Development rights

Michael Gargano

There are development rights but not clear how much exactly. This directly relates to building height limits, FAR etc.

Michael will update us after his visit on Thursday.

Anthony Barrett

On Oct 28, 2013, at 6:14 PM, Michael Gargano <mgargano@argentventures.com> wrote:

Spoke to the broker at Eastdil arranging debt. He said there is a smaller universe of lenders to finance an operating business like a studio and it tends to be pricier than conventional property financing. He said there are 6-1- lenders. Typical terms would be 60% LTC at low 500s over LIBOR. Lots of flexibility in terms of prepaying etc. So the debt they have identified doesn’t juice the price which is fine.

He also said other bidders think there may be a few hundred thousand sf of development opportunity.

Michael D. Gargano

Argent Ventures LLC

551 Fifth Avenue – 34^th Floor

New York, NY 10176

(212) 692-5407

mgargano@argentventures.com