Fifth Avenue Tower Presentation 8.16

BERKSHIRE NewYork HATHAWAY Properties Home Services

WHY NYC Over the last century the NYC Real Estate market has displayed its incredible resilience, through market corrections, financial and geopolitical crisis; depressions, recessions, this market always finds a way back, and returning even stronger. The Dow Jones acts as a barometer for the NY real estate market and tends to move in lock-step with it. The Dow is flirting at record territory while real estate market indicators are showing strong signs of life along a parallel path. The NYC real estate market offers savvy investors some of the greatest returns in the world because the market performs dynamically. As we move toward a post-pandemic world many assets have become distressed offering steep discounts. Investors willing to acquire assets in the market now will see the greatest returns as we move toward a level of normalcy. WHY NOW The NYC real estate market is on the precipice of an upswing. Big money, sidelined during the height of the pandemic and banks, flush with cash, but at an all-time level of caution are poised to open up the development floodgates. Capitalized development projects, after restrictions were lifted roared back to life and continue apace. Discounted properties offer tremendous upside and as the market has proven time and time again, recovery and renewal can’t be far behind. As the US Fed is preparing the largest infrastructure stimulus packages in NYC history, developers are lining up to “cash-in”. Developers with realistic timelines understand that over the next 24-48 months they’ll reap the benefits of investing in a distressed market.

Warren Buffett - Chairman and CEO, Berkshire Hathaway, Inc. WHY US Berkshire Hathaway, Inc. a worldwide holding company based in Omaha, NE, is one of the most admired companies in the world. Its chairman and CEO Warren Buffett, is often referred to as the “Oracle of Omaha”. Berkshire Hathaway is the No. 4 company in Barron’s ranking of the world’s 100 Most Respected Companies; it ranks at No. 3 in Fortune magazine’s 50 Most Admired Companies survey; and is No.4 in Forbes World’s Largest Public Companies. Our parent company, HomeServices of America, a Berkshire Hathaway affiliate, is the nation’s largest, full service real estate brokerage firm. HomeServices of America expanded its business model through its operating companies to become one of the largest providers of integrated real estate services, including brokerage, mortgage, franchising, title and escrow services, insurance and global relocation; including real estate brokerage franchising in 2012 to create the most respected and valued real estate company in the market: Berkshire Hathaway HomeSevices. Real estate is becoming part of the global economy and Berkshire Hathaway’s international appeal is second to none. Our network wraps around the globe and casts a wide net in terms of affiliate real estate networks and web platforms geared toward serving and reaching the most active international markets. Our listings are sent to the premier real estate, video and mobile websites nationally including Zillow, Trulia, Realtor, HomeSnap, New York Times, and the Wall Street Journal as well as syndicating to over 80 international websites worldwide in 37 countries across 5 continents.

THE TEAM LORENZO AVATI JEFFREY BERMAN Global Sales Executive, Licensed Real Estate Associate Broker Licensed Real Estate Associate Broker Jeff Berman offers 35 years of professional Lorenzo Avati has represented a broad and services in commercial real estate and securities. illustrious portfolio of real estate in New York He is a licensed real estate broker and registered City, including Manhattan’s prime co-ops, representative securities licenses 22 and 63, with condominiums, new developments, townhouses Reg. D offerings of DST1031 Exchanges to service and luxury rentals. his high net-worth clients. Raised in Italy and Switzerland (and fluent in His approach to the business focuses on providing Italian and French), he combines an international his clients personalized guidance that is essential in perspective with a background in financial planning synchronizing their business to achieve maximum and investment banking, making him especially profits and returns on their investments. qualified to identify and execute real estate transactions in today’s complex and increasingly Berman’s forensic-like approach to understanding globalized marketplace. his clients’ businesses has allowed him to successfully identify the best real estate Employing a dual role as advisor and project acquisitions increasing their portfolio values. manager, Lorenzo first assists his client’s in establishing a targeted strategy based on their Jeff’s full spectrum of expertise of commercial real specific needs and resources. Combining keen estate transactions transcends from the real estate negotiating skills, seamless attention to detail owner’s perspective and the buyer’s/tenant’s lens. and a comprehensive knowledge of the varied His consultative approach to a multitude of real segments of the Manhattan real estate market, he estate acquisitions, including industrial, mixed- is able to deliver exceptional results to an equally use, multi-family ground-up developments, office diverse clientele, who value his innate integrity, buildings, commercial condos, retail/restaurant, professionalism and discretion. and professional/ medical buildings have made him an icon within the industry. Lorenzo has created a multi-faceted collective under the AVATI TEAM represent a multi-faceted Jeff’s breadth of knowledge affords his clients the collective team of experience and expertise, to flexibility to choose their involvement level. From provide a broad range of support and turnkey completing a transaction from beginning to the service carefully attuned to the specific needs of end, including identifying funding sources, legal our diverse clientele of sellers, buyers, landlords, counsel and adding key vendors to the process, tenants and investors, to provide seamless or act in an advisory capacity, spearheading the support suited to the needs of each client/ transaction from up above. customer, from first-time buyers to seasoned investors. With a broad view of the industry, keen Bringing Jeff on board in the early stages of insight to the fluid conditions of each market your transaction will help you understand market cycle and deep knowledge of the entire city; dynamics, timing, and key data that will help you he identifies opportunities and relative value to make the most informed real estate decisions. empower our clientele to make intelligent and fully informed decisions.

$2 BILLION DEVELOPMENT TO BUILD MULTI-USE TOWER IN PRIME FIFTH AVENUE/ 50'S LOCATION DESCRIPTION The development has been designed by an acclaimed and world-renowned European architect and his architectural firm, who have built many iconic towers around the globe. Video, Renderings and floorplans are ready. The tower will join the other existing towers of “Billionaire Row” (as shown in the here above photo). TOWER DETAILS The tower will be approx. 1,000 feet tall, placing itself among the tallest in the world. It will be revolutionary because it will have the: first 4 floors as Retail (Top international fashion brands already lined up to lease the spaces); the next 15 floors will have Terraced Urban Parks with a Club, Gym, Spa, Pools with waterfalls, Cafeteria; Restaurant, Theater, Art Center; Meeting rooms, etc.); the next 12 floors will be Offices; the next 15 Floors Residential, clearing 360 degrees spectacular unique views of Central Park and the city; The roof top will feature a one-of-a-kind Sky Lounge. The building will also feature one 12 feet x 12 feet glass windows; 13 feet ceilings on most floor, if not higher.

INVESTMENT REVENUES These multi-purpose layouts will grant revenues to investors right away: Retail will move in immediately once most of the building construction is completed, starting their decoration, to open once building will be completed; Offices will be leased in advance of completion and will have different layouts with some floors having just small offices and with other floors will having larger ones, granting flexibility that will insure that they will be easily leased; Residential units will be sold in pre-construction, granting a quicker recovery of initial investments. LAND The lots where the tower will be built, belongs to a reputable and well-known NYC billionaire and real estate investor/builder, that will invest substantially into the project. INVESTMENT COSTS The development is estimated to cost $2B, of which $ 200M will be invested by the owner of the lots; We are looking for investor/s for $ 800M; $ 1BB will be financed.

HUDSON YARDS: NEW DEVELOPMENT LOT HISTORY The 25,775 sf lot was purchased in 2013 for $167,000,000. An additional 100,000 sf of air-rights were transferred in 2013 and added to the property for $9,750,000. The property is available to build a 61-story office/retail/residential tower of 840,800 sf. The owner is looking either for a partner to co-develop the property, or sell it. Based on current market conditions the property is worth in the $60 million range. Because the property’s economics are so upside, a possible outcome is for the owner to write-off the acquisition as a loss. At the crossroads of Manhattan West and Hudson Yards, at the entrance to the Highline, one of the most visited Parks in NYC.

MANHATTAN - HUDSON YARDS Artistic Rendering Property Type: Residential | Office Lot R E V E N U E (Annual Projected) Dimensions: 165’ x 156’ ft Lot Size: 25,775 Sq ft Financial Snapshot Retail: $12,852,000 Stories: 61 Office: $27,300,000 Commercial Units: To assess Residential: $20,734,721 Building Total SF: 840,000 Total Revenue: $60,886,721 Zoning: V1 Year Built/ Renovated: Undeveloped Lot EXPENSES Assessed Value: $ 11,085,700 Real Estate Taxes: (Undeveloped) $1,173,045 Real Estate Taxes: (developed) $17,892,000 (19/20) Operating Expenses: $18,916,800 Net Operating Income: $24,077,921 Est. Capitalization Rate: To Be Determined R.O.I: 16% to 22% BUILDING: We have to calculate approx. $ 500 x SF for Hard Costs x 840,000SF = $ 420,000,000 We have to calculate approx. $ 200 x SF for Soft Costs x 840,000 SF = $ 168,000,000 Total Approx. Construction Costs: $ 588,000,000 A 65% Commercial and 35% Residential tower could be built. Could be sold in a high market with a 40/60% gain.

MAIN TOWERS AT HUDSON YARDS One Hudson Yards 15 Hudson Yards 35 Hudson Yards RECENT BUILDING SALE NEARBY 410Tenth Avenue 410 Tenth Avenue Sold: November, Q4 2020 Sold price: $952M (Building Approx. 1/3 of the size of proposed tower)

RESIDENTIAL RENTAL BUILDING ON MADISON AVENUE IN MIDTOWN The building has 108 total units, consisting of 25 hotel or corporate housing units on floors 4-6, 82 apartments on floors 7-17 and a fully built-out restaurant on the ground, mezzanine and lower level. If a new owner wanted to convert the retail space to medical or community facility use, they would also be permitted to convert the hotel floors to residential. Asking Price: $92.5M 17 story, luxury rental property redeveloped and renovated in 2020. Developers have a $50 million mortgage LOT: 50 x 98, 4,975 sf lot, 80,000 sf property it was purchased for $ 37M in 2017 and gut renovated.

Property Type: Mixed-Used Lot Dimensions: 50’ x 98’ Ft = 4,975 SF Residential Units: 82 Hotel Units: 25 Commercial Units: Restaurant/Bar Building Total SF: 80,000 Zoning: R10 Year Built/ Renovated: 1926, 2017 Real Estate Taxes: $1,165,118 (19/20) R E V E N U E (Annual Projected) Financial Snapshot Retail: $700,000 Hotel: $1,000,000 Residental: $3,845,400 Total Revenue: $5,545,400 EXPENSES Real Estate Taxes: $ 1,165,118 Operating Expenses: $634,634 Net Operating income: $3,745,400 Est. Capitalization Rate: 4% Est. ROI Post Covid: 4% Est. ROI in a recovered market: 16% and 22%



RENTAL BUILDING IN MIDTOWN FIFTH AVENUE Asking: $160M RE Taxes: $2,459,798 Recently constructed luxury, 35 story, 165-unit residential rental building, apartments are market rate. The developer purchased the former property for $50,000,000 in 2011 and the property opened in 2013. The lot is 56 x 150, an 8,400 sf lot and a 294,000 sf property. Amenities include a gym and a roof deck PROPERTY FINANCIALS Type: Luxury Residential Rental Lot Dimensions: 150’ x 56’ Ft Lot Size: 8,400 Sq Ft Stories: 35 Total Units: 165 Rent Stabilized Units Residential Units: 165 Commercial Units: 1 (bank Leased thru 2035) Building Total SF: 294,000 Zoning: C5-2 Year Built/ Renovated: 2013

R E V E N U E (Annual 2019) EXPENSES Financial Snapshot Real Estate Taxes: $2,459,798 (19/20) Retail: $1,058,750 Operating Expenses: $4,280,891 Residential: $10,387,721 Net Operating Income: $4,705,782 Total Revenue: $ 11,446,471 Est. Capitalization Rate: 3% Est. ROI Post Covid: 4% Est. ROI In a Recovered Market: 16% to 22%



THANK YOU We can identify the most appropriate and reputable: Developers, Builders, Attorneys (Corp/LLC/Trusts/Transactions/Etc.), Accountants, Banks (Accounts/Loans/Etc.) and Property Managers. LORENZO AVATI Global Sales Executive Licensed Real Estate Associate Broker The Avati Team Berkshire Hathaway HomeServices New York 590 Madison Avenue, 40th Fl New York, New York 10022, USA [email protected] Office: +1.646.677.1061 | Mobile +1.917.873.7858 JEFFREY BERMAN Licensed Real Estate Associate Broker Berkshire Hathaway HomeServices New York 590 Madison Ave, 40th Fl New York, New York 10022, USA [email protected] Office: +646.677. 1012 | Mobile: +17-209-3528