DEVCO

An ultimate retail opportunity in a thriving city.

TABLE OF CONTENTS

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . 2

Opportunity Highlights . . . . . . . . . . . . . . . . . . . . . 4 Renderings & Specifications . . . . . . . . . . . . . 7 Conceptual Retail Plan . . . . . . . . . . . . . . . . . . 8 Convenient Access, Highly Visible . . . . . . . . 11 Location Overview . . . . . . . . . . . . . . . . . . . . . 12 Arts, Culture, Nightlife and Dining . . . . . . . . 14 Demographics . . . . . . . . . . . . . . . . . . . . . . . . . 16 Prime Destination . . . . . . . . . . . . . . . . . . . . . . 18 Employers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Retail Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Supply and Demand . . . . . . . . . . . . . . . . . . . . 22

Development Team . . . . . . . . . . . . . . . . . . . . . . . . 24

Disclaimer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Executive SummaryNew Brunswick Development Corporation (Devco) is seeking a preeminent retail developer

to partner in the development and operation of 90,000 square feet of prime retail located

in one of the most innovative and thriving locations in New Jersey .

The Hub @ New Brunswick Station, a 1 .7 million square foot vibrant mixed-use destination,

will be located in the heart of downtown New Brunswick and adjacent to one of the

Northeast’s major commuter rail stations, Rutgers University, Robert Wood Johnson

University Hospital, and the world headquarters of Johnson & Johnson . Devco is seeking

a partner to share its vision in providing exceptional retail experiences for the tens of

thousands of employees, students, residents, and commuters in downtown New Brunswick .

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A HIGHLY COLLABORATIVE DEVELOPMENT PROCESS The selected retail developer for The

Hub will have the opportunity to be

intimately involved with Devco in the

ground-up development of this iconic

mixed-use project by participating in

design, programming, development

and operation of the 90,000 square

feet of retail space .

A PUBLIC/PRIVATE PARTNERSHIP WITH A SHARED VISION The Hub is located directly across

the street from the New Brunswick

Train Station and benefits from

being situated in the heart of New

Brunswick’s Transit Village . An

aggressive commitment by the

public sector in partnership with

private stakeholders is the formula

for a sustainable and thriving retail

destination .

With significant residential and commercial development, infrastructure and award-winning revitalization having already occurred and boasting a burgeoning 24/7 population with tremendous buying power, New Brunswick is embracing new retail.

OPPORTUNITY HIGHLIGHTS

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A PEDESTRIAN-ORIENTED RETAIL EXPERIENCE WITH PUBLIC GATHERING SPACES The sophisticated retail plan calls for

an open plaza concept, incorporating

elements for public gathering and

outdoor dining . The pedestrian-

oriented retail plaza will be a vibrant

gathering place, luring local residents,

college students, business people,

medical professionals, and community

members . The retail strategy will

be crafted to reflect the personality

of the community, its people, their

lifestyle, and the aspirations of the

surrounding neighborhood .

A VIBRANT DESTINATION WITH A SELECTIVE TENANT MIX The retail mix will meet the demands

of a diverse customer base with

strong purchasing power . The

project will offer a mix of national

and regional tenants appealing to a

diverse, educated, and professional

consumer base, with shops,

restaurants, and entertainment venues

to provide a unique local experience .

SMART GROWTH POLICIES AND ENVIRONMENTALLY CONSCIOUS The Hub will incorporate green

building standards with LEED Silver

Level certification . The retail facades

will be constructed with floor to

ceiling windows, unique architectural

elements, and well-lit and wide

walkways to accommodate outdoor

dining and unimpeded pedestrian

flow . The high-rise features a sleek,

modern aesthetic that promises to

become a hallmark of New Jersey

upon completion .

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Hub (huhb)“noun” a center around which other things revolve or from which they radiate; a focus of activity, authority, commerce, transportation, etc.

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With its impressive architectural

design, The Hub @ New Brunswick

Station promises to become an instant

beacon in New Brunswick .

Master planned by Kohn Pedersen Fox

Associates (KPF), one of the world’s

leading architecture firms, The Hub

will embrace the modern workplace

culture with breathtaking design,

innovative office layouts, state-of-

the-art research applications, ideal

living spaces, trendy restaurants

and retail, entertainment options,

spectacular open-air public spaces,

and state-of-the-art transportation

connections . In generating the

design, KPF drew inspiration from its

extensive international experience

planning similar highly connected,

transit-oriented, mixed-use complexes

from around the world, including the

expansive Hudson Yards project in

Manhattan .

RENDERINGS & SPECIFICATIONS

OPPORTUNITY HIGHLIGHTS

RETAIL FIRST LEVEL

72,000 sf

CONCEPTUAL RETAIL PLAN

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RETAIL SECOND LEVEL

18,000 sf 9

New Brunswick is easily accessed by car, bus, train or plane.

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CONVENIENT ACCESS, HIGHLY VISIBLENew Brunswick is centrally located within New Jersey and has become a go-to entertainment and dining

destination . The Hub is located in the heart of downtown New Brunswick, which is well-served by major

highways and mass transportation .

Major arteries in and around New Brunswick include the NJ Turnpike, I-287, Garden State Parkway, U .S .

Routes 1, 18, and 27 . Route 18 is a primary thoroughfare in the region from the Jersey Shore and provides

direct access to downtown New Brunswick while serving the regional and local transportation needs of

more than 85,000 vehicles per day .

The Hub sits adjacent to New Jersey Transit’s Northeast Corridor Line, servicing NJ Transit and Amtrak .

With over 114 trains stopping daily, it supports over 6,000 riders each day . The station will soon be

connected via pedestrian bridge to The Hub .

Visitors have access to 13 public parking garages within the downtown core, supporting more than

8,500 spaces, and including approximately 2,000 parking spaces directly adjacent to the New Brunswick

Train Station .

OPPORTUNITY HIGHLIGHTS

New Brunswick possesses every characteristic retailers look for.

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OPPORTUNITY HIGHLIGHTS

Large Area Employers1 Johnson & Johnson World Headquarters2 Robert Wood Johnson University Hospital3 Rutgers University – New Brunswick Campus

Arts & Culture4 George Street Playhouse5 Mason Gross School of The Arts6 The State Theatre7 Zimmerli Art Museum8 Crossroads Theatre

Food & Drink9 Catherine Lombardi10 Due Mari11 The Frog and The Peach12 Chipotle13 Old Man Rafferty’s14 Stage Left15 Starbucks16 Steakhouse 8517 Stress Factory Comedy Club18 World of Beer

Retail Trade19 Barnes and Noble20 Key Food Marketplace21 RWJ Fitness & Wellness Center Hotel & Meeting Facility22 Heldrich Hotel & Conference Center23 Hyatt Regency

Transit24 Train Station

Municipal25 Middlesex County Court House26 Middlesex Family Court House

Residential 27 The Aspire28 The George29 New Street Apartments (Future) 30 One Spring Street31 Plaza Square Apartments32 Riverwatch Commons33 Skyline Tower34 The Vue35 University Center at Easton Ave36 Rockoff Hall

New Brunswick

IN THE CENTER OF IT ALL

New Brunswick is a vibrant city with

all of the necessities for a quality

urban lifestyle . New Brunswick enjoys

a bustling downtown, an innovative

and popular cultural arts center, and

richly diverse neighborhoods .

The Hub is located in an ideal location

with convenient access to mass transit .

It is home to major international

corporations, governmental offices,

world renowned healthcare centers,

academic institutions, theater venues,

and Rutgers, the State University of

New Jersey .

There is no shortage of amenities

for the thousands of individuals who

commute to New Brunswick each day,

including a wide range of services,

retail options, restaurant selections,

entertainment, and educational

opportunities . In recent years, New

Brunswick has seen nearly $3 billion

in public and private investment, with

another $1 billion in the pipeline .

ARTS, CULTURE, NIGHTLIFE, AND DININGNew Brunswick boasts three major cultural venues: The State

Theatre, George Street Playhouse, and Crossroads Theatre

attracting more than 400,000 annual visitors .

OPPORTUNITY HIGHLIGHTS

New Brunswick’s rich cultural and performing arts

attractions have made it a true destination . American

Repertory Ballet, State Theatre Regional Arts Center,

George Street Playhouse, Crossroads Theatre

Company, Mason Gross School of the Arts, and the

Zimmerli Art Museum, along with unique art galleries,

are located in New Brunswick .

The city is well known for its tremendous dining

selections . There are more than 250 restaurants

throughout the downtown ranging from simple

fast casual restaurants and delis to award-winning

casual and four-star fine dining establishments . The

culinary and ethnic variety is extraordinary, including

American, Steakhouse, Asian, Indian, Italian, South

American, Vietnamese, Mexican, and Middle Eastern,

and includes several of New Jersey’s most recognized

restaurants . New Jersey Monthly Magazine’s July 2013

issue featured the state’s 25 best restaurants . One of

the top winners, The Frog and The Peach, is located in

downtown New Brunswick .

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2015 Summary 1-mile 3-mile 5-mile———————————————————————————————————————————————————Population 45,422 150,531 271,906———————————————————————————————————————————————————Households 12,228 44,992 89,726———————————————————————————————————————————————————Families 6,188 29,330 61,510———————————————————————————————————————————————————Average Household Size 3 .31 3 .01 2 .85———————————————————————————————————————————————————Median Age 24 .6 29 .4 33 .7———————————————————————————————————————————————————Median Household Income $45,372 $62,551 $75,198———————————————————————————————————————————————————Average Household Income $64, 481 $82,547 $93,708

Source: 2015 ESRI Demographic and Income Comparison Report . ESRI forecasts for 2015 using the 2010 Census of Population and Housing, U .S . Bureau of the Census .

DEMOGRAPHICS AND RESIDENTIAL GROWTH New residential development continues to fuel population growth . New

Brunswick has seen tremendous growth in the residential market and an

influx of high quality residents .

272,000 people living within a 5-mile radius of downtown New Brunswick

$94,000 average household income within a 5-mile radius of downtown New Brunswick

895,000 people, 10% of New Jersey’s population, are living within 10-miles of downtown New Brunswick

33% of New Jersey’s population of 8 million reside in a 20-mile radius of downtown New Brunswick

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Annual rate of growth for New Brunswick’s population, number of

households, number of families, and owner occupied housing units, is

expected to exceed the state and national averages .

USA

State

New Brunswick

Population Households Families Owner HHs MedianHH Income

1-mileTrends 2015-2020

Annual Rate (in percent)

2.5

2

1.5

1

.5

0

Source: 2015 ESRI Demographic and Income Comparison Report . ESRI forecasts for 2015 and 2020 using the 2010 Census of Population and Housing, U .S . Bureau of the Census . 17

Prime Destination

Rutgers University receives over 1 .7 million visitors annually .

Robert Wood Johnson University Hospital and St . Peter’s University Hospital receive over

1 million combined visitors annually .

The State Theatre, George Street Playhouse, and the Crossroads Theatre receive

over 400,000 visitors annually .

More than 6,000 people board 114 trains per day from New Brunswick Train Station .

Rutgers University is one of the largest, most diverse universities in the country, and more

than 40,000 students from all 50 states and more than 115 countries attend the New

Brunswick Campus . There are close to 16,000 resident students in 58 residence halls .

More than 90,000 passengers per day ride the Rutgers University bus system .

OPPORTUNITY HIGHLIGHTS

TOP EMPLOYERSNew Brunswick is home to Rutgers University, one of the nation’s leading

comprehensive public research universities and the state’s preeminent,

public institution of higher education . With more than 47,000 students,

faculty, and staff in New Brunswick, its main campus is located in the heart

of New Brunswick .

Due to the concentration of teaching hospitals in the area, including Robert

Wood Johnson University Hospital and Saint Peter’s University Hospital,

as well as Rutgers University’s Robert Wood Johnson Medical School, New

Brunswick is known as “The Healthcare City .” New Brunswick is also home

to the world headquarters of Johnson & Johnson, the world’s largest health

care products manufacturer, and Bristol-Myers Squibb .

Rutgers University Faculty and Staff 7,000———————————————————————————————————————Rutgers University Students 40,700———————————————————————————————————————Rutgers Biomedical and Health Sciences 7,700———————————————————————————————————————Robert Wood Johnson University Hospital 5,500———————————————————————————————————————St . Peter’s University Hospital 3,100———————————————————————————————————————Johnson & Johnson 3,100———————————————————————————————————————Bristol Myers Squibb 2,200———————————————————————————————————————County of Middlesex 1,785 OPPORTUNITY HIGHLIGHTS 19

RETAIL MARKET The Central New Jersey retail market, which includes Middlesex, Mercer, Monmouth, and

Somerset Counties, is strong with vacancy rates trending downward and rents trending upward .

REIS predicts the vacancy rate will end 2015 at 9 .5%, the lowest level since 2010, and then

decrease to 7 .9% in 2017 on stronger net absorption .

The average asking rent is expected to end 2015 at $23 .55 and then increase to $25 .41 in 2017 .

For 2014, the market absorption totaled 174,000 square feet, nearly triple the average absorption

rate of 59,100 square feet since the beginning of Q2 2005 .1

1 REIS Retail - Metro: Central New Jersey Submarket Report Q1 2015 .

New Brunswick

4.5% Expected New Brunswick retail market vacancy rate at end of 2015 .

$35 Expected average asking rent per square foot in New Brunswick at end of 2015 .

3.7% Expected New Brunswick retail market vacancy rate for 2017 .

Central New Jersey

9.5% REIS predicted Central New Jersey retail market vacancy rate at end of 2015 .

$23.55 REIS predicted average asking rent per square foot in Central New Jersey at end of 2015 .

7.9% REIS predicted Central New Jersey retail market vacancy rate for 2017 .

RETAIL MARKET20

INCENTIVES• The Hub will benefit from a long-term property tax abatement .

• New Brunswick is a designated Urban Enterprise Zone . In

addition to other benefits to encourage employment within the

zone, consumers can take advantage of a reduced 3 .5% sales tax

rate versus the 7% rate charged statewide .

• Businesses will be eligible for the State of New Jersey’s Economic

Redevelopment and Growth (ERG) Program .

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SUPPLY AND DEMANDIn 2014, retail sales within a 1-mile radius of The Hub

were estimated at approximately $158 million, while the

demand is estimated at just under $297 million . The retail

gap of $139 million represents the fact that A GREATER RETAIL PRESENCE IS NEEDED TO MEET THE GROWING DEMANDS OF ITS RESIDENTS AND ITS NEIGHBORING COMMUNITIES.

Restaurant sales within a 1-mile radius of The Hub are

estimated at approximately $50 million, while the demand

is estimated at only $35 million . The retail gap of negative

$15 million highlights the fact that NEW BRUNSWICK IS A DINING DESTINATION, ATTRACTING OUTSIDE VISITORS TO ITS RESTAURANTS.

22 RETAIL MARKET

-40-50 -20 0 20 40 60 80 90 100

Surplus

Leakage

10 30 50 70-10-30

LEAKAGESURPLUS

General Merchandise Stores

Motor Vehicle & Parts Dealers

Nonstore Retailers

Bldg Materials, Garden Equip. & Supply Stores

Clothing and Clothing Accessories Stores

Miscellaneous Store Retailers

Electronics & Appliance Stores

Furniture & Home Furnishings Stores

Gasoline Stations

Health & Personal Care Stores

Food & Beverage Stores

Food Services & Drinking Places

Sporting Goods, Hobby, Book, and Music Stores

Surplus/Leakage Factor by Industry Subsector

Sales (millions)

Source: 2015 ESRI Retail Market Place Profile Report, Page 2 . Supply (retail sales) estimates the sales to consumers by retail establishments . Demand (retail potential) estimates the expected amount spent by consumers at retail establishments .

The Retail Gap (the difference between Retail Demand and Retail Sales) represents a snapshot of retail opportunity . A positive value represents ‘leakage’ of retail opportunity outside the trade area . A negative value represents a surplus of retail

sales, a market where customers are drawn in from outside the trade area .

Source: 2015 ESRI Retail Market Place Profile Report, Page 1 .

DEMAND

$332,092,085DEMAND

$296,888,885Supply

$50,283,325

RETAIL GAP$123,690,316 RETAIL GAP

$138,770,441

RETAIL GAP-$123,690,316

SUPPLY

$208,401,769 SUPPLY

$158,118,444

Demand

$35,203,200

Total Retail Trade andFood & Drink

Total Retail Trade Total Food & Drink

2-mile Radius

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DEVCONew Brunswick Development Corporation

(Devco) is a private, nonprofit urban real estate

development organization founded in the

mid-1970’s to initiate redevelopment projects and

serve as a vehicle for public and private economic

development . Recognized by the New York Times

as a “powerful engine for economic growth,”

Devco has helped the city of New Brunswick

and other urban areas throughout New Jersey

to achieve a remarkable renaissance with a track

record of developing numerous successfully

completed commercial, residential, and

mixed-use projects .

Their expertise in creating strategic alliances,

strong public-private partnerships, and innovative

project financing structures has resulted in a

diverse inventory of award-winning mixed-use

projects .

Devco’s success is attributed to its ability to

foster public-private partnerships by uniting the

city of New Brunswick, the state of New Jersey,

corporations, and institutions . Leveraging private,

public, state, federal, and local resources allows

Devco to create high-impact redevelopment

projects . Devco has achieved extraordinary

success in reclaiming a quality urban lifestyle

in New Brunswick, and setting a tempo that is

characteristic of many great American cities .

Since its inception, Devco has overseen more

than $2 billion of investment in New Brunswick .

Today, even in some of the most challenging times

in the country’s history, redevelopment in the

city remains robust because of Devco’s unique

approach to redevelopment .

Jones Lang LaSalleJLL is the exclusive marketing agent for the

commercial office component of The Hub @

New Brunswick Station . They are a leader in the

northern/central New Jersey commercial real

estate market, with more than 500 professionals

and support staff providing agency leasing,

tenant representation, industrial services, strategic

consulting, project and development services,

property management and investment sales/

capital markets services to New Jersey’s leading

corporate tenants, investors and landlords . The

firm, which assists clients from three full-service

offices in Parsippany, Iselin (Metropark) and East

Rutherford, also acts as local service provider for

JLL global and national corporate clients in need

of real estate assistance in New Jersey .

JLL (NYSE: JLL) is a professional services and

investment management firm offering specialized

real estate services to clients seeking increased

value by owning, occupying and investing in real

estate . With annual fee revenue of $4 .0 billion and

gross revenue of $4 .5 billion, JLL has more than

200 corporate offices, operates in 75 countries

and has a global workforce of approximately

53,000 . On behalf of its clients, the firm provides

management and real estate outsourcing services

for a property portfolio of 3 .0 billion square feet,

or 280 .0 million square meters, and completed

$99 .0 billion in sales, acquisitions and finance

transactions in 2013 . Its investment management

business, LaSalle Investment Management,

has $53 .0 billion of real estate assets under

management . JLL is the brand name, and a

registered trademark, of Jones Lang LaSalle

Incorporated . For further information, visit

www .jll .com .

DEVELOPMENT TEAM

Devco has prepared this memorandum for the sole purpose of selecting a retail development partner for the proposed mixed-use project in New Brunswick, The Hub @ New Brunswick Station (the “Project”) and is not to be used for any other purpose . By accepting delivery of this memorandum or any other materials in connection therewith, the recipient agrees to (i) keep the contents of this memorandum and such other material confidential, (ii) not to disclose such contents to any third party or otherwise use the contents for any other purpose other than its evaluation of a potential investment in the property described herein, and (iii) not to copy this memorandum or any such other material . This memorandum is personal to the recipient and its contents may not be distributed or disclosed to any person other than those persons that the recipient has retained as advisors with respect to the information provided herein . No representations or warranties whatsoever are made with respect to any projections or other information provided herein . Recipients of this memorandum are advised to review all of this information with their respective legal, financial and other advisors This memorandum includes forward-looking information that is based on assumptions about future events that are inherently uncertain and subjective . Devco makes no representations or warranties about whether any such assumptions will prove true . The recipient should conduct its own investigation of the Project and its prospects before making any decision to proceed further .

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For more information about The Hub @ New Brunswick Station visit:

TheHubNewBrunswick.com

or contact Christopher J . Paladino at

(732) 249-2220