Dr. John Niles 925 2.13% Feb 2008 Feb 2014 $36.05 / $33,346

Feb 2008Mar 2009Mar 2010Mar 2011Mar 2012Mar 2013

$32.99$33.98$35.00$36.05$37.13$38.24

2.53% 2.53% 2007 / 2008

301 Dr. leslie S.T. Fang M.D. P.H.D. 3,629 8.34% Apr 2004 Mar 2014 $27.50 / $99,798 Jan 2009Mar 2009

$26.00$27.50 10.02% 10.02% 2006

400 General Hospital Corporation(3rd, 4th, 5th Floor) 12,852 29.55% Jun 2008 May 2018 $32.00 / $411,264

Dec 2008Feb 2009Feb 2010Feb 2011Apr 2011May 2011Jun 2011Jun 2013Jun 2015Jun 2016

$30.00$30.00$31.00$32.00$31.00$32.00$32.00$34.00$35.00$36.00

35.51% 35.51% 2008

500 General Hospital Corporation 2,900 6.67% Nov 2009 May 2018 $32.00 / $92,800

Mar 2012Feb 2014Feb 2016Feb 2017

$32.00$34.00$35.00$36.00

8.01% 8.01% 2012

600 Tufts University 5,181 11.91% Oct 2008 Sept 2017 $29.25 / $151,544

Oct 2008Oct 2009Oct 2010Oct 2011Oct 2012Oct 2013Oct 2014Oct 2015Oct 2016

$26.50$28.00$28.25$29.25$30.25$31.25$32.25$33.25$34.25

14.61% 14.61% 2007 / 2008


Nov 2009Nov 2011Nov 2013Nov 2016Nov 2018

$28.50$29.50$30.50$31.50$32.50

3.96% 3.96% 2009

Roof (Signage) Omni Point Holdings, Inc. 0 0.00% Dec 2008 Jul 2015 $30,992.88

$28,362.84$29,213.76$30,090.12$30,992.88$31,992.64$32,880.36

Dec 2008Jan 2009Jan 2010Jan 2011Jan 2012Jan 2013

3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly

0.00% 0.00% -

Rent Roll

Total Occupied 33,850 SF 77.83% MGH Occupied (SF) 19,229

Total Vacant 9,645 SF 22.17% MGH Occupied (%) 53.13%

Total Current RSF 43,495 RSF 100.00%

Total Building Size

102,235 Square Feet *

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SuiTE TENaNT NaME SizE ( SF ) PRO RaTa ShaRE 1 STaRT DaTE ExPiRaTiON DaTE aNNuaL RENT $PSF /TOTaL RENT ChaNGE DaTE aNNuaL RENT $PSF OPERaTiNG ExPENSES REaL ESTaTE TaxES BaSE YEaR

100 Vacant 1 - (Merrimac R + B) 5,310 12.21% Sept 2012 - - - - - - -

101 Vacant 2 - (Causeway R + B) 4,335 9.97% Sept 2012 - - - - - - -

200 Rankin & Sultan 4,886 11.23% Dec 2008 Oct 2015 $26.35 / $128,746

Dec 2008Nov 2009Nov 2011Nov 2012Nov 2013Nov 2014

$24.35$25.35$26.35$27.35$28.35$29.35

12.40% 12.40% 2005 / 2006

201 General Hospital (2nd Floor)MGH 2,045 4.70% Sept 2008 May 2018 $28.50 / $58,283

Dec 2010June 2012June 2014June 2016

$28.50$29.50$30.50$31.50

5.65% 5.65% 2010 / 2011

300 Dr. John Niles 925 2.13% Feb 2008 Feb 2014 $36.05 / $33,346

Feb 2008Mar 2009Mar 2010Mar 2011Mar 2012Mar 2013

$32.99$33.98$35.00$36.05$37.13$38.24

2.53% 2.53% 2007 / 2008

301 Dr. leslie S.T. Fang M.D. P.H.D. 3,629 8.34% Apr 2004 Mar 2014 $27.50 / $99,798 Jan 2009Mar 2009

$26.00$27.50 10.02% 10.02% 2006

400 General Hospital Corporation(3rd, 4th, 5th Floor) 12,852 29.55% Jun 2008 May 2018 $32.00 / $411,264

Dec 2008Feb 2009Feb 2010Feb 2011Apr 2011May 2011Jun 2011Jun 2013Jun 2015Jun 2016

$30.00$30.00$31.00$32.00$31.00$32.00$32.00$34.00$35.00$36.00

35.51% 35.51% 2008


Mar 2012Feb 2014Feb 2016Feb 2017

$32.00$34.00$35.00$36.00

8.01% 8.01% 2012

600 Tufts University 5,181 11.91% Oct 2008 Sept 2017 $29.25 / $151,544

Oct 2008Oct 2009Oct 2010Oct 2011Oct 2012Oct 2013Oct 2014Oct 2015Oct 2016

$26.50$28.00$28.25$29.25$30.25$31.25$32.25$33.25$34.25

14.61% 14.61% 2007 / 2008


Nov 2009Nov 2011Nov 2013Nov 2016Nov 2018

$28.50$29.50$30.50$31.50$32.50

3.96% 3.96% 2009

Roof (Signage) Omni Point Holdings, Inc. 0 0.00% Dec 2008 Jul 2015 $30,992.88

$28,362.84$29,213.76$30,090.12$30,992.88$31,992.64$32,880.36

Dec 2008Jan 2009Jan 2010Jan 2011Jan 2012Jan 2013

3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly3% Inc yearly

0.00% 0.00% -

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Floor Plans

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Rankin & Sultan Charlie Rankin and Jamie Sultan founded the firm on June 1, 1986. They had graduated from Harvard law School in the same class (1980)

and worked together as associates at the small criminal and constitutional litigation firm of Silverglate & Gertner (now Silverglate & Good).

After each subsequently enjoyed a successful tour in private solo practice, the two reunited to join forces as Rankin & Sultan.

Rankin & Sultan quickly developed a reputation for providing painstakingly diligent, thoroughly sophisticated, and extremely effective legal

counsel. Both Charlie and Jamie have been listed in The Best lawyers in America since 1991, and the firm is one of very few Boston criminal

firms listed in the Martindale-Hubbell Bar Register of Pre-eminent lawyers which “lists only the most distinguished law practices—those

that have achieved the…highest levels of legal ability…[and] adherence to professional standards of conduct, ethics, reliability, and dili-

gence. ” Today, Rankin & Sultan is at the forefront of the legal field, having forged some of the most significant advances in criminal justice

in Massachusetts over the past two decades. Charlie and Jamie are routinely called upon to speak, teach, and counsel others, from law

students to accomplished practitioners.

Company Description: Criminal defense firm representing individuals and companies in investigations, prosecutions, and appeals in

state and federal courts

Dr. John NilesJohn l Niles, MD is a Nephrologist in Boston, MA. A Nephrologist is a physician who provides kidney transplants, dialysis therapy and treat-ment for kidney disease.

Tufts University2011 FINANCIAl REPORTFiscal year 2011 produced solid financial results with an increase in net assets of $262 million. Operating performance produced an increase in net assets of $29 million, resulting from a 4% increase in revenues combined with a 2% increase in expenses. Investment returns ac-counted for the largest portion of the increase in net assets. The total return pool, which comprises the majority of the University’s invest-ments, returned 18.3% for the year. The University remained focused on meeting the financial aid need of their students and enhancing the academic program, while also avoiding reductions in staffing.

NET ASSETSTufts’ net assets grew 14.6% to $2 billion in fiscal year 2011. A strong donor base delivered $51 million in capital contributions, and unre-stricted operating activities added $29 million. As stated above, investment returns and other net asset changes, resulted in a $262 million increase. Over the last five years, net asset values rose by nearly $409 million and posted a compound annual growth of 4.5%.

Massachusetts General HospitalMassachusetts General Hospital (Mass General) is hardly general. The 200-year-old acute care hospital is Harvard Medical School’s original and largest teaching hospital. With some 900 beds, Mass General has its main campus in Boston and operates several health centers in sur-rounding communities. Its specialized medical departments include cancer, cardiology and heart surgery, neurology and neurosurgery, and diabetes and endocrinology. As a leading research facility, Mass General hosts a gaggle of clinical trials and has an annual research budget approaching $700 million. The hospital is a founding member of the Partners HealthCare System (along with Brigham and Women’s).

Tenant Profiles

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Cash Flow Assumptions Current Rentable Area (SF) 43,495

Vacant Space (as of 12/2011) 9,645 SF (22.17%)

General Inflation 2.5%

Growth Rate - Market Rent 2.5%

General Vacancy Rate 2% of all Gross Potential Revenue

Credit/Collection loss 3% of Gross Potential Revenue

Credit/Collection loss - (Mass General) 0%

Capital Reserve $0.05 PSF

Market leasing Assumptions

Absorption

Merrimac Retail / Basement Causeway Retail / Basement

Vacant Space 5,310 4,335

Date Sep 2012 Sept 2012

OfficE MERRiMAc REtAiL

MERRiMAc BASEMENt

cAUSEWAYREtAiL

cAUSEWAYBASEMENt

Downtime Between Leases 6 Months

Market Rent $PSF/Yr $31.00 $35.00 $20.00 $50.00 $10.00

Annual Increases $1.00 PSF $1.00 PSF $1.00 PSF $1.00 PSF $0.50 PSF

Renewal Probability (Months) 75% 75% 75% 75% 75%

Months Vacant 6 6 6 6 6

Term Lengths ( Years ) 5 10 10 10 10

Reimbursements Base Stop Base Stop Base Stop NNN NNN

LEASiNG cOMMiSSiONS $PSf/YR $PSf/YR $PSf/YR %/YR %/YR

NewRenewal

$2.25$1.00

$2.25$1.00

$2.25$1.00

9.0%4.5%

9.0%4.5%

tENANt iMPROvEMENtS $PSf/YR $PSf/YR $PSf/YR $PSf/YR $PSf/YR

NewRenewal

$25.00$10.00

$20.00$10.00

$20.00$10.00

$20.00$10.00

As-IsAs-Is

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Historical Operating Expenses

OPERAtiNG ExPENSES 2009 ActUAL

2010 ActUAL

2011 ActUAL1

2012 BUDGEt

Real Estate Taxes $162,179 $152,409 $148,280 $152,409

Utility Expenses 74,568 68,756 72,770 54,400

Contract Services 93,165 108,304 114,035 116,624

Repairs, Maintenance & Supplies 129,713 84,724 55,248 48,680

Total Administrative 59,431 66,012 62,901 66,444

Total Operating Expenses $519,056 $480,205 $453,234 $438,557

1. Actual Numbers through November 30, 2011

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

for the Years Ending $ PSf Dec-2012 Dec-2013 Dec-2014 Dec-2015 Dec-2016 Dec-2017 Dec-2018 Dec-2019

Potential Gross Revenue

Base Rental Revenue $29.87 $1,299,242 $1,345,099 $1,392,821 $1,427,560 $1,479,830 $1,504,728 $1,526,386 $1,553,855

Absorption & Turnover Vacancy ($4.48) ($195,034) - ($24,720) ($27,185) - ($30,286) ($115,215) ($27,969)

Scheduled Base Rental Revenue $25.39 $1,104,208 $1,345,099 $1,368,101 $1,400,375 $1,479,830 $1,474,442 $1,411,171 $1,525,886

Base Rental Step Revenue $0.00 - - $2,734 $7,288 $16,728 $26,600 $49,233 $68,655

Expense Reimbursement Revenue

Utility Expense $0.06 $2,.411 $6,557 $6,489 $7,047 $7,705 $8,925 $9,284 $9,598

Contract Services $0.12 $5,168 $14,056 $13,907 $15,107 $16,517 $19,132 $19,904 $20,579

Repairs Maintenance Supplies $0.05 $2,157 $5,866 $5,805 $6,305 $6,894 $7,987 $8,309 $8,591

Administrative $0.07 $2,944 $8,007 $7,922 $8,607 $9,410 $10,901 $11,340 $11,723

Real Estate Taxes $0.43 $18,596 $32,848 $34,318 $37,025 $37,403 $41,419 $32,597 $26,895

Total Reimbursement Revenue $0.72 $31,276 $67,334 $68,441 $74,091 $77,929 $88,364 $81,434 $77,386

Omni Point Holdings, Inc. $0.72 $31,523 $32,468 $33,442 $34,447 $35,481 $36,546 $37,640 $38,765

tOtAL POtENtiAL GROSS REvENUE $26.83 $1,167,007 $1,444,901 $1,472,718 $1,516,201 $1,609,968 $1,625,952 $1,579,478 $1,710,692

General Vacancy $0.00 - ($16,256) - - ($18,470) - ($19,771) -

Collection Loss ($0.39) ($17,055) ($24,385) ($24,605) ($25,548) ($27,705) ($27,720) ($29,657) ($29,596)

EffEctivE GROSS REvENUE $26.44 $1,149,952 $1,404,260 $1,448,113 $1,490,653 $1,563,793 $1,598,232 $1,530,050 $1,681,096

Operating Expenses

Utility Expense $1.25 $54,400 $55,760 $57,154 $58,583 $60,047 $61,549 $63,087 $64,665

Contract Services $2.68 $116,624 $119,540 $122,528 $125,591 $128,731 $131,949 $135,248 $138,629

Repairs Maintenance Supplies $1.12 $48,680 $49,897 $51,144 $52,423 $53,734 $55,077 $56,454 $57,865

Administrative $1.53 $66,444 $68,105 $69,808 $71,553 $73,342 $75,175 $77,055 $78,981

Real Estate Taxes $3.50 $152,409 $156,219 $160,125 $164,128 $168,231 $172,437 $176,748 $181,166

total Operating Expenses $10.08 $438,557 $449,521 $460,759 $472,278 $484,085 $496,187 $508,592 $521,306

Per Square Foot $10.08 $10.34 $10.59 $10.86 $11.13 $11.41 $11.69 $11.99

NEt OPERAtiNG iNcOME $16.36 $711,395 $954,739 $987,354 $1,018,375 $1,079,708 $1,102,045 $1,021,458 $1,159,790Per Square Foot $16.36 $21.95 $22.70 $23.41 $24.82 $25.34 $23.48 $26.66

Tenant Improvements

Tenant Improvements $192,900 - $65,788 - $74,157 $80,600 $306,621

Leasing Commissions $136,244 - $6,280 - $7,097 $7,694 $29,269

Capital Reserves $2,175 $2,229 $2,285 $2,342 $2,401 $2,461 $2,522

total Leasing & capital costs $331,319 $2,229 $74,353 $2,342 $83,637 $90,755 $338,412

OPERAtiNG cASH fLOW $380,076 $952,510 $913,001 $1,016,033 $996,071 $1,011,290 $683,046

Cash Flow Analysis

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PHIl GIUNTA

Executive Vice President

(617) 772-7280

[email protected]

ANTHONy W. BIETTE

Vice President, Capital Markets

(617) 772-7205

[email protected]

ExClUSIVE ADVISORS

KARyN McFARlAND

Senior Vice President

(617) 772-7231

[email protected]

Cambridge

This brochure can be rec ycled

The information contained herein was obtained from sources believed reliable; however, Grubb & Ellis Company makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of these properties is subject to errors, omissions, change of price and or conditions prior to sale or withdrawal without notice.

151 merrimac st om

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