666 fifth avenue - jonathan leejonleedesigns.com/pdfs/666_om.pdf · introduct i on retail corridor...

666 FIFTH AVENUE

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OVERVIEWTST/TMW 666 FIFTH, L.P. (a partnership between Tishman Speyer and TMW) has retained Cushman & Wakefield, Inc. (“C&W”) as its exclusive agent and advisor to offer for purchase TMW’s 95 percent interest in 666 Fifth Avenue (the “Property” or the “Building”) a 41-story trophy office tower occupying a full blockfront site on Fifth Avenue between 52nd and 53rd Streets in the heart of Midtown Manhattan’s Plaza District, which is one of the most recognized areas in the world. 666 Fifth Avenue was designed by the architectural firm of Carson and Lundin and built by Tishman Realty & Construction Company Inc. in 1957. The Building contains approximately 1,549,623 rentable square feet including 21,972 square feet of prime Fifth Avenue retail space and valet parking for 90 cars.

The Property is comprised of blue-chip office tenants and offers retailers an exceptional marketing presence along Fifth Avenue – the most sought after retail location in the world commanding the highest retail rents in Manhattan.

This Offering presents a rare opportunity for select investors to acquire a significant stake in a true trophy asset that is located in the heart of Midtown, as well as partner with a world class operator and one of the largest landlords in New York City. 666 Fifth Avenue provides both a strong, stable cash flow and tremendous upside potential with office and retail rents well below market levels.

WELL-LEASED, STRONG CASH FLOW AND UPSIDE POTENTIAL 666 Fifth Avenue has historically enjoyed high occupancy and is presently 99 percent leased. Tenants represent the financial services, legal services and real estate industries, all of which enjoy the prestige and convenience of the Property’s Fifth Avenue Plaza District location. The majority of the Building is leased to credit-worthy tenants with the remainder occupied by a mixture of boutique office and retail users. The Building has a history of long-term, stable tenancy and has consistently attracted various high profile law firms and investment banks who desire to maintain a presence in this prominent location.

In addition to the strong stable cash flow, the Property has tremendous upside potential due to 877,110 square feet of tenant rollover (61 percent of the total building) during the next five years. The average escalated in-place rent for these tenants is 29 percent below market.

IRREPLACEABLE LOCATION AND STRENGTHENING MARKETThe Property is situated in Midtown’s exclusive Plaza District, which includes the esteemed Madison/Fifth Avenue submarket. This premier commercial district commands the highest office and retail rents in Manhattan. It features an array of finance, legal and Fortune 500 firms amongst office towers that command New York City’s highest rents. Fifth Avenue and Madison Avenue are two of the world’s most expensive retail corridors, lined with internationally recognized luxury retailers. Fashion designers and luxury goods retailers have long considered a presence in the Plaza District’s Fifth Avenue

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retail corridor as a necessary strategy that can be leveraged for advertising, marketing and branding. The Madison/Fifth Avenue area has consistently remained one of New York’s most stable markets due to its diverse, high-quality tenant base. Its prestigious Class A office inventory and proximity to restaurants, hotels, entertainment and transportation all contribute to its desirability. Currently, this submarket’s Class A vacancy rate of 7.0 percent is at its lowest point since the fourth quarter of 2000. The Class A direct vacancy rate, at 5.8 percent and declining, represents an almost 28 percent decrease in the past twelve months and is rapidly driving up rental rates. Class A direct availabilities have declined substantially, falling an impressive 41 percent from January 2005, with few large blocks of space remaining.

ASSET QUALITY666 Fifth Avenue, with its embossed aluminum exterior, is an architecturally significant building with a timeless design. The Property underwent an extensive $39 million renovation in 1999. The renovations included new retail stores and a glass curtain wall covering the first and second floors. Renovations since 1999 have included a $1.7 million low-rise, freight and loading dock elevator modernization project, as well as a $2.1 million replacement of the Building’s main electrical switchboards, an electrical capacity upgrade, full sidewalk replacement, lobby renovation to create the Hickey Freeman Fifth Avenue retail space and a $2.3 million HVAC upgrade that included installation of a BMS system.

666 Fifth Avenue is situated on a nearly rectangular plot and occupies the entire westerly blockfront of Fifth Avenue between 52nd and 53rd Streets as well as providing 200.1 feet of prime frontage on Fifth Avenue, 315 feet of frontage on West 52nd Street and 300 feet on West 53rd Street.

The Building floor plates range from 24,000 to 78,500 square feet. The Building’s base floors are in very high demand due to the rarity of large floor plates this size in Midtown. The retail component contains approximately 92,706 square feet of rentable area on portions of the basement, ground and second floors, including almost 22,000 square feet of prime Fifth Avenue retail. The Building also offers spectacular Fifth Avenue, Central Park and Midtown views. The retail space is anchored by leases with the NBA’s flagship store, the venerable Hickey Freeman and the renowned Brooks Brothers. Other prominent retail tenants include HSBC Bank and boutique footwear retailer Botticelli.

INVESTMENT SUMMARY

Interest OfferedThis investment offers the opportunity to acquire a 95 percent interest in this world-class Property by forming a joint venture with one of the most respected and experienced property owners and managers in the industry, Tishman Speyer. Tishman Speyer is one of the world’s leading owners, developers and operators of first-class real estate and has developed or acquired a portfolio of over 111.2 million square feet that is valued at more than $39.5 billion. In addition to 666 Fifth Avenue, Tishman Speyer’s portfolio includes other world-class properties such as New York’s Chrysler Center and Rockefeller Center, Frankfurt’s MesseTurm, Berlin’s Sony Center and Sao Paulo’s Torre Norte. The basic terms and conditions of the joint venture are:

Partnership StructureA limited partnership with affiliates of Tishman Speyer Fund IV, L.P. serving as general partner.

DistributionsThe 5.0 percent interest retained by Tishman Speyer Fund IV, L.P. will share on a pari passu basis, certain return levels with the 95 percent interest investor. Thereafter, Tishman Speyer Fund IV, L.P. will receive a greater, disproportionate share. These provisions will be more fully negotiated as appropriate.

LiquidityInvestor and Tishman Speyer shall negotiate an acceptable mechanism for achieving desired “exit” strategies.

ConclusionThe acquisition of a majority interest in 666 Fifth Avenue presents the rare opportunity to own one of Manhattan’s trophy office buildings in the strongest commercial real estate market in the City’s history. This investment offers stability from blue chip tenants with long-term leases and tremendous upside from dramatically increasing rents. 666 Fifth Avenue offers every ingredient of an ideal real estate investment: one of Manhattan’s finest Class A office buildings with a credit-worthy tenancy, upside from below market rents and near-term rollover, a partnership with the world’s most prominent development company and a property located in arguably the best location in the world.

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AREA OVERVIEW666 Fifth Avenue occupies the entire blockfront of the

western side of Fifth Avenue between 52nd and 53rd

Streets in the heart of Midtown Manhattan’s Plaza

District. The Plaza District, Manhattan’s premier office

and retail district, runs from 49th through 59th Streets

between Park Avenue and Avenue of the Americas. This

premier commercial district commands the highest

rents in Manhattan. It features an array of Fortune 500

firms competing for New York City’s highest renting

office towers. Fifth Avenue and Madison Avenue are

two of the world’s most expensive retail corridors,

lined with internationally recognized luxury retailers.

The Property is within walking distance of sights that

attract visitors from around the world—Central Park,

Rockefeller Center, St. Patrick’s Cathedral, the Museum

of Modern Art and Time Warner Center—providing an

incomparable location.

MIDTOWNMidtown Manhattan is the dominant commercial,

retail, cultural and residential center of New York City,

offering businesses, tourists and residents an energized

global platform in which to participate. It is densely

developed and dominated by large office buildings

with the highest concentration of Fortune 500 firms in

the world. Midtown is a magnet for image-conscious

tenants, offering an array of high visibility addresses

to choose from, including 666 Fifth Avenue. Along

with its collection of legal and financial powerhouses,

Midtown has established itself as the entertainment

and media center of the world, having secured media giants

Bertlesmann, Viacom and Sony, in addition to having all the

major TV networks (ABC, CBS, Fox and NBC) headquartered

in Midtown. The diversity of Midtown industries has been a

hallmark of its strength and stability.

A PLAZA DISTRICT OFF ICE LOCATION The Plaza District is known for its high concentration of

corporate headquarters. The District is dominated by blue-

chip tenants in the banking/finance, insurance, legal services,

telecommunications, publishing/media and accounting sectors.

Major tenants include AllianceBernstein, AXA Financial,

The Blackstone Group, Citigroup, Commerzbank, The Estee

Lauder Companies, Inc., Jefferies & Company, Inc., Kramer

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Levin Naftalis & Frankel LLP, L’Oreal USA, Inc., Marsh &

McLennan, The McGraw-Hill Companies, McKinsey & Co.,

NBC, Orrick Herrington, PricewaterhouseCoopers, Société

Générale, UBS, Verizon, Wachtell, Lipton, Rosen & Katz and

Weil, Gotshal & Manges.

MADISON/F I F TH AVENUE SUBMARKET The Property is located within the Madison/Fifth

Avenue submarket within Midtown’s Plaza District. The

Madison/Fifth Avenue area has consistently remained

one of New York’s most stable markets due to its diverse,

high-quality tenant base. In addition to the GM Building,

666 Fifth Avenue is the only other building greater than

1.0 million square feet in the submarket (excluding

Rockefeller Center). The submarket’s prestigious Class

A office inventory and proximity to transportation both

contribute to its desirability. Some of the most well-

known and respected corporations in the world, such

as Coca Cola, Citigroup, Estée Lauder, General Electric,

IBM, Polo Ralph Lauren and Sony are located within

blocks of the Property. This concentration of highly

regarded companies distinguishes the neighborhood

and is complemented by money managers, hedge funds,

international law firms and other high-end, boutique

service tenants.

The Property’s highly coveted Fifth Avenue location,

along with its proximity to the Madison Avenue and 57th

Street retail corridors, makes this Property perpetually

desirable to high-end office and retail tenants.

HOTELSSome of world’s finest luxury hotels are also located within

a few blocks of 666 Fifth Avenue, adding to the cachet of

the neighborhood. These hotels include The Plaza (under

redevelopment), The Lowell, The St. Regis, The Peninsula, The

Palace, The Four Seasons, Plaza Athénée, The

Ritz Carlton, The Sherry Netherland, The Pierre,

The Chambers and The Waldorf-Astoria.

CULTURAL AMEN IT I ES

A number of world-renowned museums

and some of Manhattan’s most exclusive

social clubs are also in close proximity

to 666 Fifth Avenue. The Museum of

Modern Art, the Museum of Television

and Radio, the Museum of Art & Design

and the American Folk Art Museum attract

thousands of visitors from across the globe.

Exclusive social clubs such as the University

Club, Metropolitan Club, Friars Club, The

Women’s Republican Club and the New York

Racquet & Tennis Club enhance the location

as a central destination and meeting point

for Manhattan’s most influential business,

professional and civic leaders.

RETA I L LOCAT ION

666 Fifth Avenue is situated in the world-famous

Fifth Avenue corridor, surrounded by prominent

national and international luxury retailers.

Neighboring retailers include Cartier, Salvatore

Ferragamo, Gucci, Zegna and Versace. The

Property also benefits from being in proximity

to the esteemed 57th Street retail corridor. A

Fifth Avenue address is much more than an

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E 58TH STREET

E 59TH STREET

E 57TH STREET

E 56TH STREET

W 58TH STREET

W 57TH STREET

W 56TH STREET

E 55TH STREET

E 50TH STREET

E 51ST STREET

E 52ND STREET

E 54TH STREET

E 49TH STREET

W 55TH STREET

W 54TH STREET

W 53RD STREET

W 50TH STREET

W 51ST STREET

W 52ND STREET

W 49TH STREET

299 ParkWestvaco

Inter-continental

Hotel-The Barclay

St.BartholomewChurch

570 Lex

560 Lex

345 Park

399 ParkCitigroup

405Park

110E 55

CentralSynagogue

425Park

Tower 56126 E 56

YWCA101 E 52ManhattanTower

120 E 56

Waldorf Astoria

375 Park

Seagram

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445Park

HotelLombardy

130 E57HabitatHotel

RitzTower

115 E 57Galleria 135

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499Park

110E 59

130 E 59

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505Park

111 E 59LighthouseInt'l

750 Lex

InternationalPlaza

515 Park

686Lex

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RegencyHotel

645 Mad635 Mad

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55 E 59DelmonicoPlaza

30E 60

DelmonicoHotel

14E 60

HotelPierre

650 Mad

CarltonHouse

5E 59

GrandArmyPlaza

711 FifthCoca-Cola

725 Fifth/Trump Tower

727 FifthTiffany's

Nike Town

745Fifth

767 FifthGM Bldg. at Trump Int'l. Plaza

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11 E1 E 57LVMH

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717 Fifth Merril l Lynch

49 E 52

509Mad501Mad

55 E 52ParkAvePlaza

Racquet& TennisClub

625 MadRevlon

500Park

601Mad

595 MadFuller Bldg.

Regent of NY 60

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575Mad

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450Park

555 MadCoates

65 E 55ParkAveTower

430 Park

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St. Regis

60 E56

551Mad

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655 Fifth 11 E 52OmniBerkshirePlace

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PulitzerFountain

425Mad

485Mad

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40 E 52SecurityPacificTower

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320 ParkMutual ofAmerica

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300 ParkColgatePalmolive

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280 Park

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12 E 49Tower 49

410 MadBank of China

SaksFifthAvenue

645 FifthOlympic Tower

St. Patrick'sCathedral

St. ThomasEpiscopal

Museum of Modern Art25 W 53Museum of Modern Art

51 W 52CBS 31 W 52

Deutsche Bank

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Museum of Broadcasting

75 Rockefeller PlazaAOL/Time Warner Plaza

1290 SixthAXA Financial Center

650 Fifth

640 Fifth

1270 Sixth

RadioCityMusicHall

50Rockefeller

Plaza 630 FifthInternationalBldg.

30 Rockefeller Plaza/1250 SixthGE Building

620 Fifth

610 Fifth

608 Fifth

600 Fifth

OneRockefellerPlazaTen

Rockefeller

20 RockefellerPlaza/Christies

1230 SixthParamountPublishingBuilding

RockefellerPlaza

MOAFAMuseumTower

1330 Sixth

Financial Tim

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HotelRitz-Carlton

HotelPark Lane Plaza

Hotel

BergdorfGoodman9 W 57

Solow Bldg.31 W

29 W

33 W

37 W

40 W 57The SquibbBuilding 29

W 5635W 56

26 W 56

41 W 56

730 FifthCrown Bldg.724 Fifth720 Fifth

40 W 55

46 W 55

60 W 55

65 W 55

33 W 55ShorehamHotel

1370SixthContinentalTower

1350 Sixth

WarwickHotel

9 W 54

20 W 55

13-15 W 54

PeninsulaHotelUniversityClub

6 W

16 W20 W24 W

30 W

41 W

49 W

712 FifthFifth Ave.Presbyterian Church

57W

1414 Sixth

Central Park

171 W 57The Briarcliff

145 W 57Plaza 57 at Nippon Club Tower

Salisbury

Hotel

BuckinghamHotel

NY AthleticClub

EssexHouse

Hamp-shireHouse

119 W

Central ParkIntercontinental

CentralPark Mews

TrumpParc

Helmsley-Windsor Hotel

787 SeventhEquitable Tower

1285 SixthUBS|PaineWebberBldg.

SheratonTowers

Flatotel

1301 SixthCreditLyonnais Bldg.

825 SeventhTower 53

1325 Sixth New York Hilton

J.W. Marriott NYRihga Royal Hotel

ZiegfieldTheatre 1345 Sixth

Alliance CapitalBuilding

156 W 56CitySpire

Carnegie

Hall 152 W 57

CarnegieHallTower

142W 57MetropolitanTower

ParkerMeridien

WellingtonHotel

CarnegiePlaza

CityCenter

125W 55

745 SeventhLehman Brothers/Rockefeller Plaza West

721Seventh

729Seventh 1221 Sixth

McGraw-Hill

1251 Sixth

MichelangeloHotel

135 W 50Sports Il lustrated Bldg.

1271 SixthTime-Life

GrandHyatt

245 Park

277 ParkJ.P. Morgan Chase & Co.

250Park

237ParkPark AvenueAtrium

230 Park

200 ParkMetLifeBuilding

GrandCentralTerminal

PershingSquare

420 LexGraybarBldg.

450 Lex

W New York-TheTuscany

W New York-The Court

101 Park 370 Lex

360 Lex

125Park

110 E 42 122E 42ChaninBldg.

E 39TH STREET

100 Park

10E 39

270 Mad 265 Mad

437

E 41ST STREET

E 40TH STREET

295 Mad

285 MadYoung & Rubicam

DylanHotel

52 E 41475 Fifth461Fifth

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286 Mad

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22 E18 E

9 E

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E 48TH STREET

E 46TH STREET

E 44TH STREET

E 43RD STREET

E 42ND STREET

270 ParkJ.P. MorganChase & Co.

383 MadBear StearnsPark AvenuePlace

341-47MadMTA

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335 MadBank ofAmericaPlaza

41 E 42317 Mad

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60 E 42LincolnBldg.

501 Fifth

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300-310 MadCIBC

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529 Fifth 521 Fifth

12E 44 340

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555 Fifth

551FifthFred F. French Bldg.

6 E 46

575 Fifth

565 Fifth

589 Fifth587579

400Mad

380Mad

366Mad

20E46

360Mad

Merchantile Library

7E 47

3E 44

301 Mad

1 E 42

RooseveltHotel

1212 Sixth1200 Sixth

1156 11501140Sixth

1185 Sixth

W 48TH STREET

W 46TH STREET

W 44TH STREET

W 43RD STREET

W 42ND STREET

W 40TH STREET

48 W 48

22 W 48

6W 48

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580 Fifth

576 Fifth

562

20 W 2W 47

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Jewelers

Exchange 21 W 46

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16 W

10 W46

2 W 46 550

Fifth

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Algonquin

62 W

Harvard

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19 W 44

24 W 45

8 W 45

15 W 44

2 W 45

1120 SixthHippodrome Century

Club

1100 SixthHBO

1114 SixthWR Grace Building

CU

NY 11 W 42 505

Fifth

Columbia Univ. Club

BryantPark

New YorkPublic Library

Diamond District55 W 47

570

55 W 44

1040 Sixth

Iroquois52 W

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35 W

15 W 39

Royalton

Hotel

25 W 43

Princeton

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Penn

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W 39TH STREET28 W 39

Mil l ineryDistrict

W 41ST STREET1441Bdwy

561Seventh

14351431Bdwy

1095 SixthVerizon

Four Times SquareConde Nast

1101SixthOne BryantPark

150 W 45

120 W 45Tower 45

Savoy

Theater

Belasco

Theater

1155Sixth

LyceumTheater

H.S. for Int'l Careers

1177 SixthAmerica'sTower

TimesSquare

1540 BdwyBertelsmannBldg. 115

W 45

1412 Bdwy

1450 Bdwy

1440 Bdwy

119W 40

111 W 401065 Sixth

1071 Sixth

1475Bdwy

1466Bdwy

1460 Bdwy

140W 42

130W 42BushTower

1133Sixth

1500Bdwy

Toys R Us

120W 44

1567 BdwyW New YorkTimes Square1560 Bdwy 151

W 46

St.M

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114 W 47US TrustAmericanPlace Theater

701Seventh

HampshireHotel

1211 Sixth

145 W 45

MuseHotel

LEXINGTON AVENUE

PARK AVENUE

VANDERBILT AVENUE

SEVENTH AVENUE

BROADWAY

Times Square Tower

Museum

ofA

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Folk Art

Am. CraftMuseum

15 E 57

597 FifthScribnerBldg.

600Mad

19 E 57ChristianDior

598Mad

590MadIBM

590MadSony

665 Fifth

Cartier 488Mad

444Mad

424Mad

420Mad410Mad

Bank of China

623Fifth

18E18E16E

19E

11 E 51BancoMercantilde Venezuela

299 MadLibrary Hotel

130 W 44LambsTheater

CornellClub

One TimesSquare

Office Buildings

Hotels, Public & Private Institutions, Major Retail and Major Residential Complexes

Mixed-Use Buildings

Points of Interest

Transportation Terminals

Proposed Developments

Subway Stations

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666 FIFTH AVENUE

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opportunity to sell to affluent locals and tourists. Many fashion

designers and luxury goods retailers use a physical presence

in the area as a branding statement that can be leveraged for

global advertising and marketing. Just as Rodeo Drive in Los

Angeles, Ginza in Tokyo, Avenue des Champs Elysees in Paris

and Oxford Street in London are internationally recognized

as premier retail districts, Fifth Avenue and 57th Street are

considered destinations for high-end shoppers worldwide

and situate the Property at the epicenter of the world’s best

retail destination.

The Fifth Avenue retail corridor between 49th and 59th

Streets, which is anchored by Saks Fifth Avenue to the

south and Bergdorf Goodman to the north, is home to some

of the world’s most prestigious and highest priced retail

properties. It is estimated that over 55,000 people pass

through this corridor each day. Its proximity to the most

affluent and densely populated neighborhoods in the United

States, coupled with the area’s appeal among international

tourists, result in some of the highest retail rents in the world.

This heavy pedestrian foot traffic attracts both local and

international retailers interested in increasing their visibility

and gaining valuable exposure in the world’s most prominent

retail corridor. Catering to fashion-conscious consumers,

Fifth Avenue is the premier location for high-end, luxury

retailers such as Cartier, Harry Winston and Louis Vuitton.

Globally recognized brands such as Apple and Disney also

have established a major presence on Fifth Avenue and

these stores have become destinations in their own right.

Additionally, the 57th Street corridor is the home of such

retail luminaries as Burberry’s, Hermès, Tiffany and Chanel

as well as representing the epitome of the classic high-end

New York City shopping experience.

TRANSPORTAT IONThe Property is ideally located within Manhattan’s

transportation grid and is easily accessible by both public

LUXURY HOTELS PREMIER RESTAURANTS FIFTH AVE RETAILERS 57TH STREET RETAILERS

Carlyle Hotel “21” Armani Exchange Ascot Chang

Chambers Hotel Aureole Bergdorf Goodman Audemars Piguet

Four Seasons Hotel Bice Boucheron Brioni

Hotel Pierre Daniel Brooks Brothers Buccellati

Le Parker Meridien Ducasse Bulgari Bulgari

Mandarin Oriental Four Seasons Cartier Burberry’s

New York Hilton Jean Georges De Beers Chanel

New York Palace La Grenouille Disney Christian Dior

Park Lane LCB Brasserie Rachou Faconnable Club Monaco

Peninsula Hotel Le Bernardin Gucci Coach

Plaza Athénée Lever House Harry Winston Dana Buchman

Regency Hotel Masa Hickey Freeman Hermès

Righa Royal Nobu Louis Vuitton Jacob & Co

Ritz Carlton Oceana Saks Fifth Avenue Jil Sanders

Sherry Netherland Per Se Salvatore Ferragamo Kenjo

St. Regis Hotel Remi Takashimaya Mont Blanc

The Lowell San Domenico Van Cleef & Arpels Prada

The Plaza San Pietro Versace Tiffany & Co.

W New York Tao Wempe Tourneau

Waldorf-Astoria Town Zegna Yves Saint Laurent

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and private transportation. Specifically, six

separate subway stations within a five-block

radius of the Property allow convenient

access to the N, R, Q, W, 1, 2, 4, 5, 6, A, B, C, D,

E, F, V and S lines. 666 Fifth Avenue has direct

access to the E and V trains at the Building.

All parts of Manhattan, Brooklyn, Queens and the Bronx are

easily reachable from the Property. These subway lines also

provide quick and direct access to the main commuter train

stations—Grand Central Terminal and Penn Station—as well

as New York City’s main bus terminal, the Port Authority.

F I F TH AVENUE : H IGH-END RETA I L COMPARABLES

DATE ADDRESS TENANT SF F LOOR RENT (PSF )

3Q05 730 Fifth Avenue Bulgari 3,675 Ground $1,300

3Q05 694 Fifth Avenue Sergio Rossi 950 Ground $1,000

4Q04 743 Fifth Avenue Gilan Jewelers 1,900 Ground $950

2Q04 720 Fifth Avenue Abercrombie

& Finch

5,000

7,000

5,000

Ground

2

LL

$1,300

$200

$150

3Q03 689 Fifth Avenue Zara 3,000

2,092

4,500

Ground

Mezz

Bsmt

$950

$25

$0

3Q03 663 Fifth Avenue Ermenegildo

Zegna

5,000

1,000

Ground

Bsmt

$1,200

$0

2Q03 655 Fifth Avenue Salvatore

Ferragamo

3,841

7,099

34,500

3,933

Ground

2

3-8

LL

$800

$175

$45

$35

Grand Central Station is utilized by more than a half-million

people daily. The Port Authority Bus Terminal and Penn

Station, the hub for commuters from New Jersey and Long

Island, respectively, serve nearly three-quarters of a million

people every day.

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OVERV I EW

666 Fifth Avenue is an elite, trophy-quality, 41-story office

building containing approximately 1,549,623 rentable square

feet including 92,706 square feet of prime retail space and valet

parking for 90 cars. The Building occupies the entire westerly

blockfront of Fifth Avenue between 52nd and 53rd Streets,

surrounded by prominent national and international luxury

retailers and offers some of New York’s most spectacular views.

666 Fifth Avenue was designed by the architectural firm

of Carson and Lundin and built by Tishman Realty &

Construction Company Inc. in 1957. The Building has been

institutionally owned and maintained since its construction

and underwent an extensive $39 million renovation in 1999.

The renovations included new retail stores and the entire

first and second floor glass façade. Renovations since 1999

have included a $1.7 million low-rise, freight and loading

dock elevator modernization project, as well as a $2.1 million

replacement of the Building’s main electrical switchboards,

an electrical capacity upgrade, full sidewalk replacement,

lobby renovation to create the Hickey Freeman Fifth Avenue

retail space and a $2.3 million HVAC upgrade that included

installation of a BMS system.

S I T E AND ZON INGThe Property is located on the west side of Fifth Avenue between

52nd and 53rd Streets. The Building has lobby entrances on both

52nd and 53rd Streets.

666 Fifth Avenue is situated on a nearly rectangular plot and

occupies the entire westerly blockfront of Fifth Avenue between

52nd and 53rd Streets and provides 200.10 feet of prime frontage

on Fifth Avenue, 315 feet of frontage on West 52nd Street and

300 feet on West 53rd Street.

The Property is located in C5-3 and C5-2.5 zoning districts. These

are “high bulk commercial districts” and allow a wide range of

commercial uses. The zoning permits most commercial, retail and

residential uses, including corporate headquarters, large hotels,

entertainment facilities, retail stores and mixed use buildings.

The building is conforming in use.

LOBBY666 Fifth Avenue’s lobby has entry doors on both West 52nd

and West 53rd Streets, which lead to a central security desk.

The lobby was completely redone in 1999 and won a 1999

Interior Architecture Award. The design uses strong geometric

10

shapes and a combination of polished and honed beige and

rich green marble to complement and frame the famous

Noguchi Waterfall and Sea of Clouds sculptures. Two tones

of pale beige Rosa Porrino granite cover the walls and floors,

giving the lobby a spacious and serene effect, heightened by

a white vaulted ceiling. A crescent-shaped, state-of-the-art

concierge desk, constructed of Cerde Apolla marble, is located

on the south east side of the main lobby, directly opposite the

striking, etched glass tenant roster located on the north side

of the lobby.

Bold geometric, built-in granite wall sconces accent the curved

ceiling in the main entry, while a combination of recessed and

indirect lighting provide a transition to the elevator lobby.

An entrance to HSBC Bank is located on the south side of

the elevator lobby providing convenient access for tenant

banking needs.

SUBWAY ARCADENext to 666 Fifth Avenue’s 53rd

Street lobby entrance is the

entrance to the Property’s retail

arcade and subway station for

the “E” and “V” trains. The

arcade is accessed via a stairway

descending one level below

grade. The arcade is brightly

lit and offers a selection of

small shops, including Galleria

Art & Framing and Angelo’s

Shoe Repair. The arcade also

provides direct access to

666 Fifth Avenue’s central

messenger center.

FAÇADE

The Building’s distinctive

façade features embossed

aluminum panels with

porcelain accents and a three-

panel, dual pane window

module with operable center

panels. There is a two-story

glass façade on Fifth Avenue

that wraps around the

Building along Fifth Avenue

and 52nd and 53rd Streets. The

dramatic mullion-free glass

provides street-level visibility

to the Brooks Brothers, Hickey

Freeman and NBA stores on

Fifth Avenue as well as the side

street retailers.

STRUCTURAL Construction of 666 Fifth Avenue consists of a steel reinforced

cast-in-place concrete foundation and a structural steel

superstructure tower encased in concrete fireproofing.

The floors are also constructed of steel reinforced concrete.

ROOFThe Building‘s main roof on the 41st floor consists of GE Silicone

Spray-on-Roofing System installed over a reinforced poured-in-

place concrete structure. The main roof was replaced in 1999 and

the 10th and 11th floor roofs were replaced in 2002. The building is

set back from the lot line at the 8th, 10th, 11th and 15th floors. The

roofs on the 8th and 15th floors are ballasted modified bitumen

and the 10th and 11th floor roofs are a rubber membrane system.

The parapet walls on all the roofs consist of glazed brick

masonry on the inside surfaces and aluminum caps, which tie

into the decorative aluminum façade.

WE

ST 5

3R

D S

TRE

ET

WE

ST 5

2N

D S

TRE

ET

F I F T H AV E N U E

St. Thomas C

hurchM

useum of M

odern Art

75 Rockefeller Plaza650 Fifth A

venueC

itibank

Car t ier Rolex Bui ld ingThe Ferragamo Bui ld ing

300'

100.5'

200.1'

100.5'315'

PARKING

SOBA NIPPON

HSBC

DIGBY’S

AIR MOROC

LOBBY

LOADING

BOTICELL I

AARON FABER

SUBWAYARCADE

BROOKS BROTHERSNBA STORE HICKEY FREEMAN

N

SITE PLAN

the P

ro

Per

ty

SUMMARY OF RENTABLE AREA666 Fifth Avenue has a total rentable area of approximately 1,549,623

square feet. Floor sizes range from approximately 24,000 square feet to

78,500 square feet. Office floors are measured using a 27 percent loss

factor (based on REBNY) for single tenant floors. This loss factor is

consistent within the entire Tishman Speyer New York City portfolio.

The configuration of the floors is as follows:

FLOORS SIZE (RSF)*

Sub Basement SB 57,000

Lower Level LL 53,000

Ground Floor 1 38,500

Base Floors 2-7 76,800 – 78,500

Base Floors 8-9 67,700 – 68,000

Mid-Rise Floors 10-14 35,075 – 39,850

Tower Floors 15-38 23,800 – 24,900

Penthouse 39 16,500

*All Square Footage has been rounded. Refer to Stacking Plan for further detail

REPRESENTATIVE FLOOR PLANS

FLOOR 3

FLOOR 12 FLOOR 27

N

FLOOR 38W E S T 5 3 R D S T R E E T

W E S T 5 2 N D S T R E E T

FIFTH A

VE

NU

E

FLOOR 8

The retail component contains approximately 92,706 square feet

of rentable area on portions of the basement, ground and second

floors. The retail space is anchored by leases with the NBA’s

flagship store, Hickey Freeman and the renowned Brooks Brothers

store. Other retail tenants at the property include: Botticelli Shoe

Store, Aaron Faber Jewelers, Royal Air Maroc, Digby’s, HSBC

Bank and Soba Nippon Japanese Restaurant.

MECHANICAL SYSTEMSThe Building is serviced by 20 passenger elevators and four freight

elevators. In addition, the garage is serviced by one elevator;

Brooks Brothers and NBA are each served by one elevator.

All elevators servicing the office floors were manufactured by

Westinghouse and are accessible from the main lobby. There are

three banks of elevators located in the central core of the building

and another bank that services the loading dock and the parking

garage. The freight, loading dock and low rise elevators were

12

modernized between 2002 and 2005 for $1.7 million. The mid

and hi-rise modernization began June, 2006 and is scheduled for

completion by Fall of 2007 costing $1.65 million.

E L EVATOR TYPE # OF E LVS .

F LOORSSERV ICED

CAPAC I TY LBS . /SPEED FPM

Passenger/Low-Rise 8 1-11 3,500/500

Passenger/Mid-Rise 6 2,11-23 3,500/800

Passenger/ High-Rise 6 23-39 3,500/1,000

Passenger/Retail 2 SB-2 2,500/300

Freight/Low-Rise 1 SB-23 4,000/500

Freight/High-Rise 1 SB-39 4,000/800

Freight/Loading 2 SB-1 4,000/200

Garage 1 BS-1 7,000/200

HVAC SYSTEMHeating is provided to the building by Con Edison steam, which

enters the Building at the Sub-Basement level. Cooling for the

building is provided by a chilled water system, located on the 41st

floor, which consists of two 1,600-ton steam turbine-driven,

centrifugal water chiller machines manufactured by Carrier

and York. The total chiller capacity is 3,200 tons. A Trane 50-ton,

multi-stage electric reciprocating chiller and two new Carrier

40-ton units are dedicated to the main lobby air-handling unit.

The retail units are served by a new Carrier 30-ton unit.

PLUMB INGDomestic water is provided to the Property by the City

of New York’s water system through two water mains

located at the basement level. The Property has three

water tanks for domestic water and fire reserve.

E L ECTR ICALElectrical service enters the Building via the main electrical

room located in the Sub-Basement. The electrical service is

distributed to all tenant floors by cable and conduit risers.

A 1,750-KW caterpillar diesel generator is mounted on the

15th floor roof and supplies electrical power to the elevators,

stairway lighting system, the Class E fire system and fire

pumps in the event of an emergency.

52ND stReet eNtRANce

SB is Sub-Basement, BS is Basement

the P

ro

Per

ty

The 15th floor generator supplies back-up power to the

following areas: all elevators (including freight), emergency

generator fuel pumps, condenser water pumps, ejector pumps,

air compressors, power and lighting for the NBA store, Class E

fire alarm system, emergency and stairwell lighting, fire pumps,

Millennium Partners’ 8th and 9th floors as well as its 10th floor

computer room and Citibank’s 5th, 6th, 12th and

13th floor computer room.

Ownership has recently signed a deal with

Office Power to install a micro-turbine at the

Building for purposes of additional back-

up power. A 300-ton absorption machine

and a heat exchanger will allow the Building

to utilize 960KW. In the agreement, Office Power

pays rent to the Building and subsequently

emergency power will be sold to tenants resulting

in additional revenue to ownership.

UT I L I TY SHAFTThe installation of sprinklers throughout the

Building has left a 15’x8’ shaft, originally designed

for smoke evacuation, that is now being converted

to house electric closets, telecommunications

wiring and an already completed 1,100-ton

vertical condenser water riser.

MAiN lObby

14

F IRE SAFETY AND SECUR I TYThe entire building is sprinklered with a wet system for fire protection.

The house tank on the 41st floor has a 7,000-gallon reserve for the

standpipe/sprinkler system. A 6” standpipe riser is located in the fire stairwells with a fire hose on each floor. There are a number of

emergency fire stairways conveniently located in various parts of

the Building. The tower floors provide three stairways located in the

central core; the mid-rise floors provide four stairways; and the base

floors provide six stairways. The Building is equipped with a Class E

fire alarm system manufactured by Auto Call.

VALET PARK INGAn entrance located on 53rd Street adjacent to the freight

entrance provides access to a valet parking garage located

in the Basement and Sub-Basement levels of the Property.

The garage contains approximately 17,478 square feet and is

licensed for 90 spaces. The 7,500-pound capacity vehicular

elevator that services the garage is maintained by the parking

garage operator.

SECUR I TY666 Fifth Avenue features 24-hour remote monitoring and

recording of entry, exit and elevator cabs by closed-circuit

television. A state-of-the-art security system was installed in 2003

with new turnstiles in the lobby restricting access to only tenant

access cards or computerized visitor passes and a new CCTV

system was installed and upgraded between 2000 and 2004.

The lobby desk is manned 24 hours each day.

RESTROOMSThere are men’s and women’s restrooms on all office floors of

the Property. The vast majority of restroom facilities are ADA

accessible. Please see the ADA Evaluation report that is a part

of the due diligence files.

A IR R IGHTS L EASE666 Fifth Avenue was built utilizing additional air rights

leased in perpetuity from an adjacent 53rd Street property,

where the Donnell Library is situated. The Air Rights

lessor has no rights of redemption and the current annual

payment is $35,000 through 12/31/2030. Beginning in 2031,

the Building shall retain full use of the air rights at no cost.

SUBWAY EASEMENT666 Fifth Avenue has an easement for its arcade subway access

to the 53rd Street/Fifth Avenue subway station. Annual

payments of $2,500 per year are made to the Metropolitan

Transit Authority for this easement.

bROOks bROtHeRs

the P

ro

Per

ty

16

STACKING PLANLeasedSquare

FeetSquare

Feet

Remeasured Market Rent PSF

41 N/A N/A N/A

40 N/A N/A N/A

39 16,472 16,472 $125.00/SF

38 24,181 24,844 $115.00/SF

37 24,163 24,825 $115.00/SF

36 24,201 24,863 $115.00/SF

35 23,660 24,794 $115.00/SF

34 24,015 24,883 $115.00/SF

33 24,197 24,857 $96.00/SF

32 24,247 24,911 $96.00/SF

31 24,243 24,908 $96.00/SF

30 24,253 24,917 $96.00/SF

29 24,005 24,924 $96.00/SF

28 24,003 24,922 $96.00/SF

27 24,020 24,883 $96.00/SF

26 22,866 23,799 $96.00/SF

25 22,897 23,783 $96.00/SF

24 23,499 24,144 $96.00/SF

23 22,435 24,278 $87.00/SF

22 22,435 23,770 $87.00/SF

21 22,814 23,839 $87.00/SF

20 22,435 24,081 $87.00/SF

19 22,435 24,085 $87.00/SF

18 22,435 24,140 $87.00/SF

17 22,435 24,113 $87.00/SF

16 23,248 24,051 $87.00/SF

15 21,820 24,169 $87.00/SF

14 37,256 38,829 Office - $78.00/SFStorage - $35.00/SF

13 38,308 39,385 $78.00/SF

12 38,778 39,834 $78.00/SF

11 35,870 39,561 $78.00/SF



8 62,225 67,980 $76.00/SF



5 75,586 78,402 $69.00/SF

4 73,306 78,402 $69.00/SF


2 61,893 76,768

Office - $69.00/SF2nd Level Retail - $85.00/SF

Storage - $35.00/SF

1 38,478 39,046Fifth Avenue - $1,200.00/SF52nd & 53rd St - $185.00/SF

Parking (GRND) - $200.00/SF

Arcade 6,184 6,360Arcade - $90.00/SF

1,449,140 1,549,623

General Notes:

Tenant Specific Notes:

Fifth Avenue LL Retail- $90.00/SF

Bsmt Retail - $50.00/SF

Storage - $35.00/SF

Parking (SB) - $75.00/SF

Storage - $35.00/SF

Citibank08/31/09

22,043 SF / 22,647 SF / $70.68

NBA Properties05/31/13

7,092 SF / 10,312 SF $0.00


405 SF (Storage)/509 SF / $45.00

Japan Local Government Center02/28/09

8,350 SF / 8,469 SF / $55.20

Kuraoka & Company02/28/09

2,561 SF / 2,597 SF / $153.00

Brooks Brothers 03/31/14

200 SF (Storage)/216 SF / $55.56

D&D 666 Holding LLCd/b/a Botticelli's

12/31/14759 SF / $220.68

Citibank08/31/07

70,694 SF / 77,806 SF / $52.68

Orrick Herrington & Sutcliff03/31/10

25,515 SF / 30,168 SF / $54.00


420 SF (Storage) / 443 SF / $0.00


125 SF (Storage) / 130 SF / $0.00


952 SF (Storage) / 1,383 SF / $0.00

HSBC Bank USA04/30/10

5,922 SF / $171.84


9,374 SF / 9,406 SF / $647.76

Blue Radish 52d/b/a Bread Market Cafe

08/31/172,320 SF / $143.16

Royal Air Maroc03/31/11

1,100 SF / 1,130 SF / $178.92

Cornelia Essentials, LLC11/30/16

5,257 SF / 5,385 SF $50.40

Frederick Schwartzman08/31/08

64 SF (Storage) / 65 SF / $0.00

Tishman ConstructionCorp.

08/31/118,417 SF / 8,665 SF /

$70.92

Vacant

6,262 SF

Vacant

7,000 SF


90 SF (Storage) / 94 SF /$0.00

Citibank08/31/14

3,023 SF / 3,105 SF / $54.44


14,182 SF / 20,478 SF $0.00


3,200 SF / 4,162 SF / $63.48

Tishman Speyer Building Office12/31/40

1,850 SF / 1,904 SF / $0.00

Foster Wheeler03/31/09

2,669 SF / 2,745 SF / $56.04

Infotech For Business01/31/11

5,897 SF / 6,071 SF / $58.92


8,237SF / $463.56

Millenium Partners10/31/09

513 SF (Storage) / 527 SF / $30.00


218 SF (Storage) / 224 SF / $30.00

Modern Parking LLCMallah Organization, Inc.

04/30/191,441 SF / $3.36

(3) (OSI) Eyetech (Suite: 35104): Fulbright & Jaworski leases the space beginning 08/01/07.

SubBsmt

57,065

LowerLevel 39,335

(1) In-place rents are annualized based on January 2007 escalated rents (include real estate taxes and operating expense reimbursements) and exclude all abatements.

47,973

(1) ENI U.S. Operating Co. (M-T-M) (Suite LL100), C & H Mail Boxes (Suite AR101 & 06103) : Tenants' lease terms expire prior to 01/01/2007, therefore, tenants' last contractual monthly rent is annualized.

46,709


22,814 SF/ 23,839 SF / $82.32


22,435 SF / 23,770 SF / $57.36

Fulbright & Jaworski12/31/16

4,229 SF / 4,345 SF / $62.76


4,900 SF / 5,034 SF / $63.72

Instituto De Turismo De Espany11/30/10

7,778 SF / 8,477 SF / $64.32

Phillips Nizer LLP12/31/15

6,477 SF / 6,915 SF / $68.28

Vinson & Elkins12/31/10

11,780 SF / 12,064 SF / $92.04


5,710 SF/ 5,847 SF / $91.92


24,005 SF / 24,924 SF / $68.40

UBS Securities C02/28/11

4,081 SF / 4,229 SF / $81.84


22,435 SF / 24,081 SF / $59.04

Citibank08/31/14

38,308 SF / 39,385 SF / $54.00


5,907 SF / 6,061 SF / $55.68

Vacant

401 SF (Storage)


43 SF (Storage) / 45 SF / $77.28

Plexus Partners, L.P.10/31/10

1,764 SF / 1,816 SF /$63.24


22,435 SF / 24,278 SF / $57.36


3,174 SF / 3,261 SF / $62.76


20,325 SF / 20,883 SF / $62.76


22,897 SF / 23,783 SF / $91.92


22,435 SF / 24,140 SF / $59.04


22,435 SF / 24,085 SF / $59.04

Victoria's Secret Beauty08/31/07

51,263 SF / 55,755 SF / $49.68

Total:

Citibank08/31/14

207 SF (Storage) / 212 SF / $38.04

Avaya Inc.03/31/07

35,870 SF / 39,561 SF / $51.12

Tishman Construction Corp.08/31/11

732 SF / $61.44

(OSI) EyetechEyetech Pharmaceuticals, Inc.

07/31/076,753 SF / 6,938 SF / $87.12


24,243 SF / 24,908 SF / $62.76


24,247 SF / 24,911 SF / $62.76

Sumitomo Heavy Ind. (USA) Inc.03/31/07

6,890 SF / 7,618 SF / $56.76


9,936 SF / 10,338 SF / $77.04


53 SF / 57 SF / $69.96


24,003 SF / 24,922 SF / $68.40

UBS Securities B02/28/11

4,821 SF / 4,995 SF / $86.76

UBS Securities A02/28/11

15,113 SF / 15,659 SF / $86.64


24,253 SF / 24,917 SF / $62.76

Hickey-Freeman Co.03/31/16

3,863 SF / 4,329 SF / $773.76

Citibank08/31/14

15,301 SF / 15,718 SF / $56.16

Universal City Studios04/30/10

4,730 SF / 4,871 SF / $67.44


16,765 SF / 17,171 SF / $70.80

Citibank08/31/14

13,969 SF / 14,350 SF / $55.80

Aaron Faber04/30/16

71 SF / $0.00

Aaron Faber04/30/16

2,098 SF / 2,102 SF / $182.52

Avaya Inc.03/31/07

3,483 SF / 3,678 / $51.36

Citibank08/31/14

6,073 SF / $61.32

Puerto Rico Devt Co. 12/14/07

21,820 SF / 24,169 SF / $57.36


23,248 SF / 24,051 SF / $82.20


22,435 SF / 24,113 SF / $59.04

Mechanical

Citibank08/31/14

9,654 SF / 9,917 SF / $54.00

Citibank08/31/14

7,784 SF / 7,996 SF / $53.88

Citibank08/31/14

18,317 SF / 18,816 SF / $54.00

Grand Havana Room09/30/11

16,472 SF / $44.28

UBS Securities06/30/16

24,163 SF / 24,825 SF / $74.16


24,181 SF / 24,844 SF / $70.92


24,201 SF / 24,863 SF / $70.92


24,197 SF / 24,857 SF / $65.52


22,866 SF / 23,799 SF / $91.92

(2) Citibank (03102) & Victoria's Secret (04101): These two spaces are reabsorbed as 'Vacant' at remeasured areas in 9/1/07.

Mechanical

Citibank08/31/09

23,476 SF / 25,790 SF / $56.40


25,000 SF / 26,707 SF / $63.24

Mizuho Trust & Banking Co05/31/08

37,225 SF / 41,273 SF / $53.16

C & H Mail Boxes11/30/06

937 SF / $76.68

Aaron Faber04/30/16

932 SF / $87.36


5,428 SF (Storage) / 8,365 SF / $42.48

Vacant

887 SF


4,000 SF (Storage) / 6,809 SF / $0.00


330 SF (Storage) /$0.00

Aaron Faber04/30/16

682 SF / $0.00

VIP Newsstand06/30/09

630 SF / 725 SF / $102.84

V&V Leather Repair06/30/13

970 SF / 1,035 SF / $86.64

Galeria Art & Framing, Inc.08/31/08

1,136 SF / 1,152 SF / $101.40

Messenger Center12/31/30

1,503 SF (Storage) / $0.00

D&D 666 Holding LLCd/b/a Botticelli's

12/31/14644 SF (Storage) / 991 SF $51.00

Brooks Brothers03/31/14

88 SF (Storage) / 160 SF $0.00

Cleaning Supplies12/31/30

170 SF / $0.00

TSP Porter Room12/31/30

903 SF / 1,390 SF / $0.00

Generated Tank & Fuel Room

12/31/30920 SF / $0.00


128 SF (Storage) /209 SF / $19.92


3,965 SF (Storage) / 4,696 SF $35.04

Tishman Construction Corp.

08/31/11315 SF (Storage) / $32.52

ENI U.S. Operating Co. (M-T-M)07/31/06

200 SF (Storage) / 238 SF $35.04

Modern Parking LLCMallah Organization, Inc.

04/30/1916,037 SF / $36.60


5,861 SF (Storage) / 6,312 SF / $34.32

V&V Leather Repair 06/30/13

138 SF (Storage) / 213 SF / $20.28

Blue Radish 52d/b/a Bread Market Cafe

08/31/17905 SF (Storage) / 1,044 SF/ $7.08


4,161 SF (Storage) / 6,601 SF / $15.00


4,608 SF (Storage) / 7,153 SF/ $34.20


16,578 SF / $0.00

Puerto Rico Devt Co. 12/14/07

899 SF (Storage) / 1,464 SF/ $0.00

Tishman ConstructionCorp.

08/31/11469 SF (Storage) / $32.52

Puerto Rico Devt Co.12/14/07

1,579 SF (Storage)/ 2,682 SF / $0.00

Hickey-Freeman Co.03/31/16

1,903 SF (Storage) / 3,301 SF / $39.48

Vacant

4,530 SF (Storage)

Millenium Partners, L.P.

02/28/07405 SF (Storage) / $35.04

Generated Tank & Fuel Room

12/31/30340 SF/ $0.00


1,404 SF (Storage) / $0.00

Fibernet Equal Access08/09/15

50 SF (Storage) / $15.12

Vacant

3,063 SF (Storage)

Vacant

978 SF (Storage)

Galeria Art & Framing, Inc.

06/30/07198 SF (Storage) / $27.84


559 SF (Storage) / $41.28

TSP Engineer Room12/31/30

2,062 SF / $0.00


1,987 SF (Storage) / 2,235 SF / $32.52

Citibank08/31/14

10,547 SF / 10,766 SF / $52.56

Vacant

353 SF (Storage)

Citibank08/31/14

41,769 SF / 42,637 SF / $52.56

Citibank08/31/14

3,078 SF / 3,142 SF / $52.56

ENI U.S. Operating Co. 09/30/07

19,839 SF / 21,948 SF / $49.80

Citibank08/31/14

37,505 SF / 39,385 SF / $52.56

Vacant225 SF (Storage)

C & H Mail Boxes11/30/06

125 SF (Storage) / 217 SF /$5.76

Universal City Studios04/30/10

4,498 SF / 4,732 SF / $67.80

General Service AdministrationU.S. Information Agency

01/04/086,196 SF / 6,473 SF / $49.92

Citibank08/31/09

25,863 SF / 27,159 SF / $56.40


11,226 SF / 11,596 SF / $71.28

Shoko Chukin Bank02/28/09

7,508 SF / 8,207 SF / $52.92

Mizuho Trust & Banking Co05/31/08

5,286 SF / 5,361 SF / $53.16

Dentsu Corporation of AmericaDCA Advertising, Inc.

09/30/0736,138 SF / 39,652 SF / $52.80

Metropolitan Fiber Systems

12/31/10223 SF (Storage) / $37.68

Vacant

485 SF (Storage)

Israel A Englander & Co.

05/31/082,088 SF/ 2,139 SF / $66.36

Expires in 2012+ VacantExpires in 2010 & 2011Expires in 2009Expires in 2006 & 2007 Expires in 2008

Tenancy

18

INTRODUCT ION666 Fifth Avenue is approximately 99 percent leased. The Building

consistently attracts a diverse and desirable mix of credit-worthy tenants

with long-term leases. The Property, situated in the center of Midtown’s

Plaza District, offers over 21,972 square feet of high visibility Fifth

Avenue retail space in the prestigious Fifth Avenue Corridor—one of the

City’s highest traffic pedestrian walkways. The Property is also home to

a below-grade gallery/shopping arcade and a 17,478 square feet parking

garage located on the ground and sub-basement levels of the Property

that is licensed for 90 spaces.

Over 86 percent of the Building is occupied by credit-worthy tenants,

with the remaining space occupied by service, retail and investment

firms that need to be in Midtown Manhattan. Industries represented

by the current tenancy include legal services, financial services and real

estate. The six largest office tenants and two largest retail tenants occupy

almost 970,000 square feet or approximately 66 percent of the Property’s

rentable area. These six largest blue-chip tenants are: Citibank,

N.A., Orrick Herrington & Sutcliffe LLP, Fulbright & Jaworski

L.L.P., Vinson & Elkins L.L.P., Philip, Nizer, Benjamin, Krim &

Ballon, L.L.P. and Tishman Realty & Construction Company,

Inc. The largest retail tenants, which front Fifth Avenue, are NBA

Properties, Inc., Brooks Brothers, Inc. and Hickey Freeman.

C I T I BANK , N .A . www.citibank.comPart of 3rd - 7th & 10th Floors; Entire 12th & 13th Floors347,777 square feet Expires 08/31/07 (70,694 SF) 08/31/09 (71,382 SF) 08/31/14 (205,535 SF)Citibank, NA is the largest operating subsidiary of

Citigroup (NYSE: C). Citigroup is ranked eighth in the 2006

Fortune 500 and has 3,000 bank branches and consumer finance

offices in the US and Canada, plus an additional 1,500 locations

in about 100 other countries.

Hickey fReeMAN

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Citigroup is a diversified financial services company engaged in

providing the financial service sector’s most diverse consumer

product offerings, including banking services, credit cards

and loans. Citigroup’s businesses also offer industry-leading

technology, a strong worldwide presence and a powerful global

franchise in Citibank. It is a primary dealer in US Treasury

securities and its stock is a component of the Dow Jones

Industrial Average.

Currently, Citigroup is divided into three major business groups:

Global Consumer, Global Wealth Management and Corporate

and Investment Banking. It also includes one stand-alone

business, Citigroup Alternative Investments, which manages

products across five asset classes, including private equity, hedge

funds, real estate, structured products and managed futures. 666

Fifth Avenue is home to Citigroup’s Private Banking division,

part of its Global Wealth Management division and other related

financial activities.

Citibank’s debt is rated “Aa3-” by Moody’s and “AA” by

Standard & Poor’s while parent company Citicorp’s rating was

raised to A1 from A2 by Moody’s. As of December 31, 2005,

Citigroup Inc. operated 7,237 branches. Citigroup Inc.’s net

income for fiscal year 2005 was reported to be $24.6 billion on a

total revenue base of $120.3 billion.

Citibank leases signage rights on the north, west and south

sides of the tower through August, 2009. These rights are

subject to a minimum Citibank occupancy threshold of 142,000

square feet. Citibank has been in the Building since 1989.

ORR ICK HERR INGTON & SUTCL I F F E L LPwww.orr i ck . comPart o f SB, 2nd & 10th F loors ; Ent i re 16th - 23rd F loors220,284 square feetExp i res 3/31/10Orrick Herrington & Sutcliffe is a full service 850+ attorney law

firm founded more than 136 years ago in San Francisco. Orrick

attorneys have worked with government leaders and business

visionaries to build everything from the brick and mortar

underlying city infrastructures, to private and public companies.

Orrick has 16 offices throughout the globe and advises clients in

many of the world’s key financial markets, including: New York,

San Francisco, Silicon Valley, Los Angeles, Washington D.C. and

Singapore as well as newly opened offices in Hong Kong, Taipei

and Moscow. Over 190 lawyers are located at 666 Fifth Avenue. Major clients

include IBM, Charles Schwab and Morgan Stanley.

The firm’s primary areas of practice include: corporate and commercial

finance, structured finance, project finance, public finance, securities,

litigation, intellectual property, employment restructuring, derivatives

and financial services. Orrick litigators have built an impressive list of

successful results in both asset-backed finance and municipal finance,

as well as a top-10 status in project finance. The firm has been a tenant

since 1995.

FULBR IGHT & JAWORSK I L LPwww.fu lbr ight . comPart o f the 10th & 35th F loors ; Ent i re 24th F loor , 30th - 33rd F loors141,579 square feetExp i res 12/31/16Founded in 1919 in Houston, Texas, Fulbright & Jaworski is an

international full-service law firm of approximately 950 attorneys with

offices in California, New York, Texas, Washington, D.C., Hong Kong,

Dubai, Riyadh and London. The firm specializes in a wide range of legal

matters, from local litigation to complex international transactions.

The firm’s substantial size allows it to maintain a presence in major

business, financial and government centers.

Formed over 71 years ago, the New York office serves a broad client

base including large publicly-held corporations, investment banking

and brokerage firms, venture capital and leveraged buy-out firms,

investment funds, private equity and institutional investors, life science,

high-technology and other emerging growth companies, privately-held

companies, partnerships, individuals, estates and charitable organizations

and foundations. The office’s key practice areas include: litigation,

corporate, energy, project finance, intellectual property, health law, public

20

finance and international arbitration. The firm’s global client base includes

individuals, public sector entities, charitable organizations and business

corporations of all sizes. The New York office currently has 137 lawyers

and has been a tenant in the Property since 1992.

V INSON & E LK INS L LPwww.ve law.comPart o f LL & 27th F loor ; Ent i re 25th & 26th F loors68,681 square feetExp i res 12/31/10Vinson & Elkins has over 700 attorneys in 11 offices worldwide.

Outside of New York, the firm maintains offices in Texas, New

York and Washington, D.C. and has an international presence with

offices in five countries. The firm, which was founded by James

Elkins and William Vinson in Houston in 1917, is a specialist in

international energy law and litigation and is considered to be

one of the premier energy law firms in the world. Additionally,

it has one of the largest health care practices in the United States.

Vinson & Elkins operates in almost all areas of civil law, including

antitrust, intellectual property, international and securities law.

Vinson & Elkins has been at the Building since 2000 and

has over 40 lawyers with a wide array of experience in

antitrust law and commercial litigation; corporate finance

and securities law; employment litigation and labor;

project finance and development; real estate and mortgage

finance; restructuring, insolvency and reorganization; and

transactions based in Latin America.

PH I L L IPS , N IZER , B ENJAMIN , KR IM & BAL LON , L LPwww.ph i l l i psn izer . comPart o f SB, LL & 27th F loors ; Ent i re 28th & 29th F loors60,466 square feetExp i res 12/31/15Phillips, Nizer, Benjamin, Krim & Ballon (“Phillips Nizer”)

has practiced a diverse range of international and domestic

law for more than 80 years. Building upon the tradition

established by Louis Nizer, the firm has evolved into a full

service practice offering its clients representation in virtually

all areas of law. Phillips Nizer specializes in counseling clients

on mergers and acquisitions, project finance, international

business, tax, licensing and franchising, labor relations,

employee benefits, bankruptcy, reorganizations, entertainment,

telecommunications, trusts and estates, and real estate. 666

Fifth Avenue has served as the firm’s principal office since 1995

and is home to 68 attorneys.

Today, Phillips Nizer ’s attorneys serve general and corporate

counsel and corporations worldwide from offices in midtown

Manhattan, Garden City, Long Island and Hackensack, New

Jersey. Additionally, Phillips Nizer is a member of the LAWorld

legal network. The 32 member firms of LAWorld are international

in outlook, local in scope, representing 23 countries. LAWorld

members are typically mid-sized, independent firms that are

well established in their jurisdictions.

T I SHMAN REALTY & CONSTRUCT ION COMPANY , INC .www.t ishmanconstruc t ion . comPart o f SB, GR, & 14th F loor ; Ent i re 36th & 38th F loor60,302 square feet Exp i res 08/31/11Tishman Realty & Construction Company, Inc.

(“Tishman”) is one of the most highly recognized and

well respected names in the real estate development

and construction industry. The company has been in

business for over 100 years and is one the few national

construction firms privately held by U.S. owners, as

well as one of the most prolific builders in the New

York area. Since 1898, the firm, with regional offices

across the United States and four affiliated companies

that focus on specific areas of expertise, has built or fit

out over 400 million square feet of space.

The firm provides construction and project management,

owns and manages luxury hotels; and functions as a

real estate advisory firm through its affiliates which

include Tishman Construction, Tishman Technologies,

Tishman Real Estate Services, Tishman Hotels and

Tishman Realty. 666 Fifth Avenue is the firm’s world

headquarters, where it has been a tenant in the building

since its completion in 1957.

A leader and pioneer, Tishman has developed real estate

landmarks across the nation. These assets include: 666

Fifth Avenue, the 2,600-room Aladdin Hotel & Casino

in Las Vegas, the New Amsterdam Theater restoration

in Times Square, the John Hancock Center in Chicago,

the former World Trade Center in New York City, City

Spire in New York City and the Walt Disney EPCOT

Center along with the World Swan resort in Orlando,

Florida. Since the late 1990s, Tishman’s major projects

have centered around the revitalization efforts of Times

Square and 42nd Street in New York City - including the

construction of 4 Times Square (the Condé Nast Building),

3 Times Square (Reuters America headquarters) and

E-Walk, a mixed-use entertainment and retail center.

Tishman is currently managing construction of Durst’s

Bank of America Tower at One Bryant Park.

Hickey fReeMAN

NBA PROPERT I ES , INC .www.nba. comPart o f SB, LL , GR, 2nd & 3rd F loors38,202 square feetExp i res 05/31/13NBA Properties, Inc. is the marketing and licensing division of

the National Basketball Association that overseas promotion

of the league through a variety of consumer products, events,

media, sponsorships and promotions. The department focuses on

generating revenue for the league’s 30 teams and developing an

awareness of the NBA brand.

The NBA Store, which opened in September 1998, is the first

retail store to be owned and operated by a North American

sports league. The store offers a variety of NBA and WNBA

licensed products, including clothing, sporting goods, basketball

collectibles, home furnishings, toys, electronic games and videos.

The flagship store also features basketball videos and memorable

game clips that grant fans access to current and past game action.

Given the NBA’s increasing global appeal, the NBA Store has

become a destination for many tourists visiting New York. NBA

Properties, Inc. invested a total of $30 million of its own capital to

reconfigure and finish the space. The NBA Store was meant as a

way to market the NBA brand, but with annual revenues of over

$16 million, the store has become a profitable enterprise.

BROOKS BROTHERS , INC . (Reta i l Brand A l l iance , In c . – Guarantor of Brooks Brothers’ l ease)www.brooksbrothers . comPart o f SB, LL , GR, 2nd & 3rd F loors33,705 square feetExp i res 03/31/14Brooks Brothers, founded in 1819 by Henry Sands Brooks, is one

of the nation’s oldest retailers and is a designer, manufacturer and

retailer of classically designed clothing and accessories for men,

women and children.

Brooks Brothers operates over 180 upscale retail stores in the

United States, over 100 in Asia through partnerships and about a

half a dozen stores in Europe, where they plan to add four more

in 2006.

Brooks Brothers is one of America’s oldest retailers, specializing

in men’s suits and outerwear, as well as women’s apparel. In

2001, the Brooks Brothers brand was sold for $225 million to a

newly formed holding company, Retail Brand Alliance (“RBA”).

Brooks Brothers central Plaza District location at 666 Fifth Avenue

complements, as well as outperforms on a per square foot basis,

its longstanding flagship store at 44th Street and Madison Avenue

in New York City.

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22

MANHATTAN MARKET OVERVIEWDemand for Manhattan investment product is stronger than it has ever

been in New York as the City is one of the few gateway 24/7 cities with

high barriers to entry that attracts a vast spectrum of domestic and

off-shore capital. New York has proven to be one of the most resilient

markets nationally and in the last two and one-half years has seen

significant inventory absorption, a corresponding decrease in the office

vacancy rate and substantial rental rate increases.

ECONOMIC DRIVERS BEHIND MANHATTAN REAL ESTATE BOOMNew York City economic indicators point to a healthy and strengthening

economic picture. Since the first half of 2004, there has been substantial

growth and tightening in the Manhattan office market, paralleling continued

improvement in the financial markets and corporate profits. According to

the City Comptroller, New York City’s economy grew at an annualized

rate of 4.3 percent during the first quarter of 2006, capping ten consecutive

quarters of improvement. By the end of August, the City added 61,100

private sector jobs this year, the biggest quarterly gain in five years, and the

unemployment rate fell to 5.1 percent, the lowest in five years.

MANHATTAN OFFICE MARKET

The first three quarters of 2006 have demonstrated that the Manhattan

office market is at its strongest point in history; vacancy rates are

at their lowest levels; asking rents in the finest buildings

exceeded $110.00 per square foot; and for large tenants, only

three availabilities exist in Midtown with over 250,000 square

feet. Of Manhattan’s 389 million square feet of total inventory,

27.4 million square feet are currently available—down more

than 27 percent on a year-over-year basis, representing a low

point not seen since the second quarter of 2001.

The overall vacancy rate for Manhattan has reached a five-year

low of 7.0 percent and, excluding subleases, is at an extremely

low 5.8 percent. Improving economic conditions, record

corporate profits and employment growth are expected to cause

a continuation of sharply decreasing vacancy rates, thereby

accelerating the rent spike that started at the end of 2005 and is

expected to increase at double digits over the next few years.

The vacancy rate, which is currently below equilibrium, has

caused rents to escalate to four-year highs. Rental rates are spiking

in 2006, particularly for well-located Midtown properties. As of

the third quarter of 2006, Class A Midtown properties recorded

their lowest vacancy rate (6.3 percent) in five years and highest

asking rent ($59.47 per square foot) in four years. The Class A

asking rental rate has increased 12.4 percent, on a year-over-

year basis. Further evidence of market strength can be found

in the number of deals where taking rents start at $100.00 per

square foot or greater. For 2006 year-to-date, 31 such deals have

been completed, compared to 24 such deals signed during the

previous three years combined. In prior cycles the Manhattan

real estate market has witnessed double digit rent growth as the

vacancy rate dipped below 6.0 percent. These double digit rent

spikes are occurring across Manhattan, where strong leasing

fundamentals have created a landlord’s market.

MIDTOWN OFFICE MARKETThe Midtown Manhattan market, which represents approximately

60 percent of Manhattan’s inventory, has been the strongest

performer. The Midtown office market, which started on a

positive note, ended the third quarter of 2006 with growing

momentum, with a 14 percent increase in leasing activity over the

third quarter of the prior year. Combined with the lack of available

large blocks, vacancy rates in all the Midtown submarkets have

declined. The Class A vacancy fell to a five-year low of 6.3 percent

with availabilities in Midtown’s premier submarkets such as Park

Avenue, Madison/Fifth Avenue and Sixth Avenue/Rockefeller

Center, each falling by more than 27 percent from one year ago,

with Park Avenue falling by approximately 49 percent.

For the third quarter of 2006, Midtown’s average asking rental

rate for all classes climbed to its highest level in four years

and reached $53.02 per square foot, approximately 12 percent

higher than the beginning of the year. Pent up demand and

lack of quality supply have continued to drive pricing upward

with many rents topping $110 per square foot in some of the

best buildings such as 712 and 767 Fifth Avenue, 645 and 660

Madison Avenue, 450 Park Avenue and 9 West 57th Street.

View sOutH

ma

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et ov

erv

iewOFFICE CONSTRUCTIONOffice construction is at historically low levels and there is almost

no speculative development. There are two office buildings

currently under construction for anchor tenants:

MIDTOWN CONSTRUCTION ACTIVITY

Competition for large-block Class A space has accelerated in

recent quarters as supply has diminished. Only two Midtown

Class A buildings are under construction - the New York

Times Headquarters at 8 Times Square and Bank of America’s

One Bryant Park - and each is already 85 percent pre-leased.

In 2006 Bank of America took an additional 523,000 square

feet at One Bryant Park, bringing its total to 1,573,000 square

feet, suggesting that the building may be fully leased by

completion. In addition, all the owners of these respective

properties have raised their asking rents in 2006. At One

Bryant Park, law firm Akin Gump Strauss Hauer & Feld LLP

recently leased 203,000 square feet for $100 per square foot.

Asset manager Legg Mason has leased the top six floors at

8 Times Square/620 Eighth Avenue for reportedly $100 per

square foot, while numerous other leases signed in 2006 have

been in the $70-$90 per square foot range.

Recent new developments in Midtown are limited, with

only two projects completed year-to-date. 505 Fifth Avenue

was delivered in the first half of the year with nearly 75

percent of the property leased before completion. The

Hearst Communications Headquarters building at 959

Eighth Avenue was also delivered and will be entirely

occupied by Hearst.

There has been a scarcity of new construction since the

1990s, with construction at a fraction of the levels seen in

the 1960s, 1970s and 1980s.

bUIlDINg SF TENANT

8 Times Square/620 Eighth Ave. 1,500,000 New York

Times

One Bryant Park 2,100,000 Bank of

America

Total 3,600,000

The market has started to experience substantial rent increases.

Towards the end of the last real estate growth cycle, rents

spiked for four consecutive years (1997-2000), with two of

65.3

54.6 55.9

12.517.7

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1960s 1970s 1980s 1990s 2000s*Decade

Squa

re F

eet (

mill

ions

)

MANHATTAN OFFICE bUIlDINg CONSTRUCTION

those years recording 20 to 30 percent increases per annum. Present strong

market fundamentals parallel those conditions of the late 1990s; namely, a

dearth of new office product, falling vacancy rates (5.3 percent total direct

vacancy in Midtown) and strong job growth. It is expected that owners will

greatly benefit from these current market conditions. The Manhattan market

is poised for double digit increases in asking rents, with a year-over-year

change in the overall rental growth rate that could match or surpass those

spikes realized in the previous real estate cycle.

Backed by strong tenant retention and leasing momentum, the vacancy rate

for the overall Midtown market is projected to decline to approximately

5.0 percent by 2008. The equilibrium point in vacancy rates historically

has been between 8.0 and 10 percent. When below this point, New York

City landlords typically experience dramatic shifts in leverage when

negotiating leases.

view north

*includes projections from 2006 to 2009

Driven by a number of large transactions, Midtown has once again led the

New York City leasing market. Through the third quarter of 2006, leasing

activity in Midtown is up 13.9 percent compared to the same period last year

with 14.9 million square feet leased thus far and an additional 13.9 percent in

active negotiations. Leasing in the third quarter totaled 5.2 million square feet,

a 22 percent increase over the prior year’s quarter. The market has been driven

by familiar industries: financial services (34.8 percent) and legal services (13.2

percent) have accounted for nearly half of all leases in excess of 10,000 square

feet this year. There have been 9 Midtown transactions of 100,000 square

feet or greater in the third quarter alone. There have been 29 transactions

between 50,000 and 100,000 square feet during the first three quarters of the

year, 52.5 percent more than all of 2005. The Grand Central and Sixth Avenue/

Rockefeller Center submarkets were the most active in terms of total leasing,

each accounting for approximately 14 percent of all New York City activity.

24

The Midtown office market has benefited from a shortage of large blocks of

space and a dramatic increase in rental rates. There has been a substantial

increase in the volume of top tier leasing transactions, with the first three

quarters of 2006 recording a greater number of transactions above the $90

per square foot rent range than was recorded in all of 2005. Incredibly, with

respect to rental rates that exceed the $100 per square foot level, Midtown

recorded 31 of these top tier transactions in comparison to only ten of these

transactions for all of 2005.

2003

120

100

80

60

40

20

02004 2005 3Q06

$70 - $79.99 $80 - $89.99 $90 - $99.99 $100 +

31

4

25

7313

53

22

710

38

20

21

31

MIDTOWN OFFICE MARKET:TAKING RENTS $70 AND ABOVE (NUMBER OF DEALS)

(2003 – 3Q-2006)

0

5

10

15

20

25

50,000 - 99,999 100,000 - 249,999 250,000 +Square Footage

Num

ber

of B

lock

s

23

11

3

Number of Blocks

Total Available SF: 15,424,254Total Blocks: 37

MIDTOWN OFFICE MARKET: SIZE DISTRIBUTION OF AVAILABLE CLASS A SPACE (CONTIGUOUS BLOCKS) AS OF SEPTEMBER 30, 2006

PLAZA DISTRICT666 Fifth Avenue is situated along a full blockfront on

prestigious Fifth Avenue in the heart of the Plaza District,

which Cushman & Wakefield defines as the area running

east to west from Park Avenue to Avenue of the Americas

and north to south from East 59th Street to East 49th Street.

The Plaza District is the premier office and retail market in

Manhattan. This district commands premium rental rates

and is home to the densest concentrations of blue chip and

Fortune 500 companies in the world.

The district, which is anchored by the General Motors Building

to the north and Rockefeller Center to the South, is primarily

comprised of high-rise, Class A office buildings, luxury hotels

and high-end retailers. Many prominent blue chip financial

services and media firms are headquartered there, including:

Alliance, AXA, Credit Lyonnais, Deutsche Bank, Société

Générale, UBS, CBS, CNN, FOX, NBC and McGraw Hill as

well as General Electric, who, with about 1 million square feet

at Rockefeller Center, maintains a significant presence.

GM builDiNG

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$38.83 $38.99

$47.22

$55.00

$77.50

$71.10$66.33 $63.72

$70.73

$77.96

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 3Q06$10.00

$20.00

$30.00

$90.00

$40.00

$70.00

$50.00

$80.00

$60.00

0.0%

5.0%

10.0%

15.0%

Overall Asking Rent Vacancy Rate

$65.05

$55.38

MADISON/FIFTH AVENUE SUBMARKET:CLASS A VACANCY RATE AND CLASS A WEIGHTED AVERAGE

ASKING RENT (PSF)(1995 TO 3Q-2006)

MADISON/FIFTH AVENUE SUBMARKET

666 Fifth Avenue is situated in the Madison/Fifth Avenue

submarket—the most prestigious submarket in Midtown

Manhattan. The Madison/Fifth Avenue submarket is

comprised of 126 buildings totaling 24 million square

feet, of which over 22 million square feet is Class A

office product. With over 514,000 square feet of positive

absorption in 2005 and an additional 119,363 square

feet being absorbed in the first three quarters of 2006,

the Madison/Fifth Avenue submarket overall vacancy rate

has decreased by approximately 1.7 percentage points, from

9.0 percent to 7.3 percent, on a year-over-year basis. Currently,

this submarket’s overall vacancy rate is at its lowest point since

the fourth quarter of 2000, when the rate was actually below

6.0 percent. The Class A direct vacancy rate, at 5.8 percent, is

now well past equilibrium. Class A direct availabilities have

declined substantially, falling an impressive 41 percent from

January 2005, with few large blocks of space remaining. Since

the Madison/Fifth Avenue submarket is easily accessible from

Grand Central Station and consists of mostly Class A space, it

continues to attract interest from high-end tenants.

Leasing activity totaled approximately 2.1 million square

feet in both 2004 and 2005, up significantly from only 1.2

million square feet in 2003. For the third quarter of 2006,

leasing activity totaled 1,356,441 square feet. With few new

availabilities coming to market in 2006, overall absorption

as of third quarter of 2006 was positive at 119,363 square

feet. Madison/Fifth Avenue is typically viewed as a market

dominated by the financial industry as well as premier law

firms and 2005 and 2006 have been no different. The single

largest transaction of the year thus far is Jefferies & Company,

Inc, which signed for 134,685 square feet at 520 Madison

Avenue. As in previous quarters, the financial services sector

had the highest percentage of leases in this submarket. Large

blocks of space continue to be limited, with only one block in

excess of 100,000 square feet on the market.

The ongoing increase in rental rates is correlated to the

reductions in available space, resulting in a year-over-year

increase of $6.22 per square foot in the overall Madison/Fifth Avenue rental

rate, which now stands at $75.56. This submarket’s Class A direct rental rate

increased $5.88 per square foot during the past 12 months to $79.52 per square

foot, where it remains the highest asking rent in the city. Rental rates should

continue to climb as demand is still strong among high-quality tenants. Space

at 9 West 57th Street and the GM Building are drawing rents of $150 per

square foot and higher and a few select assets have raised their asking rents

by 50 percent. These substantially higher asking rents have proved a catalyst

for rapidly escalating rents in Class A buildings throughout the submarket.

With Midtown’s vacancy rate now in the single digits and declining and

asking rents rising against a backdrop of large blocks of space drying

up, Midtown has once again become one of the strongest markets in the

nation. The Madison/Fifth Avenue submarket is a direct beneficiary of this

trend, as both national and local corporations seek to locate their corporate

headquarters in the City’s most desirable submarket. This submarket has

consistently remained the most stable area due to its high-quality tenancy,

highly convenient and prestigious location and proximity to transportation.

Below is a summary of recent comparable lease transactions:

COMPARABLE OFFICE RENTS

Property Date Tenant SF Term TI PSF Free Rent

Rental Rate PSF

153 East 53rd Street

3Q06

Amber Capital

28,600 10 Yrs

$25 PSF /4 Mos.

$105 - Yrs 1-5$115 - Yrs 6-10

390 Park Avenue

3Q06

GLG Partners

10,200 10Yrs

As Is /2 Mos.

$125 - Yrs 1-5$130 - Yrs 6-10

320 Park Avenue

3Q06

Standard Americas

7,154 8Yrs

As Is /5 Mos.

$105 - Yrs 1-5$111 - Yrs 6-8

660 Madison Avenue

3Q06

Fix Asset Management

6,819 5Yrs

$15 PSF /3 Mos.

$100 - Yrs 1-5$5 Bumps per

Yr

520 Madison Avenue

3Q06

Carlyle Group

45,742 13 Yrs

$35 PSF /6 Mos.

$96 - Yrs 1-5$101 - Yrs 6-10

$106 - Yrs 11-13

399 Park Avenue

2Q06

Cyrus Capital Partners

23,467 11Yrs

$15 PSF /3 Mos

$106 - Yrs 1-3$109 - Yrs 4-6$112 - Yrs 7-9

$115 - Yrs 10-11

10 East 50th Street

1Q06

Merrill Lynch & Co.

36,000 10Yrs

As Is /None

$100 - Yrs 1-10

375 Park Avenue

1Q06

Vega Asset Management

22,945 11Yrs

As Is /8.5 Mos.

$116 - Yrs 1-3$120 - Yrs 4-6

$123 - Yrs 7-11

767 Fifth Avenue

1Q06

Baron Capital

15,645 18Yrs

$25 PSF /None

$130 - Yrs 1-4$135 - Yrs 5-7

$140 - Yrs 8-11$145 - Yrs 12-14$150 - Yrs 15-18

712 Fifth Avenue

1Q06

Freescale Semi-conductor

9,124 10 Yrs

$40 PSF /5 Mos.

$120 - Yrs 1-5$125 - Yrs 6-10

26

METHOD OF ANALYSIS The pro forma cash flow for 666 Fifth Avenue is based upon

existing contractual lease terms and projected performance,

current and historic operating expenses and future market

variables and operating assumptions for the Property.

PRO FORMA ASSUMPTIONS ANALYSIS START DATE

January 1, 2007

VACANCY AND CREDIT LOSS

1% of Potential Gross Income (excludes credit-worthy tenants)

2007 OFFICE MARKET RENTS

Floors 2-7 $ 69.00 PSF

Floors 8-9 $ 76.00 PSF

Floors 10-14 $ 78.00 PSF

Floors 15-23 $ 87.00 PSF

Floors 24-33 $ 96.00 PSF

Floors 34-38 $115.00 PSF

Floor 39 $125.00 PSF

2007 RETAIL MARKET RENTSFifth Avenue $1,200.00 PSF

52nd and 53rd Streets $ 185.00 PSF

Arcade/Showcase $ 90.00 PSF

2nd Level $ 85.00 PSF

Fifth Avenue Lower Level Retail $ 90.00 PSF

Basement Retail $ 50.00 PSF

2007 OTHER MARKET RENTS

Storage $35.00 PSF

RENT GROWTH RATES2008 12.00%

2009 10.00%

2010 7.00%

2011 5.00%

Thereafter 4.00%

RENT STEPS

Office $6.00 PSF in year 6

Retail 10.00% every 3 years

LEASE TERMS

Office 10 Years

Retail – Fifth Avenue 10 Years

Retail – Side Street and Others 10 Years

Storage 5 years

RENEWAL PROBABILITY

Office 70%

Retail 75%

RENEWAL OPTIONS

We have not exercised any future renewal options in the Argus model.

However, option details can be found in the Argus Tenant Notes.

TENANT IMPROVEMENTS

Office

New $45.00 PSF

Renewal $15.00 PSF

Reta i l New $10.00 PSF

Renewal None

DOWNTIME

Office (Floors 2-7) 6 Months

Office (Floors 8-39) 4 Months

Retail 5 Months

Storage 6 Months

FREE RENTOffice

New 5 months

Renewal 2 months

Reta i l New 5 months

Renewal None

LEASING COMMISSION RATES

Standard full commission, plus a 50% override.

OPERATING EXPENSE GROWTH 3.0% per annum

FIna

ncIa

L InFo

rm

atIo

n

TENANT REIMBURSEMENTS

All new office and retail tenant leases are assumed to include

payment of pro rata share of all reimbursable operating expenses

and real estate taxes. All new retail and office tenants are assumed

to be submetered.

REAL ESTATE TAXES

Calendar year 2007 estimated tax obligation total is $21,682,004.

666 Fifth Avenue benefits from a 12-year Industrial and

Commercial Incentive Program (ICIP) real estate tax exemption

which commenced in 1999/2000. The current ICIP tax assessment

exemption base amount is $9,171,000. We have applied a 3.0%

underlying inflationary rate to the real estate assessment for fiscal

year 2010/11 and beyond.

OPERATING EXPENSES

Calendar year 2007 operating expense projection represents Seller’s

2007 operating expense budget.

CAPITAL RESERVES

$0.15 per square foot per annum in Year 2007.

ARGUS QUALIFICATIONS

Space Absorption

Speculative vacancy leasing costs are assumed to be the new

ownership’s responsibility.

Grand Havana Renewal

Grand Havana’s current lease expires on September 30, 2011. Grand

Havana will restructure their lease in an amendment presently out

for signature and renew 16,472 rentable square feet on the 39th floor

starting January 1, 2007 for 15 years at $125 per square foot, with

$10 rental bumps every five years, $0 TI and free rent. Base years

will reset to 2007 for OPEX and the average of 06/07 and 07/08 for

Real Estate Taxes.

Citibank 3rd floor and Victoria’s Secret 4th floor

Both spaces expire as of August 31, 2007. It is assumed that upon expiration,

the two spaces will be released together as a two-level 133,561 square foot

space. This large block of space is assumed to be released in January 2008

for a ten-year term at $80.00 per square foot. Standard new office lease,

tenant improvements, leasing commission and rent abatement apply.

Vacant Space 14th floor

The 14th floor presently has a 13,262 square feet of vacant space that is

assumed to be divided into two 6,262 and 7,000 square foot pre-built suites

at a cost of $85.00 per square foot to fit out. The suites are assumed to be

leased as of March 2007 for five-year terms with three months of free rent.

Storage Space

Speculative vacancy storage space of 10,035 square feet is assumed to

be leased up as follows: half of storage space leased in January 2009

and half in July 2009.

Capital Expenditures and Non-Recurring Recoverable Repairs and Maintenance

Tishman Speyer is responsible for all outstanding 2006 capital

expenditures. Please refer to the on-line due diligence library for

the Seller’s Capital and Non-recurring Recoverable Repairs and

Maintenance Plan for Years 2007 through 2011. Please note that these

future expenses are included in the Argus model.

DISCLAIMER

It should be noted that all financial projections are provided for

general reference purposes only in that they are based on assumptions

relating to the general economy, competition and other factors

beyond the control of Owner and, therefore, are subject to material

variation. Neither Owner nor Cushman & Wakefield, Inc. shall have

any liability with respect to same and any prospective purchaser should

perform such independent market analysis and due diligence as it

deems appropriate.

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30

INTRODUCTIONTishman Speyer (“Tishman Speyer”) is one of the world’s leading owners,

developers and operators of first class real estate. In large measure, the

firm has achieved this position by recognizing opportunities where

others see only difficulties. The firm’s ability to do so is engendered by

a corporate philosophy of approaching each building as a stand-alone

business. By doing so, Tishman Speyer has been successful in creating

considerable value for its investors.

Since its founding in 1978, Tishman Speyer has developed or acquired

a portfolio of over 111.2 million square feet that is valued at more than

$39.5 billion. Some of their better-known properties include New

York’s Chrysler Center and Rockefeller Center, Frankfurt’s MesseTurm,

Berlin’s Sony Center and Sao Paulo’s Torre Norte. Of greater importance

however, is the Who’s Who of global business who have elected to house

their corporate headquarters and offices in Tishman Speyer buildings.

For more than twenty-five years, Tishman Speyer has achieved

consistently high returns on its investments. Tishman Speyer believes

that a ground-up approach designed to attract and retain top tenants

in top markets has contributed greatly to achieving successful results.

While past performance is no guarantee of future results, the firm has

no intention of altering the philosophy that has afforded its investors

significant gains and achieved a position at the forefront of the real

estate industry for the firm.

CREATING VALUE AT EVERY LEVELIn today’s investment environment, it is clear that investors need a real

estate manager skilled at every level of real estate investment, ownership

and management in order to identify the potential value in a property

and quickly capitalize on it. Tishman Speyer possesses these skills. The

company is a vertically integrated real estate operating and investment

management company with in-house services and multi-disciplinary

teams that allow it to treat every property like a business and encompass

the full range of capabilities necessary to maximize value at every level

in each real estate investment. This vertical platform, combined with

experience in managing properties in all stages of the real estate cycle,

allows Tishman Spyer to optimize investment value in strong market

conditions and also when conditions erode.

PROPERTY MANAGEMENTTishman Speyer views property management as an opportunity to create

value in its global portfolio of Class A office properties through a rigorous

approach to reducing expenses and maximizing revenues. Tishman Speyer’s

in-house team manages 73.6 million square feet of space worldwide.

Unlike many real estate operators, the firm’s professionals oversee all

aspects of building operations, including engineering, security, fire safety

and cleaning. The “Tishman Speyer” name, as property manager, has built

a tremendous amount of “brand-equity” amongst tenants, investors and

operators in the marketplace thus, creating long-term relationships that

lead to the creation and retention of value in its portfolio.

Real Estate Investment Managers

OfferInvestment Funds

to InvestorsManageFunds

SourceInvestments &Build Portfolio

Real EstateOperating Companies

Real EstateService Firms

ManageProperty

FinancialInvestments

Source Third-PartyCo-Investment

Partners

OverseeDesign &

Construction

LeaseProperty

A FULL RANGE OF CAPABILITIES

FIna

ncIa

L InFo

rm

atIo

n

MARKETING AND LEASINGTishman Speyer also maintains an in-house group of highly successful

leasing professionals. In order to align the team’s focus on value-

creation, professionals are compensated on the basis of the performance

of an individual investment, rather than on the basis of size or volume

of signed leases. The firm’s on-the-ground leasing staff provides the

ability to better understand local tenants and market requirements and

to gain market knowledge in a way that organizations that outsource

this function cannot. This real-time market information creates value

not only in properties under management but also in the underwriting

of potential new investments.

DESIGN AND CONSTRUCTIONTishman Speyer’s 81 professionals, though trained primarily as

engineers and architects, are real estate experts first and foremost.

The Tishman team takes each project from design concept through

final construction. Because the team is immersed in the real estate

market on a daily basis and interacts with tenants and our leasing

teams during the design phase, Tishman Speyer design and

construction professionals know how to maximize the efficiencies

in a building while satisfying the needs of the ultimate user.

Creating value through the design of a project’s structure, systems,

space configuration, central core and outer envelope can produce a

property that successfully maximizes rental prices and, ultimately,

selling price. The organization’s objective when developing buildings

Acquisition &

Development

Leasing &

Marketing

Asset

Management

DispositionDesign &

Construction

Property

Management

Tishman Speyer - Local Expertise Tishman Speyer - Global

Investment

• Investment Approval

• Debt & Equity Capital Markets

• Local Government Relationships

• Global Leasing Relationships

• Departmental Support

Identify Direct

SupportManage

is to provide state-of-the-art telecommunications, HVAC, elevator and

security systems and a capacity to satisfy extraordinary tenant

requirements for technology and other services. All of Tishman

Speyer’s regions around the world share ideas on new design trends

and evolving construction methodology. We also use these lessons

learned to create opportunities to improve our existing buildings.

GLOBAL CORPORATE OUTREACH: BUILDING RELATIONSHIPS WITH SPACE USERSTishman Speyer runs its business with the understanding that it has

two principal customers – investors and space users. The firm strives

to build excellent relationships with tenants not only through superior

property management, but also through a global corporate outreach

program, which seeks to create strong ties to its largest tenants on a

global scale. Through this program, Tishman Speyer looks to gain

better access to both leasing and capital transactions.

FINANCE AND ACCOUNTINGTishman Speyer’s in-house team of finance and accounting

professionals is charged with increasing profitability on projects

in order to maximize risk-adjusted returns. Each project has a

dedicated team of professionals that monitor each and every

aspect of the deal. Staff includes experts in various aspects of the

structuring and reporting process from finance, accounting, tax,

legal and risk management.

SEAMLESS INTEGRATION MAXIMIZES PERFORMANCE

32

CONFIDENTIAL ITY AND CONDIT IONS

This is a confidential brochure intended solely for your limited use and benefit in determining whether you desire to express any further

interest in the purchase of 666 Fifth Avenue, New York, New York (the “Property”).

This brochure was prepared by Cushman & Wakefield, Inc. and has been reviewed by representatives of TST/TMW 666 FIFTH, L.P. (“Owner”).

It contains selected information pertaining to 666 Fifth Avenue and does not purport to be all-inclusive or to contain all of the information that

prospective purchasers may desire. It should be noted that all financial projections are provided for general reference purposes only in that

they are based on assumptions relating to the general economy, competition and other factors beyond the control of Owner and, therefore,

are subject to material variation. Additional information and an opportunity to inspect the Property and plans will be made available to

interested and qualified investors. Neither Owner, Cushman & Wakefield, Inc., nor any of their respective officers nor employees have made

any representation or warranty, expressed or implied, as to the accuracy or completeness of this brochure or any of its contents and no legal

commitments or obligations shall arise by reason of this brochure or any of its contents.

Owner expressly reserves the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or

to terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity

reviewing this brochure or making an offer to purchase the Property unless and until a written agreement satisfactory to Owner has been fully

executed, delivered and approved by Owner and any conditions to Owner obligations thereunder have been satisfied or waived.

By receipt of this brochure, you agree that this brochure and its contents are of a confidential nature, that you hold and treat it in the strictest

confidence and that you will not disclose this brochure or any of its contents to any other entity without the prior written authorization of

Owner, nor will you use this brochure or any of its contents in any fashion or manner detrimental to the interest of Owner or Cushman &

Wakefield, Inc.

It is essential that all parties to real estate transactions be aware of the health, liability and economic impact of environmental factors on real

estate. Cushman & Wakefield does not conduct investigations or analyses of environmental matters and, accordingly, urges its clients to

retain qualified environmental professionals to determine whether hazardous or toxic wastes or substances (such as asbestos, PCBs and other

contaminants or petrochemical products stored in underground tanks) or other undesirable materials or conditions are present at the Property

and, if so, whether any health danger or other liability exists. Such substances may have been used in the construction or operation of buildings

or may be present as a result of previous activities at the Property.

Various laws and regulations have been enacted at the Federal, state and local levels dealing with the use, storage, handling, removal, transport

and disposal of toxic or hazardous wastes and substances. Depending upon past, current and proposed uses of the Property, it may be prudent

to retain an environmental expert to conduct a site investigation and/or building inspection. If such substances exist or are contemplated to be

used at the Property, special governmental approvals or permits may be required. In addition, the cost of removal and disposal of such materials

may be substantial. Consequently, legal counsel and technical experts should be consulted where these substances are or maybe present.

Any brokers must look to its client for any and all compensation which may become due to it for the proposed transaction.

CONTACT INFORMATION

51 West 52nd StreetNew York, NY 10019-6178

(212)841-7500 main(212) 713-6716 fax

HELEN HWANGDirector

(212) [email protected]

KAREN WIEDENMANNDirector(212) [email protected]

JONATHAN CAPLANExecutive Director


SCOTT LATHAMExecutive Director(212) [email protected]

RICHARD BAXTERExecutive Director


YORON COHENExecutive Director(212) [email protected]

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