22 Drydock

• $280M loan secured as the development team prepares to break ground
• Pre-Leased to a Fortune 500 Pharmaceutical Company. Vertex Pharmaceuticals (VRTX)(U.S.: Nasdaq) has signed a 15-year lease for 100% of the life science space
• Tenant is equity investor.  Vertex Pharmaceuticals has invested in the equity required for the project, creating alignment with all investors
• Institutional Sponsor.  Related Beal is a best-in-class developer with an extensive track record of completing high quality and cutting-edge projects in the Greater Boston area. Related Beal’s affiliate, Related, has completed projects such as the development of Hudson Yards and the Deutsche Bank Center (previously Time Warner Center) in New York City
• Market. Boston remains a dominant center of the life sciences industry, fed by “built-in” centers of excellence including Harvard University and Massachusetts Institute of Technology (MIT)
• Landmark ESG. Slated to become Boston's first LEED Platinum and zero net carbon life science building
• 50% MWBE participation. Including ownership, construction, design and ongoing operations
• Workforce training. Through a partnership with Gloucester Marine Genomics Institute for vets and local high school students
• Economic development. Ground lease payments to the city + local non-profit contributions
• Wealth creation. An opportunity for women and people of color to invest

22 Drydock (the “Project”) is a $400M+ development of a 344,000 rentable square foot life science asset in Boston, MA. The Project lies at the heart of Boston’s Raymond L. Flynn Marine Park and the Seaport District and will be the third installment of a successful innovation campus developed by Related Beal that has been leased and already includes Vertex as a tenant. 

The 7-story building will consist of 344,000 rentable s.f. of life science on floors 1-7, and a 2-story, 138- space below-grade garage. In addition to Vertex space, there will be a small restaurant / café on the ground floor as well as a dedicated lab space for the Gloucester Marine Genomics Institute, which is a non-profit continuing education program for careers as entry-level lab technicians.

The building will be situated on a 1.8-acre parcel leased from the Economic Development and Industrial Corporation of Boston for a term of 99 years.

The Sponsor has committed to raising ~10% of equity from Minority and Women Business Enterprises (“MWBE”) and accredited minority and women investors to passively co-invest in the development of the Project. Per the Base Case, BREIF (Boston Real Estate Inclusion Fund) will invest its portion of the required equity alongside a fund managed by an affiliate of Basis Investment Group (“BIG”).

• Invest $10.1M of base equity from BIG / BREIF ($9.45M of project equity plus $625k of tax and administration costs to be carried solely by the BIG / BREIF entities). Of the $10.1M total commitment, BIG will syndicate approximately $3.75M to accredited minority and women investors post close through a joint venture with BREIF.
• BIG may invest additional base equity should the final debt proceeds fall short of the 75% loan-to-cost construction financing assumed in the Base Case
• BIG may also fund additional capital and overrun obligations up to 10% of BIG-EI / BREIF's final base equity amount. Unlike other LPs, BIG-EI has successfully negotiated a cap on its contingent liabilities at 10%.

The Base Case projects that BREIF investors will achieve a net 17.88% IRR and a 1.61 multiple over a 66-month hold period assuming permanent financing at a fixed rate of 5.25%.

The table below illustrates our estimate of how much an Investor would receive for a $50,000 investment over the life of the Investment, assuming the Project is refinanced at a 5.25% interest rate following the completion of construction of the Project (estimated to occur in 2026) and sold at a 4.75% market cap rate two (2) years after Vertex taking occupancy (estimated to occur in Q4 2028).

Example of estimated investor return:

The Company is offering limited liability company interests as “Class A Shares.” We are trying to raise a maximum of $3,750,000 in the Offering. However, we will not close on the Offering, nor invest money into the Project, unless we raise at least $1,500,000.

If we have not raised at least $1,500,000 by November 15, 2024 we will terminate the Offering and return the money to Investors. We also have the right to terminate the Offering at any time.  

The minimum you can invest is $50,000, or 50,000 Class A Shares, unless the Manager agrees to a lower amount.

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, Investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

There are numerous risks to consider when making an investment such as this one and financial projections are just that - projections. Returns are not guaranteed. Conditions that may affect your investment include unforeseen construction costs, changes in market conditions, and potential disasters that are not covered by insurance. Please review Risks of Investing for a more expansive list of potential risks associated with an investment in this Company.