EFTA01374658.pdf

RXR REALIZED iNVES RXR Real Estate Opportunity Fund Realized Investments Aso June 30. 2018 loud tc.dri. ,..‘i hullo . 4, %%Out!: oil fin eximcnt Emu rgunt Sub-Market Strnieo investments I Park Avenue' New Yak, NY 52,059 518,136 8,296.4% 8.8x 6,730.2% 7.9x 540 Atlantic Avant.: Brooklyn. NY 4.780 5.080 16.1 1.1x 13.4 1.1x Starrett Lehigh' New Yak. NY 35,941 101,807 28.5 2.8x 24.0 2.5x 620 Avant° of the Americas' New York. NY 21.044 34,784 15.4 1.7x 11.7 I.5x Emerging b\rb-Slarket Slratea Investments Combined 563.824 $159,808 38.2% 2.5x 302% 2.2x Other I alit( AddedStrategy Investments 1166 Member Loan New York, NY 52.71I 53.292 13.3% I.2x 11.1% 1.2x Landmark Square Stamfoni, CT 23.081 24358 39.9 1.1x 33.8 1.Ix Nassau County Ground Leases' Long Island, NY 13.197 30.540 44.4 2.3x 39.6 2.Ix 1166 Avenue of the Amareas4 Now York, NY 23,239 58.381 21.2 2.5x 16.9 2.2x Woodbury Portfolio (49°. sold) Long Island, NY 12,846 28.892 153 2.2x 12.0 2.0x 340 Madison Menne' New York. NY 41.731 67.807 14.4 I.6x 9.9 I Ax Other Value Added Strategy Investments Combined $116,805 5213,471 19.8% 1.88 15.4% 1.6.1 All Realized Investments Combined S180,629 S373,279 25.5% 2.1x 20.3% 1.9x Note that none of the above investments are considered to be within a Qualified Opportunity Zone. I. Gross IRR and equity multiple refers to the internal rate of return to the fund on its investments calculated based on when such fund made the investment and received the distributions, before taking into consideration any carried interest. management fees, investment or fund-level expenses or taxes (which amounts may be significant and may materially impact returns). 2. Not representative of the Fund's fees. Net IRR and equity multiple are calculated based on timing of the fund's investment of capital and receipt of distributions, less allocated fund level carried interest, management fees and other costs. but do not take into consideration any taxes borne by individual investors. which may vary by investor. Fund level costs were allocated to individual investments as follows: (i) anticipated fund level costs, except carried interest were weighted by equity invested (or anticipated to be invested) and anticipated investment hold period, with an additional allocation to common equity interests in real estate properties/projects and reduced allocation to structured finance investments, and (ii) anticipated fund level canal interest was allocated based on anticipated profit from each investment. In some instances, funds borrowed amounts under a subscription facility in advance of or in lieu of calling capital. resulting in fund investors making correspondingly later and/or smaller capital contributions to such fund. Accordingly, the use of a subscription facility by a fund resulted in higher investor-level returns than if capital had been called, even after taking into account the associated interest expense of the borrowing. 3. Represents the acquisition of a participating interest in a non-performing senior Mi221111ilIC loan at a 92% discount to par. RXR believed this loan \MS in a - fulcrum- debt position, potentially providing for the opportunity to participate in the recapitalization of the property. However, as the market heated up, the valuation of the property increased allowing the equity holder to raise sufficient capital to negotiate a buyout of RXR Real Estate Opportunity Fund's position for over $18.0 million, after only six months, resulting in the returns noted above. 4. Comprised of investments realized as part of a portfolio transaction with affiliates of Blackstone Group LP which closed June 2015. Returns above do not include additional potential future proceeds from three of the investments where the RXR Real Estate Opportunity Fund retained a carried interest and/or minority ownership interest 5. Investment comprised of the acquisition of (and later sale ot) an assignment of rents from 18 separate ground leases. encumbering approximately 200 acres of commercial property located in NtuNitt Counts NY. Past A r °mance is not indicant. o adore results. RXR 61 of 75 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0069460 CONFIDENTIAL SDNY_GM_00215644 EFTA01374658