Jones Lang LaSalle CONSTRUCTION MONITORING

PROPERTY CONDITION ASSESSMENTS

PLAN AND COST REVIEWS

25-697
December 12, 2018

Mr. John Oliver E-mail: joliver@USIFund.com

Sr. Vice President
U.S. Immigration Fund
115 front Street, Suite 300
Jupiter, Florida 33477

Re: Pacific Park Platform

Brooklyn, New York

Dear Mr. Oliver,

As per your request, our Tri-Party Meeting occurred on December 6, 2018, at the Developer's office at
One MetroTech in Brooklyn, New York. The purpose of the meeting was to familiarize all parties
with the current project scope, review the project documentation, roles and expectations.

The following individuals attended the meeting:

Clifford Schwartz, Sr. Vice President Greenland Forest City Partners

Scott Solish, Executive Vice President Greenland Forest City Partners
Chengxu Yang, P.E., Director of Construction Greenland Forest City Partners
Elizabeth Engel, P.E., Senior Civil Engineer WSP USA
Michael G. Gagliardi, Sr. Vice President McKissack & McKissack
Ben Gordon, Project Engineer Turner Construction Company
Kevin J. Duffy, Jr., Estimating Manager Turner Construction Company

The following companies are involved in the design, development and construction of the Pacific Park
Platform:

Company Role
Greenland Forest City Partners Owner/Developer
Kohn Pederson Fox Platform Architecture
WSP Building Structures Platform Structural
WSP Building Systems Building MEP
Stantec/Volmuth & Brush Platform Civil
Wiss Janney Elstner Associates Platform Waterproofing
Parsons Brinkerhoff Rail Yard – Architectural and Structural Services
Turner Construction Company Construction Manager

--------------------------------------
us.jll.com/pds ------------------------------------------------------------------------------------------------------------------------------------------------------------------ merrittandharris.com -----------------------------
NEW YORK 148 West 37th Street, 4th Floor • New York, NY 10018-6986 212.697.3188
LOS ANGELES 515 S. Flower Street, Suite 1300 • Los Angeles, CA 90071-2252 213.239.6000
SOUTH FLORIDA 500 Fairway Drive, Suite 107 • Deerfield Beach, FL 33441-1817 954.570.5559
Project Summary

The Pacific Park Project is a new neighborhood development located in downtown Brooklyn. A major
component of this project is the construction of a platform structure over the existing Long Island Rail
Road (LIRR) storage yard to create approximately 200,000 square feet of new usable land. This will
enable the subsequent construction of six new mid-rise towers which will offer commercial space on
the ground floors and residential units above. The balance of the platform area will be devoted to green
space open to public use.

The LIRR storage yard currently extends from Pacific Street at its south side to Atlantic Avenue at its
north. In the east to west direction, the west yard (Block 1120) extends from 6th Avenue to the Carlton
Avenue Bridge. The east yard (Block 1121) continues from Carlton Avenue to Vanderbilt Avenue. At
the north side of Block 1120, an area which is not part of the LIRR yard is referred to as “Bump”.

The platform shall typically consist of waterproofing and reinforced concrete topping slabs supported
on precast planks or tees spanning to steel girders supported on reinforced cast-in-place concrete
columns. The platform shall be supported on a combination of caissons and spread footings.
Foundations are in the process of being installed at the south end of the site as part of the current rail
yard work that is being completed. Modifications and additions to existing yard level services will be
made by enclosing the yard. These include: new fan plants and associated ductwork, fire protection,
lighting, security, communication, and egress systems.

Development Phasing

The development phasing agreed to by the Developer, Greenland Forest City Partners and the LIRR
allows for the project to be completed in three phases over the completed yard. This phasing allows
for the individual construction of each phase and the opening of the respective buildings.

Phase B5 – western third of Block 1120 on which building B5 will be built

Phase B6/7 – eastern two-thirds of Block 1120 on which buildings B6 & B7 will be built
Phase B8/9/10 – full Block 1121 on which buildings B8, B9 & B10 will be built

December 12, 2018 25-697- Page 2

Schedule

Pre-Construction services during the schematic design phase included numerous studies which helped
inform the project team in determining the phasing of future construction, alternative structural
systems, identification of potential early work and assisted in the development of cost, schedule, and
construction logistics and phasing.

Each Development Phase will be divided into three main Construction Stages as follows:

1. Stage One: Yard Level Structural Work (Foundations, Columns, Shear walls)
2. Stage Two: Platform Level Structural Work (Steel Girders and Pre-Cast Deck)
3. Stage Three A: Below Platform Level Work (MEP Systems)
4. Stage Three B: Above Platform Level Work (Topping Slabs and Waterproofing)

*Note, stage 3A and 3B will be conducted simultaneously

The Project Schedule, dated March 4, 2016, provided within Turner’s Schematic Design Assessment
Report, indicates the construction duration of each of the three phases, but does not include start and
completion dates.

The following durations are noted within the Schedule:

Description of Work Duration

Phase 5
Footings, Columns, and Foundation Walls 150 days
Steel and Pre-cast 105 days
Structural Topping Slab and Waterproofing 115 days
SOFP, MEP, and Lighting 115 days

Phase B6 / 7
Footings, Columns, and Foundation Walls 420 days
Upper Retaining Wall 135 days
Steel and Pre-cast 80 days
Structural Topping Slab and Waterproofing 165 days
SOFP, MEP, and Lighting 120 days

Phase B8 / 9 / 10
Footings, Columns, and Foundation Walls 715 days
Steel and Pre-cast 195 days
Structural Topping Slab and Waterproofing 145 days
SOFP, MEP, and Lighting 165 days

In our opinion, the projected construction term seems achievable for a project of this type and scope
provided that there are no hold-ups due to any unforeseeable circumstances, such as strikes, severe
weather, and material shortages.

December 12, 2018 25-697- Page 3

We have requested an updated Project Schedule reflecting the projected start and completion dates of
each phase.

Budget

The Schematic Estimate developed by Turner Construction, dated March 4, 2016 provides the
following breakdown of the platform costs:

Description Budget Amount Cost/SF

Platform B5
Building System $ 16,428,581 $ 511.05
Site Work 2,969,969 92.39
Design/Estimating Contingency 969,900 30.17
Construction Contingency 969,900 30.17
General Conditions, Insurance, Fee 6,797,160 211.44

Construction Cost Totals $ 28,135,510 $ 875.21

Capital Improvement Taxes $ 606,404 18.86

Platform B6/B7
Building System $ 27,325,512 $ 455.01
Site Work 5,843,091 97.30
Design/Estimating Contingency 1,658,400 27.61
Construction Contingency 1,658,400 27.61
General Conditions, Insurance, Fee 9,984,265 166.25

Construction Cost Totals $ 46,469,668 $ 773.79

Capital Improvement Taxes $ 1,036,859 17.27

Platform B8/B9/B10
Building System $ 63,427,198 $ 577.22
Site Work 8,296,678 75.50
Design/Estimating Contingency 3,586,200 32.64
Construction Contingency 3,586,200 32.64
General Conditions, Insurance, Fee 19,819,533 180.37

Construction Cost Totals $ 98,715,809 $ 898.37

Capital Improvement Taxes $ 2,242,107 20.40

December 12, 2018 25-697- Page 4

Based on costs and floor areas reported on the Turner Schematic Estimate, dated March 4, 2016, the
overall Turner estimated cost of the 202,087 square foot platform, is $173,320,987 or $858/ft2. This
estimate appears to be reasonable and in line with similar projects constructed at that time in 2016. We
will not have a true understanding of the budget until we review all of the construction documents and
have a discussion with Turner Construction regarding some of their assumptions. Taking inflation and
increased labor and material costs during the last three years into consideration, today’s number would
clearly be higher (10%+/-).

It should be noted the following additional costs not included in the above budgets are directly part of
the platform and building costs:

Building System B5 Phase B6/B7 Phase B8/B9/B10 Phase Total

LIRR Force Account Costs 6,000,000 7,000,000 12,000,000 25,000,000
LIRR Deadheading Costs 5,000,000 7,000,000 9,000,000 21,000,000
LIRR Liaison 800,000 1,200,000 2,400,000 4,400,000
Subtotal LIRR 11,800,000 15,200,000 23,400,000 50,400,000

Documentation

Prior to our Tri-Party Meeting, the following documents were provided for review:

1. Plans & Specifications

a. 60% LIRR Plans Submission, dated October 26, 2018

b. Schematic Design Assessment Drawings, dated March 4, 2016
c. Demolition Drawings – 700 Atlantic Avenue, dated February 10, 2017
d. Demolition Drawings – 728 Atlantic Avenue, dated February 10, 2017

2. Project Construction Schedule

3. Hard Cost Budgets

a. Turner Schematic Estimate, dated March 4, 2016

b. Platform and Design Budgets

December 12, 2018 25-697- Page 5

We have requested the following documents to be submitted for our review:

1. Updated Plans and Specifications

2. Updated Construction Budget
3. Updated Hard Costs
4. Geotechnical Engineering Report
5. Soil Borings and Analysis
6. Architect’s and Engineer’s Design Certification Letters
7. Topographic Site Survey
8. Consolidated Edison Company of New York, Inc. Gas and Electric Service Determination
Letters
9. Permits
10. Zoning Approval
11. Flood Hazard Zone and Elevation Certificate
12. Professional of Record Agreements
13. Construction Manager’s General Contract
14. Project Directory and Resumes
15. LEED Documentation

Conclusion

There is currently work underway on site to complete the permanent storage yard work. This work
consists of sub grade infrastructure placement, track work including work on new entry portals at the
east and west ends of the site, employee facility buildings, an electrical sub-station, and circulation and
egress elements. In addition, foundations at the southern end of the site associated with the future
platform construction are included during this stage to facilitate future construction. The work is
scheduled to be completed by June 2019 which will complete all contract work with the LIRR.

Overall, our initial impressions are that the pre-construction services are progressing in a productive
manner, and the Development Team appears to be knowledgeable and experienced in similar
construction projects of this type.

December 12, 2018 25-697- Page 6

If you have any questions, please call.

Very truly yours,

Jones Lang LaSalle Americas, Inc. (JLL)

James G. Cockinos, AIA

Senior Vice President - Construction

JGC: jgc

cc: US Immigration Fund

Attn: Mark Giresi E-mail: mark@usifund.com
Manny P. Kratsios

December 12, 2018 25-697- Page 7