A DIFFERENT APPROACH FOR A DIFFERENT ECONOMY

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A DIFFERENT APPROACH FOR A DIFFERENT ECONOMY
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Why is, and isnt picking a development partner
for the Hill East Riverfront Site like the Dating
Game?
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• Like the Dating Game
• Many highly qualified contestants
• All of them have something different and unique
  to offer
• You (the District) needs to pick between them

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• Unlike the Dating Game
• You are not picking someone for a single
  purpose, rather your are picking someone who will
  be married to you, and your successors, and your
  successors successors for the next 15-20 years
• The average tenure of a Deputy Mayor For
  Planning and Economic Development in DC over the
  last 18 years has been 2.25 years.
• If this trend continues there will be at least
  7 different deputy Mayors between now and the
  time this project is completed.

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• Reality
• We initially decided to pass on this site to
  concentrate on other opportunities However,
  when we realized that the entire world had
  changed since the RFP was released in March,
  2008, we felt compelled to talk with the city and
  the community about what these changes mean for a
  site like Hill East, and what value our
  perspective and our company can bring to this
  development.

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Dec. 10
Source NY Times Graphs
6 months ago, the suggestion that investors
around the world would buy 0 T bills was
unthinkable. Today it is a reality.
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Dow Jones Industrial Average over last 5 Years
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CME Futures Market for DC shows no return to 2006
real estate values through 2012
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US Terminated Transactions
Commercial Real Estate Sales, by month,
2001-August 2008
Source Real Capital Analytics, CW Capital
Markets Group
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Source Cushman Wakefield
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• DC Added 30,000 New Housing Units
• Between 2000 2008
• Median Absorption Was 4,000
• Units/Yr. (Highest In 60 Years)
• 56,000 Units In Pipeline Today
• 14 Years Of Absorption
• Original source is Washington DC Economic
  Partnership (Does Not Include Hill East Or NY
  Ave)

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• EastBancs Crystal Ball
• No Spec Development Financing In Any US Market
  For 2-5 Years
• Perfect Time To Prepare Land For Great
  Development And Sell Pads Into A Recover(ed)(ing)
  Market
• Greatest Mistake To Move This Site Before The
  Market Is Ready Result Could Be Watered Down
  Plan, Use And Execution, Higher Cost Lower
  Return

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• OUR ADVICE
• Pick A Land Development Partner Who You (And
  Your Successors successors) Want To Live With For
  The Next 15 Years.
• Focus near term on interim uses like artists
  spaces, sports fields and athletic facilities,
  markets, or temporary events
• Prepare site infrastructure, plan and entitle
  all building pads
• Sell pads for immediate development (no
  speculation) to large and small developers,
  including LSDBEs, when market demand and
  financing have returned

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• EASTBANC FOCUSES ON
• Building DC neighborhoods not buildings
• Working in complex places
• World Class Pedestrian-Oriented Design
• Financing projects in the global marketplace

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EXPERIENCE
RESPECT CONTEXT ACHIEVE EXCELLENCE
INFILL COMMERCIAL/RESIDENTIAL
HISTORIC REDEVELOPMENT RETAIL/RESIDENTIAL
NEW CONSTRUCTION WITH CHALLENGING TENANT
INFILL - RESIDENTIAL
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CADYS ALLEY
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CADYS ALLEY
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EASTBANC TRANSFORMS ORDINARY SITES INTO
EXTRAORDINARY PLACES
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EASTBANC TRANSFORMS ORDINARY SITES INTO
EXTRAORDINARY PLACES
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2200 M STREET
Retaining incorporating a difficult co-tenant
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22WEST
Retaining incorporating a difficult co-tenant
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DIFFICULT SITES
3303 WATER STREET
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CREATIVE SOLUTIONS
3303 WATER STREET
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INCINERATOR
VISION

• Adaptive re-use/integration of historic fabric
• Breakdown of scale with multiple building
  components
• Introduction of Ritz-Carlton/Ritz-Carlton-related
  high-end hotel office on South Street
• Reliance on theaters/retail to bring much-needed
  life to the Georgetown waterfront
• Multiple awards

• TravelLeisure 500 Greatest Hotels in the
  World, 2006
• Project of the Year National Commercial
  Builders Council, 2004
• Citation, Boston AIA, 2004
• Award for Merit/Citation for Design, New York
  State AIA, 2004

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GREEN ROOFS
VISION

• Embrace landscaping
• Upgrade design
• Reduce environmental impact
• Green roof garden components on each building

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NOTHING IS COOKIE CUTTER
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THE HILL EAST WATERFRONT SITE
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Site Size and Opportunity
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Same as about 12 square blocks on Capitol Hill
around Eastern Market
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Could support 7million square feet of density
if located Downtown
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Larger than the SW Waterfront Project Area
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A good lesson on what not to develop is Crystal
City Dense but
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EastBanc has developed over 1 million square feet
of contextual buildings within a similar sized
area of Georgetown.
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And over 1.36 million sf built, 1 million sf
acquired (and another 400,000 planned) within a
similar sized portion of the West End
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4 million square feet of development on this site
need not consume all the land. It can be
contextual, well designed and enable the
community and city create a special place for
residents
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KEY ADVANTAGES

• Strategic Approach To Deal With Market Reality
  And Maximize Districts Profits and Communitys
  Value Over The Life Of The Development
• Landbanc Fund Ability To Make A Major Equity
  Commitment To Begin Funding Infrastructure And
  Site Prep
• Long-term Local Company Operating Only In DC With
  Great Track Record Of Building Sustainable
  Places
• EastBancs proposal is not antagonistic to any of
  the other developers. Everyone of them would
  have ability to develop the pads under this
  proposal. You are not picking us over them, just
  our idea and approach over theirs.

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Its not just a date Its a relationship