2233 Wisconsin Avenue, NW MID-ATLANTIC CAPITAL MARKETS GROUP Washington, DC

OFFERING MEMORANDUM Georgetown Plaza

Executive Overview...... 6

Economic & Market Overview...... 14

Property Specifications...... 24

Tenancy ...... 36

Financial Analysis ...... 52

DEAL CONTACTS Gerald P. Trainor James V. Cardellicchio 202.775.7091 202.775.7094 [email protected] [email protected]

Wesley M. Machowsky Kimberly S. Mughal 202.775.7038 202.775.7029 [email protected] [email protected]

FINANCING LEASING Gideon Gil Joe Michel 212.841.9231 202.775.7016 [email protected] [email protected]

MID-ATLANTIC CAPITAL MARKETS GROUP EXECUTIVE OVERVIEW 6 EXECUTIVE OVERVIEW

Transwestern’s Mid-Atlantic Capital Markets Group, as the exclusive advisor PROPERTY AT-A-GLANCE for the owner is pleased to present the opportunity to acquire 2233 Wisconsin Avenue, NW (the “Property”). This 5-story, 150,315 SF boutique office building with neighborhood retail is ADDRESS: 2233 Wisconsin Avenue, NW located in the heart of the highly coveted Upper Georgetown submarket of Washington, DC. BUILT / RENOVATED: 1964 / 2015 The Property is currently 87.4% occupied with an average lease term remaining of 4 years, 10 months. In 2015, it underwent $1.5 million dollar renovation, upgrading the lobby, restrooms, SQUARE FOOTAGE: 150,315 SF and common areas. This core-plus opportunity provides investors stable cash flow and upside through the lease-up of the existing vacancies coupled with the potential to grow existing TYPICAL FLOOR: 29,000 SF office and retail below-market leases to market upon rollover. Furthermore, investors have the STORIES: 5 long term potential to capitalize on the Property’s additional density. 174 spaces below grade Upper Georgetown is a vibrant, 24/7 community, catering to an affluent mix of young PARKING RATIO: 1.70 / 1,000 82 surface spaces professionals and well educated families. It is part of Washington, DC’s most resilient retail 256 total spaces district, where tenants, residents, and visitors alike enjoy an unparalleled amenity base of over OCCUPANCY: 87.4% 250,000 square feet of shopping, hotels, bars, and restaurants. Furthermore, the Property is seated atop one of the most prominent points in Washington, DC, enabling tenants to enjoy IN-PLACE NOI: $2,636,795 unobstructed views of the Naval Observatory, National Cathedral, Rock Creek Park, and the STABILIZED NOI: $3,266,462 Washington Monument. The Property’s unique configuration enables a high proportion of windowed offices and an abundance of natural light to flow in. Its flexible floor plates are able Children’s Hospital to accommodate both smaller local tenants and larger block users. MAJOR TENANTS: MedStar Theodore’s Furniture

SUMMARY OF TERMS

INTEREST OFFERED: Leasehold (89 yr remaining)

DEBT: Free and clear

OFFERS DUE: Thursday, May 26, 2016 at 2:00pm MID-ATLANTIC CAPITAL MARKETS GROUP

OFFERING HIGHLIGHTS

Secure Cash Flow — Diverse Mix of Tenants

Upside Potential — Lease-Up of Vacancy

Class A Location — Unparalleled Amenity Base

Additional Density — 44,000 SF

Well Below Replacement Cost

Tight Retail Market — Most Resilient Market in DC (3.6% Vacancy) Tight Office Market — 5.6% Vacancy in Submarket

Robust Demographics

Quality Product — Recently Renovated 8 PAGEEXECUTIVE TITLE OVERVIEW

GEORGETOWN PLAZA 2233 Wisconsin Avenue, NW INVESTMENTDC_2233WI_VALU_2016-05-02 HIGHLIGHTS Washington, DC Lease Expiration Schedule

Secure Cash Flow Expiration UpsideCY CY PotentialCY CY — Lease-UpCY CY ofCY VacancyCY CY CY CY Lease Expiration Schedule Suite Date Tenant Vacant 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ 100% ►►87.4% leased to 0310a diverse 8/31/16 mix Riskof Servicestenants 1,133►►Lease-up of vacant suites (18,983 SF) 95.1% 0230 3/31/17 Skin, LLC 2,900 95.1% 100.0% ►►Average lease term0308 remaining 4/30/17 1st of Washington 4 years, Mortg 10 ►►Opportunity793 to roll below market office and retail 90% 0408 4/30/17 Republic of Burundi 2,554 months; Property0217 enjoys 3/31/18a high Elements level Center of tenant leases to2,734 market 0317 4/30/18 Child's Natl Med Ctr 17,165 80% 73.7% retention with most0400 tenants 4/30/18 renewing Maslow Media Group upon lease ►►Future 8,412increases in market rents will be above 0414 7/31/18 M&V Dreyfus Fndt'n 1,586 69.1% 70% 0412 10/31/18 Story House Prod 1,704 64.1% expiration SB1-5A 10/31/18 Story Hse Prod - sto average274 due to a tight office market - 5.3% vacancy 60.0% SB1-7 10/31/18 Story Hse Prod - sto 405 60% ►►Upper Georgetown’s0301 high 12/31/18 concentration Dragon Travel (passports) of owner- factor 780 0216 4/30/19 Islamic Rep of Afghan 3,176 48.6% 50% occupied properties,0303 coupled 5/31/19 withRoger Locker the scarcity of new ►►Capitalize on the595 site’s elevation as one of the 0224 6/30/19 Lucy Intn'l Law (LOI) 859 39.5% office development0307 limits 6/30/19 investment Victoria Starbuck opportunities, highest points733 in Washington, DC to garner 40% 0315 8/31/19 State Farm (LOI) 907 thereby constraining0305 supply 10/31/19 and Kim Gentin driving rents up. additional antenna453 revenue 30% 0222 11/30/19 Generations Visa Svcs 1,521 0226 11/30/19 Generations Visa Svcs 2,192 17.5% 0503 11/30/19 Aviation Sup'lr Assc 3,189 20% Class A Location 0102 3/31/20 Eivind+Hans of G/town 2,232 13.4% 0103 3/31/20 Eivind+Hans of G/town 819 10% ►►Vibrant 24/7 urban0212A locale 3/31/20 with Eivind+Hans 250,000 of G/town SF of shopping, hotels, restaurants, and bars614 within walking distance. LL101 5/31/20 Breadsoda 2,614 12.6% 0.8% 4.2% 22.0% 9.1% 11.4% 4.1% 5.1% 4.6% 21.3% 0.0% 4.9% ►►Upper GeorgetownSB1-2 is the 5/31/20 original Breadsoda live-work-play - sto location with staying power over time.549 0% 0232 6/30/20 1st Washington Mortg 1,293 Vacant 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ SB1-8 6/30/20 1st Wash Mortg - sto 110 ►►Excellent visibility on Wisconsin Avenue, Upper Georgetown’s main thoroughfare. Annual Expirations Cummulative Expirations 0240 10/31/20 Rep of Gambia 2,988 ►► 0410 10/31/20 Embassy of Serbia 5,971 (as a percentage of NRA per calendar year) Upper Georgetown0501 is centrally 1/31/21 Quatt located Associates to multiple parts of the Washington, DC metropolitan4,226 region, including 0228 4/30/21 DMP Group 1,880 the West End, Georgetown,0215 1/31/22 the G/town CBD, Dialysis Bethesda, (davi and Chevy Chase. 3,497 0520 5/31/22 Broadbranch/CM2 4,116 ►►Ground floor retailers0101 of 2/28/23 the EinsteinProperty & Noah Corpcomprise a neighborhood shopping center, home to casual3,037 0105 10/31/23 Corepower Yoga 3,894 eateries, Breadsoda0212 & Einstein 2/29/24 Frank+Lohsen Bros. Bagels, Archit and lifestyle brands, CorePower Yoga & Eivind 2,165 0535 4/30/24 Noral Group 2,761 and Hans. 0100 7/31/24 Theodore's Furniture 10,819 SB1-5A 7/31/24 Theodore's Furn - sto 360 ►►A Whole Foods, WashingtonSB1-6 7/31/24 Sports Theodore's Club, Furn - sto Balance Gym, Chipotle, and 229 0300 9/30/24 Elite Phys Therapy 3,154 Sweetgreen are all0500 within 10/31/24 walking Medstar: distanceG/town Med to the Property, providing 8,889 0500A 10/31/24 Medstar: G/town Med 82 yet another highly0525 desired 10/31/24 tenant Medstar: amenity. G/town Med 3,625 LL100 2/28/26 Glover Park Hardware 7,420 ►►Permanent unobstructed0302 1/31/22 views Spec are Tenant guaranteed due to870 0311 3/31/22 Spec Tenant 2,442 the Property’s location0405 directly 7/31/22 Spec behind Tenant the Naval 2,057 SB1-1 8/31/22 Spec Tenant - sto 244 Observatory, home0502 to the 11/30/22 Vice Spec President Tenant of 2,229 SB1-3 11/30/22 Spec Tenant - sto 157 the United States.SB1-9 2/28/23 Spec Tenant - sto 384 SB3-2 8/31/23 Spec Tenant - sto 136 0210 11/30/23 Spec Tenant 2,970 SB3-3 11/30/23 Spec Tenant - sto 373 SB3-1 2/29/24 Spec Tenant - sto 48 0420 9/30/24 Spec Tenant 6,866 SB2-2 5/31/19 Spec Tenant - sto 207 0 01/00 0 0 01/00 0 0 01/00 0 0 01/00 0 0 01/00 0 Annual Total Square Feet 18,983 1,133 6,247 33,060 13,625 17,190 6,106 7,613 6,931 32,084 0 7,420 % of Leased Area (150,392 SF) 12.6% 0.8% 4.2% 22.0% 9.1% 11.4% 4.1% 5.1% 4.6% 21.3% 0.0% 4.9% BOMA Sq Ftg Adjustments Various 7/01/16 Net BOMA Adjustments (77)

Total Building Square Footage: 150,315 BOMA Square Feet

p r o p e r t y v a l u a t i o n

PROPOSED FAR INCREASE= 44,000 SF

TOTAL PROPOSED FAR= 164,163 SF

NOTE: A PROPOSED FAR TO INCR EASE BY 6,823 SF (DIS- PLACED DENSITY FROM SHAFT & BALCONY DEDUC- T IONS @ EXIST BLDG)

ADDITIONAL FAR = 44,000 SF

A

EXISTING FAR= 136,454 SF (APPROX) ADDITIONABOVE (5 STORIES)

LEGEND

RESIDENTIAL

RETAIL

AMENITY

MECHANICAL

2% FAR DEDUCT (SHAFTS) 0 40’ 80’

3% FAR DEDUCT (BALCONY) LEGEND PROPOSED FAR INCREASE = 44,000 SF 2 2 33 W I S C O N S I N AV E NUE WA S H I N GTO N , D C D R A F T ADDITIONAL FAR - ALTERNATIVES 02 RESIDENTIAL

March 14, 2013 ©2013 Shalom Baranes Associates, PC shalom baranes associatesarchitects RETAIL C A R R P R O PERT I E S A 0 40’ 80’

XP03.dgn 3/12/2013 10:31:08 AM SCALE 1:40 AMENITY

2233 WISCONSIN AVENUE WASHINGTON, DC DRAFT TYPICAL FLOOR PLAN - RESIDENTIAL 05 MECHANICAL

CARR PROPERTIES March 14, 2013 ©2013 Shalom Baranes Associates, PC shalom baranes associates architects

0 40’ 80’ XP03.dgn 3/13/2013 6:36:40 PM SCALE 1:40 A Additional Density ►►Opportunity to increase density to reach maximum FAR of 2.5 2233 WISCONSIN AVENUE WASHINGTON, DC DRAFT GROUND FLOOR PLAN - RESIDENTIAL / RETAIL 04 CARR PROPERTIES March 14, 2013 ©2013 Shalom Baranes Associates, PC shalom baranes associates architects • The site is currently improved with 1.9 FAR SF, thereby leaving 0.6 FAR SF for future residential development. XP01.dgn 3/13/2013 6:34:26 PM SCALE 1:40 10 PAGEEXECUTIVE TITLE OVERVIEW

Well Below Replacement Cost ►►Will trade substantially below replacement cost which is estimated to be $575/SF. ►►Attractive basis to support development and use of additional density.

Tight Retail Market ►►Upper Georgetown has a vacancy of 3.6% and average rents of $51.63 versus average rents of $36.34 at the Property. ►►Retail rents are rising at an annual rate of 7% with additional rent spikes projected. ►►The Property’s retail portion is 20% of the total rentable area, significantly higher than most office product in Washington, DC, providing full-time neighborhood shopping to the area. ►►Nearly 28% of the Property’s in-place rental income is generated from retail tenants.

Robust Demographics (within 1 mile) ►►The average household income in Upper Georgetown is over $150,000. ►►Highly skilled demographic pool with 87% of residents holding a Bachelor’s Degree or higher. ►►Convenient access to an expansive housing stock, catering to over 15,000 existing households and top-notch school systems. Quality Class B+ Office Product ►►Property underwent a $1.5 million renovation over the past 6 months with the following areas improved: • Main Lobby • Common areas • Men’s, women’s & handicap bathrooms on each floor (including tiles, fixtures, and partitions) • Elevator cabs were refurbished and a dedicated elevator to serve lower level retail was installed ►►29,000 SF floorplates; easily accommodates flexibility on single or multi-tenant layouts ►►The building’s unique “H” configuration creates 10 distinct elevations of window-line that yield exceptional natural light. ►►Total of 256 surface and below grade parking spaces (1.70/1,000 SF) ►►Electric car charging station on-site MID-ATLANTIC CAPITAL MARKETS GROUP ECONOMIC & MARKET OVERVIEW 14 PAGEECONOMIC TITLE & MARKET OVERVIEW

REGIONAL PAYROLL & EMPLOYMENT REGIONAL OUTLOOK

As the regional economy has shifted from its historical government employment ►►The Upper Georgetown submarket should continue to outperform the overall base to private sector employment over the past few decades, the regional Washington, DC market due to its excellent access and amenity base. economy has diversified creating quality jobs. ►►Limited development pipeline will continue to retain the imbalance between ►►The Washington, DC region employs 3.2 million people; the sixth largest job office supply and demand, further suppressing vacancy rates. market in the country. ►►A diversified private sector will continue to drive the region’s economic ►►The region enjoys the highest median household income in the country, just expansion within health care, education, and cyber security. over $90,000, followed by San Francisco and Boston. ►►The region’s diversified economy, high quality of life, and strong housing ►►The Washington, DC metropolitan unemployment rate is the 3rd lowest in market will continue to drive consumer confidence and demand for highly the country at 4.1%; well below the national average of 5.2%. amenitized office pace.s ►►The region grew 70,600 net new jobs for the 12-month period ending January 2016, versus the historical 12-month average of 43,400. ►►Another 53,200 net new jobs are expected to be added to the Washington, DC economy in 2016. ►►The surge of robust job growth is expected to drive increased demand of office space in the Washington, DC metropolitan, outpacing current supply and boosting asking rents ►►Job growth is projected to remain above average, at 47,700 net new jobs/ year through 2020. ►►The Gross Regional Product (GRP) for the Washington metropolitan region was $485.5 billion in 2015, a 2.1% increase from 2014. Large Metro Areas | Feb 2015 |Feb Areas Metro 2016 Feb vs Large UNEMPLOYMENT RATE Washington Area Metro PAYROLL GROWTH JOB So So

u T H O U S A N D S O F N E W PAY R O LL u

U N EMP L OY MEN T R AT E rce r c e: 0 1 2 3 4 5 6 7 8 : JO B S ( A N N U A L AV E R A G E ) B % % % % % % % % % B u u re 100 120 140 r - - - e 2 4 6 8 60 40 20 au a 0 0 0 0 0 u D

of o e f

n Lab

La ‘00 b or o Feb Feb D r

St

St ‘01 F atistic W a r r tis u u tic ‘02 a a S r r s s F y 201 y 201 , ,

M T B ‘03 r o a an y Washington, DC d s 20-Year Annual Average =43,400/year w 6 5 y’ ‘04 e s B , s os t Tr e r an ‘05 n . sw Wa est ‘06 er s

n ‘07 P h ‘08 x Su ‘09 H b o urban u ‘10 P ‘11 h MD i l ‘12 5-Year Projected Average =47,700/year NY ‘13 Northern Vi ‘14 B asi L A

‘15 n ‘16 At rgin l ‘17 ia Ch ‘18 i ‘19 N A 5 5 . v . a 8 2 er ti % % ‘20 o a n g al e 16 PAGEECONOMIC TITLE & MARKET OVERVIEW

WASHINGTON, DC FUNDAMENTALS Washington, DC’s well-educated labor pool, coupled with a diversified Upper Georgetown – Office Market employment base comprised increasingly of millennials has produced a ►►The vacancy rate in Upper Georgetown as of Q1 2016 is 5.3%, compared large multiplier effect on the economy, driving demand for quality office to the 10-year average of 5.9%. product. ►►The Wisconsin Avenue Corridor within Upper Georgetown submarket is a 3.4 mile stretch along Wisconsin Avenue, historically a strong office DC Office Fundamentals market due to land constraints. ►►Tenants are chasing their workforce and the greatest population of ►►Steady leasing velocity combined with a limited space has constrained the the workforce is now millennials who demand urban, amenity rich Wisconsin Avenue Corridor, which currently houses 47 office properties, environments totaling 3.68 million square feet. • 47,000 new residents between ages 24-35 have moved to • The gap between Class A and Class B rents is projected to tighten Washington, DC since 2000, a 47% increase in the population’s due to limited supply of Class A product. segment. • 5 buildings are Class A, with a total occupancy of 96% and average ►►Washington, DC’s 136.8 million square foot office footprint has an rent of $48.98. overall vacancy of 10.2% as of Q1 2016, compared to suburban • 28 buildings are Class B properties, with a total occupancy of 92% Maryland at 15.8% and Northern Virginia at 15.2% and average rents of $36.71. ►►Washington, DC experienced 468,528 square feet of absorption in 2015, outpacing both suburban Maryland with 390,990 square feet, *Vacancy in Upper Georgetown submarket excludes the Intelstat moveout of and Northern Virginia with 152,235 square feet. 4000 Connecticut Avenue, NW in Q3 2014.

HISTORICAL VACANCY SPREAD Historical Vacancy Spread 12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00% Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16

West End Upper Georgetown Wisconsin Corr. Washington, Dc

Upper Georgetown 5.32% Wisconsin Corr. 5.60% West End 11.13% Washington, DC 8.92% cbd 6.50% east end 9.40% UPPER GEORGETOWN

WISCONSIN AVENUE CORRIDOR 18 ECONOMIC & MARKET OVERVIEW

Upper Georgetown –Retail Market In the last five years, over 2.4 million square feet of retail ►►Rents are rising in Upper Georgetown at 7% ►►Upper Georgetown has an international presence, development were delivered in Washington, DC. The annually, compared to flat growth in the East End with 7% of spending attributed to international embrace of urban living has irrefutably had the greatest and Dupont visitors ►►The Upper Georgetown submarket has a vacancy rate impact on Washington DC’s retail scene. Competition is ►►The immediate return on renovation is nowhere of 3.6% increasing at an exponential pace, with neighborhoods ►►Upper Georgetown ranks in the top three best more apparent than in Georgetown’s retail spaces fighting to draw the trendiest retailers in attempts to performing retail markets in Washington, DC with • The recent renovation of the Property positions it attract consumers who now have more choices than ever average rents of $51.63 well to roll below market retail leases to market. before in where to shop, eat, live, and play. Nevertheless, • The average retail rent at the Property is • Retail sprawling up Wisconsin Avenue that in this competitive landscape, Upper Georgetown currently $36.34, well below the submarket’s has undergone renovations receives a 20-38% continues to prevail rooted by its rich heritage, volume of average of $51.63/SF higher premium on rental rates. retail, and its friendly neighborhood charm. • This is best illustrated by the renovation of Georgetown Park which following an extensive SUBMARKET VACANCY QUOTED RATES renovation sold in 2014 for $272.5 million (893/ CBD 3.3% $61.90 SF), nearly 6 times its original purchase price. “Consumers are increasingly judging a place by East End 5.4% $56.52 ►►Retailer interest has remained high with a net gain the beauty and authenticity of its environment, of 19 new stores and services in the submarket Upper Georgetown 3.6% $51.63 the character of daytime and nighttime activi- ►►In 2014, millennials within a 3 mile radius of Capitol Hill 7.1% $40.13 ties, the quality and density of restaurants, the Georgetown had an estimated $4.2 billion in NoMa 11.4% $26.18 disposable income, as compared to $2.3 billion from frequency of engaging community events, and the 45-54 year old cohort. Southeast 4.3% $22.83 accessibility… Experience is everything.”

— Georgetown BID Northeast 8.6% $19.76 UPPER GEORGETOWN – DEMOGRAPHIC PROFILE ►►The average household income within a 1 mile radius of the Property is over $150,000. ►►Highly skilled demographic pool with high wage-earning jobs, creates a multiplier effect on the economy, driving increased consumer spending.

1 MILE RADIUS DC METRO USA POPULATION 2015 34,459 5,941,189 318,536,439 2020 Projection 36,618 6,338,910 330,662,575 2000-2015 Historical Growth 13.99% 18.58% 11.65% HOUSEHOLD & HOUSING Total Households 15,257 2,206,969 120,746,349 Average Household Size 1.94 2.64 2.57 INCOME & EDUCATION Average Household Income $150,133 $120,456 $74,699 Median Household Income $112,583 $91,943 $53,217 Per Capita Income $69,584 $44,924 $28,597 % of Household Income > $100,000 56.60% 46.40% 23.10% % Bachelor’s Degree or Higher 86.80% 49.50% 30% 20 ECONOMIC & MARKET OVERVIEW

UPPER GEORGETOWN AMENITY MAP Georgetown Valet

RESTAURANTS RETAIL

1 Café Divan 1 Safeway 2 Starbucks 2 Georgetown Cleaners 3 Bistrot Lepic & Wine Bar 3 Exxon Glover Park Market 4 Ledo Pizza 4 Hugo Boss 5 Casbah Café 5 CVS 6 Bean Counter 6 Gap 7 Simply Banh Mi 7 Jonathan Adler Angelico Pizzeria 8 Patisserie Poupon 8 Tumi Sprig & Sprout 9 Manny & Olga’s Pizza 9 Zara 10 Pho Viet and Grill 10 Ralph Lauren Sushi Keiko 11 Jaco Juice & Taco Bar 11 Apple 12 Bacchus Wine Cellar 12 Madewell 13 Basil Thai 13 Restoration Hardware 14 Los Cuates 14 Nine West 15 Zannchi 15 Vineyard Vines 2233 WISCONSIN AVE 16 Café Bonaparte 16 Tory Burch 17 Wisey’s 17 Abercrombie and Fitch 18 Wingo’s 18 Billy Reid 19 Pablo’s 19 Barbour Mad Fox Taproom 20 Martin’s Tavern 21 Café Milano RECREATION 22 Peacock Café 23 El Centro 1 Rock Creek Park 24 The Sovereign 2 Capital Crescent Trail 3 Georgetown Waterfront SERVICE

1 Citibank 2 Capital One Bank Cafe Romeo’s 3 BB&T 4 PNC Bank Naval Observatory

1

2233 WISCONSIN AVE

Rock Creek Parkway 1 1 Dumbarton Oaks Park

1

2 4 3 5

6 8 7 9 2 10 14 13 12 3 11 2 15 16 MedStar Georgetown 4 University Hospital

17 5

18 3

Georgetown University 19 20 7 22 21 6 10 12 8 11 17 13 14 2 3 9 15 16 19 18 24 23 4 MID-ATLANTIC CAPITAL MARKETS GROUP PROPERTY SPECIFICATIONS 24 PROPERTY SPECIFICATIONS

GENERAL SPECIFICATIONS OVERVIEW 2233 Wisconsin Avenue, NW is a boutique office building is located in Glover Park, within the Upper Georgetown submarket of Washington, DC. The five story office building totaling 150,315 square feet is set atop one of the most prominent points in Washington, DC. The site features four sides of glass and boasts a highly desirable proportion of windowed offices with unparalleled views of the Naval Observatory, National Cathedral, Rock Creek Park, and the Washington Monument. RENTABLE SF 150,315 square feet

AVERAGE FLOOR PLATE 29,000 square feet

TOTAL SITE AREA 72,470 SF (1.66 acres)

POTENTIAL ADDITIONAL FAR 37,000 SF (for residential only)

YEAR BUILT/RENOVATED 1964 / 2015

NUMBER OF FLOORS 5 (above grade)

COLUMN SPACING 20 x 20

FLOOR HEIGHT Floor Ceiling Height Slab-to-Slab B1 10’0” N/A 1 12’0” 14’3” 2-4 7’8” - 8’4” 9’3” 5 9’0” 10’8”

ZONING C-2-A & R-1-B (Naval Observatory Overlay)

TAX PARCEL Square 1299; Lot 1006

BATHROOMS One men’s and ladies’ restroom on each floor. Floors 2 – 5 have an additional ADA accessible unisex restroom. All restrooms were updated in 2015.

AMENITIES Einstein Bros. Bagels, Breadsoda, CorePower Yoga, Ace Hardware and a hair salon are all located on-site, as well as numerous restaurants, hotels, and retail shops a short walk away. PARKING 256 total spaces (1.70 / 1,000 SF); 174 below grade and 82 surface spaces. Facility is managed by Atlantic Parking.

STRUCTURAL SYSTEM Reinforced concrete. CONSTRUCTION INTERIOR FINISHES The lobby was renovated in 2015 and is finished with terrazzo floors, marble veneer walls, and custom lighting for a modern, urban feel. EXTERIOR WALLS Facade consists of poured in-place concrete with alternating bands of solar tinted glass windows. The rear and side elevations have brick facades. A large plaza in the front of the building facing Wisconsin Avenue contains outdoor seating and is enhanced with perimeter planters and seasonal plantings. ROOF CONSTRUCTION Firestone roof installed in October 2001.

MECHANICAL SYSTEMS ELEVATORS Three electrical gear traction Otis Elevators serving B3 - Floor 5 were modernized in 2010. The elevator cabs were refurbished in 2014 to include interior lighting and controls. The current owner also installed a new elevator dedicated to serve the lower level retail areas that has greatly enhanced accessibility to these areas. HVAC Two-pipe system. There are two Trane chillers rated at 200 tons each (each runs on R-11 refrigerant) which provide chilled water in conjunction with two cooling towers located on the roof. Heat exchangers transfer heat from the boiler to the two-pipe system. The interior zones on each floor provide cool or warm air from two rooftop air handlers, which push the air down via duct shafts. The duct system delivers conditioned air to the interior zone of each floor. Return air is via louvers above the doors to the common corridors and then through registers near the elevator lobbies that feed into return airshafts back to the roof top air handlers. The perimeter zones are heated or cooled via fan coil units located under the windows. ENERGY MANAGEMENT Trane Tracer Summit Building Automated System which controls schedule and operations for the mechanical and HVAC equipment. Installed in 2005 / upgraded in 2009. PLUMBING Hot water provided by two-gas fired boilers. ELECTRIC Two Square D Cat # SC-D8118 main 3000 amp, 120/180 volt, 3 phase, 4 wire switch boards. One switchboard services the north riser and the other board is for the south riser. There is also a Square D Cat # A87444 Emergency Disconnect switch rated at 200 amps, 480 volt. This switch would disconnect power to the emergency circuits throughout the building. All equipment is located in the main electric room located on the B1 garage level.

FIRE & LIFE SAFETY A new fire life safety system was installed in 2000. All public areas of the building, and most tenant spaces, have had sprinklers installed. $3/SF has been added to the T.I. allowance for those suites that still need to have sprinklers installed.

LOADING DOCK One at the rear of the building.

SECURITY Datawatch secures the font and rear entrances of the building, as well as the elevators and parking garage door. Tenants provided fobs for after-hours access. 26 PROPERTY SPECIFICATIONS

SITE PLAN

2255 Wisconsin Ave NW

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2201 Wisconsin Ave NW FLOOR PLANS

B3 B2 557 SF (557 BSF) 207 SF (207 SF)

Vacant Ste. B3-3 ELEVATOR ELEVATOR PIT 373 BSF PIT

B3-1 Vacant 50 SF Vacant Ste. B3-2 Exp: 2/2017 Ste. B2-2 136 BSF 207 BSF

Vacant Ste. B3-1 48 BSF PARKING PARKING

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 28 PROPERTY SPECIFICATIONS

B1 / LL Floor

12,746 SF (12,877 BSF) Ace Hardware Ste. LL100 7,420 SF (7,549 BSF) Exp: 2/2026

Freight Elevator

Vacant Ste. B1-9 384 BSF

Breadsoda Vacant Ste. LL101 PARKING Ste. B1-1 2,614 BSF 244 BSF Exp: 5/2020

First Washington Mortgage Vacant Ste. B1-8 Ste. B1-3 110 SF (111 BSF) 157 BSF Exp: 6/2020

Story House Productions Theodore’s Furniture Electric Car Charger Ste. B1-5A Ste. B1-4 274 BSF 360 BSF TEL Exp: 10/2018 Exp: 7/2024 Breadsoda Ste. B1-2 549 BSF Story House Exp: 5/2020 Productions Ste. B1-7 ELEC 405 BSF Exp: 10/2018 Theodore’s Furniture Ste. B1-5B 229 BSF Exp: 7/2024

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1st Floor 20,801 SF (20,995 BSF)

Eivind & Hans of Georgetown LOADING Ste. 103 DOCK 819 SF (935 BSF) CASHIER REAR LOADING Exp: 3/2020 VESTIBULE DOCK

CorePower Yoga Freight Theodore’s Furniture VALET Elevator Ste. 100 Ste. 105 MANLIFT 3,894 SF (3,686 BSF) 10,819 BSF Exp: 10/2023 Exp: 7/2024

Eivind & Hans of Georgetown Ste. 102 2,232 SF (2,527 BSF) Exp: 3/2020 MAIN LOBBY

Einstein Bros. Bagels Ste. 101 3,037 SF (3,028 BSF) Exp: 2/2023

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 30 PROPERTY SPECIFICATIONS

Republic of Gambia Ste. 240 2nd Floor 2,988 BSF 28,789 SF (28,920 SF) Exp: 10/2020

Generations Visa Services Ste. 226 2,192 SF Islamic Republic Elements Fitness The DMP Group, LLC (2,178 BSF) of Afghanistan & Wellness Center Generations Visa Lucy Int’l Law Ste. 228 Exp: 11/2019 Ste. 216 Ste. 217 Ste. 222 Ste. 224 1,880 SF 3,176 BSF 2,734 SF (2,735 BSF) 1,521 SF 859 BSF (1,939 BSF) Exp: 4/2019 Exp: 3/2018 (1,484 BSF) Exp: 6/2019 Exp: 4/2021 Exp: 11/2019

SKIN Ste. 230 2,900 SF (3,022 BSF) Exp: 3/2017 Eivind & Hans of Frank & Lohsen, Georgetown Vacant Architects Ste. 212A Ste. 210 Ste. 212 614 BSF 2,970 BSF 2,165 BSF Exp: 3/2020 Exp: 2/2024

Georgetown Regional Dialysis (DaVita) Ste. 215 3,497 BSF First Washington Mortgage Exp: 1/2022 Ste. 232 1,293 BSF Exp: 6/2020

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 State Farm Ste. 315 3rd Floor 907 SF (868 BSF) Exp: 8/2019 29,025 SF (28,920 BSF) Elite Physical Therapy Risk Services, LLC Ste. 300 Ste. 310 3,154 SF 1,133 SF (3,366 BSF) (1,134 BSF) Exp: 9/2024 Exp: 8/2016

Kim Gentin, Psy.D Ste. 305 Roger Locker Ste. 303 453 SF (362 BSF) Children’s National 595 SF (465 BSF) Exp: 10/2019 Medical Center Exp: 5/2019 Ste. 326 Dragon Travel Exp: 4/2018 (CVSC) Ste. 301 780 BSF Exp: 12/2018 First Washington Mortgage Ste. 308 Vacant 793 SF (735 BSF) Ste. 302 Exp: 4/2017 Children’s National Medical Center 870 BSF Ste. 317 & 326 (gutted) 17,165 SF (17,166 BSF) Exp: 4/2018 Victoria Starbuck, Ph.D Vacant Ste. 307 Ste. 311 733 SF 2,442 BSF (732 BSF) Exp: 6/2019

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 32 PROPERTY SPECIFICATIONS

4th Floor 29,150 SF (28,920 BSF) Maslow Media Group Ste. 400 8,412 SF (8,467 BSF) Exp: 4/2018

Vacant Ste. 420 Hillman & Carr (subtenant to Maslow Media) 6,866 BSF Ste. 425

Vacant Ste. 405 2,057 BSF

Max & Victoria Dreyfus Foundation Story House Productions Republic of Burundi Ste. 414 Ste. 412 Ste. 408 1,586 SF (1,595 BSF) 1,704 SF (1,701 BSF) 2,554 BSF Exp: 7/2018 Exp: 10/2018 Exp: 4/2017

Embassy of Serbia Ste. 410 5,971 SF (5,680 BSF) Exp: 10/2020

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 5th Floor 29,117 SF (28,920 BSF) MedStar - Georgetown University Hospital Ste. 500 8,889 SF (8,852 BSF) Exp: 10/2024

Broadbranch Advisors/CM2 MedStar - Georgetown University Hospital Ste. 520 MedStar-Georgetown University Hospital Ste. 500A 4,116 SF (3,985 BSF) Ste. 525 82 BSF Exp: 5/2022 3,625 BSF Exp: 10/2024 Exp: 10/2024

Aviation Suppliers Association Ste. 503 3,189 SF (3,160 BSF) Exp: 11/2019

Quatt Associates Vacant Ste. 501 Ste. 502 4,226 BSF 2,229 BSF Exp: 1/2021

Noral Group Ste. 535 2,761 BSF Exp: 4/2024

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 MID-ATLANTIC CAPITAL MARKETS GROUP TENANCY 36 TENANCY

OFFICE TENANTS

Occupied Suite SF % of NRA Expiration Notes Since

CHILDREN’S NATIONAL 317 17,165 SF 11.4% 4/30/2018 2004 The Mid-Atlantic Center for Children’s Health and the MEDICAL CENTER Environment (MACCHE) is a nonprofit, dedicated to informing health professionals, parents, caregivers, and concerned WWW.CHILDRENSNATIONAL.ORG citizens about children and their specific needs and risks associated with environmental health. It is one of ten pediatric environmental health specialty units in the United States. Based at the Children’s National Medical Center, the organization’s services are available at no cost to those who live and work in Washington, D.C., Maryland, Pennsylvania, Virginia, Delaware, and West Virginia.

MEDSTAR – GEORGETOWN 500, 12,596 SF 8.4% 10/31/2024 2010 Medstar Georgetown’s centers of excellence focus on the MEDICAL CENTER 500A, neurosciences, transplants, cancer, gastroenterology, 525 advanced research and cutting edge-technologies. MedStar WWW.MEDSTARHEALTH.ORG Georgetown’s healthcare professionals have a reputation for medical excellence and leadership, comprised of a top notch team of magnet nurses and internationally recognized physicians.

MASLOW MEDIA GROUP 400 8,412 SF 5.6% 4/30/2018 2008 The Maslow Media Group (MMG) was founded in 1988 as the first full service production staffing, crewing, payroll, and WWW.MASLOWMEDIA.COM video production agency in the country. It was established by producer Linda Maslow, who saw the need for a centralized resource to provide qualified production crews to the television, cable, and multimedia industry with a quick turnaround. MMG is a 100% small woman-owned business with a WBE Certification and is headquartered in Washington, D.C., providing services worldwide. MMG’s clientele includes corporate media departments, federal & local government agencies, and the broadcast, cable, and multimedia industry.

38 TENANCY

RETAIL TENANTS

Occupied Suite SF % of NRA Expiration Notes Since

THEODORE’S FURNITURE 0100 11,408 SF 7.6% 7/31/2024 2011 Since 1969, Theodore’s Furniture has offered modern SB1-4 and contemporary home furnishings in Washington, WWW.THEODORES.COM SB1-6 D.C. Consistently appearing in design magazines, their collections include modern living, sleeping, eating, fine art, and accessories. They also offer interior design services for residential and contract design needs.

ACE HARDWARE LL100 7,420 SF 4.9% 2/28/2026 2015 In the age of big-box home improvement centers, wholesaler ACE makes the case for the local hardware store. Founded in WWW.ACEHARDWARE.COM 1924, Ace Hardware has been known as the helpful hardware store in thousands of communities across the United States. By sales volume it is the #1 hardware cooperative in the US. 95% of the company is franchised over 4,800 Ace Hardware- branded stores that sell more than 75,000 products across all 50 US states and 70 countries. Stores range in size from small, urban shops to large rural locations. Ace has 15 warehouses, from which they distributes their products to individual stores.

COREPOWER YOGA 105 3,894 2.6% 10/31/2023 2013 Founded in 2002, CorePower Yoga offers a variety of classes catering to all experience levels. All yoga classes encompass WWW.COREPOWERYOGA.COM a wide variety of poses taught by certified yoga instructors. CorePower Yoga have over 140 studios nationwide with classes beginning at $23. Additionally, CorePower Yoga offers integrated wellness programs and Teacher trainings to empower students to live a health-focused and extraordinary life. Occupied Suite SF % of NRA Expiration Notes Since

EIVIND AND HANS OF 102 3,665 SF 2.4% 3/31/2020 1991 Eivind and Hans Salon and Spa of Georgetown is a full service GEORGETOWN 103 beauty salon providing top of the line hair care, nail, and spa 212A services since 1972. The store features the highest quality in WWW.EIVINDANDHANS.COM hair and skin products, as well as an extensive variety of make- up techniques. The salon also specializes in hair replacement and wigs for cancer patients. Their involvement with the medical community led to the salon being recognized as Washingtonian of the Year, the only salon to have been given this honor.

BREADSODA LL101 3,163 SF 2.1% 5/31/2020 2007 Breadsoda is a 1970s-style bar that features pool, SB1-2 shuffleboard, darts, and more. They are a neighborhood WWW.BREADSODA.COM staple, offering a variety of sandwiches, soups, and beer. The bar operates from lunch hour into the night.

EINSTEIN BROS CO. 101 3,037 SF 2.0% 02/28/2023 2012 Einstein Bros. Co. (Einstein Noah Restaurant Group, Inc.) is the largest bagel shop operator in the United States, with WWW.EINSTEINBROS.COM more than 815 locations, of which 44% are franchised. The company operates under the brand Einstein Bros, Noah’s New York Bagels, and Manhattan Bagel brand. They specialize in fresh-baked goods made-to-order sandwiches, crisp salads, and gourmet coffee. This location offers 25 seats inside and additional seating outside. GEORGETOWN PLAZA 2233 Wisconsin Avenue, NW DC_2233WI_VALU_2016-05-02 40 TENANCY Washington, DC

Lease Expiration Schedule

Expiration CY CY CY CY CY CY CY CY CY CY CY LEASE EXPIRATION SCHEDULE Suite Date Tenant Vacant 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ 100% 0310 8/31/16 Risk Services 1,133 95.1% 0230 3/31/17 Skin, LLC 2,900 95.1% 100.0% 0308 4/30/17 1st Washington Mortg 793 90% 0408 4/30/17 Republic of Burundi 2,554 0217 3/31/18 Elements Center 2,734 0317 4/30/18 Child's Natl Med Ctr 17,165 80% 73.7% 0400 4/30/18 Maslow Media Group 8,412 0414 7/31/18 M&V Dreyfus Fndt'n 1,586 69.1% 70% 0412 10/31/18 Story House Prod 1,704 64.1% SB1-5A 10/31/18 Story Hse Prod - sto 274 60.0% SB1-7 10/31/18 Story Hse Prod - sto 405 60% 0301 12/31/18 Dragon Travel (passports) 780 0216 4/30/19 Islamic Rep of Afghan 3,176 48.6% 50% 0303 5/31/19 Roger Locker 595 0224 6/30/19 Lucy Intn'l Law (LOI) 859 39.5% 0307 6/30/19 Victoria Starbuck 733 40% 0315 8/31/19 State Farm (LOI) 907 0305 10/31/19 Kim Gentin 453 30% 0222 11/30/19 Generations Visa Svcs 1,521 0226 11/30/19 Generations Visa Svcs 2,192 17.5% 0503 11/30/19 Aviation Sup'lr Assc 3,189 20% 0102 3/31/20 Eivind+Hans of G/town 2,232 13.4% 0103 3/31/20 Eivind+Hans of G/town 819 10% 0212A 3/31/20 Eivind+Hans of G/town 614 LL101 5/31/20 Breadsoda 2,614 12.6% 0.8% 4.2% 22.0% 9.1% 11.4% 4.1% 5.1% 4.6% 21.3% 0.0% 4.9% SB1-2 5/31/20 Breadsoda - sto 549 0% 0232 6/30/20 1st Washington Mortg 1,293 Vacant 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026+ SB1-8 6/30/20 1st Wash Mortg - sto 110 Annual Expirations Cummulative Expirations 0240 10/31/20 Rep of Gambia 2,988 0410 10/31/20 Embassy of Serbia 5,971 (as a percentage of NRA per calendar year) 0501 1/31/21 Quatt Associates 4,226 0228 4/30/21 DMP Group 1,880 0215 1/31/22 G/town Dialysis (davi 3,497 0520 5/31/22 Broadbranch/CM2 4,116 0101 2/28/23 Einstein & Noah Corp 3,037 0105 10/31/23 Corepower Yoga 3,894 0212 2/29/24 Frank+Lohsen Archit 2,165 0535 4/30/24 Noral Group 2,761 0100 7/31/24 Theodore's Furniture 10,819 SB1-5A 7/31/24 Theodore's Furn - sto 360 SB1-6 7/31/24 Theodore's Furn - sto 229 0300 9/30/24 Elite Phys Therapy 3,154 0500 10/31/24 Medstar: G/town Med 8,889 0500A 10/31/24 Medstar: G/town Med 82 0525 10/31/24 Medstar: G/town Med 3,625 LL100 2/28/26 Glover Park Hardware 7,420 0302 1/31/22 Spec Tenant 870 0311 3/31/22 Spec Tenant 2,442 0405 7/31/22 Spec Tenant 2,057 SB1-1 8/31/22 Spec Tenant - sto 244 0502 11/30/22 Spec Tenant 2,229 SB1-3 11/30/22 Spec Tenant - sto 157 SB1-9 2/28/23 Spec Tenant - sto 384 SB3-2 8/31/23 Spec Tenant - sto 136 0210 11/30/23 Spec Tenant 2,970 SB3-3 11/30/23 Spec Tenant - sto 373 SB3-1 2/29/24 Spec Tenant - sto 48 0420 9/30/24 Spec Tenant 6,866 SB2-2 5/31/19 Spec Tenant - sto 207 0 01/00 0 0 01/00 0 0 01/00 0 0 01/00 0 0 01/00 0 Annual Total Square Feet 18,983 1,133 6,247 33,060 13,625 17,190 6,106 7,613 6,931 32,084 0 7,420 % of Leased Area (150,392 SF) 12.6% 0.8% 4.2% 22.0% 9.1% 11.4% 4.1% 5.1% 4.6% 21.3% 0.0% 4.9% BOMA Sq Ftg Adjustments Various 7/01/16 Net BOMA Adjustments (77)

Total Building Square Footage: 150,315 BOMA Square Feet

p r o p e r t y v a l u a t i o n STACKING PLAN Floor SF BOMA

MedStar-Georgetown MedStar MedStar-Georgetown Quatt Aviation Suppliers Broadbranch Advisors/CM2 Noral Group University Hospital GUH University Hospital Associates Vacant Association Ste. 520 Ste: 535 Ste. 500 Ste. 500A Ste. 525 Ste. 501 Ste. 502 Ste. 503 4,116 SF (3,985 BSF) 2,761 BSF 5 29,117 28,920 8,889 SF (8,852 BSF) 82 BSF 3,625 BSF 4,226 BSF 2,229 BSF 3,189 SF (3,160 BSF) Exp: 5/2022 Exp: 4/2024 Exp: 10/2024 Exp: 10/2024 Exp: 10/2024 Exp: 1/2021 Exp: 11/2019

Republic of Max & Victoria Dreyfus Maslow Media Group Hillman & Carr Embassy of Serbia Story House Prod Vacant Burundi Foundation Vacant Ste. 400 (part of Maslow Ste. 410 Ste. 412 Ste. 405 Ste. 408 Ste. 414 Ste. 420 4 29,150 28,920 8,412 SF (8,467 BSF) Media) 5,971 SF (5,680 BSF) 1,704 SF (1,701 BSF) 2,057 BSF 2,554 BSF 1,586 SF (1,595 BSF) 6,866 BSF Exp: 4/2018 Ste. 425 Exp: 10/2020 Exp: 10/2018 Exp: 4/2017 Exp: 7/2018

First Wash. Kim Victoria Elite State Farm Risk Services Roger Locker Mortgage Gentin, Psy.D CVSC Starbuck, Ph.D Children’s National Medical Center Physical Therapy Ste. 315 Ste. 310 Ste. 303 Vacant Vacant Ste. 308 Ste. 305 Ste. 301 Ste. 307 Ste. 317 & 326 Ste. 300 907 SF 1,133 SF 595 SF Ste. 302 Ste. 311 3 29,025 28,920 793 SF 453 SF 780 BSF 733 SF 17,165 SF (17,166 BSF) 3,154 SF (3,366 BSF) (868 BSF) (1,134 BSF) (465 BSF) 870 BSF 2,442 BSF (735 BOMA) (362 BSF) Exp: 12/2018 (732 BSF) Exp: 4/2018 Exp: 9/2024 Exp: 8/2019 Exp: 8/2016 Exp: 5/2019 Exp: 4/2017 Exp:10/2019 Exp: 6/2019 Elements Fitness & Generations Generations Visa Frank & Lohsen, Eivind Georgetown Regional Islamic Republic DMP Group SKIN First Wash. Republic of Wellness Center Visa Services Lucy Int’l Law Services Vacant Architects & Hans Dialysis (DaVita) of Afghanistan Ste. 228 Ste. 230 Mortgage Gambia Ste. 217 Ste. 222 Ste. 224 Ste. 226 Ste. 210 Ste. 212 Ste. 212A Ste. 215 Ste. 216 1,880 SF 2,900 SF Ste. 232 Ste. 240 2 28,789 28,920 2,734 SF 1,521 SF 859 BSF 2,192 SF 2,970 BSF 2,165 BSF 614 BSF 3,497 BSF 3,176 BSF (1,939 BSF) (3,022 BSF) 1,293 BSF 2,988 BSF (2,735 BSF) (1,484 BSF) Exp: 6/2019 (2,178 BSF) Exp: 2/2024 Exp: 3/2020 Exp: 1/2022 Exp: 4/2019 Exp: 4/2021 Exp: 3/2017 Exp: 6/2020 Exp: 10/2020 Exp: 3/2018 Exp: 11/2019 Exp: 11/2019

Eivind & Hans of Theodore’s Furniture Einstein Bros. Bagels Eivind & Hans of Georgetown CorePower Yoga Georgetown Ste. 100 Ste. 101 Ste. 102 Ste. 105 Ste. 103 1 20,801 20,995 10,819 BSF 3,037 SF (3,028 BSF) 2,232 SF (2,527 BSF) 3,894 SF (3,686 BSF) 819 SF (935 BSF) Exp: 7/2024 Exp: 2/2023 Exp: 3/2020 Exp: 10/2023 Exp:3/2020

Story House 1st Wash. Theodore’s Theodore’s Story House Breadsoda Productions Mort. Ace Hardware Breadsoda Vacant Vacant Furniture Furniture Productions Vacant Ste. B1-2 Ste. B1-5A Ste. B1-8 Ste. LL100 Ste. LL101 PARKING Ste. B1-1 Ste. B1-3 Ste. B1-4 Ste. B1-5B Ste. B1-7 Ste. B1-9 274 BSF 110 SF LL/B1 12,746 12,877 549 BSF 360 BSF 229 BSF 405 BSF 7,420 SF (7,549 BSF) 2,614 BSF 244 BSF 157 BSF Exp: (111 BSF) 384 BSF Exp: 5/2020 Exp: 7/2024 Exp: 7/2024 Exp: 10/2018 Exp: 2/2026 Exp: 5/2020 10/2018 Exp:6/2020

Vacant PARKING Ste B2-2 B2 207 207 207 BSF

Vacant Vacant Vacant PARKING B3-3 B3-2 B3-1 B3 557 557 373 SF 136 SF 48 BSF

TOTAL 150,392 150,315 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 42 TENANCY

RENT ROLL

Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Glover Park Hardware $36.80 Mar-2018 $37.90 - - LL100_BY15_$779,929/$806,281 - - • Upon expiration suite is remeasured to 7,549 BOMA SF Suite: LL100 7,420 $273,056 Mar-2021 $40.48 • Expenses exclude: cleaning, utilities, landscaping, and security. Aug-2015 to Feb-2026 Breadsoda $26.12 Jun-2017 $26.90 - - LL101_NNN__tax / retail oe's - - • Suite is measured to 2,614 BOMA SF Suite: LL101 2,614 $68,278 Jun-2018 $27.71 • Expenses exclude: cleaning, utilities, landscaping, and security. Nov-2004 to May-2020 Jun-2019 $28.54 Theodore's Furniture $35.00 Aug-2019 $39.38 - - 100_NNN__tax / retail oe's - - • Suite is measured to 10,819 BOMA SF Suite: 0100 10,819 $378,665 • Expenses exclude: cleaning, utilities, landscaping, and security. Aug-2004 to Jul-2024 • Suite needs sprinklers; additional $3.00 psf included in TIs. Einstein & Noah Corp $53.00 Mar-2018 $58.00 - - 101_NNN__tax / retail oe's - - • Upon expiration suite is remeasured to 3,028 BOMA SF Suite: 0101 3,037 $160,961 • Expenses exclude: cleaning, utilities, landscaping, and security. Oct-2012 to Feb-2023 • Expense Cap: 5% compounding & cumulative cap. • Guaranty: Einstein Noah Restaurant Group, Inc. Eivind+Hans of G/town $41.17 Apr-2017 $42.20 - - 102_NNN__tax / retail oe's - - • Upon expiration suite is remeasured to 2,527 BOMA SF Suite: 0102 2,232 $91,891 Apr-2018 $43.26 • Expenses exclude: cleaning, utilities, landscaping, and security. Mar-2010 to Mar-2020 Apr-2019 $44.34 • Suite needs sprinklers; additional $3.00 psf included in TIs. Eivind+Hans of G/town $29.00 Apr-2017 $29.73 - - 103_NNN__tax / retail oe's - - • Suite is measured to 935 BOMA SF Suite: 0103 819 $23,751 Apr-2018 $30.47 • Expenses exclude: cleaning, utilities, landscaping, and security. Aug-2010 to Mar-2020 Apr-2019 $31.23 • Suite needs sprinklers; additional $3.00 psf included in TIs. Corepower Yoga $31.83 Nov-2016 $32.78 - - 105_NNN_tax / retail oe's - - • Upon expiration suite is remeasured to 3,686 BOMA SF Suite: 0105 3,894 $123,946 Nov-2017 $33.76 • Expenses exclude: cleaning, utilities, landscaping, and security. Nov-2013 to Oct-2023 Nov-2018 $34.77 • Expense Cap: 5% compounding & cumulative cap. Nov-2019 $35.81 Nov-2020 $36.88 Nov-2021 $37.99 Nov-2022 $39.13 Spec Tenant $36.00 Dec-2017 $37.08 1-3 100% OFC: Mrkt BY (Tax / OE) $48.00 $13.34 • Suite is measured to 2,970 BOMA SF Suite: 0210 2,970 $106,920 Dec-2018 $38.19 5.00% • Suite needs sprinklers; additional $3.00 psf included in TIs. Dec-2016 to Nov-2023 Dec-2019 $39.34 Dec-2020 $40.52 Dec-2021 $41.73 Dec-2022 $42.99 Frank+Lohsen Archit $30.47 Sep-2016 $31.23 - - 212_BY13_$585,588/$1,364,152 - - • Suite is measured to 2,165 BOMA SF Suite: 0212 2,165 $65,968 Sep-2017 $32.01 Aug-2013 to Feb-2024 Sep-2018 $34.01 Sep-2019 $34.86 Sep-2020 $35.73 Sep-2021 $36.62 Sep-2022 $37.54 Sep-2023 $38.48 Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Eivind+Hans of G/town $33.91 May-2017 $34.84 - - 212A_BY14_$638,373/$1,351,382 - - • Suite is measured to 614 BOMA SF Suite: 0212A 614 $20,821 May-2018 $35.80 • Suite needs sprinklers; additional $3.00 psf included in TIs. May-2015 to Mar-2020 May-2019 $36.78 G/town Dialysis (davita) $31.21 - - - - 215_BY12_$688,413/1,293,932 - - • Upon expiration suite is remeasured to BOMA. Suite: 0215 3,474 $108,424 Jan-2012 to Jan-2017 G/town Dialysis (davita) $32.07 Feb-2018 $32.95 1 100% 215_BY17_$TBD/$TBD

Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Rep of Gambia $37.45 Jul-2017 $38.39 - - 240_BY15_$763,379/$1,341,409 - - • Suite is measured to 2,988 BOMA SF Suite: 0240 2,988 $111,901 Jul-2018 $39.35 Jul-2015 to Oct-2020 Jul-2019 $40.33 Jul-2020 $41.34 Elite Phys Therapy $30.83 Aug-2016 $31.68 - - 300_BY14_$638,373/$1,351,382 - - • Upon expiration suite is remeasured to 3,366 BOMA SF Suite: 0300 3,154 $97,238 Aug-2017 $32.55 Jul-2014 to Sep-2024 Aug-2018 $33.45 Aug-2019 $36.20 Aug-2020 $37.20 Aug-2021 $38.22 Aug-2022 $39.27 Aug-2023 $40.35 Aug-2024 $41.46 Dragon Travel (CVSC) $33.95 Jan-2017 $34.97 - - 301_BY14_$638,373/$1,351,382 - - • Suite is measured to 780 BOMA SF Suite: 0301 780 $26,481 Jan-2018 $36.02 • a/k/a: CVSC Passport & Visa Expeditor Nov-2013 to Dec-2018 Spec Tenant $36.00 Feb-2018 $37.08 1-2 100% OFC: Mrkt BY (Tax / OE) $48.00 $9.26 • Suite is measured to 870 BOMA SF Suite: 0302 870 $31,320 Feb-2019 $38.19 5.00% • Suite needs sprinklers; additional $3.00 psf included in TIs. Feb-2017 to Jan-2022 Feb-2020 $39.34 Feb-2021 $40.52 Roger Locker $35.06 Jun-2017 $36.11 - - 303_BY11_$577,170/$1,359,472 - - • Upon expiration suite is remeasured to 465 BOMA SF Suite: 0303 595 $20,861 Jun-2018 $37.20 • Suite needs sprinklers; additional $3.00 psf included in TIs Jun-2011 to May-2019 Kim Gentin $34.04 Nov-2016 $35.06 - - 305_BY14_$638,373/$1,351,382 - - • Upon expiration suite is remeasured to 362 BOMA SF Suite: 0305 453 $15,420 Nov-2017 $36.11 • Suite needs sprinklers; additional $3.00 psf included in TIs. Nov-2014 to Oct-2019 Nov-2018 $37.20 Victoria Starbuck $38.19 Jul-2017 $39.34 - - 307_BY14_$638,373/$1,351,382 - - • Upon expiration suite is remeasured to 732 BOMA SF Suite: 0307 733 $27,993 Jul-2018 $40.52 • Suite needs sprinklers; additional $3.00 psf included in TIs. Jul-2014 to Jun-2019 1st Washington Mortg $32.80 Mar-2017 $33.62 - - 308_BY15_$763,379/$1,341,409 - - • Upon expiration suite is remeasured to 735 BOMA SF Suite: 0308 793 $26,010 • Space is interior space; no windows. Mar-2015 to Apr-2017 • Suite needs sprinklers; additional $3.00 psf included in TIs. Risk Services $33.95 - - - - 310_BY10_$544,089/$1,294,350 - - • Upon expiration suite is remeasured to 1,134 BOMA SF Suite: 0310 1,133 $38,465 • Suite needs sprinklers; additional $3.00 psf included in TIs. Sep-2013 to Aug-2016 Spec Tenant $36.00 Apr-2018 $37.08 1-2 100% OFC: Mrkt BY (Tax / OE) $48.00 $9.26 • Suite is measured to 2,442 BOMA SF Suite: 0311 2,442 $87,912 Apr-2019 $38.19 5.00% • Suite needs sprinklers; additional $3.00 psf included in TIs. Apr-2017 to Mar-2022 Apr-2020 $39.34 Apr-2021 $40.52 State Farm (LOI) $36.00 Aug-2017 $49.35 1 100% OFC: Mrkt BY (Tax / OE) - - • Suite is measured to 868 BOMA SF Suite: 0315 907 $32,652 Aug-2018 $38.19 • Suite is move in ready. Aug-2016 to Aug-2019 • Terms are in accordance with LOI dated 04/19/2016. Seller will be responsible for TIs & LCs. Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Child's Natl Med Ctr $37.24 May-2017 $38.17 - - 317_BY07_$515,661/$1,387,545 - - • Upon expiration suite is remeasured to 17,166 BOMA SF Suite: 0317 17,165 $639,225 • Expense Cap: 5% cap on controllable expenses. May-2008 to Apr-2018 Maslow Media Group $37.99 May-2017 $39.13 - - 400_BY08_$537,924/$1,396,766 - - • Upon expiration suite is remeasured to 8,467 BOMA SF Suite: 0400 8,412 $319,572 Apr-2008 to Apr-2018 Spec Tenant $37.08 Aug-2018 $38.19 1-2 100% OFC: Mrkt BY (Tax / OE) $35.00 $9.53 • Upon expiration suite is remeasured to 2,057 BOMA SF Suite: 0405 2,057 $76,274 Aug-2019 $39.34 5.00% Aug-2017 to Jul-2022 Aug-2020 $40.52 Aug-2021 $41.73 Republic of Burundi $33.12 - - - - 408_BY12_$688,413/$1,293,932 - - • Suite is measured to 2,554 BOMA SF Suite: 0408 2,554 $84,588 Apr-2012 to Apr-2017 Embassy of Serbia $34.00 Oct-2016 $35.36 - - Gross Lease: Pays no expense - - • Upon expiration suite is remeasured to 5,680 BOMA SF Suite: 0410 5,971 $203,014 Oct-2017 $36.77 reimbursement. Oct-2015 to Oct-2020 Oct-2018 $38.25 Oct-2019 $39.78 Story House Prod $36.07 Nov-2016 $37.15 - - 412_BY13_$593,188/$1,286,023 - - • Upon expiration suite is remeasured to 1,701 BOMA SF Suite: 0412 1,704 $61,463 Nov-2017 $38.26 Nov-2013 to Oct-2018 M&V Dreyfus Fndt'n $32.89 Aug-2016 $33.88 - - 414_BY08_$550721/$1,396,766 - - • Upon expiration suite is remeasured to 1,595 BOMA SF Suite: 0414 1,586 $52,164 Aug-2017 $34.90 Aug-2013 to Jul-2018 Spec Tenant $37.08 Oct-2018 $38.19 1-3 100% OFC: Mrkt BY (Tax / OE) $45.00 $13.74 • Suite is measured to 6,866 BOMA SF Suite: 0420 6,866 $254,591 Oct-2019 $39.34 5.00% Oct-2017 to Sep-2024 Oct-2020 $40.52 Oct-2021 $41.73 Oct-2022 $42.99 Oct-2023 $44.28 Medstar: G/town Med $31.23 Aug-2016 $32.01 - - 500_BY12_$628,997/$1.357,753 - - • Upon expiration suite is remeasured to 8,852 BOMA SF Suite: 0500 8,889 $277,603 Aug-2017 $35.00 • Expense Cap: 3% on mgmt fee, 5% on a compounding & cumulative Jul-2012 to Oct-2024 Aug-2018 $33.63 basis. Aug-2019 $34.47 • Tenant is extending & expanding. Terms are in accordance with a Aug-2020 $35.33 draft amendment dated 3/11/2016. Seller will pay TIs & LCs. Aug-2021 $36.22 Aug-2022 $37.12 Aug-2023 $38.05 Aug-2024 $39.00 46 TENANCY

Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Medstar: G/town Med $30.47 Nov-2016 $31.23 - - 500A_See Ste 500 for Reimb - - • Suite is measured to 82 BOMA SF Suite: 0500A 82 $2,499 Aug-2017 $35.00 Nov-2013 to Oct-2024 Aug-2018 $33.63 Aug-2019 $34.47 Aug-2020 $35.33 Aug-2021 $36.22 Aug-2022 $37.12 Aug-2023 $38.05 Aug-2024 $39.00 Medstar: G/town Med $35.00 Aug-2017 $32.80 1-3 100% 525_BY16_$TBD / $TBD - - • Suite is measured to 3,625 BOMA SF Suite: 0525 3,625 $126,875 Aug-2018 $33.62 Aug-2016 to Oct-2024 Aug-2019 $34.46 Aug-2020 $35.32 Aug-2021 $36.21 Aug-2022 $37.11 Aug-2023 $38.04 Aug-2024 $38.99 Quatt Associates $33.00 Oct-2016 $33.83 74 100% 501_BY15_$777,675/$1,341,409 - - • Suite is measured to 4,226 BOMA SF Suite: 0501 4,226 $139,458 Oct-2017 $34.67 86 100% Sep-2010 to Jan-2021 Oct-2018 $35.54 Oct-2019 $36.43 Oct-2020 $37.34 Spec Tenant $37.08 Dec-2018 $38.19 1-2 100% OFC: Mrkt BY (Tax / OE) $28.00 $9.53 • Suite is measured to 2,229 BOMA SF Suite: 0502 2,229 $82,651 Dec-2019 $39.34 5.00% • Suite needs sprinklers; additional $3.00 psf included in TIs. Dec-2017 to Nov-2022 Dec-2020 $40.52 Dec-2021 $41.73 Aviation Sup'lr Assc $31.78 Dec-2016 $32.57 - - 503_BY13_$585,588/$1,364,152 - - • Upon expiration suite is remeasured to 3,160 BOMA SF Suite: 0503 3,189 $101,346 Dec-2017 $33.38 Dec-2012 to Nov-2019 Dec-2018 $34.21 Broadbranch/CM2 $31.85 Jan-2017 $32.73 - - 520_BY15_$777,675/$1,341,409 - - • Upon expiration suite is remeasured to 3,985 BOMA SF Suite: 0520 4,116 $131,095 Jan-2018 $33.63 Jan-2015 to May-2022 Jan-2019 $34.55 Jan-2020 $35.50 Jan-2021 $36.48 Jan-2022 $37.48 Noral Group $35.23 - - - - 535_BY06_$510,002/$1,195,964 - - • Upon expiration suite is remeasured to BOMA. Suite: 0535 2,780 $97,939 • Upon expiration tenant renews for 7 years, 4 months. Dec-2006 to Dec-2016 Noral Group (LOI) $35.00 Jan-2018 $35.88 1-4 100% 535_BY17_$TBD / $TBD - - • Suite is measured to 2,761 BOMA SF Suite: 0535 2,761 $96,635 Jan-2019 $36.77 • Terms are in accordance with LOI dated 03/22/2016. Seller will be Jan-2017 to Apr-2024 Jan-2020 $37.69 responsible for TIs & LCs. Jan-2021 $38.63 Jan-2022 $39.60 Jan-2023 $40.59 Jan-2024 $41.60 Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Spec Tenant - sto $17.51 Sep-2018 $18.04 - - Gross Lease: Pays no expense - - • Suite is measured to 244 BOMA SF Storage, Suite: SB1-1 244 $4,272 Sep-2019 $18.58 reimbursement. Sep-2017 to Aug-2022 Sep-2020 $19.13 Sep-2021 $19.71 Breadsoda - sto $16.23 May-2017 $16.72 - - Gross Lease: Pays no expense - - • Suite is measured to 549 BOMA SF Storage, Suite: SB1-2 549 $8,910 May-2018 $17.22 reimbursement. Apr-2011 to May-2020 May-2019 $17.74 May-2020 $18.27 Spec Tenant - sto $17.51 Dec-2018 $18.04 - - Gross Lease: Pays no expense - - • Suite is measured to 157 BOMA SF Storage, Suite: SB1-3 157 $2,749 Dec-2019 $18.58 reimbursement. Dec-2017 to Nov-2022 Dec-2020 $19.13 Dec-2021 $19.71 Theodore's Furn - sto $15.30 Aug-2016 $15.76 - - Gross Lease: Pays no expense - - • Suite is measured to 360 BOMA SF Storage, Suite: SB1-4 360 $5,508 Aug-2017 $16.23 reimbursement. Dec-2011 to Jul-2024 Aug-2018 $16.72 Aug-2019 $17.22 Aug-2020 $17.74 Aug-2021 $18.27 Aug-2022 $18.82 Aug-2023 $19.38 Story Hse Prod - sto $15.91 Apr-2017 $16.39 - - Gross Lease: Pays no expense - - • Suite is measured to 274 BOMA SF Storage, Suite: SB1-5A 274 $4,359 Apr-2018 $16.88 reimbursement. Nov-2013 to Oct-2018 Theodore's Furn - sto $15.30 Aug-2016 $15.76 - - Gross Lease: Pays no expense - - • Suite is measured to 229 BOMA SF Storage, Suite: SB1-5B 229 $3,504 Aug-2017 $16.23 reimbursement. Dec-2011 to Jul-2024 Aug-2018 $16.72 Aug-2019 $17.22 Aug-2020 $17.74 Aug-2021 $18.27 Aug-2022 $18.82 Aug-2023 $19.38 Story Hse Prod - sto $16.64 Apr-2017 $17.14 - - Gross Lease: Pays no expense - - • Suite is measured to 405 BOMA SF Storage, Suite: SB1-7 405 $6,739 Apr-2018 $17.65 reimbursement. May-2010 to Oct-2018 1st Wash Mortg - sto $16.41 Oct-2016 $16.90 - - Gross Lease: Pays no expense - - • Upon expiration suite is remeasured to 111 BOMA SF Storage, Suite: SB1-8 110 $1,805 Oct-2017 $17.41 reimbursement. Mar-2015 to Jun-2020 Oct-2018 $17.93 Oct-2019 $18.47 Spec Tenant - sto $17.51 Mar-2019 $18.04 - - Gross Lease: Pays no expense - - • Suite is measured to 384 BOMA SF Storage, Suite: SB1-9 384 $6,724 Mar-2020 $18.58 reimbursement. Mar-2018 to Feb-2023 Mar-2021 $19.13 Mar-2022 $19.71 48 TENANCY

Annual Rental Rates Tenant Reimbursements Suite Number Tenant Rent Changes Months % to Base Year + Stop Amount Expiration Date/Term Sq Ftg PSF annual on to (PSF) to Abate Abate (Op Expense / Tax) TIs LCs Comments Spec Tenant - sto $18.39 May-2020 $18.94 - - Gross Lease: Pays no expense - - • Suite is measured to 207 BOMA SF Storage, Suite: SB2-2 207 $3,806 May-2021 $19.51 reimbursement. May-2019 to Apr-2024 May-2022 $20.09 May-2023 $20.69 Spec Tenant - sto $18.39 Mar-2020 $18.94 - - Gross Lease: Pays no expense - - • Suite is measured to 48 BOMA SF Storage, Suite: SB3-1 48 $883 Mar-2021 $19.51 reimbursement. Mar-2019 to Feb-2024 Mar-2022 $20.09 Mar-2023 $20.69 Spec Tenant - sto $18.39 Sep-2019 $18.94 - - Gross Lease: Pays no expense - - • Suite is measured to 136 BOMA SF Storage, Suite: SB3-2 136 $2,500 Sep-2020 $19.51 reimbursement. Sep-2018 to Aug-2023 Sep-2021 $20.09 Sep-2022 $20.69 Spec Tenant - sto $18.39 Dec-2019 $18.94 - - Gross Lease: Pays no expense - - • Suite is measured to 373 BOMA SF Storage, Suite: SB3-3 373 $6,858 Dec-2020 $19.51 reimbursement. Dec-2018 to Nov-2023 Dec-2021 $20.09 Dec-2022 $20.69

MID-ATLANTIC CAPITAL MARKETS GROUP FINANCIAL ANALYSIS 52 FINANCIAL ANALYSIS

CASH FLOW PROJECTIONS

Year 1 PSF Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 For the Years Ending 150,315 SF Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2021 Jun-2022 Jun-2023 Jun-2024 Jun-2025 Jun-2026 Jun-2027 Potential Gross Revenue Base Rental Revenue $34.71 $5,217,278 $5,377,306 $5,501,897 $5,724,816 $5,984,296 $6,190,649 $6,447,772 $6,721,141 $7,161,441 $7,417,445 $7,654,649 Absorption & Turnover Vacancy (4.00) (601,229) (299,473) (57,681) (111,749) (127,152) (85,961) (140,088) (346,026) (405,329) (181,738) (75,401) Base Rent Abatements (0.94) (140,888) (111,947) (9,867) 0 0 0 0 0 0 0 0

Scheduled Base Rental Revenue 29.77 4,475,161 4,965,886 5,434,349 5,613,067 5,857,144 6,104,688 6,307,684 6,375,115 6,756,112 7,235,707 7,579,248 Expense Reimbursement Revenue 2.25 338,846 363,527 348,656 372,924 421,679 465,415 483,521 466,217 417,991 468,834 581,665 Direct Reimb 0.30 44,907 46,253 47,641 49,071 50,543 52,060 53,621 55,230 56,887 58,593 60,351 Parking Income 2.76 414,120 426,544 439,340 452,520 466,096 480,079 494,481 509,315 524,595 540,333 556,543 Antenna Inc 0.42 63,430 65,332 67,292 67,295 71,390 69,468 75,737 78,010 80,350 82,761 85,244

Total Potential Gross Revenue 35.50 5,336,464 5,867,542 6,337,278 6,554,877 6,866,852 7,171,710 7,415,044 7,483,887 7,835,935 8,386,228 8,863,051 Vacancy & Credit Loss (5%) 0.00 0 0 (165,271) (126,479) (135,271) (194,906) (159,813) 0 0 (189,134) (307,331)

Effective Gross Revenue 35.50 5,336,464 5,867,542 6,172,007 6,428,398 6,731,581 6,976,804 7,255,231 7,483,887 7,835,935 8,197,094 8,555,720

Operating Expenses Management Fee (1.75%) 0.62 93,388 102,682 108,010 112,497 117,803 122,094 126,967 130,968 137,129 143,449 149,725 Cleaning 1.73 259,439 267,222 275,239 283,496 292,001 300,761 309,784 319,077 328,650 338,509 348,664 Utilities 2.17 325,480 335,244 345,302 355,661 366,331 377,321 388,640 400,299 412,308 424,678 437,418 Repairs & Maintenance 0.42 62,839 64,724 66,666 68,666 70,726 72,848 75,033 77,284 79,603 81,991 84,450 Contract Services 0.44 65,839 67,814 69,849 71,944 74,102 76,325 78,615 80,974 83,403 85,905 88,482 Payroll 1.27 190,311 196,020 201,901 207,958 214,197 220,623 227,241 234,059 241,080 248,313 255,762 Insurance 0.30 45,094 46,447 47,841 49,276 50,754 52,277 53,845 55,461 57,124 58,838 60,603 Taxes 5.24 786,936 835,008 860,058 885,860 912,436 939,809 968,003 997,043 1,026,955 1,057,763 1,089,496 General & Admin (reimb) 0.48 71,932 74,090 76,313 78,602 80,960 83,389 85,891 88,467 91,121 93,855 96,671 NR: Ground Rent 5.02 754,452 773,313 792,646 812,462 832,774 853,593 874,933 896,806 919,227 942,207 965,762 NR: Participation Rent (1%) 0.36 53,365 58,675 61,720 64,284 67,316 69,768 72,552 74,839 78,359 81,971 85,557

Total Operating Expenses 18.02 2,709,075 2,821,239 2,905,545 2,990,706 3,079,400 3,168,808 3,261,504 3,355,277 3,454,959 3,557,479 3,662,590

Net Operating Income 17.48 2,627,389 3,046,303 3,266,462 3,437,692 3,652,181 3,807,996 3,993,727 4,128,610 4,380,976 4,639,615 4,893,130

Leasing & Capital Costs Tenant Improvements 2.60 390,702 577,908 669,763 376,609 376,088 244,425 415,852 1,041,309 1,231,383 533,501 213,616 Leasing Commissions 0.69 104,043 185,622 263,810 219,821 191,349 100,470 253,451 482,170 687,120 338,381 87,691 Capital Reserves ($0.20) 0.20 30,063 30,965 31,894 32,851 33,836 34,851 35,897 36,974 38,083 39,225 40,402

Total Leasing & Capital Costs 3.49 524,808 794,495 965,467 629,281 601,273 379,746 705,200 1,560,453 1,956,586 911,107 341,709

Cash Flow Before Debt Service 13.99 2,102,581 2,251,808 2,300,995 2,808,411 3,050,908 3,428,250 3,288,527 2,568,157 2,424,390 3,728,508 4,551,421

54 FINANCIAL ANALYSIS

ASSUMPTIONS ANALYSIS START DATE Jul 01, 2016

NET RENTABLE AREA Occupied Area 131,409 87.4% Vacant 18,983 12.6% Total NRA 150,315

MARKET LEASING ASSUMPTIONS Tenant Improvements Leasing Commissions Market Rent Annual Lease Lease Type Lease Term Renewal Downtime Escalations Probability New Renew New Renew Storage $17.00 3.00% Gross 5 years 75% 9 mo $0.00 $0.00 5.0% 4.0% RTL: Lower Level $30.00 3.00% NNN 10 years 75% 9 mo $20.00 $10.00 5.0% 4.0% RTL: Theodore's 1 $40.00 3.00% NNN 10 years 75% 9 mo $20.00 $10.00 5.0% 4.0% RTL: Einstein Bagels 1 $60.00 3.00% NNN 10 years 75% 9 mo $20.00 $10.00 5.0% 4.0% RTL: Eivind & Hans $45.00 3.00% NNN 10 years 75% 9 mo $20.00 $10.00 5.0% 4.0% RTL: Corepower Yoga 1 $35.00 3.00% NNN 10 years 75% 9 mo $20.00 $10.00 5.0% 4.0% Office $36.00 3.00% Full Service 5 years 75% 9 mo $40.00 $15.00 5.0% 4.0% 1 Theodore’s Furniture, Einstein Bagels and Corepower Yoga have fixed rate renewals ($44.30, $60.50 and $36.60, respectively). Then prevailing market rents would be $57.95, $81.14 and $47.33, respectively. The Argus model reflects the blended rate based on 75% renewal probability.

INFLATION RATES Year 1 Year 2 Year 3 Year 4 Year 5 Year 6+ General Inflation (CPI) - 3.0% 3.0% 3.0% 3.0% 3.0% Market Rent Inflation - Office - 3.0% 5.0% 6.0% 6.0% 3.0% Market Rent Inflation - Retail - 6.0% 6.0% 6.0% 6.0% 3.5%

MISCELLANEOUS INCOME PSF Year 1 Comments Direct Reimb $0.30 $44,907 Reflects sub-metered electric ($38,846) - Eivind & Hans, Maslow Media, Medstar, Charles Quatt, Noral Group, Glover Park Hardware, Breadsoda. Sub-metered water ($2,401) - Einstein Bagels and Corepower Yoga. Trash Removal ($3,654) - Theodore's. Sub-metered electric and water account for 13% of total utilities, therefore, just 87% of total utilities is passed-back to the rest of the tenants. Similarly, trash represents 1% of total cleaning, therefore just 99% of cleaning is passed-back to the rest of the tenants. Parking Income $2.76 $414,120 Represents Park America’s estimates for 2016 increased 1.5% to account for the Analysis Start Date. Parking Income increases annually by General Inflation. The building includes 174 indoor spaces and 82 outdoor surface spaces. Atlantic Parking's estimate is based on an operating agreement. Antenna Inc $0.42 $63,430 Reflects the actual amounts for three antenna leases: (i) APC Realty through 1/2022, (ii) T-Mobile through 10/2019, and (iii) Comcast through 7/2017. Upon rollover, one month of downtime is incorporated, then a 3% increases to the last rent paid is utilized with annual increases based on General Inflation.

VACANCY & CREDIT LOSS 5.0% of All Rental Revenue, less, Absorption & Turnover. The following tenants are excluded from the calculation due to their creditworthiness (8 tenants, 47,359 SF, 31% of NRA): Children's National Medical Center, Einstein Bagels, Embassy of Serbia, Georgetown Dialysis (DaVita), Islamic Republic of Afghanistan, George- town Medical (Medstar), Republic of Gambia, and Republic of Burundi. OPERATING EXPENSES Operating expenses are based on the owner’s 2015 actuals increased 3%. PSF Year 1 Comments Management Fee (1.75%) $0.62 $93,388 1.75% of EGR is charged to the owner; however, 3% is passed through to all tenants with 1.25% going to the owner. Cleaning $1.73 $259,439 Includes janitorial contract and porter, trash, carpet cleaning, window cleaning and metal finishing. One percent of total cleaning is passed-through directly to Theodore's, therefore 99% is passed-through the tenants. Utilities $2.17 $325,480 Seven tenants are sub-metered for electric (12% of total utilities) and two tenants are sub-metered for water (1% of total utilities). As a result, 87% of utilities is passed-through to the tenants while 13% is a direct reimbursement. Repairs & Maintenance $0.42 $62,839 Contract Services $0.44 $65,839 Payroll $1.27 $190,311 Reflects maintenance salaries and burden. Insurance $0.30 $45,094 Reflects market estimate. Taxes $5.24 $786,936 Year 1 Taxes represent actual taxes through 9/2016, then estimated taxes based on the proposed assessed value of $44,459,000, times, the current tax rates for the period 10/2016 - 9/2017. Effective 10/2017, and annually thereafter, taxes increase by General Inflation. The current tax rates are 1.65/$100 of the assessed value's first $3.0 MM, and 1.85/$100 of the assessed value greater than $3.00 MM. General & Admin (reimb) $0.48 $71,932 Primarily includes property manager and administrative salaries and burden ($51,734). NR: Ground Rent $5.02 $754,452 Ground rent has been underwritten to the current rent being paid, plus 2.5%. This represents the ground rent’s reset upon a sale. Ground rent will then increase annually by 2.5% for the next 10-years. See the ground lease abstract for further information. NR: Participation Rent (1%) $0.36 $53,365 Ground Rent Participation Rent: 1.0% of EGR, paid quarterly.

CAPITAL Capital Reserves ($0.20) $0.20 $30,063 Increases annually by General Inflation

INITIAL LEASE-UP SCHEDULE SUITE SQ FT START RENT/SF TERM INC. TI / SF FREE COMMENTS 210 2,970 SF 12/16 $36.00 7 yrs 3.0% $48 /SF 3 mos 302 870 SF 2/17 $36.00 5 yrs 3.0% $48 /SF 2 mos Adjacent to Ste 311 311 2,442 SF 4/17 $36.00 5 yrs 3.0% $48 /SF 2 mos Adjacent to Ste 302 405 2,057 SF 8/17 $37.08 5 yrs 3.0% $35 /SF 2 mos 420 6,866 SF 10/17 $37.08 7 yrs 3.0% $45 /SF 3 mos 502 2,229 SF 12/17 $37.08 5 yrs 3.0% $28 /SF 2 mos SB1-1 244 SF 9/17 $17.51 5 yrs 3.0% None None storage SB1-3 157 SF 12/17 $17.51 5 yrs 3.0% None None storage SB1-9 384 SF 3/18 $17.51 5 yrs 3.0% None None storage SB2-2 207 SF 5/19 $18.39 5 yrs 3.0% None None storage SB3-1 48 SF 3/19 $18.39 5 yrs 3.0% None None storage SB3-2 136 SF 9/18 $18.39 5 yrs 3.0% None None storage SB3-3 373 SF 12/18 $18.39 5 yrs 3.0% None None storage 56 FINANCIAL ANALYSIS

GROUND LEASE ABSTRACT

Lessor Current Monthly Rental Commencement Expiration Annual Escalation Private Owner $61,337/month October 1, 2006 October 1, 2105 2.5% * Lessee also pays 1% of gross revenues quarterly as Participation Rent

Mandatory Adjustment On the earlier to occur of (i) the occurrence of an Extraordinary Change or (ii) the 10th anniversary of the first Rent Payment Date or each 10th Lease Year, the Annual Basic Rental shall be recomputed to equal the greater of (a) the then Fair Market Land Value multiplied by the Ground Rent Constant and (b) 102.5% of the then current Ground Rent. If there is an adjustment to the Annual Basic Rental, then the next Mandatory Adjustment Date shall be the 10th anniversary of the Extraordinary Change.

Ground Rent Constant Seven percent

Extraordinary Change An Extraordinary Change is deemed to have occurred if any one or more of the following takes place:

1. A change in use of 25% or more of the rentable square feet on a cumulative basis within any 24 month period. The change is deemed to take place as of date the use is placed into service;

2. A Transfer; or 3. A Financing, excluding (i) any debt or equity financing provided by an affiliate or equity owner of Ground Lessee using its own funds or (ii) any Leasehold Mortgage or any initial transferee of any Leasehold Mortgage or (iii) any secured debt financing in the form of non-participating fixed or variable interest rate loan unless it is for an amount that is the greater of (a) 75% or more of the Total Value or (b) the highest principal balance of the most recent financing. Total Value is the fair market value of the sum of (i) any Tenant’s leasehold interest in the Premises and (ii) any Improvement then existing on the Premises.

Participation Rental 1% of the aggregate Operating Revenue, payable quarterly.

Lessee and Lessor Right of First Offer If Lessor markets 75% or more of its interest in the property or equity interests of Lessor, Lessee shall have an on-going right of first offer at fair market value, with a 45-day Ground Lessee ROFO Period in which to negotiate a contract. If Lessee declines the offer notice, Lessor shall have 12 months from the expiration of the Ground Lessee ROFO Period to sell the property to a third party as long as the purchase price is not less than 97% of the ROFO price.

Lessor Right of First Offer If ground owner sells the Land, the building owner has a “right-of-first-offer” and vice-versa. Notice of building sale has been provided to land owner and was declined.

58 FINANCIAL ANALYSIS

OFFICE & RETAIL LEASE COMPARABLES

1 2 3 4

5 6 7 8

9 10 1 2 3 4 5 6 7 8 9 10

5225 Wisconsin 1055 Thomas 1055 Thomas 4200 Wisconsin 1000 Potomac 1509 Connecticut 5300 Wisconsin 3301-3303 M St, ADDRESS 1250 24th St, NW 3328 M St, NW Ave, NW Jefferson St, NW Jefferson St, NW Ave, NW Ave, NW Ave, NW Ave, NW NW

SUBMARKET Uptown Georgetown West End Georgetown Uptown Georgetown Uptown Uptown Georgetown Georgetown

US News & World Atlantic Services Solena Fuels Callagris Home TENANT Savage & Associates GKG Law Capital Kids II B and D Optical New Balance Alice & Olivia Report Group Corporation Furnishings

SF LEASED 854 SF 9,361 SF 4,538 SF 10,663 SF 7,810 SF 4,049 SF 2,000 SF 2,496 SF 2,400 SF 5,047 SF

TERM 3 Years, 2 Months 7 Years, 6 Months 10 Years, 5 Months 9 Years 11 Years 5 Years, 3 Months 10 Years 1 Year 10 Years 5 Years

YEAR 1 RENT $42.00 psf, FS $41.00 psf, FS $37.00 psf, FS $36.00 psf, FS $38.50 psf, FS $40.00 psf, FS $72.00 psf, NNN $66.50 psf, NNN $135.00 psf, NNN $75.00 psf, NNN

EXECUTION Oct-2015 Oct-2014 Sept-2014 Aug-2014 Jul-2014 June-2014 Mar-2015 Feb-2015 Oct-2014 Jul-2014

FREE RENT 2 Mos 6 mos 5 mos 0 mos 5 Mos 2 Mos 4 Mos 1 Mos 0 Mos 0 Mos

IMPROVEMENTS $10.00 psf None None None $60.00 psf None None None None None

ESCALATIONS 2.50% per year 2.50% per year 2.50% per year 2.25% per year 4.00% per year 2.50% per year 3.00% per year None None 3.00% per year 60 FINANCIAL ANALYSIS

SALE COMPARABLES

1 2 3

4 5 6

7 8 1 2 3 4 5 6 7 8 4000 Brandywine St, NW 1512-1518 Connecticut 4201 Connecticut Ave, 5185 MacArthur Blvd, ADDRESS 1250 23rd St, NW 4600 East West Highway 4520 East West Hwy 7315 Wisconsin Ave, NW 4260 Wisconsin Ave, NW Ave, NW NW NW 4545 42nd St, NW

SUBMARKET West End Uptown Bethesda Bethesda Bethesda Uptown Uptown Uptown

SALE DATE Nov-15 Mar-15 Jun-15 Jun-15 Apr-15 Oct-14 Jun-14 Feb-16

Brookfield Office Rock Creek Property OWNER/SELLER Cambridge PNC Bank AEW MRP & Rockpoint Joss Realty American University Properties Group

Lakritz Adler RE Urban Investment BUYER HIMCO L&B Realty Advisors Australian Super Peel Properties (User) JP Morgan Brickman Associates Investments Partners

SQUARE FEET 128,571 23,524 113,218 174,449 353,000 70,791 43,600 137,691

PRICE $64,000,000 $36,734,156 $39,500,108 $64,000,000 $145,900,000 $23,100,000 $14,925,000 $45,000,000

PRICE PSF $498 psf $1,562 psf $349 psf $367 psf $413 psf $326 psf $342 psf $327 psf

CAP RATE 5.89% 4.68% 5.20% (Portfolio) 5.69% 5.80% 6.25% 6.90% n/a

COMMENTS Built in 1990 and Built in 1923. Part of Built in 1988. 95% leased Built in 1980. Needs Built in 1964 and Built in 1966 and Built in 1982 and 3-building office renovated in 2010. 100% a two building sale, at the time of sale. Part renovations. 67% renovated in 2014. 90% renovated in 2009. 94% renovated in 1997. 98% portfolio: 4000 leased at time of sale, that included 1913 of a 10-building portfolio leased at time of sale, leased at the time of sale. leased at the time of sale leased at time of sale. Brandywine St., built anchored by Louis Berger. Massachusetts Avenue, sale comprised of 2.2 anchored by Sucampo In walking distance of to multiple tenants. 1031 Exchange for in 1964 and 4620 Three administrative/ NW. The Property was million square feet. Pharmaceuticals Buyer the Bethesda Metrorail the buyer. No Metrorail Wisconsin Ave., built consulate functions 100% leased at the Brookfield sold a 49% will occupy 25,000 Station. accessibility. in 1988 were sold for of foreign embassies time of sale to multiple stake in the portfolio. square feet. In walking residential development. also lease space in tenants. 33% of the Located adjacent to distance to the Bethesda 4545 42nd St., built the building. The sale Property is ground floor the Bethesda Metrorail Metrorail Station. in 1981 will remain an pertained to the office retail. Located in walking Station. office building, currently condo interest (Lower five distance to the Dupont 97% occupied to multiple floors) which rest beneath Metrorail Station. tenants. The seller will 5 floors of residential continue to occupy condos. 4000 Brandywine St. for 9 months and 4260 Wisconsin Ave. for 12 months following the sale. FINANCING OPTIONS

2233 Wisconsin Avenue, NW Washington, DC

Asset Description: Office building with ground floor retail in Washington, DC

Square Footage: 150,315

Yr 1 NOI: $2,636,795

Occupancy: 87.4%

10-Year Fixed Rate Loan 5-Year Fixed Rate Loan 3+1+1 Floating Rate Loan

65% LTV: 3.75 – 4.00% 3.30 – 3.50% LIBOR + 250 bps ~ 2.9

Debt Yield Maintenance: 8.5 – 9.0% 8.5% 8.5%

Amortization: 30 years 30 years N/A

Interest Only: 0 – 2 years 1 – 2 years Full Term

INFORMATION ON FINANCING:

Gideon M. Gil Managing Director- Equity, Debt & Structured Finance Cushman & Wakefield 212.841.9231 [email protected] TRANSWESTERN (including their affiliates, subsidiaries, related parties, successors, and assigns, hereinafter referred to singly and collectively as “Transwestern” or “Agent”) have been engaged as the exclusive agent by the owner (“Owner” or “Seller”) for the leasehold sale of a 150,315 SF office building with ground floor retail located at 2233 Wisconsin Avenue, NW in Washington, DC (the “Property”).

The Property is being offered for sale in an “as-is, where-is” condition and the Seller and the Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with Transwestern Commercial Services as a “Registered Potential Investor” or as “Buyer’s Agent” for an identified “Registered Potential Investor”. The use of this Offering Memorandum and the information provided herein, is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by the Agent prior to delivery of this Offering Memorandum.

The enclosed materials are being provided solely to facilitate the prospective investor’s due diligence for which it shall be fully and solely responsible. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by the Agent or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Agent or the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein, or any other written or oral communications, or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein.

The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. The Seller and the Agent each expressly reserve the right, at their sole and absolute discretion, to reject any and all expressions of interest or offers regarding the Property and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, corrections or errors, change of price or other terms, prior sale or withdrawal from the market without notice. The Agent is not authorized to make any representations or agreements on behalf of the Seller.

The Seller shall have no legal commitment or obligation to any interested party reviewing the enclosed materials, performing additional investigation and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered and approved by the Seller and any conditions to the Seller’s obligations thereunder have been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to the Agent or the Seller promptly upon request; and (b) the recipient shall not contact employees or tenants of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or the Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or the Agent or as otherwise provided in the Confidentiality Agreement executed and delivered by the recipient(s) to Transwestern.

The Seller will be responsible for any commission due the Agent in connection with a sale of the Property. Each prospective purchaser will be responsible for any claims for commissions by any other broker or agent in connection with a sale of the Property if such claims arise from acts of such prospective purchaser or its broker/agent. Any Buyer’s Agent must provide a registration signed by the prospective investor acknowledging said agent’s authority to act on its behalf.

If you have no interest in the Property at this time, please return this Offering Memorandum to the address below if it is a hard copy or delete the file if it is an electronic copy:

Transwestern Mid-Atlantic Capital Markets Group 1717 K Street, NW, Suite 1000 Washington, DC 20006 Attention: Gerald P. Trainor, Executive Managing Director Mid-Atlantic Investment Sales

Mid-Atlantic Capital Markets Group Multifamily Group Private Capital Group

Gerald Trainor, CFA Dean Sigmon Julian Etches Executive Managing Director Executive Vice President Managing Director Jim Cardellicchio Robin Williams Jim Darby Managing Director Executive Vice President Senior Vice President Wesley Machowsky Justin Shay 6700 Rockledge Drive Director Vice President Suite 500A Bethesda, MD 20817 Kimberly Mughal Chaise Schmidt 301.571.0900 Director Senior Associate 1717 K Street 6700 Rockledge Drive Leo McDermott Suite 1000 Suite 500A Vice President Washington, DC 20006 Bethesda, MD 20817 7160 Columbia Gateway Drive 202.775.7000 301.571.0900 Suite 210 Columbia, MD 21046 Mark Glagola 443.285.0770 Managing Director Thomas Hilley III Senior Associate Tina Wakley Senior Associate 7160 Columbia Gateway Drive Suite 210 Columbia, MD 21046 443.285.0770

Transwestern is a privately held real estate firm specializing in agency leasing, property and facilities management, tenant advisory, capital markets, research and sustainability. The fully integrated global enterprise leverages competencies in office, industrial, retail, multifamily and healthcare properties to add value for investors, owners and occupiers of real estate. As a member of the Transwestern family of companies, the firm capitalizes on market insights and operational expertise of 1717 K Street, NW independent affiliates specializing in development, real estate investment management and research. Transwestern has 34 Suite 1000 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with Paris-based BNP Washington, DC 20006 Paribas Real Estate. T. 202.775.7000 For more information, visit us at www.transwestern.com