680 Folsom Street Central SOMA: heart of the City MISSION BAY SOUTH BEACH SOUTH FINANCIAL CENTRAL SOMA DISTRICT WESTERN SOMA NORTH FINANCIAL DISTRICT UNION SQUARE Circa 1974 2010 680 Folsom – Fall 2010 Overview – Fall 2010 • Asset: – Vacant gutted dated building in prime location. – 408,500 sf existing office space entitled expansion to 522,000 sf – 2 acre site • Capital Stack – Loan Maturity – Capital Partner Unable to Fund Loan Payoff or Go Forward Costs • Business Plan – Multiple long term business plans being considered. • Office Renovation • Convert to Residential • Moscone Center Expansion and Upzone 680 Folsom Building Features • Existing 425,000sf gutted office building • Located in the heart of SOMA, adjacent to Moscone Center • Entitled for office rehabilitation and expansion • Large Floorplate - 34,700 sq ft - 2x current code • 15’ deck-to-deck (11’0” finished ceiling/10’6” Vision Glass) • Unobstructed Views • Parking in excess of Code Allowed Gutted Interior - 15’ Deck to Deck 680 Folsom Amenities BEST ACCESS TO: • RESTAURANTS • FITNESS • SHOPPING • ENTERTAINMENT AND CULTURAL ATTRACTIONS • HOTELS • TRANSIT, PARKING AND FREEWAYS 100+ restaurants within 10 minute walk WESTFIELD CAFÉ BELLINI LARKCREEKSTEAK ANDALE MELT GELATO & CREPE BISTRO BURGER MRS. FIELDS CORIANDER WITCHCRAFT HAAGEN DAZS JODY MARONI’S KICHI GRILL COCOLA BAKERY AMOURA PANDA EXPRESS CATCH ISLE CHARLES CHOCOLATES STRAITS SORABOL GODIVA CHOCOLATIER CAFÉ BISTRO COCOA BELLA CHOCOLATES OUT THE DOOR BRISTOL FARMS YOCUP ROY’S TOWN HALL JAMBA JUICE TARA CHIPOTLE CALIFORNIA PIZZA KITCHEN TACO DEL MAR PRANA ROADHOUSE PIZZA OSHA THAI DUCCA COFFEE BEAN & TEA LEAF YOGURT BAR HENRY’S HUNAN AG FERRARI CAFÉ MADELEINE GO GO SUSHI PAPA BEARDS AME FANG THIRSTY BEAR FLY TRAP TROPISUENO MEHFIL INDIAN VITRINE CAFÉ TRIESTE MEL’S DINER METREON XYZ MAYA SANRAKU CHEVY’S STARBUCKS FIREWOOD MO’Z CAFE THE CRAVERY BUCKHORNCAFE GRILL SHIKI CANTON DIM SUM CHEZ MILLION THAI LUNA AZUL COFFEE CHOICE PAPA JUST DESSERTS PENGUINO’S CHA AM PAZZIA LITTLE JOE’S JILLIAN’S CHAT CAFE THERMIDOR BLUE BOTTLE COFFEE 54 MINT BUCCA DE BEPPO NEW FILIPINAS LUCE ESCAPE FROM NY LULU EPICENTER CAFE LA BRICIOLA ZERO ZERO WHOLE FOODS SPECIALTIES TIN VIETNAMESE OOLA PEETS COFFEE LE CHARM FRENCH BISTRO CHAVO’S All major retail within 10-minute walk Six gyms within five minute walk SPORTS CLUB/ LA FEDERAL FITNESS Entertainment & cultural hub of the City Yerba Buena Gardens Premier hotels & conference facilities Proximity to transit Proximity parking & freeways I-80 on/off ramps at Fremont Street and at 4th/5th Streets Museum Parc Garage I-280 begins 1.0 mi 500 stalls from 680 Folsom MoMA Garage 411 stalls Moscone Garage 730 stalls US 101 begins 1.3 mi from 680 Folsom 5th & Mission Garage 2,585 stalls Existing and Office Planned Renovation Existing and Office Planned Renovation Lobby (30’ Ceiling) Unobstructed Views 5,000sf Private Roof Deck High Density Occupancy 680 Folsom Summary of Cost & Returns ($m) ($psf) Land Value 24.0 46 Soft Costs 18.0 35 Hard Costs 132.5 254 Tenant Improvements 44.4 85 Leasing Commissions 11.1 21 Finance/carry 24.3 47 Total costs 254.3 488 Stabilized NOI 22.0 42 Return on cost 8.8% - Project Timeline March 2007 2011 Acquired from PacBell for $78m November 2013 Value Engineering Scheduled completion Spring 2008 Entitled for Expansion to 522,000sf January 2012 •Signed Riverbed lease 10 yrs; 167,788 sf (32% NRA) February 2012 •Signed Macys.com lease 15 yrs; 242,753 sf (47% NRA) March 2012 •Expanded Riverbed by 35k sf •Selected Heleba/Nord as construction lenders •Began construction (85% pre-leased) May 2010 Maturity Default August 2012 Sold to Boston Properties for October 2010 $128.5m Recapitalized in $24m Short Sale 680 Folsom Street TMG Partners and Rockwood Capital .