This is a confidential memorandum intended solely for your limited use and benefit in determining

whether you desire to express any further interest in the financing of 160 East 48th Street (“The
Buchanan” or the “Property”) This memorandum has been reviewed by representatives of Madison
Realty Capital (the “Sponsor”). It contains selected information pertaining to the Property and does
not purport to be all-inclusive or to contain all of the information that prospective investors may
desire. It should be noted that all financial projections are provided for general reference purposes
only in that they are based on assumptions relating to the general economy, competition, and other
factors beyond the control of Sponsor and, therefore, are subject to material variation. Additional
information and an opportunity to inspect the Property and plans will be made available to
interested and qualified investors. Neither Sponsor, Jones Lang LaSalle, nor any of their respective
officers nor employees have made any representation or warranty, expressed or implied, as to the
accuracy or completeness of this memorandum or any of its contents, and no legal commitments or
obligations shall arise by reason of this memorandum or any of its contents.

Sponsor expressly reserves the right, at its sole discretion, to reject any or all expressions of
interest or offers to invest in the Property and/or to terminate discussions with any entity at any time
with or without notice. Sponsor shall have no legal commitment or obligation to any entity reviewing
this memorandum or making an offer to invest in the Property unless and until a written agreement
satisfactory to Sponsor has been fully executed, delivered, and approved by Sponsor and any
conditions to Sponsor’s obligations thereunder have been satisfied or waived. By receipt of this
memorandum, you agree that this memorandum and its contents are of a confidential nature, that
you will hold and treat it in the strictest confidence, and that you will not disclose this memorandum
or any of its contents to any other entity without the prior written authorization of Sponsor, nor will
you use this memorandum or any of its contents in any fashion or manner detrimental to the interest
of Sponsor or Jones Lang LaSalle. It is essential that all parties to real estate transactions be aware
of the health, liability and economic impact of environmental factors on real estate. Jones Lang
LaSalle does not conduct investigations or analyses of environmental matters and, accordingly,
urges its clients to retain qualified environmental professionals to determine whether hazardous or
toxic wastes or substances (such as asbestos, PCBs, and other contaminants or petrochemical
products stored in underground tanks) or other undesirable materials or conditions are present at
the Property and, if so, whether any health danger or other liability exists. Such substances may
have been used in the construction or operation of buildings or may be present as a result of
previous activities at the Property. Various laws and regulations have been enacted at the federal,
state and local levels dealing with the use, storage, handling, removal, transport, and disposal of
toxic or hazardous wastes and substances. Depending upon past, current, and proposed uses of
the Property, it may be prudent to retain an environmental expert to conduct a site investigation
and/or building inspection. If such substances exist or are contemplated to be used at the Property,
special governmental approvals or permits may be required. In addition, the cost of removal and
disposal of such materials may be substantial. Consequently, legal counsel and technical experts
should be consulted where these substances are or may be present.

No representation or warranty is being made by Sponsor or Jones Lang LaSalle with respect to the
Property’s compliance with any applicable statutes, laws, ordinances, rules, regulations,
requirements and/or codes (collectively, the “Laws”). It is expressly understood that it is the
responsibility of any prospective investor to investigate whether or not the Property is in compliance
with the Laws and such prospective investor will be relying strictly and solely upon its own
inspections and examinations and the advice and counsel of its own consultants, agents, legal
counsel and officers with respect to the condition of the Property and its compliance with the Laws.

Disclaimer JLL 2
 THE BUCHANAN
NEW YORK, NY
-
VALUE-ADD JOINT VENTURE EQUITY OPPORTUNITY
IN MANHATTAN’S MIDTOWN EAST NEIGHBORHOOD
Executive Summary 5

Sponsor Overview 14

Property Overview 21

Project Overview 26

Market Overview 33

Appendix: Floor Plans 49

5
JLL, engaged as exclusive advisor to Madison Realty Capital (“MRC” or the “Sponsor”), is pleased to request
proposals for $99.7 million in joint venture equity to facilitate the acquisition and repositioning of The Buchanan
(the “Property”), a 16-story, 289 unit pre-war rental building that includes four office suites and approximately
13,648 square feet of prime retail space. The Property is located on Third Avenue, between 47th and 48th Street in
Manhattan’s Midtown East neighborhood.
Built in 1928 and owned by a family trust since 1959, the Property is a 297,703 gross square foot mixed-use complex consisting of five
separate interconnected mid-rise towers surrounding a large garden courtyard. The Property contains 289 residential units, 69% of
which are market rate, 25% rent stabilized, and 6% rent controlled. The unit mix consists of 31 large studios (437 square feet), 197
one bedroom units (752 square feet), 60 two bedroom units (1,205 square feet), and one three bedroom unit (1,533 square feet) with
ceiling heights of approximately 9’3’’ and outdoor terraces for penthouse units. The Property also includes 13,648 square feet of retail
space, 2,524 square feet of office space and 139,000 square feet of excess development rights.
Given existing inefficiencies such as oversized unit layouts, elevated operating expense levels, and in-place rents well below market
rates, the investment presents an opportunity to acquire an underperforming multi-family mixed-use Property located within a highly
desirable and liquid submarket with significant growth potential. Following the acquisition, the Sponsor will implement a detailed
business plan that involves the following:
• Renovating and reconfiguring 100% of the market rate units as they become vacant
• Pursuing 51 tenant buyouts of rent stabilized units (targeting 56% of the 91 rent regulated units over a 3 year period), and then
renovating and reconfiguring each unit
• Implementing a building wide capital improvement plan to enhance operating efficiencies and marketability of the Property
• Repositioning the existing office space into retail
• Re-leasing the existing retail space at market
• Conducting a feasibility study to assess further development potential or explore the possibility of a sale of the excess air rights
The residential space is currently 93% occupied and is expected to be 87% occupied at close as free market units roll during the
contract period, allowing the Sponsor to immediately begin renovations on 37 units

Property Snapshot
Address: 160 East 48th Street

Midtown East,
Location:
New York, NY

Floors: 16

Residential Units: 289

Fair Market Units: 198

Rent Stabilized Units: 73

Rent Controlled Units: 18

Commercial Units: 14

Property Gross SF: 297,703

Commercial Net SF*: 16,172

*Includes 13,648 SF of retail and 2,524 SF of office

Section 1: Executive summary JLL 6

The Sponsor is requesting a $99.7 million joint-venture equity investment with a five year target hold. The
limited partner will be contributing 90% of the required equity.

Equity Request
Closing Date 2/11/2016
Closing Date Extension Option 3/14/16
Total Costs $316,640,000
Equity Request $99,741,600
Investment Ratio 90% / 10%
Investment Term 5 Years

Sources & Uses

Sources of Capital Amount Per GSF Per Unit % of Total
Debt $205,816,000 $691.35 $679,261 65.00%
Equity $110,824,000 $372.26 $365,756 35.00%
LP Equity (90%) $99,741,600 $335.04 $329,180 31.50%
Sponsor Equity (10%) $11,082,400 $37.23 $36,576 3.50%
Total Sources $316,640,000 $1,064 $1,045,017 100.00%

Uses of Capital Amount Per GSF Per Unit % of Total

Purchase Price $270,000,000 $906.94 $891,089 85.27%
Closing Costs $1,620,000 $5.42 $5,347 0.51%
Sponsor Acquisiton Fee $4,050,000 $13.60 $13,366 1.28%
Unit Renovations $18,000,000 $60.46 $59,406 5.68%
General CapEx $3,000,000 $10.08 $9,901 0.95%
Contingency (5%) $1,100,000 $3.69 $3,630 0.35%
Soft Costs $3,570,000 $11.99 $11,782 1.13%
Tenant Buyout Costs $4,180,000 $14.02 $13,795 1.32%
Financing Costs $9,020,000 $30.30 $29,769 2.85%
Interest Reserve $2,100,000 $7.05 $6,931 0.66%
Total Uses $316,640,000 $1,064 $1,045,017 100.00%

Section 1: Executive summary JLL 7

Section 1: Executive summary JLL 7
Exit Analysis
2021 EGI $25,588,189 $25,588,189 $25,588,189 25,588,189 25,588,189
(Less: Operating Expenses) ($6,357,376) ($6,357,376) ($6,357,376) ($6,357,376) ($6,357,376)
2021 NOI $19,230,812 $19,230,812 $19,230,812 $19,230,812 $19,230,812

Exit Cap Rate 3.75% 4.00% 4.25% 4.50% 4.75%

Gross Sales Proceeds $512,822,000 $480,770,000 $452,490,000 $427,351,000 $404,859,000

(Less: Sales Costs) ($20,512,880) ($19,230,800) ($18,099,600) ($17,094,040) ($16,194,360)
Net Sales Proceeds $492,309,120 $461,539,200 $434,390,400 $410,256,960 $388,664,640
Net CF $38,801,141 $38,801,141 $38,801,141 $38,801,141 $38,801,141

Less: Senior Debt Repayment ($205,959,889) ($205,959,889) ($205,959,889) ($205,959,889) ($205,959,889)

Less: Equity ($110,810,000) ($110,810,000) ($110,810,000) ($110,810,000) ($110,810,000)
Net Profit
Net Profit $214,340,371 $183,570,451 $156,421,651 $132,288,211 $110,695,891
Deal Level IRR 25.2% 22.8% 20.4% 18.1% 15.9%
Deal Level Multiple 2.93x 2.66x 2.41x 2.19x 2.00x

Section 1: Executive summary JLL 8

Section 1: Executive summary JLL 8
Project Budget
Acquisition Costs Amount Per GSF Per Unit % of Total
Purchase price $270,000,000 $906.94 $891,089 85.27%
Closing Costs $5,665,000 $19.03 $18,696 1.79%
Total Acquisition Costs $275,665,000 $925.97 $909,785 87.06%

Hard Costs
General Capex $3,000,000 $10.08 $9,901 0.95%
Renovations $18,000,000 $60.46 $59,406 5.68%
Contingency $1,100,000 $3.69 $3,630 0.35%
Total Hard Costs $22,100,000 $74.24 $72,937 6.98%

Soft Costs
Legal & Prof. Fees $150,000 $0.50 $495.05 0.05%
Architects & Engineering $280,000 $0.95 $924 0.09%
Project Manager $250,000 $0.84 $825 0.08%
General Overhead $100,000 $0.34 $330 0.03%
Inspections & Testing $70,000 $0.24 $231 0.02%
Marketing $100,000 $0.34 $330 0.03%
Interior Design $40,000 $0.12 $132 0.01%
Permits & Fees/Expeditor $110,000 $0.38 $363 0.04%
Developer Fee $1,110,000 $3.71 $3,663 0.35%
Violations $30,000 $0.10 $99 0.01%
Leasing Costs $1,230,000 $4.12 $4,059 0.39%
Contingency $110,000 $0.37 $363 0.03%
Total Soft Costs $3,580,000 $12.01 $11,815 1.13%

0.00%
Buyout Costs $4,175,000 $14.02 $13,779 1.32%

Financing Costs
Lender Legal $150,000 $0.50 $495 0.05%
Title Insurance $410,000 $1.38 $1,353 0.13%
Lender Origination Fee $2,060,000 $6.92 $6,799 0.65%
Debt & Equity Brokerage Fee $2,060,000 $6.92 $6,799 0.65%
Mortgage Recording Tax $4,340,000 $14.58 $14,323 1.37%
Interest Reserve $2,100,000 $7.05 $6,931 0.66%
Total Financing Costs $11,120,000 $37.35 $36,700 3.51%

Total Costs $316,640,000 $1,064 $1,045,017 100.00%

Section 1: Executive summary JLL 9

Section 1: Executive summary JLL 9
 The Sponsor plans to close on the asset in Q1 2016 and sell the Property in Q1 2021 upon full recognition of operating
expense savings and revenue growth. The Sponsor anticipates the Property will generate an NOI of approximately $19.2
million at exit, representing an 148% increase over in-place NOI.

In Place
Year Ending 2016 2017 2018 2019 2020 2021
Project Year 0 1 2 3 4 5

Number of Buyouts 0 16 17 18 - -
Number of FM Renovations 0 196 2 - - -
Total Units Renovated 0 212 231 249 249 249

Revenues
Residential Rental Income $11,595,135 $10,254,585 $17,676,803 $19,653,385 $21,025,282 $22,272,460
Commercial Rental Income $1,999,819 $1,925,486 $2,036,839 $2,630,436 $3,562,527 $3,747,776
Reimbursable Income $180,678 $180,678 $148,907 $151,485 $202,727 $214,679
Other Income $30,000 $40,000 $154,500 $159,135 $163,909 $168,826
Total Gross Income $13,805,631 $12,400,749 $20,017,050 $22,594,442 $24,954,445 $26,403,742
Residential Vacancy ($276,113) $0 $0 ($308,062) ($56,746) ($445,449)
Commercial Vacancy $0 $0 $0 $0 ($76,959) ($106,066)
Collection Loss $0 ($124,007) ($200,170) ($225,944) ($249,544) ($264,037)
Total Effective Gross Income $13,529,519 $12,276,742 $19,816,879 $22,060,435 $24,571,195 $25,588,189

Operating Expenses
Real Estate Taxes ($2,898,263) ($3,031,960) ($3,131,846) ($3,220,307) ($3,497,269) ($3,781,340)
Insurance ($141,873) ($141,873) ($146,129) ($150,513) ($155,029) ($159,680)
Fuel / Gas / Steam ($307,263) ($307,263) ($316,480) ($325,975) ($335,754) ($345,827)
Electric ($329,981) ($229,981) ($156,880) ($111,586) ($114,934) ($118,382)
Water & Sewer ($208,746) ($208,746) ($215,008) ($221,459) ($228,102) ($234,945)
Payroll & Burden ($1,262,267) ($1,262,267) ($1,300,135) ($821,131) ($459,502) ($473,287)
Repairs & Maintenance ($151,500) ($151,500) ($156,045) ($160,726) ($165,548) ($170,515)
General & Administrative ($37,875) ($37,875) ($39,011) ($40,182) ($41,387) ($42,629)
Reserves ($60,600) ($60,600) ($62,418) ($64,291) ($66,219) ($68,206)
Legal / Professional ($65,000) ($60,600) ($62,418) ($64,291) ($66,219) ($68,206)
Elevator ($75,000) ($75,000) ($77,250) ($79,568) ($81,955) ($84,413)
Other ($37,584) ($37,584) ($38,711) ($39,873) ($41,069) ($42,301)
Management ($202,118) ($202,118) ($594,506) ($661,813) ($737,136) ($767,646)
Total Operating Expenses ($5,778,070) ($5,807,367) ($6,296,840) ($5,961,713) ($5,990,123) ($6,357,376)

Net Operating Income $7,751,449 $6,469,374 $13,520,039 $16,098,722 $18,581,072 $19,230,812

Yield On Cost 2.9% 2.0% 4.3% 5.1% 5.9% 6.1%

Section 1: Executive summary JLL 10

Section 1: Executive summary JLL 10
Upside Through Unit Reconfigurations
The Property’s apartments are not currently configured to
maximize rental income, creating an opportunity to significantly
increase rents by adding bedrooms across each unit line. While
three bedroom units across the Property’s competitive set are on
average 258 square feet larger than the Property’s two bedroom
units, they command rents in excess of $9,300 per month,
representing a 36% pricing premium to the Property’s largest units.
This same rental premium also exists between the Property’s one
bedroom units and comparable two bedroom units in the market
which are on average only 76 square feet larger. With a target
demographic of young families and professionals seeking two and
three bedroom apartments that offer close proximity to the Midtown
office district, the UN headquarters and Grand Central, there exists
an excellent opportunity to capitalize on these pricing premiums
without incurring major renovation costs.
Immediate Commencement of Renovations
There will be 37 vacant residential units at closing, thereby
allowing the Sponsor to immediately commence renovations. All
198 market rate units will roll within the first 18 months post
closing. In addition, the Sponsor plans to reposition 2,524 square
feet of` office space into retail that is either vacant or occupied by
month-to-month leases. Lastly, there is 1,200 square feet of retail
space that is currently occupied by month-to-month tenants at
below market rent levels.
Attractive Project Returns
The Project is expected to generate equity returns of $156.4
million upon a sale in 2021. This corresponds to a deal level IRR
of 20.4%, a yield on cost of 6.1%, and an equity multiple of
2.41x.
Section 1: Executive summary
Favorable Rent Restricted Rental Levels
On average, “rent stabilized” tenants currently pay $2,470 a month
for two bedroom units and $1,931 a month for one bedroom units.
With an average of over $70,000 of renovations planned per unit,
the majority of these units will cross the legal rent threshold,
allowing the Sponsor to charge market rent one year from
renovation. Furthermore, “rent controlled” tenants currently pay
$3,013 a month for two bedroom units and $2,018 a month for one
bedroom units, which is even higher than the in place rent
stabilized tenants. With the Sponsor only planning to execute
buyout agreements with 56% of the rent stabilized tenants, these
extremely high in-place rents significantly improve the probabilities
of successfully buying out tenants quickly.
Relevant Sponsorship Experience
The Property will benefit from an experienced Sponsor who has
completed over 300 debt and equity transactions with a face value
of $4.0 billion in the multifamily, retail, office and light industrial
sectors. In the last five years, the Sponsor has acquired in excess
of $1.1 billion worth of real estate. The Sponsor has a proven track
record of successfully executing similar business plans throughout
a number of investment opportunities, more specifically, executing
a strategy almost identical to that of the Project. 361 East 50th
Street, is a mixed-use elevator building located a few blocks from
the Property. The Sponsor has fully renovated and reconfigured 28
out of 44 apartments and increased the residential rent roll by 64%
within the first year of ownership.
Additional Value From Air Rights
The Property has approximately 139,000 square feet of un-used
development rights that have not been monetized in the
investment return analysis.
JLL 11
Booming Rental Market Prime Retail
The Property will greatly benefit from the positive rental market The Property is perfectly positioned in Midtown East, with nearly
fundamentals and the limited amount of newly renovated units in 200’ of frontage along Third Avenue plus 145’ of frontage on both
Midtown East. The East Side of Manhattan has historically 47th and 48th Street. As a result of the neighborhood’s established
maintained value due to its long-established reputation and and sophisticated residential population, there are a plethora of
convenience. Rents remain strong within the area as exemplified convenient shopping and dining options. Second and Third
by an average increase of 6% year-over-year for 1-bedroom units. Avenues in the immediate vicinity of the Buchanan are populated
With a current vacancy rate of just 1.54%, Midtown East is poised with a wide range of supermarkets, pharmacies, restaurants and
for additional growth in prevailing rental rates. Significant barriers nightclubs. Some of Manhattan’s most celebrated gourmet
to entry will preserve this acutely low vacancy rate, with high restaurants are located in the neighborhood, catering to the
construction cost, strict zoning regulations, a lack of developable discerning palates of the international community. The Property’s
sites, and soaring land costs all contributing to the dearth of new retail component presents a reliable income stream augmented
rental development. Rents for Manhattan as a whole are also with near-term upside potential. The Property’s retailers enjoy a
performing exceptionally well. In July 2015 median Manhattan significant captive demand base while tenants are provided with
rental prices were the second highest on record. the convenience of in-house retail. All of the Property’s retail suites
are located along high-volume Third Avenue, with the exception of
Primary Residential Location The Sea Fire Grill, which is located along East 48th Street.
The Property enjoys one of the most sought after residential
locations in all of Manhattan. Located in the Turtle Bay
neighborhood in Midtown East, the Property is proximate to
various upscale and affordable eateries, small shops, bars, parks,
as well as the United Nation Headquarters. Furthermore, the
Property is conveniently located blocks from Grand Central
Terminal, providing residents with easy access to neighboring
boroughs and other areas of Manhattan. The median household
income in Midtown East is $122,136, on par with Manhattan’s most
exclusive neighborhoods. This elite population includes a vital mix
of young professionals, working diplomats, empty nesters and
families who enjoy a favorable combination of convenience and
international flavor provided by the neighborhood.

Section 1: Executive summary JLL 12

The offering to invest in the Property is being distributed exclusively by JLL to a select group of qualified institutional investors. The
prospective investor(s) will be selected by the Sponsor in consultation with JLL at its sole discretion. For more information on this
transaction, please contact:

Jones Lang LaSalle Equity Placement Contacts

Aaron Appel Mark Fisher Jonathan Schwartz Mason Powell

Managing Director
Capital Markets Group
aaron.appel@am.jll.com
+1 212 812 6459
+1 917 797 1253 (cell)
Senior Vice President
Capital Markets Group
mark.fisher@am.jll.com
+1 212 812 5966
+1 914 740 3808 (cell)
Senior Vice President
Capital Markets Group
jonathan.schwartz@am.jll.com
+1 212 812 6567
+1 516 672 1247 (cell)
Associate
Capital Markets Group
mason.powell@am.jll.com
+1 212 812 6447
+1 202 669 0519 (cell)

Patrick Cotter
Analyst
Capital Markets Group
patrick.cotter@am.jll.com
+1 212 812 5967
+1 240 997 4977

JLL 13
Section 1: Executive summary JLL 13
14
 Madison Realty Capital (MRC)
Madison Realty Capital is a leading real estate investment management firm based in Manhattan, New York. Through the firm’s
vertically integrated structure, MRC has closed in excess of $4.0 billion of real estate debt and equity transactions in the multifamily,
retail, office and industrial sectors. The firm was co-founded by Brian Shatz and Joshua Zegen in 2004 to pursue U.S. real estate
investment opportunities in the middle market. MRC aims to provide institutional investors with superior risk-adjusted returns with
downside principal protection.

Brian Shatz
Managing Principal, Co-Founder
Mr. Shatz co-founded Madison Realty Capital in 2004 and is responsible for risk and portfolio management, raising institutional
capital, and asset management. Since MRC's inception, Mr. Shatz has closed real estate transactions totaling in excess of $4.0
billion. Mr. Shatz serves on several investment committees related to both the debt and equity platforms. Prior to co-founding MRC,
he established Bluegrass Growth Fund Partners, LLC, a private investment fund which focused on investing in structured equity and
debt investments for U.S. public companies. Mr. Shatz began his career at BlackRock where he worked closely with fixed income
portfolio managers and developed institutional client relationships with some of the country's largest pension funds. Mr. Shatz
graduated cum laude from Brandeis University with a Bachelor of Arts degree in economics.

Joshua Zegen
Managing Principal, Co-Founder
Mr. Zegen co-founded Madison Realty Capital in 2004 and is responsible for overseeing the origination and structuring of all of
MRC's investment activities, as well as raising institutional capital and portfolio management. Since MRC's inception, Mr. Zegen
has closed real estate transactions totaling in excess of $4.0 billion. At the firm, Mr. Zegen serves on several investment
committees related to both the debt and equity platforms. Prior to founding MRC, he founded and was president of Alpine
Commercial Capital, a mortgage advisory firm that successfully closed over $500 million in real estate financings. Prior to forming
Alpine, Mr. Zegen was an investment banker in Salomon Smith Barney's financial sponsors/private equity group where he focused
on leveraged buyouts, equity and debt financings, mergers and acquisitions and private placement transactions. He began his
career as an analyst in Merrill Lynch's debt capital markets division where he executed both mortgage backed and asset backed
debt offerings. He is a co-founder and board member of The New York Private Equity Network ("NYPEN"). Mr. Zegen graduated
cum laude from Brandeis University with a Bachelor of Arts degree in economics.

JLL 15
Section 2: Sponsor
Section overview
1: Executive summary JLL 15
The Sponsor has acquired 35 assets and sold 10 assets throughout New York City since 2011. The acquired
properties have been value-add multi-family opportunities with grade level retail that have required some degree of
renovation in order to drive rents. Assets include both existing buildings and select development opportunities. The
following represents a subset of the most recently acquired assets and realized deals.

Recent MRC Deals

Address Residential Units Commercial Units Buildable SF
361 East 50th Street,
43 7 101,050
New York, NY
157 Suffolk Street,
33 2 22,398
New York, NY
65 North 6th Street,
24 0 37,700
Brooklyn, NY
143-145 West 4th Street,
26 0 21,364
New York, NY
885 Park Avenue,
28 0 57,125
Brooklyn, NY
150 West 84th Street,
20 0 13,260
New York, NY
409-413 Broadway,
20 2 30,669
Brooklyn, NY
1 Hanson Place,
0 4 41,400
Brooklyn, NY
392 Clinton Avenue,
16 0 16,720
Brooklyn, NY
283-285 Graham Avenue,
3 4 11,250
Brooklyn, NY
1419 8th Avenue,
14 1 12,068
New York, NY
350 5th Street,
8 0 6,300
Brooklyn, NY
14 53rd Street / Whale Square,
0 50 398,418
Brooklyn, NY
78 Prospect Park West,
40 0 41,113
Brooklyn, NY
(1) Full track record to be furnished upon request.

247 East 28th Street 157 Suffolk Street 65 North 6th Street

Section 2: Sponsor overview JLL 16

Section 1: Executive summary JLL 16
 Executive Summary
On July 16th, 2014 an affiliate of Madison Realty Capital (“MRC”) closed on the acquisition of a six-story 55,501 SF mixed-use
elevator building (the “Property”) for $40.20 MM. At acquisition, the Property contained 43 residential units1, 7 commercial units and
an additional 45,549 SF of air-rights. The Property is located at 361 East 50th Street within the Midtown East / Turtle Bay
neighborhood of Manhattan and has 85 feet of frontage along East 50th Street and 150 feet of frontage along 1st Avenue.

Business Plan

The business plan was to reposition the Property as a premier luxury residential rental building, capture market rents and drive Net
Operating Income by:
• Renovating and reconfiguring units as they turn into high-end apartments.
• Repositioning and re-leasing retail units upon vacancy at market rents to maximize commercial rental income.
• Pursuing tenant buyouts to capture market rents.
• Enhancing the overall marketability of the Property through a vigorous capex program geared toward minimizing
operating costs and improving the common space and overall curb appeal.
• Conducting a feasibility study to assess further the development potential on top of the existing structure.
(1) A combined unit was divided to bring the current residential unit count to 44

Execution

After closing on the acquisition, MRC immediately began executing on its business plan. Since acquiring the asset MRC has;
• Executed buyout agreements with 9 stabilized tenants at an average cost of roughly $38,000. The average in-place
rent for these stabilized tenants was $1,954.
• Renovated and reconfigured 28 apartments at an average cost of roughly $68,600 per unit. MRC
was able to add at least one bedroom to each unit.
• Leased up all renovated units at market rents ranging from $78 PSF to $97 PSF.

JLL 17
Section 2: Sponsor
Section overview
1: Executive summary JLL 17
Relevant Transaction Experience:
361 East 50th Street Case Study
The next three slides provide before and after floor plans for 361 East 50th Street. The scale of interior work shown in these floor
plans will be similar to the business plan that will be executed at the Buchanan.

Section 2: Sponsor overview JLL 18

Section 1: Executive summary JLL 18
Relevant Transaction Experience:
361 East 50th Street Case Study

Section 2: Sponsor overview JLL 19

Section 1: Executive summary JLL 19
Relevant Transaction Experience:
361 East 50th Street Case Study

Section 2: Sponsor overview JLL 20

Section 1: Executive summary JLL 20
21
Property Description
The Property is a mixed-use elevator building located on Third Avenue extending from East 47th Street to East 48th Street. The building
has 200’ of frontage along the avenue and 145’ of frontage along each of the side streets. There are two entry points that lead into a large
open-air, landscaped courtyard. Residential units are stacked in 5 towers, each serviced by two elevators, one passenger and one service,
and with four units per floor.

The 16-story building, which totals 297,703 gross square feet was constructed in 1928 and offers generous layouts and ceiling heights at
approximately 9’3’’. Residential unit interiors feature pre-war moldings and hardwood floors, and a portion of the units have recently been
renovated with stainless steel appliances, Silestone Kensho kitchen countertops, brushed chrome Kohler bathroom and kitchen fixtures,
and marble bathrooms. Fireplaces are featured in upper floor residences beginning on the 11th floor and nearly 25% of the units contain
functional wood burning fireplaces. The full cellar is currently underutilized with only a portion allocated to commercial use and the balance
used as a laundry room and storage.

At the two entrance points are doormen stations which allow for the drop-off of deliveries and laundry services. The penthouse units include
private outdoor terraces which look over the courtyard. The Property also has 139,097 square feet of additional unused air rights. The
residential unit mix consists of oversized studios, one-bedroom, two-bedroom, and three-bedroom apartments. The commercial portion of
the property includes a portion of the basement and the first floor and is currently occupied by 10 retail tenants and 4 office tenants. The
retail tenancy includes 2 month-to-month tenants, while all 4 office tenants are currently occupying the space on a month-to-month basis.
The retail space is currently 100% occupied with tenants including a restaurant, nail salon, electronics store, and former Capital One bank
branch which has gone dark. The Capital One space totals 3,825 SF and the tenant is current on all rent. The average in-place retail rent is
$138 PSF, representing a significant discount to market.

Residential Unit Type Total Avg. Rent % of Total

Free Market 198 $3,936 69%
Rent Stabilized 73 $2,038 25%
Rent Controlled 18 $2,163 6%
Total Residential Units 289 $3,259 100%

Residential Unit Mix Current Avg. Rent At Exit

0 BR 31 $2,226 31
1 BR 197 $3,057 54
1.5 BR - - 23
2 BR 60 $4,412 77
2.5 BR - - 48
3 BR 1 - 56
Total 289 $3,259 289

Commercial Unit Mix Current Avg. Rent At Exit

Office 4 $47 -
Retail 10 $138 14
Total 14 $124 14

Section 3: Property overview JLL 22

Section 1: Executive summary JLL 22
Site Overview
The Property is a 297,703 gross square foot mixed-use apartment building with 298 residential units, 4 office units, and 10 retail units,
prominently located in the heart of Midtown East, Manhattan, with nearly 200’ of frontage along Third Avenue and 145’ of frontage
along both 47th and 48th Street. The site benefits from its close proximity to the City’s corporate core, Grand Central and the United
Nations Headquarters, which are all just a few blocks away. Located within .25 miles of seven different subway lines, residents are
provided easy access to the rest of Manhattan and neighboring boroughs.

Section 3: Property overview JLL 23

Section 1: Executive summary JLL 23
Background
Rent control regulations were first introduced by the federal government during World War II. New York State chose to continue
this legislation in 1947, intended as a temporary measure to prevent dramatically increasing rents following the war. The laws
were modified and replaced in 1969 by rent stabilization regulations. Over the past decades, the regulations have been revised
and extended numerous times, most recently in July 1997.
Both rent control and rent stabilization guidelines establish the increase in rent that can be charged for a vacant apartment and
for a lease that is renewed by the same tenant. A tenant in an apartment subject to rent control or stabilization cannot be evicted
except under extraordinary circumstances. In general, these laws affect apartment buildings with more than six apartments and
those which receive any of a number of City sponsored real estate tax abatements and/or tax exemptions.

Applicability
Generally, most residential units in apartment buildings in New York City with six or more units that were built before February 1,
1974 are subject to rent-stabilization regulations. Residential units in New York City buildings that were built before February
1947 and have been occupied by the same tenant continuously since before July 1, 1971 are subject to the more stringent rent-
control regulations.
Approximately 1.057 million or 48.2% of the rental stock in New York City as of 2014 are subject to rent control or rent
stabilization laws, which is a decrease from the 70 percent subject to restrictions during the early 1990’s. Of this 1.057 million
rental apartments, approximately 27,000 apartments (2014 Housing and Vacancy Survey) remain under the protection of rent
control laws, a 6.55 percent decrease since 2005.

Tenant Renewal Rights

The rent-stabilization regulations generally restrict the rights of landlords to evict tenants, except on specific grounds as allowed
by law. For units subject to rent-stabilization, leases must be entered into and renewed for one-year
Queens Borough or two-yearArts
Performing terms, at the
Center
tenant's choice.

Rental Increases for Rent-Stabilized Apartments

Degradation Threshold
Every rent-stabilized apartment has a "legal rent", which is the maximum rent that the landlord is allowed to charge for the
apartment. The legal rent increases from time to time due to permissible adjustments that are described below. If the
landlord chooses to rent an apartment for less than the legal rent, the legal rent remains in effect and is used as the basis
for future allowable rents (the difference between the legal rent and the actual rent is referred to as "preferential rent").

Allowable Rental Increases on Renewal Leases

The New York City Rent Guidelines Board sets the maximum allowable one-year and two-year rental increases above
previous legal rents for renewal leases commencing during each fiscal year between October 1 and September 30.

For the fiscal year of October 1, 2015 through September 30, 2016, the maximum allowable renewal lease rental increases
are as follows:

• One-year leases: 0.0%

• Two-year leases: 2.0%

Museum of the Moving Image

Section 3: PropertyOverview
Section 3:Location overview JLL
JLL 2424
 Allowable Rental Increases on Vacant Unit Leases
Tenants renting a rent-stabilized apartment for the first time have the option of either a one-year or two-year lease. The
maximum allowable legal rent for a new lease on a vacant unit is equal to the last legal rent plus the sum of the following:

• For a two-year lease, a vacancy increase of 20%; for a one-year lease, a vacancy increase equal to 18% less the
difference between the guideline percentages applicable to one-year and two-year renewal leases for the current fiscal
year. For the fiscal year from October 1, 2015 through September 30, 2016, the difference between the applicable
percentages is 2.25% (4.50% - 2.25%); therefore the allowable vacancy increase for a one-year lease is 17.75%.
• If the landlord did not collect a permanent vacancy increase within eight years of the new vacancy lease, in addition to
the vacancy increase described in Item 1, the landlord is entitled to an additional vacancy increase equal to 0.6%
multiplied by the number of years since the collection of the last permanent increase.
• If the previous legal rent was less then $300 per month, in addition to the vacancy increases described in Items 1 and
2, the landlord is entitled to increase the rent an additional $100 per month.
• If the previous legal rent was between $300 and $500 per month, the landlord is entitled to collect a vacancy increase
equal to the greater of: (a) the combined vacancy increases described in Items 1 and 2 or (b) $100 per month.

Allowable Rental Increases Due to Individual Apartment Improvements ( IAI )

If a landlord makes an improvement (including installing a new appliance) to a vacant rent-stabilized apartment, the legal rent of
the unit is increased by 1/40th of the cost of the improvement, including installation (or 1/60th in buildings with more than 35
units). If the landlord makes any such improvement to a leased apartment, written consent of the tenant is required in order for
the legal rent to be increased. Queens Borough Performing Arts Center

Allowable Rental Increases Due to Major Capital Improvement s (MCI)

If a landlord makes a qualified building-wide capital improvement, the legal rents of all apartments in the building are increased
by an aggregate amount from 1/84th to 1/96th of the cost of the improvement, including installation, with the increases being
allocated to the individual apartments based on the number of rooms in each. Rental increases due to major capital
improvements must be approved by the New York State Division of Housing and Community Renewal before they become
effective.

Decontrol of Rent Stabilized Apartments

If an apartment is vacated and the legal rent reaches a level of $2,700 per month or more (including the effect of allowable
increases as described above), then the apartment is no longer subject to rent-stabilization regulations.
If the legal rent of an occupied apartment reaches a level of $2,000 per month or more and the tenants‘ federal adjusted gross
income, as reported on their New York State Income Tax returns, have been in excess of $175,000 for each of the two preceding
calendar years, then the apartment is no longer subject to rent stabilization regulations.

Museum of the Moving Image

Section 3: PropertyOverview
Section 3:Location overview JLL
JLL 2525
26
The chart summarizes the in-place unit count, in-place rents, proforma unit count post renovation/buyout, and un-trended proforma
rents post renovation/buyout.

In - Place At Exit (2019)

Average SF Total SF # of Units % of Total Monthly Rent # of Units % of Total Monthly Rent Avg % Rent Growth
Free Market
0 BR 433 9,949 23 7.96% $2,539 26 9.00% $3,905 53.8%
1 BR 753 102,458 136 47.06% $3,632 23 7.96% $5,237 44.2%
1.5 BR 0 0 0 0.00% $0 23 7.96% $5,382 0.0%
2 BR 1,194 45,360 38 13.15% $5,716 73 25.26% $6,733 17.8%
2.5 BR 0 0 0 0.00% $0 48 16.61% $7,442 0.0%
3 BR 1,533 1,533 1 0.35% $9,000 56 19.38% $10,550 17.2%
Subtotal 866 159,300 198 68.51% $4,209 249 86.16% $5,631 33.8%

Rent Stabilized
0 BR 454 3,176 7 2.42% $1,585 4 1.38% $1,665 5.1%
1 BR 758 35,633 47 16.26% $1,931 17 5.88% $2,029 5.1%
1.5 BR 0 0 0 0.00% $0 0 0.00% $0 0.0%
2 BR 1,225 23,266 19 6.57% $2,470 1 0.35% $2,596 5.1%
2.5 BR 0 0 0 0.00% $0 0 0.00% $0 0.0%
3 BR 0 0 0 0.00% $0 0 0.00% $0 0.0%
Subtotal 917 62,075 73 25.26% $2,115 22 7.61% $2,223 5.1%

Rent Controlled
0 BR 435 435 1 0.35% $1,645 1 0.35% $1,729 5.1%
1 BR 715 10,008 14 4.84% $2,018 14 4.84% $2,121 5.1%
1.5 BR 0 0 0 0.00% $0 0 0.00% $0 0.0%
2 BR 1,216 3,647 3 1.04% $3,013 3 1.04% $3,167 5.1%
2.5 BR 0 0 0 0.00% $0 0 0.00% $0 0.0%
3 BR 0 0 0 0.00% $0 0 0.00% $0 0.0%
Subtotal 836 14,090 18 6.23% $2,264 18 6.23% $2,379 5.1%

Total / WAV 878 235,465 289 100.00% $3,541 289 100.00% $4,538 28.2%

Commercial
Office 631 2,524 4 28.57% $7,792 4 28.57% $31,550 304.9%
Retail 1,365 13,648 10 71.43% $156,860 10 71.43% $303,179 93.3%

Total / WAV 1,250 16,172 14 100.00% $133,595 14 100.00% $260,785 95.2%

*Assumed 1.00% growth for Rent Stabilized and Rent Controlled units through exit

Section 4: Project overview JLL 27

Section 1: Executive summary JLL 27
The Sponsor plans to renovate and reconfigure the residential units and anticipates adding an additional bedroom to the majority of the lines
in order to maximize the apartment layouts and capitalize on market rents. The Sponsor will also initiate a capital expenditure program that
will include upgrading the elevators, courtyard, gym, storage, bike storage, hallway corridors, electric, plumbing, intercom and other
mechanical equipment totaling approximately $3,000,000 in hard costs. Unit downtime from renovations will average 5 months. Unit
renovations will total $18,000,000 and will range from a low of $39,000 per unit to a high of $112,000 per unit. The average renovation cost
will be $72,300 per unit, or $90 per square foot. In addition, the Sponsor has budgeted $1,100,000 in total hard costs contingencies.

Renovation Costs Projected Market Rent

Cost of
Current Rooms Converted Floor 1 - Floor 6 - Floor 11 -
Line # of Units Average SF Renovation Per
Layout Added Layout Floor 5 Floor 10 Floor 16
Unit
A 14 2.0 BR 1.0 BR 3.0 BR 1,260 $9,000 $9,075 $9,185 $112,000
B 15 2.0 BR 1.0 BR 3.0 BR 1,073 $9,000 $9,075 $9,185 $104,000
C 10 0.0 BR 0.0 BR 0.0 BR 444 $3,200 $3,275 $3,385 $39,000
D 12 1.0 BR 1.5 BR 2.5 BR 835 $6,250 $6,325 $6,435 $78,000
E 13 1.0 BR 1.0 BR 2.0 BR 767 $5,600 $5,675 $5,785 $70,000
F 12 1.0 BR 1.0 BR 2.0 BR 778 $5,600 $5,675 $5,785 $70,000
G 12 1.0 BR 1.0 BR 2.0 BR 667 $5,600 $5,675 $5,785 $60,000
H 10 1.0 BR 0.0 BR 1.0 BR 693 $4,250 $4,325 $4,435 $62,000
J 12 1.0 BR 1.5 BR 2.5 BR 835 $6,250 $6,325 $6,435 $75,000
K 12 1.0 BR 0.5 BR 1.5 BR 690 $4,500 $4,575 $4,685 $62,000
L 13 1.0 BR 1.5 BR 2.5 BR 844 $6,275 $6,350 $6,460 $80,000
M 11 1.0 BR 0.5 BR 1.5 BR 689 $4,500 $4,575 $4,685 $62,000
N 12 1.0 BR 0.0 BR 1.0 BR 693 $4,250 $4,325 $4,435 $62,000
O 10 1.0 BR 1.0 BR 2.0 BR 667 $5,600 $5,675 $5,785 $60,000
P 12 1.0 BR 1.0 BR 2.0 BR 778 $5,600 $5,675 $5,785 $70,000
Q 13 1.0 BR 1.0 BR 2.0 BR 770 $5,600 $5,675 $5,785 $70,000
R 12 1.0 BR 1.5 BR 2.5 BR 849 $6,250 $6,325 $6,435 $78,000
S 15 0.0 BR 0.0 BR 0.0 BR 433 $3,200 $3,275 $3,385 $39,000
T 13 2.0 BR 1.0 BR 3.0 BR 1,117 $9,000 $9,075 $9,185 $104,000
U 14 2.0 BR 1.0 BR 3.0 BR 1,260 $9,000 $9,075 $9,185 $112,000
Total 247 $18,000,000

* Excludes units 8LM & 13CD. No bedrooms will be added to these units
* Some units have already been renovated and will not need full renovation cost

Section 4: Project overview JLL 28

Section 1: Executive summary JLL 28
100% of the market rate units leases expire by Q3 2017. The Sponsor also plans to buyout a total of 51 of the rent stabilized units in
the first three years and convert said units to market rate units. Below is a lease expiration schedule for the market rate units and a
rent stabilized buyout schedule.

Quarterly
Expiration Total Vacant Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Units Expiring 198 37 0 9 71 75 4 0 1 1
% Expiring 100.00% 18.69% 0.00% 4.55% 35.86% 37.88% 2.02% 0.00% 0.51% 0.51%
Cum % Expiring 18.69% 18.69% 23.23% 59.09% 96.97% 98.99% 98.99% 99.49% 100.00%
0.0 BR 23 6 0 1 6 10 0 0 0 0
1.0 BR 136 23 0 6 52 50 4 0 1 0
2.0 BR 38 7 0 2 13 15 0 0 0 1
3.0 BR 1 1 0 0 0 0 0 0 0 0

Semi Annual
Expiration Total Vacant 7/31/2015 1/31/2016 7/31/2016 1/31/2017 7/31/2017
Units Expiring 198 37 0 80 79 1 1
% Expiring 100.00% 18.69% 0.00% 40.40% 39.90% 0.51% 0.51%
Cum % Expiring 18.69% 18.69% 59.09% 98.99% 99.49% 100.00%
0.0 BR 23 6 0 7 10 0 0
1.0 BR 136 23 0 58 54 1 0
2.0 BR 38 7 0 15 15 0 1
3.0 BR 1 1 0 0 0 0 0

Rent Stabilized Unit Buyout Schedule & Estimated Buyout Costs

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
2/28/2017 2/28/2018 2/28/2019 2/29/2020 2/28/2021 2/28/2022 2/28/2023 2/29/2024 2/28/2025 2/28/2026
Number of Buyouts 16 17 18 - - - - - - -
Number of FM Renovations 196 2 - - - - - - - -
Total Renovations 212 19 18 - - - - - - -
Cumulative Renovations 212 231 249 249 249 249 249 249 249 249
% Renovated 85.1% 92.8% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Annual Buyout Cost $625,000 $1,950,000 $1,600,000 - - - - - - -

Section 4: Project overview JLL 29

Section 1: Executive summary JLL 29
Commercial Overview
The Property’s commercial portion is comprised of 14 total units including 4 professional office suites and 10 retail units.

Office
Current Current Current Market Market Market
Lease Extension Total Monthly Annual Rent Monthly Annual Rent
Tenant Expiration Option SF Rent Rent PSF Rent Rent PSF
SHUM CC MD &
11/30/2016 None 663 $3,000 $36,000 $54 $8,288 $99,450 $150
LAUCHANGO
RAUL CACERES 11/30/2016 None 718 $2,192 $59,856 $86 $8,975 $107,700 $150
MABLE MERCER
11/30/2016 None 718 $2,600 $48,000 $69 $8,975 $107,700 $150
FOUNDATION
VACANT - None 425 - - - $5,313 $63,750 $150
Subtotal / WAV 2,524 $7,792 $143,856 $58 $31,550 $378,600 $150

Retail
Current Current Current Market Market Market
Lease Extension Total Monthly Annual Rent Monthly Annual Rent
Tenant Expiration Option SF Rent Rent PSF Rent Rent PSF
(1) 5-year
AP & SS RESTAURANT
10/30/2026 option after 3,450 $25,000 $300,000 $87 $71,875 $862,500 $250
GROUP LLC
2026

FLORA LOUIS INC 7/31/2017 None 660 $15,988 $191,860 $291 $16,500 $198,000 $300

SEIGO RETAIL None

3/31/2017 438 $10,160 $121,918 $278 $10,950 $131,400 $300
CORPORATION Remaining

762 FOOD CORPORATION 4/30/2018 None 1,850 $19,467 $233,603 $126 $38,542 $462,500 $250

764 3RD AVE. LIQUORS None

10/31/2019 650 $11,608 $139,300 $214 $16,250 $195,000 $300
INC Remaining

STAY CONNECTED, INC 4/30/2022 None 850 $11,935 $143,222 $168 $21,250 $255,000 $300

NANCY YOON JEWELRY

MTM None 150 $2,806 $33,666 $224 $3,750 $45,000 $300
CORPORATION
FASHION FAIRLY NAILS
7/31/2024 None 725 $12,500 $150,000 $207 $18,125 $217,500 $300
SPA, INC

JIN PANG SHON MTM None 1,050 $7,000 $84,000 $80 $26,250 $315,000 $300

(2) 5-year
CAPITAL
9/30/2017 options after 3,825 $40,396 $484,750 $127 $79,688 $956,250 $250
ONE\GREENPOINT BANK
2017
Subtotal / WAV 13,648 $156,860 $1,882,319 $138 $303,179 $3,638,150 $267

Section 4: Project overview JLL 30

Section 1: Executive summary JLL 30
There is 8,623 square feet of commercial space expiring by 2019. Two of the current tenants have month-to-month leases, and the
Sponsor plans to convert the existing office space into retail in order to fully capitalize on market rate rents.

Commercial Rollover Schedule

Year 2016 2017 2018 2019 2020
Expiring Square Feet 1,200 4,923 1,850 650 -
Expiring Rent PSF $152 $232 $126 $214 -

6,000 $250
$232

$214
$230
5,000
$210

$190
4,000 $168
$170
$152
3,000 $150
$126
$130
2,000
$110

$90
1,000
$70

0 $50
2016 2017 2018 2019 2020 2021 2022

Expiring Square Feet Expiring Rent PSF

Section 4: Project overview JLL 31

Section 1: Executive summary JLL 31
 The Sponsor has identified two opportunities to significantly reduce operating expenses over the 5 year term of the
investment:

Phase I:
At closing, the Sponsor will generate $1.8 million in cost savings through improved property management oversight. The initial
costs savings will be partially offset by a planned increase in management fees, which will be set to a market rate of 3.0% of EGI
(currently 1.8% of EGI).

OpEx Savings
In-Place EGI $13,529,519

Operating Expenses TTM July 2015 Adjusted OpEx Cost Savings

Real Estate Taxes $2,898,263 $2,898,263 -
Insurance $120,499 $141,873 ($21,374)
Fuel / Gas / Steam $491,487 $307,263 $184,224
Electric $337,897 $329,981 $7,916
Water & Sewer $326,165 $208,746 $117,419
Payroll & Burden $1,262,267 $1,262,267 -
Repairs & Maintenance $1,338,706 $151,500 $1,187,206
General & Administrative $72,789 $37,875 $34,914
Reserves - $60,600 ($60,600)
Legal / Professional $401,731 $65,000 $336,731
Elevator $84,077 $75,000 $9,077
Other $46,369 $37,584 $8,786
Management $202,118 $202,118 -
Total Operating Expenses $7,582,369 $5,778,070 $1,804,300

Fuel / Gas / Steam: Adjusted to reflect boiler conversion and update (market est. at ~$1,000 per unit)
Adjusted, reflects 2014 Water Sewer Charge less $117K savings from RPZ backflow preventer installation which
Water & Sewer:
should be complete by January 2016
Repairs & Maintenance: Actual includes unit renovation costs and other expenses which are part of capex (interior painting, etc.)
Legal / Professional: Excludes leasing commissions and local law 11 work, which is non-recurring and below the line

Phase II:
Electricity: The Sponsor will submeter each of the units in order to pass through electrical costs to tenants. Work on the
electrical systems will begin upon acquisition and phase in over 4 years as units become renovated. Full cost savings for
electricity are expected to be achieved in Year 4.

Payroll & Burden: Payroll & burden expenses are inflated due to a union labor contract that expires in 2018. Following the
contract expiration in April 2018, the Sponsor anticipates converting the building to a non-union building, reducing headcount and
resetting wages.

Section 4: Project overview JLL 32

Section 1: Executive summary JLL 32
33
 Kansas City skyline
View of Midtown Manhattan from the north
Located on one of the world’s largest natural harbors, New
York City is the most populous city in the United States with
approximately 8.2 million residents and is also the most
densely populated major city with a land area of just over
300 square miles. With almost 800 languages spoken by its
residents, New York is truly a global city and the most
linguistically diverse city in the world. Known as a global
financial center, New York City combines the offices of 168
banks from 50 countries, and 18 of the top 20 foreign
branches of international banks have their U.S. headquarters
in New York City. New York is also the most visited city in
the United States for both domestic and international
travelers, with 56 million visitors totaling $41.3 billion of
direct spending in 2014. Over the past ten years, the number
of total visitors in New York City has increased by more than
50% and direct visitor spending has increased by more than
100%.
Manhattan overview
The borough of Manhattan, or New York County, forms the
central political, financial and cultural core of New York City and
is the economic engine for the Greater New York region. With a
population of more than 1.6 million and a land area of 23 square
miles, Manhattan is New York City’s most densely populated
borough with nearly 70,000 residents per square mile. More than
75 percent of New York City’s employees work in Manhattan
home to the Midtown and Downtown business districts.
Manhattan is the wealthiest county in the United States with per
capita personal income of $62,498 versus the national average of
$32,283, and its median household income of $69,659 exceeds
the national median by more than $11,000.
Section 5: Market overview
Manhattan is regarded as the commercial, economic and cultural
center of the United States and is home to numerous famous
landmarks and cultural attractions, such as the Metropolitan
Museum of Art, Times Square and the United Nations. Various
colleges and universities are located within the borough,
including Columbia University and New York University both of
which rank among the top 50 universities in the world, according
to the Times Higher Education World University Rankings.
Tourism
Both domestic and international tourism generate significant
income for New York City and particularly the borough of
Manhattan. New York was ranked 7th amongst the “20 Most
Visited Cities in the World” by Forbes magazine in 2014, with
major tourist destinations in New York City including Times
Square, the Empire State Building, Rockefeller Center and
Central Park. The number of both domestic and international
visitors to New York City increased in nine of the past 10 years,
with only 2009 experiencing a drop during the deepest part of the
recession. The number of visitors and total direct spending
increased by more than 50% and 100%, respectively, over the
past ten years to 55.8 million in 2014, meeting the visitors targets
initialed outlined by Mayor Bloomberg in 2006.
Although international tourists account for less than 22% of
visitors and spend slightly less on average than domestic visitors
($210 per day versus $230), the longer average length of stay of
international tourists (7 nights versus 2.7 nights for domestic
visitors) increases their spending share.
JLL 34
Employment and Economic Overview
The overall New York City economy is recovering strongly with
2.7% employment growth year-over-year as of December 2014,
led by the professional and business services sector, which
averaged year-over-year employment growth of 4.7% – which
exceeds the 3.7% growth reached during the peak of the last
expansion. Although the financial services have had to adapt to
increased regulatory scrutiny and changing markets, the
accounting, consulting and technology sectors are still expected
to grow over the next year. Unemployment in New York City has
dropped from a high of 9.6% in 2010, to 6.4% as of January
2015, with Manhattan holding the lowest unemployment rate of
the five boroughs at 5.2% nearly 40 bps below the national
average. Much of the decline in unemployment was due to the
strong growth in the private sector which has seen six straight
years of employment gains.
With a gross domestic product of $1.38 trillion in 2013, New York
City has the largest regional economy in the United States by and
the second largest city economy in the world after Tokyo, Japan.
New York City is a premier headquarters location for leading
global financial services companies as well as a diversified base
of service sector firms including law, accounting, advertising and
management.
New York City is home to more corporate headquarters than any
other city in the country, with the vast majority located in
Manhattan. Midtown Manhattan is the largest central business
district in the United States and holds the nation’s greatest
concentration of Fortune 500 companies, including J.P. Morgan
Chase, Citigroup, MetLife, Pfizer and Morgan Stanley.
Section 5: Market overview
While the financial, insurance, health care and real estate
industries form the backbone of New York City’s economy, the
city is an important center for mass media, journalism and
publishing as well as the preeminent arts center in country, with
creative industries such as advertising, new media, fashion and
design representing a rapidly increasing number of jobs in the
city.
One of the world’s leading commercial centers, Midtown is home
to corporate headquarters across multiple industries, including
fashion (Saks Incorporated, Calvin Klein, Polo Ralph Lauren and
Ann Taylor), communications (Viacom and Univision
Communications), publishing (Simon & Schuster and McGraw-
Hill) and media (CBS Corporation, NBC Universal, The New York
Times Company and Thomson Reuters).
New York City has also received a strong boost with the
emergence of “Silicon Alley,” named for the emergence and
concentration of internet and media companies in Manhattan.
Over the past two years, Midtown South has diversified an
already solid base of tenancy to become New York’s defacto
home of internet giants and tech start-ups. Heavyweights such as
Google and Apple, alongside hundreds of new tech start-ups,
have received billions of dollars in funding. This story is proven
not only by the quality of firms who have chosen to do business in
New York City, but also by their ambitious plans for growth.
JLL 35
The Property is located in the center of Midtown East,
Manhattan, which is bounded by 42nd and 53rd Streets,
Lexington Avenue and the East River. Despite its
convenient, central Manhattan location, Midtown East is an
enticing, community-oriented New York neighborhood, and
one of the most desirable places to live in New York City.
Midtown East’s diverse housing stock is attracting a more
sophisticated crowd that includes young professionals and
families. Originally a boatyard that protected ships from the East
River winds, the neighborhood is now one of the wealthiest, yet
affordable neighborhoods in Manhattan. The area contains a
plethora of upscale restaurants, affordable eateries and high-rise
buildings that tower over small shops and bars. Housing prices
range from affordable rentals to multi-million dollar penthouses.
Young singles and young families are increasingly moving to
Midtown East’s residential areas, attracted by the neighborhood's
numerous public parks and proximity to Grand Central Station
and the United Nations Headquarters. The neighborhood offers
both convenience and lifestyle optionality, while the Property,
perfectly located at its center, sits at a central junction point for
the rest of New York City.
Section 5: Market overview
International Community
The United Nations Headquarters complex, situated along the
East River between 42nd and 48th Streets, represents the
world’s largest and most prominent center of diplomatic activity.
The UN has created a thriving international community that has
been established in the area since the 1950s, creating a
permanent demand base for quality restaurants, hotels, schools,
retail shops, and upscale living accommodations. The Property
currently has several in-place tenants who hold United Nations
related jobs. The spending power of these foreign residents has
expanded dramatically in recent years, a result of the strength of
foreign currencies. This amplified spending power has a direct
impact on the property, increasing achievable apartment rents
while augmenting demand for retail services.
Shopping & Dining
As a result of the neighborhood’s established and sophisticated
residential population, convenient shopping and dining options
abound. Second and Third Avenues in the immediate vicinity of
the Property are populated with a wide range of supermarkets,
pharmacies, restaurants and nightclubs. Some of Manhattan’s
most celebrated gourmet restaurants are located in the
neighborhood, catering to the discerning palates of the
international community. Notable examples include Sushi
Yasuda, Sparks Steak House, Patroon, The Palm and Palm Too,
Marchi’s, Pampano, Blair Perrone, Rosa Mexicano, Zarela, and,
of course, Nino’s Positano.
JLL 3636
Demographics
The median household income in the Midtown East neighborhood
is $122,136, on par with Manhattan’s most exclusive
neighborhoods. This elite population includes a vital mix of young
professionals, working diplomats, empty nesters and families who
enjoy the favorable combination of convenience and international
flavor provided by the neighborhood.
Transportation
The area offers convenient access to all areas of the City as well
as to Westchester and Connecticut. The 4, 5, and 6 trains provide
express service from Grand Central to the Upper East Side,
Union Square, Downtown, and Brooklyn. Grand Central also
offers access to commuter railroad lines and the cross-town 7
and Shuttle trains, which provide convenient access to additional
subway lines and regional transportation terminals including Port
Authority and Penn Station. The 7-train provides additional
access to Queens, the growing Long Island City Market and Citi
Field. In coming years, the 7-train will provide access to the
development at Hudson Yards.
Section 5: Market overview
Neighborhood Amenities
The property’s central Midtown location places it within walking
distance of many of New York’s most celebrated cultural and
entertainment destinations. Highlights include the Museum of
Modern Art, Fifth Avenue boutiques, Central Park, the New York
Public Library, and the Broadway Theatre District. While these
nearby attractions benefit all residents of the property, they are
particularly appealing to suburban residents using the Property
as a pied-a-terre. Similarly, sophisticated individuals and young
families residing in other parts of the country or the world will find
the Property to be a convenient location for a Manhattan
apartment, serving as an ideal home base from which to explore
the greatest city on earth. The property’s delightful old world
charm appeals precisely to this demographic, capturing the
romance and history of Old New York.
Parks & Recreation
Located just two blocks east, the United Nations Sculpture
Garden is accessible via 47th or 48th Street, and is the largest
park in the area, an integral part of the United Nations
Headquarters complex. Key features include an expansive lawn,
a refined sculpture and rose garden, and views of the East River,
the Queensboro Bridge, and the United Nations Buildings,
making it the perfect setting for residents of the Property to reflect
and relax. Between First and Second Avenues, 47th Street
becomes a pleasant tree-lined promenade known as Dag
Hammarskjold Plaza. The Plaza is the most popular route for
pedestrians traveling between the UN and Midtown, adding
convenience for the property’s residents while enhancing
exposure for the Property’s retail tenants.
JLL 3737
Section 5: Market overview JLL 38
Section 5: Market overview JLL 39
Section 1: Executive summary JLL 39
 The High-End Resale Market
The New York City economy continues to perform above expectations. Housing prices in Manhattan have held up much better than the
national average, and sales activity has picked up and remains strong. Manhattan housing prices continued to press higher in 2015,
driven primarily by low inventory and seven consecutive quarters of year-over-year sales growth. In particular, the luxury market showed
the most price gains as more development product has begun to close in this sector of the market. The average sales price and average
price per square foot of all Manhattan apartments increased 15% and 12% respectively year-over-year. The number of sales that closed
at or above the list price at time of contract rose to 46%, the highest level reached since 52% in the third quarter of 2008, indicative of the
robust demand for product in the market. In addition, days on the market, a measure of the number of days from the original list date, fell
by roughly 16% to 49 days from the prior year quarter as languishing listings were sold off.

Market Forces
The reasons for the Manhattan market’s upward trend, despite the national housing market’s sluggish growth, are as follows:
1. Land constraints: Unlike virtually every other metropolitan or suburban market in America, Manhattan remains severely land-
constrained. New construction starts relative to existing housing stock has remained at relatively low levels, despite ever-growing
demand. This stability in new supply helps to keep inventory in check. Nationally, housing starts rose 33% from 1.5 million units in 2000
to 2.0 million by 2005 and have since declined significantly to approximately 1,174,000 in 2015, which is reflective of the dislocation in the
for-sale housing market since the economic downturn. This is in direct contrast to Manhattan’s residential inventory levels, particularly in
the high-end market, where demand continues to outstrip supply.

2. Strong demand: Manhattan continues to experience greater demand than all other residential markets in the country. This is due in
part to the strength of the Manhattan economy, particularly at the high-end with strong bonuses on Wall Street and record high-income
job creation. Additionally, Wall Street is posting record earnings and there is stable growth in the hedge fund and private equity markets.
Market demand is also driven in part by a strong demand for Manhattan real estate from national and international buyers. Manhattan is
perceived as a “winner take all” city within the global economy, which is reflected in the continually strong demand exhibited both
nationally and internationally for Manhattan condominiums.

Section 5: Market overview JLL 40

Section 1: Executive summary JLL 40
The Rental Market
The East Side of Manhattan has historically maintained value due to its long-established reputation and convenience. Rents remain
strong within the area as exemplified by an average increase of 6% year-over-year for 1-bedroom units. With a current vacancy
rate of just 1.54%, Midtown East is poised for additional growth in prevailing rental rates. Significant barriers to entry will preserve
this acutely low vacancy rate, with high construction cost, strict zoning regulations, a lack of developable sites, and soaring land
costs all contributing to the dearth of new rental development. Rents for Manhattan as a whole are also performing exceptionally
well. In July 2015 median Manhattan rental prices were the second highest on record.

Section
Section
4: Market
5: Market
overview
overview JLL 41
Section 1: Executive summary JLL 41
 1 2 3 4 5 6

The Buchanan Monterey at Park The Nash Murray Hill Tower The Metropolis River Tower

Address 160 East 48th Street 30 Park Avenue 222 East 39th Street 245 East 40th Street 150 East 44th Street 420 East 54th Street

Year Built 1929 1955 1971 1972 2000 1982

Lot Size (SF) 29,120 17,485 11,932 22,178 11,207 28,308

Building Size (SF) 297,703 236,397 128,741 387,671 352,725 413,233

Floors 15 20 25 36 52 37

FAR 15 10 10 10 12 10

Units 289 237 191 273 360 323

Average Floorplan
(SF/Rent)
Studio 438 / $3,200 - / $3,097 - / $3,175 506-576 / $3,535 - / $3,463 -/-
1 BR 709 / $4,250 - / $4,382 - / $4,170 753-853/ $4,470 - / $4,412 566-990 / $4,637
2 BR 769 / $5,600 - / $6,456 - / $5,465 1,118-1,137 / $6,360 - / $6,063 1,061-1,343 / $6,107
3 BR 1,209 / $9,000 -/- - / $8,000 -/- - / - 1,643-3,066 / $9,760
Commercial Space (SF) 16,200 0 7,600 1,215 8,080 272

Fitness Center No Yes Yes Yes Yes Yes

Common Space / Lounge Yes No Yes Yes Yes Yes

Subways (within .25 miles) 4,5,6,E,M,7,S 6 None None 4,5,6,7,S None

Section 5: Market overview JLL 42

Section 1: Executive summary JLL 42
Section 5: Market overview JLL 43
Section 1: Executive summary JLL 43
The Retail Market
The Third Avenue retail corridor is also considered an attractive retail location due to its close proximity to Midtown Manhattan and
to the numerous high-end office and residential rental properties, as well as the luxury condo developments and hotels located
within the neighborhood. On lower Fifth Avenue from 42nd to 49th Streets, the asking rental rate increased to $1,238 per square
foot during the first quarter of 2015 from $1,057 per square foot, a solid increase from one year ago. By way of comparison, asking
rental rates on the lower section of Fifth Avenue were only $458 per square foot five years ago and have more than doubled since
then. The availability rate registered 24.6% at the close of the first quarter, down from 26.2% one year ago. At 580 Fifth Avenue, a
new lease was completed by cosmetics giant Sephora, which will be relocating across the street and further south from its current
location at 597 Fifth Avenue.

In another top-tier market along Madison Avenue, (from East 57th to East 72nd Streets), asking rents averaged $1,584 per square
foot, up moderately from $1,466 per square foot, an 8.0% rise from last year. Of note, the average asking rent has increased in
each of the last six quarters, however the average asking rent dipped slightly from year-end 2014 when it registered $1,602 psf.
The availability rate remained unchanged at 13.0% at the close of the first quarter 2015 from year-end 2014. New commitments
were announced including high-end fashion brand Brioni which leased 5,200 sf at the Carlton House redevelopment, 680 Madison
Avenue. Additionally, British woman’s designer L.K. Bennett leased 2,562 sf for its first Manhattan store at 655 Madison Avenue in
the former Brian Atwood sublease space. New space additions included the Nespresso store at 761 Madison Avenue and Frey
Wille’s sublease space at 624 Madison Avenue.

Section
Section
4: Market
5: Market
overview
overview JLL 44
Section 1: Executive summary JLL 44
Midtown East Retail Market Comparables

Address Primary Use Size Monthly Rent Rent PSF

904 Second Avenue Retail 404 $8,500 $252

142 East 49th Street Retail 550 $9,500 $207

830 3rd Avenue Retail 900 $22,500 $300

369 Lexington Avenue Retail 500 $15,000 $360

Average 589 $13,875 $280

Section 5: Market overview JLL 45

Section 1: Executive summary JLL 45
Apartment & Mixed-Use Building Sales Comps
Address Date Year Built Sales Price Size (GSF) Units Price per SF
420 East 54th Street In Contract 1982 $390,000,000 412,961 323 $944
341-343 East 62nd Street 9/10/2015 1910 $12,870,755 11,900 17 $1,082
31-37 East 31st Street 9/10/2015 1914 $82,431,000 91,500 92 $901
312 East 30th Street 9/10/2015 1986 $50,956,406 47,820 67 $1,066
1 Mitchell Place 7/2/2015 1927 $138,850,000 143,033 181 $971
301 East 21st Street 5/8/2015 1930 $167,500,000 185,196 199 $904
30 Park Avenue 3/12/2015 1955 $194,000,000 205,245 237 $945
425-429 3rd Avenue 2/10/2015 1967 $68,250,000 66,403 102 $1,028
200 East 82nd Street 12/30/2014 1980 $218,000,000 205,254 223 $1,062
Average 152,146 160 $989

The Buchanan $270,000,000 297,703 298 $906

Section 5: Market overview JLL 46
Section 1: Executive summary JLL 46
 The Office Market
As one of the best performing office markets in the United States, Midtown Manhattan continues to ride an upward economic
growth trend that also generates residential demand in the immediate area. The Midtown office leasing market is as strong as it
has been since the peak of the last cycle and well positioned for rental rate growth. Key statistics are as follows:

• Midtown asking rents have increased at a rate of 7.6% per annum over the past 3-years and increased 7.3% over the past 12
months. This trend is expected by many to accelerate.
• The Taking Rent Index has hit 97% (from 89% 12 months ago) indicating that landlords are getting their asking rents and are
going to make large increases shortly.
• Leasing activity over the 12 months of 17 million square feet is the second highest over the past decade and is outpacing last
year’s activity by 20%.
• Availability rate is at its lowest point since 2007 and is continuing to fall.
• Absorption over the past 12 months was a positive 3.71 million square feet, second highest in the past 10 years only to 2010.
• All of these metrics point in the right direction – indicating a strengthening Midtown leasing market.

Section
Section
5: 4:
Market
Market
overview
overview JLL 47
Section 1: Executive summary JLL 47
The offering to invest in the Property is being distributed exclusively by JLL to a select group of qualified institutional investors. The
prospective investor(s) will be selected by the Sponsor in consultation with JLL at its sole discretion. For more information on this
transaction, please contact:

Jones Lang LaSalle Equity Placement Contacts

Aaron Appel Mark Fisher Jonathan Schwartz Mason Powell

Managing Director
Capital Markets Group
aaron.appel@am.jll.com
+1 212 812 6459
+1 917 797 1253 (cell)
Senior Vice President
Capital Markets Group
mark.fisher@am.jll.com
+1 212 812 5966
+1 914 740 3808 (cell)
Senior Vice President
Capital Markets Group
jonathan.schwartz@am.jll.com
+1 212 812 6567
+1 516 672 1247 (cell)
Associate
Capital Markets Group
mason.powell@am.jll.com
+1 212 812 6447
+1 202 669 0519 (cell)

Patrick Cotter
Analyst
Capital Markets Group
patrick.cotter@am.jll.com
+1 212 812 5967
+1 240 997 4977

JLL 48
Section 1: Executive summary JLL 48
49
Section 6: Appendix: floor plans JLL 50
Section 1: Executive summary JLL 50
Section 6: Appendix: floor plans JLL 51
Section 1: Executive summary JLL 51
Section 6: Appendix: floor plans JLL 52
Section 1: Executive summary JLL 52
Section 6: Appendix: floor plans JLL 53
Section 1: Executive summary JLL 53