Boston, MA 02210 | 617.457.3400 | www.naihunneman.com | www.WaterfrontSquareMA.com

offering memorandum

Revere Beach

Where the Stopsand Opportunity Begins

2

3 EXECUTIVE SUMMARY

4 INVESTMENT HIGHLIGHTS

6 BOSTON MARKET OVERVIEW

8 REVERE MARKET OVERVIEW

10 BLUE LINE CORRIDOR MARKET

14 SITE OVERVIEW

18 ECONOMIC DEVELOPMENT

CONTENTS

Disclaimer: Information included or referred to herein is furnished by third parties and is not guaranteed as to its accuracy or completeness. You understand that all information included or referred to herein is confidential and furnished solely for the purpose of your review in connection with a potential purchase of the subject property. Independent estimates of pro forma income and expenses should be developed by you before any decision is made on whether to make any purchase. Summaries of any documents are not intended to be comprehensive or all-inclusive, but rather only outline some of the provisions contained therein and are qualified in their entirety by the actual documents to which they relate. The asset owner(s), their servicers, representatives and/or brokers, including but not limited to NAI Hunneman and their respective agents, representatives, affiliates and employees, (i) make no representations or warranties of any kind, express or implied, as to any information or projections relating to the subject asset(s), and hereby disclaim any and all such warranties or representations, and (ii) shall have no liability whatsoever arising from any errors, omissions or discrepancies in the information. Any solicitation for offers to purchase the subject asset(s) is subject to prior placement and withdrawal, cancellation or modification without notice.

EXCLUSIVELY OFFERED BY:

ANDREW KAEYER Executive Vice President617.457.3207akaeyer@naihunneman.com

IAN MCKINLEYSenior Associate617.457.3404imickinley@naihunneman.com

INVESTMENT SERVICES

303 Congress Street | Boston, MA 02210 | 617.457.3400 | www.NAIHunneman.com

2

3

EXECUTIVE SUMMARY

WATERFRONT SQUARE NAI Hunneman’s Capital Markets Group has been exclusively retained to sell Lot 2 at Waterfront Square. Lot 2 is a 1.13 acre site located between two recently developed residential projects, Ocean 650 and The Vanguard. The site is part of Waterfront Square’s 1.37 million square foot master plan and is the final parcel remaining in one of the most compelling waterfront development sites in Greater Boston.

The development site is adjacent to the popular Wonderland blue line commuter station and directly across from a 3.5-mile long ocean beach. Nowhere else in Boston offers the convenient access to Logan Airport and Downtown Boston with beach-front living. With all of the important state and environmental permitting for the site already secured, Waterfront Square’s vibrant seaside venue offers an unprecedented development opportunity.

We are offering this unique development opportunity for sale without a formal asking price. A “call-for-offers” date will be scheduled in the coming weeks.

Premier Transit-Oriented LocationONE-OF-A-KIND

OFFERING TO

CONSTRUCT UP TO

171 UNITS OF

BEACHFRONT

MULTIFAMILY

PROPERTY

3

4

Investment Highlights• 10 MINUTES TO BOSTON & 5 MINUTES TO LOGAN AIRPORT

• A DEVELOPMENT OPPORTUNITY IN A CITY THAT HAS COMMITTED

SIGNIFICANT DOLLARS TO ITS FUTURE ECONOMIC GROWTH

• FAST-TRACK PERMITTING AND APPROVALS IN PLACE

• STRONG LEASING ACTIVITY AMONGST NEIGHBORS

• URBAN LIVING, BEACHFRONT MINDSET

ONE OF THE

UNITED STATES’

HOTTEST

ECONOMIES

IS 10 MINUTES

AWAY

#1CITY FOR MILLENNIALS

(Forbes)

MOST

INNOVATIVE CITY (CNN)

4

5

MOST WALKABLE CITY (Redfin)

35%OF THE POPULATION IS

20-34 YEARS OLD

MEDICAL30+ Hospitals Including Massachusetts General Hospital, Ranked #1 Hospital in the U.S.

BIOTECH HUB50,000 bioscience-related jobs

EDUCATION#4 BEST CITY for Recent College Grads

#1 in NIH FUNDING$2.6 Billion in MA (2016)

VENTURE CAPITAL FUNDING$3.9 Billion in MA (first half of 2017)

#1CITY FOR MILLENNIALS

(Forbes)

& 3RD SMARTESTCity in the US (Forbes)

HIGHESTnumber of educatedmillennials

35 COLLEGES &

UNIVERSITIES

#3 HEALTHIEST CITY IN THE US (Forbes)

7.6% of the adult population are 25-34 year olds with a 4-year degree

5

6

Boston MarketWith the ninth-largest GDP in the country and the fifteenth-largest in the world, metro Boston is an economic powerhouse and one of the nation’s centers for education, finance, tourism, healthcare, life sciences and technology. The region is home to 12 Fortune 500 Companies, some of the largest employers include Brigham and Women’s Hospital, Mass General Hospital, John Hancock, Boston University and Liberty Mutual. Greater Boston boasts a population base of 4.7 million – ranking it one of the largest metropolitan areas in the U.S. The 80+ colleges and universities in the region are anchored by world-class institutes such as Harvard and MIT, and provide a large pool of talented young workers who remain attracted to the area’s burgeoning innovation economy, solid employment prospects, above-average wages and amenities. As a worldwide leader in science and tech-based industries, the metro area continues to benefit from healthcare and biotech research and development. Armed with a strong entrepreneurial spirit and a highly educated workforce, prospects for growth are solid in Greater Boston.

GLOBAL TECH HUB• Greater Boston’s importance as a global technology hub has continued to expand over the last several years. Boston ranked 5th in Market Expert’s top 10 Tech cities list and 1st among the top 25 startup hubs in the U.S. by the U.S. Chamber of Commerce Foundation and startup incubator 1776.

• According the Kauffman Index, Greater Boston ranked 22nd among the country’s 40 largest metro areas for startup activity.

• In 2016, there were 1,869 startups operating in the Boston area.

• Massachusetts is also a top destination for venture capital funding, garnering $3.2B during the first half of 2016. This ranks the Bay State 3rd behind only California and New York.

LEADER IN EDUCATION AND HEALTHCARE• Anchored by Boston and Cambridge, Massachusetts has been ranked the 8th most popular destination for college students (source: College Raptor), enjoying a student population of more than 250,000.

• Top-ranked universities, according to U.S. News & World Report, include Harvard (#2), MIT (#7) and Tufts (#27).

• Massachusetts General Hospital and Brigham and Women’s Hospital are among the best hospitals in the country, ranking 1st and 6th, respectively.

• Massachusetts remains a top destination for NIH funding, receiving $2.6 billion in awards during the 2016 fiscal year. Much of this funding goes to Boston-area institutions and hospitals, with Mass General, Brigham & Women’s and Harvard Medical School accounting for roughly 35% of total funding.

NIH FUNDING

STATE FY 2016 $ $ PER CAPITA

California $3.7 $92

Massachusetts $2.6 $374

New York $2.2 $111

Pennsylvania $1.6 $122

Maryland $1.5 $242

VC FUNDING

STATE H1 2017 $

California $16.6

Massachusetts $3.9

New York $3.2

Pennsylvania $1.0

Maryland $0.97 6

7

MARKET OVERVIEW

DIVERSE ECONOMYWhile education and healthcare dominate in Greater Boston, accounting for 21% of total employment, the metro area boasts a rather diverse economy. Professional services, trade and utilities, government and tourism are major industries here as well.

EMPLOYMENT BREAKDOWN

OTHER POSITIVE ATTRIBUTES• Greater Boston’s population base is young and well-educated, particularly within the Boston city limits. 25-34 year olds with a 4-year degree account for 7.6% of the adult population in the metro area.

• Within the Boston city limits roughly 35% of the population is aged 20-34 years old; ranking the city 1st in the nation.

• Boston, particularly Cambridge, has grown into a global biotech and life science hub, with many of the world’s leading pharmaceutical companies maintaining a presence here. Employment in bioscience-related jobs is about 50,000 in Boston.

• Boston has emerged as a gateway city. Nationally, the U.S.’s economic strength and relative returns compared to other global market has driven an influx in foreign capital into commercial real estate. Boston has been a direct beneficiary, with foreign investors accounting for slightly less than 20% of total office sales volume year-over-year as of Q2 2017.

Current Employment Statistics (CES-790) Selection Criteria Geographic Area: Boston-Cambridge-Nashua MA-NH Metropolitan NECTA Industry: Total Nonfarm Time Frame: CES Series Description Jul-1700-000000 TOTAL NONFARM 2,779,20005-000000 Total Private 2,483,40006-000000 Goods Producing 304,90007-000000 Service Providing 2,474,30008-000000 Private Service Providing 2,178,500

65-000000 EDUCATION AND HEALTH SERVICES 587,200 21.1%60-000000 PROFESSIONAL, SCIENTIFIC & BUSINESS SERVICES 489,400 17.6%40-000000 TRADE, TRANSPORTATION, AND UTILITIES 428,000 15.4%90-000000 GOVERNMENT 295,800 10.6%70-000000 LEISURE AND HOSPITALITY 289,700 10.4%55-000000 FINANCIAL ACTIVITIES 195,200 7.0%30-000000 MANUFACTURING 188,400 6.8%15-000000 MINING, LOGGING AND CONSTRUCTION 116,500 4.2%80-000000 OTHER SERVICES 109,400 3.9%50-000000 INFORMATION 79,600 2.9%

EDUCATION AND HEALTH SERVICES

PROFESSIONAL, SCIENTIFIC & BUSINESSSERVICES

TRADE, TRANSPORTATION, ANDUTILITIES

GOVERNMENT

LEISURE AND HOSPITALITY

FINANCIAL ACTIVITIES

MANUFACTURING

MINING, LOGGING AND CONSTRUCTION

Current Employment Statistics (CES-790) Selection Criteria Geographic Area: Boston-Cambridge-Nashua MA-NH Metropolitan NECTA Industry: Total Nonfarm Time Frame: CES Series Description Jul-1700-000000 TOTAL NONFARM 2,779,20005-000000 Total Private 2,483,40006-000000 Goods Producing 304,90007-000000 Service Providing 2,474,30008-000000 Private Service Providing 2,178,500

65-000000 EDUCATION AND HEALTH SERVICES 587,200 21.1%60-000000 PROFESSIONAL, SCIENTIFIC & BUSINESS SERVICES 489,400 17.6%40-000000 TRADE, TRANSPORTATION, AND UTILITIES 428,000 15.4%90-000000 GOVERNMENT 295,800 10.6%70-000000 LEISURE AND HOSPITALITY 289,700 10.4%55-000000 FINANCIAL ACTIVITIES 195,200 7.0%30-000000 MANUFACTURING 188,400 6.8%15-000000 MINING, LOGGING AND CONSTRUCTION 116,500 4.2%80-000000 OTHER SERVICES 109,400 3.9%50-000000 INFORMATION 79,600 2.9%

EDUCATION AND HEALTH SERVICES

PROFESSIONAL, SCIENTIFIC & BUSINESSSERVICES

TRADE, TRANSPORTATION, ANDUTILITIES

GOVERNMENT

LEISURE AND HOSPITALITY

FINANCIAL ACTIVITIES

MANUFACTURING

MINING, LOGGING AND CONSTRUCTION

MARKET OVERVIEW

7

8

Revere MarketHome to the nation’s oldest public beach, the city of Revere is a densely populated residential community just 5 miles north of Boston. The MBTA’s Blue line provides direct access to area employment hubs in the Financial District and Downtown Crossing, and Logan Airport is just minutes away in East Boston. As part of Boston’s fast-growing inner suburban ring, Revere has benefitted from increased demand for housing and commercial space just outside of the urban core. Housing values have climbed 10% year-over-year according to Zillow Research and median apartment rents are nearing $1,700 per unit for studios and 1-bedroom according to Zumper. Young professionals looking to escape high-cost neighborhoods like the South End and South Boston are driving up housing prices in areas like Revere, as it provides urban-living and public transit access at a lower price-point.

URBAN-LIVING AND

PUBLIC TRANSIT ACCESS

AT A LOWER PRICE-POINT

8

9

MARKET OVERVIEW

Households with incomes in the $75,000-$100,000 range account for 12% OF ALL HOUSEHOLDS IN REVERE, which is the largest share

POPULATION 53,179

HOUSEHOLDS20,486

27% OF REVERE WORKERS

age 16 years and over use public transit to commute to work

AVERAGE COMMUTE TIME

31.4 MINUTES

Number of employees: 27,671

HIGHLY-CONCENTRATED EMPLOYMENT

SECTORS INCLUDE: Education & Health,

Accommodation & Food Services, Retail Trades and Professional

& Business Services

MEDIAN HOUSEHOLD INCOME:

$50,886

9

10

Excellent Transit Access

10

Lot 2 at Waterfront Square in Revere is located directly adjacent to the MBTA Wonderland Station. Wonderland is the first station stop on the MBTA Blue Line, which provides direct access to Logan International Airport, Faneuil Hall Marketplace, The New England Aquarium, Government Center, and Boston’s Financial District. Boston’s Logan Airport is only 3 miles away or six station stops from Waterfront Square and Wonderland.

GROWING BLUE LINE CORRIDORThe direct access to public transportation means that Waterfront Square will follow what is happening in line with other developments along the Blue Line corridor. Demand for luxury living at Waterfront Square will continue as developers continue to add jobs and amenities to the area and residents look to find savings over the rapidly rising Boston rents.

Residents of Waterfront Square are only five miles North of Boston and three miles or six station stops from Logan International Airport. The Airport is directly accessible off of the MBTA Blue Line or Route 1A. Waterfront Square is only three station stops from the recently purchased Suffolk Downs, a 161-acre site that could become one of Boston’s largest developments in recent years. The purchaser’s vision for the site is a large, mixed-use retail, entertainment/dining and residential area, like Somerville’s Assembly Row.

There has been a surge in major projects being planned, approved, and/or under construction along the Blue Line corridor.

The Blue Line Corridor has directly benefitted from continued urban migration in the Boston metro. The area’s population base increased by 7% from 2010-16, reaching more than 52,000 residents. This growth pattern is expected to continue in the future as the population along this corridor is set to grow by another 6.4% over the next five years.

Not only is the population expanding, but it also highly-educated. As of 2016, 38.5% of those 25 years or older living in the Blue Line Corridor held a Bachelor’s Degree or higher. This is only slightly below the statewide average of 40%. Young professionals looking for city living, proximity to public transit and more affordable rents are likely driving this trend.

Though areas along the Blue Line have offered some pricing relief for apartment renters, asking rents have been climbing at a steady clip here as well; reaching $3.09/SF in 2017. New construction, particularly in East Boston and Revere, is partially responsible for this trend. Newly built multifamily properties in Boston and Revere are commanding between $3-$4/SF, which represents a $1-$2/SF premium over product constructed before 2012.

1111

6 0 -70 K BLU E L IN E

WEEKDAY R IDER

AVER AGE

WONDERLAND

• Necco Candy Factory: Plans to change the former candy

factory into a manufacturing hub for robotics. – future

800k+ sf of renovated commercial space

• Wonderland Greyhound Track: Potential entertainment

complex, with shops, restaurants, and office space

GOVERNMENT CENTER

• Easy connections to the Green Line

• Steps to North Station: Fastest growing Tech Center in Boston

• Faneuil Hall: Boston’s Shopping destination with over 100 retailers

• Bulfinch Crossing: 800 units, 100,000 SF retail

AQUARIUM

• Direct connection to the Financial District

• 35 MSF of office space

• Kennedy Greenway

• Abundance of restaurants, retail and hotels

MAVERICK

• East Boston: One of the city’s fastest

growing residential communities

• Clippership Wharf: 478 units

under construction

• 301-303 Border Street:

64 condos, 1,000 SF retail

AIRPORT

• Connections to Silver Line (Seaport & Financial Districts)

• 17th busiest airport in US

• Over 36 million passengers annually

ORIENT HEIGHTS / SUFFOLK DOWNS

• Suffolk Downs: Recently purchased by The HYM

Investment Group, Suffolk Downs, a 161-acre site, could

become one of Boston’s largest developments in recent

years. HYM’s vision for the site is a large, mixed-use

retail, entertainment, restaurants and residential area,

like Somerville’s Assembly Row

SIX STOPS FROM LOGAN INTERNATIONAL AIRPORT

MARKET OVERVIEW

12

Beach to Boston

13

Beach to Boston

14

STEPS TO THE BEACH, MINUTES TO DOWNTOWN BOSTON

BOSTON(10min)

±1.13 ACRES (±49,223 SF)

171 PERMITTED UNITS

WONDERLAND MBTA BLUE LINE STATION

REVERE BEACH STATION

MASS GENERAL OUTPATIENT CLINIC

REVERE BEACH

100 YARDS

BEACHMONT STATION

SUFFOLK DOWNS DEVELOPMENT SITE

LOGAN INTERNATIONAL AIRPORT

14

15

SITE OVERVIEW

BOSTON(10min) CAMBRIDGE

WONDERLAND MBTA BLUE LINE STATION

WONDERLAND PARKDEVELOPMENT SITE

90

93

PROPOSED COMMUTER RAIL STATION

170 KEY HOTEL(fall 2017 construction)

500 OCEAN305 UNIT APARTMENTS

(fall 2017 construction)

15

16

COMPLETE THE VISION AT WATERFRONT SQUARE

16

ACQUIRE THE LAST AVAILABLE BEACHFRONT PARCEL AT LOT 2 WITH THE OPPORTUNITY TO BUILD UP TO 171 UNITSThe vision that was unveiled just a few short years ago to transform one of Greater Boston’s most popular beachfronts is quickly becoming a reality. Waterfront Square is the first designated transit-oriented development in North America adjacent to a popular MBTA station and right at the beach. The Mixed-Use Master Plan is a $500 million development on 8.77 acres (1.37 million SF) that will be home to the finest in oceanfront living, retail, fine dining, outdoor cafes, a hotel, cultural and entertainment venues, and beautiful open spaces. It is also adjacent to the new Wonderland Multi-Modal Center, with a 1,465-car parking garage and Blue Line service connecting residents to one of the Country’s most sought-after economies in Downtown Boston.

Waterfront Square is one of the hottest, transit-oriented, lifestyle communities in Greater Boston that is backed by local, state and federal infrastructure funding. Residents enjoy one-of-a-kind, beachfront living, watch the sun-rise over the Atlantic, and have unmatched views of Boston. Highlights of new projects at Waterfront Square include:

• The Vanguard (Covington), a 194-unit apartment building that is 80% occupied• Ocean 650 (TA Realty), a 230-unit apartment building is currently 90% occupied• A 320-unit luxury apartment building (Gate/CrossHarbor Capital) is scheduled to begin this Fall• Spring Hill Suites (Lixi Group) – 170 Key hotel starting construction this fall• The state is looking at the potential to connect the Commuter Rail with the Wonderland Blueline station• The $75 million public investment in the site has set a high standard of design for the project and the growing neighborhood beyond

The FINAL OPPORTUNITY is a 1.13 acre, beachfront parcel with spectacular eastward looking views of the Atlantic Ocean and includes:

• SHOVEL READY site with infrastructure in place• The opportunity to construct up 171 MULTIFAMILY UNITS• FAST TRACK permitting• Commence construction by SUMMER 2018

LOT 2

17

SITE OVERVIEW

17

MBTA WONDERLAND STATION

500 OCEAN305 UNIT APARTMENTS

(fall 2017 construction)170 KEY HOTEL

(fall 2017 construction)

18

Revere Economic DevelopmentThere has been substantial support from the City of Revere and the State of Massachusetts. Waterfront Square was featured as one of the most important projects in Revere at the City’s Economic Development Summit about 2 years ago. It is also one of the state’s most important transit oriented development sites as selected by former Governor Mitt Romney, to transform the Revere Beach area into the premier mixed-use community along the coastal corridor of Massachusetts.

Revere Beach is registered and projected as a National Historic Landmark. Mindful of its historic significance, but with a keen eye to future, Revere has invested $341 million in itself. In addition to the $80 million in infrastructure improvements connected with Waterfront Square, the results also include:

NEW PLAYGROUND on Revere Beach Reservation

$131 million in FIVE NEW SCHOOLS

and a $7 MILLION MULTI-PURPOSE SPORTS COMPLEX

$25 MILLION for a new MBTA COMMUTER RAIL STATION

within 1/4 mile from Wonderland Station at Waterfront Square

$14 MILLION for a new community focused police headquarters

$9 MILLION IN TWO NEW FIRE STATIONS

$11 MILLION FOR BEACH RESTORATION

$50 MILLION IN WATER & SEWER

INFRASTRUCTURE IMPROVEMENTS

$9 MILLION for a COMMUTER PIERfeasibility study

$5 MILLION FOR NEW STATE PARK, MAINTENANCE FACILITY

18

19

ECONOMIC DEVELOPMENT

$9 MILLION for a COMMUTER PIERfeasibility study

A CITY ON THE MOVE

19

20

ANDREW G. KAEYER Executive Vice President617.457.3207akaeyer@naihunneman.com

IAN MCKINLEY Senior Associate617.457.3404imckinley@naihunneman.com

303 Congress StreetBoston, MA 02210617.457.3400www.naihunneman.com

This is a confidential presentation intended solely for your limited use when considering whether to pursue negotiations to acquire the property. This document and its contents are confidential and are not to be copied, circulated, or otherwise used without the express, prior written consent of NAI Hunneman Commercial. This investment brochure is subject to errors, omissions, prior sale, and withdrawal from the market without notice. The material contained in this brochure is based in part upon information supplied by the owner of the property and in part upon information obtained by NAI Hunneman Commercial from sources it deems to be generally reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents but rather only outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is made by NAI Hunneman Commercial or any of its subsidiaries as to the accuracy or completeness of the information.

Note: This property is exclusively listed with NAI Hunneman, Brokers from other firms may not copy or disburse this property information without prior consent from the listing broker. Cooperating brokers must complete “client registration form” (available upon request).

www.WaterfrontSquareMA.com

For more information about Waterfront Square Revere Beach contact: