Table of Contents Kearny Point Overview Market Research Comparable - PowerPoint PPT Presentation

K EARNY P OINT : F ROM S HIPYARD TO F ULLY I NTEGRATED C OMMUNITY P HASES 3 & 4 R EDEVELOPMENT P LAN H IGHBRIDGE P ARTNERS F RANK F ARINELLA J R ., A LEX K ESZELI , S ARAH A NN R OZSA , M ATTHEW F ANELLI , S TEPHEN A LY , C HRISTOPHER B OYLAN Strictly Confidential

2 Table of Contents • Kearny Point Overview • Market Research • Comparable Projects • Phase 3 and 4 Development • Construction Timelines • Financials • Investment Conclusion • Appendix

3 I. Kearny Point Overview Kearny Point, a former site of Amer eric ican an indu ndustr trial ialism ism and home of the Federal Shipbuilding and Drydock Company, is being transformed into an innovative hub for modern workspace. Through its evolution, it is now seen as a place of flexi xibil bilit ity, inventio ion and entre repr preneurs rship ip, attracting tenants from various industries. Along with its history and future potential, Kearny Point will provide tenants of all sizes the opportunity to be part of a developin ing g ecosys ystem tem. From startups and non-profits to industry leading companies, Kearny Point will provide space for office, laboratory, artwork, hospitality, dining, and recreational enjoyment for all of the employees in the community.

4 II. Location Kearny Point is centrall ally located, featuring easy access to the maj ajor r population ion centers rs of Newa wark rk, , Jersey Ci City, , and Manhatt ttan an, , while being conveniently located just 10 minutes from Newark wark Liberty y Interna rnatio tional al Airpo port.

5 II. Transportation Kearny Point is located in close prox roximit imity multiple highways and local thoroughfares. There is easy access to the New Jersey turnpike via the Lincoln Highway, in addition to nearby connections to throughways such as Route 9, Interstate 280, and Interstate 78. Along with vehicular transportation, there are multip iple le transi sit t options in Newark and Jersey City, including, New Jersey Transit Passenger Rail, Hudson-Bergen Light Rail, PATH, and Hudson River Ferries. In addition, New Jersey Transit Bus Services are available in the area, while new stops and expanded schedules will be added for the future redevelopment of Kearny Point. KPIP is working with NJ Transit to arrange a shuttle bus service that would link with the Ligh ght t Rail station at West Side and Claremont Avenue in Jersey City. The redevelopment site will be pedestria rian and bike ke friendly dly with walking paths as well as designated bike lanes connecting all buildings and amenities.

6 II. Greater Kearny Economy With investments surpassing $1 billion over the next several years in Kearny, NJ, 10,000 new jobs will be generated, accumulating millions in Local, County and State tax revenues. Since the site is deemed an opportunity zone, the redevelopment of Kearny Point further encourages diverse economic growth, allowing its innovative atmosphere to attracts highly educated and skilled workers. House usehol hold d Incom ome Kearny, NJ: $61,558 Hudson County, NJ: $63,808 USA Avg: $59,039

7 II. Labor Pool The surrounding workforce has increased dramatically in step with the revitalization of Kearny Point. Individuals are moving to Kearny because of its opportunistic environment. Dynamic spaces are attracting forward thinking companies and entrepreneurs who value innovation. The liveliness and of the area has created a neighborhood composed of both families and a growing white-collar population. The recent influx of workers was noted through a strong housing market and high population density. This is expected to further increase as Kearny Point’s development will create thousands of jobs. In close proximity to renowned colleges and universities, Kearny Point will benefit from an increased talent pool, matriculating from STEM and business programs.

8 II. Incentives New Jersey offers numerous incentives that help pro romote te economic ic grow rowth th and opportunit ity for entrepreneurs, startups, as well as established companies, allowing businesses to thrive. The NJ NJ Ignit ite program provides grants that subsidize the rent of early stage technology and life science companies in collaborative workspaces, while the NJ NJ Co-Vest st Fund and NJ NJ Founders s and Funders program help propel innovative opportunities with various grants. Lastly, the Gro row NJ NJ Assistance Programs offer tax credits to businesses that create and help retain jobs in New Jersey. Kearny Point is located within an Urban Enterprise Zone, which benefits include reduced sales tax, tax-free purchases and financial assistance. The EDA also aims to foster innovation by nurturing the development of new technology through matching loan pro rogra grams, ms, tax incentiv ives, , and network rking g opportunit unitie ies with the investment community.

9 II. Sustainability The development will seek LEED Campus s Certif ific icatio tion for phases 3 and 4 of development by implementing various sustainability initiatives and practices including: • Gre reen Ro Roofs fs – Reduces “heat island effect”, rainwater overflow collected into cisterns for reuse in the building's cooling system • Greywater storage and irrigation utilization • Bio walls – Allows for a vertical orientation aesthetic while reducing the need for expensive mechanical air filtration systems • Sustainably Sourced Insulation • Semco Ch Chille led d Beams s - Provide superior indoor air quality; quiet operation, and no draft • Solar Panels – Reduces campus power consumption • View Dynamic mic Windows s - Eliminates the need for blinds/shades and allows in abundant light without excessive heat and glare. • Solar-and Wind-powered street lamps • Perme meab able le Asphalt lt – Reduces stormwater runoff rate and incidences of flooding • EV Charging Stations • Bike Storage and Designated Bike Lanes – Encourages sustainable transportation and healthy living • Eco-Friendly Cleaning Products • Pl Plast astic ic Bottle le Re Restrict rictio ion – Employers provide refillable containers to be used at filling stations, reducing plastic usage and on-site litter

II. Sustainability Su Susta stain inabil bility is one of Kearny Point’s core values and focuses. Why y is sustainabi ainabili lity y impor ortant ant ? • According to the USGBC, “The new Class A office space is green; leas ase-up rates s for green buildings typically range from average to 20% above average.” • According to the USGBC, “The overall va vacancy y rate for green buildings was 4% lower than for non-green properties – 11.7%, compared to 15.7%” • Happier and healthier employees lead to increase reased d pro rodu ductiv tivit ity, top talent attrac actio tion and re retentio ion, less frequent sick days, and decreased medical costs

11 III. Comparable Projects Brook Bro oklyn yn Navy y Yard The Brooklyn Navy Yard is currently undergoing a $2.5 billion Philad adelphi lphia a Navy y Yard redevelopment of the 330 acre property. There is a total The Philadelphia Navy Yard is located in the Southern part development amount of 2 million sf, which will add close to of the city and provides new life to the historic site. The 10,000 jobs by 2020. The property provides space for office, 1,200 acre site consists of 7.5 million sf with a total of 13 laboratory, manufacturing, technology, and food service million sf in the masterplan. The campus consists of office, tenants. The immense Yard has over 400 tenants, while having research & development, industrial, and recreational space. a 90% retention rate. Tenants at the property include, Wegmans There are currently more than 13,000 employees from Food Store, which will have a 79,000 sf store located in companies such as GSK, Urban Outfitters, and Tasty Baking Admirals Row & 399 Sands. Additionally, Steiner Studios, a Company. successful television and film studio, adding 180,000 sf.

12 IV. Phase 3 – Building 82 Building 82 will foster a collaborative environment for its varied tenant base. The 120,000 sf space will hold flexibl ible office space for start-ups and smaller companies, art studios s for the creative minds in and around Re Rendering ring of Exterio rior Kearny, along with indu ndustr trial ial kitche hen space. Building 82 will mirror Building 78’s creative energy. In this space, we will seek a partners rship ip with 1776, a company offering an advanced co-working environment for its tenants. The 7 story building will consist of 30,000 sf floorplates (300 x 100), accommodating tenants of varying sizes. There will be a podium parking structure for the building, offering thre ree levels s of parkin ing g and a total of 276 spaces. In addition, there will be a service elevator for tenants to move their supplies and equipment to their floor, along with 16 foot exposed ceilings. Parkin king g for Building 82 will be fre ree of charge rge, a perk that small tenants and studio space users will enjoy.