Osborn Campus

Expansion of The Campus - An Enduring MIT Community

Phoenix Development Group

Bozho Deranja, Anthony Guma, Tianjin Luo, James Rizzo

EFFICIENT FLEXIBLE

ENDURING SUSTAINABLE

PREPARED PRODUCTIVE

Osborn Campus

Osborn Campus / Phoenix Development

Osborn Campus

Osborn CampusCreating

Synergies

• Adaptive Reuse• Flexible Design• Efficient Energy• 24 Hour Activation• Complimenting Cluster Plan• Strengthening the MIT

Image

Providing Returns

• $350 Million Paid Upfront• 4 phase construction• Flexible to MIT’s needs– And to the Market’s

• Experienced management• Attracting Students and

Faculty

Osborn Campus

Program

ResidentialOfficeRetailHotelConference CenterLabAcademic

Total

483,576 762,899 76,701 303,477 62,619557,052 857,936

3,104,260 SF

Osborn Campus

ResidentialLab

Office/ Academic Mixed Use

TOD Corner5

SYNERGETIC CLUSTERS

Osborn Campus

TOD Mixed-Use• 100% Corner• Mass. Ave. • MIT• Service to Business• Urban Ring• Activation

Osborn Campus

Academic• The Corridor Continues• Campus Feeling• Flexible Space• Industry Relations / Lively

Environment

Osborn Campus

Lab / Bio-tech• Proximity to Tech Sq.• Premium Rents • MIT - relationship

– Flexible Space• Biotech Campus

Osborn Campus

Residential• Neighborhood History• Walk-able living• Shared Views• 24 Hour Activation• Proximity

– Kendall SQ / Central SQ /Urban Ring

Osborn Campus

Mixed Use – Mass. Ave.• MIT & Central

– Bridging the Gap– Critical Mass

• Hip / Modern Hotel• 5 Star Restaurant / Bar• Desirable Office Address

Osborn Campus

Value DriversMIT• Functional and Flexible

Academic Facilities• $350 million proceeds• An Extension of Campus

– 600 student beds by 2011– 600,000 sq. ft. Academic

Space by 2012

• MIT Retains Ownership• Professional Management• Strengthened Relationship

with Community & Industry

City of Cambridge• Activation of Surrounding

Neighborhood• Tax Benefit / Low Draw

on Services• Reasonable FAR of 4.0

– Planned Unit Development

• Mixed Income Housing• 24 Hour Walk-able

Environment• Job Creation

Osborn Campus

Development Deal

• $350 Million Upfront for 99 year Ground Lease – $1 per year lease – MIT Retains Land Ownership– Figures based on 8% WACC and 6.5% Cap Rate

• Phoenix Development Owns Builds (Sans Academic)

• Academic Buildings Built at cost plus Developer’s Fee ($146,571,685)

• MIT Retains Right of First Refusal for All Non Academic

• Phoenix Development Group Professionally Manages Properties