TRUMP October 4, 2012 R, Donahue Peebles Chairman & CEO The Peebles Corporation 600 Madison Avenue - 24" Floor New York, NY 10022 Dear Mr, Peebles, We are excited about the opportunity to work with you and your team on establishing what | knov wil be the preeminent hotel and residential project in downtown New York. The site and the initial design ae in ine with the Trump Kotel Collection brand and we look forward to assisting with the project's aiecess, The Trump Organization's decades of experience in development and residential sales, our public relations capabilities, our proven track record in operating world-class hotels and our shared eetues with The Peebles Corporation makes us the premier partner for 80 South Street. ‘We have taken into consideration our discussions over the past few weeks and propose tne following which we believe maximizes the economic value of the project: = 105-Key Luxury Hotel with related amenities 34 Floors of Trump Branded Residential Units © Mixof 1 BR, 2BR, 3BR and SBR based on the above programming, which is set forth in the attached enclosure, we have considered the Francial performance of a Trump operated hotel as well as the Trump branded Residences and conservatively project: © Hotel Stabilized ADR: $ 556.63 OCC: 85% (Year 4) Hotel Stabilized NOI: $ 5,190,912 (Year 4) «Residential Average Price Per Square Foot: $2,099 (an approximately 15-20% market premium) 'h.10-year pro forma and residential assumptions are set forth in more deta in the attached enclosure, As highly experienced developers, we understand the intricacies of developing iconic mixed-use assets such a this project. Our highly competent in-house development team and the entire Trump family wil be intimately involved throughout the entire development process - from preliminary concept and programming through to hotel opening. Our hands-on approach ensures our partners are benefitting {without additional cost) from our development experience and Industry relationships which lead to cost savings and maximum efficiencies for both the hotel and residential components of the project. The following are examples of where our NYC based development team can add significant value:e assist with preliminary program development, including overall design philosophy, with consideration of the financial potential of the projec within economic and zoning constraints. «Assist with preliminary conceptual design process to implement the program requirements. Financial Projections ‘® Assist with preliminary development budgets and pro-forma statements. ‘Technical Services © Work with the design team to assist in the preparation of detailed architectural design and schematic plans while establishing major building systems, finishes, operational needs, other design criteria, and applicable code requirements. © Work with the applicable MEP, Structural, Landscape, Interior Design and other consultants in preparation of detailed schematic design drawings including: civil, architectural, structural, mechanical, electrical, plumbing, Ivanka inspired interior design, security and specialty design © Assist the interior designers with design philosophy, selection of finishes, and FF & E elements to emphasize the project’s unique personality within the Trump brand. «Recommend and assist in the selection process of outside consultants including Master Land Planners, Architects, Engineers, Specialty Consultants, Interior Designers, and Construction Teams, «Assist with development of phasing and scheduling requirements based on site conditions and economic considerations. «Review and comment on the design development plans to achieve project goals, adjust for schedule impacts, availability of systems and materials, cost implications, logistics and other potential problems. in addition to our development capabilities, The Trump name consistently adds tremendous cache to its projects and offers intangible value in many others arenas. Trump, unlike other brands, benefits from Significant. media exposure and garners attention from the world’s most renowned publications including Financial Times, Wall Street Journal, Condé Nast Traveler, and Vanity Fair. Our public relations machine bolsters the efforts of our development partners in providing hundreds of thousands of annual impressions. The entire Trump family wil personally promote the project through media appearances, interviews, social networking and through our own personal networks driving recognition and value to the project. [As a pioneer of branded residences and a brand that signifies sophistication, quality and luxury the Trump brand provides each of its developments with several competitive advantages which translate into increased sale price per square foot and increased absorption velocity. Trump continuously garners a 15 to 30% premium on residential sales pricing compared to our competitors. In fact, the Trump International Hotel Las Vegas is currently commanding a 60% - 123% premium on a price per square foot basis compared to the other branded products in the Las Vegas market and owns the top three spots in sponsor sales, hard contracts and re-sales in the market. The following advantages are the driver behind such premiums: © Trust: Buyers trust the Trump brand and believe their investment is safe based on the brand and its historyNumber of Keys 105 Loss Factor: 30%, HOTEL PROGRAM, ‘Available GFA est Floor ersr_| _GRosssF 8218 Lobby 3400 2,000 Residential Lobby 10 1,300 Lobby Lounge/ Bar/ Business Center 78 1,120 Retail 700 1,000 0H, 1959 2,798 Total: 5,753 3.218 Second Foot DE OH [ s.oss: 7237 Total 5,056 7237 ‘Third Floor 37 OH 5,068 7237 Tool | 5.066 7237 Fourth Floor mar Banquet 5,066 7237, Total 5,066 7237 fifth Floor 37 Soa 2,380 3.400 Fitness 840 1,200 Banguet Kitchen 1426 2,037, ‘Mechanical (under poo!) 420 600 5.065 7231 s7a2 itchen [200 1,000 [ signature Restaurant/B 3.347 4782 Pool Area 2250 (Outside) Total: 4087. 5,782 Notes: