From: Michael C To: A Barrett CC: "Jeffrey Epstein - J. Epstein & Company ([email protected])" <jeevacationggmail.com> Subject: RE: Re: Date: Tue, 29 Oct 2013 22:31:44 +0000 FYI—Just had a long conversation with the lead broker at Eastdil. Regarding debt financing, he surprised me - he said that he expects all the bids will be contingent on debt so he is ok if ours is as well but the contingency should be in the 30 day range. He pushed on price and said he thinks the final round bidders will come in around $85M. I told him that sounds like a stretch but I look forward to the tour on Thurs and better understanding the current and future cash flow and the development potential. He was surprisingly unable to articulate the status of the entitlements the current owner is supposedly pursuing for an additional 107,000 sf. He said he would have to get back to me on that. That's the quick update. From: Michael Gargano Sent: Tuesday, October 29, 2013 2:50 PM To: 'A Barrett' Cc: Jeffrey Epstein - J. Epstein & Company ([email protected]) Subject: RE: Re: Thanks, Anthony. I totally agree with Jeffrey. As we discussed yesterday, this is very much an intense hands-on operating business and has more risk than conventional leased real estate. Nevertheless, I think the risks here are manageable. But I will know a lot more after I tour the property on Thurs and will let you know if I change my view. In the meantime, here is the way I'm looking at it: 1. Current Low NO!. The NOI is already on the low end of the range and reflects inattentive management - Lehman. 2. Other Bidders. The other bidders are all traditional real estate players (Carlyle, Hudson Pacific, and CIM). 3. Potential Upside. The plan would be to gradually convert occupancy to long term arrangements with Fox or other entertainment/tech firms, which will mitigate the operational risks and also allow us to lock in long term debt at lower rates. If we can reach agreement with Lehman to